Aarti Pharmalabs Q2 FY27 Earnings Call Transcript Released
Aarti Pharmalabs reported Q2 FY27 standalone revenue of INR 613 crore, up 47% YoY. EBITDA increased 84% to INR 136 crore, with margins at 22.2%. The company is progressing on capacity expansions for xanthine and Atali Phase 1, targeting commercialization in H2 FY28. CDMO business is on track for 40-50% growth.
The announcement provides detailed financial results for the quarter, highlights significant growth drivers, and discusses future expansion plans, which are material information for investors.
The company reported strong year-on-year growth in revenue and profits, with improved EBITDA margins. Positive commentary on business segments and progress on expansion projects indicate a favorable outlook.
Aarti Pharmalabs Limited has released the transcript of its Q2 FY27 Earnings Conference Call, which was held on October 29, 2026. The call discussed the company's Unaudited Financial Results for the second quarter and half year ended September 30, 2026.
During the call, the Managing Director, Mr. Rashesh Gogri, highlighted strong momentum across business segments. Standalone revenue for Q2 FY27 reached INR 613 crore, a 47% year-on-year increase from INR 417 crore. EBITDA grew by 84% year-on-year to INR 136 crore, and profit after tax was INR 66 crore, a significant increase from INR 24 crore in the prior year. EBITDA margins improved to 22.2% from 17.7% year-on-year.
The xanthine derivatives and allied products segment contributed 50% of the turnover, with export sales accounting for 59%. The API and intermediate business clocked 30% of the turnover, with recent capacity expansion in steroidal API contributing to healthy sales. The CDMO/CMO segment contributed 13% of revenue, with 23 customers and 59 active projects, of which 39 are in commercial stages. The company is on track to achieve its target of 40%-50% revenue growth in this segment.
Key ongoing projects include the Atali dedicated block (block number two), targeted for commercialization in H2 FY28, and the ramp-up of xanthine expanded capacity, planned for full capacity by the end of FY27.
Discussions also covered the capitalization of projects like Xanthine and Atali Phase 1, with full capitalization of the Xanthine project expected by the end of the current year and Atali Phase 1 in Q3. The company anticipates increased depreciation and finance costs as these assets are capitalized. Management expressed confidence in meeting the CDMO revenue guidance and discussed strategies for API and intermediate business growth, focusing on regulated markets and R&D for new validations. The company also plans to set up peptide labs operational by the end of the financial year.
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