Aarti Industries Limited has released the complete transcript of its quarterly earnings conference call for Q3FY26, providing comprehensive insights into the company's financial performance and strategic outlook. The call was held on February 3, 2026, with the transcript made available through regulatory filing dated February 10, 2026.

Strong Financial Performance in Q3FY26

The company delivered robust financial results for the quarter, demonstrating resilience amid challenging global conditions. Key performance metrics showed significant improvement across multiple parameters.

Business Segment Performance

The energy business, led by MMA (Methyl Methacrylate), continued as a key growth driver with robust volumes supported by strong demand and favorable feedstock spreads. The company is scaling up MMA capacities from 290+ KT to 360 KT, expected to be available by Q4FY26.

Global Trade Developments Impact

Management highlighted three major developments positively impacting the chemical sector. The India-EU Free Trade Agreement is expected to generate growth opportunities for exports and strategic partnerships in specialty chemicals. China's "anti-involution" strategy aims to curb hyper-competition and excess capacity, potentially leading to more rational global pricing. The US-India Trade deal provides relief from tariff headwinds and is expected to boost US business.

Product Portfolio Diversification

The company's export strategy shows strong geographical diversification, with the US market resuming volumes despite tariff challenges. MMA constitutes 50-60% of US exports, while PDCB accounts for 15-25%, and MEA makes up the remainder. The company absorbed part of US tariffs while witnessing resumed US volumes, leading to higher capacity utilization.

Future Growth Strategy

Aarti Industries is pivoting toward Advanced Materials space, moving from bulk products to high-value, application-led solutions. Zone 4 remains a transformational growth platform, with MPP, Chloro toluene, and downstream process blocks expected to be commissioned in phases during the current calendar year using indigenous technology.

Regulatory Compliance

The transcript disclosure was made under Regulation 30 of SEBI (LODR) Regulations, 2015, addressed to both BSE Limited and National Stock Exchange of India Limited. Company Secretary Raj Kumar Sarraf signed the regulatory communication, ensuring compliance with listing requirements.

Source: Regulatory Filing

Aarti Industries Limited has delivered outstanding Q3 financial results, showcasing remarkable growth across all key performance metrics. The company's net profit surged 183% year-over-year to ₹1,300 crore from ₹460 crore in the previous year, while revenue grew 26% to ₹2,320 crore compared to ₹1,840 crore in Q3 of the previous year.

Exceptional Q3 Financial Performance

The company demonstrated strong operational efficiency with EBITDA increasing to ₹3,220 crore from ₹2,300 crore year-over-year. The EBITDA margin expanded to 13.89% in Q3 compared to 12.53% in the same quarter last year, reflecting improved profitability and cost management.

Strategic Business Developments

The company achieved several significant milestones during the quarter, including a CSA score of 78 in the S&P Global Corporate Sustainability Assessment 2025, placing Aarti Industries among the top 2% of over 500 chemical companies assessed globally. Revenue composition showed energy applications contributing 51% of total revenue, compared to 34% in the previous year, reflecting the company's strategic focus on high-growth segments.

Capacity Utilization and Production Updates

The company reported strong capacity utilization across major product lines, with MMA achieving 96% utilization. Growth capex projects in Zone-4 are progressing as planned, with CaCl2 chemical charging started and MPP commissioning expected in Q4.

Future Growth Outlook

The company has outlined ambitious growth targets with EBITDA expected to reach ₹1,800-2,200 crore range by FY28, supported by consistent volume growth, operating leverage, and cost optimization initiatives. The company targets maintaining debt-to-EBITDA ratio below 2.5x and ROCE above 15%. Capex is estimated at approximately ₹1,100 crore, slightly higher than the initially planned ₹1,000 crore due to incremental investments in MMA expansions and PEDA projects.