India · Delayed Price · Currency is INR Aarti Drugs Earnings Call Transcripts
Fiscal Year 2026
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Revenue and PAT grew strongly YoY, despite margin pressure from weak antibiotic demand and supply chain issues. New facilities and backward integration are ramping up, with significant CapEx planned for oncology and specialty chemicals. Gross margin and EBITDA are expected to improve as utilization increases.
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Revenue and profitability grew strongly year-over-year, driven by robust export demand and margin expansion from backward integration and new capacity ramp-up. Guidance targets high single-digit growth for H2 FY 2026 and margin improvement to 15% by end FY 2027, with continued CapEx and stable leverage.
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Revenue grew 6% year-on-year in Q1 FY 2026, with gross margin up 130 bps and EBITDA up 12%. Capacity expansions, backward integration, and new regulatory approvals are set to drive double-digit growth and margin improvement, with 15–16% EBITDA margin targeted by FY 2027.
Fiscal Year 2025
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Q4 FY25 saw 9% revenue growth and improved margins, driven by strong API export demand and operational efficiencies. FY26 guidance targets double-digit revenue growth and 14-15% EBITDA margin, with new capacity and backward integration supporting expansion.
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Q3 FY25 saw a 6% revenue decline but a 7% rise in gross profit, with strong export focus and new USFDA approval enabling high-margin growth. CapEx and green energy initiatives support future expansion, while margin improvement is expected as new facilities ramp up and pricing stabilizes.
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Q2 FY25 saw a 6% YoY revenue decline and margin pressure due to lower API prices, though volumes improved sequentially. CapEx projects and new product launches are expected to drive margin and revenue growth from FY26, with long-term revenue guidance revised to INR 3,500–4,000 crores by FY27.
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Q1 FY25 saw revenue decline to INR 557 crore due to lower API export demand and negative rate variance, but gross margins improved. Margins are expected to recover in H2, with specialty chemicals and formulation exports driving growth, and a long-term revenue target of INR 4,000 crore by FY27.