Aarti Pharmalabs (AARTIPHARM) Q4 25/26 earnings summary

Executive summary

• FY26 audited standalone revenue was ₹179,755.17 lakh and net profit ₹25,734.88 lakh, versus ₹177,135.18 lakh and ₹17,620.20 lakh in FY25; consolidated comparisons are affected by the Ganesh Polychem JV accounting change.

• CDMO/CMO and Xanthine delivered record quarterly revenues; capacity ramp-up and cost pressures weighed on profitability.

• Standalone revenue and EBITDA CAGR target is 15%-18% over the next 3-4 years, supported by capacity additions and project ramp-up.

• A final dividend of ₹2 per ₹5 equity share was recommended for FY26, subject to shareholder approval.

Financial highlights

• FY26 standalone revenue was ₹179,755.17 lakh vs ₹177,135.18 lakh in FY25; net profit was ₹25,734.88 lakh vs ₹17,620.20 lakh.

• Q4 FY26 standalone revenue was ₹57,970.05 lakh vs ₹52,962.37 lakh; net profit was ₹5,803.70 lakh vs ₹7,899.23 lakh.

• FY26 standalone EBITDA was INR 4,061 Mn, down 4.8% YoY; EBITDA margin was 22.59%, down 149 bps.

• FY26 consolidated revenue was ₹181,944.25 lakh vs ₹211,507.45 lakh; net profit was ₹17,470.73 lakh vs ₹27,240.48 lakh.

• Q4 FY26 consolidated revenue was ₹58,264.40 lakh vs ₹56,377.70 lakh; net profit was ₹6,112.41 lakh vs ₹8,834.08 lakh.

Outlook and guidance

• Standalone revenue and EBITDA CAGR target is 15%-18% over the next 3-4 years; customer approvals and project timing may shift sales across quarters.

• FY27 CDMO/CMO sales growth is projected at 40%-50%; management cited a $100 million future CDMO revenue line of sight, subject to approvals and launches.

• FY27 API/intermediate revenue is expected to exceed FY25 levels, supported by steroid debottlenecking and customer launches in the US and Europe.

• Xanthine capacity is expected to increase from 6,000 to 9,000+ MTPA in phases from Q1 FY27; added capacity is expected to support revenue above INR 1,000 crore.

• FY27 capex is expected to remain near FY26's ~INR 400 crore; TIDES investment in peptides and oligonucleotides is planned to begin in FY27.