Aarti Pharmalabs Limited has fixed Tuesday, September 15, 2026, as the record date for the payment of its final dividend for the financial year ending March 31, 2026 (FY26). The company confirmed that shareholders whose names appear in the Register of Members on this date will be eligible for the payout, provided it receives approval from shareholders at the ensuing Annual General Meeting.

The final dividend was recommended by the Board of Directors during its meeting held on May 25, 2026. The recommendation stands at 40%, translating to ₹2.00 per equity share with a face value of ₹5 each. If approved, the dividend will be paid on or before Tuesday, October 20, 2026.

Key Dates and Details

The disclosure was made in compliance with Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company communicated the details to both the Bombay Stock Exchange and the National Stock Exchange of India Limited.

Jeevan Bhargav Mondkar, Company Secretary and Legal Head of Aarti Pharma Labs, signed the intimation letter addressed to the listing departments of both exchanges.

Aarti Pharmalabs reported a robust start to FY27, with standalone net profit after tax (PAT) rising 49% year-on-year to ₹71 crore in Q1FY27, compared to ₹48 crore in the corresponding period last year. Revenue climbed 42% to ₹535 crore from ₹375 crore, while EBITDA grew 40% to ₹133 crore against ₹95 crore previously. The strong financial performance was underpinned by record quarterly sales in the xanthine derivatives vertical and improved utilization across existing manufacturing blocks.

Financial Performance

The company’s profitability expanded alongside top-line growth, reflecting effective cost management and favorable pricing dynamics in key segments. The gross margin reached approximately 56% during the quarter, aided by elevated realization rates in the xanthine business. However, management noted that these margins are subject to normalization as raw material costs stabilize and spot market prices adjust from peak levels observed during recent geopolitical tensions.

Segment Breakdown

Xanthine derivatives emerged as the primary growth engine, contributing 57% of total turnover. This segment recorded its highest-ever quarterly sales, with volume growth estimated at 25% year-on-year. The revenue split within this vertical was heavily skewed towards exports, which accounted for 79% of sales, while domestic sales constituted 21%. The API and intermediates business contributed 30% of turnover, though management highlighted ongoing pricing pressures in existing molecules. To counter this, the company initiated process intensification projects aimed at cost reduction. The CDMO/CMO segment contributed 7% of revenue, with 37 projects currently in commercial stages out of 57 active projects.

Capacity Expansion and Capex

Aarti Pharmalabs completed several strategic expansion projects in Q1FY27. The debottlenecking of the steroid block at Unit 4 in Tarapur enhanced steroidal capacity by 33%. Additionally, new capacity for xanthine derivatives has been commercialized, with trial production ongoing. The company expects to reach over 80% capacity utilization in this segment by FY28.

Looking ahead, both phases of the Atali Block 1 facility, featuring 440 kL reactor capacity, will become fully operational in Q2FY27. This site is primarily engaged in manufacturing CDMO/CMO intermediate steps. Furthermore, the board approved a capex of ₹149 crore for Block 2 at Atali, with groundbreaking expected in Q3FY27. This dedicated block aims to support specific high-volume CDMO projects, aligning with the company’s long-term goal of achieving ₹1,000 crore in CDMO/CMO revenue.

Guidance and Outlook

Management guided for full-year standalone EBITDA margins between 22% and 25% for FY27. While Q1 margins were elevated due to temporary price spikes in raw materials passed through to customers, the company anticipates stabilization in subsequent quarters. For the xanthine segment, annual revenue is projected to land in the range of ₹900 crore to ₹1,100 crore, mitigating potential price declines through increased volume production. The CDMO segment is expected to remain heavy in the second half of the fiscal year, with management targeting 40-50% growth for the segment overall.

What the Numbers Show

The divergence between the 42% revenue growth and 49% net profit growth indicates significant operating leverage in Q1FY27. With EBITDA growing at 40%, the expansion in net profit suggests that fixed costs were effectively spread over a larger revenue base, or that other income/tax efficiencies contributed to the bottom line. Notably, the xanthine segment’s dominance (57% of revenue) contrasts with its lower gross margin profile compared to the high-margin CDMO business (7% of revenue). As the company scales its CDMO operations via the Atali facility, the shift in revenue mix towards higher-margin complex manufacturing could structurally improve blended margins in future quarters, provided volume ramp-ups proceed as planned.