Aarti Industries Limited reported a consolidated net profit after tax (PAT) of ₹155 crore for the quarter ended June 30, 2026, a 260% increase from ₹43 crore in Q1FY26. The surge was driven by a 41% year-on-year rise in consolidated revenue from operations to ₹2,627 crore and a 79% jump in EBITDA to ₹385 crore. Despite these strong top-line and bottom-line figures, the company noted volume degrowth due to geopolitical tensions in West Asia, which disrupted supply chains and increased freight costs. Management attributed the profit growth to an optimized product mix, inventory management, and forex gains.

Financial Performance

Consolidated revenue from operations stood at ₹2,627 crore, reflecting a 41% increase compared to ₹1,864 crore in the corresponding quarter of the previous year (derived from 41% growth statement). EBITDA reached ₹385 crore, demonstrating stable operating performance despite temporary pressure on raw material costs linked to crude oil prices. Standalone revenue from operations grew 37% to ₹2,241 crore from ₹1,636 crore. Standalone PAT surged 227% to ₹144 crore from ₹44 crore. The Board of Directors approved the unaudited financial results on July 30, 2026, pursuant to Regulations 30, 33, and 52(4) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by statutory auditors Gokhale & Sathe.

*Derived from stated 41% YoY growth.

Operational Updates and Outlook

The quarter was marked by geopolitical disruptions in West Asia, impacting the company’s Energy business exports. However, Aarti Industries successfully redirected significant volumes to other international markets, limiting overall business impact. Capital expenditure for the quarter stood at ₹180 crore, keeping the FY27 capex programme on track within the guided range of ₹700–800 crore.

Key operational developments include:

• Capacity Expansion: Completed Fuel Additives capacity expansion from 290 KTPA to 360 KTPA in July 2026.
• Project Delays: Zone IV expansion and chlorotoluene value chain projects faced 4-6 month delays due to labor constraints; commissioning expected in phases over the next three quarters.
• New Products: PEDA and MPP products entered customer qualification phase, with MPP plants expected to operationalize in Q2 FY27.
• Sustainability: Achieved EcoVadis Platinum Rating with a score of 87/100, placing the company in the top 1% globally.

Suyog Kotecha, Chief Executive Officer & Executive Director, stated that the performance reflects the strength of the diversified portfolio and disciplined execution. He noted that while near-term macroeconomic uncertainties persist, volumes are expected to recover in Q2 as demand scenarios improve.

What the Numbers Show

The divergence between volume degrowth and significant profit growth (260% PAT increase) highlights substantial pricing power and cost optimization efficiencies. The 79% EBITDA growth outpacing revenue growth indicates improved margin leverage, likely driven by the optimized product mix and forex gains mentioned by management. The successful redirection of exports amidst geopolitical tension underscores the resilience of its diversified global customer base.

Aarti Industries Limited will host a conference call on July 31, 2026, to discuss its financial performance for the first quarter of FY27. The event is scheduled for 12:30 PM IST and will provide investors and analysts with an overview of the company's Q1 FY27 results, which are set to be declared on July 30, 2026. The session will feature a brief management discussion followed by an interactive Question & Answer session.

Management Representation

The management team will be represented by key executives, including Mr. Suyog Kotecha, ED & CEO, and Mr. Chetan Gandhi, CFO. They will address queries regarding the quarterly results and the company's operational outlook.

Conference Call Access Details

Participants are advised to dial in 5–10 minutes prior to the scheduled start time to ensure timely connection. The company has provided multiple access numbers for domestic and international investors to facilitate participation.

Additionally, a pre-registration option is available for participants to connect without waiting for an operator. Upon registering, attendees will receive dial-in numbers, a passcode, and a PIN via email to join the call.