Aarti Industries Reports Over 3.5x Jump in Q1 Profit, Reaffirms FY27 Capex Guidance
Key Takeaways
- •Aarti Industries' revenue from operations increased 42.42% year-on-year to ₹2,387 crore in the June quarter, while EBITDA rose 79.8% to ₹383 crore.
- •The company's EBITDA margin expanded to 16.04% from 12.71% in the same quarter last year, reflecting better capacity utilisation and an improved product mix.
- •Zone IV expansion and chlorotoluene value chain projects have been delayed by four to six months due to labour constraints and will now be commissioned in phases over the next three quarters.
- •Aarti Industries reaffirmed its FY27 capital expenditure guidance of ₹700–800 crore, with the Superform joint venture and Re Aarti recycling venture remaining on track for commissioning during the fiscal year.
Aarti Industries Reports Over 3.5x Jump in Q1 Profit, Reaffirms FY27 Capex Guidance
Aarti Industries, a leading Indian specialty chemicals manufacturer with established positions in benzene-based intermediates and downstream chemistry, delivered robust June-quarter earnings, with operating profit growth significantly outpacing revenue growth and EBITDA margin expanding to 16.04%. The results mark a notable recovery for the company, which had navigated muted demand and pricing pressures in the specialty chemicals sector over the preceding quarters.
Revenue from operations rose 42.42% year-on-year to ₹2,387 crore, up from ₹1,676 crore in the same period last year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) surged 79.8% to ₹383 crore, compared with ₹213 crore a year earlier. The EBITDA margin expanded to 16.04% from 12.71% in the year-ago quarter, reflecting improved capacity utilisation and a more favourable product mix.
Despite execution delays, the company said its growth pipeline remains intact. Aarti Industries announced that its Zone IV expansion and chlorotoluene value chain projects have been deferred by four to six months owing to labour constraints. These projects will now be commissioned in phases over the next three quarters.
The company expects products from its PEDA and MPP platforms to begin scaling up as customer qualification progresses and new MPP capacity comes on stream in the second quarter of FY27. This phased ramp-up reflects the typical multi-quarter qualification cycles in regulated end-markets such as pharmaceuticals and agrochemicals, where Aarti supplies critical intermediates to global customers.
Aarti Industries reiterated its FY27 capital expenditure guidance of ₹700–800 crore. The company confirmed that strategic projects, including the Superform joint venture and the Re Aarti chemical recycling venture, remain on track for commissioning in Q2 and the second half of FY27, respectively. The Re Aarti initiative positions Aarti within the emerging circular-economy segment of chemical manufacturing, as sustainability-linked recycling gains traction across the global chemicals value chain.
Source: CNBC-TV18