Aarti Pharma Q2 FY27 Results (NSE: AARTIPHARM)
Signal: Growth reaccelerated
The read
The earnings inflection is visible in standalone revenue, which rose 46.8% YoY to Rs. 61,258.69 lakh, and PAT, which rose 179.8% to Rs. 6,575.29 lakh, but the quality of the rebound is tempered by operating cash flow falling 68.1% YoY to Rs. 2,992.27 lakh and finance costs rising 40.2% to Rs. 1,495.09 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹610.45 Cr | +46.0% | +13.9% |
| EBIT margin | N/A |
P&L walk
Consolidated revenue increased to Rs. 61,045.10 lakh, up 46.0% YoY and 13.9% QoQ; the supplied consolidated statement does not disclose the remaining P&L lines needed to assess margin and profit conversion.
Key positives
- Consolidated revenue increased 46.0% YoY to Rs. 61,045.10 lakh and 13.9% QoQ, reversing the revenue decline seen in the company's Q1FY26-Q4FY26 history.
- Standalone PAT increased 179.8% YoY to Rs. 6,575.29 lakh, with basic EPS rising 180.0% to Rs. 7.25 and tracking profit growth closely.
- Standalone PPE of Rs. 1,40,922.92 lakh and CWIP of Rs. 30,824.48 lakh provide evidence that the asset base is expanding alongside depreciation of Rs. 3,052.67 lakh.
Key concerns
- Standalone operating cash flow dropped 68.1% YoY to Rs. 2,992.27 lakh, well below the Rs. 6,575.29 lakh quarterly PAT, with working-capital changes consuming Rs. 21,503.82 lakh in H1FY27.
- Finance costs rose 40.2% YoY to Rs. 1,495.09 lakh, faster than revenue growth of 46.8% only marginally below it and 16.1% sequentially.
- The supplied consolidated P&L does not disclose consolidated PAT, EBITDA or EPS, limiting assessment of group-level profit conversion despite consolidated revenue growth of 46.0% YoY.
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