Aarti Drugs Limited — Q2 FY26
Aarti Drugs reported a solid Q2 FY26 with consolidated revenue of ₹652.9 crore (+9% YoY) and EBITDA of ₹84.4 crore (+23% YoY), driven by robust export volume growth of over 30%...
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.
67%Questions answered1Evaded / deflected12Questions auditedMixedNumbers vs filing
Partial answer
High priority
Key R&D products for commercialization in next 14 months and revenue contribution.
Asked by Rahan, Tineta Asset Managers
Gave one product name and a vague range, but not two to three specific products with clear timelines.
vague rangeno specific product names beyond one
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Question
Could you highlight two to three key products expected to be commercialized in the next 14 months and their potential contribution to revenue?
Vishua (management)
We will be commercializing first product in US this quarter, balutmide, and anti-diabetic products in Europe/UK in 6-9 months. These should give additional top line of 70 to 70 crores.
Partial answer
Medium priority
Recovery trends in domestic API market, especially antibiotics.
Asked by Rahan, Tineta Asset Managers
Acknowledged issues but gave no quantitative recovery trend, only hope for Q4.
no specific datadeferred to future
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Question
Are you witnessing any recovery trends in the domestic API market in antibiotic therapy?
Management (unclear name)
In antibiotic category we did face issues. Q3 is lean, hope from Q4 onwards slight pick up in domestic demand.
Partial answer
High priority
Margin guidance for going forward.
Asked by Rahan, Tineta Asset Managers
Gave current margin and aspirational target but no specific guidance on when or how much.
no specific timelinequalitative only
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Question
Is there any margin guidance for going forward?
Management (unclear name)
On standalone basis we slightly crossed 13%. Pre-COVID we did 15-16%. We have drivers to take consolidated margins back to 15%. It will take time, sequentially we hope to see improvements.
Answered
High priority
Pricing bottom and volume growth in API this quarter.
Asked by Dangi, Ratmatra Investment Management LLP
Provided specific volume growth numbers and pricing context.
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Question
Is the price bottomed out or flat year on year? What is the volume growth in API this quarter?
Management (unclear name)
Domestic volume was flat, slight degrowth of couple percent. Export had more than 30% volume growth. Overall 9.33% volume growth in API segment this quarter.
Evasive
High priority
Timeline to reach pre-COVID margin levels.
Asked by Dangi, Ratmatra Investment Management LLP
Did not answer whether 12-18 months is achievable; only gave aspirational target.
no timeline givendeferred to sequential improvement
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Question
In terms of margin, should we be crossing the pre-COVID level in 12-18 months?
Management (unclear name)
Standalone margin just crossed 13%. We are absorbing losses in salicylic acid and new plant. Confident sequential improvement, ultimate target 15-16%.
Partial answer
Medium priority
Other income range for second half and tax rate guidance.
Asked by Candace Pereira, Nat Capital
Gave tax guidance but declined to provide other income outlook.
declined to give other income guidance
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Question
Other income is very low compared to last year. Will it be in this range only for H2? And any tax rate guidance for FY26 and FY27?
Management (unclear name)
Cannot comment on other income now. For full year it should be steady. Tax rate will continue around 25% inclusive. Expecting some refunds in Q3/Q4.
Partial answer
High priority
Overall revenue guidance for FY26.
Asked by Candace Pereira, Nat Capital
Gave H2 aspiration but no full-year revenue guidance.
no full-year numberonly H2 qualitative
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Question
Are you providing overall revenue guidance?
Management (unclear name)
We targeted early teens volume growth. This quarter we made around 6% value growth. For H2 we aim high single-digit value growth.
Answered
High priority
Capacity and capex for backward integration, asset turn.
Asked by Sanel Jane, Abed Capital
Provided specific capacity, capex range, and asset turn estimate.
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Question
How much capacity added for backward integration? Total capex spent and expected asset turn?
Management (unclear name)
Total methylamine plant capacity 60 TPD, scalable to 80 TPD. Spent around 200 crores each for both greenfield projects. Asset turn in phase one will be 1 to 1.5.
Answered
Medium priority
Captive vs external sale split for new capacity.
Asked by Sanel Jane, Abed Capital
Gave a clear 50-50 split.
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Question
Will this capacity be fully utilized for captive consumption or sold outside? Ballpark range?
Management (unclear name)
Main idea is captive consumption but side chain products will be sold. Ballpark 50-50%.
Partial answer
High priority
Revenue growth guidance for FY26 and FY27, whether 15% CAGR still valid.
Asked by Jam Gilani, Swan Investments
Gave aspirational range but heavily conditional on salicylic acid success.
conditional languageno commitment
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Question
Earlier we mentioned 15% CAGR for FY26 and FY27. Now FY26 growth seems single digit. Do we expect FY27 to be higher to maintain guidance?
Management (unclear name)
Negative rate variance is behind us. For FY27 we can try to hit mid-teens volume growth. Key challenge is salicylic acid ramp-up. If all goes well, 15-20% growth next year.
Answered
High priority
Year by which 15-16% margin guidance can be achieved.
Asked by Jam Gilani, Swan Investments
Provided a specific timeline (end of FY27) for margin target.
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Question
Which year do you think 15-16% margins can be achieved, FY27 or FY28?
Management (unclear name)
If we achieve all volumes in FY27 as promised, towards end of FY27 we should start hitting run rate of 15%. That is internal target.
Answered
High priority
Capex plans for FY26 and FY27, and debt reduction strategy.
Asked by AM Loda, Sati Consultants
Provided specific capex range, debt numbers, and target ratio.
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Question
How much capex company is planning to incur in FY26 and FY27? What is present debt and how to reduce it?
Management (unclear name)
For FY26, incurred ~100 cr in H1, estimate 150-200 cr total. For FY27 similar investment. Debt to equity ratio 0.33 standalone, 0.39 consolidated. Total debt 571 cr. Target debt/equity 0.4 to 0.7.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Standalone EBITDA margin slightly crossed 13% | 13% | 12.9% | Matches filing |
| Pre-COVID EBITDA margin 15-16% | 15.5% | 12.9% | Overstated vs filing |
| Additional top line from new products 70 crores | ₹70 cr | ₹652.9 cr | Understated vs filing |
| Value growth this quarter around 6% | 6% | 9% | Understated vs filing |
| H2 FY26 aim high single-digit value growth | 8% | 9% | Matches filing |
| Saiaka project expected EBITDA margins 18-20% | 19% | 12.9% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.