Aarti Drugs, the diversified pharmaceutical and specialty chemicals company, has announced its audited financial results for the quarter and nine months ended December 31, 2025, reporting steady revenue growth and a sharp rise in profits.

 

Total revenue rose 8% YoY to Rs. 602.9 crore from Rs. 557.1 crore in Q3 FY25. EBITDA stood at Rs. 56.3 crore, down 10% YoY, with margins at 9.3%. Profit after tax (PAT) jumped 58% YoY to Rs. 40.5 crore, with a PAT margin of 6.7%.

 

On nine-month performance, the company's revenue grew 8% YoY to Rs. 1,846.6 crore. EBITDA rose 9% YoY to Rs. 215.0 crore, with an 11.6% margin. PAT surged 49% YoY to Rs. 139.7 crore, translating into a 7.6% margin.

 

On segmental performance, API revenues were largely stable at Rs. 454.3 crore for Q3 FY26, down 1% YoY. Formulations grew sharply 59% YoY to Rs. 76.4 crore, driven by exports. Specialty chemicals and intermediates also recorded robust growth of 51% and 34% YoY, respectively.

 

Standalone business contributed 88% to consolidated revenue, with domestic sales flat YoY and export sales up 6%.

 

API sales saw significant contributions from antibiotics (35.1%), anti-protozoal (19.8%), anti-inflammatory (12.9%), anti-diabetic (16.6%), and antifungal (12.2%) categories.

 

Formulation revenue rose 58% YoY to Rs. 76.6 crore in Q3 FY26, with exports making up 67% of sales.

 

CFO & COO Adhish Patil commented:

“During the third quarter of FY26, Aarti Drugs delivered a steady performance, supported by healthy traction in the domestic market and strong growth in the export formulations segment, which performed particularly well and contributed positively to overall margins. 

 

"Total revenue for Q3FY26 stood at Rs. 602.9 crore, growing 8% year-on-year, with EBITDA of Rs. 56.3 crore with margins at 9.3%. While EBITDA saw a year-on-year contraction of 10%—largely due to transient market dynamics and the initial absorption of commissioning costs for new facilities during Q3FY26, January sales have shown encouraging momentum, with improved traction, indicating a positive trend for the coming quarters.

 

"The cornerstone of our Q3 performance remains in the successful operationalization of our growth projects. Our state-of-the-art backward integration plant in Sayakha for methyl amines, is currently in its initial scale-up phase. During its very first quarter of operations, it achieved 30% capacity utilization, and we are confident in our ability to ramp this up to 50% by March or April 2026. Critically, this facility is currently fulfilling 10–15% of our captive Metformin requirements, and we expect to be 100% self-reliant for this key intermediate within the next 6 to 8 months."

 

He added: "Our Salicylic Acid plant in Tarapur has hit a significant milestone, scaling to above ~300 tonnes per month recently. This marks a pivotal shift from import dependence to a self-sustained domestic supply chain. Furthermore, the downstream Salicylates line is currently under implementation, which we believe will transform this segment into a primary value driver for the company in the coming years.

 

"On the regulatory front, certification and approval processes are progressing as planned. Audit observations are currently under review, and inspections have been conducted at one of the facilities as part of ongoing regulatory initiatives, including preparations for European approvals.

 

"After several quarters of realization pressure, we have reached an inflection point aided by stable prices and volume momentum picking up. Overall, the Company remains focused on operational efficiency, margin improvement, and capacity ramp-up, while maintaining compliance with regulatory standards and capital discipline.”