Aarti Drugs Ltd Q2 FY26 Results & Concall Highlights: Revenue, Margins & Order Book

Q2 FY26 earnings call analysis: revenue, margin, capex, fundraise and order book outlook from management commentary.

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

Revenue Net Profit

Dec 2024

Mar 2025

Jun 2025

Sep 2025

Dec 2025

Mar 2026

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.

See what Aarti Drugs Ltd said on profitability & margins — free account, 30 seconds.

🏗️ 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.

See what Aarti Drugs Ltd said on fundraising & capital structure — free account, 30 seconds.

📋 Order Book & Pipeline

The transcript provided from the Q2 FY26 Earnings Conference Call of Aarti Drugs Limited does not specifically mention details about the current or expected order book or pending orders. The discussion primarily focuses on: - New product portfolio planning for long-term growth (5-10 years). - Capacity expansions like Sayakha amine facility and backward integration. - Revenue growth forecasts and capacity utilization targets. - Margin expectations, CAPEX plans, and debt management. - New product commercialization in regulated markets. Hence, no explicit data on order book or pending orders is available in this document.

Key Metrics

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Frequently Asked Questions

What were Aarti Drugs Ltd Q2 FY26 results?

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.