Aarti Drugs Q1 FY27 Revenue Jumps 19% YoY to ₹703.6 Crore, PAT at ₹50.1 Crore
Aarti Drugs reported Q1 FY27 consolidated revenue of ₹703.6 crore, up 19% YoY. EBITDA grew 30% YoY to ₹96.9 crore, with margins expanding by 120 bps. PAT was ₹50.1 crore. Specialty Chemicals revenue surged 150% YoY. The company is expanding OSD capabilities and expects improved operating leverage.
The results show solid year-on-year growth in key financial metrics and positive outlook from management. The significant growth in Specialty Chemicals and expansion plans for OSD capabilities indicate potential for future value creation. However, the PAT decline and overall market conditions might temper the immediate impact.
The company reported strong year-on-year growth in revenue, EBITDA, and PBT, along with margin expansion. Positive commentary from the CFO highlights operational strengths and future growth drivers, despite a slight YoY dip in PAT which is explained by a one-time tax refund in the previous year.
Aarti Drugs Limited announced its unaudited financial results for the Quarter ended June 30, 2026. The company reported consolidated total revenue of ₹703.6 crore, a 19% year-on-year growth from ₹590.8 crore in Q1 FY26. Gross Profit increased by 27% YoY to ₹276.0 crore. EBITDA saw a significant jump of 30% YoY to ₹96.9 crore, with EBITDA margin expanding by 120 basis points to 13.8%. Profit Before Tax (PBT) grew 35% YoY to ₹69.2 crore, and PBT margin improved to 9.9%. Profit After Tax (PAT) stood at ₹50.1 crore, a decrease of 7% YoY from ₹54.0 crore in Q1 FY26. However, excluding a principal tax refund of approximately ₹15 crore in Q1 FY26, the PAT would have shown a growth of 29% YoY.
On a segmental basis, API revenue grew 11% YoY to ₹510.4 crore, Formulation revenue increased by 7% YoY to ₹86.2 crore, Specialty Chemicals revenue surged by 150% YoY to ₹82.6 crore, and Intermediates & Others revenue grew by 26% YoY to ₹24.3 crore.
Standalone revenue grew by 20% YoY to ₹627.6 crore. Domestic revenue increased by 25% YoY, while export revenue grew by 12% YoY. The API business was primarily driven by the anti-biotic therapeutic category (35.0%), anti-protozoal (18.5%), and anti-diabetic (18.2%). The formulation segment saw an 8% YoY growth in revenue to ₹81.6 crore, with exports contributing 74% of this revenue.
Mr. Adhish Patil, CFO & COO, commented that the company started FY27 with strong operational and financial performance, driven by volume growth and improved realizations in API & Specialty Chemicals. He highlighted the recovery in the pricing environment and disciplined execution. The company's USFDA and UK approvals are expected to be important growth drivers. The Sayakha facility is ramping up, operating at nearly 65% utilization, and the company is expanding its oral solid dosage (OSD) capabilities in Baddi, Himachal Pradesh, which is expected to double production capacity. The focus remains on improving capacity utilization, optimizing product mix, enhancing manufacturing efficiencies, and capitalizing on global demand opportunities.
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