Investor presentationSep 2026
Sep 2026 · PPT
Source: Bse
Aarti Pharmalabs Limited (AARTIPHARM)
Micro CapPharma stocks · Micro cap · NSE
Aarti Pharmalabs (APL) is a globally recognized manufacturer of generic API, Xanthine derivatives, and a leading CDMO/CMO player in India. Part of the Aarti group, it operates 7 manufacturing units (3 USFDA approved), 3 R&D facilities, holds 63 patents, and 60 US DMFs. It commands 15-20% global market share in Xanthine derivatives.
Data qualityFresh enough for analysisQuote updated 21 Oct, 03:31 pm ISTDetails
Quote21 Oct, 03:31 pm IST
Base fundamentals14 Oct 2026 · screener
Latest result16 Aug, 01:29 am IST
Score21 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags02 May 2026
Coverage13/14 · 93%
Valuation2026-07-20 · Rf 6.8% · Pharma P/E 33.5 (n=187)
Technical timing lens
Trend score and candlestick chart
77BullishSMA20 +8.4% / mo · MACD − · sector +4.9pp vs Nifty 500 (3M)
Stock trend: 61
Sector RS: 100
Sector 3M: -0.7% vs Nifty 500 -5.6%
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
AARTIPHARMD candles · FIT view+18.4%TODAY · PROVISIONALLatest price ₹843.25 on 2026-10-21
Today's candle is provisional from the latest intraday quote; completed-candle scans remain unchanged.
Bar
+0.1%
RSI
44
MACD hist
-13.12
52W pos
62%
2026-10-21O ₹842.00H ₹852.10L ₹825.70C ₹843.25Vol 6.5L 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
AARTIPHARMNifty PharmaNifty 500
- AARTIPHARM
- +19.3%
- Nifty 500
- -5.6%
- Nifty Pharma
- -1.5%
- Vs Nifty 500
- +24.8 pp
Chart stats
19 Oct 2026- From 52W high
- -17.0%
- 52W range position
- 59%
- ATR (14)
- 5.1%
- Volume vs 20D
- 0.49x
- Avg traded value
- ₹77.1 Cr
- 20D price channel
- ₹811.2 - ₹1,002.4
₹1,002.4
₹585 - ₹1,002.4
₹42.7
Latest completed session
20-session average
57.4% 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
Check latest quarters
Result consistency is weak; verify whether the thesis is improving or deteriorating.
U-Score
Legacy · OVERVALUED31
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Excellent90
Revenue +38.9% · PAT +52.0% YoY
Technical
Bullish77
Price trend and sector-relative-strength timing.
Valuation
Legacy model+20.3%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence61
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
Excellent · 90/100Rev +39% YoY · PAT +52% YoY · margin expansion · operating leverage
Filed 30 Jun 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹536 Cr | +38.9% | -8.1% |
| EBITDA | ₹136 Cr | +46.2% | +20.4% |
| Operating margin | 25.0% | +100 bps | +600 bps |
| PAT | ₹76 Cr | +52.0% | +24.6% |
| PAT margin | 14.2% | +123 bps | +372 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 37.30
- P/B
- 3.78
- EV/EBITDA
- 16.31
- Market Cap
- 8023.00Cr
Profitability
- ROE
- 8.59%
- ROCE
- 10.70%
- ROA
- 6.12%
- Dividend Y
- 0.40%
Growth (CAGR)
- Revenue 5Y
- 13.00%
- EPS 5Y
- 13.00%
- Revenue 3Y
- -2.00%
- EPS 3Y
- -3.00%
Balance Sheet
- Debt/Equity
- 0.43
- Interest Coverage
- 8.04×
- Altman Z
- 4.59
- Book Value
- 234.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 2/5
- OCF
- 262.00 Cr
- EPS TTM
- 23.51
Shareholding
- Promoter Hold
- 42.86%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 72%
Financial History
Updated 19/10/2026
Revenue
₹ CrLatest: 536-8.1% vs prev
Net Profit
₹ CrLatest: 76.0+24.6% vs prev
ROE is shown only in the Annual view — quarterly equity data isn't published.
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
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 44. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~7.6% over last month) — short-term momentum positive.
- RSI(14) at 44 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 16% off 52W high · 44% 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
73
RS percentile
Stage 2 UptrendEstablished S2
1M return
+1.5%
3M return
+19.3%
6M return
+19.9%
1Y return
-1.3%
RS 1D
-2
RS 20D
+6
Sector rank
#1
Industry rank
#11
Stage evidence
- Price is 11.8% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +4.2%.
- Both 3-month and 6-month returns are positive.
50-DMA
price below
200-DMA
price above
S2 entered
26 Aug 2026
S2 age
37 trading sessions
Sector
leading
Industry
leading
Relative-strength line vs Nifty 500 (base 100)
261 observations
19 Oct 2026Value 106.13-3.74%
RS vs Nifty 500106
Valuation & peers
U-Score 31 · legacy U-Score band OVERVALUED · valuation evidence and comparable companies
Valuation & peers
U-Score 31 · legacy U-Score band OVERVALUED · valuation evidence and comparable companies
OVERVALUED
Fundamental score breakdown
U band · OVERVALUEDValuation5/30
Growth12/25
Quality0/20
Balance Sheet7/15
Cash Flow2/10
Piotroski
8/9 (+5)
Penalties
0
Raw sum
31
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
31/100 · legacy band OVERVALUED
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 20.3%.
- Growth contributes 12/25 to the score.
Main drags
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 5/30; verify the latest quarterly trend.
- Cash flow is weaker at 2/10; 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
37.3
PB
3.8
EV/EBITDA
16.3
ROE
8.6%
ROCE
10.7%
FCF Yield
—
Debt/Equity
0.4
MoS
+20.3%
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
31
Previous: 31
Legacy U-Score band
OVERVALUED
Previous: OVERVALUED
Margin of safety
+20.3%
Previous: +21.3%
Score history
12 stored score snapshots. Latest stored move: +0 points.
21 Oct 2026
v4.3-runtime-valuation
30
30
29
29
30
31
31
30
30
30
31
31
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
₹351.82
-139.7% MoS
Growth-justified P/E
45.0
Growth-justified Value
₹1,057.95
+20.3% MoS
PEG
2.87
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
AKUMS
Large
Akums Drugs and Pharmaceuticals Limited
Pharmaceuticals
match 161
42
37.8
8.4%
+15%
WATCHLIST
HIKAL
Small
Hikal Limited
Pharmaceuticals
match 155
30
62.4
2.2%
-3367%
OVERVALUED
DCAL
Small
Dishman Carbogen Amcis Limited
Pharmaceuticals
match 154
41
131.0
1.6%
-215%
WATCHLIST
SYNGENE
Small
Syngene International Limited
Pharmaceuticals
match 152
29
52.7
7.8%
-1179%
OVERVALUED
COHANCE
Small
Cohance Lifesciences Limited
Pharmaceuticals
match 149
23
165.0
4.9%
-4672%
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 2026-06-03T01:37:38.298Z
Management commentary snapshot
Q4 FY26 consolidated revenue grew 3.3% YoY and 34.8% QoQ to INR 5,826 Mn, driven by record CDMO sales. However, consolidated EBITDA declined 10.6% YoY to INR 1,301 Mn, with margins contracting 349 bps YoY to 22.33%. FY26 standalone revenue grew 1.5% YoY, but EBITDA fell 4.8% to INR 4,061 Mn.
While Q4 FY26 showed strong sequential revenue growth, particularly in CDMO, and resolution of operational issues at Atali, the significant YoY decline in EBITDA and PAT margins for both the quarter and full year FY26 is concerning. Headwinds from input costs and limited pass-through ability, coupled with higher finance costs and depreciation, are impacting profitability despite revenue growth.
Current business mix
Revenue by Business Segment (Q4 FY26)
Latest issuer-disclosed distribution across 3 reported categories.
CDMO/CMO29.1%
API & Intermediates28.3%
Xanthine derivatives42.6%
Growth engines
CDMO/CMO Segment Expansion
The CDMO/CMO segment logged its highest ever quarterly revenue at INR 155 Cr in Q4 FY26, and the company is expanding its on-ground sales presence to USA and EU.
Xanthine Derivatives Capacity
Capacity expansion is ongoing to increase total Xanthine capacity to 9,000+ MTPA, targeting a global market share of 20-25% from the current 15-20%.
Atali Greenfield Site
Phase 1 at the Atali greenfield site, with 450+ kL reactor capacity, is expected to be fully operational by June 2026, serving as a growth engine for CDMO/CMO.
TIDES Portfolio Expansion
The company is initiating R&D investment in FY27 towards TIDES (Peptides & Oligonucleotides) to expand its portfolio capabilities.
Capacity and execution
Xanthine Derivatives Capacity
Capacity expansion is underway to increase total Xanthine capacity from the current 6,000 MTPA to 9,000+ MTPA. Commissioning is expected by June 2026.
Atali Greenfield Site (Phase 1)
Phase 1 at the Atali greenfield site, with 450+ kL reactor capacity, was ~80% operational by Q4 FY26 and is expected to be fully operational by June 2026.
Tailwinds
China+1 Shift
The company is a non-Chinese dependent and fully backward integrated manufacturer of Xanthine derivatives, offering strong geographical diversification amidst the 'China+1' shift.
Consistent Revenue Stream
Beverage sales for Xanthine derivatives are predominantly driven by long-standing client relationships, ensuring a consistent revenue stream.
Headwinds
Input & Logistics Price Hike
Ongoing geopolitical tensions have resulted in input and logistics price hikes.
Cost Pass-Through Difficulty
Cost pass-through to customers is difficult in the API/Intermediates segments.
Foreign Exchange Impact
Recognition of fair value movement on a long-dated USD forward contract under FVTPL impacted reported profitability.
Risk radar
Margin Pressure from Input Costs
Ongoing geopolitical tensions are causing input and logistics price hikes, and the company faces difficulty in passing these costs through to customers in API/Intermediates.
Forex Volatility
Fair value movements on USD forward contracts have impacted reported profitability, indicating exposure to foreign exchange fluctuations.
Execution Risk on Capacity Ramp-up
Successful commissioning and ramp-up of Xanthine capacity to 9,000+ MTPA and full operationalization of Atali Phase 1 are critical for future growth targets.
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 relevant for Q4 FY26 to assess sequential momentum in CDMO and the resolution of operational challenges at the Atali plant. YoY comparison is useful for evaluating overall business performance and margin trends, especially for standalone figures, as annual consolidated figures are explicitly stated as not comparable YoY due to a JV accounting change.
Sector KPIs management disclosed
US/Export Growth
International sales constituted 54% of total geographical sales in FY26. Xanthine derivatives had 57% international sales, and API & Intermediates had 56% international sales in FY26.
Launch Pipeline
The company has 11 new APIs under development (R&D/validation stage) and is working on 54 active CDMO projects, with 19 of these under different stages of development.
Approvals
Aarti Pharmalabs holds 60 US DMF approvals and 44 CEP approvals. Its Dombivli Unit secured USFDA approval in 2023.
API/CDMO Mix (Q4 FY26 Revenue)
CDMO/CMO contributed 29.1%, API & Intermediates 28.3%, and Xanthine derivatives 42.6% to Q4 FY26 revenue.
Management forward view
FY27 Capex Outlook
FY27 capital expenditure is expected to be at similar levels to FY26, which reached approximately INR 400 Cr.
Revenue & EBITDA CAGR Target
Management is targeting 15-18% revenue and EBITDA CAGR over the next 3-4 years on a standalone basis.
Dedicated CDMO Block at Atali
The company is evaluating a dedicated block for a specific CDMO project at Atali, with groundbreaking planned in FY27 and a 1-year completion target.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Xanthine Capacity Utilization | Currently operating at 6,000 MTPA. | Successful commissioning and ramp-up to 9,000+ MTPA post June 2026, and its impact on market share. |
| Atali Phase 1 Operational Status | ~80% operational by Q4 FY26, fully operational expected by June 2026. | Full operationalization, successful customer audits, and contribution to CDMO segment growth. |
| API/Intermediates Margin Trend | Under pressure from input costs with difficult cost pass-through. | Stabilization or improvement in margins, indicating better cost management or pricing power. |
| CDMO Project Conversion | 19 projects under development out of 54 active projects. | Conversion of development projects to commercial stage and addition of new customers/projects. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
61Limited 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 32nd percentile of the scored universe and 22nd percentile within Pharma. Main check: results consistency is weak at 27/100.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 05 Sept 2026
management-trust-v1
63 docs text-extracted · 24 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
32nd percentile
overall median 67 · Pharma: 22nd pctile, median 70 · Micro: 17th pctile, median 73
Evidence depth
Financial-only
63 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
Acceptable, but check the weakest sub-score before increasing exposure.
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
55
watch · profit to cash conversion
Balance sheet
89
strong · leverage and solvency
Discipline
50
watch · capital discipline
Results
27
weak · quarterly consistency
Trust positives
- ▸Promoter pledge is zero.
Trust risks
- ▸3 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE trend is -4.3%.
- ▸1/4 latest quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Aarti Pharmalabs Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Investor presentationAug 2026
Aug 2026 · PPT
Source: Bse
Concall transcriptAug 2026
Aug 2026 · Transcript
Source: Bse
AnnouncementAug 2026
Aug 2026 · Announcement under Regulation 30 (LODR)-Change in Management 31 Aug - G.M. Naidu resigns as Manufacturing/Sr General Manager, effective August 31, 2026.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 30 Aug
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 18 Aug
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 9 Aug
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Change in Directorate 7 Aug - Mr. Rajendra Vallabhaji Gogri will not seek reappointment as director at the ensuing AGM.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Press Release / Media Release 30 Jun - Inaugurated Tarapur Unit 5 manufacturing block, adding 3,600 TPA Xanthine capacity to reach 9,600 TPA.
Source: Bse
Investor presentationJun 2026
Jun 2026 · PPT
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Allotment of ESOP / ESPS 24 Jun
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 27 May
Source: Bse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.