Q1FY27 Investor Presentation

Ref: ADL/SE/2026-27/31 August 1, 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: Q1FY27 Investor Presentation Please find attached herewith Q1FY27 Investor Presentation of the Company. 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 Q1 FY27 Investor Presentation August 2026 Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Aarti Drugs Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections. 01 Q1 FY27 Business & Financial Highlights 02 Company & Business Overview Table of Contents 22 03 Industry Overview 04 Key Strengths & Growth Drivers Historical Financial Performance Q1 FY27 Business & Financial Highlights Q1 FY27 Consolidated Financial Highlights Total Revenue1 EBITDA & EBITDA Margin1,2 PBT & PBT Margin1,2 12.6% 13.8% 8.7% 9.9% +19% +30% +35% 704 97 69 74 51 Q1 FY26 Q1 FY27 Q1 FY26 Q1 FY27 Q1 FY26 Q1 FY27 (Rs. Crs.) Segmental Revenue Therapeutic-wise Revenue3 11.7% 12.3% 11.9% 18.2% 3.5% 10.2% 18.5% 6.1% 72.5% 35.0% API Speciality Chemicals Anti-biotic Anti-inflammatory Anti-fungal Formulation Intermediates & Others Anti-protozoal Anti-diabetic Others Note: 1. All figures include other income 2. Q1 FY27 EBITDA and PBT includes an additional ~Rs. 2 crores expense of a CWIP write-off 3. Therapeutic revenue split represent split Within the API Segment; Includes sale to Pinnacle Life Science Consolidated Profit & Loss Statement Particulars (Rs. Crs.) Q1 FY27 Q1 FY26 YoY Q4 FY26 QoQ Net Revenue from Operations 702.8 590.5 19% 720.3 -2% Other Income 0.8 0.3 0.8 Total Revenue 703.6 590.8 19% 721.1 -2% COGS 427.6 373.4 450.4 Gross Profit 276.0 217.4 27% 270.7 2% Gross Margin (%) 39.3% 36.8% 250 bps 37.6% 170 bps Employee Expenses 36.5 30.8 32.3 Other Expenses 142.61 112.2 141.8 EBITDA 96.9 74.4 30% 96.6 0% EBITDA Margin (%) 13.8% 12.6% 120 bps 13.4% 40 bps Finance Costs 9.2 8.6 8.2 Depreciation 18.5 14.7 18.0 PBT 69.2 51.1 35% 70.4 -2% PBT Margin (%) 9.9% 8.7% 120 bps 9.8% 10 bps Taxes 19.1 -2.92 15.1 Profit After Tax 50.1 54.0 -7% 55.3 -9% PAT Margin (%) 7.1% 9.1% -200 bps 7.7% -60 bps Earnings Per Share (EPS) 5.49 5.91 6.05 Note: 1. Q1 FY27 Other Expenses includes an additional ~Rs. 2 crores of CWIP write-off 2. Q1 FY26 tax includes a principal tax refund of ~Rs.15 crores Management Commentary Commenting on the results, Mr. Adhish Patil, CFO & COO, of Aarti Drugs Limited said, “We began FY27 with a strong operational and financial performance, driven by a mix of volume growth and improved realizations across our API & Speciality Chemicals portfolio and disciplined execution. The quarter marked a recovery in the pricing environment compared to the previous year, while our continued focus on operational efficiencies and product mix supported profitability. Despite an uncertain and volatile global environment, Aarti Drugs delivered a robust quarter as production across our facilities continued without disruption, reflecting the resilience of our business model. EBITDA increased by 30% YoY to ₹96.9 crore, and EBITDA margins expanded by 120 basis points to 13.8%. Product mix optimization and operational efficiencies strengthened profitability. The demand outlook for our product portfolio looks encouraging. The company's USFDA and UK approvals for facilities remain important growth drivers, supporting expansion in regulated markets. Sayakha continued its planned ramp-up during the quarter, operating at nearly 65% utilization and progressively contributing to our backward integration capabilities. We are also expanding our oral solid dosage (OSD) capabilities through brownfield and adjacent plot developments in Baddi, Himachal Pradesh which is expected to double our production capacity. Operationally, we remain focused on improving capacity utilization, optimizing product mix and enhancing manufacturing efficiencies across our facilities. These initiatives, together with the continued ramp-up of Sayakha, are expected to progressively improve operating leverage and strengthen margin performance over the medium term. Looking ahead, global demand continues to remain resilient, and we aim to enhance ourselves on the regulatory-compliance front to continue to capitalize on opportunities. Alongside this, investments in process optimization, capacity enhancement, backward integration, and operational efficiencies remain a focus.” Consistent Volume Growth in the past 5 Years Pricing Growth/(Degrowth) Volume Growth Consistent volume growth over the years 7% 7% -18% Continuous fall in prices FY2022 FY2023 FY2024 FY2025 FY2026 leading to lower ASPs ✓ Revenue growth was impacted post Covid, primarily ✓ However, the company continued to gain volumes and due to industry-wide oversupply and sharp API price sustain customer relationships. As pricing stabilizes, erosion, led by the excessive dumping from China. the strong volume base provides operating leverage Significant drop in realizations between FY24 and and positions the company well for recovery in FY26 impacted company’s topline. revenue and profitability. Note: 1. Figures on standalone basis Company & Business Ov [Showing first 8,000 characters — download PDF for full document]