Aarti Drugs (524348) AGM 2025 presentation summary

Strategic milestones and business expansion

• Completed capex for greenfield projects at Sayakha, Gujarat, and Tarapur, enhancing manufacturing capacity and backward integration, especially in anti-diabetic and dermatology segments.

• Entered into a share subscription agreement with Prozeal Green Power for captive solar power plants in Gujarat and Maharashtra, supporting sustainability goals.

• Expanded into personal care with a new dermatology products facility and commenced trial production at Sayakha for anti-diabetic intermediates.

• Achieved global leadership in API manufacturing, being the largest producer of several key molecules and maintaining a diversified product portfolio across 50+ APIs.

• Presence in 100+ countries, with significant export revenue and risk diversification across regulated and semi-regulated markets.

Operational and financial performance

• FY25 total revenue was ₹2,403 crore, a 5% decrease from the previous year, with EBITDA margin at 12.6% and PAT margin at 7.0%.

• Q1 FY26 showed a revenue increase of 6% YoY to ₹591 crore, with EBITDA up 13% and PAT up 63%, indicating operational recovery.

• Segmental revenue in FY25 was led by APIs (81%), followed by formulations (11%), specialty chemicals (5%), and intermediates (3%).

• Historical ROCE and ROE have moderated to 12.5% and 12.7% respectively in FY25, reflecting recent investments and margin pressures.

• Distributed ₹278 crore to shareholders over the last 7 years through dividends and buybacks.

R&D and innovation

• Invested ₹46 crore in R&D in FY25, focusing on complex generics, new APIs, and formulation products for regulated and emerging markets.

• Developed 30+ APIs in the last 5 years, with plans to expand into complex semi-solids and oral liquids.

• R&D centers recognized by the Department of Science and Industrial Research, with strong academic collaborations.