Aarti Pharmalabs Limited reported a 35.9% decline in its consolidated net profit for FY26 to ₹1,747 million, impacted by fair value losses on foreign exchange derivative contracts and new labour codes. Total revenue from operations for FY26 stood at ₹18,194 million, a decrease of 14% from ₹21,151 million in FY25. Despite the annual decline, the company’s management has provided a positive outlook, targeting a revenue and EBITDA growth of 15% to 18% over the next three to four years.

Financial Performance for FY26

For the full year FY26, the company reported a consolidated net profit of ₹1,747 million, compared to ₹2,724 million in FY25. Total revenue from operations stood at ₹18,194 million, down from ₹21,151 million in the previous year. The decline in annual performance was attributed to the impact of new labour codes and the recognition of fair value losses on a foreign exchange derivative contract. The company noted that Ganesh Polychem Limited became a joint venture effective April 1, 2025, making current period consolidated figures not directly comparable with previous periods.

Q4 Consolidated Performance

In the quarter ended March 31, 2026, consolidated net profit stood at ₹611 million, a decrease of 30.8% from ₹883 million in the corresponding quarter of the previous year. Revenue from operations for Q4 FY26 was ₹5,826 million, compared to ₹5,638 million in Q4 FY25. The company noted significant expenses related to exceptional items and foreign exchange fluctuations during the quarter.

The following table summarises the consolidated financial performance across key metrics:

Q4 Standalone Performance

On a standalone basis, Q4 results reflected a similar trend of year-on-year pressure. Standalone net profit for Q4 came in at ₹620 million, compared to ₹888 million in the same period last year. Revenue stood at ₹5,797 million versus ₹5,296 million in the corresponding quarter. EBITDA declined to ₹1,341 million from ₹1,653 million year-on-year, with the EBITDA margin contracting to 23.13% from 31.21% in the prior-year quarter.

Management Guidance and Business Outlook

During the earnings conference call held on May 26, 2026, management stated that the company is targeting 15% to 18% growth in both revenue and EBITDA over the next three to four years. For FY27, the CDMO/CMO business is expected to lead growth with a projected sales increase of 40% to 50% per annum. The company invested approximately ₹400 crore in capital expenditure during FY26 and plans to maintain a similar level of spending for FY27. This includes ongoing Xanthine expansion, debottlenecking at Tarapur Unit-4, and a possible new production block at Atali.

The Xanthine derivative segment recorded its highest ever quarterly revenue in Q4 FY26, contributing 43% of turnover. The CDMO/CMO segment also achieved its highest quarterly revenue of ₹155 crore in Q4 FY26, with full-year revenue growth of 32% year-on-year. Management highlighted that the Atali facility is now largely past startup issues, with Phase 1 expected to become fully operational by the end of the current quarter.

Key Board Decisions

The Board of Directors approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. Additionally, the Board recommended a final dividend of ₹2 per equity share of face value ₹5 each for FY26, subject to shareholder approval at the upcoming Annual General Meeting. The company also re-appointed Smt. Ketki D. Visariya as Cost Auditor and Manish Modi & Associates as Internal Auditor for FY26-27.

Aarti Pharmalabs Limited has uploaded the audio recording of its earnings conference call discussing the audited financial results for the fourth quarter and financial year ended March 31, 2026. The recording is now available on the company's website, providing access to the management's commentary on the performance for Q4FY26. This disclosure was made in accordance with Regulation 30 of the SEBI (LODR) Regulations, 2015.

The conference call was initially scheduled for May 26, 2026, to review the company's financial outcomes for the period. Key executives, including the Chairman, Vice Chairperson and Managing Director, and the Chief Financial Officer, had participated in the discussion to address investor and analyst queries regarding the quarterly and annual performance.

Accessing the Recording

Stakeholders who missed the live event or wish to revisit the discussion can now access the audio file online. The company has provided a direct link to the recording on its official portal.

For further details, participants may refer to the company's official communication or contact the investor relations cell.