India · Delayed Price · Currency is INR Aarti Drugs Earnings Call Transcripts
Fiscal Year 2026
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Q4 FY 2026 saw strong sequential recovery with revenue up 20% QoQ and EBITDA margin at 13.4%. Backward integration and new facility ramp-ups are expected to drive margin improvement, while export and regulated market contributions continue to rise.
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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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Q2 FY 2026 saw 9% revenue growth and 23% EBITDA growth year-over-year, driven by strong export demand and margin expansion from backward integration. New facilities are ramping up, with further margin and revenue gains expected as capacity utilization improves and new products launch in regulated markets.
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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 efficiency. The company targets double-digit revenue growth and 14-15% EBITDA margin for FY26, with new capacity and product launches 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.