Aarti Pharmalabs (APL) reported a strong Q1 FY27, with consolidated operational revenue rising 38.7% YoY to ₹535.8 Cr.

Consolidated PAT surged 65.4% YoY to ₹76.1 Cr, and diluted EPS grew 65.2% to ₹8.39. Xanthine Derivatives (57% of revenue) and International markets (60% of sales) were key growth contributors.

The company is strategically expanding its global market share in Xanthine Derivatives to 20-25% by ramping up capacity.

APL is also strengthening its CDMO/CMO presence in the USA and EU and investing in R&D for TIDES (Peptides & Oligonucleotides) to broaden its portfolio.

Recent highlights include the inauguration of Tarapur Unit 5, adding 3,600 TPA to Xanthine capacity (total 9,600 TPA), and a successful debottlenecking at Unit 4 Steroid API Block, increasing capacity by one-third.

A new ₹149 Cr capex for Atali Block 2, focused on CDMO/CMO projects, is also announced.

Management anticipates 15-18% Revenue & EBITDA CAGR over the next 3-4 years.

FY27 capex is projected at ~₹400 Cr, with Atali Block 2 groundbreaking in Q3 FY27. Supply chain easing is noted, though raw material prices remain elevated.