Aarti Pharmalabs (NSE:AARTIPHARM) Debt-to-EBITDA : 1.49 (As of Mar. 2026) — 84% Above Median

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NSE:AARTIPHARM Aarti Pharmalabs Ltd NSE:AARTIPHARM
55 GF Score
Price ₹673.80
GF Value ₹646.89
Valuation Fairly Valued
! 3 Warning Signs
View Full Analysis

What is Aarti Pharmalabs Debt-to-EBITDA?

Aarti Pharmalabs NSE:AARTIPHARM +2.12% 55 Debt-to-EBITDA is 1.49 as of Mar. 2026, which is 84% above its 10-year median of 0.81. GuruFocus rates NSE:AARTIPHARM with a GF Score™ of 55/100 and a GF Value™ of ₹646.89 (Fairly Valued). The stock has 3 warning signs investors should review. Among 690 Drug Manufacturers companies, Aarti Pharmalabs ranks worse than 53.77% on this metric.

Debt-to-EBITDA measures a company's ability to pay off its debt.

Aarti Pharmalabs's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was ₹5,164 Mil. Aarti Pharmalabs's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2026 was ₹2,380 Mil. Aarti Pharmalabs's annualized EBITDA for the quarter that ended in Mar. 2026 was ₹5,068 Mil. Aarti Pharmalabs's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 was 1.49.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Aarti Pharmalabs's Debt-to-EBITDA or its related term are showing as below:

NSE:AARTIPHARM' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -3.76   Med: 0.81   Max: 1.96
Current: 1.89

During the past 6 years, the highest Debt-to-EBITDA Ratio of Aarti Pharmalabs was 1.96. The lowest was -3.76. And the median was 0.81.

NSE:AARTIPHARM's Debt-to-EBITDA is ranked worse than
53.77% of 690 companies
in the Drug Manufacturers industry
Industry Median: 1.65 vs NSE:AARTIPHARM: 1.89

Aarti Pharmalabs  (NSE:AARTIPHARM) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Aarti Pharmalabs Debt-to-EBITDA Related Terms


Aarti Pharmalabs Debt-to-EBITDA Historical Data

* Premium members only.

The historical data trend for Aarti Pharmalabs's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Aarti Pharmalabs Debt-to-EBITDA Chart

Aarti Pharmalabs Annual Data
Trend Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Debt-to-EBITDA
Get a 7-Day Free Trial 1.73 0.63 0.73 0.89 1.96

Aarti Pharmalabs Quarterly Data
Mar21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.73 0.00 2.22 0.00 1.49

NSE:AARTIPHARM vs ZTS: Debt-to-EBITDA Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Aarti Pharmalabs's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Aarti Pharmalabs Debt-to-EBITDA vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Aarti Pharmalabs's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Aarti Pharmalabs's Debt-to-EBITDA falls into.


NSE:AARTIPHARM
55GF Score
Aarti Pharmalabs Ltd NSE:AARTIPHARM
Debt-to-EBITDA is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Aarti Pharmalabs Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Aarti Pharmalabs's Debt-to-EBITDA for the fiscal year that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(5163.739 + 2379.874) / 3841.591
=1.96

Aarti Pharmalabs's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2026 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(5163.739 + 2379.874) / 5067.904
=1.49

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.

Frequently Asked Questions Learn more about Debt-to-EBITDA →
What does a Debt-to-EBITDA of 1.49 mean?
Aarti Pharmalabs (NSE:AARTIPHARM) has a Debt-to-EBITDA of 1.49 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Aarti Pharmalabs. This is 84% above median its historical median of 0.81. According to the industry distribution chart, Aarti Pharmalabs ranks #371 out of 690 companies in the Drug Manufacturers industry, placing it in the top 53.8%.
Is Aarti Pharmalabs' Debt-to-EBITDA too high?
Aarti Pharmalabs' current Debt-to-EBITDA of 1.49 is 84% above median its 10-year median of 0.81. The Drug Manufacturers industry median Debt-to-EBITDA is 1.65. Aarti Pharmalabs' value of 1.49 is 9.7% below this industry median. Based on the distribution chart, Aarti Pharmalabs ranks #371 out of 690 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Aarti Pharmalabs has a GF Score™ of 55/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Aarti Pharmalabs' Debt-to-EBITDA compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Aarti Pharmalabs ranks #371 out of 690 companies for Debt-to-EBITDA. This places Aarti Pharmalabs in the lower half of its industry. The industry median Debt-to-EBITDA is 1.65. Aarti Pharmalabs' value of 1.49 is 9.7% below this benchmark. While the company's 10-year median is 0.81 vs. the industry median of 1.65, Aarti Pharmalabs has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Drug Manufacturers company?
The median Debt-to-EBITDA among Drug Manufacturers companies is 1.65, based on 690 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Aarti Pharmalabs's current Debt-to-EBITDA of 1.49 is 9.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Aarti Pharmalabs. For the Drug Manufacturers industry, the median Debt-to-EBITDA is 1.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aarti Pharmalabs's current Debt-to-EBITDA is 1.49, which is 84% above median its own 10-year median of 0.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aarti Pharmalabs stock overvalued right now?
Based on GuruFocus' analysis, Aarti Pharmalabs (NSE:AARTIPHARM) is currently considered Fairly Valued. The stock's GF Value™ is ₹646.89, compared to a current price of ₹673.80 — trading 4.2% above its estimated fair value. The current Debt-to-EBITDA is 1.49, which is 84% above median its 10-year median of 0.81 and 9.7% below the Drug Manufacturers industry median of 1.65. Aarti Pharmalabs' overall GF Score™ is 55/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Aarti Pharmalabs (NSE:AARTIPHARM), the current Debt-to-EBITDA is 1.49 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Aarti Pharmalabs (NSE:AARTIPHARM) Overvalued in 2026?

Based on GuruFocus' analysis, Aarti Pharmalabs stock appears to be overvalued. The current stock price of ₹673.80 is trading 4.2% above its estimated GF Value™ of ₹646.89. GuruFocus considers Aarti Pharmalabs to be Fairly Valued.

Key valuation signals for NSE:AARTIPHARM:

  • Debt-to-EBITDA: 1.49 (84% above median its 10-year median of 0.81)
  • GF Value™: ₹646.89 vs. price of ₹673.80 (4.2% above fair value)
  • GF Score™: 55/100 with 3 warning signs
  • Industry Position: 9.7% below the Drug Manufacturers median (#371 of 690)

No single metric tells the full story. See the NSE:AARTIPHARM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Aarti Pharmalabs Business Description

Other Exchanges 543748:India
Address Mulund Goregaon Link Road, 204, 2nd Floor, Udyog Kshetra, Mulund West, Mumbai, MH, IND, 400080
Aarti Pharmalabs Ltd manufactures pharmaceuticals and nutraceuticals with a footprint. The company manufactures Active Pharmaceutical Ingredients (API), pharmaceutical intermediates, acids, and xanthine derivatives, including caffeine, theophylline anhydrous, aminophylline, etophylline, and theophylline in India. It also offers Contract Development and Manufacturing Services (CDMS) for drug substance (NCE, RSM, Intermediates) projects. Geographically, the company generates maximum revenue from its customers located outside India.
55GF Score

Get the complete analysis for NSE:AARTIPHARM

Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹673.80
Price
₹646.89
GF Value