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A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
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Revenue
₹652.9 Cr
verified against source
Revenue YoY
9%
reported change
EBITDA
₹84.4 Cr
latest reported figure
Source
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record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
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% which offset weak domestic antibiotic demand. EBITDA margin expanded 150 bps to 12.9%, aided by raw material price stability and early benefits from the new Saiaka methylamines plant. The company guided for high single-digit value growth in H2 and targets 15% EBITDA margin by end of FY27, supported by ramp-up of Saiaka and salicylic acid plants. Key risks include delayed salicylic acid ramp-up and continued domestic demand softness.
Colored figures show movement against the previous available record.
Guidance to track
- Management aims for high single-digit value growth in H2 FY26, driven by export demand and new capacities.
- Targeting 15% EBITDA margin on a consolidated basis by H2 FY27, driven by ramp-up of new plants and cost efficiencies.
- If salicylic acid ramp-up succeeds, management expects 15-20% revenue growth in FY27.
- Total capex for FY26 estimated at ₹150-200 crore, with similar levels expected in FY27 for further expansions.
Risks flagged
- The salicylic acid plant is still in stabilization; delays in achieving 800 tons/month breakeven could pressure margins.
- Domestic demand, especially in antibiotics, remained soft with slight degrowth; recovery expected only from Q4.
- Management acknowledged potential price erosion as new methylamine capacity comes online, which could impact margins.
- Voluntary closure of chlorosulfonation process at Tarapur due to gas leak; though no material impact currently, regulatory delays could affect operations.
Key quotes
- We are quite confident that once we get every all these things in order, sequentially our margin should steadily keep on increasing and our ultimate target should be somewhere between 15 to 16%.
- The quality parameters are met. Fortunately now the product is widely accepted in the market. We have sold to majority of the salicylic acid customers in India.
- If everything goes well then we can try for 15 to 20% growth for next year.
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