Aarti Pharmalabs Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Aarti Pharmalabs Ltd filed with BSE on 01 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Aarti Pharmalabs reported Q4 FY2026 standalone revenue of Rs.580 Crores, up 9% year-on-year, while full year FY2026 revenue was Rs.1798 Crores against Rs.1771 Crores in FY2025. EBITDA and profit after tax declined both for the quarter and the full year compared to the previous year, with management citing a net foreign exchange loss and cost pressures from the West Asia conflict. Management discussed segment performance across Xanthine derivatives, API/Intermediates and CDMO/CMO, and outlined capex plans and capacity expansions at Tarapur and Atali for the coming year.
3 statements from this call are not shown because their supporting quotes could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Revenue: Rs.580 Crores (Q4 FY2026)
p. 3
“The revenue was Rs.580 Crores for Q4, which was Rs.530 Crores a year back, an increase of 9% Y-o-Y.”
Rashesh Gogri, page 3 of the filed PDF · View the filing
Revenue: Rs.1798 Crores (FY2026)
p. 3
“On a full-year basis, FY2026 revenue came in at Rs.1798 Crores versus Rs.1771 Crores in FY2025.”
Rashesh Gogri, page 3 of the filed PDF · View the filing
EBITDA: Rs.134 Crores (Q4 FY2026)
p. 3
“The EBITDA was Rs.134 Crores as compared to Rs.141 Crores in the corresponding period of the previous year for the Q4.”
Rashesh Gogri, page 3 of the filed PDF · View the filing
EBITDA: Rs.406 Crores (FY2026)
p. 3
“For the full year FY2026, we achieved the annual EBITDA of Rs.406 Crores versus Rs.428 Crores a year back.”
Rashesh Gogri, page 3 of the filed PDF · View the filing
Profit after tax: Rs.62 Crores (Q4 FY2026)
p. 3
“The profit after tax for Q4 FY2026 was Rs.62 Crores as compared to Rs.89 Crores a year back.”
Rashesh Gogri, page 3 of the filed PDF · View the filing
Profit after tax: Rs.176 Crores (FY2026)
p. 3
“And for the full year FY2026, the profit after tax stood at Rs.176 Crores versus Rs.257 Crores in FY2025.”
Rashesh Gogri, page 3 of the filed PDF · View the filing
Net foreign exchange loss: Rs.33 Crores (FY2026)
p. 3
“It is noteworthy to mention that profit and loss account for the financial year FY2026 there was a net foreign exchange loss of Rs.33 Crores.”
Rashesh Gogri, page 3 of the filed PDF · View the filing
Final dividend: Rs.2 per share (FY2026)
p. 3
“I am pleased to inform you that the board has declared a final dividend of Rs.2 per share and this brings a total dividend of FY2026 to Rs.3.50 paisa per share.”
Rashesh Gogri, page 3 of the filed PDF · View the filing
Xanthine derivative segment share of revenue: 43% (Q4 FY2026)
p. 4
“The Xanthine derivative segment recorded the highest ever quarterly revenue and contributed to 43% of our turnover in Q4 FY2026.”
Rashesh Gogri, page 4 of the filed PDF · View the filing
API and intermediate business share of turnover: 28% (Q4 FY2026)
p. 4
“The API and intermediate business stood at 28% of the turnover.”
Rashesh Gogri, page 4 of the filed PDF · View the filing
CDMO/CMO segment revenue: Rs.155 Crores (Q4 FY2026)
p. 4
“This segment also locked the highest ever quarterly revenue of Rs.155 Crores.”
Rashesh Gogri, page 4 of the filed PDF · View the filing
CDMO/CMO full year revenue growth: 32% Y-o-Y (FY2026)
p. 4
“For the full year FY2026, the CDMO, CMO segment has shown a robust revenue growth of 32% Y-o-Y.”
Rashesh Gogri, page 4 of the filed PDF · View the filing
Capex spent: Rs.400 Crores (FY2026)
p. 4
“We have invested approximately Rs.400 Crores capital during the financial year 2026.”
Rashesh Gogri, page 4 of the filed PDF · View the filing
Xanthine current capacity: 6,000 metric ton per annum
p. 5
“The Xanthine derivatives expansion is progressing as planned. With current capacity being 6,000 metric ton per annum and the incremental capacity will be available for production at the end of the current quarter and the ramp up to 9,000 metric ton per annum in next few quarters gradually will happen.”
Rashesh Gogri, page 5 of the filed PDF · View the filing
Xanthine segment revenue: Rs.227 Crores (Q4 FY2026)
p. 8
“And in this current quarter only, we have been able to do over Rs.200 crores. Significant percentage of sales has happened in the current quarter also. Rs.227 Crores was what we did in the current quarter.”
Rashesh Gogri, page 8 of the filed PDF · View the filing
Xanthine full year revenue: Rs.792 Crores (FY2026)
p. 11
“In Xanthine, sales for this financial year is Rs.792 Crores and for this quarter is Rs.227 Crores, so please note these numbers here.”
Rashesh Gogri, page 11 of the filed PDF · View the filing
CDMO full year revenue: Rs.276 Crores (FY2026)
p. 11
“The CDMO sales for this quarter is Rs.155 Crores and for the entire year it is Rs.276 Crores for your clarification.”
Rashesh Gogri, page 11 of the filed PDF · View the filing
API/Intermediates revenue: Rs.600 Crores (FY2026)
p. 7
“I think it was 700. That is what the split I have. In FY2026, we did 600.”
Rashesh Gogri, page 7 of the filed PDF · View the filing
Active CDMO customers: 21 (FY2026 end)
p. 4
“As of FY2026 end, we are working with 21 customers and the number of active projects is 54 out of which 35 projects are in the commercial stage and 19 are under different stages of development both at customer ends.”
Rashesh Gogri, page 4 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue and EBITDA growth — 15% to 18% · next three to four years
stated as an aspiration by Rashesh Gogri
p. 5
“Based on current project visibility and the operational ramp-up, we are targeting 15% to 18% growth in both revenue and EBITDA for next three, four years.”
Rashesh Gogri, page 5 of the filed PDF · View the filing
CDMO/CMO sales growth — 40% to 50% per annum · FY2027
stated as an aspiration by Rashesh Gogri
p. 5
“For immediate FY2027, we expect the CDMO/CMO business to lead the growth with a projected sales growth of 40% to 50% per annum.”
Rashesh Gogri, page 5 of the filed PDF · View the filing
Capex — similar level to FY2026 (~Rs.400 Crores) · FY2027
stated firmly by Rashesh Gogri
p. 4
“We have invested approximately Rs.400 Crores capital during the financial year 2026. And we plan to maintain a similar level of spending for the FY2027.”
Rashesh Gogri, page 4 of the filed PDF · View the filing
Atali Phase 1 operations — completely operational · end of current quarter
stated firmly by Rashesh Gogri
p. 4
“With the corrective actions majorly in place, we are progressing well with the production scale up and phase 1 is likely to become completely operational by the end of this current quarter.”
Rashesh Gogri, page 4 of the filed PDF · View the filing
CDMO segment revenue — USD 100 million
stated conditionally by Rashesh Gogri
p. 7
“We are pretty sure that we will reach that number going forward. That is what I can share with you for now.”
Rashesh Gogri, page 7 of the filed PDF · View the filing
API and Intermediates revenue — surpass FY2025 levels · FY2027
stated firmly by Rashesh Gogri
p. 7
“We will be able to surpass the FY2025 numbers of API / Intermediates.”
Rashesh Gogri, page 7 of the filed PDF · View the filing
Dedicated CDMO block completion — 12 months from construction commencement
stated conditionally by Rashesh Gogri
p. 5
“Currently, we are in preliminary design and planning stage of this block and the completion timeline could be expected 12 months from the construction commencement being a brownfield project.”
Rashesh Gogri, page 5 of the filed PDF · View the filing
Dedicated CDMO block revenue potential — Rs.250 Crores to Rs.300 Crores topline
stated as an aspiration by Rashesh Gogri
p. 6
“I think depending on how we configure this, it can have potential of close to Rs.250 Crores to Rs.300 Crores topline also from a single block.”
Rashesh Gogri, page 6 of the filed PDF · View the filing
Xanthine capacity revenue potential — well beyond Rs.1000 Crores
stated as an aspiration by Rashesh Gogri
p. 8
“And in terms of overall revenue we feel that with this current new capacity expansion, it can be well beyond Rs.1000 Crores from the Xanthine newly added capacity and already whatever that we are doing.”
Rashesh Gogri, page 8 of the filed PDF · View the filing
Capex intensity — FY2028 onwards
stated firmly by Rashesh Gogri
p. 13
“Yes. From FY2028 onwards, that is what will happen but we had to do more capex greenfield in this year.”
Rashesh Gogri, page 13 of the filed PDF · View the filing
Capex turn for dedicated blocks — 1.5x to 2x
stated conditionally by Rashesh Gogri
p. 14
“I think for the dedicated blocks, we anticipate capex turn of 1.5x to 2x.”
Rashesh Gogri, page 14 of the filed PDF · View the filing
Operating cost step jump — Q2 FY2027
stated firmly by Rashesh Gogri
p. 16
“Yes. Yes. So I think not Q1, but I think from Q2 we will have a step jump because as we mentioned, we are just finishing our Xanthine expansion also in Q1 for final product capacity.”
Rashesh Gogri, page 16 of the filed PDF · View the filing
Capex for FY2027 — Rs.400 Crores tentatively · FY2027
stated firmly by Rashesh Gogri
p. 12
“This year we plan to spend another tentatively Rs.400 Crores going forward and of course, these are for the projects.”
Rashesh Gogri, page 12 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said they are still assessing customer visibility but see potential of Rs.250-300 Crores topline from a single dedicated block.
Answered by Rashesh Gogri
Asked by Ankit Gupta: What is the revenue potential from the new dedicated CDMO block at Atali and when will it be reached?
p. 6
“I think depending on how we configure this, it can have potential of close to Rs.250 Crores to Rs.300 Crores topline also from a single block.”
Rashesh Gogri, page 6 of the filed PDF · View the filing
Management said they do not have a firm timeline but are confident of reaching the USD 100 million target eventually.
Answered by Rashesh Gogri
Asked by Ankit Gupta: Is Aarti Pharmalabs on track to reach Rs.1000 Crores CDMO revenue by FY2028/29?
p. 7
“We are pretty sure that we will reach that number going forward. That is what I can share with you for now.”
Rashesh Gogri, page 7 of the filed PDF · View the filing
Management said they prefer to give general multi-year guidance rather than pinpointed annual numbers because of project timing shifts and ramp-up costs.
Answered by Rashesh Gogri
Asked by Meet Katrodiya: Given CDMO is guided to grow 40-50%, should overall EBITDA growth be higher than the 15-18% guidance?
p. 7
“We do not want to give a pointed guidance for each year. We are giving a general guidance of 15% to 18% because the projects keep on shifting by a quarter and that can really hamper our numbers.”
Rashesh Gogri, page 7 of the filed PDF · View the filing
Management explained their manufacturing-led model captured share from China-plus-one shifts and they are also expanding into early-phase and new chemistries like peptides.
Answered by Rashesh Gogri
Asked by Meet Katrodiya: How does Aarti's CDMO margin and revenue lumpiness compare to peers given its focus on commercial-stage molecules?
p. 8
“Currently, there was a lot of traction towards moving away from China because of the US customers wanting the products to be coming from a differentiated geography.”
Rashesh Gogri, page 8 of the filed PDF · View the filing
Management said the guidance is a 3-4 year target and pinpointing FY2027 is difficult due to CDMO approval timing and external factors like the West Asia crisis and rupee movement.
Answered by Rashesh Gogri
Asked by Rahul Jain: Is the FY2027 revenue and EBITDA guidance conservative given the strong segment-level growth commentary?
p. 12
“First of all my guidance is for 3-4 years. In FY2027, annual number pinpointing becomes difficult because of the CDMO/CMO nature and the kind of approvals which our customers will get.”
Rashesh Gogri, page 12 of the filed PDF · View the filing
Management confirmed capex intensity should decrease from FY2028 as expansion shifts to brownfield projects with lower capex requirements.
Answered by Rashesh Gogri
Asked by Dhwanil Desai: Will capex intensity come down and EBITDA-to-PAT conversion improve from FY2028 given more brownfield expansion?
p. 13
“Yes. From FY2028 onwards, that is what will happen but we had to do more capex greenfield in this year.”
Rashesh Gogri, page 13 of the filed PDF · View the filing
Management said Xanthine growth will increasingly rely on lower-margin spot market volumes, and CDMO commercialization will also come with lower margin expectations initially, limiting margin expansion.
Answered by Rashesh Gogri
Asked by Dhwanil Desai: Given higher-margin CDMO and Xanthine are growing faster, shouldn't EBITDA growth outpace revenue growth?
p. 13
“So in Xanthine, currently we are capturing all the marquee customers. As our higher capacities will come, we will have to go after more spot market, where of course, we have to fight with our competitor and get that volume.”
Rashesh Gogri, page 13 of the filed PDF · View the filing
Management guided to a capex turn of 1.5x to 2x for dedicated blocks depending on the number of stages involved.
Answered by Rashesh Gogri
Asked by Preet Jain: What capex turn is expected for the Atali dedicated blocks?
p. 14
“I think for the dedicated blocks, we anticipate capex turn of 1.5x to 2x. Of course, it depends on the number of stages that we are doing, if we are doing quite a bit of stages, then this capex turn can reduce, but the margins can grow.”
Rashesh Gogri, page 14 of the filed PDF · View the filing
Risks flagged
Persistent competitive pressure and market headwinds in the API and intermediate business
p. 4
“However, it is important to recognize that persistent competitive pressure and market headwinds affecting our product portfolio.”
Rashesh Gogri, page 4 of the filed PDF · View the filing
Geopolitical tension in West Asia causing logistics and energy cost inflation
p. 4
“The impact of ongoing war, geopolitical tension in West Asia has caused significant environmental shocks, including logistics hurdles and rising energy costs.”
Rashesh Gogri, page 4 of the filed PDF · View the filing
Difficulty passing on cost increases in the intermediate segment due to competitive pricing
p. 4
“These inflationary pressures have strained profitability and supply chain operations, particularly in the intermediate segment where competitive pricing makes cost passing difficult.”
Rashesh Gogri, page 4 of the filed PDF · View the filing
Rupee-dollar fluctuation affecting EBITDA outlook
p. 12
“Of course, on the EBITDA, I think we have to look at overall West Asia crisis and how war situation moves ahead and how things normalize in future, what will be the Rupee fx going forward; all these factors have a lot of bearing on overall EBITDA.”
Rashesh Gogri, page 12 of the filed PDF · View the filing
Rising raw material costs from urea and methanol price increases in Xanthine segment
p. 14
“So all these prices have gone up by 2x of whatever they were earlier and in certain other raw materials, of course, the prices have also gone up by 30% to 40%.”
Rashesh Gogri, page 14 of the filed PDF · View the filing
Customers resisting price increases on existing high-value, low-volume API orders
p. 15
“I think as you rightly mentioned, there was a lot of price increase due to Middle East crisis and for the orders which we had already on hand, I think the customers have resisted giving the price increase because these are all high value and low volume projects that we have.”
Rashesh Gogri, page 15 of the filed PDF · View the filing
Working capital increase from financing customer inventory without advance payment
p. 17
“Unfortunately, these large customers do not pay us advance. So we have to finance this inventory ourselves.”
Rashesh Gogri, page 17 of the filed PDF · View the filing
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