Analysts/Institutional Investor Meet/Con. Call Updates

Ref: ADL/SE/2026-27/36 August 7, 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 Q1 FY27 Earning Conference Call Please find attached herewith transcript of Q1 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 Q1 FY27 Earnings Conference Call” August 03, 2026 E&OE - This transcript is edited for factual errors. In case of discrepancy, the audio recordings uploaded on the stock exchange on 3rd August 2026 will prevail MANAGEMENT:  Mr. Adhish Patil – Chief Operating Officer and Chief Financial Officer – 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 – Pinnacle Life Science Private Limited Page 1 of 13 Aarti Drugs Limited August 03, 2026 Moderator: Ladies and gentlemen, good day and welcome to Q1 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 the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Before we begin, a brief disclaimer: this conference call contains forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. Adhish Patil, COO and CFO, from Aarti Drugs Limited. Thank you, and over to you, Mr. Patil. Adhish Patil: Good morning everyone and thank you for joining us today for Aarti Drugs Q1 FY27 earnings discussion. Joining me today are Mr. Harshit Savla, Joint Managing Director; Mr. Harit Shah, Whole-Time Director; Mr. Vishwa Savla, Managing Director of Pinnacle Life Science Private Limited, along with our Investor Relations Advisors SGA. We hope you have had the opportunity to go through our financial results and investor presentation for the quarter ended 30th June 2026, which have been uploaded with the stock exchanges and are also available on our website. Before discussing our quarterly performance, let me begin by providing some perspective on the operating environment during the quarter. The first quarter of FY27 continued to be influenced by a dynamic global landscape. Geopolitical developments, particularly the ongoing conflict in West Asia, remained an important factor affecting international trade, logistics, and supply chains. The industry also continued to witness elevated freight costs on certain routes, longer procurement cycles in a few regions, and increased volatility in raw material pricing. At the same time, these developments created a favorable pricing environment across several API products as availability tightened in certain markets and customer prioritized supply reliability. API prices witnessed an upward movement across the industry. This translated into significantly better realizations for us during the quarter. While such disruptions can often create uncertainty, they also reinforce the importance of being a dependable and integrated manufacturing partner. Customers today are increasingly looking beyond just pricing; they are placing greater emphasis on supply security, manufacturing consistency, and long-term partnerships. These are areas where Aarti Drugs has built strong capabilities over several years, and we believe this positions us well to capitalize on evolving market opportunities. What is particularly encouraging is that despite this challenging external environment, our operations remained completely stable throughout the quarter. We did not experience any production disruptions, material shortages, or supply-related interruptions. All our manufacturing facilities continued to operate efficiently, enabling us to Page 2 of 13 Aarti Drugs Limited August 03, 2026 meet customer commitments across both domestic and international markets without any significant delays. This operational resilience is a direct outcome of the investments we have made over the years in strengthening our manufacturing footprint, expanding our backward integration capabilities, and maintaining disciplined inventory and procurement practices. Moving to our business performance. I'm pleased to share that we delivered a strong start to the financial year. Our performance during the quarter was driven by a healthy combination of improved API realizations and volume growth across key products. Demand remained healthy across API and Spec Chem portfolio, supported by strong consumption across key therapeutic categories and continued traction in both domestic and international markets. Our exports business continued to perform well as customers increasingly sought reliable and compliant suppliers capable of ensuring uninterrupted deliveries. We also witnessed steady demand across our domestic formulations business. Equally important, our focus on cost optimization and manufacturing efficiencies continued to yield positive results, and we witnessed improvement in EBITDA margins in Q1 FY27. This margin expansion came despite continued pressure from higher raw material prices and elevated freight cost, highlighting the resilience of our operating models. Our regulatory track record also continues to strengthen our competitive position. Our manufacturing facilities continue to hold approvals from leading global regulatory authorities, including the USFDA and U.K. regulatory agencies. These approvals not only validate our quality systems and manufacturing standards, but also enable us to strengthen our presence in regulated markets over the long-term. Another area where we continue to make steady progress is our manufacturing expansion strategy. During Q1 FY27, our Sayakha facility continued its planned ramp-up and operated at nearly 65% utilization. This facility remains an important strategic investment for us. Beyond adding manufacturing capacity, Sayakha strengthens our backward integration capabilities, enhances supply chain reliability and provides us with greater control over key intermediates, especially for the antidiabetic segment. Once resolved and as utilization levels continue to improve, we expect the facility to contribute further towards operational efficiency and long-term margin improvement. Alongside Sayakha, we are also continuing to invest in expanding our formulation business. Our brownfield expansion at the Baddi facility in the adjacent land parcel is progressing as planned. Once completed, this project is expected to nearly double our oral solid dosage manufacturing capacity. This expansion is aligned with our long-term strategy of strengthening our formulations business, increasing manufacturing flexibility and creating additional capacity to support future growth opportunities across both regulated domestic and export markets. Page 3 of 13 Aarti Drugs Limited August 03, 2026 Overall, our capital expenditure philosophy remains disciplined and growth oriented. Every investment that we undertake is guided by clear focus of enhancing competitiveness, improving operational efficiency, supporting backward integration and creating long-term shareholder value. We remain confident that these investments will provide a strong foundation [Showing first 8,000 characters — download PDF for full document]