Aarti Drugs (524348) Q4 25/26 earnings summary

Executive summary

• FY26 marked a transition year with major investments, commissioning of new facilities, and challenging industry conditions, including pricing pressure and raw material volatility.

• Q4 FY26 saw a strong sequential recovery, driven by operational scale-up at the Sayakha facility, improved export traction, and a better product mix.

• Regulated market and export contributions increased, supporting margin quality and earnings stability.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, were approved by the Board on May 15, 2026.

• Diversification into Formulations and Specialty Chemicals segments showed robust growth.

Financial highlights

• Q4 FY26 total revenue was ₹721.1 crore, up 6% YoY and 20% sequentially; EBITDA was ₹96.6 crore, flat YoY but up 72% sequentially.

• FY26 total revenue grew 7% YoY to ₹2,567.7 crore; EBITDA rose 3% YoY to ₹311.6 crore; PAT increased 16% YoY to ₹194.9 crore.

• Gross margin improved to 37.0% in FY26 from 36.1% in FY25; PAT margin rose to 7.6% from 7.0%.

• Basic and diluted EPS (consolidated) for FY26 was ₹21.36, up from ₹18.35 in FY25.

• Consolidated revenue from operations for Q4 FY26 was ₹72,030 lakhs, up from ₹67,676 lakhs in Q4 FY25; full-year consolidated revenue was ₹2,56,531 lakhs, up from ₹2,38,703 lakhs year-over-year.

Outlook and guidance

• Sayakha facility expected to enhance margin resilience and backward integration benefits.

• Regulated and export market focus to continue supporting margin and earnings stability.

• Board confirmed ongoing focus on pharmaceuticals as the sole business segment.

• Foundations in backward integration, regulatory approvals, and specialty product development position the company for improved profitability and return ratios in FY27 and beyond.