Aarti Pharmalabs Limited has announced a key leadership appointment in its research and development division. The pharmaceutical company has appointed Dr. Rakeshwar Bandichhor as Chief Scientific Officer - R&D and Senior Management Personnel, effective January 01, 2026.

Board Approval and Regulatory Compliance

The appointment was approved by the Board of Directors based on the recommendation of the Nomination and Remuneration Committee. The company made this disclosure pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Appointment Details

The key details of the appointment are structured as follows:

Professional Background and Qualifications

Dr. Bandichhor brings substantial expertise to his new role, with 25 years of rich experience in API-R&D and Process Chemistry. His academic credentials include:

• M.Sc. (Chemistry) from University of Lucknow
• M.Sc. (Tech) in Pharmaceutical Chemistry from University of Lucknow
• Ph.D. in Chemistry from CDRI, University of Lucknow
• Additional studies at University of Regensburg, Germany through a German fellowship program

International Training and Experience

The new Chief Scientific Officer has undergone extensive postdoctoral training at three prestigious international institutions:

• University of Regensburg, Germany
• University of Pennsylvania, USA
• Texas A&M University, College Station, USA

Prior to joining Aarti Pharmalabs Limited, Dr. Bandichhor was associated with Dr. Reddy's Laboratories in Hyderabad, where he gained valuable industry experience in pharmaceutical research and development.

Strategic Significance

This appointment reflects the company's commitment to strengthening its research and development capabilities. With Dr. Bandichhor's extensive experience in API-R&D and Process Chemistry, combined with his international exposure and academic background, the company is positioned to enhance its scientific research initiatives and innovation capabilities in the pharmaceutical sector.

Aarti Pharma Labs , a prominent player in the pharmaceutical industry, has reported a robust 11% year-on-year revenue growth for the second quarter of fiscal year 2026 (Q2FY26). The company's standalone revenue reached INR 417.00 crores, up from INR 377.00 crores in the same period last year. However, the EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a decline to INR 75.00 crores from INR 85.00 crores year-on-year.

Financial Performance Highlights

The company's profit after tax (PAT) for Q2FY26 stood at INR 31.00 crores, compared to INR 48.00 crores in the corresponding quarter of the previous year. This decline in profitability was partly attributed to forex losses of INR 7.40 crores during the quarter.

Segment-wise Performance

Aarti Pharma Labs operates across three key verticals:

1. Xanthine Derivatives: Contributed 51% to the turnover in Q2FY26.

   • 71% of volume from beverage customers
   • 29% from other segments
   • Geographical split: 59% exports, 41% domestic sales

2. API and Intermediates: Accounted for 39% of the turnover.

   • 55% from regulated markets
   • 31% from rest of the world
   • 14% from non-regulated markets

3. CDMO-CMO Services: Contributed 10% to the revenue for the quarter.

   • Currently working with 21 customers
   • 59 active projects, including 39 in commercial stage

Operational Updates

• The company inaugurated its Atali plant in September, which is expected to be fully operational in 2-3 quarters.
• Xanthine expansion is progressing as planned, with current operations at around 500 metric tons per month.
• The company expects to reach 9,000 metric tons per annum installed capacity for Xanthine by the end of this financial year.

Revised Guidance and Future Outlook

Aarti Pharma Labs has revised its EBITDA growth guidance for FY26 to 8-12% year-on-year. The company remains confident in its long-term business strategy, focusing on growth while maintaining financial discipline.

The CDMO-CMO business is expected to exceed the earlier projected 30-40% growth, driven by 39 commercial projects across 21 customers. This segment is poised for significant expansion, with the company exploring opportunities in mid-size peptides and liquid peptide work.

Management Commentary

Rashesh Gogri, Chairman of Aarti Pharma Labs, commented on the results: "We are confident that our long-term customer relationships and strong technical capabilities will continue serving as pillars of our progress. The CDMO-CMO segment is showing promising growth, and we are taking steps to increase our reach within the industry."

The management also highlighted ongoing efforts to optimize operations, including debottlenecking initiatives in the Xanthine segment and strategic expansions in the anti-cancer API segment.

As Aarti Pharma Labs navigates through short-term challenges in its API business, the company remains focused on its long-term growth strategy, leveraging its diversified product portfolio and expanding capacities to capture emerging opportunities in the pharmaceutical market.