Aarti Drugs spurts as Q3 PAT jumps 33% YoY to Rs 62 cr
Aarti Drugs zoomed 14.25% to Rs 399.60 after the pharmaceutical company's consolidated net profit jumped 32.76% to Rs 62.8 crore in Q4 FY25, compared with Rs 47.3 crore recorded in Q4 FY24.
Revenue from operations rose 9% to Rs 678.6 crore in the fourth quarter of FY25, compared with Rs 621.1 crore posted same period a year ago.
Profit before tax added 10.90% to Rs 71.2 crore in the fourth quarter of FY25 as against Rs 64.2 crore recorded in the same quarter last year.
EBITDA stood at Rs 95.2 crore in Q4 of FY25, up 10% from Rs 86.9 crore posted in the March 2024 quarter. EBITDA margin remained unchanged at 14% in Q4 FY25, consistent with the 14% recorded in Q4 FY24.
During the quarter, revenue from API segment rallied 10% YoY to Rs 553.1 crore, formulation business dropped 4% YoY to Rs 64.8 crore while specialty chemicals increased 18% YoY to Rs 39 crore and intermediaries & others jumped 9% YoY to Rs 19.8 crore while in Q4 FY25.
On standalone basis, the companys net profit increased 70.11% to Rs 61.48 crore in Q4 FY25, compared with Rs 61.48 crore in Q4 FY24. Revenue stood at Rs 624.7 crore in March 2025 quarter, up 11% YoY. The standalone business contributed approximately 90% to the consolidated revenue for the quarter.
Around 60% of the revenues came from the domestic market and 40% from the exports market for fourth quarter of FY25 for a standalone business.
Within the API business, the antibiotic therapeutic category contributed 39%, anti-diabetic 5%, anti-protozoal 20%, anti-inflammatory 12%, antifungal 9% and the rest contributed 5% to total API sales for Q4 FY25.
Adhish Patil, CFO & COO of Aarti Drugs, said, "In Q4 FY25, Revenues grew by 9% to Rs. 679 crores with EBITDA Margins improving to 14%. During the quarter, we witnessed strong global demand for APIs, driving a 15.5% growth in volumes, primarily led by exports. Benefiting from improved operating leverage and stable input costs, we achieved 14.5% EBITDA Margins in the standalone business. FY25 was a challenging year, beginning with muted global demand and elevated raw material costs, which impacted overall performance.
Greater than expected market volatility, particularly due to falling input prices, led to a 5% year-on-year revenue decline. Despite the challenges, the Company improved cost efficiency and operational discipline over the year, which helped maintain our EBITDA Margins at 12.6%. Margin performance improved significantly in H2 FY25, driven by stabilization in input costs. During FY25, the Company incurred Capex of Rs 177 crore mainly towards capacity expansion, backward integration and new product launches. This has been mainly funded through internal accruals and partly through term loans.
Additionally, the company distributed Rs 69 crore to shareholders in FY25, while maintaining a healthy consolidated Debt to Equity ratio of 0.45. The greenfield project at Sayakha, Gujarat, dedicated to backward integration of our anti-diabetic product along with few more intermediates, has commenced trial production which is expected to stabilize soon within the current quarter. This is anticipated to contribute meaningfully to the Companys profitability over a long period of time. Investor Release the Tarapur greenfield project had certain initial operational challenges, which have now been largely resolved.
The company remains focused on a gradual production scale-up, targeting over 700 tonnes per month by June 2025 and aiming to reach a cumulative capacity of approximately 1,600 tonnes per month by the end of FY26. Amid API pricing pressures from raw material cost fluctuations, heightened competition, regulatory changes, and the ongoing pharmaceutical tariff war between China and the USA, the company remains focused on driving sustainable growth and profitability.
The US-China trade tensions have exacerbated volatility in raw material costs, disrupted global supply chains, and created uncertainty in pricing structures within the sector. These trade dynamics have also affected the cost structure and availability of critical APIs, challenging manufacturers globally. Despite these pressures, the Company is concentrating on operational efficiencies, strategic market expansion, and supply chain optimization. We remain committed to navigating these external challenges with resilience and continues to focus on initiatives aimed to strengthen our position in the global market.
The company has entered into a Share Subscription and Shareholders Agreement with Prozeal Green Power and Pro-Zeal Green Power Nine. Through this agreement, the Company will acquire 26.25% equity shares and voting rights, along with Compulsory Convertible Debentures in Pro-Zeal Green Power, an SPV that will develop and operate a 24.4 MWp solar power plant. This plant will partially supply the Companys power needs, reinforcing the commitment to renewable energy.
On February 14, 2025, the company received a letter from the United States Food and Drug Administration (USFDA) confirming the removal of its API manufacturing facility at Plot No. E-22, MIDC, Tarapur, Maharashtra, from Import Alert 66-40. This marks a significant quality milestone for the company. As a result, the company is now authorized to export products such as Ciprofloxacin HCl API, Zolpidem Tartrate API, Raloxifene HCl API, Celecoxib API, and Niacin API to the U.S. market.
Aarti Drugs forms part of $6 Billion Aarti Group of Industries with robust R&D Division at Tarapur, Maharashtra Industrial Development Corporation (MIDC) in close vicinity to manufacturing locations. The company is engaged in the manufacturing of Active Pharmaceutical Ingredients (APIs), Pharma Intermediates, Speciality Chemicals and produces Formulations with its whollyowned subsidiary-Pinnacle Life Science Private.
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