Aarti Industries announced its Q3 FY26 results, achieving a CSA score of 78 in the S&P Global Corporate Sustainability Assessment. Increased MMA volumes were driven by expanded capacity. US volumes for MMA and PDCB resumed. The company is progressing with Zone-4 projects and expects MPP commissioning in Q4 FY26. FY26 capex is expected to be ₹1100 crs.
Financial Performance Highlights
Aarti Industries reported a 22% YoY increase in revenue for Q3 FY26, and 13% increase for the 9M FY26 period. EBITDA saw a 37% YoY rise for Q3 FY26 and 11% for 9M FY26. Profit After Tax surged by 189% YoY for Q3 FY26. The revenue increase was attributed to higher volumes across various products, including MMA, NT, and DCB. There was also a resumption of MMA and PDCB exports to the US in Q3.
Operational Developments
The company achieved a CSA score of 78 in the S&P Global Corporate Sustainability Assessment for 2025, placing it among the top 2% of chemical companies assessed globally. It also saw increased volumes for MMA, supported by expanded capacity and higher blending volumes. Efficient capital deployment is expected to capture incremental growth, with PEDA commissioning anticipated in Q4FY26.
Segment Performance
Agrochemical applications are showing steady volume recovery, while the Dye, Pigment, and Printing Inks segment is stable. Volumes in energy applications were driven by favorable blending economics and expanded capacities. Partial volumes for Polymer & Additives applications in the US have resumed.
Strategic Initiatives
Aarti Industries’ DCA downstream JV with Superform is progressing as planned, with about 66% of the targeted amount already invested. The company also reports on chemical recycling of plastics, with delivery for critical equipment underway and commercial ordering stages nearly complete.
Future Outlook
Aarti Industries maintains a consistent volume growth outlook over the next 3 years, driven by increased capacities. Capex for FY26 is estimated to be around ₹1100 Cr. The company is targeting an EBITDA range of ₹ 1,800-2,200 Cr in 3 years, with Debt/EBITDA of <2.5x and ROCE of >15%. It plans to leverage adjacent markets and new platforms, and aims at commercializing Zone 4 and MPP.
Source: BSE
