Aarti Pharmalabs LimitedQ2 FY27 Results & Financial Update
Aarti Pharmalabs Limited: Q2 FY27 consolidated results and company financials – revenue ₹610.45 Cr, PAT ₹71.47 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Aarti Pharmalabs Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Aarti Pharmalabs reported consolidated revenue from operations of INR 610.45 crore for the second quarter ended September 30, 2026, marking an increase of 13.93% compared to INR 535.80 crore recorded in the preceding quarter (Q1 FY27).
Total consolidated income for Q2 FY27 stood at INR 610.92 crore, compared to INR 536.25 crore in the previous quarter.
Profit before share of profit/loss of joint ventures, exceptional items, and tax stood at INR 90.15 crore for the quarter, compared to INR 93.65 crore in Q1 FY27.
Consolidated net profit after tax (PAT) for the quarter was reported at INR 71.47 crore, reflecting a sequential moderation of 6.13% from INR 76.14 crore in the June 2026 quarter.
Basic and diluted earnings per share (EPS) for the quarter were recorded at INR 7.88 and INR 7.87 respectively, compared to INR 8.40 and INR 8.39 in the previous quarter.
The company recorded a consolidated share of profit from joint ventures of INR 6.88 crore during the quarter, bringing profit before tax to INR 94.99 crore and total tax expenses to INR 23.52 crore.
During the quarter, the company recognized an exceptional item of INR 2.04 crore representing a provision towards a stamp duty order, while key managerial personnel changes saw the resignation of CFO Shri Piyush Lakhani and the appointment of Smt. Vibha Thakkar effective October 31, 2026.
01 · Business model
What does Aarti Pharmalabs do?
Aarti Pharmalabs Limited operates exclusively in the pharmaceuticals sector, engaged in the manufacturing and distribution of active pharmaceutical ingredients (APIs), process chemicals, and pharmaceutical intermediates.
The company's operational footprint is structured around dedicated production assets and development facilities designed to serve domestic and international markets.
Consolidated operations encompass the parent entity alongside specialized subsidiaries such as Aarti USA Inc. and Aarti Pharmachem Limited, complemented by strategic joint venture holdings like Ganesh Polychem Limited.
02 · Historical context
What shaped the business before this quarter
The company was formed via the demerger of the pharmaceutical undertaking of Aarti Industries Limited into Aarti Pharmalabs Limited pursuant to a Scheme of Arrangement sanctioned by the National Company Law Tribunal, Ahmedabad Bench, on September 21, 2022.
03 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q2 FY27 | Previous quarter |
|---|---|---|
| Revenue from operations | ₹610.45 Cr | ₹535.80 Cr |
| Total income | ₹610.92 Cr | ₹536.25 Cr |
| Profit before tax | ₹88.11 Cr | ₹93.65 Cr |
| Profit after tax | ₹71.47 Cr | ₹76.14 Cr |
| EPS | ₹7.88 | ₹8.39 |
Financial interpretation
What the reported numbers mean
Profit after tax represented 11.7% of reported quarterly operating revenue. This is a calculated net-profit-to-sales ratio, not a company-reported operating margin. It measures the outcome after expenses and tax; it does not, by itself, establish how margins changed versus another period.
Profit before tax was equivalent to 14.4% of quarterly operating revenue. The distinction between pre-tax and post-tax profit matters when interpreting earnings; neither ratio identifies an underlying cost driver without a properly matched comparative period.
Total income exceeded operating revenue by ₹0.47 crore. This is the disclosed difference between the two lines, not incremental sales. The distinction matters when assessing how much of the quarter’s reported income came from the operating top line.
Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Consolidated revenue from operations advanced to INR 610.45 crore in Q2 FY27 from INR 535.80 crore in Q1 FY27, reflecting higher business activity across pharmaceutical lines.
What drove margins
Cost of materials consumed stood at INR 334.88 crore for Q2 FY27 compared to INR 251.87 crore in Q1 FY27, while purchases of stock-in-trade were INR 18.49 crore.
Employee benefits expense for the quarter was recorded at INR 54.55 crore, and other expenses stood at INR 122.34 crore.
Depreciation and amortization expenses remained stable at INR 30.53 crore, while finance costs amounted to INR 14.95 crore for the quarter.
05 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
The company continues to operate in a single primary business segment, namely Pharmaceuticals, as confirmed in the financial results notes.
06 · Reported developments
What changed operationally
Consolidated quarterly revenue expanded sequentially to INR 610.45 crore in Q2 FY27 compared to INR 535.80 crore in Q1 FY27.
The company's joint venture, Ganesh Polychem Limited, contributed INR 6.88 crore in net profit after tax during the quarter.
07 · Pressure points & risks
What is not going smoothly
The Collector and Additional Superintendent of Stamps, Gandhinagar, issued an order dated August 29, 2026, determining stamp duty of INR 25.00 crore and levying penalties of INR 34.50 crore under the Gujarat Stamp Act, 1958, related to the NCLT demerger scheme. The company has recognized a provision of INR 2.04 crore as an exceptional item, disclosed INR 57.46 crore as a contingent liability, and challenged the order before the High Court of Gujarat.
08 · Items worth noticing
The line items that can distort a quick read
Recognition of an exceptional provision of INR 2.04 crore for the quarter and half year ended September 30, 2026, related to the stamp duty order issued under the Gujarat Stamp Act, 1958.
09 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
For the half year ended September 30, 2026, net cash generated from operating activities on a standalone basis was INR 29.92 crore, after accounting for working capital changes of INR (215.04) crore. Net cash used in investing activities was INR (131.21) crore, including property, plant, and equipment additions of INR (123.20) crore, while net cash from financing activities stood at INR 96.91 crore.
Capital allocation & funding
As of September 30, 2026, standalone non-current borrowings stood at INR 159.84 crore, while current borrowings were recorded at INR 676.64 crore.
10 · Beyond the numbers
What changed beyond the numbers
Reported update
CFO Resignation and Appointment
Shri Piyush Lakhani resigned from the position of Chief Financial Officer and Key Managerial Personnel effective October 30, 2026, to pursue an alternate career opportunity. Smt. Vibha Thakkar was appointed as the new Chief Financial Officer and Key Managerial Personnel effective October 31, 2026.
11 · Previous-quarter changes
What changed since the previous quarter
Revenue from operations increased from INR 535.80 crore in Q1 FY27 to INR 610.45 crore in Q2 FY27, while PAT moderated from INR 76.14 crore to INR 71.47 crore over the same period.
12 · Key Q&A
The quarter, answered directly
What does Aarti Pharmalabs do?
Aarti Pharmalabs Limited operates exclusively in the pharmaceuticals sector, engaged in the manufacturing and distribution of active pharmaceutical ingredients (APIs), process chemicals, and pharmaceutical intermediates.
What is the clearest takeaway from Q2 FY27?
Aarti Pharmalabs reported consolidated revenue from operations of INR 610.45 crore for the second quarter ended September 30, 2026, marking an increase of 13.93% compared to INR 535.80 crore recorded in the preceding quarter (Q1 FY27).
What drove revenue or demand?
Consolidated revenue from operations advanced to INR 610.45 crore in Q2 FY27 from INR 535.80 crore in Q1 FY27, reflecting higher business activity across pharmaceutical lines.
What mattered most for margins or profitability?
Cost of materials consumed stood at INR 334.88 crore for Q2 FY27 compared to INR 251.87 crore in Q1 FY27, while purchases of stock-in-trade were INR 18.49 crore.
What changed operationally beyond the headline numbers?
Shri Piyush Lakhani resigned from the position of Chief Financial Officer and Key Managerial Personnel effective October 30, 2026, to pursue an alternate career opportunity. Smt. Vibha Thakkar was appointed as the new Chief Financial Officer and Key Managerial Personnel effective October 31, 2026.
What are the main pressure points disclosed for the quarter?
The Collector and Additional Superintendent of Stamps, Gandhinagar, issued an order dated August 29, 2026, determining stamp duty of INR 25.00 crore and levying penalties of INR 34.50 crore under the Gujarat Stamp Act, 1958, related to the NCLT demerger scheme. The company has recognized a provision of INR 2.04 crore as an exceptional item, disclosed INR 57.46 crore as a contingent liability, and challenged the order before the High Court of Gujarat.
13 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
Starting point
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14 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Legal Proceedings on Stamp Duty: Developments concerning the writ petition filed before the High Court of Gujarat challenging the stamp order and penalty levied by the stamp authorities.
- 02
CFO Transition: Smooth operational transition following the assumption of office by incoming CFO Smt. Vibha Thakkar effective October 31, 2026.
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