Transcript of Q2&H1 FY27 Earning Conference call

Ref: ADL/SE/2026-27/63 November 10, 2026 To, To, Listing/ Compliance Department Listing/ Compliance Department BSE Limited 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 (East), Mumbai – 400051 BSE CODE: 524348 NSE SYMBOL: AARTIDRUGS Dear Sir/Madam, Ref: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Sub: Transcript of Q2&H1 FY27 Earning Conference Call Please find attached herewith transcript of Q2&H1 FY27 Earning Conference call. Kindly take the same on record. Thanking you, Yours faithfully, FOR AARTI DRUGS LIMITED RUSHIKESH DEOLE COMPANY SECRETARY & COMPLIANCE OFFICER ICSI M.No.: F12932 “Aarti Drugs Limited Q2 & H1 FY27 Earnings Conference Call” November 04, 2026 E&OE - This transcript is edited for factual errors. In case of discrepancy, the audio recordings uploaded on the stock exchange on 4th November 2026 will prevail MANAGEMENT: Mr. Adhish Patil - Managing Director, Aarti Drugs Limited Mr. Harshit Savla - Joint Managing Director, Aarti Drugs Limited Mr. Harit Shah - Whole-Time Director, Aarti Drugs Limited Mr. Vishwa Savla - Managing Director of Pinnacle Life Science Private Limited. Page 1 of 11 Aarti Drugs Limited November 04, 2026 Moderator: Ladies and gentlemen, good day and welcome to Q2 and H1 FY27 earnings conference call of Aarti Drugs Limited. 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 this conference call, please signal an operator by pressing “*” then “0” on your touchtone phone. Please note that this conference is being recorded. Before we begin, a brief disclaimer. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and it may involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Adhish Patil, Managing Director of Aarti Drugs Ltd. Thank you and over to you, sir. Adhish Patil: Thank you. Good morning, everyone and thank you for joining us for Aarti Drugs Ltd. Earnings Conference Call for the 2nd Quarter and First Half of FY27. With me today are Mr. Harshit Savla, our Joint Managing Director; Mr. Harit Shah, Whole- Time Director; Mr. Vishwa Savla, Managing Director of Pinnacle Life Science Pvt. Ltd. and our Investor Relations Advisor, SGA. Our Results and Investor Presentation for the quarter ended 30th September 2026 have been filed with the Stock Exchanges and are also available on our website. I hope you have had a chance to go through them. I am pleased to report that Q2 FY27 has been a milestone quarter for Aarti Drugs Limited. For the first time ever, our total consolidated revenue was at Rs. 829 crores in a single quarter, 27% higher than a year ago. Operating environment remained supportive throughout the quarter. Developments in West Asia kept API prices firm across the industry while customers increasingly prioritized reliable and uninterrupted supply of APIs. Aarti Drugs was well-placed to benefit from this, delivering a 16% improvement in realizations year-on-year alongside a volume growth of 5%. Just as important is the recovery in our margins, EBITDA grew 63% to Rs. 138 crores, the highest quarterly EBITDA we have ever reported, with our EBITDA margin for the quarter reaching 16.6%, up 370 basis points year-on-year basis and the highest we have achieved in nearly 6 years. Profit after tax rose 83% to Rs. 83 crores. Our focus remains firmly on what is within our control i.e. growing volumes, improving our product mix and market mix and lowering our costs through backward integration, process improvement and energy optimization. Page 2 of 11 Aarti Drugs Limited November 04, 2026 Our API business, which remains our largest segment grew 17% to Rs. 605 crores compared with Rs. 516 crores in Q2 FY26. Our specialty chemicals business continued to scale up with the support of our Saykha facility and grew 92% to Rs. 72 crores from Rs. 37 crores a year ago. Our formulations business also had an excellent quarter, growing 58% from Rs. 82 crores in Q2 FY26 to Rs. 130 crores in Q2 FY27, led by exports which rose 73% year-on-year. Now, let's talk about some projects. Let me begin with our Methylamines facility at Saykha. During the quarter, the plant operated at around 72% utilization and captive consumption of our antidiabetic portfolio rose to around 85%. These gains in product mix, backward integration and cost efficiency are structural and they will stay with us even as the pricing environment normalizes over time. I would like to highlight how quickly this facility has come together. We commissioned it in September last year and within roughly a year, a large share of our key intermediates for metformin, which we earlier bought from outside, is now being made in-house. This gives us better control over the cost, quality and availability of inputs for one of our most important products and it strengthens our position as a dependable integrated supplier for our customers. We are now working to improve utilization of the other products at the site as well. At the Tarapur facility, the improvements we spoke earlier are now underway and we have started producing technical grade methyl salicylate as well. We have manufactured roughly around 85 tonnes so far in the last quarter. We are also expanding our USFDA approved block at Tarapur by building an adjacent block which will more than double its capacity. This expansion includes three new multipurpose plants which will give us the flexibility to make a wider range of products for regulated markets. We expect the project to take around 18 to 20 months with commercial production targeted towards the end of FY29. At Sarigam, we are increasing our metformin capacity from 1400 tons per month to 1700 tons per month with commercialization planned in early FY28. Alongside this, we are adding a dedicated 500 tonnes per month USFDA compliant block by the end of FY28. And our USFDA DMFs for metformin is under preparation. At our facility in Baddi in Himachal Pradesh, we are executing a brownfield expansion which involves utilizing an adjacent plot to nearly double the current oral solid dosage manufacturing capacity and support a long-term formulations revenue target. With a stronger, more integrated platform and capacity additions lined up at Tarapur, Sarigam, and Baddi, we enter the second half of the year with confidence. Once this block is approved, it is expected to open the door to many of the US and EU market customers. I would also like to share an update regarding our sustainability initiatives. Crisil has assigned Aarti Drugs an ESG rating of 61 for FY25-26 which places us in the strong category. We see this as recognition of the steady work our teams have put into environment, safety, and governance across our sites and we will continue to build on it. With that, let me take you through our financial performance. First, we will talk about consolidated financial highlights for Q2 FY27. Revenue stood at Rs. 829 crores as compared to Page 3 of 11 Aarti Drugs Limited November 04, 2026 Rs. 653 crores in Q2 FY26, reflecting a growth of 27% YoY. EBITDA stood at Rs. 138 crores versus Rs. 84 crores in Q2 FY26, recording a growth of 63% YoY. EBITDA margin stood at 16.6%, an expansion of 370 basis points on a YoY basis. PAT stood at Rs. 83 crores as compared to Rs. 45 crores in Q2 FY26, a growth of 83% YoY. PAT margin stood at 10.0%, an expansion of 310 basis points YoY. Now, let's speak about standalone business for Q2 FY27: Revenue stood at Rs. 709 crores versus Rs. 579 crores in Q2 FY26, a growth of 22% year-on- year. Standalone busines [Showing first 8,000 characters — download PDF for full document]