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
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
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
Pharmaceuticals company Aarti Drugs announced H1FY25 & Q2FY25 results Q2FY25 Standalone Financial Highlights: Revenue stood at Rs 543.1 crore as against Rs 577.5 crore, down by 6% YoY. Standalone business contributed ~89% to the consolidated revenue for the quarter. ~66% of the revenues came from the domestic market and ~34% from the exports market. Within the API business, the antibiotic therapeutic category contributed ~40%, anti-diabetic ~18%, antiprotozoal ~17%, anti-inflammatory ~10%, antifungal ~10% and the rest contributed ~4% to total API sales Q2FY25 Consolidated Financial Highlights: Revenue stood at Rs 599.8 crore as against Rs 642.2 crore, a decline of 7% YoY. This is on account of lower realizations stemming from negative rate variance and subdued market demand in the API business. EBITDA stood at Rs 68.5 crore as against Rs 77.1 crore, a decline of 11% YoY. EBITDA Margin (%) stood at 11.5%. PAT stood at Rs 35.0 crore as against Rs 39.6 crore, a decline of 12% YoY. PAT Margin (%) stood at 5.8% H1FY25 Consolidated Financial Highlights: Revenue stood at Rs 1,156.3 crore as against Rs 1,303.9 crore, a decline of 11% YoY. EBITDA stood at Rs 134.6 crore as against Rs 161.8 crore, a decline of 17% YoY. EBITDA Margin (%) stood at 11.7%. PAT stood at Rs 68.2 crore as against Rs 87.6 crore, a decline of 22% YoY. PAT Margin (%) stood at 5.9% Adhish Patil, CFO & COO, of Aarti Drugs said: “During Q2FY25, we have seen a drop in revenues and profitability on a year-on-year basis mainly due to lower realizations stemming from negative rate variance and subdued market demand in the API business. The volumes have remained flattish on a YoY basis whereas we have seen a growth of 10% from the last quarter. Since Q1, the prices have stabilized, and volumes have grown which has led to a growth of 8% in revenues on a QoQ basis. We expect pricing to improve going ahead. Formulation segment revenue stood at Rs 65.6 crore for the quarter, with exports contribution of ~53%. In H1FY25 revenue stood at Rs 136.6 crore. The greenfield project at Sayakha, Gujarat for Speciality Chemicals is expected to commence in this quarter. With this, the operating leverage is expected to kick in from the second half of the year with improved capacity utilization. The production of Salicylic Acid has commenced and currently we are producing 100 tonnes per month. There have been certain teething issues, and we expect to ramp up the production to 300+ tonnes by end of October’24. In total we will have sequential ramp up of capacity to 1,800 tonnesthroughout FY25 & FY26. During H1 FY25, the Company has incurred Capex of ~Rs 90 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. The Pharma API manufacturing industry is constantly evolving, and we are committed to staying ahead of the curve. We continue to expand our capabilities and enhance our offerings to meet the ever-changing needs of our customeRs We also plan to invest in new technologies and equipment that will help us streamline our processes and improve efficiency.” Result PDF