Aarti Surfactants Limited , a key player in the home and personal care ingredients sector, has reported mixed financial results for the second quarter of the fiscal year. The company witnessed a significant improvement in its operational performance, although net profit saw a slight decline.

Revenue Growth and EBITDA Surge

Aarti Surfactants reported a robust increase in revenue, which grew to ₹1,790.00 million in Q2, up from ₹1,500.00 million in the same period last year. This 19.3% year-over-year growth reflects the company's strong market position and demand for its products.

Notably, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a remarkable surge, rising to ₹94.00 million from ₹37.00 million in the corresponding quarter of the previous year. This represents a substantial 154% increase, indicating significant improvement in the company's operational efficiency and cost management.

The EBITDA margin also expanded impressively, reaching 5.22% compared to 2.46% in the same quarter last year. This expansion in margin suggests that Aarti Surfactants has been successful in managing its operational costs effectively.

Profit Performance

Despite the strong top-line growth and EBITDA performance, Aarti Surfactants experienced a slight dip in its net profit. The company reported a net profit of ₹16.00 million for the quarter, down from ₹19.00 million in the same period last year. This 15.8% year-over-year decrease in net profit might be attributed to factors such as increased finance costs or higher depreciation, although specific details were not provided in the financial results.

Financial Position

As of September 30, Aarti Surfactants maintains a solid financial position with a net worth of ₹23,420.72 million. The company's debt-to-equity ratio stands at 0.49, indicating a balanced capital structure.

The company's board of directors approved these unaudited financial results in their meeting. They also announced the re-constitution of the Risk Management Committee, with Mr. Parimal H. Desai joining as a new member, potentially strengthening the company's risk assessment and management capabilities.

Conclusion

While the slight decline in net profit may raise some concerns, the substantial growth in revenue and EBITDA suggests that Aarti Surfactants is on a positive trajectory in terms of operational performance. The company's ability to maintain revenue growth while further improving profitability will be crucial for long-term success as it continues to navigate the dynamic home and personal care ingredients market.

Aarti Surfactants Limited (ASL), a leading manufacturer of specialty surfactants, held its 7th Annual General Meeting (AGM) on September 23, 2025, where shareholders approved several key appointments and financial matters. The meeting, conducted through video conferencing, marked significant changes in the company's leadership and audit structure.

New Board Appointments

The AGM saw the approval of two notable appointments to the company's board:

1. Mr. Parimal H. Desai was appointed as a Non-Executive Director, effective October 1, 2025. With nearly five decades of experience in the chemical industry, Desai brings a wealth of knowledge to the board. He holds a bachelor's degree in chemical engineering from UDCT Mumbai and is the father of the company's CEO & Managing Director, Mr. Nikhil P. Desai. Notably, Mr. Parimal Desai is also a promoter of the company.

2. Mrs. Nisha B. Shah was appointed as an Independent Director for a three-year term, also effective from October 1, 2025. Shah, a Chartered Accountant and CFA Level II professional, brings over 22 years of experience in investment strategies, private equity, and family office advisory. She is currently a Partner at AUM Ventures and meets the independence criteria under Companies Act 2013 and SEBI regulations.

Appointment of Secretarial Auditors

In addition to the board appointments, the shareholders approved the appointment of M/s. Parikh & Associates as Secretarial Auditors for five consecutive years, starting April 1, 2025. Established in 1987, the firm provides corporate law and regulatory compliance services to several large companies, including some of India's top 100 listed entities.

Financial Performance and Dividend

During the AGM, the company also presented its financial results for the fiscal year 2025:

The shareholders approved a dividend of 10%, amounting to Re. 1 per equity share for the year ended March 31, 2025.

Strategic Focus and Future Outlook

Mr. Mulesh M. Savla, Chairman of Aarti Surfactants, highlighted the company's resilience in FY 2024-25, achieving a turnaround through disciplined execution, cost optimization, and operational improvements. The company's focus remains on capacity expansion, innovation, and entry into new markets.

Mr. Nitesh Medh, Chief Financial Officer, presented the company's key achievements, emphasizing its expanding geographical presence and positive impact on business performance. He also noted an upgrade in the company's credit ratings.

Aarti Surfactants Limited continues to position itself for future growth in the promising surfactants industry, with a commitment to responsible growth through emission control, water recycling, and energy efficiency initiatives.

The AGM concluded with the company expressing confidence in its ability to overcome challenges and build a stronger future with the support of its stakeholders.