Aarti Drugs Limited reported a consolidated net profit of ₹82.8 crore for the July–September quarter (Q2 FY27), up 83% from ₹45.2 crore a year earlier, as growth in active pharmaceutical ingredients (APIs), formulations and specialty chemicals lifted margins to a near six-year high. Total revenue rose 27% to ₹828.8 crore, the Mumbai-based company said on 3 November 2026.

The results add to a busy earnings week for India’s API makers, coming the same day Neuland Labs reported a 47% fall in Q2 FY27 profit on narrower margins.

Key takeaways

• Net profit rose 83% year on year to ₹82.8 crore, with the profit margin widening 310 basis points to 10%.
• EBITDA climbed 63% to ₹137.9 crore, the company’s highest ever, and the EBITDA margin expanded 370 basis points to 16.6%.
• API revenue grew 17% to ₹604.5 crore, formulations rose 58% to ₹130 crore and specialty chemicals nearly doubled to ₹71.8 crore.
• Adhish Patil took charge as Managing Director and Rashesh Gogri as Chairman from 1 October 2026.

Aarti Drugs Q2 FY27 results at a glance

According to the company’s results press release filed with the NSE, gross profit rose 35% to ₹329.7 crore, taking the gross margin to 39.9% from 37.5% a year ago. Revenue was up 18% from ₹703.6 crore in Q1 FY27, and EBITDA rose 42% sequentially.

For the first half of FY27, revenue grew 23% to ₹1,532.4 crore, EBITDA rose 48% to ₹234.8 crore and net profit increased 34% to ₹132.9 crore. Earnings per share for the quarter stood at ₹9.07, against ₹4.95 in Q2 FY26.

Which businesses drove the growth?

• APIs: Revenue rose 17% to ₹604.5 crore. The company’s API portfolio includes ciprofloxacin, metronidazole, metformin and ketoconazole.
• Formulations: Revenue jumped 58% to ₹130 crore, led by export demand, through its subsidiary Pinnacle Life Science.
• Specialty chemicals: Revenue rose 92% to ₹71.8 crore as the new Sayakha facility in Gujarat scaled up.
• Intermediates and others: Revenue grew 16% to ₹19.9 crore.

The Sayakha plant makes methylamines, which are key inputs for metformin. Within a year of commissioning, it now meets a significant share of the company’s metformin intermediate needs in-house, cutting costs and securing supply in the anti-diabetic segment. A new salicylic acid plant at Tarapur, Maharashtra, is also scaling up.

Capacity expansion and regulated markets

Aarti Drugs runs 14 manufacturing facilities, 10 in Maharashtra, three in Gujarat and one in Himachal Pradesh. It said expansions at Tarapur, Sarigam and Baddi, including new USFDA-compliant capacity, are progressing and will deepen its presence in regulated markets. Backward integration of this kind is a wider theme in the sector, as seen in Zydus’s ₹84 crore purchase of Sterling Biotech’s API business and Alkem’s Mandva API plant clearing a USFDA audit with zero observations.

What management said

“Q2 FY27 has been a landmark quarter for Aarti Drugs. We achieved our highest-ever revenue from operations of Rs. 826 crore and reported our highest-ever quarterly EBITDA of Rs. 138 crore,” said Adhish Patil, Managing Director, Aarti Drugs Limited. He added that all facilities operated without disruption through a period of global volatility.

The quarter also marks a leadership change. Prakash M. Patil retired as Chairman, Managing Director and CEO on 1 October 2026. Adhish Patil, earlier the company’s CFO and COO, is now Managing Director, and Rashesh Gogri is Chairman. Aarti Drugs shares rose as much as 7.4% to ₹500 on the BSE on 4 November, Business Today reported.

Other mid-sized drugmakers have also posted strong numbers this season, including Granules India, whose Q2 FY27 profit rose 39%.

Frequently asked questions

What was Aarti Drugs’ net profit in Q2 FY27?

Aarti Drugs reported a consolidated net profit of ₹82.8 crore in Q2 FY27, up 83% from ₹45.2 crore in Q2 FY26.

Who is the new Managing Director of Aarti Drugs?

Adhish Patil became Managing Director on 1 October 2026, after Prakash M. Patil retired. Rashesh Gogri took over as Chairman.

Featured image: An Aarti Drugs manufacturing facility. Photo: Aarti Drugs Limited

Like

Dislike

Be a part of Elets Collaborative Initiatives. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook , connect with us on LinkedIn and follow us on Twitter , Instagram.

"Exciting news! Elets technomedia is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!