Aether Industries and Dow Chemical International Private Limited (Dow India) launched a collaborative research program on July 31, 2026, to develop new manufacturing technologies for silicones. The partnership aims to create indigenous technology for high-performance materials used in construction, mobility, electronics, healthcare, and personal care. This collaboration establishes a framework for long-term strategic partnership, including the potential commercialization and industrial-scale manufacture of technologies developed through the program.

The announcement was made under Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015. All research and pilot-scale development will be executed jointly by the two companies at Aether’s R&D and pilot facilities in Surat, Gujarat. Dr. Aman Desai, Co-Founder and Director of Research and Operations at Aether Industries, stated that Dow has chosen Aether as its exclusive research partner for this pioneering program. He noted that the collaboration combines Aether's core chemistry competencies with Dow's global leadership in silicone applications to address India's expanding silicone materials market.

Key Details of the Collaboration

Brendy Lange, President of Dow Performance Materials & Coatings, said the collaboration strengthens Dow's ability to bring materials science innovation closer to high-growth markets. Dr. Mukund Parthasarathy, Business Vice President of R&D at Dow Performance Materials & Coatings, added that the approach allows faster movement from science to scalable technologies. Siddhartha Ghosal, Country President of Dow India, highlighted that India's growing demand for advanced materials presents a strong opportunity to develop differentiated technologies closer to the market. He emphasized that the program brings together strengths to create value for customers and support local innovation.

What the Numbers Show

While specific financial figures for the collaboration were not disclosed, the strategic alignment indicates a significant shift towards localized R&D capabilities in India. By leveraging Aether's existing infrastructure in Surat, Dow reduces the time-to-market for new silicone solutions. The exclusivity of Aether as the research partner suggests a deep integration of technical resources, potentially lowering development costs and accelerating the path from pilot scale to industrial manufacture. This model contrasts with traditional offshore R&D structures, positioning India as a hub for specialized chemical innovation rather than just a manufacturing base.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE0BWX01014/06e4521d89c44d37.pdf

Aether Industries reported a consolidated net profit of ₹627 million for the first quarter ended June 30, 2026 (Q1FY27), marking a 33.6% year-on-year increase from ₹470 million in the corresponding period of the previous year. The specialty chemicals manufacturer saw its revenue from operations grow by 27.2% to ₹3,266 million, driven by robust demand in Contract Exclusive Manufacturing (CEM) and Large Scale Manufacturing (LSM). EBITDA for the quarter stood at ₹1,028 million with a margin of 31%, compared to ₹785 million and 31% in Q1FY26. The Board of Directors approved these unaudited financial results during a meeting held on July 31, 2026.

Financial Performance Overview

The company's top-line expansion was primarily fueled by higher revenue from operations, which increased from ₹2,566 million in Q1FY26 to ₹3,266 million in Q1FY27. Total income rose to ₹3,342 million from ₹2,587 million year-ago. Other income also contributed significantly, jumping to ₹77 million from ₹21 million in the prior year's first quarter.

Profit before tax stood at ₹835 million, up from ₹616 million previously. After accounting for total tax expenses of ₹207 million, the net profit attributable to owners reached ₹627 million. Earnings per share (basic) were reported at ₹4.77, an increase from ₹3.55 in Q1FY26.

The following table summarises the key financial metrics for the quarter:

Segment Mix and Revenue Drivers

Revenue by business model in Q1FY27 was dominated by Contract Exclusive Manufacturing (CEM), which contributed 51.5% (₹1,656 million), followed by Large Scale Manufacturing (LSM) at 39.1% (₹1,258 million), and Contract Research & Manufacturing Services (CRAMS) at 9.3% (₹301 million). Regionally, domestic sales accounted for 62.5% of revenue, while exports, including deemed exports and SEZ sales, made up 37.5%.

By end-use sector, Pharma remained the largest contributor at 32.2%, followed by Oil & Gas at 31.4%. Material Science contributed 16.6%, while Agro accounted for 9.5%. The company noted that Oil & Gas and Material Science are expected to be main drivers despite new product launches in Pharmaceuticals and Agrochemicals.

Operational Milestones and R&D

Aether Industries spent ₹198.07 million on Research & Development in Q1FY27, accounting for 6.16% of revenues. This includes both revenue expenditure (2.5%) and capital expenditure (3.6%). The company has installed 18 fume hoods in its current R&D center and is expanding its new R&D building, expected to be completed by Q1FY28.

Key operational highlights for the quarter include:

• Site 5 Phase One: Two production blocks commenced commercial operation in Q1FY27, with revenue contribution expected from Q2FY27 onwards.
• Site 3++: Commercial production started with ramp-up ongoing.
• Customer Acquisition: 10 new customers were onboarded across all business models during Q1FY27.
• Audits: Accomplished 9 customer and certification audits, proving operational excellence.

Insurance Settlements and Corporate Actions

A material factor influencing the current quarter's results was the settlement of an insurance claim stemming from a fire at Manufacturing Facility-II in November 2023. During Q1FY27, the insurance company paid a balance settlement of ₹260.05 million, comprising ₹225.05 million for asset loss and ₹35.00 million for financial loss/profit (FLOP).

Additionally, the company recognized a loss of ₹70 million in the previous fiscal year due to a fire at an external warehouse in March 2026. An insurance claim for this incident is currently under assessment.

During the same meeting, the Board approved several strategic actions:

• Director Re-appointments: Ashwin Desai as Managing Director, and Purnima Desai, Rohan Desai, and Aman Desai as Whole-time Directors, each for a five-year term effective October 1, 2026.
• Auditor Appointments: CA Riddhi Chitaliya as Internal Auditor, and M/s. PAAA & Associates as Cost Auditor for FY2027.
• AGM Notice: The 14th AGM is scheduled for September 11, 2026.

What the Numbers Show

The shift in business model towards higher-margin CEM and CRAMS contracts is clearly reflected in the financials. While LSM revenue declined slightly from ₹1,325 million in Q1FY26 to ₹1,258 million in Q1FY27, CEM revenue surged by 75% to ₹1,656 million. This mix shift, combined with price-led demand in LSM, has supported stable EBITDA margins at 31% despite volume fluctuations in specific segments. The significant R&D spend (6.16% of revenue) indicates continued investment in innovation, which management expects to drive future growth through new product launches and customer acquisitions.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE0BWX01014/24e5989e-0c6a-4b2e-87a5-116102d56592.pdf