Aarti Drugs Posts 63% EBITDA Jump to ₹138 Crore in Q2 as New Plant Hits Its Stride
Behind every antibiotic strip and diabetes tablet sits a chain of chemicals most people never see. India is called the pharmacy of the world, yet much of that chain still starts outside its borders.
The Nifty 50 was trading at 23,895.55, up 0.36%. Meanwhile, Sensex also rose 0.34% to 77,181.27 on Wednesday. Meanwhile, Shares of Aarti Drugs Ltd . closed at Rs. 455.80, down 2.59 percent from previous close of Rs. 465.60. The stock opened at Rs. 493.00 and reached an intraday high of Rs. 500.00 and low of Rs. 440.00. The company currently has a market capitalization of Rs. 4,204 crores.
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What's the news
Aarti Drugs has announced results for the quarter and half year ended 30 September 2026. Management called Q2 a landmark quarter, with growth across its API, formulations and specialty chemicals businesses. It added that every plant ran without disruption through a choppy global stretch.
The company also marked a leadership change. Prakash M. Patil retired as Chairman, Managing Director and CEO on 1 October. Rashesh Gogri is now Chairman, and Adhish Patil has taken charge as Managing Director. Meanwhile, expansions at Tarapur, Sarigam and Baddi, including new USFDA-compliant capacity, are moving along well, and the Sayakha facility is already covering much of the company's metformin intermediate needs.
Financial & Business analysis
Looking at the quarterly results of Aarti Drugs, the company's consolidated revenue from operations increased by 26.57 percent YoY, from Rs. 652.79 crore in Q2 FY26 to Rs. 826.24 crore in Q2 FY27, and increased by 17.57 percent QoQ from Rs. 702.78 crore in Q1 FY27.
In Q2 FY27 Aarti Drugs consolidated net profit increased 83.28 percent YoY, reaching Rs. 82.77 crore compared to Rs. 45.16 crore during the same period last year. As compared to Q1 FY27, the net profit increased by 65.12 percent YoY, from Rs. 50.13 crore.
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The basic earnings per share stood at Rs. 9.07 as against Rs. 4.95 recorded in the same quarter in the previous year, FY2026.
APIs are still the backbone, at roughly three-quarters of quarterly sales, with formulations, specialty chemicals and intermediates making up the rest. Within APIs, antibiotics lead at about a third, followed by anti-diabetic and anti-protozoal at close to a fifth each. The standalone business leans domestic, at roughly two-thirds of sales, while formulations skew heavily towards exports.
Aarti does not disclose an order book, which is normal for API makers selling on repeat purchase orders. Visibility instead comes from capacity and integration. Making a key diabetes intermediate in-house at Sayakha cuts supply risk and costs, and USFDA-compliant capacity opens the door to regulated markets. Formulations and specialty chemicals also soften the swings of the API cycle, and a leadership handover from within should keep strategy steady.
Industry context
Indian pharma is large, but growth has cooled. Exports reached a record $31.12 billion in FY26, yet growth slowed to just 2.13% as shipments to the US fell. That pushes manufacturers towards higher-value products and wider markets.
The raw material gap is the opening. Industry estimates suggest 70-80% of the APIs used by Indian drugmakers are imported, mostly from China. China's share of India's API import bill has climbed to 74%. The government's ₹6,940 crore PLI scheme for bulk drugs is meant to build local production. Integrated makers of APIs and intermediates are well placed to gain.
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About Aarti Drugs
Aarti Drugs Limited was set up in 1984 and belongs to the $6 billion Aarti Group of Industries. It makes APIs, pharma intermediates and specialty chemicals, and sells formulations through its wholly-owned subsidiary Pinnacle Life Science. It runs 14 manufacturing facilities, with 10 in Maharashtra, 3 in Gujarat and 1 in Himachal Pradesh, and has its R&D centre at Tarapur. Its portfolio includes ciprofloxacin, metronidazole, metformin, ketoconazole and ofloxacin.