Aarti Pharmalabs Limited inaugurated a new state-of-the-art manufacturing block at Tarapur Unit 5, Maharashtra, on June 30, 2026, to expand its production capabilities. The facility adds 3600 TPA capacity for Xanthine derivatives manufacturing, increasing the company's total capacity to 9600 TPA. This expansion positions Aarti Pharmalabs among the top three global manufacturers of Xanthine derivatives.

The company has successfully obtained all necessary permissions and approvals to commence operations at the new site. Trial production has already been initiated, and management plans to ramp up the facility for optimum utilization over the next few quarters.

Rashesh Gogri, Chairman of Aarti Pharmalabs, highlighted the significance of this development, stating that it represents a major leap forward for the company. He emphasized that the expanded capabilities will strengthen the company's ability to serve its business partners effectively.

Capacity Expansion Details

The new block is located at Tarapur, MIDC, Plot No. L-28/29/99. The following table outlines the capacity changes:

The inauguration event was attended by the senior management team and dedicated members of the Aarti Pharmalabs team. The new facility underscores the company's commitment to growth and capability development to meet the needs of large customers.

About Aarti Pharmalabs Limited

Aarti Pharmalabs Limited is a prominent Indian pharmaceutical and nutraceutical manufacturer with a global presence. The company specializes in offering comprehensive CDMO/CMO services for small molecule drug substances, catering to clinical and commercial phase projects for innovator pharma companies. Its dedicated facilities handle HPAPIs, corticosteroids, cytotoxic, and oncology products. Additionally, it offers generic APIs and intermediates.

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.