Aarti Drugs Limited has informed the Exchange regarding a press release dated May 16, 2026, titled "Q4&FY26 Business and Financial Performance".
AARTIDRUGS · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Aarti Drugs reported Q4 FY26 revenue of Rs 721.1 crore (up 6% YoY) and FY26 revenue of Rs 2,567.7 crore (up 7% YoY). However, EBITDA margin contracted to 12.1% for FY26 from 12.6% in FY25, a decline of 50 bps. Q4 EBITDA margin was 13.4% versus 14.0% in Q4 FY25. PAT for FY26 came in at Rs 194.9 crore, up 16% YoY, driven by a tax refund benefit. CFO Adhish Patil cited two key profitability headwinds: start-up losses from new facilities (particularly the Sayakha plant which reached ~1,000 tonnes/month run-rate in March 2026) and continued domestic antibiotics market weakness. Raw material cost inflation and geopolitical supply disruptions added further pressure. However, sequential recovery was strong in Q4 with EBITDA up 72% QoQ. Business mix improved with regulated market share rising from 66% to 73% and exports from 35% to 38%. Formulations and Specialty Chemicals segments grew 33% and 37% YoY respectively.
Margin pressure from facility start-up costs and domestic API weakness offset by strong Q4 sequential recovery. The strategic shift toward higher-margin regulated markets and diversified segments (Formulations, Specialty Chemicals) provides some earnings resilience, though near-term margin improvement remains constrained by scale-up costs.