Aarti Pharmalabs Q1FY27: consolidated PAT +65% YoY to ₹76 Cr as OPM expands to 25.4%

Aarti Pharmalabs' consolidated Q1FY27 (quarter ended June 30, 2026) print was strong: revenue of ₹535.80 Cr grew 38.7% YoY (₹386.19 Cr, restated) and PAT of ₹76.14 Cr grew 65.4% YoY on that restated base (53.8% against the originally-reported ₹49.50 Cr base in our records — the year-ago quarter was restated down in this filing to recognise a forex-derivative fair-value loss). Sequentially, revenue was down 8.0% off a seasonally strong Q4FY26 base (₹582.64 Cr) but PAT still rose 24.6% QoQ (₹61.12 Cr). No exceptional items sat in this quarter's numbers. Margins expanded on both counts: OPM (EBITDA margin) rose to 25.4% from 23.7% YoY (restated) and 19.4% QoQ, while NPM improved to 14.2% from 11.9% YoY. That expansion ran counter to management's own caution at the FY26-Q4 concall that near-term EBITDA margins could be pressured by ramp-up costs — a positive surprise on that front. Consolidated PAT growth (65.4%) outpaced standalone PAT growth (49.3%, ₹71.31 Cr vs a restated ₹47.75 Cr base) by roughly 16 points; the gap is explained by the joint venture, Ganesh Polychem, swinging to a ₹7.41 Cr profit contribution to consolidated PBT from a ₹1.80 Cr loss a year ago — a material standalone-consolidated divergence worth flagging since readers will see both numbers. Against guidance: management had targeted 15-18% multi-year revenue/EBITDA growth with the CDMO/CMO segment leading at 40-50% FY27 growth. This quarter's 38.7% revenue growth and ~48.9% YoY EBITDA growth run well ahead of that multi-year cadence, and margins expanded rather than compressed as cautioned — a beat against the company's own framing (guidance sourced from the prior concall, not this filing). No reliable street/consensus estimate could be sourced for this specific print — searches on "Aarti Pharmalabs Q1 FY27" kept returning results for the similarly named but distinct Aarti Drugs Ltd, so vsStreet is marked unknown rather than risk misattributing a peer's numbers; no management press release was available to extract at filing time either. Alongside results, the Board approved a fresh ₹149 Cr capex for a 405 KL intermediate-chemistry block (one-year timeline, funded via internal accruals and borrowings) aimed at CDMO/intermediate customers, and a management succession plan effective October 1, 2026 (Rashesh Gogri to Managing Director, Hetal Gogri Gala to Executive Director). The August 10, 2026 concall is the next checkpoint: it should clarify the CDMO segment's actual run-rate against the 40-50% FY27 growth target and give more color on the new capex timeline and its near-term cost impact, given management's own stated caution on ramp-up costs.