Aarti Drugs Limited — Q3 FY26
Aarti Industries reported Q3 FY26 revenue of ₹2,492 crore (up 11% QoQ) and EBITDA of ₹323 crore (up 11% QoQ), driven by volume growth in MMA and other products.
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
92%Questions answered0Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Intention for formulation business: only APIs or beyond?
Asked by Vishal, Systematics
Management clearly stated they do both, with priority on in-house APIs but not restricted.
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Question
whether on the formulation business the primary intention is to do all the formulations of the existing APIs that we large capacities for or we would also do other formulations beyond our APIs that we are traditionally strong at.
Vishro (Management)
currently we are doing both. We are working on formulations of APIs that Aarti Drugs is manufacturing in house. But we are not restricting to that. Especially on our pipeline we are focusing more on niche categories into the oncology and cardiabetic range.
Partial answer
High priority
Quantify savings from backward integration projects at peak utilization.
Asked by Vishal, Systematics
Initially hesitant, then gave a rough estimate of 50 crores but with caveats.
no exact number given initiallycalled it a very rough number
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Question
if you can quantify with the backward integration projects... what would be the savings that we'll generate in the numbers?
Management (unclear name)
it should give a boost of say at least couple of percent in gross contribution at the company level when it runs at full scale... very rough number is if run at full scale potential can be slightly upward of 50 crores.
Answered
High priority
Quantify impact of shutdowns and new facilities this quarter.
Asked by Risham Jen, BBD Asset Managers
Management provided specific numbers for EBITDA and PBT impact.
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Question
if it is possible to quantify all the things which you have mentioned in your opening remarks with respect to shutdown and some of the new facilities coming up... how much impact would be there in this quarter?
Management (unclear name)
at the EBITDA level it could have created a drag of roughly 8 or 8 and a half crores and at the PBT level probably it would be around some 14 15 crores.
Answered
High priority
Capex for FY27 beyond planned 600 cr?
Asked by Risham Jen, BBD Asset Managers
Management gave a clear range for annual capex.
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Question
what is the capex let's say in FY27 beyond what we have earlier planned for?
Management (unclear name)
I would still maintain that around 150 to 200 crores of capex you can expect for the next two years each year.
Answered
High priority
Volume growth trajectory for FY27?
Asked by Dwani Desai, Turtle Capital
Management provided a specific volume growth range.
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Question
should we expect those kind of volume and hence value growth going forward into FY27 also?
Management (unclear name)
we can expect around 12 to 15% volume growth in FY27 with both the projects going smooth.
Answered
High priority
Gross margin trajectory for FY27?
Asked by Dwani Desai, Turtle Capital
Management gave a specific gross margin target.
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Question
how should we look at this margin trajectory going into FY27?
Management (unclear name)
36% gross margin is fair to assume it is not that tough to achieve 36%.
Answered
Medium priority
Why continue capex when plants are still scaling?
Asked by Dwani Desai, Turtle Capital
Management explained rationale and provided comfort on existing projects.
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Question
why is it that we don't want to kind of first stabilize and get to the good operational efficiency level and then do the capex?
Management (unclear name)
the sika plant has operationalized very smoothly... we'll know within 6 months whether one of the greenfield capex is fully operationalized... part of that 150 to 200 crores will also go for oncology dosage development.
Partial answer
High priority
Salicylic acid realizations stabilized?
Asked by Yoshi, UNIC Capital Private Limited
Management acknowledged dumping but gave qualitative improvement only.
no specific numbers on realizations
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Question
have the realizations stabilized or they are still the dumping is still on and the realizations have come down?
Management (unclear name)
Chinese dumping is still on but due to dollar going up we are getting little better realization than last quarter... we are also trying to apply duty from beginning of next year against Chinese imports.
Answered
High priority
Steady state EBITDA margins next year?
Asked by Yoshi, UNIC Capital Private Limited
Management provided clear margin targets.
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Question
next year steady state what will be around?
Management (unclear name)
first we would like to hit the target of 12 to 13%... ideal steady state margins should be somewhere in 14 to 15% range.
Answered
High priority
API pricing trajectory?
Asked by Adita, Soilo Investments
Management gave specific price decline and stated stabilization.
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Question
what kind of trajectory are we seeing especially for API?
Management (unclear name)
overall negative price variance in December quarter with respect to September is roughly around 2 to 2 and a half%... we will still maintain that the prices have stabilized from September onwards.
Answered
High priority
Total investment in oncology business?
Asked by Vishal, Systematics
Management provided specific investment breakdown and total.
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Question
can you share what would be the total investment including the dosage development cost we'll be making in the oncology business?
Misha (Management)
facility capex would be about 50 crores and product development and regulatory would be about again 50 to 60 crores every year for the next three years. So broadly 200 crores spread over time.
Answered
Medium priority
Why choose salicylic acid for backward integration?
Asked by Vishal, Systematics
Management explained rationale and current challenges.
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Question
why we kind of chose salicylic as a import substitute option while there were so many you could have also chosen a backward integration project for metformin?
Management (unclear name)
we studied pricing trend of salicylic acid for five to six years... that time no one was manufacturing that product and the technology showed very high profit margin... but when we entered China started crashing the prices.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| EBITDA drag of 8-8.5 cr from greenfield projects | ₹8.5 cr | ₹323 cr | Understated vs filing |
| Gross margin impact of 1% from inventory sales | 1% | 9% | Understated vs filing |
| Consolidated gross margin 35.9% | 35.9% | 9% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.