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, ETMarkets.comLast Updated: Aug 11, 2026, 12:09:00 PM IST

Synopsis

Aarti Pharmalabs shares have surged 33% in two days after the company reported a 65.4% year-on-year rise in Q1FY27 profit and 38.7% growth in revenue. The rally was further supported by a Rs 149-crore capex plan to add 405 KL of capacity for its CDMO and intermediate businesses.

Shares of Aarti Pharmalabs extended their post-earnings rally, gaining 33.4% over two days to trade at Rs 896.05 during Tuesday’s session. The stock has risen after the company reported strong June-quarter results, with consolidated profit surging 65.4% year-on-year and revenue increasing 38.7%.

Strong revenue and profit growth drive earnings

Aarti Pharmalabs reported consolidated revenue from operations of RS 535.79 crore for the quarter ended June 30, 2026, marking a 38.7% year-on-year increase compared to RS 386.19 crore in the corresponding period of the previous year. Total consolidated income reached RS 536.25 crore, up from RS 386.96 crore a year ago.

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. Basic earnings per share (EPS) expanded to RS 8.40 from RS 5.08 in the base quarter. Profitability was further supported by a turnaround in 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 earnings growth, investor confidence received a boost from the Board of Directors approving a capital expenditure plan of RS 149 crore to construct a new Intermediate Block. The facility will add 405 KL of manufacturing capacity to meet rising demand from contract development and manufacturing organization (CDMO) partners and intermediate clients.

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

Board restructuring and leadership transition

The board also approved restructuring of its senior leadership, taking effect from October 1, 2026, subject to shareholder approval. Shri Rashesh C. Gogri will transition from Non-Executive Director to Managing Director, while Smt. Hetal Gogri Gala will move from Managing Director to Executive Director.

Following the board changes, the company reconstituted key governance bodies, including the Audit Committee, the CSR Committee, and the Stakeholders Relationship Committee.

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