Mumbai, India – Aarti Drugs Ltd. announced impressive financial results for the September quarter of fiscal year 2027 (Q2 FY27), with its consolidated net profit soaring by 83% year-on-year to Rs 82.8 crore. This significant growth was accompanied by a 27% rise in consolidated revenue, reaching Rs 828.8 crore compared to Rs 652.9 crore in the same period last year.
Investors responded enthusiastically to the strong performance, driving Aarti Drugs shares up by 7% to a high of Rs 500 in Wednesday's trading session, from a previous close of Rs 465.60. The stock opened at Rs 493.
Operating Performance and Margins See Significant Improvement
The pharmaceutical manufacturer demonstrated a sharp improvement in its operating efficiency. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) climbed 63% to Rs 137.9 crore, up from Rs 84.4 crore a year prior. This boosted the EBITDA margin by 370 basis points to 16.6%, compared to 12.9% in Q2 FY26. Similarly, the Profit After Tax (PAT) margin also expanded by 310 basis points, reaching 10% from 6.9% in the corresponding quarter.
Gross profit for the quarter increased by 35% to Rs 329.7 crore, with the gross margin improving to 39.9% from 37.5%, an expansion of 240 basis points.
Growth Across Key Business Segments
Aarti Drugs' robust performance was underpinned by growth across all its primary business segments:
- Active Pharmaceutical Ingredients (API): Revenue rose 17% year-on-year to Rs 604.5 crore.
- Formulations: Revenue increased by a substantial 58% to Rs 130 crore.
- Specialty Chemicals: This segment nearly doubled its revenue, surging 92% to Rs 71.8 crore.
- Intermediates and Others: Revenue grew 16% to Rs 19.9 crore.
Half-Yearly Performance Highlights
For the first half of FY27, Aarti Drugs continued its upward trajectory. Consolidated revenue for the six-month period grew 23% to Rs 1,532.4 crore. EBITDA increased 48% to Rs 234.8 crore, and PAT rose 34% to Rs 132.9 crore. The company's EBITDA margin for H1 FY27 expanded by 250 basis points to 15.3%.
Management Commentary
Commenting on the results, Managing Director Adhish Patil stated, "The company recorded its highest-ever quarterly EBITDA of Rs 138 crore, with margins reaching their highest level in nearly six years." He attributed this stellar performance to strong volume growth, improved realisations across its API, formulations, and specialty chemicals businesses, and ongoing progress in developing an integrated manufacturing platform.