Aarti Pharmalabs (AARTIPHARM) Q2 26/27 earnings summary

Executive summary

• Standalone Q2 FY27 revenue from operations was ₹61,258.69 lakh and net profit ₹6,575.29 lakh; H1 revenue was ₹1,14,717.47 lakh and net profit ₹13,705.96 lakh.

• Consolidated Q2 revenue from operations was ₹61,045.30 lakh and net profit ₹7,147.23 lakh; H1 revenue was ₹1,14,624.79 lakh and net profit ₹14,761.49 lakh.

• Capacity expansion, xanthine ramp-up and CDMO/CMO growth support the outlook; H1 operating cash flow declined amid working-capital outflows.

• The Board approved Q2/H1 results and announced a CFO transition effective October 31, 2026.

Financial highlights

• Standalone Q2 FY27 operational revenue was ₹6,126 Mn, EBITDA ₹1,358 Mn and PAT ₹658 Mn; revenue and PAT rose 46.8% and 180.0% YoY.

• Consolidated Q2 FY27 operational revenue was ₹6,105 Mn, EBITDA ₹1,346 Mn and PAT ₹715 Mn; revenue and PAT rose 45.9% and 248.8% YoY.

• H1 standalone revenue rose 44.7% YoY to ₹11,472 Mn and EBITDA rose 58.7% to ₹2,685 Mn; consolidated revenue rose 42.5% to ₹11,462 Mn and EBITDA rose 57.1% to ₹2,673 Mn.

Outlook and guidance

• Targeting 15–18% revenue and EBITDA CAGR over the next 3–4 years; CDMO/CMO FY27 revenue growth target remains 40%–50% YoY, with higher sales expected in H2.

• Long-term CDMO/CMO aspiration is ₹1,000 crore or $100 million; timing depends on customer approvals and project progression, with 10–12 projects potentially contributing ₹700–800 crore.

• API and intermediate growth aspiration is 10%–15% annually; ₹180–200 crore per quarter was described as a reasonable H2 base.

• Xanthine annual volume is expected to rise 15% YoY; utilization is projected at 7,500–8,000 tons next year and ~90% over two years.

• FY27 CapEx is expected at levels similar to FY26, around ₹400 crore; Atali Block 2 is planned for commercialization in H2 FY28.