Aarti Drugs posted a landmark second quarter for FY27, with total revenue rising 27% to Rs 828.8 crore and PAT soaring 83% to Rs 82.8 crore. Growth was driven by strong performances in the Specialty Chemicals and Formulations segments, alongside improved cost efficiency from the Sayakha facility. Alongside the record financial performance, the company announced a leadership transition, with Rashesh Gogri taking over as Chairman and Adhish Patil as Managing Director.
Aarti Drugs Q2 Net Profit Soars 83% on Record Revenue
Aarti Drugs reported a net profit of Rs 82.8 crore for Q2 FY27, representing an 83% increase from Rs 45.2 crore in the same period last year. Quarterly revenue reached an all-time high of Rs 828.8 crore, marking a 27% growth over the Rs 652.9 crore recorded in Q2 FY26.
Reader Takeaway: Record-breaking profit growth driven by operational efficiency and specialty chemical demand, tempered by incoming leadership transition risks.
What just happened
Aarti Drugs delivered a strong quarterly performance marked by an 83% jump in PAT and a 370 bps expansion in EBITDA margins to 16.6%. The company attributed this growth to robust volume expansion across key business units, particularly in Specialty Chemicals, which saw revenue nearly double, and Formulations, which grew 58% year-on-year.
Why this matters
The successful scaling of the Sayakha facility has been a critical catalyst, allowing the company to source metformin intermediates in-house and improve overall cost competitiveness. This operational improvement, combined with healthy demand, helped the company navigate global volatility while achieving its highest-ever quarterly EBITDA of Rs 137.9 crore.
Management and Leadership Update
Effective October 1, 2026, the company underwent a major leadership reshuffle. Following the retirement of Mr. Prakash M. Patil, Mr. Rashesh Gogri has assumed the role of Chairman, while Mr. Adhish Patil has stepped in as the new Managing Director. Investors are now closely watching how this leadership change influences the company’s long-term growth strategy.
Risks to watch
Management highlighted that global market volatility remains a persistent challenge. While the leadership transition is orderly, the market will look for consistent strategic execution from the new team to ensure that the current operational momentum is sustained in the coming quarters.
What to track next
Ongoing capacity expansion projects at Tarapur, Sarigam, and Baddi are currently in progress. The progress of these USFDA-compliant facilities and their ability to drive future export revenue—which saw a 5% decline this quarter—will be key indicators for long-term investors.