Aarti Drugs Reports Strong Q1 FY27 Results; Revenue Rises 19% as API and Specialty Chemicals Drive Growth
Aarti Drugs Limited, a diversified and integrated pharmaceutical company specializing in Active Pharmaceutical Ingredients (APIs), Formulation, Specialty Chemicals, and Intermediates, announced its unaudited Financial Results for the Quarter ended June 30, 2026. The company reported robust performance driven by growth across its API and Specialty Chemicals portfolios.The consolidated financial highlights show a significant increase in revenue and margin expansion during Q1 FY27 compared to the previous year's first quarter (Q1 FY26).
Consolidated Financial Performance Highlights
| Particulars (Rs. Crs.) | Q1 FY27 | Q1 FY26 | YoY Change | Q4 FY26 | QoQ Change |
|---|---|---|---|---|---|
| Total Revenue | 703.6 | 590.8 | 19% | 721.1 | -2% |
| Gross Profit | 276.0 | 217.4 | 27% | 270.7 | 2% |
| EBITDA | 96.9 | 74.4 | 30% | 96.6 | 0% |
| EBITDA Margin % | 13.8% | 12.6% | 120 bps | 13.4% | 40 bps |
| Profit Before Tax (PBT) | 69.2 | 51.1 | 35% | 70.4 | -2% |
| PBT Margin % | 9.9% | 8.7% | 120 bps | 9.8% | 10 bps |
| Profit After Tax (PAT) | 50.1 | 54.0 | -7% | 55.3 | -9% |
| EPS (in Rs.) | 5.49 | 5.91 | 6.05 |
Segmental and Standalone Business Details
The segmental performance data for the quarter indicated steady growth across key divisions.| Particulars (Rs. Crs.) | Q1 FY27 | Q1 FY26 | %YoY Change | Q4 FY26 | %QoQ Change |
|---|---|---|---|---|---|
| API | 510.4 | 458.2 | 11% | 551.0 | -7% |
| Formulation | 86.2 | 80.3 | 7% | 92.0 | -6% |
| Specialty Chemicals | 82.6 | 33.1 | 150% | 56.8 | 45% |
| Intermediates & Others | 24.3 | 19.2 | 26% | 20.5 | 19% |
In terms of standalone performance, revenue stood at Rs. 627.6 crores, up 20% year-over-year (Q1 FY27 vs Q1 FY26). The company noted that 89% of its standalone business contributed to the consolidated revenue. Of this, 68% was from the domestic market and 32% from exports. Domestic revenue grew by 25% YoY, while export revenue saw a growth of 12% YoY.
The API business segment saw specific contributions across therapeutic categories: anti-biotic therapeutic accounted for 35.0%, anti-protozoal contributed 18.5%, and anti-inflammatory stood at 11.9%.
In the Formulation segment, revenue reached Rs. 81.60 crore, compared to Rs. 75.8 crore in Q1 FY26, marking an 8% YoY increase. Exports accounted for 74% of this formulation revenue.
Management Outlook and Operational Focus
Adhish Patil, CFO & COO of Aarti Drugs Limited, stated that the company started FY27 with a strong operational and financial performance, which was driven by volume growth and improved realizations across its API and Specialty Chemicals portfolio, supported by disciplined execution. He noted that the quarter reflected a recovery in the pricing environment relative to the previous year.CFO Patil highlighted that EBITDA increased by 30% YoY to ₹96.9 crore, with EBITDA margins expanding by 120 basis points to 13.8%, attributing this improvement to product mix optimization and operational efficiencies. He added that the demand outlook for the company’s entire product portfolio remains encouraging.
The company is progressing on capacity expansion. Sayakha continued its planned ramp-up during the quarter, operating at nearly 65% utilization. Furthermore, Aarti Drugs is expanding its oral solid dosage (OSD) capabilities through developments in Baddi, Himachal Pradesh, a move expected to double production capacity.
Looking ahead, management stated that global demand remains resilient. The company aims to continue capitalizing on opportunities by enhancing regulatory compliance and maintaining focus on investments in process optimization, backward integration, and overall operational efficiencies.
About Aarti Drugs Limited
Aarti Drugs Limited was established in 1984 and is part of the $6 Billion Aarti Group of Industries. Engaged in manufacturing Active Pharmaceutical Ingredients (APIs), Pharma Intermediates, Specialty Chemicals, and Formulations, the company operates through its wholly-owned subsidiary, Pinnacle Life Science Private Limited.The company maintains a total of 14 manufacturing facilities: 10 located in Maharashtra, 3 in Gujarat, and one facility managed by Pinnacle in Himachal Pradesh. Products under APIs include Ciprofloxacin Hydrochloride and Metformin HCL, while Specialty Chemicals include Benzene Sulphonyl Chloride.
AARTIDRUGS Stock Price Movement
On Friday, shares of Aarti Drugs Limited edged higher, concluding at ₹422.75 after gaining 2.47% in market action. The stock traded within an intraday range spanning from ₹412.00 to ₹427.20, with a volume of 187,361 shares recorded during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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