Aarti Drugs Limited (NSE: AARTIDRUGS | BSE: 524348)
Source: Aarti Drugs Limited Annual Report FY 2025-26 (Fiscal Year Ended March 31, 2026)
📋 Quick Facts: Company Snapshot
| Attribute | Disclosed Detail |
|---|---|
| Official Company Name | Aarti Drugs Limited |
| Corporate Identity Number (CIN) | L37060MH1984PLC055433 |
| ISIN | INE767A01016 |
| NSE Symbol & BSE Scrip Code | AARTIDRUGS (NSE) | 524348 (BSE) |
| Date of Incorporation / Founding Year | 1984 |
| Founders / Key Founding Figures | Shri Chandrakant V. Gogri and Shri Prakash M. Patil |
| Registered Office & Corporate Headquarters | Registered Office: Plot No. N-198, M.I.D.C., Tarapur, Village Pamtembhi, Taluka & Dist. Palghar – 401 506, Maharashtra, India. Corporate Office: Ground Floor, Mahendra Industrial Estate, Road No. 29, Plot No. 109-D, Sion (East), Mumbai – 400 022, Maharashtra, India |
| Telephone & Investor Relations Contact | Tel. No.: +91 22-2401 9025 | Email: investorrelations@aartidrugs.com |
| Chairman / Managing Director & CEO | Shri Prakash M. Patil (Chairman, Managing Director & CEO) |
| Chief Financial Officer (CFO) & Company Secretary (CS) | Shri Adhish P. Patil (CFO and COO) | Shri Rushikesh V. Deole (Company Secretary) |
| Promoter & Holding Group | Aarti Group / Promoter and Promoter Group |
| Industry / Sector Classification | Pharmaceuticals / Active Pharmaceutical Ingredients (APIs), Formulations, Specialty Chemicals, and Intermediates |
| Total Employees / Workforce | 1,355 permanent employees at manufacturing plants and administrative office; Total consolidated permanent and contractual workforce exceeds 2,200+ employees |
| Manufacturing Plants / Branches / Offices Count | 14 Manufacturing Facilities, 2 R&D Centres, and 15 total operations/offices |
| Countries / States Served | Served in over 100 countries across 6 continents |
| Statutory Auditors | Gokhale & Sathe, Chartered Accountants |
| Registrar and Share Transfer Agent (RTA) | MUFG Intime India Private Limited (Formerly known as Link Intime India Private Limited) |
🏢 The Corporate Identity: Who They Are & Where They Came From
The Big Picture
Aarti Drugs Limited is a leading global pharmaceutical manufacturer with more than four decades of operating experience. Backed by integrated manufacturing facilities, internationally recognized regulatory accreditations, and strong in-house research and development capabilities, the Company specializes in Active Pharmaceutical Ingredients (APIs), pharmaceutical intermediates, specialty chemicals, and finished pharmaceutical formulations. Its strategic manufacturing network spans across multiple locations in Maharashtra and Himachal Pradesh, serving customers in over 100 countries across six continents.
- Consolidated Total Revenue: Reached ₹2,567.70 Crores (approx. ₹ 2,568 Crores) in FY 2025-26, compared to ₹2,403.39 Crores in FY 2024-25.
- Consolidated Profit After Tax (PAT): Stood at ₹194.94 Crores (approx. ₹ 195 Crores) in FY 2025-26, compared to ₹168.10 Crores in the previous fiscal year, representing an approximately 16% year-on-year growth.
- Regulated Market Penetration: Regulated markets contributed 73% of total revenues during FY 2025-26, up from 66% in FY 2024-25, reflecting the growing global acceptance of the Company’s quality and regulatory standards.
The Founders, Promoters & Their Legacy
Aarti Drugs was founded in 1984 by visionary leaders including Shri Chandrakant V. Gogri, Chairman Emeritus, and Shri Prakash M. Patil, Chairman, Managing Director & CEO. Under their stewardship, supported by successive generations of the leadership team and dedicated employees, the organization scaled from modest beginnings into an established multinational chemical and pharmaceutical powerhouse.
- Shri Chandrakant V. Gogri: A chemical engineering graduate from the Institute of Chemical Technology (ICT), Mumbai, with over 54 years of industrial experience. He was awarded the Lala Shriram National Award in 2015, the ICC’s D.M. Trivedi Lifetime Achievement Award in 2019, and lifetime contribution awards from FICCI and GDMA.
- Shri Prakash M. Patil: Founder Promoter, Chemical Engineer from ICT, and Chairman, Managing Director & CEO with over 54 years of experience spanning product identification, project conceptualization, planning, engineering, and execution.
- Leadership Evolution: FY 2025-26 marks an important milestone in the Company’s leadership transition. Effective October 1, 2026, Shri Rashesh C. Gogri assumes the role of Chairman in addition to his responsibilities as Managing Director, while Shri Adhish P. Patil assumes the role of Managing Director, following the retirement of Shri Prakash M. Patil from executive responsibilities.
The Journey: History & Evolution
The history of Aarti Drugs is defined by continuous capacity expansion, forward and backward integration, strategic mergers, and rigorous regulatory compliance:
- 1984: Company incorporated as Aarti Drugs Limited.
- 1993: Listed on BSE Limited; received first USFDA approval for a manufacturing facility.
- 1996: Expanded business through the merger of several group entities.
- 1998: Entered the formulations business via the acquisition of 100% subsidiary Pinnacle Life Science Private Limited.
- 2003: Listed on the National Stock Exchange of India Limited (NSE).
- 2021: Surpassed ₹ 2,000 Crores in consolidated turnover and ₹ 200 Crores in PAT.
- 2024: Commissioned a greenfield dermatology product facility at Tarapur; received USFDA approval for an oncology facility and UK MHRA approval for an oral solid dosage facility.
- 2025-2026: Commenced commercial production at the Sayakha methylamines facility; scaled Salicylic Acid production beyond 300 tonnes per month at Tarapur; secured USFDA approval for the Tarapur API facility and filed the Drug Master File (DMF) for Metformin.
The Corporate Umbrella
Aarti Drugs operates alongside a network of key subsidiaries and step-down subsidiaries that extend its global supply chain, manufacturing capabilities, and commercial footprint:
- Pinnacle Life Science Private Limited: Wholly-owned subsidiary engaged in manufacturing and marketing finished pharmaceutical formulations, specializing in oncology, cardiovascular, anti-infective, and anti-diabetic therapies.
- Aarti Speciality Chemicals Limited: Wholly-owned subsidiary engaged in manufacturing and trading specialty chemicals and pharmaceutical products.
- Pinnacle Chile SpA, Pharma Go SpA, and Tripharma Chile SpA: Step-down subsidiaries based in Santiago, Chile, focusing on marketing and distributing pharmaceutical formulations across Latin American public healthcare tenders and private markets.
⚙️ The Business Engine: What They Do & Where They Operate
The Core Divisions
The Company operates an integrated business model spanning Active Pharmaceutical Ingredients (APIs), finished formulations, specialty chemicals, and chemical intermediates. The API business forms the largest segment, combining established leadership in therapeutic categories such as antibiotics, anti-inflammatories, anti-diabetics, and antifungals with continuous backward integration into key starting materials and chemical derivatives.
| Segment Name | FY 2025-26 Revenue (₹ in Crores) | % Share of Total Revenue |
|---|---|---|
| Active Pharmaceutical Ingredients (API) | 1,979.4 | 77.20% |
| Formulations | 331.2 | 12.90% |
| Specialty Chemicals | 178.3 | 7.00% |
| Intermediates and Others | 76.4 | 2.90% |
| Total Consolidated Revenue | 2,565.3 | 100.00% |
The Product & Service Catalog
Aarti Drugs offers over 50 API molecules and more than 80 finished products. Its therapeutic portfolio includes:
- Antibiotics: Ciprofloxacin Hydrochloride, Ofloxacin, Levofloxacin, Norfloxacin, and Enrofloxacin.
- Antiprotozoals: Metronidazole, Tinidazole, and Metronidazole Benzoate.
- Anti-Diabetics: Metformin HCl, Pioglitazone, Vildagliptin, and Teneligliptin.
- Anti-Inflammatories: Diclofenac derivatives, Aceclofenac, Nimesulide, and Celecoxib.
- Antifungals: Ketoconazole, Tolnaftate, and Fluconazole.
- Cardioprotectants & Others: Clopidogrel Bisulphate, Ticlopidine HCl, Benzenesulfonyl Chloride, and Methylamine-based derivatives.
The Names You Know
Prominent brand names and well-established active pharmaceutical ingredients in global healthcare markets manufactured by Aarti Drugs include Metformin (where the Company is among the world’s leading manufacturers with installed production capacity exceeding 1,450 TPM), Ciprofloxacin, Metronidazole, Diclofenac, Ketoconazole, Nimesulide, and oncology formulation offerings under subsidiary Pinnacle Life Science.
Mapping the Domestic & Global Reach
Aarti Drugs maintains a robust international distribution network spanning over 100 countries across six continents. Regulated markets contributed 73% of total revenue during FY 2025-26, supported by regulatory approvals from the USFDA, UK MHRA, EU GMP, ANVISA (Brazil), and COFEPRIS (Mexico).
| Market Region | FY 2025-26 Revenue Contribution (%) |
|---|---|
| International / Export Markets (Regulated & Semi-Regulated) | ~38% (Total Export Sales: ₹996.42 Crores consolidated) |
| Domestic Market (India) | ~62% |
| Total | 100.00% |
The Brick & Mortar Footprint
The Company operates 14 manufacturing facilities and 2 dedicated research and development centers covering over 1,59,500 square meters of plant area:
- Maharashtra (Tarapur & Turbhe): 10 locations in Tarapur housing API plants, specialty chemical plants, and a dedicated R&D center; formulations R&D and manufacturing in Turbhe, Mumbai.
- Gujarat (Sarigam & Sayakha): API manufacturing facilities across two locations in Sarigam; greenfield methylamines facility at Sayakha providing backward integration for the Metformin portfolio.
- Himachal Pradesh (Baddi): Pinnacle Life Science formulation facility producing oral solid dosages and a dedicated oncology formulation plant.
📊 The Financial Health: The Numbers Simplified
Earnings, Expenses, & Take-Home Profits
Consolidated total revenue for FY 2025-26 rose to ₹2,567.70 Crores, driven by export volume expansion and robust growth in the formulations segment, which successfully offset pricing pressures in the domestic API market. EBITDA stood at ₹311.58 Crores with an EBITDA margin of 12.1%, while Profit After Tax (PAT) expanded 16.0% year-on-year to ₹194.94 Crores.
| Consolidated Statement of Profit and Loss (Ind AS) | Year Ended March 31, 2026 (₹ in Crores) | Year Ended March 31, 2025 (₹ in Crores) | Latest YoY (%) |
|---|---|---|---|
| Revenue from Operations | 2,565.31 | 2,387.03 | +7.47% |
| Other Income | 2.39 | 16.36 | -85.39% |
| Total Revenue | 2,567.70 | 2,403.39 | +6.84% |
| Cost of materials consumed | 1,504.01 | 1,433.84 | +4.89% |
| Purchase of stock-in-trade | 115.08 | 84.34 | +36.45% |
| Changes in inventories of finished goods, work-in-progress and Stock-in-Trade | (0.37) | 19.46 | N/M |
| Employee Benefits Expense | 129.32 | 112.10 | +15.36% |
| Finance cost (Interest) | 33.71 | 35.87 | -6.02% |
| Depreciation and Amortisation Expense | 66.97 | 55.78 | +20.06% |
| Other Expenses | 508.07 | 450.23 | +12.85% |
| Total Expenses | 2,356.80 | 2,191.62 | +7.54% |
| Profit before exceptional items and tax | 210.90 | 211.77 | -0.41% |
| Exceptional Items | 0.00 | 0.00 | N/M |
| Profit Before Tax | 210.90 | 211.77 | -0.41% |
| Tax Expenses (Current Tax & Deferred Tax) | 15.96 | 43.67 | -63.45% |
| Profit after Tax | 194.95 | 168.11 | +15.97% |
| Other Comprehensive Income (Net of Tax) | 3.20 | 1.59 | +101.26% |
| Total Comprehensive Income for the Year | 198.14 | 169.69 | +16.77% |
| Earnings Per Equity Share (Basic & Diluted in ₹) | 21.36 | 18.35 | +16.40% |
Assets, Borrowings, & Net Worth
The balance sheet reflects disciplined capital allocation, marked by a record-low consolidated debt-to-equity ratio of 0.37x and total shareholders’ equity standing at ₹1,548.86 Crores.
| Consolidated Balance Sheet (Ind AS) | As at March 31, 2026 (₹ in Crores) | As at March 31, 2025 (₹ in Crores) | Latest YoY (%) |
|---|---|---|---|
| ASSETS | |||
| Property, Plant and Equipment | 1,068.27 | 856.25 | +24.76% |
| Right of use Assets | 1.70 | 2.70 | -37.04% |
| Capital work-in-progress | 121.47 | 274.15 | -55.69% |
| Intangible Assets & Under Development | 108.77 | 63.19 | +72.13% |
| Non-Current Investments & Other Non-Current Assets | 47.28 | 40.03 | +18.11% |
| Total Non-Current Assets | 1,347.49 | 1,236.32 | +8.99% |
| Inventories | 490.78 | 472.93 | +3.77% |
| Trade Receivables | 829.87 | 751.18 | +10.48% |
| Cash and Cash Equivalents | 7.27 | 4.58 | +58.73% |
| Bank Balances Other than Cash & Cash Equivalents | 1.54 | 2.98 | -48.32% |
| Loans & Other Financial Assets | 16.18 | 15.81 | +2.34% |
| Current Tax Assets & Other Current Assets | 122.14 | 90.88 | +34.40% |
| Total Current Assets | 1,467.77 | 1,338.36 | +9.67% |
| TOTAL ASSETS | 2,815.26 | 2,574.68 | +9.34% |
| EQUITY AND LIABILITIES | |||
| Share Capital | 91.27 | 91.27 | 0.00% |
| Other Equity | 1,457.59 | 1,277.73 | +14.08% |
| Non-Controlling Interests | 0.36 | 0.34 | +5.88% |
| Total Equity | 1,549.23 | 1,369.34 | +13.14% |
| Non-Current Borrowings | 256.87 | 284.00 | -9.55% |
| Other Non-Current Liabilities, Lease Liabilities & Provisions | 85.61 | 84.37 | +1.47% |
| Total Non-Current Liabilities | 343.78 | 368.37 | -6.68% |
| Current Borrowings | 317.96 | 328.24 | -3.13% |
| Lease Liabilities (Current) | 0.95 | 1.18 | -19.49% |
| Trade Payables (MSME & Others) | 477.88 | 416.14 | +14.84% |
| Other Financial Liabilities, Provisions & Tax Liabilities | 117.47 | 91.41 | +28.51% |
| Total Current Liabilities | 922.26 | 836.97 | +10.19% |
| TOTAL EQUITY AND LIABILITIES | 2,815.26 | 2,574.68 | +9.34% |
Cash Flow: Tracking the Money Movement
Operating cash flows remained strong at ₹253.54 Crores for FY 2025-26, supporting ongoing capital expenditure in greenfield facilities and debt servicing.
| Consolidated Statement of Cash Flows (Ind AS) | For the year ended March 31, 2026 (₹ in Crores) | For the year ended March 31, 2025 (₹ in Crores) | Latest YoY (%) |
|---|---|---|---|
| Net Cash Flow from Operating Activities | 253.54 | 244.58 | +3.66% |
| Purchase of Property, Plant and Equipment (CapEx / CWIP / Intangibles) | (173.32) | (177.16) | -2.17% |
| Net Cash Flow from Investing Activities | (173.41) | (164.63) | +5.33% |
| Net Cash Flow from Financing Activities | (77.44) | (82.12) | -5.70% |
| Net Increase / (Decrease) in Cash and Cash Equivalents | 2.69 | (2.17) | N/M |
| Opening Cash and Cash Equivalents | 4.58 | 6.74 | -32.05% |
| Closing Cash and Cash Equivalents | 7.27 | 4.58 | +58.73% |
Funding the Future: CapEx, CWIP & R&D Spending
Research and development expenditure for FY 2025-26 stood at ₹ 66.52 Crores (standalone R&D spend was ₹ 66 Crores), backed by DSIR-approved R&D centers at Tarapur and Turbhe. Capital expenditure during the year focused on completing greenfield projects, debottlenecking, enhancing environmental safety systems, and transitioning towards captive renewable energy through solar power projects.
🗺️ The Corporate Family Tree: Structure & Investments
Subsidiaries, Associates, & Joint Ventures (Form AOC-1)
The following entities form part of the consolidated corporate group under Form AOC-1 disclosure:
| Name of Subsidiary | Relationship | Country | % Shareholding | Total Income (FY 2025-26 in ₹ / CLP lakhs) | Profit / (Loss) After Tax (FY 2025-26) |
|---|---|---|---|---|---|
| Pinnacle Life Science Private Limited | Subsidiary (WOS) | India | 100% | ₹308.16 Crores | ₹22.07 Crores |
| Aarti Speciality Chemicals Limited | Subsidiary (WOS) | India | 100% | ₹0.00 Cr | (₹0.0055 Cr) |
| Pinnacle Chile SpA | Step-down Subsidiary | Chile | 95% | CLP 77,892.82 lakhs | CLP 1,672.10 lakhs |
| Pharma Go SpA | Step-down Subsidiary | Chile | 95% | CLP 4,986.22 lakhs | (CLP 1,340.81 lakhs) |
| Tripharma Chile SpA | Step-down Subsidiary (Incorporated Feb 27, 2026) | Chile | 95% | CLP 0.00 lakhs | (CLP 33.84 lakhs) |
Strategic Investments & Treasury Holdings
During the year, the Company invested in equity shares and compulsory convertible debentures (CCDs) of Prozeal Green Power Six Private Limited and Prozeal Green Power Nine Private Limited pursuant to Share Subscription and Shareholders’ Agreements to develop captive solar power plants in Gujarat and Maharashtra.
👥 Power & Control: Who Pulls the Strings?
The Brain Trust: Board of Directors & Key Managerial Personnel (KMP)
| Name of Director / KMP | Designation / Role | DIN | Category |
|---|---|---|---|
| Shri Chandrakant V. Gogri | Chairman Emeritus | – | Founder Promoter / Emeritus |
| Shri Prakash M. Patil | Chairman, Managing Director & CEO | 00005618 | Executive Director (Promoter) |
| Shri Rashesh C. Gogri | Managing Director | 00066291 | Executive Director (Promoter Group) |
| Shri Harshit M. Savla | Joint Managing Director | 00005340 | Executive Director (Promoter) |
| Shri Harit P. Shah | Executive Director | 00005501 | Executive Director |
| Shri Uday M. Patil | Executive Director | 01186406 | Executive Director |
| Shri Narendra J. Salvi | Non-Executive Director | 00299202 | Non-Executive Director |
| Shri Ankit V. Paleja | Independent Director | 06975564 | Non-Executive Independent Director |
| Prof. Bhaskar N. Thorat | Independent Director | 01293824 | Non-Executive Independent Director |
| Smt. Neha R. Gada | Independent Director | 01642373 | Non-Executive Independent Director |
| Shri Hasmukh B. Dedhia | Independent Director | 07510925 | Non-Executive Independent Director |
| Shri Sandeep M. Joshi | Independent Director | 00516409 | Non-Executive Independent Director |
| Shri Ajit E. Venugopalan | Independent Director | 09439069 | Non-Executive Independent Director |
| Shri Adhish P. Patil | Chief Financial Officer and Chief Operating Officer | – | Key Managerial Personnel |
| Shri Rushikesh V. Deole | Company Secretary & Compliance Officer | – | Key Managerial Personnel |
Who Owns the Stock? Shareholding Pattern
| Shareholding Category | Number of Shares (As on March 31, 2026) | % of Total Shares |
|---|---|---|
| Promoter and Promoter Group | 5,02,23,411 | 55.03% |
| Mutual Funds | 92,52,381 | 10.14% |
| Foreign Portfolio Investors | 14,39,801 | 1.58% |
| Alternate Investment Funds | 2,544 | 0.00% |
| Resident Individuals | 2,69,17,308 | 29.50% |
| Body Corporate | 9,27,302 | 1.02% |
| Others | 25,07,253 | 2.73% |
| Total | 9,12,70,000 | 100.00% |
🎯 The Strategic Outlook: Future Plans & Potential Pitfalls
Competitive Advantages & Economic Moats
Aarti Drugs possesses distinct competitive advantages built upon a multi-decade operating history, high-entry barrier chemistry expertise, and comprehensive backward integration. The commercialization of the Sayakha methylamines facility and the scaling of Salicylic Acid production at Tarapur strengthen supply chain reliability and cost efficiencies. Furthermore, world-class regulatory accreditations from the USFDA, UK MHRA, EU GMP, and ANVISA enable the Company to capture high-value regulated market opportunities.
What Could Go Wrong? Key Challenges & Business Risks
The operating environment remains exposed to external headwinds, including geopolitical tensions in West Asia that disrupt raw material availability and energy costs, volatile crude oil prices affecting chemical feedstock realisations, freight inflation, and evolving trade tariffs. Additionally, domestic antibiotic demand fluctuations and initial start-up costs for newly commissioned greenfield facilities can exert short-term pressure on operating margins.
The Next Chapter: Growth & CapEx Initiatives
Looking ahead, the Company enters a phase where capital deployment will focus on maximising returns from newly built capacities, expanding the formulations franchise (targeting a ₹ 1,000-Crore formulations business over the next 3-5 years), deepening regulatory market penetration, and transitioning toward captive renewable energy sources through solar power projects.
The Verdict: Strategic Outlook & Conclusion
With a robust balance sheet, record-low debt-to-equity ratio, expanded manufacturing capabilities, and an orderly generational leadership transition, Aarti Drugs is exceptionally well-positioned to navigate industry headwinds, capitalize on global supply chain shifts, and create sustainable long-term value for all stakeholders.
Note: Financial ratios, margins, YoY growth percentages, and % revenue shares are calculated by IndianCompanies.in based on disclosed Ind AS financial statements.
Official Site: https://www.aartidrugs.com/