Aarti Drugs shares rallied over 10.88% in Monday's trading session, defying weak sentiments in the Indian stock market. The pharma stock opened at ₹457 apiece on the BSE and surged to an intraday high of ₹513, registering strong buying interest during the session. According to reports from Hindustan Times, the broader market remained under pressure with the Sensex down around 0.2% in early trade and the Nifty 50 slipping below the 25,000 mark as investors booked profits following a sharp seven-session rally through Friday.
Aarti Drugs reported a strong set of financial results for the September quarter of FY27, with consolidated net profit rising 83% YoY to ₹82.8 crore, compared with ₹45.2 crore in the corresponding quarter last year. As reported by Hindustan Times, the company's consolidated revenue increased 27% YoY to ₹828.8 crore from ₹652.9 crore in Q2 FY6. Earnings before interest, taxes, depreciation and amortisation (EBITDA) jumped 63% to ₹137.9 crore against ₹84.4 crore in the year-ago quarter. Operating performance also improved significantly, with EBITDA margin expanding 370 basis points to 16.6% from 12.9% a year earlier, while profit after tax (PAT) margin increased 310 basis points to 10% from 6.9%.
According to Hindustan Times, segment-wise revenue performance showed strong growth across all business verticals. Revenue from the active pharmaceutical ingredients (API) business grew 17% YoY to ₹604.5 crore. Formulation revenue surged 58% to ₹130 crore, while specialty chemicals revenue nearly doubled, increasing 92% to ₹71.8 crore. For the first half of FY27, consolidated revenue increased 23% YoY to ₹1,532.4 crore, while EBITDA rose 48% to ₹234.8 crore and net profit grew 34% to ₹132.9 crore.
In an exchange filing dated November 6, the company informed that the US Food and Drug Administration (US FDA) inspected wholly owned subsidiary Pinnacle Life Science's formulations manufacturing facility in Baddi, Himachal Pradesh, between November 2 and November 6, 2026. Following the inspection, the subsidiary received three inspectional observations in Form 483. As reported by Hindustan Times, the company clarified that none of the observations were related to data integrity and said it would work closely with the US FDA to resolve all the points. Importantly, Aarti Drugs stated that the observations would have no impact on the financial or operational activities of the company or its subsidiary.
According to market data reported by Hindustan Times, Aarti Drugs shares have witnessed renewed buying interest in recent sessions, supported by the company's strong Q2 FY27 earnings and improving operating performance. The stock has gained around 12.24% over the past week and 23.30% over the past month. It has delivered a year-to-date return of 23.67%, while its one-year return remains negative at 1.95%. Over longer periods, the stock has gained 4.98% in three years but declined 9.39% over five years.
