Shares of Aarti Drugs Limited declined sharply by more than 8% in early trade after the company reported its Q3 FY26 consolidated results. Despite a steady rise in revenue and net profit on a year-on-year basis, weaker operating performance and margin contraction weighed heavily on investor sentiment.
For the quarter ended Q3 FY26, Aarti Drugs reported consolidated revenue of ₹601.7 crore, marking an increase of 8.1% compared with ₹556.6 crore in the same quarter last year. The topline growth reflects stable demand across key product segments, but this was overshadowed by pressure on operating profitability.
EBITDA for the quarter fell 10.8% year-on-year to ₹55.0 crore, down from ₹61.7 crore in Q3 FY25. As a result, the EBITDA margin declined sharply to 9.1% from 11.1% a year ago, a contraction of 195 basis points. The margin erosion indicates higher operating costs and limited pricing power during the quarter, which appears to have concerned the market.
On the bottom line, net profit rose 9.3% year-on-year to ₹40.6 crore, compared with ₹37.1 crore in the corresponding period last year.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.