Aether Industries Limited, a specialty chemicals manufacturer, has reported a strong financial performance for the second quarter of fiscal year 2026, with significant revenue growth and improved profitability. The company also announced plans for expansion of its research and development capabilities.

Financial Highlights

Aether Industries achieved consolidated revenue of Rs. 275.10 crores in Q2 FY26, representing a 38% increase from Rs. 198.80 crores in Q2 FY25. The company's EBITDA margins improved to 31% from 25% in the same period last year.

Business Segment Performance

The company's sales mix for the quarter was distributed across its three business verticals:

• Contract and Exclusive Manufacturing: 47%
• Large-scale Manufacturing: 41%
• Contract Research and Manufacturing Services (CRAMS): 9%

Notably, the Contract and Exclusive Manufacturing segment contributed more than the Large-scale Manufacturing business for the first time, aligning with the company's vision to have CRAMS and Contract Manufacturing contribute 60-70% of sales in the next two years.

R&D Expansion

Aether Industries is expanding its R&D capacity:

• Adding 24 new fume hoods in the existing facility
• Planning a new R&D extension with over 130 fume hoods
• Introducing engineering labs focusing on chemical engineering and technology scale-up

Dr. Aman Desai, Promoter & Whole-Time Director, emphasized the importance of these expansions, particularly in targeting petrochemical, oil and gas, and material science sectors.

Production Capacity Expansion

The company plans to commission three new production blocks:

• Site-3+: Dedicated to Milliken, expected to commence production in Q4 FY26
• Site-5 (Panoli): Two production blocks of Phase-1 targeted for commissioning by early Q4 FY26

Future Outlook

Aether Industries expects to maintain its growth momentum, projecting around 25% growth going forward. The company aims to sustain EBITDA margins of approximately 30%.

Investor Relations

The company participated in the 'Avendus Spark INDX' event in Mumbai, meeting with various investors and discussing publicly available information. This engagement demonstrates Aether Industries' commitment to transparency and investor communication.

As Aether Industries continues to expand its R&D capabilities and production capacity, it aims to capitalize on the growing opportunities in the specialty chemicals sector, particularly in non-pharmaceutical and non-agrochemical segments.

Aether Industries Limited has reported robust financial results for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Financial Highlights

• Revenue: The company's consolidated revenue from operations surged to ₹2,751.00 crore in Q2 FY26, marking a substantial 38% year-over-year increase from ₹1,988.00 crore in Q2 FY25.
• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw an impressive growth of 70% year-over-year, reaching ₹880.00 crore compared to ₹548.00 crore in the same quarter last year.
• EBITDA Margin: The EBITDA margin expanded to 32.00% from 27.90% in the corresponding quarter, indicating improved operational efficiency.
• Net Profit: Consolidated net profit grew by 55% year-over-year to ₹539.57 crore, up from ₹347.99 crore in Q2 FY25.

Business Segment Performance

Aether Industries' growth was driven by strong performances across its business segments:

Operational Highlights

• The company executed a Contract Manufacturing (CEM) agreement with Milliken & Co., with a strategic product launch expected in Q4 FY26.
• Aether Industries is on track with its Site 3++ expansion, with equipment installation underway and all approvals secured.
• The company's Site 5 expansion is progressing, with phase one commissioning of two production blocks expected by the end of Q4 FY26.
• Aether successfully completed 26 customer and certification audits in H1 FY26, demonstrating its commitment to operational excellence.
• The company onboarded 10 new customers across all business models during H1 FY26.

Management Commentary

Ashwin Desai, Managing Director of Aether Industries Limited, commented on the results, stating, "Our Q2 FY26 performance reflects the strength of our business strategy and operational capabilities. The significant growth in our Contract Manufacturing segment and the steady performance of our Large Scale Manufacturing business have been key drivers of our success this quarter. We are particularly pleased with the expansion of our EBITDA margin, which demonstrates our ability to improve profitability while scaling our operations."

Future Outlook

With ongoing expansion projects and strategic agreements in place, Aether Industries is well-positioned for continued growth. The company's focus on diversifying its customer base and expanding its manufacturing capabilities is expected to drive further improvements in financial performance in the coming quarters.