Aarti Drugs FY26: Volumes held up, recovery signs in Q4

FY26 total revenue was 2,567.7 crore, EBITDA was 311.6 crore (12.1% margin), and PAT was 194.9 crore (7.6% margin), as per the investor presentation.

Q4 FY26 revenue increased to 721.1 crore from 602.9 crore in Q3 FY26, and EBITDA rose to 96.6 crore from 56.3 crore; EBITDA margin improved to 13.4% from 9.3%.

FY26 segment mix in the presentation shows APIs at 77.2%, formulations at 12.9%, specialty chemicals at 7.0%, and intermediates and others at 3.0%.

Management said the Sayakha methylamine facility started around September, achieved about 29% utilization in the December quarter and a little above 40% in the March quarter, and reached nearly 1,000 tonnes per month run-rate in March 2026.

Management said salicylic acid remained a laggard and production was shut due to variable losses; they are implementing process improvements (including phenol recovery equipment) and pursuing anti-dumping duty application.

Management stated they would like to target FY27 EBITDA margins in the range of 13.5% to 14%, with uncertainty depending on war and crude price trajectory.