Aarti Pharmalabs (AARTIPHARM) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue was ₹45,802.58 lakh and net profit ₹5,462.25 lakh; H1 revenue reached ₹101,351.93 lakh and net profit ₹11,007.60 lakh.

• FY25 EBITDA growth guidance remained 10%–12%; priorities included Xanthine capacity expansion, broader API/CDMO offerings and greater regulated-market penetration.

Financial highlights

• Q2 consolidated revenue rose 4.1% YoY; EBITDA was INR 937 Mn, up 6.5%, and PAT was INR 546.225 Mn, up 5.4%.

• H1 consolidated revenue rose 12.8% to ₹101,351.93 lakh and PAT rose 11.3% to ₹11,007.60 lakh.

• H1 consolidated EBITDA was INR 1,901 Mn, up 9.9%; EBITDA from operations was also reported at INR 197 crore versus INR 174 crore.

• H1 standalone revenue was ₹77,078.08 lakh, up 7.9%; EBITDA was INR 1,684 Mn, up 12.0%, with margin at 21.85%.

• Standalone Q2 revenue was ₹37,729.43 lakh and net profit ₹4,783.57 lakh; H1 net profit was ₹9,498 lakh.

Outlook and guidance

• FY25 EBITDA growth guidance was reaffirmed at 10%–12%; management said the business remained on track despite CDMO/CMO deliveries shifting into the next year.

• CDMO/CMO growth ambition of 25%+ remains a team target, though project timing could reduce current-year growth by 5%–7%; stronger growth is expected in the following year and beyond.

• Longer-term EBITDA growth objective was stated at ~16% annually over three years; the outlook was characterized as prudent and potentially beatable.

• FY26 growth drivers include product mix, API utilization and debottlenecking, initial Xanthine capacity and Atali intermediate operations; larger capacity contributions are expected in FY27.