Aarti Industries Reports Sharp Decline in Q1 Profits Amid Revenue Contraction

2 min read     Updated on 31 Jul 2025, 07:01 PM
scanxBy ScanX News Team
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Overview

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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*this image is generated using AI for illustrative purposes only.

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

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Aarti Industries to Host Q1 FY26 Earnings Call on August 1, 2025

1 min read     Updated on 24 Jul 2025, 07:07 PM
scanxBy ScanX News Team
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Overview

Aarti Industries Limited (AIL) has scheduled its Q1 FY26 earnings conference call for August 1, 2025, at 11:00 AM IST. The Board of Directors will meet on July 31, 2025, to approve the financial results for the quarter ended June 30, 2025. The call will feature CEO Suyog Kotecha and CFO Chetan Gandhi, offering management discussion and a Q&A session. AIL, a leading global specialty chemicals company, holds top global positions for 75% of its portfolio and emphasizes sustainable development in its operations.

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*this image is generated using AI for illustrative purposes only.

Aarti Industries Limited (AIL), a leading global specialty chemicals company, has announced its upcoming quarterly earnings conference call for investors and analysts. The call is scheduled for August 1, 2025, at 11:00 AM IST, following the release of the company's Q1 FY26 financial results.

Financial Results and Board Meeting

The company has informed that its Board of Directors will meet on Thursday, July 31, 2025, to consider, approve, and take on record the Audited Financial Results for the quarter ended June 30, 2025. This meeting precedes the earnings call, allowing investors and analysts to review the results before the discussion.

Conference Call Details

The earnings conference call will feature a management discussion on the quarterly results, followed by an interactive Q&A session. Key representatives from Aarti Industries' leadership team will be present:

  • Mr. Suyog Kotecha: Executive Director & CEO
  • Mr. Chetan Gandhi: Chief Financial Officer

Participants can join the call using various dial-in numbers provided by the company, including toll-free options for international callers from Singapore, Hong Kong, USA, and the UK.

Company Overview

Aarti Industries Limited describes itself as a world-leading specialty chemicals company, combining process chemistry expertise with scale-up engineering competence. The company proudly holds the 1st to 4th global position for 75% of its portfolio, establishing itself as a "Partner of Choice" for major global and domestic customers.

AIL emphasizes its commitment to sustainable development, integrating environmental stewardship into its business model. The company leverages cutting-edge technologies and robust infrastructure to deliver solutions that balance economic growth with ecological responsibility.

Investor Relations

For further information, investors and interested parties can visit the company's website at www.aarti-industries.com . Additionally, Mr. Chetan Gandhi and Mr. Raj Sarraf from Aarti Industries Limited, along with representatives from CDR India, are available for investor relations queries.

As per regulatory requirements, the company has announced that the Trading Window will remain closed until 48 hours after the declaration of the financial results, in line with their previous intimation dated June 26, 2025.

This earnings call presents an opportunity for stakeholders to gain insights into Aarti Industries' performance and future outlook directly from the company's top management.

Historical Stock Returns for Aarti Industries

1 Day5 Days1 Month6 Months1 Year5 Years
-3.26%-5.55%-16.12%-11.60%-45.20%-8.11%
Aarti Industries
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