Aarti Drugs Q1 FY27 Results (NSE: AARTIDRUGS)
Signal: Growth reaccelerated
The read
Revenue growth accelerates to +19% YoY (from ~6-9% in recent quarters), but PAT slips 6.9% due to a one-off CWIP write-off (₹2.09 Cr) and higher tax. EBITDA margin flat YoY at 14.1% — no margin expansion despite revenue growth, as cost of materials and other expenses rose in tandem. The earnings quality is clean except for the exceptional item. The standalone results are stronger (PAT +4.5% YoY), suggesting subsidiaries may have dragged the consolidated bottom line.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹702.78 Cr | 19.0% | -72.6% |
| EBIT | ₹80.55 Cr | 35.0% | |
| Net profit | ₹50.17 Cr | -6.9% | |
| EPS | ₹5.49 | -7.1% | |
| EBIT margin | 14.1% |
P&L walk
Revenue grew 19% YoY to ₹702.78 Cr; EBITDA margin stayed flat at 14.1%; PAT fell 6.9% YoY due to higher tax and exceptional loss of ₹2.09 Cr. Operating profit (EBIT) rose 35% YoY, but bottom line was impacted by a write-off.
Segments
Company operates single pharmaceutical segment; no segment split to analyze.
Key positives
- Consolidated revenue grew 19.0% YoY to ₹702.78 Cr, accelerating from recent quarters (Q4FY26 +6.3%, Q3FY26 +8.1%).
- Standalone EBITDA margin improved to 14.7% vs prior periods, indicating better cost control in parent operations.
- Exceptional loss of ₹2.09 Cr is a one-time write-off of CWIP, not operational.
Key concerns
- Consolidated PAT declined 6.9% YoY despite 19% revenue growth — margins contracted due to stable raw material cost and higher other expenses.
- Exceptional item (CWIP write-off) impacted PAT by ₹2.09 Cr; without it, PAT would have been roughly flat YoY.
- QoQ revenue and profit dropped sharply (revenue -72.6%, PAT -74.3%) due to seasonal Q4 base effect and one-offs.
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