Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 3 Sep
Source: Bse
Aarti Drugs Limited (AARTIDRUGS)
Micro CapPharma stocks · Micro cap · NSE
Aarti Drugs Limited is a leading Indian API manufacturer with 50+ molecules across therapeutic categories, including antibiotics, antiprotozoals, and anti-inflammatories. The company has diversified into formulations via Pinnacle Life Science and specialty chemicals, with a global presence in over 100 countries.
Data qualityFresh enough for analysisQuote updated 21 Oct, 02:02 pm ISTDetails
Quote21 Oct, 02:02 pm IST
Base fundamentals14 Oct 2026 · screener
Latest result01 Aug, 12:50 am IST
Score21 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags02 May 2026
Coverage14/14 · 100%
Valuation2026-07-20 · Rf 6.8% · Pharma P/E 33.5 (n=187)
Technical timing lens
Trend score and candlestick chart
68BullishSMA20 -1.1% / mo · MACD − · sector +4.4pp vs Nifty 500 (3M)
Stock trend: 46
Sector RS: 100
Sector 3M: -1.7% vs Nifty 500 -6.1%
Pharma FPI tailwindFlow only
FPI equity flow was positive in both fortnights, but the sector index is below its 100-session average. View sector evidence
Technical chart
AARTIDRUGSD candles · FIT view+2.3%TODAY · PROVISIONALLatest price ₹388.00 on 2026-10-21
Today's candle is provisional from the latest intraday quote; completed-candle scans remain unchanged.
Bar
-2.0%
RSI
32
MACD hist
-3.46
52W pos
32%
2026-10-21O ₹396.00H ₹398.30L ₹385.00C ₹388.00Vol 77,609 shIntraday candle
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
AARTIDRUGSNifty PharmaNifty 500
- AARTIDRUGS
- -4.5%
- Nifty 500
- -5.6%
- Nifty Pharma
- -1.5%
- Vs Nifty 500
- +1.1 pp
Chart stats
19 Oct 2026- From 52W high
- -25.2%
- 52W range position
- 37%
- ATR (14)
- 3.4%
- Volume vs 20D
- 0.58x
- Avg traded value
- ₹7.6 Cr
- 20D price channel
- ₹387.9 - ₹450.2
₹534
₹319 - ₹534
₹13.5
Latest completed session
20-session average
25.3% annualized volatility
Research snapshot
What the evidence says now
Weak fundamentals, while price trend supports entry. This looks more like momentum/speculation than a clean fundamental investment setup.
Weak U-Score but strong trend: momentum may be ahead of fundamentals.
Suggested next step
Momentum only
Trend is strong but fundamentals do not support a clean investment thesis.
U-Score
Legacy · WATCHLIST36
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Bad15
Revenue +18.9% · PAT -7.4% YoY
Technical
Bullish68
Price trend and sector-relative-strength timing.
Valuation
Legacy model-308.8%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence76
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Jun 2026
Bad · 15/100PAT -7% YoY · Rev +19% YoY · margin expansion
Filed 31 Jul 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹703 Cr | +18.9% | -2.4% |
| EBITDA | ₹98 Cr | +32.4% | +2.1% |
| Operating margin | 14.0% | +100 bps | +100 bps |
| PAT | ₹50 Cr | -7.4% | -9.1% |
| PAT margin | 7.1% | -203 bps | -53 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 19.40
- P/B
- 2.41
- EV/EBITDA
- 10.69
- Market Cap
- 3743.00Cr
Profitability
- ROE
- 13.40%
- ROCE
- 12.00%
- ROA
- 6.79%
- Dividend Y
- 0.49%
Growth (CAGR)
- Revenue 5Y
- 4.00%
- EPS 5Y
- -7.00%
- Revenue 3Y
- -2.00%
- EPS 3Y
- 5.00%
Balance Sheet
- Debt/Equity
- 0.37
- Interest Coverage
- 9.79×
- Altman Z
- 4.04
- Book Value
- 170.00
Cash Flow
- FCF Yield
- 2.16%
- FCF Positive Y
- 8/5
- OCF
- 254.00 Cr
- EPS TTM
- 20.95
Shareholding
- Promoter Hold
- 54.43%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 42%
Financial History
Updated 20/10/2026
Revenue
₹ CrLatest: 2,565+7.5% vs prev
Net Profit
₹ CrLatest: 195+16.1% vs prev
Return on Equity
%Latest: 12.6+2.6% vs prev
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 32.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 falling (~1.9% over last month) — short-term momentum negative.
- RSI(14) at 32 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 27% off 52W high · 22% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Nifty 500 leadership
Relative Strength & Trend Stage
53
RS percentile
Stage 1 Base / Transition
1M return
-7.5%
3M return
-4.5%
6M return
+8.8%
1Y return
-17.0%
RS 1D
+4
RS 20D
-6
Sector rank
#1
Industry rank
#11
Stage evidence
- Price is within 1.7% of the 30-week proxy.
- The 30-week proxy changed +2.2% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
50-DMA
price below
200-DMA
price above
Sector
leading
Industry
leading
Relative-strength line vs Nifty 500 (base 100)
261 observations
19 Oct 2026Value 85.43+1.79%
RS vs Nifty 50085
Valuation & peers
U-Score 36 · legacy U-Score band WATCHLIST · valuation evidence and comparable companies
Valuation & peers
U-Score 36 · legacy U-Score band WATCHLIST · valuation evidence and comparable companies
WATCHLIST
Fundamental score breakdown
U band · WATCHLISTValuation7/30
Growth4/25
Quality3/20
Balance Sheet10/15
Cash Flow7/10
Piotroski
8/9 (+5)
Penalties
0
Raw sum
36
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
36/100 · legacy band WATCHLIST
Positive drivers
- Piotroski is strong at 8/9.
- Cash flow contributes 7/10 to the score.
- Balance sheet contributes 10/15 to the score.
Main drags
- Fair-value margin of safety is negative at -308.8%.
- Quality is weaker at 3/20; verify the latest quarterly trend.
- Growth is weaker at 4/25; verify the latest quarterly trend.
Sector valuation model
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Primary lens
PE and EV/EBITDA adjusted for product mix and R&D/pipeline quality.
Secondary checks
USFDA risk, launch pipeline, margin trend, domestic vs export mix.
Main risk check
Regulatory setbacks or one-off product cycles can distort valuation.
PE
19.4
PB
2.4
EV/EBITDA
10.7
ROE
13.4%
ROCE
12.0%
FCF Yield
2.2%
Debt/Equity
0.4
MoS
-308.8%
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 21 Oct 2026
v4.3-runtime-valuation
Final score
36
Previous: 36
Legacy U-Score band
WATCHLIST
Previous: WATCHLIST
Margin of safety
-308.8%
Previous: -320.8%
Score history
12 stored score snapshots. Latest stored move: +0 points.
21 Oct 2026
v4.3-runtime-valuation
35
35
35
35
36
36
36
36
36
36
36
36
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹283.08
-37.1% MoS
Growth-justified P/E
4.5
Growth-justified Value
₹94.9
-308.8% MoS
PEG
—
Comparable companies
Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
GRANULES
Large
Granules India Limited
Pharmaceuticals
match 144
37
33.9
13.8%
-238%
WATCHLIST
CONCORDBIO
Large
Concord Biotech Limited
Pharmaceuticals
match 143
27
52.1
12.5%
-506%
OVERVALUED
ADVENZYMES
Micro
Advanced Enzyme Technologies Limited
Pharmaceuticals
match 137
47
19.0
10.2%
-119%
FAIR VALUE
INDSWFTLAB
Small
Ind-Swift Laboratories Limited
Pharmaceuticals
match 133
34
51.5
4.0%
-16%
WATCHLIST
AARTIPHARM
Micro
Aarti Pharmalabs Limited
Pharmaceuticals
match 132
31
37.3
8.6%
+21%
OVERVALUED
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis under stressReviewed 2026-06-03T02:37:40.872Z
Management commentary snapshot
Q4 FY26 revenue grew 6% YoY to Rs. 721.1 Cr, with EBITDA flat at Rs. 96.6 Cr (-60 bps margin) and PAT declining 12% YoY. Sequentially, Q4 saw strong recovery: revenue +20%, EBITDA +72%, and margins +410 bps, driven by Sayakha scale-up. FY26 revenue +7%, PAT +16%.
While Q4 FY26 showed strong sequential recovery, YoY performance remains weak with flat EBITDA and declining PAT. Management attributes this to start-up losses and persistent API pricing pressure. The shift to regulated markets and export growth is positive, but sustained margin expansion from new capacities needs to be proven.
Current business mix
FY26 Segmental Revenue
Latest issuer-disclosed distribution across 4 reported categories.
API76.5%
Formulation12.8%
Speciality Chemicals7.9%
Intermediates & Others2.8%
Growth engines
Regulated Market Expansion
Regulated market contribution increased to 73% in FY26, with exports rising to 38%, supporting margin quality and earnings stability.
Formulations & Specialty Chemicals Growth
Diversification initiatives gained momentum, with Formulations and Specialty Chemicals segments growing 33% and 37% YoY respectively in FY26.
Sayakha Facility Scale-up
Strong execution progress in Sayakha facility, achieving ~1,000 TPM run-rate in March 2026, expected to enhance margin resilience.
Backward Integration
Sayakha facility manufactures key inputs (DMA, MMA, TMA) for APIs like Metformin, strategically aimed at backward integration.
Capacity and execution
Sayakha Amines Greenfield Facility
Operationalized greenfield facility at Sayakha for Di-, Mono-, and Tri-methylamines and derivatives, achieving ~1,000 TPM run-rate in March 2026.
Tarapur Salicylic Acid Greenfield Facility
Operationalized greenfield facility at Tarapur for Salicylic acid, with scale-up in progress.
Anti-diabetic (Metformin) Capacity Expansion
Current capacity ~1,400 TPM, scaling to 2,000–2,200 TPM. Additional 800 TPM brownfield expansion underway, ~500 TPM targeted for USFDA markets, expected completion in 6-8 months.
Antiprotozoals Capacity Increase
Enhancing position in the Indian market, aimed to increase production capacity by ~40%. Secured approval to market products in China.
Tailwinds
Stabilizing API Pricing Trends
API pricing trends began stabilizing from September 2025 onwards, with recovery strengthening further during Q4 FY26.
Improving Business Mix
Continued improvement in business mix with increased regulated market and export contribution supports margin quality and earnings stability.
Diversified Product Basket & Customer Base
Company's broad product basket and diversified customer base mitigate concentration risks and improve business resilience.
Headwinds
Persistent Macroeconomic Headwinds
The company navigated a challenging industry environment with persistent macroeconomic headwinds.
Pricing Pressure in Select API Segments
Continued weakness in the domestic antibiotics market and sustained pressure on API realizations, especially in H1 FY26.
Elevated Raw Material & Logistics Costs
Sharp increase in key raw material prices and logistics costs, exacerbated by geopolitical tensions in West Asia, created additional cost pressures.
Start-up Losses from New Facilities
Year's profitability remained impacted by start-up losses associated with the new facilities.
Risk radar
Raw Material Price Volatility
Elevated raw material volatility and logistics costs, exacerbated by supply chain disruptions, created cost pressures.
API Pricing Pressure
Persistent pricing pressure in select API segments and continued weakness in the domestic antibiotics market impact profitability.
New Capacity Ramp-up & Utilization
Scale-up trajectory of new facilities like Sayakha could be impacted by factors like temporary ammonia shortages, affecting profitability.
Regulatory Filings & Approvals
Regulatory filings and approvals across EU and US markets are a strategic priority, implying dependence on timely clearances.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare BOTH
QoQ comparison is crucial due to management highlighting sequential recovery from new facility scale-up and stabilizing API prices. YoY is important for overall business health and comparison against previous year's performance, especially given the stated 'transition year' and 'challenging industry environment'.
Sector KPIs management disclosed
Formulations Segment Growth
Formulations segment grew 33% YoY in FY26.
Specialty Chemicals Segment Growth
Specialty Chemicals segment grew 37% YoY in FY26.
Export Contribution
Exports contribution rose from 35% in FY25 to 38% in FY26.
Regulated Market Contribution
Regulated market contribution increased from 66% in FY25 to 73% in FY26.
Management forward view
Sayakha Facility Outlook
The Sayakha project has entered a more stable operating phase and is expected to progressively enhance margin resilience and backward integration benefits.
Strategic Priority for Regulated Markets
Regulatory filings and approvals across the EU and US markets remain a strategic priority, offering significant realization and margin upside.
Future Profitability & Return Ratios
Foundations built position the Company favorably for a meaningful improvement in profitability and return ratios over FY27 and beyond.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Sayakha Facility Utilization & Profitability | ~1,000 tonnes per month run-rate in March 2026. | Sustained ramp-up, margin contribution, and realization of backward integration benefits. |
| API Pricing Trends | Stabilizing from September 2025, strengthening in Q4 FY26. | Continued stabilization and recovery in realizations across key API segments. |
| Regulated Market Contribution | 73% in FY26. | Further increase in contribution and its positive impact on overall margins. |
| Anti-diabetic Capacity Expansion | 800 TPM brownfield expansion underway, 6-8 months completion. | Timely commissioning and ramp-up of USFDA-targeted capacity. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
76Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 81st percentile of the scored universe and 73rd percentile within Pharma. No major sub-score weakness stands out.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 05 Sept 2026
management-trust-v1
113 docs text-extracted · 46 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
81st percentile
overall median 67 · Pharma: 73rd pctile, median 70 · Micro: 66th pctile, median 73
Evidence depth
Financial-only
113 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Can support position sizing if valuation and trend also agree.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
78
strong · holding, pledge, alignment
Cash flow
77
strong · profit to cash conversion
Balance sheet
89
strong · leverage and solvency
Discipline
60
acceptable · capital discipline
Results
75
strong · quarterly consistency
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 2.1%.
- ▸8 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Aarti Drugs Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Annual report
Business Responsibility and Sustainability Reporting (BRSR) 2 Sep - Aarti Drugs submitted its FY2025-26 Business Responsibility and Sustainability Report with the annual report and AGM notice.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 1 Sep
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 14 Aug
Source: Bse
Annual report
Annual Report 2026
Source: Bse
Annual report
Annual Report 2026
Source: Bse
Annual report
Annual Report 2025
Source: Bse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.