Aarti Pharmalabs expects 15-18% revenue, EBITDA growth; CDMO to lead with 40-50% jump in FY27
Management's growth guidance hinges on CDMO ramp-up and Xanthine capacity addition, but margin headwinds from raw material inflation persist.
What management said
- Q4 revenue rose 9% YoY to ₹580 crore, but PAT fell 30% to ₹62 crore.
- CDMO segment posted highest-ever quarterly revenue of ₹155 crore, growing 32% in FY26.
- Xanthine expansion to 9,000 MT capacity expected by Q1 FY27 end; current capacity fully utilized.
- API business expected to surpass FY25 revenue of ₹772 crore in FY27 after a soft FY26.
- Forex loss of ₹33 crore hit PAT; management says no unaccounted contracts beyond 6-8 months.
The brief
Aarti Pharmalabs reported Q4 revenue of ₹580 crore (+9% YoY) but PAT fell to ₹62 crore from ₹89 crore, impacted by a ₹33 crore forex loss. Full-year revenue was ₹1,798 crore with EBITDA of ₹406 crore. The CDMO segment achieved record quarterly sales of ₹155 crore, driving 32% annual growth, and is expected to grow 40-50% in FY27. Xanthine derivatives contributed 43% of Q4 turnover; capacity will expand from 6,000 to 9,000 MT by Q1 FY27 end. API intermediates saw a soft year at ₹647 crore but management expects to surpass FY25 levels in FY27. Capex of ~₹400 crore continues for expansion projects. Long-term guidance of 15-18% revenue and EBITDA growth for the next 3-4 years was reiterated, but margins face pressure from raw material inflation and ramp-up costs. The verdict: growth story intact, but margin recovery is key.
In their words
“We are targeting 15 to 18 growth in both revenue and EBITDA for next 34 years.”— Rashesh C. Gogri — Chairman
“We are working with 21 customers and the number of active projects is 54 out of which 35 projects are in the commercial stage.”— Rashesh C. Gogri — Chairman
“We are not sharing this granular details now.”— Rashesh C. Gogri — Chairman
Summarised from the Aarti Pharmalabs Ltd Q4 2026 earnings-call transcript. View transcript.