Aarti Drugs Ltd(AARTIDRUGS)

NSE: AARTIDRUGSBSE: 524348

₹ 379.05+1.35%refreshed 26 Oct, 01:44 pm ISTMarket cap: ₹ 3,460 crWebsite: www.aartidrugs.co.inUpdated: 24 Oct 2026

About

Aarti Drugs makes active pharmaceutical ingredients (APIs), pharmaceutical intermediates and speciality chemicals, with a portfolio of more than 50 APIs across antibiotic, antiprotozoal, anti-inflammatory, antidiabetic and antifungal therapies. It describes itself as among the world's leading manufacturers of Metformin, with installed capacity of over 1,450 TPM. It runs 14 manufacturing facilities and reported FY26 revenue of Rs 2,565.31 crore.^[1][2]

Business segments

Reported as a single API manufacturing segment in FY26: India revenue Rs 1,408.64 crore and out-of-India revenue Rs 851.74 crore.^[1]
API segment contributed 77% of FY26 consolidated sales, broadly flat versus 77.2% in FY25.^[3]
Formulations business, run through subsidiary Pinnacle, had FY26 revenue of Rs 330.5 crores, up 33% YoY.^[3]
Specialty Chemicals revenue was about Rs 82 crores in Q1 FY27, up 149% YoY, driven by new output from the Sayakha greenfield facility.^[4]

Products and portfolio

More than 50 APIs as of FY26, alongside a small range of specialised finished products.^[1]
Core products include Metformin, antibiotics and salicylic acid; speciality chemicals include methylamine derivatives and chlorosulfonation products.^[4]
In FY26 a dedicated oncology formulation facility at Baddi began commercial operations, and the first oncology product, Bicalutamide, was commercialised.^[1]
Management targets oncology contributing about 40% of formulations revenue over three years (stated Q3 FY26).^[5]
77 products under development or in the pipeline across APIs and finished dosages as of FY26.^[1]

Manufacturing operations

14 manufacturing facilities with a monthly capacity of 6,876 MT as of FY26.^[1]
Installed capacity rose to 82,512 MT in FY26 from 61,053 MT in FY25; FY26 production was 53,139 MT.^[1]
Speciality chemicals installed capacity was 34,308 MTPA as of FY26.^[1]
Pinnacle has installed formulation capacity of 3 billion tablets and 300 million capsules a year (FY26).^[1]
Sayakha (Gujarat) methylamine plant reached about 65% utilisation in Q1 FY27, producing about 3,500 tonnes, up from about 30-40% in Q3/Q4 FY26.^[4]
E-22 Tarapur plant is USFDA-approved with 2 main lines and 1 small line, supplying 4-5 products to EU markets only (Q1 FY27).^[4]
Tarapur salicylic acid facility was halted in Q4 FY26 because of losses from inadequate phenol recovery equipment; only 67 tonnes were produced in Q1 FY27.^[3]
The company is investing in captive solar power SPVs in Maharashtra and Gujarat (FY26).^[1]

Regulatory approvals

In FY26 the company received USFDA approval for its oncology facility, UK MHRA approval for its oral solid dosage facility, and EU GMP certification for its oncology and general capsule lines.^[1]
The Tarapur API facility was re-approved by the USFDA in FY26, and a Drug Master File for Metformin was filed in the US.^[1]
Received regulatory approval to market products in China in FY26.^[1]

Key operating numbers

Q1 FY27 revenue growth of 19% YoY came from about 16-17% aggregate API price growth and about 3.5% volume growth.^[4]
Formulation exports were 74% of formulation revenue in Q1 FY27 vs 69% in Q4 FY26 and 67% in Q3 FY26.^[4]
R&D spend was Rs 66 crores in FY26.^[4]
The company had 1,355 permanent employees as of March 31, 2026.^[1]

Customers and markets

Regulated markets contributed 73% of revenue in FY26, up from 66% in FY25.^[1]
Exports were 38% of consolidated revenue in FY26 vs 35% in FY25; the EU and US are targeted for the next phase of regulated-market growth.^[3]
Customers include pharmaceutical formulation companies, speciality chemical makers, and dyes and pigments manufacturers; Abbott named the company Business Partner of the Year and Best Vendor.^[1]
Products ship directly by air and sea, and distributor partnerships give access to smaller and regional markets.^[1]
US API supply from the E-22 Tarapur plant had not begun as of Q1 FY27; sample approvals were underway.^[4]

Expansion and capex

Sarigam Metformin capacity is being expanded from about 1,400 TPM to about 2,200 TPM, including a separate about 500 TPM USFDA-compliant block; completion expected about 10-12 months from Q1 FY27.^[4]
E-22 Tarapur to add 3 multipurpose lines of about 10 tonnes/month each, more than doubling its API capacity, by end FY27.^[4]
Baddi OSD facility brownfield expansion to nearly double oral solid dosage capacity, targeted by end FY27.^[4]
The Tarapur salicylic acid plant is being switched to derivatives such as methyl salicylate at about 350-400 TPM (Q1 FY27).^[4]
Capex of Rs 300-400 crores is planned over the next 2-3 years across APIs, formulations and oncology dossiers (stated Q4 FY26).^[3]

Recent developments

Prakash M. Patil resigned as Chairman, MD and CEO effective September 30, 2026; Adhish P. Patil gave up the CFO role and became Managing Director from October 1, 2026.^[6]
The anti-dumping duty application on Chinese salicylic acid was delayed by at least a year as of Q1 FY27; relief is expected no earlier than FY28.^[4]
Sayakha methylamine facility, commissioned September 4, 2025, is on track to meet 80-90% of captive Metformin intermediate needs by Q3 FY27.^[7]

Market Cap

₹3,460 Cr

High / Low

₹534 / 319

Stock P/E

18.0

Price / Book

2.2

Book Value

₹170

EPS

₹21.4

No. of Shares

9.13 Cr

ROCE

11.9%

ROE

13.4%

OPM

9.5%

Debt / Equity

0.37

Sales

₹2,565 Cr

Net Profit

₹195 Cr

Promoter holding

54.1%

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