Aarti Drugs reports revenue of ₹602.9 crore for Q3 FY26, an 8% year-over-year increase. EBITDA stood at ₹56.3 crore with a margin of 9.3%. The company’s export formulations segment performed well. A backward integration plant in Sayakha achieved 30% capacity utilization in its first quarter. Salicylic Acid plant in Tarapur scaled to approximately 300 tonnes per month, shifting from import dependence to domestic supply.
Financial Performance
Aarti Drugs reported a total revenue of ₹602.9 crore for Q3 FY26, reflecting an 8% increase compared to the previous year. The EBITDA for Q3 FY26 was ₹56.3 crore with a margin of 9.3%. Profit after tax (PAT) reached ₹40.5 crore, representing a margin of 6.7%. For the 9-month period, the company’s revenue was ₹1,846.6 crore, also up 8% year-over-year.
Segmental Revenue Breakup
In Q3 FY26, API contributed 75.5% to the total revenue, while Formulation accounted for 12.7%, Speciality Chemicals for 8.5%, and Intermediates & Others for 3.3%. For the 9-month period, API contributed 77.4%, Formulation 13.0%, Speciality Chemicals 6.6%, and Intermediates & Others 3.0%.
Key Business Highlights
The company’s backward integration plant in Sayakha, Gujarat, achieved 30% capacity utilization during its first quarter of operations. This facility is expected to fulfill 10-15% of the company’s captive Metformin requirements. Aarti Drugs anticipates being 100% self-reliant for this key intermediate within 6 to 8 months. The Salicylic Acid plant in Tarapur has reached a milestone of scaling to approximately 300 tonnes per month. The downstream Salicylates line is under implementation.
Strategic Initiatives
Aarti Drugs is focused on operational efficiency, margin improvement, and capacity ramp-up. Audit observations are under review, and inspections have been conducted at one of the facilities as part of ongoing regulatory initiatives for European approvals. The company is also focusing on innovation and R&D, with a strong pipeline of products under development.
Future Outlook
January sales showed encouraging momentum, indicating a positive trend for the coming quarters. The company is focused on maintaining compliance with regulatory standards and capital discipline.
Source: BSE
