- 09 May 2025
- ICICIdirect Research
AARTI INDUSTRIES REVENUES GREW ~10 PERCENT YOY
AARTIIND - 467 Change: -1.90 (-0.41 %)News: Revenues grew ~10% YoY and 6% QoQ to ₹1,949 crore, primarily driven by a volume uptick in the Dyes, Pigments, and Polymer Additives segments, while the Agrochemicals segment remained soft. EBITDA declined 5.3% YoY to ₹268 crore, mainly due to a 378 bps contraction in gross profit margin (GPM) to 35.8%. EBITDA margin stood at 13.8%, marking a 221 bps YoY decline. PAT declined 27.3% YoY to ₹96 crore.
View: The company witnessed mixed fortunes in the quarter with volume growth in segments such as Dyes, Pigments, and Polymer Additives and energy business but pricing pressure across various segments. Agrochem continued to remain soft. In all, ~54% of the business is still facing pricing pressure. The management has spelled out lots of measures to improve EBITDA by resorting to cost control, volume improvement, focusing on sun-rise industries and has set the FY28 EBITDA target of ₹ 1800-2200 crore, ROCE of +15% and Debt / EBITDA of <2.5x. However, the achievement of the guidance hinges upon recovery in pricing besides selection and timing of product launches.
Impact: Neutral