Aarti Pharmalabs (AARTIPHARM) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 consolidated revenue was ₹41,833.48 lakh, EBITDA ₹747 Mn and net profit ₹2,792.31 lakh; EBITDA margin was 17.86%.

• Standalone Q2 revenue rose YoY to ₹41,728.78 lakh, while net profit declined to ₹3,092.91 lakh; consolidated profit comparisons are affected by Ganesh Polychem’s JV accounting change.

• Xanthine margins improved and CDMO/CMO dispatches were on schedule, offset by API margin pressure; Atali began operations in Q2.

Financial highlights

• Consolidated Q2 revenue was ₹41,833.48 lakh versus ₹45,802.58 lakh YoY; net profit was ₹2,792.31 lakh versus ₹5,462.25 lakh.

• Standalone Q2 revenue was ₹41,728.78 lakh versus ₹37,729.43 lakh YoY; net profit was ₹3,092.91 lakh versus ₹4,783.56 lakh.

• Standalone H1 revenue was ₹79,259.84 lakh versus ₹77,078.08 lakh; net profit was ₹8,214.98 lakh versus ₹9,498 lakh.

• Consolidated H1 revenue was ₹80,452.58 lakh versus ₹1,01,351.93 lakh; net profit was ₹7,745.09 lakh versus ₹11,007.61 lakh.

Outlook and guidance

• FY26 standalone EBITDA growth guidance is 8%-12% YoY, despite Atali operating costs expected from Q3.

• CDMO/CMO sales growth is expected to exceed the earlier 30%-40% YoY target, supported by orders in hand and substantial H2 sales.

• API performance is expected to improve in H2 versus H1, though full-year growth faces customer inventory correction and competition.

• Atali Phase 1 is expected to ramp up by Q4 FY26; meaningful revenue contribution is expected from FY27.