Aarti Drugs Limited reported a strong finish to FY26, marked by a sharp sequential recovery in Q4 FY26. Consolidated revenue reached INR721.1 crores, a 6% year-on-year and 20% quarter-on-quarter growth. Despite geopolitical challenges impacting raw material costs, the company successfully transitioned into an operational scale-up phase, bolstered by new manufacturing facilities, including its methylamine plant at Sayakha, and a focus on expanding its presence in regulated export markets.
Strong Financial Performance
For the quarter ended March 31, 2026, Aarti Drugs Limited demonstrated resilience with EBITDA of INR96.6 crores, reflecting a 72% quarter-on-quarter increase. The Profit After Tax (PAT) stood at INR55.3 crores, representing a 36% rise compared to the previous quarter. The company maintained a PAT margin of 7.7% for Q4 FY26, reflecting a stabilization of business operations.
Strategic Growth and Operational Highlights
The company’s focus on high-value products and regulated markets yielded positive results, with export contributions increasing from 35% in FY25 to 38% in FY26. A significant milestone was the ramp-up of the methylamine backward integration plant at Sayakha, which reached a production rate of nearly 1,000 tonnes per month by March 2026. This facility is expected to improve self-sufficiency and margins for the metformin portfolio significantly.
Future Outlook and Expansion
Aarti Drugs plans to continue its momentum with a capital expenditure strategy focused on quasi-greenfield projects. The company has earmarked INR300 crores to INR400 crores for the next three to four years, aimed at increasing existing capabilities rather than entering entirely new product lines. Key growth drivers include the upcoming oncology formulation business and continued expansion in non-antibiotic export products. Management remains optimistic about achieving 10% to 15% growth internally, despite potential macroeconomic headwinds from geopolitical tensions and crude price volatility.
Source: BSE
