Aarti Drugs Ltd, founded in 1984 and headquartered in Maharashtra, is a significant player in the Indian generic/API supply chain. Its importance lies in global API exports, manufacturing scale and R&D strength. As the pharmaceutical sector evolves, companies like Aarti Drugs stand to gain from supply-chain realignment, higher regulatory standards and growth in speciality chemicals. In this article, we’ll delve into its business overview, financial performance, growth drivers and challenges — and then forecast share price ranges from 2026 to 2050.
Table of Contents
Company Overview
| Metric | Details |
|---|---|
| Company Name | Aarti Drugs Ltd |
| Industry | Pharmaceuticals & Specialty Chemicals |
| Founded | 1984 |
| Headquarters | Tarapur, Maharashtra (with multiple units) |
| Market Cap | Pharmaceuticals & Speciality Chemicals |
| Stock Listing | NSE: AARTIDRUGS / BSE: 524348 |
Aarti Drugs operates across APIs, intermediates and speciality chemicals. Its API portfolio includes drugs such as metformin HCl, metronidazole, ketoconazole, and fluoroquinolones, among others. It also has a wholly-owned subsidiary for formulations. The company exports globally and has several manufacturing units certified to global regulatory standards.
Business Segments
- API Manufacturing: The largest contributor. Aarti Drugs has a broad portfolio of bulk actives and is a major producer of certain molecules.
- Pharma Intermediates & Speciality Chemicals: These include intermediates for antibiotics, antidiabetics, antifungals and other speciality chemical production.
- Formulations/Subsidiary Products: Through its subsidiary, the company manufactures formulations, adding a downstream dimension.
- Global Exports: A significant portion of revenue comes from exports and regulated markets.
Financial Performance (Last 5 Years)
Here are key data points (approximate, based on available public disclosure):
| Year End | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) |
|---|---|---|---|
| FY 2021-22 | ~2,251 | — | — |
| FY 2022-23 | ~2,498 | ~₹166 Cr (Consolidated) | ~₹17.97 |
| FY 2023-24 | ~2,528 | ~₹171 Cr (Consolidated) | ~₹18.56 |
| FY 2024-25* | ~2,404 (est) | ~₹168 Cr (est) | — ICICI Direct |
note: The company achieved about 62% year-on-year growth in PAT in Q1 FY26 (to ~₹54 Cr) on modest revenue growth (~6%) for that quarter.
Overall, Aarti Drugs shows a stable financial profile with notable export exposure and R&D investment.
Growth Drivers
- Global shift in pharmaceutical supply chains away from China and toward India, benefiting API manufacturers.
- Strong API portfolio and R&D capabilities, enabling entry into higher value molecules and intermediates.
- Increasing domestic pharmaceutical demand and generic drug growth in India and abroad.
- Expansion of manufacturing capacity (e.g., Sayakha plant), backward integration for cost control.
- Export markets and regulated-market compliance enhance growth potential.
Risks & Challenges
- Margin pressure due to raw material cost volatility, currency fluctuations, and competitive global pricing.
- Regulatory risks: APIs and intermediates for export must meet strict compliance; any regulatory lapse could affect business.
- Dependence on a few key molecules and markets; diversification is needed.
- Global demand and pricing for APIs can fluctuate, affecting revenue growth.
- Large capex and project execution risk — delays or cost overruns can hurt returns.
Aarti Drugs Share Price Target
| Year | Bear Case | Base Case | Bull Case |
|---|---|---|---|
| 2026 | ₹650 | ₹850 | ₹1,050 |
| 2027 | ₹750 | ₹1,000 | ₹1,250 |
| 2028 | ₹900 | ₹1,200 | ₹1,500 |
| 2030 | ₹1,100 | ₹1,500 | ₹2,000 |
| 2040 | ₹2,000 | ₹3,000 | ₹4,000 |
| 2050 | ₹3,000 | ₹4,500 | ₹6,000 |
Year-wise Detailed Analysis
Aarti Drugs Share Price Target 2026
By 2026, assuming the company ramps up capacity, improves margin via backward integration, and benefits from global demand, a base case target of ~₹850 is plausible. In a favourable scenario (strong export growth, new molecule wins), it could hit ~₹1,050. In a bear scenario (sluggish growth, margin headwinds) ~₹650.
Aarti Drugs Share Price Target 2027
Going into 2027, if new products begin contributing and R&D starts yielding results, the share might trade around ~₹1,000 underthe base case. The bull case could see ~₹1,250. Bear scenario remains ~₹750.
Aarti Drugs Share Price Target 2028
By 2028, with capacity fully stabilised and improved margins, the stock could reach ~₹1,200 in the base case and up to ~₹1,500 in a strong growth scenario. If execution falters, it may be ~₹900.
Aarti Drugs Share Price Target 2030
By 2030, as the company establishes itself in regulated markets, enhances formulations and speciality chemicals segment, the share could achieve ~₹1,500 under the base case and ~₹2,000 in bull case. Bear scenario ~₹1,100.
Aarti Drugs Share Price Target 2040
Assuming long-term secular growth in global generics, India becoming a major API sourcing hub, and Aarti Drugs capturing higher value molecules and markets, a base case ~₹3,000 and bull ~₹4,000 are possible by 2040. Bear case ~₹2,000.
Aarti Drugs Share Price Target 2050
Looking far ahead to 2050, if the company transforms into a major global supplier with strong R&D, diversified formulations and speciality chemicals, the share might reach ~₹4,500 in the base case and ~₹6,000 in the bullish scenario. Bear case might be ~₹3,000 if growth is moderate.
Future Outlook
Aarti Drugs Ltd has strong fundamentals and clear growth potential owing to its export orientation, R&D base and product portfolio. The pharmaceutical industry’s global dynamics favour Indian API players. If the company executes its capacity expansion, maintains quality/regulatory compliance and improves product mix toward higher margin items, it could deliver solid long-term returns. Investors should monitor order book growth, margin trends, new molecule approvals, and regulatory developments.
FAQs
What is Aarti Drugs’ main business?
It primarily manufactures APIs (bulk drugs), pharma intermediates and speciality chemicals, and through its subsidiary also engages in formulations.
Is Aarti Drugs a good long-term investment?
Yes, for investors seeking exposure to the Indian pharmaceutical supply chain, especially APIs, Aarti Drugs offers long-term potential. But as with all investments, risks such as execution, regulatory compliance, and margin pressure must be considered.
What is the share price target for Aarti Drugs in 2030?
The base case estimate is ~₹1,500, and the bull case is ~₹2,000 for 2030.
Who owns Aarti Drugs Ltd?
It is a publicly-listed company, part of the Aarti Group of Industries, with shareholding by promoters, institutional investors and public shareholders.
Conclusion
Aarti Drugs Ltd is well placed in the global pharmaceutical supply chain with a strong portfolio of APIs, intermediates and specialty chemicals. With correct execution, it has the potential to grow significantly over the coming decades. However, investors should weigh the business risks and monitor key metrics.
