Slides
Page 1
Aarti Drugs Limited Q1 FY27 Investor Presentation August 2026
Page 2
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. 2
Page 3
Table of Contents 3 01 02 03 04 05 Q1 FY27 Business & Financial Highlights 04 09 22 25 33 Company & Business Overview Industry Overview Key Strengths & Growth Drivers Historical Financial Performance
Page 4
Q1 FY27 Business & Financial Highlights
Page 5
Q1 FY27 Consolidated Financial Highlights 5 12.6% 13.8% 8.7% 9.9% 591 704 Q1 FY26 Q1 FY27 +19% 51 69 Q1 FY26 Q1 FY27 +35% 74 97 Q1 FY26 Q1 FY27 +30% Total Revenue1 EBITDA & EBITDA Margin1,2 PBT & PBT Margin1,2 (Rs. Crs.) 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 72.5% 12.3% 11.7% 3.5% API Formulation Speciality Chemicals Intermediates & Others 35.0% 18.5% 11.9% 18.2% 10.2% 6.1% Anti-biotic Anti-protozoal Anti-inflammatory Anti-diabetic Anti-fungal Others Segmental Revenue Therapeutic-wise Revenue3
Page 6
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 6 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
Page 7
Management Commentary “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.” Commenting on the results, Mr. Adhish Patil, CFO & COO, of Aarti Drugs Limited said, 7
Page 8
Consistent Volume Growth in the past 5 Years 8 -13 10% FY2022 5% FY2023 -18% FY2024 FY2025 -3% FY2026 7% 5% 11% 10% 7% Pricing Growth/(Degrowth) Volume Growth Note: 1. Figures on standalone basis ✓ Revenue growth was impacted post Covid, primarily due to industry-wide oversupply and sharp API price erosion, led by the excessive dumping from China. Significant drop in realizations between FY24 and FY26 impacted company’s topline. ✓ However, the company continued to gain volumes and sustain customer relationships. As pricing stabilizes, the strong volume base provides operating leverage and positions the company well for recovery in revenue and profitability. Continuous fall in prices leading to lower ASPs Consistent volume growth over the years
Page 9
Company & Business Overview
Page 10
Leadership in API Manufacturing 10 Manufacturing Facilities 14 MT/Monthly Capacity 6,876 Finished Products 80+ API Molecules 50+ Employees 2,200+ Export Revenue ~38% Sq.m. Plant Area 1,59,500+ Presence across countries 100+ Largest producer of Nimesulide in the world Largest producer of Ketoconazole in the world Largest producer of Metronidazole Benzoate in the world Largest producer of Tinidazole in the world Largest producer in Fluoroquinolones group in the world One of the leading producers of Metformin in the world Largest producer of Metronidazole in India 1 2 3 4 5 6 7 Over a decade, API manufacturing has transitioned towards highly regulated, specialized business
Page 11
Diversified Presence across Segments Active Pharmaceuticals Ingredients (API) ✓ Leading API producer with 50+ molecules across therapeutic categories including antibiotics, antiprotozoals, anti-inflammatories, anti-diabetics, and anti-fungals ✓ Global Leader: • Largest manufacturer of 5 molecules globally ✓ API Infrastructure: • 9 manufacturing units contributing ~92% of total revenues • Installed capacity: 48,204 MTPA Formulations ✓ Diversified into formulations in 2014 via wholly owned subsidiary. ✓ Flexible manufacturing model: In-house + outsourced production backed by strong R&D ✓ UKMHRA / PICS approved ✓ WHO-GMP approved plant in Baddi, Himachal Pradesh ✓ Oncology formulation is USFDA approved ✓ Installed capacity: • 3 billion tablets • 300 million capsules Specialty Chemicals, Intermediates & Others ✓ Backward integrated to supply intermediates for antibiotics, antifungals, anti-inflammatories, and cardiovascular APIs. ✓ Manufacturer of specialty chemicals in Benzene and Chloro-sulphonic chemistries ✓ Installed capacity: 34,308 MTPA Presence Across APIs, Formulation, Specialty Chemicals, Intermediates Segments 11
Page 12
Diversified Product & Client Mix Presence across Segments, Geographies, API Therapies & Customers to ensure Growth and Risk Minimization ▪ API business contributes 77% of sales in FY26 ▪ Focus on increasing contribution from Speciality Chemicals, Intermediates & Others, going forward Segmental Mix ▪ Top 5 therapies contributes 95% of API sales in FY26 ▪ Anti-biotic products contributes highest at 37% to API sales in FY26 ▪ Leaders in Domestic market in most of top 10 products ▪ Domestic-Export mix at 62% for FY26 ▪ Presence across 100+ countries ▪ None of the region contributes more than 2/3rd of the revenue with Asia contributing the highest at 49% of total sales ▪ Domestic: Largest client contributes ~4% of domestic sales whereas top 10 clients contribute ~25% ▪ Exports: Largest client contributes ~7% of exports sales whereas top 10 clients contribute ~27% Geographic Mix API Therapy Mix Customer Mix Expanding Product Portfolio Geographic Expansion Diversified Customer Base ▪ Growth ▪ Risk Minimization 12
Page 13
Journey Crossed Rs. 2,500 crores Consolidated Turnover Listed On National Stock Exchange of India Limited 2003 Crossed Rs. 1,000 crores turnover Expanded into the formulations segment with our 100% subsidiary Pinnacle Life Science Private Limited 2014 2022 Incorporation 1984 One of our facilities got approved by the USFDA 2008 Amalgamation of Rupal Chemical Industries Ltd, Rashesh Chemicals & Pharmaceuticals Ltd, Manjarati Chemicals Pvt. Ltd, Manjarati Plastisizer Pvt. Ltd, Effective Chemicals Pvt Ltd, Star Aluminium Industries Ltd and AvezWire Industries Ltd. 1996 Listed on BSE Limited 1993 Forayed into the personal care segment with the commissioning of a greenfield project for dermatology products at Tarapur 2024 2025 Capex for Greenfield project at Sayakha, Gujarat & Tarapur completed Entered into share subscription and shareholders agreement with Prozeal Green Power Pvt Ltd. for setting up captive solar power plants in Gujarat and Maharashtra Surpassed a consolidated turnover of Rs. 2,000 Crores Pinnacle Life Science Private Limited surpassed a turnover of Rs. 200 Crores Surpassed a Profit After Tax (PAT) of Rs. 200 Crores 2021 13
Page 14
Manufacturing Footprint 14 ✓ The capacity of Multi- purpose plant ranges from kilograms to multi tons levels ✓ Long term experience of Multi-step synthesis and fractionations at high temperatures ✓ Total reaction capacity in excess of 1300 KL, consisting of SS and GL reactors across its units, varying from 0.5 KL – 18 KL Maps not to scale . All data , information , and maps are provided " as is " without warranty or any representation of accuracy E-22 ▪ Australian Government – Department of Health and Ageing - Therapeutic Goods Administration ▪ EUGMP / WHO-GMP / Japanese Accreditation ▪ USFDA* G-60 ▪ ANVISA-Brazil ▪ WHO-GMP ▪ COFEPRIS-MEXICO E-21 ▪ WHO-GMP ▪ K-FDA(Korean FDA) N-198 EUGMP, WHO-GMP & ISO Certification K-40 WHO-GMP / COFEPRIS W-61 EUGMP & WHO-GMP E-120 WHO-GMP E-9/3 ISO-9001:2008 T-150 Intermediate ISO Certification Baddi Pinnacle Plant Formulation Plant WHO-GMP Sarigam-1 WHO-GMP Sarigam-2 WHO-GMP/ COFEPRIS/CEP G61/62 ISO certification Capacities (MT) 2022-23 2023-24 2024-25 2025-26 Installed 51,126 57,179 61,053 82,512 Production 38,215 41,116 44,915 53,139 Captive 9,382 9,864 11,621 13,208 Net Production 28,834 31,251 33,294 39,931 Sayakha WHO-GMP
Page 15
Diversified Geographic Presence 15 Presence in 100+ Countries across 6 Continents ensures diversification and risk minimization Mexico Brazil Nigeria Egypt Türkiye Russia China Bangladesh Switzerland UAE Europe 12% FY25 12% FY26 Asia 52% FY25 49% FY26 North America 11% FY25 15% FY26 Latin America 14% FY25 12% FY26 Africa 11% FY25 12% FY26 73% 27% Regulated Semi-Regulated Market Segmentation Maps not to scale . All data , information , and maps are provided " as is " without warranty or any representation of accuracy Top 10 Export Destinations FY26
Page 16
16 Our Esteemed Clientele
Page 17
Our Vision & Mission 17 To be the Preferred Global Supplier of Bulk Drugs by: ✓ Ensuring consistent quality, timely delivery, and competitive pricing ✓ Offering customized, customer- centric solutions ✓ Adopting cost-effective, safe, and flexible manufacturing practices ✓ Upholding high business ethics in all operations ✓ Continuously upgrading technology and developing new products To achieve global market leadership by: ✓ Driving product growth and innovation ✓ Fostering a winning culture rooted in ethics, values, and collaborative competition ✓ Delivering excellence in customer service, quality, and R&D Aarti Drugs Limited has a strong presence across multiple segments with healthy financial standing
Page 18
Key Executive Management 18 Shri Uday M. Patil Executive Director • Associated with Company since October 2000 • Has over 36 years of experience in factory administration. • Specializes in liaisoning with various Government and Semi- Government bodies Shri Adhish P . Patil Chief Financial Officer & Chief Operating Officer • Has 18 years of experience across Manufacturing, Finance, Investor Relations, Compliance, Consulting, and IT in the Pharma and Consulting sectors • Named among India’s Top 100 CFOs in 2014 and Top 200 CFOs in 2023 by StartupLanes Shri Vishwa H. Savla Managing Director, Pinnacle Life Science Private Limited • Actively involved in operations of Pinnacle and Aarti Drugs since the inception of the formulation business • Specializes in Strategy Management, Export Business, and Market Research in the formulations segment Shri Prakash M. Patil Chairman, MD & CEO • Has over 25 years of experience in the chemical & pharmaceutical industry • Instrumental in driving the company’s strategic direction, project execution, and operational excellence • Actively involved in business development, innovation, and expanding global reach Shri Harshit M. Savla Joint Managing Director • Associated with the company since 1987 • Brings over 36 years of experience in Finance, Exports, and Administration • Played a key role in expanding the Company’s API and Formulation businesses Shri Rashesh C. Gogri Managing Director • Brings over 21 years of experience in Production, Marketing, and Project Implementation in the Chemical and Pharma sectors • Also serves as Vice Chairman & Managing Director of Aarti Industries Ltd and Chairman of Aarti Pharmalabs Ltd • One of the Founder Promoters of the Company • Has 50+ years of experience across Projects, Operations, Process Development, and Marketing (domestic & international) in the Chemical and Pharma sectors • Offering strategic guidance to the Board Shri Chandrakant V. Gogri Chairman Emeritus Shri Harit P . Shah Executive Director • Associated with Company since September 1995 • Has over 36 years of experience in Sales, Purchases, and Exports • Overlooks oversees domestic sales and export operations • Possesses deep knowledge of the pharmaceutical industryMembers of Board
Page 19
Independent Directors Shri Ankit V. Paleja Independent Director • A qualified lawyer with 16 years of legal experience • Currently a Partner at Crawford Bayley & Co. (Advocates & Solicitors) • Specializes in Equity Investments, M&A, Banking & Finance, and Corporate Transactions Smt. Neha R. Gada Independent Director • Chartered Accountant and certified Insolvency Professional • Brings over 21 years of experience in Securities Law and Corporate Law compliance • Co-founder of Dhhanish Advisors Pvt. Ltd. Shri Sandeep M. Joshi Independent Director • Holds a Chemistry degree from Mumbai University and an MBA from Symbiosis Institute of Business Management, Pune • Has 25 years of experience in export marketing and business development in both Indian and international companies Prof. Bhaskar N. Thorat Independent Director • Holds M. Chem. Engg. and Ph.D. in Chemical Engineering from the Institute of Chemical Technology (ICT), formerly UDCT • Senior Professor of Chemical Engineering at ICT, Mumbai • Has authored over 100 research publications in reputed international journals Shri Hasmukh B. Dedhia Independent Director • Chartered Accountant with DISA (ICAI) certification • Brings over 40 years of experience in Audits, Due Diligence, Consultancy, and Business Restructuring • Expert in Internal Auditing and strengthening internal controls Shri Ajit E. Venugopalan Independent Director • Chartered Accountant by qualification • Banking professional with over 30 years of experience in the Banking and Finance domain 19
Page 20
ESG Initiatives S o c i a l G o v e r n a n c e E G S E n v i r o n m e n t • Zero Liquid Discharge (ZLD) • Carbon Footprint Reduction • Woman Empowerment • Healthcare Initiatives • Fair Trade Practices • Stakeholder Responsibility • Risk Management Governance • Adherence to Regulatory Compliance • Efficient Utilities & Green Technologies • Eco-friendly Packaging • Gender Diversity • Board Composition and Governance 20
Page 21
Awards and Accolades 1991 CHEMEXCIL Outstanding Performance in Export 2001 CHEMEXCIL Outstanding Performance in Export, Organization of Pharmaceutical Product, Best Vendor 2005-06 AVAYA GLOBAL CONNECT Customer Responsiveness 2009 CHEMEXCIL Outstanding Performance in Export 2012 CHEMEXCIL Outstanding Performance in Latin American Export 2013 ABBOTT Best Vendor of the year 2014 CHEMEXCIL Government of India (Ministry of Commerce and Industry) Certificate of Recognition - Star Export House 2015-19 ABBOTT Business partner of the year 2020-23 PHARMEXCIL Outstanding Performance in Export 2024 EcoVadis assessment score is 69, secured the Silver Medal 21
Page 22
Industry Overview
Page 23
Indian Pharmaceutical Industry 23 • India remains the largest global supplier of generic medicines, catering to 20% of global generic drug demand and supplying 60% of the world’s antiretroviral (ARV) drugs • The country fulfills a significant share of demand from the US (40%), the UK (25%), and global health organizations like UNICEF (30%) Largest Supplier of Generic Drugs Exports Driven Growth • Pharmaceutical exports grew to USD 30.5 billion in FY 2024–25, registering a 9.4% year-on-year increase • This was supported by a diversified portfolio and expansion into new geographies • Formulations and biologics continue to account for 75% of total exports • The United States remains the largest export destination, followed by markets such as the UK, Brazil, France, and South Africa API Leadership • India is ranked as the third-largest API market in the Asia-Pacific region, enjoying an 8% market share in the global market India produces 60,000+ generics drugs across 60 therapeutic categories and supplies 500+ APIs 55 125 425 2025 2030E 2047E +17.8% +7.5% Indian Pharmaceutical Market Value (in USD Bn) India’s Contribution to global generic drug exports20% API market (third largest globally)8% share Contribution to pharma market by cardiac, gastrointestinal and anti- diabetic segments 34% Market size of Active Pharmaceutical Ingredient (API) industry in India from 2016 to 2020 with estimates until 2026 574 623 676 735 798 1,271 1,307 1,936 FY16 FY17 FY18 FY19 FY20 FY25 FY26E FY30E Rs. Billion Source: KPMG, Indian Pharma Outlook, Global Market Estimates
Page 24
Multiple Triggers will lead to high Growth Momentum 24 ▪ Rising domestic population ▪ Higher Insurance Coverage penetration ▪ 100% FDI in the pharmaceutical sector under automatic route ▪ Increased government spending on hospitals and healthcare ▪ Rs. 15,000 crores Production-Linked Incentive (PLI) Scheme for Enhancing India’s Manufacturing Capabilities ▪ Atmanirbhar Bharat scheme for making India self reliant ▪ Focus to develop new complex generic drugs, supplemented by the New Drugs and Clinical Trial Rules, 2019 and the Atal Innovation Mission. ▪ Artificial intelligence will help the pharmaceutical industry to design new and automated algorithms which will help to achieve faster, precise, accurate, and repeatable results ▪ Quality services at marginal costs compared to US, Europe, and South Asia ▪ Expertise in low-cost generic patented drugs and a movement towards end-to-end manufacturing Robust Domestic Demand Government Support Innovation and R&D Increased Investments Technology Cost Advantage
Page 25
Key Strengths & Growth Drivers
Page 26
Unique Competitive Position Economies of Scale Good Purchasing Power Long-term relationship; repeat business from customers 4 decades of experience Superior Quality Client Diversification Strong International presence Less regional dependence Known brand in API space Process improvement R&D, cost leadership Phase-Wise Capex to mitigate debt trap risks Green field projects High entry barriers Reliable in terms of quality and timely deliveries. Honouring commitments in changing market conditions Thus, fundamentals right from procurement, production till sales have a strong foundation and sound setup Newer capacities established since last two years will help grow top-line Sufficient land parcels in industrial zones in Maharashtra and Gujarat to take care of green field projects in next 3 to 4 years • High regulatory standards • Capex requirements • Long gestation period • R&D costs 26
Page 27
Aarti Drugs is well poised to overcome industry challenges Specialized player in the highly challenging Pharmaceutical Industry Well placed to capitalize on future growth opportunities Industry’s Unique Challenges ✓ High R&D costs ✓ Long gestation period ✓ Time consuming approval procedures ✓ Demands large variety and small batch size orders ✓ Highly complex manufacturing ✓ Stringent quality & compliance requirements in developed markets ✓ Highly competitive industry Aarti Drug’s Core Competencies ✓ Demonstrated manufacturing excellence for 4 decades ✓ R&D focused, driven by continuous improvement and innovation ✓ Ability to consistently deliver high quality products on timely basis ✓ Meeting stringent regulatory & compliance requirements of domestic & international regulators ✓ Long standing relationships with leading pharmaceutical companies ✓ Fully integrated facilities – lower outside dependence for sourcing raw materials 27
Page 28
Growth Strategies ₹200 Crore Investment Invested over last 24 months solely for oncology development and pipeline growth Premium Pricing and Technical Moat Shifting toward specialized chemistry products that carry premium pricing than standard APIs and may enjoy entry barriers Regulated Market Sales Developing a robust product pipeline for regulated global markets, leveraging USFDA, MHRA and EDQM approvals Therapeutic Expansion Expanding beyond traditional APIs into complex medicine categories for global patients Strategic pivot to scaling Regulated Market Sales through expansion of Formulations and Oncology Product Portfolio ✓ Aarti Drugs manufactures APIs but also has a formulation business (via Pinnacle Life Sciences) that makes oral solid dosage (OSD) products ✓ Now expanding into oncology and other therapeutic-area medicines ✓ OSD business already has EDQM approvals and the oncology facility has USFDA and UK-MHRA approvals ✓ Deeper penetration into regulated-markets with better realizations ✓ Aarti Drugs is currently pursuing expansion into new geographies ✓ Total ~330 regulatory filings submitted across 16 targeted geographies ✓ Commenced commercial operations in Latin America and a few African markets ✓ Continuing to undertake new registrations in export markets and government tenders 28
Page 29
Growth Strategies Capex of Rs. 600 crores complete; Boosting capacity, margins Brownfield / Greenfield Capacity Expansion Backward Integration De-bottlenecking Revenue Growth Higher Margins Higher RoCE Asset Turn - 2.5x Revenue: Rs. 1,200 crores + Captive consumption: Rs. 300 crores Commencement of Operations o Operationalized two greenfield facilities o Sayakha Amines o Tarapur Salicylic acid o Sayakha facility manufactures Di-, Mono-, and Tri-methylamines (DMA, MMA, TMA) and derivatives, which are key inputs for APIs such as Metformin. o The facility is strategically aimed at backward integration o leverage o Tarapur facility operations scale-up in progress 01 Anti-diabetic o Current capacity: ~1,400 TPM o Scaling to: 2,000–2,200 TPM (existing site) o Additional 800 TPM brownfield expansion underway o ~500 TPM targeted for USFDA markets o Construction completion expected in 6- 8 months o Expected impact includes margin expansion, cost control, and improved operating o Launch of Gliptins to further enhance category 02 Antiprotozoals o Enhancing the position in the Indian market focused on selected products, aimed to increase production capacity by ~40% o Secured approval to market the products in China, expanding into new territories o Pursuing incremental expansions and improving downstream products within the antiprotozoals segment 03 Anti-inflammatory o Targeting highly regulated markets, undertaken the construction of a multi-purpose facility o The brownfield expansion of existing facilities is underway for few therapeutic drugs in this segment o Expected annual revenues of ~Rs. 35-50 Crores based on product selection 04 Capacity Expansion and Backward Integration leading to improved Asset turns 29
Page 30
Product Pipeline API Finished Dosages As of 31-Mar-26 Product Under Development 2 2 6 9 0 7 1 Anti Fungal Anti Diabetic Anti Inflammatory Carboxylation based products Methyl Amine based products Specialty Chemicals Pharma RM Product Under Pipeline 1 1 8 11 3 Antioxident Antifungal Cosmetic and Skin Intermediates Methyl Amine Based Products Product Under Development : New Age Molecules For regulated Markets Product Under Development: LATAM & Emerging Markets 3 5 Anti-Coagulant Anti Diabetic 4 11 1 1 1 1 Anti-Diabetic Anti-Protozol Benzodiazepines HMG-CoA reductase inhibitors Anti-Bacterial Angiotensin Receptor blockers Gastro Product Under Development 1 1 3 1 1 1 Anti-Platelet Anticonvulsants Antiretroviral Anti-Depressants Leukotriene Receptor Antagonists Antipsychotics Number of Products 30
Page 31
Strong R&D thrust on continuous innovation 2 Doctorates 75 Master Graduated (M.Sc.) 3 Technicians Rs. 66 Crores R&D Spends (FY26) 38 Graduates (B.Sc.) & Engineers R&D Center at Tarapur R&D Center at Turbhe Key Highlights • Supports development of complex generics for in-house formulation business • Developing complex oral solids for Regulated as well as Emerging markets ✓ Well supported by in-house project management team to ensure timely implementation of new products on commercial scale ✓ Developed 30+ APIs (new and existing) in last 5 years ✓ Developing new age Formulation products for Europe, USA, Australia, Brazil, Canada & Chile for Day 1 launches ✓ Plans to expand R&D capabilities to develop complex Semi solids (creams & ointments) as well as Oral liquids ✓ Majority of products developed with integrated API provides an end-to-end control • Supports manufacturing facilities at Tarapur and Sarigam on API process development • Pilot plant used for kilo scale manufacturing • Recognized by Department by Science and Industrial Research (DSIR) Government of India • Frequent visits of Experts and Professors from ICT and Council of Scientific and Industrial Research (CSIR) for guidance for product development 31
Page 32
Robust Balance Sheet 32 Strong net operating cashflow generation Low leverage provides Balance Sheet strength Strong cashflows led to robust Balance Sheet giving financial flexibility for Growth 70 134 359 245 254 FY22 FY23 FY24 FY25 FY26 1,036 1,193 1,282 1,549 538 609 564 605 566 0.37 -0.8 -0.6 -0.4 -0.2 0.0 0.2 0.4 0.6 0 200 400 600 800 1,000 1,200 1,400 1,600 0.52 FY22 0.51 FY23 0.44 FY24 0.44 FY25 FY26 1,369 Net Debt to Equity (X) Equity Net Debt Net Operating Cashflow Debt to Equity Profile (in Rs. Crore) (in Rs. Crore)
Page 33
Historical Financial Performance
Page 34
Historical Consolidated Performance 2,500 2,718 2,533 2,403 2,568 FY22 FY23 FY24 FY25 FY26 341 308 321 303 312 FY22 FY23 FY24 FY25 FY26 205 166 172 168 195 FY22 FY23 FY24 FY25 FY26 Total Revenue EBITDA & EBITDA Margin PAT & PAT Margin (in Rs. Crore)(in Rs. Crore)(in Rs. Crore) 34 8.2% 6.1% 6.8% 7.0%13.7% 11.3% 12.7% 12.6% 22.1 18.0 18.6 18.4 21.4 FY22 FY23 FY24 FY25 FY26 Earnings Per Share (in Rs.) 1,036 1,193 1,282 1,369 1,549 FY22 FY23 FY24 FY25 FY26 Net Worth (in Rs. Crore) 0.5 0.5 0.4 0.5 0.4 FY22 FY23 FY24 FY25 FY26 FY22 FY23 FY24 FY25 FY26 20.5% 14.9% 14.2% 12.5% 11.5% FY22 FY23 FY24 FY25 FY26 21.0% 14.6% 13.9% 12.3% 12.6% Leverage (X) RoCE (%) RoE (%) Note: EBITDA includes other income 12.1% 7,6%
Page 35
Historical Profit & Loss Statement 35 Particulars (Rs. Crore) FY26 FY25 FY24 FY23 FY22 Net Revenue from Operations 2,565.3 2,387.0 2,528.6 2,716.1 2,488.6 Other Income 2.4 16.4 4.0 2.2 11.3 COGS 1,618.7 1,542.1 1,677.7 1,888.5 1,688.8 Gross Profit 949.0 861.3 854.9 829.8 811.1 Gross Margin (%) 37.0% 36.1% 33.8% 30.6% 32.6% Employee Expenses 129.3 112.1 102.3 92.0 82.8 Other Expenses 508.1 445.8 432.1 429.9 387.5 EBITDA 311.6 303.4 320.5 307.9 340.8 EBITDA Margin (%) 12.1% 12.7% 12.7% 11.3% 13.7% Finance Costs 33.7 35.9 33.5 33.3 20.7 Depreciation 67.0 55.8 51.4 50.3 50.0 PBT 210.9 211.8 235.5 224.2 270.0 Taxes 16.0 43.7 63.9 57.8 65.0 Profit After Tax 194.9 168.1 171.6 166.4 205.0 PAT Margin (%) 7.6% 7.0% 6.8% 6.1% 8.2% Earnings Per Share (EPS) 21.36 18.35 18.56 17.97 22.12 Note: 1. Total Revenue, EBITDA and PAT exclude Rs.11.34 crore of interest income on IT refunds receivable from the Income Tax Department for FY25 2. FY26 tax figure includes IT Tax refund of Rs.16.38 crores
Page 36
Consolidated Balance Sheet 36 Equities & Liabilities (Rs. Crore) Mar-26 Mar-25 Mar-24 Mar-23 Mar-22 Equity Equity Share capital 91.3 91.3 91.9 92.6 92.6 Other Equity 1,457.6 1,277.7 1,189.6 1,099.8 943.8 Non Controlling Interest 0.4 0.3 0.4 0.2 -0.1 Total Equity 1,549.2 1,369.3 1,282.0 1,192.6 1,036.3 Financial liabilities (i) Borrowings 256.9 284.0 275.3 204.7 138.5 (ii) Lease Liabilities 0.9 1.7 0.9 0.4 1.9 (iii) Other Financial liabilities 0.2 0.2 0.2 12.4 9.6 Deferred tax liabilities (Net) 81.3 78.2 75.7 71.0 72.4 Provisions 4.6 4.3 2.7 3.0 9.2 Total Non Current Liabilities 343.8 368.4 354.9 279.3 231.6 Financial liabilities (i) Borrowings 318.0 328.2 287.1 401.8 399.8 (ii) Lease Liabilities 0.9 1.2 0.9 2.0 2.6 (iii) Trade Payables 477.9 416.1 425.5 480.3 468.7 (iv) Other financial liabilities 22.8 20.2 26.3 14.0 0.0 Provisions 8.1 4.3 3.0 4.4 3.7 Other current liabilities 87.4 66.9 51.6 42.8 65.2 Current tax liabilities (Net) 0.0 0.0 1.2 4.2 0.0 Total Current Liabilities 915.1 837.0 795.5 949.5 940.1 Total Equity and Liabilities 2,808.1 2,574.7 2,432.4 2,421.4 2,208.0 Assets (Rs. crores) Mar-26 Mar-25 Mar-24 Mar-23 Mar-22 Non Current assets Property, Plant and Equipment 1,068.3 856.3 808.2 673.2 685.7 Capital work in progress 213.8 330.2 260.9 210.4 76.7 Intangible assets 16.4 7.1 1.2 0.8 0.2 Right to use assets 1.7 2.7 1.8 2.2 4.1 Financial Assets (i) Investments 27.3 22.4 20.0 18.8 19.5 Other non-current assets 20.0 17.6 19.7 23.7 28.4 Total Non Current Assets 1,347.5 1,236.3 1,111.6 929.1 814.6 Current Assets Inventories 490.8 472.9 485.9 516.3 525.9 Investments (i) Trade receivables 829.9 751.2 704.6 864.8 749.9 (ii) Cash and Bank Balances 8.8 7.6 9.4 9.0 22.3 (iii) Other Financial Assets 15.5 15.1 11.3 12.0 12.6 (iv) Loans 0.7 0.8 0.2 0.3 0.0 Current Tax Assets -7.1 10.0 0.0 0.0 0.0 Other current assets 122.2 80.9 109.3 89.4 82.6 Total Current Assets 1,460.6 1,338.4 1,320.7 1,492.3 1,393.4 Total Assets 2,808.1 2,574.7 2,432.4 2,421.4 2,208.0
Page 37
Consolidated Cash Flow statement 37 Particulars (Rs. Crore) FY26 FY25 FY24 FY23 FY22 Net Profit before Tax and Extraordinary items 210.9 211.8 235.5 224.2 270.0 Adjustments for: Non-Cash Items / Other Investment or Financial Items 102.8 84.3 83.0 85.2 70.4 Operating profit before working capital changes 313.7 296.1 318.5 309.3 340.4 Changes in working capital -64.2 3.6 102.8 -116.3 -187.4 Cash generated from Operations 249.4 299.7 421.3 193.0 153.0 Direct taxes paid (net of refund) 4.1 -55.1 -62.4 -59.7 -83.4 Net Cash from Operating Activities 253.5 244.6 358.9 133.3 69.6 Net Cash from Investing Activities -173.4 -164.6 -223.7 -164.0 -148.9 Net Cash from Financing Activities -77.4 -82.1 -136.0 16.5 92.0 Net Decrease in Cash and Cash equivalents 2.7 -2.2 -0.8 -14.1 12.8 Add: Cash & Cash equivalents at the beginning of the period 4.6 6.7 7.5 21.6 8.8 Cash & Cash equivalents at the end of the period 7.3 4.6 6.7 7.5 21.6
Page 38
Rewarding Shareholders over time Distribution Policy Considering various financial parameters, the Company may elect to distribute ~15% to 30% of Consolidated Net Profits Distributed ~Rs. 69.48 Crore as Dividend over last 7 years Distributed ~ Rs. 229.15 Crore through buyback of shares over last 7 years Distributed ~ Rs. 278 Crore in form of dividend & buyback of shares over last 7 years 38
Page 39
Thank You Company: Aarti Drugs Limited CIN: L37060MH1984PLC055433 Mr. Rushikesh Deole investorrelations@aartidrugs.com / +91 22 24048199 www.aartidrugs.co.in Investor Relations: Strategic Growth Advisors (SGA) CIN: U74140MH2010PTC204285 Mr. Deven Dhruva / Ms. Krisha Shrimankar deven.dhruva@sgapl.net / krisha.shrimankar@sgapl.net Tel: +91 98333 73300 / +91 87797 99281