Aarti Pharmalabs (AARTIPHARM) Q3 25/26 earnings summary

Executive summary

• Record Q3 profit on standalone and consolidated bases; consolidated revenue rose 19.9% YoY and EBITDA grew 34.4%.

• Management expects FY25 EBITDA growth to exceed prior guidance of 10%–12%; priorities include capacity expansion, cost optimization and CDMO/CMO scale-up.

Financial highlights

• Q3 FY25 consolidated revenue was ₹53,777.82 lakh, up YoY from ₹45,802.58 lakh; EBITDA was ₹1,286 Mn, up 34.4% YoY.

• Q3 consolidated profit was ₹7,398.79 lakh, up YoY from ₹5,276.33 lakh; PAT margin was 13.76%, up 199 bps.

• 9M FY25 consolidated revenue was ₹155,129.75 lakh and profit was ₹18,406.39 lakh; EBITDA grew 18.8% to ₹3,188 Mn.

• Q3 standalone revenue was ₹47,094.72 lakh and profit was ₹7,352.35 lakh; standalone EBITDA margin was cited at 24%.

Outlook and guidance

• FY25 EBITDA growth is expected to exceed prior 10%–12% guidance; Q4 outlook was optimistic, with updated guidance planned for the next call.

• CDMO/CMO FY25 sales are expected to exceed FY24’s ₹170 crore; ₹10 crore–₹12 crore of orders may shift into FY26, while FY26 growth prospects remain significant.

• API and intermediates operated at ~75% utilization; current capacity may support ₹800 crore–₹1,000 crore revenue, depending on product mix.

• Xanthine capacity expansion to 9,000 MT is planned in phases across the first and second halves of the next financial year; 90% utilization is targeted by FY27.

• Atali Phase 1 is expected to commission in Q1 FY26, with ramp-up toward FY26-end; Phase 1 adds 400+ KL of reactor volume.