Aarti Industries reported a robust Q4 FY26 performance, with revenue reaching INR2,422 crore, a 9% year-on-year growth. Despite logistical disruptions from Middle East geopolitical tensions, EBITDA surged 29% to INR342 crore, while profit after tax (PAT) rose 43% to INR137 crore. The company remains focused on operational efficiency, strategic long-term contracts, and steady capex execution to drive future growth, while navigating near-term headwinds in supply chain and freight costs.
Strong Financial Performance
For the full financial year FY26, Aarti Industries posted a revenue of INR9,018 crore, marking a 12% year-on-year increase. EBITDA grew by over 15% to INR1,172 crore, and PAT reached INR419 crore, a 27% growth compared to the previous year. The Q4 performance was driven by stable domestic demand and increased export volumes, which successfully offset disruptions in the Middle East.
Strategic Long-Term Contracts
The company highlighted two significant long-term agreements concluded in the last quarter. These include a backward integration initiative with a global chemical major, requiring an investment of INR200-250 crore over a 15-year contract period. Additionally, a $150 million multiyear supply agreement with a global agrochemical innovator was secured through March 31, 2030, requiring no incremental capex. These developments are expected to enhance earnings visibility and capital efficiency.
Operational Updates and Capex
Zone IV projects are currently in a phased commissioning stage. While labour constraints caused a 3-4 month delay, the multipurpose and PEDA plants are already in trial and expected to contribute to revenue from Q2 FY27. The company plans to optimize capital expenditure, with FY27 capex guidance set between INR700 crore and INR800 crore, significantly lower than previous years.
Addressing Market Volatility
Despite increased freight costs and raw material price volatility, particularly in energy applications where prices spiked by over 60%, management remains optimistic. The company has proactively redirected export volumes to other geographies to minimize the impact of Middle East instability. Management expects debt levels to begin tapering off in the current year, supported by improved EBITDA and lower planned capex intensity.
Source: BSE
