Aarti Drugs FY26 PAT Rises 16% to Rs 194.9 Crore
Aarti Drugs Limited announced its audited financial results for the quarter and year ended March 31, 2026. Full-year FY26 PAT increased 16% year-on-year to Rs 194.9 crore, with revenue growing 7% to Rs 2,567.7 crore. However, Q4 FY26 PAT declined 12% year-on-year to Rs 55.3 crore despite a 6% rise in revenue to Rs 721.1 crore. The Board re-appointed M/s GMVP & Associates LLP as Cost Auditor and M/s Raman S. Shah & Co. as Internal Auditor, and re-constituted the Risk Management Committee.
*this image is generated using AI for illustrative purposes only.
Aarti Drugs Limited , a Mumbai-based diversified and fully integrated pharmaceutical company, announced its audited financial results for the quarter and financial year ended 31st March 2026. The company delivered a mixed performance in Q4 FY26, with revenue growing 6% year-on-year even as profitability faced headwinds, while the full-year picture showed meaningful improvement in earnings. The Board of Directors also approved the re-appointment of cost and internal auditors and re-constituted the Risk Management Committee.
Consolidated Financial Performance
The following table presents the key consolidated financial metrics for Q4 FY26, Q4 FY25, Q3 FY26, FY26, and FY25:
| Metric: | Q4 FY26 | Q4 FY25 | YoY | Q3 FY26 | QoQ | FY26 | FY25 | YoY |
|---|---|---|---|---|---|---|---|---|
| Revenue (Rs. Crore): | 721.1 | 678.6 | 6% | 602.9 | 20% | 2,567.7 | 2,403.4 | 7% |
| Gross Profit (Rs. Crore): | 270.7 | 241.7 | 12% | 216.3 | 25% | 949.0 | 861.3 | 10% |
| EBITDA (Rs. Crore): | 96.6 | 95.2 | 1% | 56.3 | 72% | 311.6 | 303.5 | 3% |
| EBITDA Margin: | 13.4% | 14.0% | -60 bps | 9.3% | 410 bps | 12.1% | 12.6% | -50 bps |
| PBT (Rs. Crore): | 70.4 | 71.1 | -1% | 29.0 | 142% | 210.9 | 211.8 | 0% |
| PAT (Rs. Crore): | 55.3 | 62.8 | -12% | 40.5 | 36% | 194.9 | 168.2 | 16% |
| PAT Margin: | 7.7% | 9.2% | -160 bps | 6.7% | 100 bps | 7.6% | 7.0% | 60 bps |
| EPS (₹): | 6.05 | 6.90 | — | 4.44 | — | 21.36 | 18.44 | — |
For Q4 FY26, revenue stood at Rs. 721.1 crore, up 6% year-on-year from Rs. 678.6 crore in Q4 FY25, and up 20% sequentially from Rs. 602.9 crore in Q3 FY26. EBITDA was broadly flat year-on-year at Rs. 96.6 crore versus Rs. 95.2 crore in Q4 FY25, but surged 72% quarter-on-quarter from Rs. 56.3 crore in Q3 FY26. EBITDA margin stood at 13.4%, a contraction of 60 basis points year-on-year, though it expanded by 410 basis points sequentially. PAT for Q4 FY26 declined 12% year-on-year to Rs. 55.3 crore from Rs. 62.8 crore in Q4 FY25, while rising 36% quarter-on-quarter from Rs. 40.5 crore in Q3 FY26, with PAT margin at 7.7%.
For the full year FY26, revenue grew 7% year-on-year to Rs. 2,567.7 crore from Rs. 2,403.4 crore in FY25. Full-year EBITDA rose 3% to Rs. 311.6 crore, with EBITDA margin at 12.1%, a compression of 50 basis points year-on-year. Notably, full-year PAT improved 16% year-on-year to Rs. 194.9 crore from Rs. 168.2 crore in FY25, with PAT margin expanding 60 basis points to 7.6%.
Segmental Performance
The company's segmental revenue breakdown highlights divergent growth trends across its business verticals:
| Segment (Rs. Crore): | Q4 FY26 | Q4 FY25 | YoY | Q3 FY26 | QoQ | FY26 | FY25 | YoY |
|---|---|---|---|---|---|---|---|---|
| API: | 551.0 | 553.1 | 0% | 454.3 | 21% | 1,979.4 | 1,938.4 | 2% |
| Formulations: | 92.0 | 64.8 | 42% | 76.4 | 20% | 331.2 | 248.9 | 33% |
| Specialty Chemicals: | 56.8 | 39.0 | 46% | 51.1 | 11% | 178.3 | 130.0 | 37% |
| Intermediates & Others: | 20.5 | 19.8 | 3% | 19.9 | 3% | 76.4 | 69.4 | 10% |
The API segment, which remains the largest contributor, was flat year-on-year in Q4 FY26 at Rs. 551.0 crore but grew 2% for the full year to Rs. 1,979.4 crore. Formulations delivered strong growth of 42% year-on-year in Q4 FY26 to Rs. 92.0 crore, and 33% for FY26 to Rs. 331.2 crore. On a standalone basis, formulation revenue stood at Rs. 91.3 crore in Q4 FY26 compared to Rs. 64.8 crore in Q4 FY25, up 41% year-on-year, with exports contributing 69% to this revenue. For FY26, standalone formulation revenue was Rs. 330.5 crore compared to Rs. 284.9 crore in FY25, up 16%, with exports accounting for 65% of total formulation sales. Specialty Chemicals also posted robust growth of 46% year-on-year in Q4 FY26 to Rs. 56.8 crore, and 37% for the full year to Rs. 178.3 crore.
Board Decisions
In its meeting held on May 15, 2026, the Board approved the re-appointment of M/s GMVP & Associates LLP as the Cost Auditor for the financial year ending March 31, 2027. The Board also re-appointed M/s Raman S. Shah & Co. as the Internal Auditor for a period of three consecutive financial years commencing from April 1, 2026. Additionally, the Board re-constituted the Risk Management Committee, including Shri Narendra J. Salvi as a member with immediate effect. The auditors issued an un-modified opinion on the annual audited standalone and consolidated financial results for the year ended March 31, 2026.
Historical Stock Returns for Aarti Drugs
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.53% | -0.93% | -3.71% | -6.95% | -18.65% | -49.93% |
Can Aarti Drugs sustain the strong 42% YoY growth momentum in its Formulations segment, particularly in export markets, given increasing competition from other Indian pharma players targeting similar geographies?
With the API segment remaining flat YoY in Q4 FY26, what strategic initiatives is Aarti Drugs likely to pursue to accelerate growth in its largest revenue contributor amid pricing pressures and China competition?
Given the EBITDA margin compression of 50 basis points for FY26 despite revenue growth, what cost optimization measures or product mix shifts could help the company recover margins in FY27?
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