Aarti Pharmalabs543748Quarterly results

Board approves Sept-quarter results and CFO change; auditor Emphasis of Matter on stamp duty

Board meeting on Oct 28, 2026 approved unaudited results for the quarter and half year ended September 30, 2026, standalone and consolidated.

By ScoutQuest · Wed 28 Oct 2026, 8:56 PM IST · 3 min read

Consolidated · ₹ lakh · EPS in ₹
Line item	Latest	Year ago	YoY	Prev qtr	QoQ
Revenue from operations	61,045.10	41,833.48	+45.9%	53,579.69	+13.9%
Total income	61,091.65	41,881.74	+45.9%	53,624.96	+13.9%
Profit before tax	9,499.01	2,876.28	+230%	10,106.02	−6%
Profit after tax	7,147.23	2,049.27	+249%	7,614.27	−6.1%
Total comprehensive income	6,891.93	1,972.10	+249%	7,776.16	−11.4%
Basic EPS	7.88	2.26	+249%	8.40	−6.2%

Total income: Latest 61,091.65; Year ago 41,881.74 (+45.9%); Prev qtr 53,624.96 (+13.9%)
Profit after tax: Latest 7,147.23; Year ago 2,049.27 (+249%); Prev qtr 7,614.27 (−6.1%)
Period: 30th Sept 2026

Also decided at the meeting

Noted resignation of Shri Piyush Lakhani as CFO and KMP, relieved from close of business hours on October 30, 2026.
Appointed Smt. Vibha Thakkar as Chief Financial Officer and KMP w.e.f. October 31, 2026.

Auditor's review

Conclusion: Unmodified

Emphasis of matter: stamp duty order of Rs. 2,500.00 lakhs plus penalties Rs. 3,450.00 lakhs on demerger scheme; provision Rs. 204.00 lakhs as exceptional item, Rs. 5,746.00 lakhs contingent liability.
Emphasis of matter: Sept 2025 quarter/half-year figures restated for fair value loss of Rs. 992.93 lakhs and Rs. 1,456.67 lakhs on a target redemption forward contract.
Other matter: two subsidiaries and one joint venture reviewed by other auditors; conclusion not modified.

Notes to the results

Exceptional item: provision of Rs. 204.00 lakhs for stamp duty on NCLT-sanctioned demerger scheme; balance Rs. 5,746.00 lakhs disclosed as contingent liability; writ petition pending in Gujarat HC.
Quarter and half year ended 30 Sept 2025 restated; profit after tax lower by Rs.743.03 lakhs and Rs.1,090.05 lakhs respectively.
FY2026 exceptional item of Rs. 279.49 Lakhs incremental provision for new labour codes.

What the board approved

At its meeting on October 28, 2026, the board considered and approved the company's unaudited financial results, standalone and consolidated, for the quarter and half year ended September 30, 2026, on the recommendation of the Audit Committee, along with the limited review reports of the statutory auditors.

The financial results, the statement of assets and liabilities and the statement of cash flows are also being made available on the company's website.

Change of Chief Financial Officer

Shri Piyush Lakhani has resigned as Chief Financial Officer and Key Managerial Personnel to pursue an alternate career opportunity outside the organisation. He will be relieved from the services of the company with effect from the close of business hours on October 30, 2026.
Smt. Vibha Thakkar has been appointed Chief Financial Officer and Key Managerial Personnel with effect from October 31, 2026, on the recommendation of the Nomination and Remuneration Committee and the Audit Committee.
She is a qualified Chartered Accountant from the Institute of Chartered Accountants of India, has worked across finance functions in speciality chemicals, FMCG, automotive, pharmaceuticals and Big4 consulting, and most recently served as AVP-Finance & Accounts at NOCIL Limited.

Auditor's review conclusion

The statutory auditors, Gokhale & Sathe LLP, concluded that nothing has come to their attention that causes them to believe that the accompanying standalone statement, prepared in accordance with Ind AS 34, has not disclosed the information required under Regulation 33 or contains any material misstatement.

A limited review gives moderate assurance and is not an audit opinion.

Emphasis of Matter

The Collector and Additional Superintendent of Stamps, Gandhinagar, by order dated 29 August 2026, determined stamp duty of Rs. 2,500.00 lakhs under the Gujarat Stamp Act, 1958 on the National Company Law Tribunal order sanctioning the scheme under which the pharmaceutical undertaking of Aarti Industries Limited was demerged into the company, and levied penalties of Rs. 3,450.00 lakhs.
The company has recognised a provision of Rs. 204.00 lakhs, presented as an exceptional item, and has disclosed the balance of Rs. 5,746.00 lakhs as a contingent liability.
The company has challenged the order by a writ petition before the Hon'ble High Court of Gujarat, which is pending, and on an assessment of the order considers the balance not probable.
The auditors also drew attention to the restatement of the figures for the quarter and half year ended 30 September 2025 to recognise a fair value loss on a target redemption forward contract entered into during the year ended 31 March 2025.
The auditors' conclusion is not modified in respect of these matters.

Standalone results (quarter ended September 30, 2026)

Revenue from operations (Net): Rs. 61,258.69 lakhs, against Rs. 41,728.78 lakhs in the same quarter a year earlier.
Net Profit for the period: Rs. 6,575.29 lakhs, against Rs. 2,549.88 lakhs.

What the disclosure shows

Two separate subjects sit alongside the results: a leadership change at the CFO position effective across October 30 and October 31, 2026, and a stamp duty demand the company is contesting in court.
The penalty component alone is Rs. 3,450.00 lakhs, and the amount carried as a contingent liability after the provision is Rs. 5,746.00 lakhs. Whether the company's position prevails is a matter before the court.
The auditors' conclusion on the results themselves is not modified by these matters.

10,106.02 (Rs in lakhs)Profit before tax, quarter

Profit after tax, quarter7,614.27 (Rs in lakhs)

Net Profit for the period, standalone, same quarter₹2,549.88 lakh

Profit before tax, quarter 10,106.02 (Rs in lakhs): Profit after tax, quarter 7,614.27 (Rs in lakhs), Net Profit for the period, standalone, same quarter ₹2,549.88 lakh.

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