Aarti Industries

Aarti Industries delivered robust quarterly results with revenue rising 21% quarter-on-quarter to Rs. 2,250 crore and EBITDA surging 36% to Rs. 292 crore, driven by improved volumes and capacity utilization. The specialty chemicals company successfully diversified markets toward Europe, Middle East and Africa to offset US tariff impacts while maintaining growth momentum through operational leverage and cost optimization initiatives.

Aarti Industries reported revenue growth of 26% year-over-year and 21% quarter-over-quarter in Q2 FY26, reaching Rs. 2,250 crore. The growth was primarily driven by increased volumes in MMA (Methyl Methacrylate) products and benefits from deferred bulk shipments from Q1. MMA achieved highest quarterly production with 98% capacity utilization at 260 KT capacity. The company secured a long-term chlorine supply agreement with DCM Shriram, increasing supply from 150 TPD to 350 TPD to support future downstream growth. However, margins remained under pressure across most product portfolios, and US tariffs impacted volumes for key end-use applications including dyes and polymers. The company is fast-tracking execution of capacity expansions, including MMA debottleneckingto 300 KT and PEDA capacity of 4000 MT, both expected to commission in Q4 FY26. Finance costs included forex mark-to-market loss of Rs. 34 crore on ECB borrowings. The company received favorable income tax appellate orders resulting in exceptional income of Rs. 29 crore, while exceptional expenses included Rs. 7 crore provision for doubtful land advance.

Aarti Industries reported a net profit of Rs 101 crores for the quarter ended September 30, 2025, compared to Rs 44 crores in the previous quarter, marking a significant increase. Revenue from operations rose to Rs 2,085 crores from Rs 1,636 crores quarter-on-quarter. The company recorded exceptional income of Rs 22 crores, primarily from Rs 29 crores interest income received on historic income tax appeals for assessment years 2010-11 to 2019-20. However, the company took a Rs 7 crores provision for an advance payment made to an NBFC for land purchase, which is now under dispute. For the half-year period, net profit increased to Rs 144 crores from Rs 193 crores in the previous year. The company operates in specialty chemicals segment and maintains AA/Stable credit ratings from CRISIL and India Ratings. Commercial papers outstanding as of September 30, 2025 stood at Rs 400 crores.