Aarti Drugs Limited has informed the Exchange about Transcript
AARTIDRUGS · price
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Aarti Drugs reported Q1 FY26 revenue of INR 591 crores, up 6% year-on-year, with API business growing 5% and formulations up 14% to INR 80 crores. Gross margins improved 130 basis points to 36.8% on input cost normalization, and EBITDA rose 12% to INR 74 crores (12.6% margin). Management guided for 15% CAGR volume growth over FY26-FY27 and targets EBITDA margins of 15-16% by FY27, supported by the Sayakha backward integration plant, salicylic acid scale-up at Tarapur (currently below 200 tonnes/month, target 1,600 tonnes/month), and rising regulated market sales. The company recently received USFDA approval for its Tarapur API facility and oncology plant, plus UK MHRA approval for its oral solid dosage facility, opening up US and Europe re-entry opportunities. Capex guidance for FY26 is INR 150-200 crores, with net debt at INR 597 crores and debt-to-equity at 0.42, which management expects to keep within 0.4-0.7.
Positive outlook for shareholders, with management clearly guiding for margin expansion and multi-year volume growth. Near-term stock reaction may be supported by USFDA approval news and the China-plus-one tariff opportunity, though salicylic acid plant losses and Chinese price dumping remain near-term drags. EBITDA margin path to 15-16% is the key metric to watch, with FY27 as the target year.