Revenue from operations rose 38.7% YoY but declined 8.0% QoQ to Rs 535.80 crore during the quarter.

Profit before tax stood at Rs 101.06 crore in Q1 FY27, up 66.2% YoY and 23.7% QoQ. This includes a share of profit from joint ventures of Rs 7.41 crore in Q1 FY27, compared with a loss of Rs 1.80 crore in the year-ago quarter.

On the cost front, total expenses increased 36.5% YoY but declined 14.0% QoQ to Rs 442.59 crore. Cost of materials consumed rose 31.6% YoY to Rs 251.87 crore. Employee benefits expense rose 22.0% YoY to Rs 50.32 crore. Finance costs increased 89.5% YoY to Rs 12.88 crore, while depreciation and amortisation expenses rose 31.8% YoY to Rs 30.03 crore. Foreign exchange gain stood at Rs 3.46 crore, compared with a gain of Rs 3.81 crore in Q1 FY26.

Other income declined 41.3% YoY to Rs 0.45 crore.

Meanwhile, the company proposes to add 405 KL of new capacity within one year, involving an investment of Rs 149 crore. The expansion will be funded through internal accruals and borrowings and is aimed at serving intermediate and CDMO customers.

Aarti Pharmalabs is an India-based manufacturer of active pharmaceutical ingredients (APIs), pharmaceutical intermediates, New Chemical Entities (NCEs) and xanthine derivatives. The company serves generic pharmaceutical players and global innovators, offering CDMO services for drug substance and NCE development and manufacturing across Phase I/II/III, launch and commercial stages. Its manufacturing capabilities include dedicated facilities for HPAPIs, corticosteroids, cytotoxic medicines and oncology products. Aarti Pharmalabs also has India's largest manufacturing capacity for caffeine, serving beverage, nutraceutical and pharmaceutical companies globally.