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Aarti Industries Results: Latest Quarterly Results & Analysis

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Aarti Industries Ltd. 06 Nov 2025 18:03 PM
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Q2FY26 Quarterly Result Announced for Aarti Industries Ltd.

Specialty Chemicals company Aarti Industries announced Q2FY26 results

  • Revenue: Rs 2,250 crore, up 21% QoQ, led by improved volumes across key product categories.
  • EBITDA: Rs 292 crore, up 36% QoQ, reflecting higher capacity utilisation and cost optimisation.
  • PAT: Rs 105 crore, up 150 % QoQ, driven by better operating leverage and after considering exceptional items (as detailed in the financials declared earlier).
  • CAPEX: Rs 267 crore for the quarter; FY26 outlay expected below Rs 1,000 crore, reflecting continued capital discipline.

Suyog Kotecha, Executive Director & Chief Executive Officer, said: “This quarter reflected the inherent resilience and agility of our diversified portfolio. Despite US tariff headwinds, our strong customer engagement and proactive regional rebalancing helped us maintain the momentum. We are expanding our footprint in Europe, the Middle East, and Africa while optimising our US strategy to ensure long-term competitiveness. With key capacity additions nearing completion, Aarti Industries is well-positioned to capitalise on the next phase of global recovery. Our focus remains clear: to de-risk operations, accelerate innovation in high-growth chemistries, and maintain strong financial discipline. As trade flows stabilise and demand revives, we anticipate steady margin expansion across our portfolio."

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Specialty Chemicals company Aarti Industries announced Q1FY26 results

  • Revenue: Rs 1,867 crore, reflecting near-term impact of raw-material corrections and deferred export flows.
  • EBITDA: Rs 215 crore, with margins affected by input price volatility and temporary operational disruptions.
  • PAT: Rs 43 crore, in line with operational trends and higher interest and depreciation.

Suyog Kotecha, CEO and Executive Director, said: “This was a uniquely challenging quarter shaped by global and regional volatility. Yet, what remained consistent was our commitment to long-term value creation. Our volumes stayed resilient, key capacity expansions are ramping up, and our green and circular initiatives continue progressing as planned. We are already seeing signs of normalisation in customer activity, raw material costs, and logistics, which reinforces our confidence in a stronger performance ahead. With the recent development on the US tariff front, we are closely monitoring the situation to ascertain the impact and plan appropriate actions.”

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Specialty Chemicals company Aarti Industries announced Q4FY25 results

Q4FY25 Financial Highlights:

  • Revenue: Rs 2214 crore, marking 9% QoQ and 13% YoY growth.
  • EBITDA: Rs 266 crore, up 13% QoQ, reflecting operating leverage and improved cost controls.
  • PAT: Rs 96 crore, rising 109% sequentially on the back of better volumes and efficiency gains.

Suyog Kotecha, CEO & Executive Director, said: “We are encouraged by the positive momentum across our businesses, particularly the recovery in core product volumes and the continued execution of our expansion and sustainability agenda. FY26 begins amid a volatile macroeconomic environment, US trade barriers, and geopolitical tensions. With a strong pipeline, we are focused on delivering consistent, value-led growth while strengthening our position as a global partner of choice.”

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Specialty Chemicals company Aarti Industries announced Q3FY25 results

  • Quarterly revenues at Rs 2,035 crore, marking a 14% increase QoQ.
  • EBITDA grew by 17% QoQ to Rs 236 crore, driven by Volume growth, Operating leverage and Product mix improvements.
  • PAT at Rs 46 crore, a 12% QoQ decrease (impacted by mark to market loss on Longterm ECB Loan of Rs 23 crore arising due to Rupee depreciation).
  • Exports saw sequential growth, while domestic volumes remained stable across most end-use applications.

Suyog Kotecha, CEO and Executive Director of Aarti Industries, said: “In a dynamic global environment, AIL delivered a resilient performance despite market challenges in Q3FY25 with EBITDA growing sequentially on the back of strong volume growth. While pricing pressures weighed on margins, we remain focused on risk mitigation through cost efficiencies, product diversification and geographic expansion into the US, Europe, and Japan markets. With a robust innovation pipeline and sustainability at our core, we are well-positioned to capitalize on future opportunities in high-growth applications.”

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Specialty Chemicals company Aarti Industries announced Q4FY23 & FY23 results:

  • Q4FY23:
    • Revenues of Rs 1,826 crore; an increase of 11.2% over Q4FY22
    • EBITDA of Rs 252 crore; a decrease of 3.8% over Q4FY22
    • PAT of Rs 149 crore; an increase of 2.1% over Q4FY22
  • FY23:
    • Revenues of Rs 7,283 crore; an increase of 25.1% over FY22
    • EBITDA of Rs 1,089 crore; a increase of 18.5% over FY22
    • PAT of Rs 545 crore in FY23

Commenting on the performance for Q4FY23, Rajendra Gogri – Chairman & MD at Aarti Industries said: “Financial Year 2023 was a challenging period for the industry guided by unfolding of several material events including Russia-Ukraine conflict, the inflationary surge in input prices & energy costs and slowing demand in few developed markets. Given this backdrop, we reported resilient performance and are glad to have concluded the year on a high with EBITDA of close to Rs 1,100 crore, as guided previously. Despite the challenges due to the pandemic, external market-linked disruptions, supply chain issues, inflationary costs, etc faced in the last five years, our chemical EBIDTA grew from Rs 534 crore in FY18 to Rs 1,089 crore in FY23. This more than 2x growth in EBIDTA is a testament to our robust and resilient business model and our ability to steer onto the growth journey in the most challenging periods.

Our aspiration of driving growth in a sustained and responsible manner, while being future-ready to capitalise on upcoming market opportunities forms the bedrock of success. All our expansion initiatives remain intact. We have operationalized the two speciality chemical process blocks in Q4 FY23. Our other key projects will be commissioned in a phased manner over the next two years as guided earlier. Our focus is to create new chemical value chains and introduce high-potential products to elevate our leadership position within the chosen chemistries. This will result in significant volume growth from the current year FY24 and meaningful accretion to both revenues and earnings, as guided earlier.

We firmly believe that this is a ‘Golden Decade’ for the Indian Chemical industry and our teams are working relentlessly on building scale for select high-potential opportunities backed by our inherent strengths and expertise. Over several years, AIL had been pioneering in introducing various products and chemistries in India and also put India into the Global Market. Our future plans for Chloro-toluene and downstream is one more addition to AIL introducing a newer range of products and complex chemistry for the first time in India and will benefit from the opportunities for import substitution and export opportunities for global markets. Our ability to adapt to the changing market conditions and commitment to delivering quality products and services to our customers has been the cornerstone of our success. As we look ahead, we remain optimistic and are confident of demonstrating sustained earnings growth thereby augmenting value for all our stakeholders.”

 

 

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Specialty chemical firm Aarti Industries announced Q3FY23 results:

  • Q3FY23:
    • Revenues of Rs 1,854 crore; an increase of 12% over the previous year.
    • EBITDA of Rs 289 crore; an increase of 26% over the previous year.
    • PAT of Rs 137 crore.
      • Revenue grew on a YoY basis on account of inflated RM prices, utility costs, freight costs, etc. On QoQ, despite some corrections in prices, revenues were maintained on account of a higher mix of value-added products.
      • Performance was also steered by higher contributions from the legacy products targeting essential end-user segments due to continued better operating environment; incremental revenues from newly added capacities further aided the performance momentum.
      • Product offtake linked to the Textiles industry like Dyes and Pigments remains subdued, as directed in the previous quarter. The same is expected to start recovering over the next two to three quarters.
    • Witnessed QoQ decline in some input costs and logistics, while few still remained elevated during the quarter. The company has robust pricing mechanisms in place to mitigate the impact of these inflationary cost pressures, and the same is being passed on to the customers thereby protecting absolute profitability.
    • EBITDA improvement was significant, which came on the back of our dynamic product mix and our efforts to mitigate the global challenges to push for a few high-value products while the demand for a few of the products remains subdued.
    • Depreciation as guided earlier is in line with the new capacities commissioned. While Finance costs had an impact of M2M loss of about Rs 11 crore in respect of the unhedged ECBs.
    • Various growth initiatives like NCB capacity expansion and specialty chemicals plants are ongoing. These are expected to come on stream over the next two quarters and will start revenues in a phased manner from H1FY24.

Commenting on the performance for Q3 FY23, Rajendra Gogri, Chairman & MD at Aarti Industries Limited, said: “We have demonstrated sustained performance build-up during the period under review, with strong gains in both topline and profitability metrices despite softness in demand across few end-user categories. I am glad how our teams have swiftly reacted to this changing operating scenario and channelized their vast industry experience to deliver a resilient performance. New capacity lines added in the past few quarters have started contributing to the overall performance and this will ramp up in the ensuing period. We witnessed a moderation in some input cost line items, while inflation in other costs persisted. We expect this to stabilize soon, the impact of which will be evident in the ensuing period.

Our historic partnership on Nitric Acid off-take will significantly benefit us in the long run and ensure that we remain adequately fueled to achieve our ambitious growth projections. On a separate note, I am pleased to share that we have commercialized the facility linked to the 3rd Long-Term Contract at Jhagadia, a positive contribution of which will start unfolding from the next financial year.

Our growth aspirations are huge, and we are making all the right investments to ensure that we further cement our leadership position in the chosen chemistries, while leveraging our expertise in some of the high-potential newer chemical value chains where the addressable opportunity is humongous. The coming two years will see maximum gains arising from various CAPEX projects announced in the past. Overall, we remain confident of delivering what is expected out of us through a combination of our expertise in manufacturing and process enhancements, blended with strength in R&D and innovation. Our objective is to increase shareholder value by capitalizing on the positive sector tailwinds.”

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Specialty chemical firm Aarti Industries announced Q2FY23 results:

  • Q2FY23:
    • Revenues of Rs 1,847 crore; an increase of 29% over the previous year
    • EBITDA of Rs 267 crore; an increase of 5% over the previous year
    • PAT of Rs 124 crore

Rajendra Gogri, Chairman & MD at Aarti Industries Ltd, said: “Q2 of the current fiscal year has been an eventful period for us. Not only have we delivered a stable financial performance, but also received NCLT approval to demerge our Pharma business into a separate entity – Aarti Pharmalabs Limited, thereby significantly enhancing value for our stakeholders while also achieving operational efficiencies. This will help the companies take appropriate strategic decisions in view of the growth opportunities available under the respective businesses.

The external environment continues to be challenging aggravated by high costs both on raw materials and utilities side, moderate slowdown in some end-user industries related to textiles combined with severe forex fluctuations and other global uncertainties. Against this backdrop, our performance has been resilient. Stability in performance over the years is an outcome of robust proficiency achieved in handling multiple chemistries with manufacturing excellence. Our execution capabilities and delivery commitments are best-in-class, and our customers trust us for that. We remain the go-to players for them when it comes to chemistries linked to Benzene and Toluene product chains among others. Our capex initiatives are well on track, and this will steer the performance momentum in the forthcoming period. Work is underway to create newer chemical value chains and also introduce high-potential products to expand the addressable market opportunity while catering to increased demand from key customers. We expect full benefit of our expansion program to unfold in FY24 and FY25 as we anticipate demand recovery from Q4 of the current fiscal year. Further, with the volume ramp-up for the new capacities coming in significantly in FY24 and FY25, while fixed costs will generally not increase significantly, the gross profit to EBITDA conversion will improve in FY24 and beyond

We will continue to remain agile, while capitalising on opportunities created through swift movement in the Indian chemical industry landscape. Our R&Dp-led product profile combined with incremental gains from existing value-chains will set the tone and improve our value proposition going ahead.”

 

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Specialty Chemicals firm Aarti Industries announced Q1FY23 Result :

  • Significant increase in revenues was on account of pass-on for the elevated Inputs prices, Utility costs and Logistics costs.
  • Commenced commercial production at the new block of the USFDA approved API facility at Tarapur in early Q2; this will further strengthen Company’s niche offerings in Pharma
  • The project related to 1st and 2nd long term contract has started seeing volume ramp up; utilisation levels expected to increase to ~70% by the end of FY24
  • Revenues of Rs. 2,173 crore; increase of 45% over previous year
  • EBITDA of Rs. 369 crore; growth of 18% over previous year
  • PAT of Rs. 189 crore; up by 15% over previous year

Commenting on the performance for Q1 FY23, Mr. Rajendra Gogri – Chairman & MD at Aarti Industries Limited said: “I am pleased to share that we started the new financial year on an encouraging note with healthy topline growth of 45% YoY and EBITDA improvement of 18% YoY in Q1 of FY23. This strong performance has come on the back of challenging operating environment premised on continued inflationary pressure in key raw materials and other utilities combined with logistical disruptions and global uncertainties. The global inflationary trend and recession fears have resulted in modest slowdown in demand from some end user segments. Given this backdrop, our performance has been resilient, and I would like to congratulate our workforce for demonstrating agility and traversing through these pressures to deliver stellar performance in a tough environment. We remain committed to drive over businesses through challenging situations and deliver robust performances.

Based on strong business visibility, we had charted our growth plans and CAPEX deployment is underway to accomplish our longterm goals. We will see new capacities being commissioned in a phase-wise manner from this financial year that will elevate our performance trajectory. In addition, we are also expanding our product portfolio, introducing new high-potential and complex chemical value-chains, and strengthening our R&D capabilities to cement our leadership position in the chosen chemistries. Our planned investments close to ~Rs. 3,000 crore in the over two years are on track, that will define our growth strategy.

Overall, we are well placed to capture incremental market share based on our superior execution capabilities combined with planned scale-up for key products and addition of niche chemical value-chains. We strongly believe in the growth potential of the Indian Chemical & Pharma industry and will endeavor to make significant inroads to deliver sustained profitability.”

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Specialty Chemicals company Aarti Industries declares Q3FY22 result:

  • Revenue expansion during the quarter includes cost escalations passed on to the customers due to substantial increase in raw material prices as well as fuel and logistics costs.
  • Accrual of termination fees in respect of the long-term contract of Rs 631 crores resulting higher revenues. As a result, EBIDTA includes Rs 611 crs (net of expenses/currency m2m in relation to the termination fees) during the quarter.
  • Absolute YoY growth of 25% in EBITDA (excluding the impact of accrual of termination fees) reflects the ability to substantially pass-on input price increase to the customer.
  • EBIDTA and profitability (excluding termination fees) at all time highs.
  • Key projects such as Project for the second long-term supply contract and pharma API/intermediate expansion projects nearing final stages and expected to commercialised in Q4 FY22.
  • Macro factors indicate positive traction to continue in the near to mid-term

Commenting on the performance for Q3 FY22, Mr. Rajendra Gogri – Chairman & MD at Aarti Industries Limited said: “During Q3, our core EBITDA of Rs. 356 crore is once again the highest in our operating history, demonstrating the ability of the business to maintain margins by passing on to customers the substantial input cost inflation experienced during the reported period. Our current operating trajectory also suggests resumption of growth momentum in FY22 following a period of slower expansion in the previous two years due to the impact of a tough macro environment. We remain focused on addressing the large opportunity arising from import substitution and supply chain diversification by global majors. Our established position as a partner of choice across an ever-increasing number of engagements is driving scale. We are also investing in product diversification, capacity expansion/upgradation in both speciality chemicals and pharmaceuticals as well as building out internal capabilities on quality, safety, health and environment and an expanded R&D pipeline.

We believe this augmented organizational framework positions us strongly to capture strategic growth opportunities. This will be supported by the expanded pipeline of operationalized projects that are currently underway, providing clear visibility to the business over the next several years. As India emerges as an increasingly significant global chemicals supply destination, backed by a supportive regulatory framework instituted by the government, our capex commitments driven by a wellcapitalized balance sheet, will allow the pursuit of aggressive growth in line with our business blueprint. Our plan to create individually focused businesses in our two core verticals will further enhance value for all our stakeholders.”

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Financial Results

  • Sustained revenue growth driven by volume expansion and 74% contribution from value-added products
  • Gross margins returned to normalized levels
  • Domestic demand for discretionary products has returned to pre-covid levels, while for exports markets the same are recovering gradually
  • Pharma segment revenues at record levels
  • Finance charges lower based on lower cost of funds.
  • Capex in Q2FY22: Rs 317 crore; 6M aggregate capex of Rs. 620 crore – in line with guidance of Rs. 1,200-1,500 crs for FY22.
  • Re-iterated guidance of over 25% growth for FY22.
  • Strong momentum in H1, driven by rising demand across various products.
  • Higher contribution from domestic demand as the local manufacturing ecosystem continues to progress.

Commenting on the performance for Q2 FY22, Mr. Rajendra Gogri – Chairman & MD at Aarti Industries Limited said: “Maintaining our growth trajectory, we have once again recorded the highest ever revenue and profitability in our operating history. We evaluate EBITDA as the key monitorable for the business and on this parameter we have delivered 22% growth on YoY basis.

Based on the milestones achieved in the first half of FY22, we remain well-positioned to meet our growth guidance. We are further encouraged by our recent achievements that come in the backdrop of a highly volatile operating environment during this entire period – marked by significant shifts in raw material prices, coal availability, supply chain disruptions, competitive pressures as well as constantly changing dynamics in our end-user markets.

We are seeing improving demand shifts across key customer segments both in international markets and within the expanding Indian chemicals ecosystem. We believe the current visibility – for India as an increasingly significant global chemicals supply destination and for players such as Aarti that are recognized as partners of choice by leading innovator companies – is likely to remain robust over the long term.

On the operational front, we are witnessing progressively higher utilization of recently commissioned facilities and we remain in line for the launch of our second and third long?term customer contracts, NCB expansion and pharma capacity enhancement for both APIs and intermediates. These enhancements provide us the confidence of meeting our growth guidance for FY24. We are also aggressively pursuing the previously shared business plan and revenue targets for the rest of the current decade, supported by a well-capitalized balance sheet.”

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