AARTIDRUGS

Aarti Drugs share price & financials

Price
₹370.35
Market cap
₹3.8k Cr
Sector
Healthcare
Calls analysed
8
Latest concall · Q1 FY27 · call held 03 Aug 2026

Aarti Drugs Q1 FY27

Consolidated Revenue ₹703.6 cr +19%Consolidated EBITDA ₹96.9 cr +30%Consolidated EBITDA Margin 13.8% +1%Consolidated PAT ₹50.1 cr

What went well

  • Consolidated revenue grew 19% YoY to INR703.6 crores, driven by improved API realizations and volume growth.
  • EBITDA margin expanded 120 bps YoY to 13.8%, despite higher raw material prices and elevated freight costs.
  • PBT grew 35% YoY to INR69.2 crores, with PBT margin at 9.9%.

What to watch

  • Continued pressure from higher raw material prices and elevated freight costs impacted operating environment.
  • Anti-dumping duty for salicylic acid got delayed by approximately one year, impacting profitability of the main product.
Read the full call →

What Aarti Drugs does

Aarti Drugs is a manufacturer of Active Pharmaceutical Ingredients (APIs), finished-dose formulations, and specialty chemicals/intermediates, operating a flexible in-house plus outsourced production model backed by in-house R&D. It holds global or India leadership in several high-volume molecules (Nimesulide, Ketoconazole, Metronidazole Benzoate, Tinidazole, Fluoroquinolones, Metformin), and diversified into formulations in 2014 through its wholly owned subsidiary Pinnacle Life Science. The company sells APIs, formulations and specialty chemicals to customers in over 100 countries, with regulated markets and exports forming a growing share of its business mix.

Segments

  • Active Pharmaceutical Ingredients (API)
  • Formulations
  • Specialty Chemicals, Intermediates & Others
Manufacturing facilities
14
Finished products
80+
API molecules produced
50+
Employees
2,200+
Countries with market presence
100+
API manufacturing units
9
Founded 1984Employees 2,200 (FY26) Company website

Guidance record · Q1 FY27

what the last two calls moved 22 tracked 3 delivered 7 missed 12 open
  • Project Commissioning delivered, diluted said Q2 FY25 Promised: Commence operations in Q3 FY25 Q1 FY27: The plant is confirmed to be operating at nearly 65% utilization, confirming the promise remains fulfilled, albeit with the initial delay.
  • Long-term Revenue went quiet said Q2 FY25 Promised: INR 4,200 crores to INR 4,500 crores Q1 FY27: The long-term consolidated revenue target for FY27 was not mentioned for the fifth consecutive quarter.
  • Volume Growth revised up said Q2 FY26 Promised: 15% to 20% Q1 FY27: Management firmed up guidance, stating 'for next two years, we are very well poised for that 10% to 15% kind of a volume growth', revising guidance back up from the 'strive for 8-10%' comment.

All 22 tracked — every revision, and every one management stopped mentioning.

Open the guidance ledger

Quarterly results

Q1 FY27: revenue up 19.0%, net profit down 7.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue598 557 677 591 653 +9%602 +8%720 +6%703 +19%
EBITDA67 62 93 74 84 +25%55 −11%96 +3%98 +32%
Net profit35 37 63 54 45 +29%41 +11%55 −13%50 −7%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Performance −16.0% 1Y

₹350₹400₹450₹500Sept 25Oct 25Dec 25Jan 26Mar 26Apr 26Jun 26Jul 26Sept 26Q2 FY26 — 10 Nov 2025Q3 FY26 — 4 Feb 2026Q4 FY26 — 22 May 2026Q1 FY27 — 3 Aug 2026

1Y: ₹509.95 on 10 Sept 2025 → ₹428.5. High ₹525.35 (19 Sept 2025), low ₹319.75 (30 Mar 2026).

How the price took the results

close before → close after

Q1 FY27
−3.7%
3 Aug
Q4 FY26
+1.2%
23 May
Q3 FY26
−5.0%
4 Feb
Q2 FY26
+5.9%
10 Nov

The move from the last close before each results date to the first close after it — the market's first read on the quarter, not the quarter itself.

Financials, as filed

Revenue fell 1.9% a year over 3 years, FY23 to FY26. Operating margin widened to 12.0%.

Year endingFY23FY24FY25FY26
Revenue₹2.7k Cr₹2.5k Cr₹2.4k Cr₹2.6k Cr
Operating profit₹306 Cr₹316 Cr₹287 Cr₹309 Cr
Operating margin11.3%12.5%12.0%12.0%
Interest₹33 Cr₹34 Cr₹36 Cr₹34 Cr
Depreciation₹51 Cr₹53 Cr₹56 Cr₹67 Cr
Net profit₹167 Cr₹172 Cr₹168 Cr₹195 Cr
Net margin6.1%6.8%7.0%7.6%
Cash from operations₹133 Cr₹359 Cr₹245 Cr₹254 Cr
Free cash flow₹-31 Cr₹133 Cr₹67 Cr₹80 Cr
ROCE15.0%15.0%13.0%12.0%
How to read this

From the company's own filings. Margins are computed from the filed sums; a year with an incomplete quarter is left blank rather than estimated.

Balance sheet

Year endingFY21FY22FY23FY24FY25FY26
Equity capital₹93 Cr₹93 Cr₹93 Cr₹92 Cr₹91 Cr₹91 Cr
Reserves₹820 Cr₹944 Cr₹1.1k Cr₹1.2k Cr₹1.4k Cr₹1.5k Cr
Borrowings₹351 Cr₹543 Cr₹609 Cr₹564 Cr₹573 Cr₹577 Cr
Other liabilities₹502 Cr₹629 Cr₹620 Cr₹587 Cr₹570 Cr₹690 Cr
Total liabilities₹1.8k Cr₹2.2k Cr₹2.4k Cr₹2.4k Cr₹2.6k Cr₹2.8k Cr
Fixed assets₹665 Cr₹690 Cr₹676 Cr₹811 Cr₹1.1k Cr₹1.1k Cr
Capital work in progress₹19 Cr₹77 Cr₹210 Cr₹261 Cr₹179 Cr₹214 Cr
Investments₹17 Cr₹19 Cr₹19 Cr₹20 Cr₹23 Cr₹27 Cr
Other assets₹1.1k Cr₹1.4k Cr₹1.5k Cr₹1.3k Cr₹1.3k Cr₹1.5k Cr
Total assets₹1.8k Cr₹2.2k Cr₹2.4k Cr₹2.4k Cr₹2.6k Cr₹2.8k Cr
How to read this

As filed each year. A line the company does not report — deposits for a non-lender, for instance — is left out rather than shown as a row of dashes.

What the price assumes

Expensive

To justify its price of ₹428, this stock must grow earnings at 12% every year for 7 years. Our analysis caps realistic growth at ~6%. At that growth it is worth ₹303 — downside of 29%.

Growth the price implies
12.4% a year
for 7 years, fading to 4%
It has actually compounded at
5.3% a year
net profit, FY23–FY26 · EPS 5.9%
The gap
0.1 pp
-29% downside if it only repeats history
Price today ₹428.5 Value at the reference growth ₹302.56

Change the assumptions yourself →

All earnings calls (7)

Read the Q1 FY27 call →

Learn to analyse Aarti Drugs

Guides on how to read this kind of business and the numbers that matter.