Pharmaceuticals company Aarti Drugs announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: Revenue stood at Rs 678.6 crore as against Rs 621.1 crore, a growth of 9% YoY. EBITDA stood at Rs 95.2 crore as against Rs 86.9 crore, a growth of 10% YoY. EBITDA Margin stood at 14%. PAT stood at Rs 62.8 crore as against Rs 47.3 crore, an increase of 33% YoY. PAT Margin is at 9.2%. FY25 Financial Highlights: Revenue stood at Rs 2,403.4 crore as against Rs 2,532.6 crore, a decline of 5% YoY. EBITDA stood at Rs 303.4 crore as against Rs 320.5 crore, a decline of 5% YoY. EBITDA Margin stood at 12.6%. PAT stood at Rs 168.1 crore as against Rs 171.6 crore, a decline of 2% YoY. PAT Margin is at 7.0%. Adhish Patil, CFO & COO, Aarti Drugs, said: "In Q4 FY25, Revenues grew by 9% to Rs 679 crore with EBITDA Margins improving to 14%. During the quarter, we witnessed strong global demand for APIs, driving a 15.5% growth in volumes, primarily led by exports. Benefiting from improved operating leverage and stable input costs, we achieved ~14.5% EBITDA Margins in the standalone business. FY25 was a challenging year, beginning with muted global demand and elevated raw material costs, which impacted overall performance. Greater than expected market volatility, particularly due to falling input prices, led to a 5% YoY revenue decline. Despite the challenges, the Company improved cost efficiency and operational discipline over the year, which helped maintain our EBITDA Margins at 12.6%. Margin performance improved significantly in H2FY25, driven by stabilization in input costs. During FY25, the Company incurred Capex of ~Rs 177 crore mainly towards capacity expansion, backward integration and new product launches. This has been mainly funded through internal accruals and partly through term loans. Additionally, the Company distributed ~Rs 69 crore to shareholders in FY25, while maintaining a healthy consolidated Debt to Equity ratio of 0.45. The greenfield project at Sayakha, Gujarat, dedicated to backward integration of our anti-diabetic product along with few more intermediates, has commenced trial production which is expected to stabilize soon within the current quarter. This is anticipated to contribute meaningfully to the Company’s profitability over a long period of time. The Tarapur greenfield project had certain initial operational challenges, which have now been largely resolved. The Company remains focused on a gradual production scale-up, targeting over 700 tonnes per month by June 2025 and aiming to reach a cumulative capacity of approximately 1,600 tonnes per month by the end of FY26. Amid API pricing pressures from raw material cost fluctuations, heightened competition, regulatory changes, and the ongoing pharmaceutical tariff war between China and the USA, the Company remains focused on driving sustainable growth and profitability. The US-China trade tensions have exacerbated volatility in raw material costs, disrupted global supply chains, and created uncertainty in pricing structures within the sector. These trade dynamics have also affected the cost structure and availability of critical APIs, challenging manufacturers globally. Despite these pressures, the Company is concentrating on operational efficiencies, strategic market expansion, and supply chain optimization. We remain committed to navigating these external challenges with resilience and continues to focus on initiatives aimed to strengthen our position in the global market.” Result PDF