Aarti Pharmalabs Limited announced its Q1 FY27 financial results, showcasing robust growth. Revenue increased by 42% year-on-year to ₹535 crore, driven by strong performance across its key segments. EBITDA grew by 40% to ₹133 crore, and profit after tax rose by 49% to ₹71 crore. The company also highlighted progress in capacity expansion and new projects.
Strong Financial Performance in Q1 FY27
Aarti Pharmalabs Limited has reported a significant increase in its financial performance for the first quarter of Fiscal Year 2027 (ended June 30, 2026). The company’s stand-alone revenue reached ₹535 crore, marking a substantial 42% year-on-year growth compared to ₹375 crore in the corresponding period of the previous year. This surge in top-line performance was complemented by a healthy rise in profitability.
EBITDA and Profitability Growth
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter stood at ₹133 crore, reflecting a 40% increase from ₹95 crore reported in Q1 FY26. Following suit, the profit after tax (PAT) saw a significant jump of 49% year-on-year, reaching ₹71 crore in Q1 FY27, up from ₹48 crore in the prior year’s first quarter. These figures underscore the company’s effective operational and cost management strategies.
Segmental Highlights and Capacity Expansion
Aarti Pharmalabs operates across three key verticals: Xanthine derivatives, API and Intermediates, and CDMO/CMO services. The Xanthine Derivatives segment was a primary contributor, accounting for 57% of the turnover and achieving its highest-ever quarterly sales. This segment saw 79% of sales from exports. The API and Intermediate business represented 30% of the turnover, with ongoing efforts focused on process intensification and cost reduction. The CDMO/CMO segment contributed 7% of the revenue, with plans for significant growth anticipated in the second half of the financial year.
In terms of capital expenditure, the company announced the completion of several expansion projects. This includes the debottlenecking of the steroid block at Unit 4, Tarapur, enhancing its capacity by 33%. Additional capacity for Xanthine derivatives has also been commercialized. Furthermore, both phases of the Atali Block 1 are set to become fully operational in Q2 FY27. A new capex of ₹149 crore has been announced for Block 2 at Atali, dedicated to specific CDMO projects, with groundbreaking expected in Q3 FY27.
The management expressed confidence in the promising outlook of the business, emphasizing a strategic focus on emerging opportunities within the pharmaceutical sector to drive sustained growth.
Source: BSE
