Pharmaceuticals company Aarti Drugs announced Q3FY25 results Revenue stood at Rs 568.5 crore as against Rs 607.6 crore, a decline of 6% YoY EBITDA stood at Rs 62.3 crore as against Rs 71.8 crore, and decline of 13%YoY. EBITDA Margin (%) stood at 11.2%, down by 60 basis points PAT stood at Rs 37.1 crore as against Rs 36.7 crore, and increase of 1% YoY. PAT Margin (%) stood at 6.5%. Adhish Patil, CFO & COO, of Aarti Drugs said, “This quarter has presented significant challenges for our API segment, with both revenue and profit declining on a year-on-year basis. This is mainly due to reduced market prices and weaker demand. Although prices remained stable during the December quarter, there was a negative price variance when compared to the same period last year. Formulation segment revenue stood at Rs 48.6 crore for the quarter, with an export contribution of 47.% whereas in 9MFY25 revenue stood at Rs 186.9 crore. The greenfield project at Sayakha, Gujarat for Speciality Chemicals will commence trial production in this quarter. With this, the operating leverage is expected to kick in from the subsequent quarter with improved capacity utilization. There had been certain teething issues in Tarapur greenfield project, which are sorted now and we expect to ramp up the production to 500+ tonnes per month by the end of March’25. In total we will have sequential ramp up of capacity to 1,600 tonnes per month by end of FY26. During 9MFY25, the Company has incurred Capex of ~Rs 136 crore mainly towards capacity expansion, backward integration and new product launches. We anticipate a total Capex of ~Rs 200 crore for the full year. This Capex would we mainly through internal accruals and partly through term loans. Despite facing these short-term challenges, we are staying focused on our long-term goals. We are confident about achieving double digit growth in revenues with EBITDA Margins of 13%-14% in FY26 which is a healthy indicator of our financial stability and operational efficiency. Despite API pricing pressures, driven by fluctuating raw material costs, heightened competition, and regulatory demands in global markets we remain committed to achieving growth and profitability by enhancing operational efficiencies and expanding our market presence. We are dedicated to tackling these challenges and emerging stronger in the future." Result PDF