Aarti Industries Reports Sharp Decline in Q1 Profits Amid Revenue Contraction
Aarti Industries' Q1 consolidated net profit fell 69% to ₹43.00 crores from ₹137.00 crores year-over-year. Revenue decreased 9.5% to ₹1,676.00 crores, while EBITDA dropped 30.5% to ₹212.00 crores. EBITDA margin compressed to 12.65% from 16.44%. On a standalone basis, net revenue was ₹1,845.00 crores, net profit ₹44.00 crores, and EPS ₹1.20. The company issued 33,408 equity shares under its employee stock option plan and maintained its credit ratings.

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Aarti Industries , a prominent player in the specialty chemicals sector, has reported a significant drop in its financial performance for the first quarter. The company's consolidated net profit fell sharply to ₹43.00 crores, down from ₹137.00 crores in the same period last year, marking a decline of nearly 69%.
Revenue and EBITDA Under Pressure
The company's consolidated revenue from operations decreased to ₹1,676.00 crores in Q1, compared to ₹1,851.00 crores in the corresponding quarter of the previous year, representing a year-on-year decline of about 9.5%. This contraction in revenue reflects challenging market conditions faced by the company during the quarter.
Aarti Industries also witnessed a substantial decrease in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which dropped to ₹212.00 crores from ₹305.00 crores year-over-year. The EBITDA margin compressed to 12.65% from 16.44% in the previous year, indicating pressure on the company's operational efficiency.
Financial Highlights
Here's a breakdown of Aarti Industries' key financial metrics for Q1 on a consolidated basis:
Metric (in crores) | Q1 Current | Q1 Previous | YoY Change |
---|---|---|---|
Revenue | 1,676.00 | 1,851.00 | -9.5% |
Net Profit | 43.00 | 137.00 | -68.6% |
EBITDA | 212.00 | 305.00 | -30.5% |
EBITDA Margin | 12.65% | 16.44% | -379 bps |
On a standalone basis, the company reported:
- Net revenue: ₹1,845.00 crores (vs ₹1,991.00 crores YoY)
- Net profit: ₹44.00 crores (vs ₹138.00 crores YoY)
- Earnings per share: ₹1.20 (vs ₹3.80 YoY)
- Operating margin: 11.6% (vs 15.3% YoY)
Operational Updates
During the quarter, Aarti Industries issued 33,408 equity shares under its employee stock option plan. The company maintained its credit ratings, with CRISIL and India Ratings reaffirming the AA/Stable rating for Aarti Industries' long-term issuers and bank facilities. Additionally, the company's commercial papers, with an outstanding amount of ₹400.00 crores as of June 30, retained their ratings.
As Aarti Industries navigates through this period of reduced profitability and revenue contraction, investors and industry observers will be keenly watching for signs of recovery in the coming quarters. The company's ability to improve its operational efficiency and capitalize on market opportunities will be crucial in regaining its growth momentum in the specialty chemicals sector.
Historical Stock Returns for Aarti Industries
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-3.26% | -5.55% | -16.12% | -11.60% | -45.20% | -8.11% |