NSE: AARTIDRUGS · BSE: 524348
AARTI DRUGS LTD.
Manufactures active pharmaceutical ingredients (APIs) including antibiotics, methylamine, salicylic acid and their derivatives, along with finished formulations and specialty chemicals. Operates a methylamine plant at Sayakha (Bharuch) that reached roughly 1,000 tonnes per month by March 2026 and was at 65% utilization in Q1 FY27, with management targeting 70%+ within a year; the salicylic acid line was halted pending phenol-recovery equipment, while a derivatives plant was set to commission by mid-June. Finished formulations posted revenue of INR91.3 crore in Q4 FY26 (up 41% YoY), and management has guided to a sustainable INR90 crore quarterly run-rate with a goal of INR1,000 crore in 3-5 years. Exports contribute 38% of total revenue, with regulated markets making up 73% of export revenue (up from 66% in FY25); a US FDA metformin DMF has been filed, with flows expected within 12-18 months. Specialty chemicals revenue jumped 150% YoY in Q1 FY27 and OSD capacity at the Baddi facility is set to double. Raw materials are the largest cost item at 58.6% of revenue; planned capex is INR300-400 crore over 2-3 years in a quasi-brownfield model. Q1 FY27 consolidated revenue was INR703.6 crore with EBITDA margin of 13.8%, versus a FY26 margin of 12.15%. AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. Active Pharmaceutical Ingredients (antibiotics, methylamine, salicylic acid and derivatives), Formulations, Specialty Chemicals. Integrated API and formulation manufacturer with rising regulated-market export exposure
Exhibit 1: Financial summary, FY22–FY26 (all audited; no estimate years)
| ₹ crore · consolidated | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 2,489 | 2,716 | 2,529 | 2,387 | 2,565 |
| EBITDA (ex other income) | 329 | 306 | 316 | 287 | 309 |
| margin % | 13.2 | 11.3 | 12.5 | 12.0 | 12.1 |
| Owners' profit | 205 | 166 | 171 | 168 | 195 |
| EPS, as reported (₹) | 22.12 | 17.97 | 18.56 | 18.35 | 21.36 |
| ROE % · ROCE % | 19.8 · 22.9 | 13.9 · 17.3 | 13.4 · 16.4 | 12.3 · 14.3 | 12.6 · 12.9 |
| Debt / equity (x) | 0.52 | 0.51 | 0.44 | 0.45 | 0.37 |
| Cash from operations | 70 | 134 | 359 | 245 | 254 |
| Capex | (144) | (165) | (226) | (177) | (173) |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 598 | 557 | 677 | 591 | 653 | 602 | 720 | 703 |
| Profit before tax | 46 | 51 | 71 | 51 | 60 | 29 | 70 | 69 |
| Net profit | 35 | 37 | 63 | 54 | 45 | 41 | 55 | 50 |
| EPS (₹) | 3.83 | 4.06 | 6.88 | 5.91 | 4.95 | 4.44 | 6.05 | 5.49 |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| SUN PHARMACEUTICAL IND L | 4,20,165 | 34.8 | 5.01 | 22.5 | 13.7 | 17.5 | 11.8 | 32.3 |
| DIVI S LABORATORIES LTD | 2,51,896 | 86.3 | 15.03 | 65.0 | 15.3 | 18.8 | 8.7 | 42.8 |
| TORRENT PHARMACEUTICALS L | 1,56,538 | 73.9 | 8.90 | 38.9 | 12.2 | 8.0 | 11.8 | 33.1 |
| ZYDUS LIFESCIENCES LTD | 1,17,055 | 26.1 | 3.96 | 15.1 | 17.3 | 18.0 | 12.4 | 25.2 |
| LAURUS LABS LIMITED | 1,15,722 | 105.7 | 21.31 | 64.4 | 16.4 | 17.2 | 7.2 | 32.0 |
| DR. REDDY S LABORATORIES | 1,09,385 | 33.9 | 2.86 | 14.6 | 10.9 | 13.0 | 12.1 | 15.0 |
| CIPLA LTD | 1,09,060 | 32.3 | 3.16 | 16.7 | 11.2 | 14.7 | 8.0 | 19.7 |
| MANKIND PHARMA LIMITED | 1,03,353 | 50.6 | 6.24 | 28.4 | 11.7 | 10.8 | — | 27.3 |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 19.3 | 30.1 | 46 of 158 | 71% |
| P/B | 2.4 | 3.0 | 69 of 163 | 58% |
| ROCE | 11.1 | 10.8 | 89 of 183 | 52% |
| ROE | 12.6 | 9.8 | 61 of 166 | 64% |
| Debt / Equity | 0.4 | 0.2 | 121 of 166 | 27% |
| EBITDA margin | 13.8 | 17.5 | 97 of 165 | 42% |
| Revenue growth | 19.0 | 16.3 | 75 of 161 | 54% |
| Profit growth | (7.1) | 30.9 | 111 of 158 | 30% |
| Market cap | 3683 | 810 | 65 of 181 | 64% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 27 Oct 2026 · Board to approve September 2026 quarter and half-year audited results | results | low | — | — |
| 8 Oct 2026 · Crisil assigns ESG rating of 61 (Strong) to Aarti Drugs for FY26 | business updates | medium | — | — |
| 7 Oct 2026 · Quarterly dematerialisation compliance certificate filed with exchanges | compliance | minimal | — | — |
| 1 Oct 2026 · Authorized persons for stock exchange disclosures updated | compliance | minimal | — | — |
| 30 Sept 2026 · Aarti Drugs Chairman and CEO Prakash Patil retires; Adhish P. Patil promoted to MD | management changes | critical | — | — |
| 30 Sept 2026 · Chairman, MD and CEO retires; CFO promoted to Managing Director | management changes | critical | — | — |
| 29 Sept 2026 · Trading Window Closure for September 2026 Quarter Results | compliance | minimal | — | — |
| 26 Sept 2026 · Aarti Drugs: Adhish Patil (promoter son) named MD; board changes | management changes | medium | — | — |
| 26 Sept 2026 · Aarti Drugs 41st AGM: All 16 resolutions passed; ESOP plan gets 84.8% support | compliance | minimal | — | — |
| 26 Sept 2026 · Aarti Drugs AGM: FY26 PAT up 3% at Rs 312 cr; Q1 FY27 revenue up 19% | investor communications | medium | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.