Aarti Pharmalabs (AARTIPHARM) Q1 26/27 earnings summary

Executive summary

• Standalone Q1 FY27 revenue was ₹53,458.78 lakh, up 42.4% YoY; EBITDA rose 39.5% to ₹1,327 mn and PAT increased 49.2% to ₹713 mn.

• Xanthine delivered record quarterly sales; capacity expansion, CDMO investment and R&D in peptides and oligonucleotides underpin a 15%–18% revenue and EBITDA CAGR target over 3–4 years.

• Q1 FY27 unaudited results were reviewed and approved by the Board; limited-review conclusions for standalone and consolidated results were unmodified.

Financial highlights

• Standalone revenue was ₹53,458.78 lakh versus ₹37,531.06 lakh in Q1 FY26; net profit was ₹7,130.66 lakh versus ₹4,775.05 lakh.

• Standalone EBITDA margin was 24.82%, down 52 bps YoY; PAT margin was 13.34%, up 60 bps, and diluted EPS was ₹7.86, up 49.1%.

• Consolidated revenue was ₹53,579.69 lakh versus ₹38,619.09 lakh in Q1 FY26; net profit was ₹7,614.27 lakh versus ₹4,603.09 lakh.

• Consolidated EBITDA margin was 24.75%, up 10 bps YoY; PAT margin was 14.20%, up 229 bps, and diluted EPS was ₹8.39, up 65.2%.

• Consolidated profit before tax was ₹10,106.02 lakh, including ₹740.55 lakh share of joint-venture profit.

Outlook and guidance

• FY27 standalone EBITDA margin guidance is 22%–25%; CDMO/CMO revenue is guided to grow 40%–50% YoY, weighted to H2, with a ₹1,000 crore target framed for 2029 or 2030.

• Targeting 15%–18% revenue and EBITDA CAGR over the next 3–4 years; FY27 capex is expected at a level similar to FY26’s ~₹400 crore.

• FY27 xanthine revenue was indicated in a ₹900–1,000 crore range, subject to West Asia conditions and price normalization; global market share target is 20%–25%.

• API revenue is expected to approach, but not exceed, FY25’s ₹780 crore; quarterly revenue is expected at ₹170–190 crore.

• Atali Block 2 groundbreaking is planned for Q3 FY27, with commercialization targeted by H2 FY28; a new intermediate block is targeted within one year.