Aarti Industries Limited's Board of Directors, at its meeting held on Monday, May 4, 2026, approved the grant of 2,80,700 stock options to certain eligible employees of the company. The grant has been made under the Aarti Industries Limited Performance Stock Option Plan 2022 (PSOP 2022), in compliance with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The company disclosed this development to stock exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Details of the Stock Option Grant

The following table summarises the key parameters of the stock option grant:

Vesting Structure and Conditions

Each stock option granted under PSOP 2022 entitles the holder to apply for 1 (one) equity share of the company of face value Rs. 5/- (Rupees Five Only) each. The vesting of options is structured in equal tranches, with one-third of the total options granted becoming eligible to vest on each anniversary of the grant date over a period of 3 (Three) years. Vesting is subject to the conditions of continued employment with the company and the achievement of specified performance conditions as defined under the plan.

Regulatory Compliance

The grant has been made in accordance with the provisions of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The intimation was formally communicated to BSE Limited and the National Stock Exchange of India Limited by Raj Sarraf, Company Secretary of Aarti Industries Limited, on May 4, 2026.

Aarti Industries has outlined an ambitious capital expenditure-led growth strategy for FY27, anchored by multiple projects including Zone 4, Augene, and the RE Aarti Joint Venture, alongside a ₹300-450 crore pilot project aimed at commercialising new products. The company's management has coupled this CAPEX roadmap with cautious optimism, underpinned by a robust order pipeline, improving capacity utilisation, and a focused cost efficiency drive.

FY27 CAPEX Growth Strategy

Aarti Industries is pursuing growth through a structured capital expenditure programme spanning several key initiatives. The Zone 4 expansion, the Augene project, and the RE Aarti Joint Venture form the core pillars of this multi-project CAPEX agenda. Complementing these initiatives is a dedicated pilot project for new products, with an investment outlay in the range of ₹300-450 crore, signalling the company's intent to diversify and strengthen its product portfolio.

Strategic Outlook and Operational Drivers

Management's cautious optimism for FY27 is anchored in two key operational drivers — a strong order book and better utilisation of existing manufacturing capacity. These factors are expected to contribute meaningfully to the company's revenue and profit trajectory as the fiscal year progresses. Aarti Industries is also targeting profit growth through a combination of cost savings initiatives and the commissioning of new assets, with the dual approach intended to improve margins while simultaneously expanding production capabilities.

Supply Chain Risk Mitigation

Management has identified supply chain risks in West Asia as a key area of focus. Active steps are being taken to reduce exposure to disruptions in the region, reflecting a proactive approach to operational resilience. The company aims to insulate its business from potential volatility arising from geopolitical or logistical challenges in the area.

Key Highlights

• Multiple CAPEX projects planned for FY27, including Zone 4, Augene, and the RE Aarti Joint Venture
• ₹300-450 crore pilot project earmarked for new product development and commercialisation
• Cautious optimism expressed by management for FY27
• Strong order pipeline and improved capacity utilisation identified as primary growth catalysts
• Cost savings and new asset additions form the core of the profit growth strategy
• West Asia supply chain risks being actively addressed by management