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...
neutral
medium
✓ 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.
54%Questions answered3Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Details on dedicated CDMO block at Atali and revenue potential.
Asked by Ankit Gupta, Bamboo Capital
Management gave a revenue range but did not confirm which molecule or timeline.
deferred to future quarterno specific molecule confirmed
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Question
Sir on the CDMO side itself. So if you can elaborate on this dedicated block that you are planning for the CDMO project at Atali. So is it for the molecule which has recently got approval for hot flashes or is it for the molecule which is under phase 3 and for lowering LDL?
Management (not specified)
We are exploring putting up these dedicated block which can manufacture several of these potential long-term projects... once we have some strong understanding of that I think in the future quarter we'll let you know... it can have potential of close to 250 to 300 cr top line also single block.
Evasive
High priority
CDMO growth trajectory and $100M revenue target timeline.
Asked by Ankit Gupta, Bamboo Capital
Management did not commit to the previously stated timeline, citing dependencies.
no firm timelinedepends on customer projections
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Question
Shouldn't we expect higher growth in FY27 given lower base in FY26? Are we on track to reach 1,000 cr revenue from CDMO segment in FY28 or max FY29 as highlighted earlier?
Management (not specified)
The traction is to reach this goal as soon as possible. Of course, it depends on the customer projections and how the products get launched... we don't have a firm number how we will reach and when we will reach this number of 100 million.
Answered
High priority
API segment growth outlook and new launches for FY27-28.
Asked by Ankit Gupta, Bamboo Capital
Management gave a specific target (surpass FY25 API revenue of ~770 cr) and a timeline (FY27).
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Question
What kind of growth are we looking in the API segment and if you can also elaborate a bit more on the launches planned for FY27 and FY28?
Management (not specified)
We will be able to surpass the FY25 numbers of API intermediates. We were around 770 cr. We should be able to surpass that in FY27.
Evasive
Medium priority
Possibility of higher growth than 15-18% guidance given CDMO ramp-up.
Asked by Meit Katraia, Nveshai
Management declined to provide any directional view beyond the existing 15-18% guidance.
refused to give directional viewrepeated existing guidance
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Question
You are guiding your CD vertical will grow 40-50% next year, Atali is also ramping up. So can we expect a much higher growth in FY27? I'm not asking for a specific guidance, just directionally.
Management (not specified)
We don't want to give a pointed guidance for any one year. So we are giving a general guidance of 15 to 18% because projects keep shifting by quarter.
Partial answer
High priority
Xanthine peak revenue from new capacity and pricing power.
Asked by Meit Katraia, Nveshai
Management gave a broad revenue potential (>1,000 cr) but no specific peak or timeline.
no specific peak revenue numberqualitative on pricing
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Question
Crude prices have gone up. Are we able to pass on the prices? How much peak revenue we can do from xanthine from new total capacity?
Management (not specified)
We have been pushing our customer for price increase and have had some success. With current new capacity expansion it can be well beyond 1,000 crores from the xanthine newly added capacity.
Evasive
Medium priority
Margin profile and lumpiness of CDMO vs peers.
Asked by Meit Katraia, Nveshai
Management did not answer the question about margin profile or lumpiness relative to peers.
did not address margin comparisondid not address lumpiness
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Question
How does the margin profile differ as compared to our CDMO peers? Their revenue is lumpy because they have only two three commercial CDMOs. Our structurally good and less lumpy. So just want to have your view on lumpiness plus margin profile.
Management (not specified)
Our genius is manufacturing and that's where we get the core value. We are open to doing early phase work as well. We have certain projects which are phase one two moving to three.
Answered
Medium priority
Xanthine revenue composition: volume vs price, and capacity utilization.
Asked by Yeshi, Unifi
Management confirmed full capacity utilization and that growth was both volume and price led.
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Question
In xanthine business we have done around 227 crores turnover this quarter. So whether it was more of volume led or price led since prices have gone up? And what has been the capacity utilization for xanthine this quarter?
Management (not specified)
Currently we are operating 6,000 MT per annum capacity before the new block comes in and we are fully utilizing this capacity. Sales were led by both quantity as well as the rate changes.
Partial answer
Medium priority
Products driving API revenue recovery to FY25 levels.
Asked by Yeshi, Unifi
Management gave broad categories but no specific product names or revenue contributions.
no specific product namesgeneral categories only
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Question
We will surpass the FY25 numbers for API intermediate. Which product gives us the confidence that we'll be able to surpass it? Any product pipeline specifically.
Management (not specified)
We operate in steroid space where we have debottlenecked capacity by almost 30%. We also have certain products getting expired in this financial year in general capital and anti-cancer capital. Certain products have been launched by customers in US and Europe.
Answered
High priority
Clarification on revenue numbers: API, CDMO, xanthine for Q4 and FY26.
Asked by Rahul Jen, Credence Wealth
Management provided specific corrected numbers for CDMO and xanthine, and clarified the API target.
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Question
There is some confusion on the numbers. FY25 API number is 772 crores which has come down to 650 roughly. When you said we will come back to FY25 revenue in FY27, are we talking about 770 or 700? Also CDMO and xanthine numbers seem inconsistent.
Management (not specified)
CDMO sales for this quarter is 155 and for the entire year it is 276 crores. Xanthine sales for this financial year is 792 crores and for this quarter is 227 crores.
Partial answer
High priority
Capital intensity outlook and margin improvement from mix shift.
Asked by Dwanil Desai, Turtle Capital
Management acknowledged lower capital intensity from FY28 but dampened margin improvement hopes due to competitive pricing.
contradicted margin improvement expectationno quantified timeline
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Question
Should we look at our company going forward from next year onwards capital intensity coming down and revenue catching up, hence PAT conversion getting better? Also, with higher margin CDMO and xanthine growing, should that lead to margin improvement?
Management (not specified)
From FY28 onwards that will happen. In xanthine we are trying to capture marquee customers, so topline growth will come but EBITDA growth will not catch up to that level. In CDMO, as we ramp up commercial products, volume can grow faster but we have to get lower margin expectation.
Answered
High priority
Atali block economics, incremental capex, and asset turns.
Asked by Pri Jen, Nvesha Investments
Management provided updated asset turn guidance (1.5-2x) and explained dependency on stages.
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Question
I want to know the block level economics of Atali plant. Now that common utilities are in place, what is the incremental capex and timeline for additional block? Earlier guidance was 1-1.2x asset turns, any revision?
Management (not specified)
For dedicated blocks we anticipate capex turn of 1.5 to 2x. Of course it depends on number of stages. For near future, we are looking at 1.5 to 2x on the capex turnaround.
Partial answer
High priority
Impact of capacity additions on opex and margins in FY27.
Asked by Shoubam Agarwal, Burman Capital
Management explained cost drivers but did not quantify margin impact or give a clear outlook.
no specific margin guidancedeferred to future
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Question
Your opex costs have gone up 43% YoY and 13% QoQ. What is the largest driver? Should we expect opex to remain at this level and margins come under pressure in FY27?
Management (not specified)
We have operationalized additional 440 kl at Atali plus 250 kl at lease site, almost 700 kl from FY27 Q1. That's a 70% increase. Man hours increased 50-60%. As ramp up happens, revenue increase will come.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| CDMO Q4 revenue 155 cr, FY26 276 cr | ₹155 cr | ₹583 cr | Understated vs filing |
| CDMO FY26 revenue 276 cr | ₹276 cr | ₹583 cr | Understated vs filing |
| Xanthine Q4 revenue 227 cr | ₹227 cr | ₹583 cr | Understated vs filing |
| Xanthine FY26 revenue 792 cr | ₹792 cr | ₹583 cr | Overstated vs filing |
| API FY25 revenue ~770 cr, to surpass in FY27 | ₹770 cr | ₹583 cr | Overstated vs filing |
| Dedicated block potential revenue 250-300 cr | ₹250 cr | ₹583 cr | Understated vs filing |
| Xanthine new capacity revenue potential beyond 1,000 cr | ₹1,000 cr | ₹583 cr | Overstated vs filing |
| CDMO line of sight close to $100 million | 100 | 583 | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.