Aarti Pharmalabs (AARTIPHARM) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 standalone revenue was ₹42,525.28 lakh vs ₹47,094.72 lakh YoY; EBITDA was ₹1,030 Mn and net profit ₹4,384.46 lakh, both lower YoY.

• 9M FY26 standalone revenue declined 1.9% YoY to ₹12,178.51 lakh; EBITDA fell 4.0% to ₹2,720 Mn and net profit fell to ₹12,599.44 lakh.

• FY26 EBITDA is expected to show marginal growth; Atali ramp-up delays and API softness temper near-term performance, while CDMO and Xanthine expansion support growth plans.

Financial highlights

• Standalone Q3 revenue was ₹42,525.28 lakh vs ₹47,094.72 lakh YoY; net profit was ₹4,384.46 lakh vs ₹7,352.35 lakh and basic EPS was ₹4.84 vs ₹8.11.

• Q3 standalone EBITDA margin was 24.22%, down 20 bps YoY; PBT before exceptional items was ₹6,137.59 lakh, with ₹279.49 lakh of exceptional provision for new labour codes.

• Consolidated Q3 revenue was ₹43,227.27 lakh vs ₹53,777.82 lakh YoY; net profit was ₹4,795.56 lakh vs ₹7,398.79 lakh.

• Standalone 9M revenue was ₹121,785.12 lakh vs ₹124,172.81 lakh; net profit was ₹12,599.44 lakh vs ₹16,850.35 lakh.

• Consolidated 9M revenue was ₹123,679.85 lakh vs ₹155,129.75 lakh; net profit was ₹12,540.67 lakh vs ₹18,406.39 lakh.

Outlook and guidance

• FY26 EBITDA is expected to be broadly in line with FY25, with marginal growth, reflecting Atali stabilization delays and softer API/intermediate sales.

• FY26 CDMO revenue growth guidance is 30–40% against FY25 sales of ₹208 crore; management expects to meet its target, though delivery delays make exceeding it difficult.

• FY27 CDMO guidance is pending budgeting; growth is expected from the project pipeline, customer inquiries and broader US and Europe sales coverage.

• API sales are expected to move back toward FY25 levels; a quarterly ₹200 crore run rate may take a few more quarters as launches commercialize.

• Xanthine capacity is planned to rise from 5,000 to 9,000 MTPA; overall utilization target is 50%–60% in the first year and 85%–90% of capacity by FY28.