Aarti Pharmalabs Limited (AARTIPHARM) share price

₹879.05 on NSE as of 2026-10-08. -7.79% on the day. market cap ₹7,971 Cr. P/E 37.4. 52-week range ₹591.95 to ₹975.00. Healthcare.

www.aartipharmalabs.com

Aarti Pharmalabs Q1 FY27: Revenue ₹536 Cr, Xanthine at a Record, and a ₹149 Crore Block Approved

At a glance

Aarti Pharmalabs sells caffeine chemicals, drug ingredients and contract manufacturing to beverage and pharmaceutical customers. Consolidated revenue for the three months to June 2026 was ₹536 crore, against ₹386 crore a year earlier. That is a rise of 38.7% on the same quarter last year. Operating profit was ₹136 crore, against ₹93 crore in the year-ago quarter. Net profit was ₹76.1 crore, against ₹49.5 crore a year earlier. Earnings per share, the profit attached to each individual share, moved from ₹5.46 to ₹8.40.

The quarter had things happening in it, which is not always true of a caffeine maker's June. Management described it as the highest ever quarterly sales of Xanthine derivatives. The board met on 7 August, approved the results and approved ₹149 crore of new capacity at Atali. The same meeting rearranged two of the company's most senior job titles. The filing records it running from 2 p.m. to 6 p.m., which for that agenda is brisk.

Xanthine derivatives supplied 57% of revenue in the quarter, and API and intermediates 30%. Contract manufacturing supplied another 7%, and other items the remaining 6%. Management said Unit 4's Steroid API block sat through a six-week debottlenecking shutdown during the quarter. Debottlenecking means rebuilding the slowest step in a line so the whole plant runs faster. Management said the block came back with a third more capacity, having lost a quarter's output. That is the industrial equivalent of remodelling the kitchen in the week of a dinner party.

The March 2026 quarter, for comparison, delivered ₹583 crore of revenue and ₹61.1 crore of profit. The June quarter's revenue was 8.0% lower and its profit 24.6% higher.

Introduction

Aarti Pharmalabs is the pharmaceutical half of a chemicals family that stopped sharing a bank account in October 2022. The company was incorporated in 2019 as a wholly owned subsidiary of Aarti Industries, under the name Aarti Organics. It then demerged into a separately listed company. That is how a 25-year-old manufacturing operation ends up with a corporate birth certificate younger than most of its own reactors.

The plant history runs back further than the listing does. Aarti Organic Private Limited was incorporated in 1984. The first API unit at Dombivli and the Xanthine unit both started in 2001. APIs are active pharmaceutical ingredients, the working chemical inside a finished medicine. Tarapur Unit 4 followed in 2005 for regulated markets, and cleared USFDA and EU GMP audits in 2008. Caffeine production began at Unit 5 in 2016, at 100 tonnes a month. Land at Atali was acquired in 2022 and Phase 1 there was commissioned in 2025, with more than 450 kilolitres of reactor capacity. Tarapur Unit 5 was inaugurated in June 2026, adding 3,600 tonnes a year of Xanthine capacity. That takes total Xanthine capacity to 9,600 tonnes a year.

The company belongs to the Aarti group. The August 2026 presentation describes that group as a diversified chemical conglomerate, with turnover above ₹14,500 crore in the year to March 2026. Aarti Pharmalabs itself runs seven manufacturing units across Maharashtra and Gujarat, three of them USFDA-approved. It also has three research centres and more than 2,400 employees.

Recent months brought a steady stream of filings. A USFDA inspection at Tarapur Unit-IV in March 2026 ended with a Form 483 carrying one procedural observation. A Form 483 is the list of observations an American inspector leaves behind after a factory visit. The company disclosed a dimethyl sulphate leak at Tarapur Unit-VI on 22 March 2026. It said 22 workers were hospitalised, that a police first information report was filed, and that operations were restored within 24 hours. Dr. Rakeshwar Bandichhor was appointed Chief Scientific Officer for research from 1 January 2026. Crisil, a credit-rating agency, lists nine bank facilities in its March 2026 credit bulletin, all rated Crisil AA-/Stable.

Business model

Three businesses share one factory network, and only one of them is famous.

Xanthine derivatives is the caffeine business, and Aarti has India's largest capacity in it. The presentation also calls the company the world's third-largest in this line. The range covers caffeine, theophylline anhydrous, aminophylline and etophylline, with plain theophylline alongside them. Buyers make cola drinks, energy drinks, medicines and nutraceuticals, which are supplements sold on health claims. By volume, 74% of the quarter's sales went to beverages and the remainder elsewhere. Two dedicated Tarapur plants now carry more than 9,600 tonnes a year, up from 5,000 tonnes. Exports took 79% of quarterly sales, and global market share is 15-20%. A meaningful slice of the world's morning is manufactured in coastal Maharashtra and shipped out in drums.

APIs and intermediates is the technically demanding one. The company makes highly potent ingredients for cancer treatment, corticosteroids and cytotoxic medicines. Highly potent ingredients are those that work at very small doses. Behind them sit more than 1,500 kilolitres of multipurpose reactor capacity and 14 finished API lines. The company lists 61 commercialised APIs and another 11 under development. It holds 60 US drug master file approvals and 44 European certificates of suitability. A drug master file is the dossier telling a regulator how an ingredient is made. More than 140 intermediates, the half-built chemicals feeding those ingredients, are on the list too. The therapeutic range covers diabetes, heart, cancer and asthma medicines, among a dozen others. It reads like someone emptied a pharmacy into a spreadsheet and alphabetised the aftermath. Regulated markets took 58% of the segment's quarterly sales and non-regulated markets 28%. The rest of the world accounted for 14%.

CDMO is the contract business, making ingredients and medicines to another company's order. It works with 22 customers on 57 active projects. Of those, 37 are commercial and 20 are still in development. Management puts the entry point at "Phase II, Phase III changeover and then the commercialization", rather than early discovery. Capabilities include cyanation, flow chemistry, cryogenic reactors and hydrogenation. The cryogenic reactors run from minus 100 to plus 150 degrees Celsius, and hydrogenation from 0.1 to 10 kilolitres. That menu is written for chemists, by chemists.

Clients number more than 500 globally. Abroad they include Liconsa Laboratories and Caribbean Refrescos. At home they include Dr. Reddy's, Zydus Healthcare and Glenmark. Exports go to more than 50 countries. Research employs 122 process scientists, more than 25 of them holding doctorates. Research spending in the year to March 2026 was ₹65 crore, or 7.4% of API, intermediates and contract sales.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Aarti Pharmalabs Limited.

Companies in the same industry as Aarti Pharmalabs Limited

Pharmaceuticals

All listed companies