Aarti Drugs Limited , a prominent player in the Indian pharmaceutical sector, has reported a robust performance for the second quarter of fiscal year 2026. The company's financial results showcase significant growth across key metrics, highlighting its strong market position and operational efficiency.

Financial Performance

Aarti Drugs reported quarterly revenue of ₹653.00 crores, representing a 9% year-over-year growth. The company's EBITDA increased by 23% to ₹84.00 crores, with margins improving to 12.90%. This performance demonstrates the company's ability to enhance profitability while expanding its revenue base.

Operational Highlights and Strategic Initiatives

The company has made significant strides in enhancing its operational capabilities:

1. Commissioning of Sayakha Amines Plant: Aarti Drugs has commissioned its Sayakha Amines plant, a strategic move to boost self-sufficiency for Metformin production.

2. Tarapur Salicylic Acid Production: The company expects its Tarapur Salicylic Acid production line to reach a monthly capacity of 500 tonnes by Q4FY26, indicating a substantial increase in production capabilities.

3. Growth Strategy: Aarti Drugs is targeting sustained double-digit growth through backward integration and export expansion. The company plans to strengthen its U.S. and EU regulatory approvals to drive high-value API exports and margin expansion over FY27-FY29.

Capital Restructuring

In a move to optimize its capital structure, Aarti Drugs completed a buyback of 6.65 lakh equity shares at ₹900.00 per share in September. This strategic decision resulted in a reduction of the company's paid-up share capital to ₹91.27 crore.

Looking Ahead

As Aarti Drugs continues to demonstrate strong financial growth and operational expansion, investors and industry observers will be keen to see if the company can maintain this momentum in the coming quarters. The pharmaceutical sector remains dynamic, with opportunities for companies that can innovate, operate efficiently, and navigate challenges effectively.

Aarti Drugs' Q2 results and strategic initiatives position it as a company to watch in the Indian pharmaceutical space, reflecting its resilience and growth potential in a competitive market environment.

Aarti Drugs Limited , a prominent pharmaceutical company, has announced the temporary closure of its chlorosulfonation process at the PTSCL section in its T-150 unit located in Tarapur, Maharashtra. This decision comes in response to a Voluntary Closure Direction issued by the Maharashtra Pollution Control Board (MPCB) following an incident of hydrogen chloride (HCl) gas leakage on September 8, 2025.

Incident Details

The HCl gas leak occurred through the manhole of a scrubbing tank during routine operations at the facility. The company reported that no injuries or casualties resulted from this incident. As a precautionary measure and in compliance with the MPCB directive, Aarti Drugs will cease the chlorosulfonation process after completing the in-process batches.

Regulatory Compliance and Safety Measures

The MPCB issued the Voluntary Closure Direction under Section 33A of the Water (Prevention and Control of Pollution) Act, 1974, and Section 31A of the Air (Prevention and Control of Pollution) Act, 1981. In response, Aarti Drugs has committed to conducting a comprehensive safety audit and obtaining the necessary approvals from both the MPCB and the Directorate of Industrial Safety and Health (DISH) before resuming operations of the affected process.

Impact on Operations and Financials

Despite the closure of the chlorosulfonation process, Aarti Drugs has assured stakeholders that there will be no significant financial or material impact on the company's operations. The company stated:

• Sufficient inventory of the affected product is maintained.
• Alternative suppliers can be sourced if needed.
• Manufacturing of other products at the T-150 unit will continue uninterrupted.

Company's Response

Rushikesh Deole, Company Secretary & Compliance Officer of Aarti Drugs Limited, stated, "The company will conduct the safety audit shortly and obtain the required approvals from MPCB and Directorate of Industrial Safety and Health (DISH)." He also emphasized that the company would keep the stock exchanges updated on any further developments.

Conclusion

While the incident has led to a temporary halt in the chlorosulfonation process, Aarti Drugs' proactive approach in complying with regulatory directives and prioritizing safety measures demonstrates its commitment to responsible operations. The company's assurance of minimal financial impact and continued production of other products at the facility suggests that it is well-positioned to manage this temporary setback.