Analysts/Institutional Investor Meet/Con. Call Updates

November 04, 2026 To, To, Listing/ Compliance Department Listing/ Compliance Department BSE LTD. National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, “Exchange Plaza”, Plot No. C/1, Dalal Street, G Block, Bandra Kurla Complex, Mumbai - 400 001 Bandra (E), Mumbai – 400 051 SCRIP CODE: 543748 SYMBOL: AARTIPHARM Dear Sir/Madam, Sub: Transcript for the Q2 FY27 Earnings Conference Call Ref: Regulation 30 of the SEBI (LODR) Regulations 2015 Please find enclosed the transcript of the Earnings Conference Call held on October 29, 2026, regarding the Company's Unaudited Financial Results (Standalone and Consolidated) of the Company for the second quarter and half year ended September 30, 2026. Kindly take the same on your records. Thanking you, Yours faithfully, For AARTI PHARMALABS LIMITED JEEVAN MONDKAR COMPANY SECRETARY AND LEGAL HEAD ICSI M. NO. A22565 Encl.: a/a. “Aarti Pharmalabs Limited Q2 FY27 Earnings Conference Call” October 29, 2026 MANAGEMENT: MR. RASHESH GOGRI – MANAGING DIRECTOR MR. PIYUSH LAKHANI – CHIEF FINANCIAL OFFICER MRS. HETAL GOGRI – EXECUTIVE DIRECTOR MODERATOR: MR. OM SANGHAVI – PHILLIPCAPITAL PRIVATE COMPANY GROUP Page 1 of 22 Aarti Pharmalabs Limited October 29, 2026 Moderator: Ladies and gentlemen, good day and welcome to Aarti Pharmalabs Limited Q2 and H1 FY27 Earnings Conference Call hosted by PhillipCapital Private Company Group. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Om Sanghavi from PhillipCapital Private Company Group. Thank you and over to you, Om. Om Sanghavi: Thank you. A very good afternoon, everyone. On behalf of PhillipCapital Private Client Group. I welcome you to the Q2 and H1 FY27 Earnings Conference Call for Aarti Pharmalabs Limited. Joining us today from the management are Mr. Rashesh Gogri, Managing Director, Mr. Piyush Lakhani, Chief Financial Officer and Mrs. Hetal Gogri, Executive Director. I would like to hand over the call to Mr. Rashesh sir for the opening remarks. Over to you, sir. Rashesh Gogri: Good evening and thank you for joining us today to discuss Aarti Pharmalabs second quarter and half-year results for financial year 2027. The investor presentation relating to today's results has been filed with the exchanges and is available on our website for your reference. We continue to make healthy progress in all our business segments and are executing well on our growth strategy. With a clear focus on near-term opportunities, we aim to further solidify our standing as a preferred partner in the global pharmaceutical supply chain. Moving on to our standalone financial for Q2 FY27, Aarti Pharmalabs maintained strong momentum delivering its highest ever quarterly revenue of INR613 crores as compared to INR417 crores, which is 47% increase Y-o-Y basis. The EBITDA was INR136 crores as compared to INR74 crores in the corresponding previous period of the previous year and that is an increase of 84% Y-o-Y. The profit after tax for the Q2 financial year 27 was INR66 crores as compared to INR24 crores a year back, which is which was 2.75x the increase on last year's low base. The EBITDA margins have remained healthy at 22.2% as compared to 17.7% in the same quarter last year. Now, I would like to tell you about the specific of the businesses in Q2 FY27. The xanthine derivatives and allied product segment contributed to 50% of the turnover. The volume split between the beverages and others was 62% and 38% respectively. In terms of the geographical split, the export sales contributed to 59% and the rest was 41% with local sales. Due to geopolitical turmoil, the raw material costs have stayed Page 2 of 22 Aarti Pharmalabs Limited October 29, 2026 elevated and we are passing on the raw material increase to our customers. The API and intermediate business clocked 30% of the turnover. The sub-segment wise breakup is 57% for the regulated market, 33% for the ROW market and 10% for the non-regulated market. Benefiting from the recent capacity expansion undertaken in the steroidal API, we have recorded healthy sales in this quarter. The third segment CDMO/CMO has contributed to 13% of the revenue in this quarter and we are presently working with 23 customers. The number of active projects now is 59, out of which 39 projects are in commercial stages and 20 are under different stages of development, both at customers end. We remain on track to achieve our target of 40% to 50% revenue growth over last year on this business segment. The balance 6% turnover was other sales, which includes trading sales, export incentives and solvent and other scrap sales. Let me share a brief update about our ongoing projects. The ground breaking of the Atali dedicated block, that is block number two has been done and we target to commercialize this block in the H2 FY28. The ramp-up of xanthine expanded capacity is progressing and we plan to achieve the full capacity by the end of FY27 and we will achieve the utilization sequentially in the next year. The capacity expansion of the steroid block of API plant was completed and it has started contributing to the production and the revenue. I would like to share a few words about the strategic outlook. Building over 25 years technical expertise and heavy investments over last 3 years, 4 years, Aarti Pharmalabs has established a solid foundation to transition into robust multipillar global pharmaceutical partner. The mature xanthine derivative segment, where we hold a dominant market position, continues to serve as a cash cow. The company is also geared up to accelerate growth led by its high growth CDMO/CMO pillar, followed by API and intermediate segment. We are working on all fronts for growing these segments. Ultimately, with the capacity addition still underway in the medium term, Aarti Pharmalabs is well positioned to deepen its global partnerships and drive substantial long-term value creation. I now request the moderator to open the forum for Q&A. Thank you. Moderator: Thank you so much, sir. Ladies and gentlemen, we will now begin with the question and answer session. First question comes from the line of Ahmed Madha with Unifi Capital. Please go ahead. Page 3 of 22 Aarti Pharmalabs Limited October 29, 2026 Ahmed Madha: Yes, thanks for the opportunity. Sir, can you give status on the both the projects, the Xanthine one as well as the Atali Phase 1? How has the utilization been? Because we still see capital work in progress on balance sheet of INR300 crores plus. So, how should one read it the capitalization of the assets and how both the assets are operational? Rashesh Gogri: Yes. As explained to you on the earlier calls, the Xanthine expansion was two-phase. First was to get the finished product out and that has been fully, as I mentioned in the speech also, that we plan to ramp up the production to full production capacity by the end of this year. And I think the same will continue on the intermediate production also. That also will get fully operational by the end of this year. By the end of this year, you will see full capitalization of the Xanthine project. The Atali Phase 1 is complete and I think in the Q3, we will do the capitalization. So we have taken the trial batches of Atali Phase 1B. Trials are actually underway this week and we will have full capitalization done on that block as well. Ahmed Madha: Okay. So, in terms of the CDMO visibility with both the first phase A plus B both commercializing and the number of projects increasing as per your disclosures. What sort of visibility currently we have to be able to utilize Atali at the full capacity in the second half? Rashesh Gogri: Yes. Basically, the Atali Phase 1A and B ar [Showing first 8,000 characters — download PDF for full document]