Aarti Drugs Limited — PPTs, 19-07-2025: Investor Presentation

**Financial Highlights:**

Aarti Drugs' Q1 FY26 revenue grew 6% to ₹591 Cr. Profit After Tax soared 63% to ₹54 Cr. EBITDA rose 13% to ₹74 Cr (12.6% margin). Gross margins expanded to 36.8%, reflecting improved API demand and volume recovery.

**Strategic Initiatives & Growth Drivers:**

The company is executing its ₹150-200 Cr FY26 Capex. Trial production began at Sayakha greenfield for anti-diabetic backward integration, targeting margin improvement. The Tarapur Salicylic Acid plant aims for 1,600 tonnes/month by FY26 end, contributing from Q3.

**Business Developments:**

Its formulation subsidiary secured USFDA Oncology and UKMHRA OSD approvals, enabling global oncology registrations from FY27. New customer audits at Tarapur indicate expansion. Formulations are also extending commercial operations in LatAm and Africa.

**Market Position & Competitive Advantage:**

Aarti Drugs is well-positioned for opportunities from US tariffs on Chinese pharma, leveraging its USFDA-approved API facilities. Leadership in global/Indian API molecules, coupled with diversified segments and clients, strengthens its competitive edge.

**Investor Implications:**

Updates suggest positive growth potential and margin expansion via strategic capacity additions and backward integration. Investors should monitor the successful ramp-up of new facilities and how the company capitalizes on new export opportunities.