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.

Aarti Industries has successfully finalized long-term supply agreements for key feedstock materials, marking a strategic milestone in the company's procurement operations. The chemical manufacturer has secured dedicated supply channels for methanol and toluene, two critical raw materials essential for its manufacturing processes.

Strategic Feedstock Procurement

The newly concluded agreements focus on securing reliable access to methanol and toluene, which serve as fundamental building blocks in the company's chemical production operations. These long-term supply deals are designed to provide stability in raw material procurement and support Aarti Industries' operational continuity.

Supply Chain Enhancement

The finalization of these supply agreements represents Aarti Industries' commitment to strengthening its supply chain infrastructure. By securing long-term contracts for essential feedstock materials, the company aims to mitigate potential supply disruptions and ensure consistent availability of raw materials for its production facilities.

These strategic procurement initiatives align with the company's operational requirements and demonstrate proactive supply chain management. The agreements are expected to provide greater predictability in raw material costs and availability, supporting the company's manufacturing planning and operational efficiency.

Manufacturing Support

Methanol and toluene play crucial roles in various chemical manufacturing processes within Aarti Industries' production portfolio. The secured supply agreements ensure that the company maintains adequate access to these essential materials, supporting its ability to meet production targets and customer commitments.

The long-term nature of these supply deals provides operational stability and enables better planning for the company's manufacturing activities. This strategic approach to feedstock procurement reflects the company's focus on maintaining robust supply chain relationships with key suppliers.

By finalizing these strategic long-term supply agreements for methanol and toluene feedstock, Aarti Industries has reinforced its raw material procurement strategy, setting the stage for sustained operations and continued growth in the chemical manufacturing sector.