Aarti Pharmalabs announced robust financial results for the second quarter and half-year ended September 30, 2026. The company reported a 47% year-on-year increase in standalone revenue to INR613 crore, with EBITDA growing by 84% to INR136 crore. Profit after tax saw a significant jump to INR66 crore. Management highlighted strong performance across business segments and provided insights into expansion plans for CDMO, API, and xanthine derivative businesses.
Aarti Pharmalabs Reports Strong Q2 FY27 Financials
Aarti Pharmalabs Limited has announced impressive financial results for the second quarter (Q2) and the first half (H1) of the financial year 2027 (FY27). The company posted a significant year-on-year (Y-o-Y) increase in revenue and profitability, underscoring its growth trajectory.
Standalone Financial Highlights (Q2 FY27)
For the second quarter of FY27, Aarti Pharmalabs achieved its highest ever quarterly revenue, amounting to INR613 crore. This represents a substantial 47% increase compared to the INR417 crore recorded in the corresponding period of the previous year.
The company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also witnessed strong growth, rising by 84% Y-o-Y to INR136 crore, up from INR74 crore in the prior year’s period. Consequently, the profit after tax for Q2 FY27 stood at INR66 crore, a more than 2.75 times increase compared to INR24 crore in the previous year.
EBITDA margins remained healthy at 22.2%, an improvement from 17.7% in the same quarter last year. The company’s strategic focus on near-term opportunities aims to further solidify its position as a preferred partner in the global pharmaceutical supply chain.
Business Segment Performance
The xanthine derivatives and allied product segment contributed 50% to the turnover. Within this, the volume split between beverages and other products was 62% and 38%, respectively. Geographical sales distribution showed exports accounting for 59% and domestic sales for 41%.
The API and intermediate business segment clocked 30% of the turnover. The sub-segment wise breakup for API sales stood at 57% for regulated markets, 33% for ROW (Rest of World) markets, and 10% for non-regulated markets. The company noted healthy sales in the steroidal API segment following recent capacity expansions.
The CDMO/CMO segment contributed 13% of the revenue, with the company currently serving 23 customers. Aarti Pharmalabs is on track to achieve its target of 40% to 50% revenue growth in this segment compared to the previous year.
Growth Drivers and Strategic Outlook
Key projects include the ground breaking of the Atali dedicated block (block number two), which is targeted for commercialization in H2 FY28. The ramp-up of xanthine expanded capacity is progressing, with full capacity expected by the end of FY27.
The company emphasized its strategic outlook, building on 25 years of technical expertise and significant investments. Aarti Pharmalabs aims to transition into a robust multipillar global pharmaceutical partner, leveraging its dominant market position in xanthine derivatives as a cash cow and accelerating growth through its high-growth CDMO/CMO pillar and the API and intermediate segment.
Outlook for FY28 and Beyond
Management expressed confidence in reaching INR1,000 crore in CDMO revenue within 2-3 years, driven by a strong pipeline of approximately 59 projects. The company is also investing in R&D for peptides and oligonucleotides, with dedicated labs expected to be operational by the end of FY27, contributing to revenue from FY28 onwards.
A capex of around INR350 crore to INR400 crore is targeted for the current fiscal year, with further investments planned for dedicated blocks and capacity expansions.
Source: BSE
