EBITDA jumped 12% to Rs 74.4 crore in Q1 FY26 compared with Rs 66.1 crore in Q1 FY25. EBITDA margin expanded by 70 bps to 12.6% in Q1 FY26 from 11.9% posted in Q1 FY25.

On segmental front, the revenue from API stood at Rs 458.2 crore (up 4% YoY), formulations was at Rs 80.3 crore (up 14% YoY), specialty & chemicals stood at Rs 33.1 crore (up 24% YoY) and intermediaries & others stood at Rs 18.9 crore (up 22% YoY) during the period under review.

Adhish Patil, CFO & COO, of Aarti Drugs, said, “During Q1FY26 the Company incurred Capex of ~Rs. 48.5 crores mainly towards capacity expansion, backward integration and finished formulation R&D. For FY26, we expect Capex at around Rs 150-200 crore.

The company has started trial productions at its new greenfield manufacturing facility in Sayakha, Gujarat. This plant has been set up mainly for backward integration into anti-diabetic products and their intermediates, and is expected to largely serve internal requirements. This backward integration is a key strategic step that should help improve profit margins over time and reduce the risk of input costs volatility. This project will support internal requirements for our anti-diabetic product and choline chloride, contributing to backward integration, margin improvement, and supply chain de-risking.

The new greenfield Salicylic Acid plant at Tarapur is progressing well and is expected to begin contributing to the company’s financials from the third quarter onwards. The company is now focused on a calibrated ramp-up of operations, with a clear roadmap to scale production to over 800 tonnes per month and further expand the installed capacity to approximately 1,600 tonnes per month by the end of FY26.

Recently, the USA government has announced high tariffs on pharmaceutical products and APIs imported from countries like China. This move is aimed at reducing their dependence on Chinese suppliers. This has the potential to reshape global supply chains. While this may disrupt sourcing patterns for several players, it also opens up new opportunities for Indian API manufacturers.

The company, with a recently USFDA approved API facility and established manufacturing capabilities, is strategically positioned to meet this demand shift. The commissioning of new capacity at Sayakha and Tarapur supports this readiness and enhances the Company's ability to serve regulated export markets. Our formulation subsidiary has also got USFDA approval for its Oncology facility & UKMHRA approval for our OSD facility; alongside we are on a path to develop and register new oncology dossiers across the globe which will drive the regulated market growth from FY27 onwards.”

Aarti Drugs was established in the year 1984 and forms part of $6 Billion Aarti Group of Industries. The company is engaged in the manufacturing of active pharmaceutical ingredients (APIs), pharma intermediates, speciality chemicals and produces formulations with its wholly-owned subsidiary-Pinnacle Life Science.