Aarti Pharmalabs shares hit 20% upper circuit as Q1 net profit surges 65% YoY to Rs 76 crore

Synopsis

Aarti Pharmalabs shares hit the 20% upper circuit after the company reported a 65.4% year-on-year rise in Q1 FY27 net profit to Rs 76.14 crore. Revenue surged 38.7% to Rs 535.79 crore, while the company also approved a Rs 149-crore capex plan to expand manufacturing capacity.

Aarti Pharmalabs shares hit the 20% upper circuit at Rs 823 on the BSE on Monday following the announcement of its June-quarter results. The sharp rally came after the company reported strong double-digit growth in revenue and net profit, along with key announcements on plant expansion and board-level management changes.

Strong revenue and profit growth drive earnings

The company's consolidated revenue from operations in Q1 surged 38.7% year-on-year to Rs 535.79 crore compared to Rs 386.19 crore in the corresponding quarter of the previous year. Total consolidated income reached Rs 536.25 crore, up from Rs 386.96 crore a year ago.

On the bottom-line front, consolidated net profit after tax (PAT) jumped 65.4% year-on-year to Rs 76.14 crore against Rs 46.03 crore reported in Q1 FY26. Consequently, basic earnings per share (EPS) expanded to Rs 8.40 from Rs 5.08 in the base quarter. Profitability was further boosted by a turnaround performance from its joint venture, Ganesh Polychem Limited, which contributed Rs 7.41 crore to the net profit share compared to a loss of Rs 1.80 crore in the same period last year.

Rs 149-Crore Capex Plan for CDMO Expansion

Alongside its financial results, the Board of Directors approved a major capital investment of Rs 149 crore to construct a new Intermediate Block. The proposed facility will add 405 KL of manufacturing capacity and is designed to meet growing demand from contract development and manufacturing organisation (CDMO) partners and intermediate clients.

The expansion project is targeted for completion within one year and will be funded through a mix of internal accruals and borrowings.

Board Restructuring and Leadership Transition

The board also approved changes to senior leadership roles, which will take effect from October 1, 2026, subject to shareholder approval. Shri Rashesh C. Gogri will transition from Non-Executive Director to Managing Director. Concurrently, Smt. Hetal Gogri Gala will transition from Managing Director to Executive Director.

In line with these changes, the board reconstituted its key governance bodies, including the Audit Committee, the CSR Committee, and the Stakeholders Relationship Committee.

Standalone Performance and Stock Reaction

On a standalone basis, Aarti Pharmalabs reported revenue from operations of Rs 534.59 crore, marking a 42.4% increase from Rs 375.31 crore in the year-ago quarter. Standalone net profit grew 49.3% year-on-year to Rs 71.31 crore.

Also read: How Adani’s $125 billion capex boom is creating new winners on Dalal Street

Following the earnings release, the stock opened with a sharp gap-up at Rs 763.00 before touching the maximum permissible limit of Rs 823.00 on the stock exchanges. Today's rally brings the stock closer to its 52-week high of Rs 946.10.

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