Aarti Pharmalabs Limited has officially released its financial results for the second quarter of FY27, along with a comprehensive presentation detailing operational highlights and strategic initiatives. The company reported standalone revenue of INR 6,126 million and PAT of INR 658 million for Q2 FY27. Key updates include capacity expansion in the Steroid Block and operationalization of the Atali Block 1. The presentation also covers the company’s future outlook, targeting 15-18% Revenue & EBITDA CAGR over the next 3-4 years.
Aarti Pharmalabs Reports Q2 FY27 Financial Performance
Aarti Pharmalabs Limited has announced its financial results for the quarter ended September 30, 2026 (Q2 FY27). The company reported a standalone revenue of INR 6,126 million, marking a significant 46.8% year-over-year increase from INR 4,173 million in Q2 FY26. EBITDA for the quarter stood at INR 1,358 million, up 83.3% YoY, with an EBITDA margin of 22.17%. Profit After Tax (PAT) was INR 658 million, a 180.0% YoY growth from INR 235 million in the same period last year, resulting in a PAT margin of 10.74%.
Key Operational Highlights and Strategic Updates
The company highlighted several operational achievements and strategic developments in its presentation. Capacity expansion was completed in the Steroid Block at the API Plant (Tarapur-4) during Q1 FY27, which is now contributing to both production and sales. Both phases of the Atali Block 1 have been operationalized. Furthermore, the company is expanding its Brownfield Capex with the Atali Block 2 project, a CDMO/CMO focused facility with an estimated investment of INR 149 crores and an estimated capacity of ~405 KL, slated for commercialization by H2FY28.
Future Outlook and Growth Targets
Aarti Pharmalabs is targeting a Revenue & EBITDA CAGR of 15-18% over the next 3-4 years. The company is initiating R&D investment in FY27 towards TIDES (Peptides & Oligonucleotides) to expand its portfolio capabilities. FY26 CAPEX reached approximately INR 400 crore, with FY27 outlook expected at similar levels. The Capex for Atali Block 2 is ongoing, with groundbreaking already completed.
Segmental Revenue Breakdown (Q2-FY27)
The revenue breakup for Q2-FY27 shows Xanthine Derivatives contributing 50%, API/Intermediates at 30%, CDMO/CMO at 13%, and Others at 7%.
Consolidated Financial Performance (Q2-FY27)
On a consolidated basis, Aarti Pharmalabs reported operational revenue of INR 6,105 million for Q2 FY27, a 45.9% YoY increase. EBITDA grew by 80.2% YoY to INR 1,346 million. PAT saw a substantial increase of 248.8% YoY to INR 715 million, with a consolidated PAT margin of 11.71%.
Source: BSE