Aarti Pharmalabs Ltd(AARTIPHARM)

NSE: AARTIPHARMBSE: 543748

₹ 823.1-0.72%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 7,464 crNext results: 28 Oct 2026Website: www.aartipharmalabs.comUpdated: 24 Oct 2026

About

Aarti Pharmalabs Ltd is an Indian specialty pharmaceutical manufacturer producing Active Pharmaceutical Ingredients (APIs), Xanthine derivatives, and Contract Development and Manufacturing (CDMO) services. In FY26 the company reported standalone revenue of INR 17,976 Mn, with three USFDA-approved manufacturing units across its sites. The company holds an estimated 15 - 20% global market share in Xanthine derivatives and is expanding its CDMO capabilities through a new greenfield facility at Atali.^[1][2][3]

Business segments

API/Intermediates: 57% of Q1 FY27 revenue; generic and specialty APIs sold to regulated and emerging markets.^[2]
Xanthine Derivatives: 30% of Q1 FY27 revenue; caffeine and related compounds primarily for global beverage and pharmaceutical customers.^[2]
CDMO/CMO: 7% of Q1 FY27 revenue, up from 16.5% of FY25 full-year revenue to 29.1% of FY26 full-year revenue; contract manufacturing for large pharma customers.^[2][1]
Geography split in Q1 FY27: International 60%, Domestic 40%.^[2]

Products and regulatory filings

61 APIs commercialized as of Q1 FY27; 11 new APIs under development at the same date.^[2]
60 US DMF approvals and 44 CEP approvals held as of Q1 FY27.^[2]
R&D spend was 7.4% of API, Intermediates and CDMO sales in FY26, equivalent to INR 65 Cr in absolute terms.^[2]
R&D investment in TIDES (Peptides and Oligonucleotides) initiated in FY27 to expand portfolio capabilities.^[2][1]

Manufacturing operations

3 USFDA-approved manufacturing units as of Q1 FY27.^[2]
Total reactor capacity (API/CDMO) exceeded 1,500 KL as of Q1 FY27, up from approximately 1,100 KL before Atali Phase 1 came online.^[2][4]
Xanthine installed capacity reached 9,600+ MTPA in Q1 FY27 after Unit 5 Tarapur inauguration added 3,600 TPA; phased ramp-up underway through FY27 end.^[2]
Atali greenfield Phase 1 (~450 KL reactor capacity) inaugurated September 2025; cleared customer audits and largely operational by Q1 FY27.^[5][1]
Unit 4 Steroid API block completed a 6-week debottlenecking shutdown in Q1 FY27, unlocking a one-third capacity increase for oncology and HPAPI products.^[2]

Key operating numbers

Standalone Q1 FY27 operational revenue: INR 5,346 Mn, up 42.4% YoY; Q1 FY27 revenue declined 7.8% QoQ due to the Unit 4 steroid block shutdown.^[2]
Standalone EBITDA margin: 24.82% in Q1 FY27, +169 bps QoQ vs Q4 FY26 (23.13%), and -52 bps YoY vs Q1 FY26 (25.34%).^[2]
CDMO sales grew from INR 208 Cr in FY25 to INR 276 Cr in FY26; highest-ever quarterly CDMO revenue of INR 155 Cr recorded in Q4 FY26.^[1]
FY26 standalone revenue grew 1.5% YoY to INR 17,976 Mn; EBITDA declined 4.8% YoY and PAT declined 31.5% YoY on a standalone basis.^[1]
Net debt to equity: 0.32x as of FY26; ROCE: 9.8% in FY26.^[1]

Customers and distribution

CDMO segment: 22 active customers on 57 active projects in Q1 FY27, of which 37 are at commercial stage and 20 under development.^[2]
Xanthine sales mix in Q1 FY27: beverages 74% of volumes; international customers 79% of Xanthine revenue.^[2]
API regulated-market mix in H1 FY26: 52% regulated markets, 37% rest-of-world, 11% non-regulated.^[5]
On-ground CDMO sales presence established in Europe (representative office) and being expanded to the USA as of Q1 FY27.^[2][5]

Expansion and capex

Atali Block 2: INR 149 Cr investment approved, ~405 KL capacity, dedicated for CDMO/CMO projects; groundbreaking planned Q3 FY27, commercialization targeted H2 FY28.^[2]
Atali site is scalable up to 8 - 10x Phase 1 capacity for future CDMO and intermediate expansion.^[5]
FY27 capex expected at approximately INR 400 Cr, similar to FY26 actual capex of ~INR 400 Cr.^[2][1]
Xanthine capacity target: 85 - 90% utilization of 9,000 MTPA by FY28; expanded capacity expected to lift global Xanthine market share from 15 - 20% to 20 - 25%.^[4]

Recent developments

Unit 5 Tarapur Xanthine plant inaugurated in Q1 FY27, adding 3,600 TPA and bringing total Xanthine capacity to 9,600+ MTPA.^[2]
China withdrew its 13% export rebate on caffeine in Q3 FY26; management estimated this could push global caffeine prices up 8 - 10%, with spot markets showing ~5% increase from lows at the time.^[4]
Geopolitical tensions kept raw material prices elevated through FY26 and into Q1 FY27, with early signs of supply-chain easing noted by management in Q1 FY27.^[2][1]
Company targeting 15 - 18% revenue and EBITDA CAGR on a standalone basis over the next 3 - 4 years from FY27.^[2][1]

Market Cap

₹7,464 Cr

High / Low

₹1,002 / 584

Stock P/E

34.9

Price / Book

3.5

Book Value

₹234

EPS

₹19.3

No. of Shares

9.07 Cr

ROCE

10.7%

ROE

8.5%

OPM

15.0%

Debt / Equity

0.32

Sales

₹1,819 Cr

Net Profit

₹175 Cr

Promoter holding

42.9%

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