Aarti Drugs reports strong Q2, H1 FY26 financial performance

Aarti Drugs Limited reported strong financial results for Q2 FY26 and H1 FY26. Consolidated revenue reached INR 652.9 crore in Q2 FY26, a 9% year-on-year increase, and INR 1,243.7 crore for H1 FY26, an 8% increase. Net profit after tax (PAT) rose 29% to INR 45.2 crore in Q2 FY26 and an impressive 45% to INR 99.1 crore for H1 FY26, driven by favorable export volumes and disciplined execution. EBITDA also showed significant growth, up 23% in Q2 FY26 to INR 84.4 crore and 18% in H1 FY26 to INR 158.8 crore.

The company's strategic priorities, including backward integration, capacity expansion, and cost competitiveness, contributed to these positive results despite soft domestic demand in the antibiotics category. The commissioning of the Sayakha amines facility in September 2025 is expected to enhance raw material security and margin resilience, meeting 40-50% of Metformin requirements. Additionally, salicylic acid operations at Tarapur are stabilizing, aiming for 500 tonnes per month by Q4 FY26.

API business contributed 79% of Q2 FY26 revenue, with formulations showing a 26% year-on-year increase. Aarti Drugs also highlighted its global presence, with EU and USFDA certifications enabling exports to regulated markets and a diverse product pipeline focusing on new-age molecules for regulated and emerging markets.