Aarti Pharmalabs (AARTIPHARM) Q4 24/25 earnings summary

Executive summary

• FY25 consolidated revenue was INR 21,151 Mn, up 14.2%; EBITDA rose 20.3% to INR 4,644 Mn and PAT increased 25.6% to INR 2,724 Mn, setting records for EBITDA and PAT.

• Strategy prioritizes growth, backward integration, product innovation and disciplined investment, with continued expansion expected in FY26.

• FY25 standalone and consolidated audits received unmodified opinions; a final dividend of ₹2.50 per share was recommended, subject to shareholder approval.

Financial highlights

• Q4 FY25 consolidated revenue was INR 5,637.77 lakh, up 11.5% YoY; EBITDA was INR 1,456 Mn, up 23.9%, and PAT was INR 883.408 lakh, up 35.2%.

• Q4 consolidated EBITDA margin was 25.82%, up 259 bps YoY; PAT margin was 15.66%, up 275 bps, and diluted EPS was ₹9.74.

• FY25 standalone revenue increased 17.9% to INR 17,714 Mn; EBITDA rose 23.2% to INR 4,265 Mn and PAT rose 28.2% to INR 2,573 Mn.

• FY25 consolidated net cash from operating activities was ₹33,156.15 lakh, versus ₹21,635.46 lakh in FY24.

Outlook and guidance

• FY26 standalone EBITDA growth guidance is 12%-15%; it includes Atali expenses ahead of meaningful initial revenue contribution.

• FY26 CDMO/CMO revenue is expected to grow 30%-40%, supported by orders and visibility; delivery timing remains volatile and non-linear.

• FY26 CapEx is projected at INR 400-450 crore, including Atali completion, xanthine expansion, maintenance and R&D.

• Atali Phase 1 is planned to add 450+ KL of reactor volume, with commercialization expected by FY26-end; validation and customer qualification may take three to four quarters.

• Xanthine capacity is expanding to 9,000+ MTPA, with phased commissioning expected in H2 FY26; full operation is expected by Q1 FY27, with 80%-90% utilization targeted over three years.