Pharmaceuticals company Aarti Drugs announced Q1FY26 results Q1FY26 Consolidated Financial Highlights: Revenue stood at Rs 590.8 crore as against Rs 556.5 crore, a growth of 6% YoY. EBITDA stood at Rs 74.4 crore as against Rs 66.1 crore, a growth of 12% YoY. EBITDA Margin stood at 12.6%, an increase of 70 basis points. PAT stood at Rs 54.0 crore as against Rs 33.3 crore, an increase of 62% YoY. PAT Margin is at 9.1%, an increase of 310 basis points. Q1FY26 Standalone Financial Highlights: Revenue stood at Rs 521.3 crore vs Rs 493.1 crore in Q1FY25, growth by 6% YoY. Standalone business contributed 86% to the consolidated revenue. 65% of the revenues came from the domestic market and 35% from the exports market. Domestic revenue remained flat YoY and exports increased by 18% YoY. Within the API business, the anti-biotic therapeutic category contributed ~41%, anti-diabetic ~15%, anti-protozoal ~19%, anti-inflammatory ~12%, antifungal ~10% and the rest contributed ~4% to total API sales. Adhish Patil, CFO & COO, Aarti Drugs, said: "In Q1 FY26, Revenues grew by 6% YoY to Rs 591 crore with Gross Profit Margins improving by 130 basis points YoY to 36.8%. EBITDA has increased by 12% YoY to Rs 74 crore and EBITDA Margins improving to 12.6%. The quarter witnessed improved demand for active pharmaceutical ingredients (APIs), leading to a recovery and growth in volumes as compared to Q1FY25. During Q1FY26 the Company incurred Capex of ~Rs 48.5 crore mainly towards capacity expansion, backward integration and finished formulation R&D.; For FY26, we expect Capex at ~Rs 150-200 crore. The Company has started trial productions at its new greenfield manufacturing facility in Sayakha, Gujarat. This plant has been set up mainly for backward integration into anti-diabetic products and their intermediates, and is expected to largely serve internal requirements. This backward integration is a key strategic step that should help improve profit margins over time and reduce the risk of input costs volatility. This project will support internal requirements for our anti-diabetic product and choline chloride, contributing to backward integration, margin improvement, and supply chain de-risking. The new greenfield Salicylic Acid plant at Tarapur is progressing well and is expected to begin contributing to the Company’s financials from the third quarter onwards. While the plant faced some initial start-up issues— typical during the early stages of new projects for inhouse developed technology—these have been effectively addressed and are being implemented at the plant scale. The Company is now focused on a calibrated ramp-up of operations, with a clear roadmap to scale production to over 800 tonnes per month and further expand the installed capacity to approximately 1,600 tonnes per month by the end of FY26. A lot of new regulated customer audits have been triggered at the Tarapur facility. We also plan to expand this facility by putting more production blocks in future. Recently, the USA government has announced high tariffs on pharmaceutical products and APIs imported from countries like China. This move is aimed at reducing their dependence on Chinese suppliers. This has the potential to reshape global supply chains. While this may disrupt sourcing patterns for several players, it also opens up new opportunities for Indian API manufacturers. Aarti Drugs, with a recently USFDA approved API facility and established manufacturing capabilities, is strategically positioned to meet this demand shift. The commissioning of new capacity at Sayakha and Tarapur supports this readiness and enhances the Company's ability to serve regulated export markets. Our formulation subsidiary has also got USFDA approval for its Oncology facility & UKMHRA approval for our OSD facility; alongside we are on a path to develop and register new oncology dossiers across the globe which will drive the regulated market growth from FY27 onwards. The Company remains focused on execution, cost optimization, and product mix enhancement to drive sustainable growth and margin improvement in the coming quarters.” Result PDF