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View Claim Ledger →Aarti Pharmalabs Limited — Q4 FY26
Aarti Pharmalabs reported Q4 FY26 standalone revenue of ₹580 crore (+9% YoY), but EBITDA fell to ₹134 crore (-5% YoY) and PAT dropped to ₹62 crore (-30% YoY), impacted by a ₹33 crore forex loss and cost inflation from West Asia tensions.
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Aarti Pharmalabs reported Q4 FY26 standalone revenue of ₹580 crore (+9% YoY), but EBITDA fell to ₹134 crore (-5% YoY) and PAT dropped to ₹62 crore (-30% YoY), impacted by a ₹33 crore forex loss and cost inflation from West Asia tensions. The CDMO segment posted record quarterly revenue of ₹155 crore (+32% YoY), while the xanthine derivatives segment also hit a record at ₹227 crore. API/intermediates remained soft due to pricing pressure. Management guided for 15-18% revenue and EBITDA growth over the next 3-4 years, with CDMO expected to grow 40-50% in FY27. Key risks include persistent raw material inflation, inability to fully pass through costs in the API segment, and lumpy CDMO revenue recognition.
आरती फार्मालैब्स ने चौथी तिमाही में 580 करोड़ रुपये की कमाई की, जो पिछले साल से 9% ज्यादा है। लेकिन मुनाफा घट गया। कंपनी की कमाई और खर्च के बीच का अंतर (EBITDA) 134 करोड़ रुपये रहा, जो 5% कम है। शुद्ध मुनाफा (PAT) 62 करोड़ रुपये रहा, जो 30% गिर गया। इसकी वजह 33 करोड़ रुपये का विदेशी मुद्रा घाटा और पश्चिम एशिया में तनाव से कच्चे माल की बढ़ती कीमतें हैं। कंपनी का CDMO (दवा बनाने में मदद करने वाला कारोबार) हिस्सा 155 करोड़ रुपये की रिकॉर्ड कमाई लाया, जो 32% ज्यादा है। ज़ैंथिन डेरिवेटिव (एक तरह का रसायन) ने भी 227 करोड़ रुपये का रिकॉर्ड बनाया। API (दवा का मुख्य तत्व) का कारोबार कमजोर रहा। कंपनी को अगले 3-4 साल में 15-18% कमाई और मुनाफा बढ़ने की उम्मीद है। CDMO में अगले साल 40-50% बढ़ोतरी हो सकती है। लेकिन कच्चे माल की कीमतें बढ़ना, API में पूरी लागत वसूल न कर पाना, और CDMO की कमाई का अनियमित होना जोखिम हैं।
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Raw material cost inflation from West Asia tensions
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Read Transcript →Quarter Snapshot
CDMO Revenue (Q4)
₹155 Cr
+32% YoY
Record quarterly revenue; driven by late-phase and commercial molecules.
Xanthine Revenue (Q4)
₹227 Cr
+43% YoY
Record quarterly revenue; capacity fully utilized at 6,000 MTPA.
CDMO Active Customers
21
flat YoY
Customer count stable; new engagements expected in FY27.
CDMO Active Projects
54
N/A
35 commercial, 19 under development; strong pipeline visibility.
What Changed vs Last Quarter
NEW
Revenue and EBITDA growth of 15-18% over next 3-4 years
Management targets 15-18% CAGR in both revenue and EBITDA for the medium term, driven by capacity ramp-up and CDMO growth.
NEW
CDMO segment to grow 40-50% in FY27
CDMO/CMO business expected to lead growth with projected sales growth of 40-50% in FY27.
NEW
Capex of ~₹400 crore in FY27
Similar level of capital spending as FY26, allocated to xanthine expansion, Atali phase completion, debottlenecking, and R&D.
NEW
Xanthine capacity expansion to 9,000 MTPA
Incremental capacity from 6,000 to 9,000 MTPA will be available by end of Q1 FY27, with gradual ramp-up.
DROPPED
FY26 EBITDA flat to marginal growth
Management expects FY26 EBITDA to be largely in line with last year with only marginal growth, revised down from earlier expectations due to Atali delays and API softness.
DROPPED
CDMO revenue guidance for FY26 maintained
Management is confident of meeting the CDMO revenue guidance for FY26, though exceeding the target is now difficult due to project delays.
DROPPED
Zanthin expansion mechanical completion by March 2026
The Zanthin expansion is on track for mechanical completion by end of March 2026, with incremental capacity available from Q1 FY27.
DROPPED
Atali plant resolution by Q4 FY26
Startup hiccups at Atali are expected to be resolved by end of Q4 FY26, with corrective actions in place.
NEW RISK
Raw material cost inflation from West Asia tensions
Geopolitical tensions have caused significant increases in raw material and logistics costs, impacting margins, especially in the API segment where cost pass-through is difficult.
NEW RISK
Inability to pass on cost increases in API/intermediates
Management noted that existing orders in the API segment cannot be repriced, and future price increases depend on competitive dynamics.
NEW RISK
Lumpy CDMO revenue and working capital strain
CDMO revenue is lumpy due to project-based deliveries, and large customer orders require significant inventory financing without advances.
NEW RISK
Forex volatility impact on profitability
A ₹33 crore forex loss in FY26 (including on foreign currency loans) highlights exposure to currency fluctuations, with potential for further hits.
RISK GONE
Atali plant stabilization delays
Startup hiccups at Atali have impacted production plans; resolution expected by Q4 but may slip further, delaying revenue ramp-up.
RISK GONE
API business margin pressure and degrowth
API revenue declined YoY due to pricing pressure and slower customer off-take; recovery may take several quarters.
RISK GONE
CDMO revenue concentration on few molecules
80% of CDMO sales come from 7-8 projects; failure of any key project could materially impact revenue.
RISK GONE
China rebate withdrawal benefit may not fully materialize
While China's rebate withdrawal could boost pricing, locked-in contracts may limit near-term realization.
🤫 Topics management stopped discussing
Mentioned in Q1 FY26, Q3 FY26
Startup hiccups at Atali are expected to be resolved by end of Q4 FY26, with corrective actions in place.
Mentioned in Q1 FY26, Q3 FY26
Management is confident of meeting the CDMO revenue guidance for FY26, though exceeding the target is now difficult due to project delays.
Mentioned in Q1 FY26, Q3 FY26
Management expects FY26 EBITDA to be largely in line with last year with only marginal growth, revised down from earlier expectations due to Atali delays and API softness.
Fast read
Guidance and risk preview
Management targets 15-18% CAGR in both revenue and EBITDA for the medium term, driven by capacity ramp-up and CDMO growth.
Geopolitical tensions have caused significant increases in raw material and logistics costs, impacting margins, especially in the API segment where...
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