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Revenue
₹386 Cr
verified against source
Revenue YoY
-30.5%
reported change
EBITDA
₹95 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Aarti Pharmalabs reported Q1 FY26 consolidated revenue of ₹386 crore, down ~30% YoY due to Ganesh Polychem deconsolidation and a planned shutdown. However, EBITDA margin expanded to 24.6% (+720bps YoY) driven by a favorable product mix shift toward regulated and beverage markets. Standalone EBITDA grew 14% YoY to ₹95 crore, while PAT rose 9% to ₹51 crore. Management maintained its 12-15% standalone EBITDA growth guidance for FY26, supported by CDMO pipeline strength and brownfield capacity additions. The CDMO segment targets 35-40% growth this year, with a long-term aspiration of ₹800-1,000 crore revenue in 3-4 years. Key risks include lumpy CDMO revenue recognition and potential US tariff policy changes, though current pharma exemptions provide near-term comfort.
Colored figures show movement against the previous available record.
Guidance to track
- Management reiterated standalone EBITDA growth guidance of 12-15% for FY26, supported by margin expansion and CDMO ramp-up.
- CDMO segment expected to grow 35-40% YoY in FY26, driven by a strong order book and new capacities at Atali.
- Brownfield expansion from 5,000 to 9,000 MT per annum will be commissioned in phases during H2 FY26.
- Mechanical completion of Phase 1 at Atali is done; commercial production will commence towards end of Q2 FY26, with full ramp-up by end of FY26.
Risks flagged
- While current tariffs exempt pharma, potential changes under Section 232 could impact API exports; management noted contracts are largely FOB but impact unclear.
- CDMO revenue is back-end loaded and lumpy due to multi-stage manufacturing; Q1 performance may not be indicative of full-year trajectory.
- GPL plant underwent shutdown for modifications; restart in July may delay contribution to profitability in FY26.
- Atali greenfield plant will have higher opex initially; full utilization may take until end of FY26, pressuring near-term margins.
Key quotes
- Even though the revenue has been slightly dip in this quarter year on year, the EBITDA and the PAT have grown reasonably well.
- We are the only backward integrated independent of China source from India who can offer them Zanthin products at a reasonable price.
- In three four years, we want all segments to grow up to 100 million or thousand crore, whichever reaches faster.
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