Aarti Drugs Limited — Investor Meet, 25-07-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Aarti Drugs' Q1 FY26 revenues grew 6% YoY to INR591 Cr, with API up 5% and Formulations up 14%. Gross margins improved to 36.8%. Lower capacity utilization impacted EBITDA margins (12.6%), but management expects 15-16% by FY27.

Key drivers include Sayakha plant (backward integration) starting production and Tarapur Salicylic Acid ramp-up. USFDA and UK MHRA approvals are set to open regulated markets for API and Formulations, boosting growth from FY27. The company plans INR150-200 Cr capex for FY26, largely for expansion, and targets a 15% volume CAGR. Net debt of INR597 Cr remains manageable. Management is confident about future growth and margin expansion.