Aarti Drugs Ltd Q2 FY26 Results & Concall Highlights: Revenue, Margins & Order Book
Published 3 Aug 2026 | Pharmaceuticals & Biotechnology | Market Cap: ₹3.8K Cr
FY26 revenue growth expected in single digit; H2 FY26 is targeted for high single-digit value growth. Aarti Drugs targets revenue growth of 15%-20% in FY27, banking on ramp-up of salicylic acid and success of the Sayakha project.
From Aarti Drugs Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.
Price
₹417
Market Cap
₹3.8K Cr
P/E Ratio
19.7
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Aarti Drugs Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹720 Cr, net profit ₹55 Cr.
Full financials →📊 Revenue & Sales Performance
- →FY26 revenue growth expected in single digit; H2 FY26 is targeted for high single-digit value growth.
- →Volume growth in API segment for Q2 FY26 was around 9.33% year-on-year, with strong export growth offsetting domestic flat/slight decline.
- →FY27 expected to see stronger growth with a target of 15%-20%, driven by ramp-up of salicylic acid and Sayakha project.
- →Salicylic acid plant aiming for ~60% utilization to support growth.
- →New capacities and Greenfield projects installed to drive growth for next 3-4 years.
- →Aarti Drugs is forming a product portfolio targeting Rs.10,000 crores revenue over 5-10 years.
- →Focus on expanding Metformin capacity to meet growing captive consumption and external demand.
- →Ramp-up of Sayakha amine backward integration expected to improve margins and support growth.
- →Launch of new regulated market API and formulations anticipated between next 6 to 18 months to contribute Rs.60-70 crores.
📈 Profitability & Margins
- →Aarti Drugs targets revenue growth of 15%-20% in FY27, banking on ramp-up of salicylic acid and success of the Sayakha project.
- →Internal target to achieve EBITDA margins of 15%-16% by end of FY27 (H2), improving from 13% currently.
- →Sayakha amine facility expected to deliver EBITDA margins of 18%-20% once at full capacity, though pricing pressures may moderate margins.
- →Company expects steadily increasing quarter-on-quarter margins driven by backward integration, improved product portfolio, and export growth.
- →PAT for H1 FY26 grew 45% YoY, with margins improving by 210bps, indicating strong earnings momentum.
- →Long-term growth planned by developing new product portfolios targeting 5-10 years horizon to drive scale from Rs.5,000 crores to Rs.10,000 crores revenue.
- →Focus on improving cost efficiencies, product quality, and increasing regulatory approvals to enhance operating profits and EPS going forward.
🏗️ Capital Expenditure Plans
- →FY26 CAPEX: Around Rs. 150-200 crores expected; Rs. ~100 crores already incurred in H1 FY26.
- →FY27 CAPEX: Similar investment of around Rs. 150-200 crores projected, including expansions like Metformin.
- →Future CAPEX: Company is developing a new product portfolio for a long-term growth plan spanning 5 to 10 years, with further CAPEX to be announced once the blueprint is finalized.
- →Existing Greenfield projects: Phase one of Greenfield projects invested around Rs. 200 crores each, with scope for phase two investments at lower CAPEX but higher asset turn.
- →Sayakha methylamine plant: Commercialized recently with capacity 60 TPD scalable to 80 TPD; intended for backward integration and improving margin resilience.
- →Strategic focus on backward integration, supply chain reliability, and margin expansion through new facilities like Sayakha and salicylic acid plants.
💰 Fundraising & Capital Structure
- →No explicit mention of any planned new fundraising through debt or equity in the discussed transcript.
- →The company aims to maintain a debt-to-equity ratio between 0.4 to 0.7 to balance leverage and shareholder payouts.
- →Debt reduction is ongoing but balanced with dividend payments, reflecting no aggressive debt repayment plan.
- →CAPEX plans for FY26 and FY27 are around Rs.150-200 crores each year, funded presumably through internal accruals or existing resources.
- →Future big CAPEX and related funding plans will be announced once the company finalizes its long-term product portfolio (5-10 year perspective).
- →No clear indication of any fresh equity raise or large external debt in the near term from available information.
📋 Order Book & Pipeline
Key Metrics
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What Aarti Drugs's management said in earlier quarters
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Frequently Asked Questions
What were Aarti Drugs Ltd Q2 FY26 results?
FY26 revenue growth expected in single digit; H2 FY26 is targeted for high single-digit value growth. Aarti Drugs targets revenue growth of 15%-20% in FY27, banking on ramp-up of salicylic acid and success of the Sayakha project.
What is Aarti Drugs Ltd share price analysis?
Aarti Drugs Ltd currently shows a neutral. The stock trades at a P/E of 19.7 with a market cap of ₹3,800 Cr. Investors should review the full earnings analysis for detailed insights.
Is Aarti Drugs Ltd planning capital expenditure?
FY26 CAPEX: Around Rs.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.