| P/E TTM | 22.26xSector PE 47.19x |
|---|---|
| Market Cap | ₹4,255.92 CrPharmaceuticals |
| Promoter Holding | 54.07%Pledge 2.51% |
| Day RSI | 64.4Neutral Zone |
| Metric | Q2-27 | Q1-27 | Q2-26 |
|---|---|---|---|
| Revenue from Operations | 826 | 703 | 653 |
| Other Income | 2.5 | 0.8 | 0.1 |
| Total Income | 829 | 704 | 653 |
| Profit Before Tax | 109 | 69.2 | 60.4 |
| Exceptional Items | 0.0 | -2.1 | 0.0 |
| Net Profit | 82.8 | 50.1 | 45.2 |
| Operating Margin | 13.2% | 9.8% | 9.3% |
| Net Profit QoQ | +65.3% | ||
| Net Profit YoY | +83.2% | ||
| Adj. Profit QoQ | +51.5% | ||
| Adj. Profit YoY | +77.1% | ||
Key highlights
- Consolidated revenue from operations reached ₹826 crore, marking a 26.5% increase from ₹653 crore in the year-ago period
- Net profit witnessed an 83.2% year-on-year surge to ₹82.8 crore, while jumping 65.3% on a sequential basis
- Operating margins expanded to 13.2% from 9.3% in Q2 FY26, reflecting enhanced cost management
- Consolidated Profit Before Tax (PBT) stood at ₹109 crore, up from ₹60.4 crore in the same quarter last year
- Domestic subsidiary Pinnacle Life Science Private Limited contributed ₹121.37 crore to the quarterly revenue
- The company's board approved the results in a meeting concluded at 4:20 PM on November 3, 2026
Robust Revenue Growth Drives Profitability
Aarti Drugs reported consolidated revenue from operations of ₹826 crore for Q2 FY27, representing a 26.5% growth compared to ₹653 crore in Q2 FY26. This significant topline expansion, combined with a sequential revenue increase of 17.5%, translated into a substantial boost for the bottom line. The company's net profit reached ₹82.8 crore, a 83.2% year-on-year increase.
This performance follows the commercialization of its greenfield manufacturing facility at Sayakha, Gujarat, which commenced operations in September 2025 and has been scaling up to deepen market penetration. Total income for the quarter stood at ₹829 crore, including a contribution of ₹2.5 crore from other income.
Margin Expansion and Operational Efficiency
A key driver of this quarter's results was the improvement in operating margins, which rose to 13.2% from 9.3% in the same quarter of the previous year. This margin expansion occurs alongside management's previous guidance regarding the Sayakha methyl amines backward integration unit, which was targeted to achieve 100% captive metformin intermediate self-reliance within mid-2026. The consolidated total expenses for the quarter were ₹719.51 crore, with the cost of materials consumed standing at ₹477.33 crore.
Notably, the company’s Piotroski score of 7 reflects strong financial health and operational strength during this period of expansion.
Subsidiary Performance and Global Footprint
- Pinnacle Life Science Private Limited reported total assets of ₹537.54 crore as of September 30, 2026
- The domestic subsidiary generated a net profit after tax of ₹22.51 crore for the quarter
- Foreign subsidiary Pinnacle Chile SpA, along with its step-down units Pharma Go and Tripharma Chile, contributed to the consolidated loss of ₹3.43 crore
- Consolidated weighted average number of equity shares used for EPS computation remained steady at 9.127 crore
- The company continues to maintain its focus on a single business segment: Pharmaceuticals
Strategic Integration and Market Position
The current P/E ratio of 22.26x remains significantly lower than the industry average of 46.67x, despite the stock showing a month-to-date change of 10.76%. Aarti Drugs has been actively submitting approximately 330 regulatory filings across 16 international geographies to strengthen its presence in regulated markets. This strategy, coupled with the backward integration at the Sayakha plant, aims to reduce dependency on external intermediates.
The company's momentum score of 63.26 classifies it as a strong performer in the Pharmaceuticals and Biotechnology sector, even as it navigates the competitive landscape of bulk drugs and chemicals manufacturing.
| Date | Announcement | Amount |
|---|---|---|
| 31 Jul 2026 | Q1 FY27 Consolidated Revenue (PAT: Rs 50.13 Cr)Source: business-standard.com | ₹702.78 Cr |
| 15 May 2026 | Q4 FY26 Consolidated Revenue (PAT: Rs 55.19 Cr)Source: BSE filing | ₹720.30 Cr |
| 03 Feb 2026 | Q3 FY26 Consolidated Revenue (PAT: Rs 40.50 Cr)Source: BSE filing | ₹601.70 Cr |
| 07 Nov 2025 | Q2 FY26 Consolidated Revenue (PAT: Rs 45.20 Cr)Source: BSE filing | ₹652.90 Cr |
| 18 Jul 2025 | Q1 FY26 Consolidated Revenue (PAT: Rs 54.00 Cr)Source: BSE filing | ₹590.80 Cr |
| 06 May 2025 | Q4 FY25 Consolidated Revenue (PAT: Rs 62.80 Cr)Source: BSE filing | ₹678.60 Cr |
What to watch next
- Scale-up of Sayakha methyl amines unit to full capacity utilization by end of 2026
- Approval of pending regulatory filings in targeted international markets
- Integration progress of the Chilean subsidiaries into the broader supply chain
- Next board meeting for Q3 FY27 results expected in early February 2027
| Share price | ₹466.3 |
|---|---|
| Market capitalisation | ₹4,255.92 Cr |
| Revenue (annual) | ₹2,565.31 Cr |
| Net profit (annual) | ₹194.92 Cr |
| Revenue (latest quarter) | ₹702.78 Cr-2.43% vs previous quarter |
| Net profit (latest quarter) | ₹50.17 Cr-9.10% vs previous quarter |
| P/E (TTM) | 22.26×Sector 47.19× |
| Promoter holding | 54.07%-0.36% QoQ |
| FII holding | 2.26%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Aarti Drugs Limited announcing its audited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026. Market figures from a third-party data provider.
