Aarti Pharmalabs (AARTIPHARM) Q1 24/25 earnings summary

Executive summary

• Consolidated Q1 FY25 revenue from operations was ₹55,549.34 lakh, up 21.2% YoY; EBITDA rose 13.7% to ₹965 mn, while EBITDA margin contracted 115 bps to 17.37%.

• Consolidated PAT increased 17.8% YoY to ₹5,545.35 lakh; CDMO/CMO project traction strengthened, with FY25 revenue growth guidance of 25%-30% maintained.

Financial highlights

• Consolidated revenue rose 9.8% QoQ; EBITDA declined 17.9% and PAT declined 15.0% QoQ.

• Standalone revenue was ₹39,348.65 lakh, up 9.9% YoY; EBITDA rose 9.1% to ₹836 mn, while PAT eased 1.1% to ₹4,714.43 lakh.

• Consolidated PBT was ₹7,367.66 lakh versus ₹6,397.59 lakh in Q1 FY24; no exceptional items were recorded in Q1 FY25.

Outlook and guidance

• FY25 EBITDA growth guidance is 10%-12%; the longer-term goal is ~15% annual growth over the next three years.

• FY25 CDMO/CMO revenue growth is guided at 25%-30% over FY24 revenue of ~INR 170 crore; quarterly sales may vary with multi-stage product timing.

• Xanthine expansion is expected to complete in early FY26, taking capacity to 9,000 tonnes per annum; Atali Phase 1 commercialization is expected in Q4 FY25.

• Vapi’s semi-commercial intermediate block is expected to be fully operational in Q2 FY25; Akola solar plant commissioning is estimated in the current quarter.