Aarti Pharmalabs Ltd

- Current borrowings stand at around Rs. 400+ crores. - Borrowings are expected to increase by about Rs. 100-125 crores in the current financial year. - This would keep the debt-to-equity ratio roughly in the range of 0.23 to 0.25. - There is no mention of any immediate plans for equity fundraising. - Promoter group has done some minor selling of shares recently but no large change in promoter holding is expected. - Overall control of the company will not be affected by any promoter selling. - No explicit discussion on future fundraising outside the mentioned debt increase was provided.

- FY'25 CAPEX: Around Rs. 400 crores spent. - FY'26 CAPEX guidance: Rs. 400-450 crores planned. - Major CAPEX break-up for Rs. 800-850 crores cumulative over FY'25 and FY'26: - Atali Greenfield project: Rs. 400-425 crores. - Xanthine capacity expansion: Rs. 150 crores. - Solar plant: Rs. 85 crores. - Other smaller projects and R&D: approx. Rs. 40 crores annually. - Atali project mechanical completion expected by end of current quarter; operational ramp-up phased through FY'26. - Xanthine capacity expansion (to 9,000 MT) commissioned phased in H2 FY'26, fully operational by Q1 FY'27. - Solar plant payback expected in about 3.5 to 4 years, with cost savings materializing in FY'26. - Additional capacity expansions planned at Atali with brownfield expansions enabling quicker capacity additions in ~12 months. - Focus on backward integration and new molecules with patent expiry in 3-5 years.

- The company targets around 15% revenue growth in FY'26. - CDMO business is expected to grow 30%-40% in FY'26, contributing approximately 15%-16% of total revenue. - Xanthine business aims for Rs. 1,000 crore to Rs. 1,250 crore in revenue with 80%-90% capacity utilization by FY'29. - API & Intermediates segment growth driven by regulated markets and new product launches, particularly anti-cancer and anti-diabetic drugs. - New products and launches expected over next 2-3 years will contribute to growth, strengthening market share. - Atali plant commercialization expected by FY'26 end, with phased operationalization supporting capacity expansion. - Long-term 3-year growth guidance of 12%-15% EBITDA with focus on bottom-line improvement and process efficiencies. - Revenue growth supported by strategic backward integration and broadening customer base (currently 21 customers in CDMO).

- FY'26 EBITDA growth guidance: 12% to 15% over the higher base of FY'25, supported by higher-margin products, process efficiencies, and volume growth. - FY'25 EBITDA grew 20% YoY; PAT grew 26% YoY. - Strong topline growth expected with 15% revenue growth guidance. - CDMO business expected to grow 30%-40% in FY'26, contributing approx. 15%-16% of total revenue next year. - Xanthine segment expected to reach Rs. 1000-1250 crores in revenue by full utilization (Q1 FY'27), driven by regulated pharma market growth. - API segment growth supported by new launches and increasing market share in regulated exports. - Long-term aspiration for capacity utilization of 80%-90% in Xanthine over three years. - Medium-term revenue growth target ~15% annually for next 3 years, with current year guidance at 12%-15% EBITDA growth indicating some conservatism. - Ongoing product innovation and new molecule launches in API and CDMO expected to drive earnings expansion.

- Aarti Pharmalabs is currently working with 21 customers in the CDMO/CMO segment. - The number of active projects has increased to 61 (from 56 last quarter). - Out of these, 33 projects are at the commercial stage, and 27 are under various development stages at the customer's end. - Approximately 70-75% of the commercialized projects contributed to revenue in FY'25. - The company focuses on both primary and secondary supplier roles in these projects and values both for commercial success. - There is confidence in CDMO business growth with guidance of 30% to 40% growth. - No explicit pending orderbook value mentioned, but the active projects and customer base indicate a healthy pipeline.