Shyam Metalics Q2 FY26 Results: Revenue Rises 23% YoY to ₹4,457 Cr, PAT Increases 21% to ₹260 Cr; EBITDA Up 27% with Rating Upgrade to AA+
8 Nov 2025
Aarti Drugs Limited - API and Specialty Chemicals Manufacturing Facility
📊 Stock Analysis
Complete financial analysis with key metrics and investment outlook
Aarti Drugs Q2 FY2026 Financial Results
Aarti Drugs Limited (NSE: AARTIDRUGS, BSE: 524348), a fully integrated pharmaceutical and speciality chemicals manufacturer, reported its consolidated financial performance for the quarter and half year ended September 30, 2025, showing steady revenue growth, margin expansion, and strong export momentum.
Stock Performance & Key Metrics
As of November 7, 2025:
- Current Price: ₹491 (up 0.52%)
- Market Cap: ₹4,518 Crores
- Stock P/E: 22.7 (Industry P/E: 32.8)
- 52-Week Range: ₹575 / ₹312
- Book Value: ₹160 per share
- Dividend Yield: 0.20%
- ROCE: 13.1%
- ROE: 12.7%
- Face Value: ₹10.0
- EPS: ₹21.7
- Debt-to-Equity: 0.39
- Total Debt: ₹573 Crores
Consolidated Financial Highlights (₹ in Crores)
| Particulars | Q2 FY26 | Q2 FY25 | YoY Growth | Q1 FY26 | QoQ Growth |
|---|---|---|---|---|---|
| Revenue | 652.9 | 599.8 | +9% | 590.8 | +11% |
| Gross Profit | 244.6 | 205.8 | +19% | 217.4 | +12% |
| EBITDA | 84.4 | 68.5 | +23% | 74.4 | +13% |
| EBITDA Margin | 12.9% | 11.4% | +150 bps | 12.6% | +30 bps |
| PBT | 60.4 | 45.9 | +32% | 51.1 | +18% |
| PAT | 45.2 | 35.0 | +29% | 54.0 | -16% |
| PAT Margin | 6.9% | 5.8% | +110 bps | 9.1% | -220 bps |
| EPS (₹) | 4.95 | 3.83 | +29% | 5.91 | — |
Half-Year (H1 FY26 vs H1 FY25)
| Particulars | H1 FY26 | H1 FY25 | Growth |
|---|---|---|---|
| Revenue | 1,243.7 | 1,156.3 | +8% |
| EBITDA | 158.8 | 134.6 | +18% |
| PAT | 99.1 | 68.3 | +45% |
| PAT Margin | 8.0% | 5.9% | +210 bps |
> Strong export performance and better product mix contributed to higher profitability and margin improvement.
Segmental Performance (₹ in Crores)
| Segment | Q2 FY26 | Q2 FY25 | YoY Growth | H1 FY26 | H1 FY25 | Growth |
|---|---|---|---|---|---|---|
| API | 515.9 | 482.6 | +7% | 974.1 | 925.3 | +5% |
| Formulations | 82.4 | 65.6 | +26% | 162.8 | 136.1 | +20% |
| Speciality Chemicals | 37.3 | 28.8 | +30% | 70.4 | 55.4 | +27% |
| Intermediates & Others | 17.1 | 21.3 | -20% | 36.1 | 36.8 | -2% |
> API remains the key revenue driver, contributing nearly 79% of total consolidated revenue.
Business & Operational Highlights
1. Export Growth
Exports increased 33% YoY, offsetting softer domestic demand, particularly in antibiotics. Export share rose to 42% of standalone revenue, compared to 31% in the previous year.
2. New Capacity Commissioning
- The Sayakha Amines Facility was commissioned in September 2025, marking a major step in backward integration.
- The facility currently meets 40–50% of captive Metformin requirements, with full utilization expected within 12 months.
3. Product Line Expansion
- Salicylic Acid operations at Tarapur are stabilizing at ~300 tonnes/month; targeted to reach 500 tonnes/month by Q4 FY26.
- A new Salicylates line (400 tonnes/month) is under implementation, ensuring downstream integration and improved margin stability.
4. Formulation Business
- Formulations revenue grew 26% YoY in Q2 FY26, with exports contributing 68%.
- Focus remains on scaling high-margin formulations across regulated markets (EU and USFDA-approved facilities).
5. Capex & Financial Position
- Q2 FY26 capex stood at ₹45.6 crore, largely for expansion and integration projects.
- Strengthened cash flows allow better leverage management and reinvestment in strategic capacity additions.
Management Commentary
> “We are pleased with our operational progress this quarter. Despite a softer domestic demand environment, exports remained robust, helping us achieve 9% revenue growth and 29% PAT improvement. Our Sayakha amines facility and backward integration initiatives are key enablers for sustained margin expansion,” said Mr. Adhish Patil, CFO & COO, Aarti Drugs Limited.
Outlook
Aarti Drugs expects continued growth driven by:
- Scale-up of backward integration initiatives
- Stabilization of new product lines
- Robust export pipeline in regulated markets
- Margin expansion through operational efficiencies
*Results approved by the Board on November 7, 2025 | Source: https://www.bseindia.com/xml-data/corpfiling/AttachLive/ffb29c1b-df29-4626-a1a8-7c2399bef2ca.pdf*
