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Aarti Drugs Delivers Higher Profit on Modest Revenue Growth, Boosted by Value-Added Segments

Story Highlights
  • Aarti Drugs posted 8% revenue growth but weaker EBITDA margins, yet sharply higher quarterly and nine-month profits.
  • Strong expansion in formulations, specialty chemicals and intermediates signals a strategic shift to higher-margin segments.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Aarti Drugs Delivers Higher Profit on Modest Revenue Growth, Boosted by Value-Added Segments

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The latest announcement is out from Aarti Drugs Limited ( (IN:AARTIDRUGS) ).

Aarti Drugs Limited reported an 8% year-on-year rise in consolidated revenue to Rs 602.9 crore for the December 2025 quarter, while nine-month FY26 revenue grew 8% to Rs 1,846.6 crore, underscoring steady topline momentum. Despite a 10% YoY decline in quarterly EBITDA to Rs 56.3 crore and margin compression to 9.3%, profit after tax for Q3 jumped 58% to Rs 40.5 crore, lifting the PAT margin to 6.7%, and nine-month PAT surged 49% to Rs 139.7 crore with an improved margin of 7.6%. Segmentally, API revenue was broadly flat in Q3, but higher growth was seen in value-added businesses, with formulations up 59%, specialty chemicals up 51% and intermediates and others up 34% year-on-year, highlighting an ongoing shift towards higher-margin segments that could strengthen the company’s profitability profile and competitive positioning over time.

More about Aarti Drugs Limited

Aarti Drugs Limited is a Mumbai-based diversified and fully integrated pharmaceutical company with operations spanning Active Pharmaceutical Ingredients (APIs), formulations, specialty chemicals and intermediates. The company serves both domestic and international markets, leveraging its broad product portfolio to cater to the pharmaceutical and allied chemical industries.

Average Trading Volume: 10,446

Technical Sentiment Signal: Sell

Current Market Cap: 34.72B INR

Learn more about AARTIDRUGS stock on TipRanks’ Stock Analysis page.

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