Aarti Industries Limited has announced its financial results for the second quarter and first half of the fiscal year 2027. The company reported a year-on-year increase in revenue and EBITDA, driven by overall volume growth and effective management of input prices. The presentation details business highlights, capacity utilization, and future outlook, underscoring strategic initiatives and growth drivers.
Aarti Industries Announces Q2 & H1 FY27 Performance Update
Aarti Industries Limited has officially released its financial and operational highlights for the second quarter (Q2) and the first half (H1) of the fiscal year 2027. The company’s performance reflects positive trends in key financial metrics and strategic business developments.
Key Financial Highlights (Consolidated)
The company presented consolidated figures for the periods ending Q2 FY27 and H1 FY27. Revenue growth was noted, with Q2 FY27 showing a 73% YoY growth and H1 FY27 reporting a 58% YoY growth. EBITDA also saw significant increases, with Q2 FY27 up 44% YoY and H1 FY27 up 58% YoY. Profit After Tax (PAT) demonstrated substantial growth, with Q2 FY27 surging 117% YoY. This growth is attributed to overall volume increases coupled with the passing on of elevated input prices to customers.
Operational and Strategic Developments
Business highlights for Q2 FY27 include recognition for sustainability, with AIL receiving the ‘Sword of Honor’ from the British Safety Council for its R&D Unit. Long-term partnerships are progressing well, and the Augene JV is under commissioning trials. Capacity expansion for Fuel Additives to 360 KTPA was completed. The company is also focusing on cost savings through digital and advanced analytics and is building in-house capabilities in Digital & AI, with over 50+ GenAI use cases executed in the last quarter. The commissioning of Phase I of Zone IV is set to unlock high-value manufacturing opportunities, with a focus on commercial qualification and ramp-up targeted during FY27.
A significant development is the announcement of a 10+ year Strategic Manufacturing & Supply Agreement with a global speciality chemical company, projecting cumulative revenue of approximately ₹1,500 crore. Operations under this agreement are expected to commence in FY29.
Capacity and Market Performance
The presentation outlines capacity utilization for major product groups, showing varying levels across NCB, DCB, Hydrogenation, PDA, NT, Ethylation, and Methylation. Specific updates on Fuel Additives capacity expansion, DCB debottlenecking, and NT & Ethylation utilization are provided. The company’s revenue by end-use segment is detailed, with Energy Application forming the largest share at 50%, followed by Agro-chemicals & Fertilizers (12%), Dyes, Pigments & Printing Inks (12%), Pharma Applications (13% Share), and Polymer & Additives (10% Share).
Future Outlook and Growth Drivers
Aarti Industries has outlined its key EBITDA growth drivers for the 3-year plan (FY25 – FY28), focusing on Cost Optimisation (₹150-200 crore), Volume and Margin Ramp-up (₹350-550 crore), and CAPEX-led Growth (₹300-450 crore). All projects are targeted for commission in FY27. The company aims for a target EBITDA range of ₹1,800-2,200 crore with a Debt/EBITDA of <2.5x.
Long-term growth focus areas include the commercialization of MPP and Zone 4, entry into adjacent markets and new platforms, and strategic alliances, new product developments, and Contract Development and Manufacturing Organization (CDMO) services.
Source: BSE
