Aarti Industries reported a 21% sequential increase in revenue to ₹2,250 crore in Q2 FY26, driven by improved volumes. EBITDA surged by 36% to ₹292 crore, reflecting enhanced capacity utilization and cost optimization. Profit after tax rose by approximately 150% to ₹106 crore. The company is managing headwinds from U.S. tariffs by diversifying its export mix and remains committed to its FY28 EBITDA aspirations. Capex for the quarter was ₹267 crore.
Financial Performance
Aarti Industries demonstrated robust financial performance in Q2 FY26, marked by significant growth across key metrics:
- Revenue: Stood at ₹2,250 crore, a 21% increase compared to the previous quarter.
- EBITDA: Surged to ₹292 crore, representing a 36% increase quarter-on-quarter.
- Profit After Tax: Increased by approximately 150% to ₹106 crore.
Key Growth Drivers
The company’s performance was primarily driven by:
- Proactive market diversification.
- Smart investments in innovation.
- Disciplined project execution.
- Improved capacity utilization.
- Ongoing cost optimization initiatives.
Strategic Initiatives and Outlook
Aarti Industries is actively managing external challenges and focusing on strategic initiatives to ensure continued growth:
- Diversifying and rebalancing export mix in response to U.S. tariffs.
- Recalibrating U.S. strategy to sustain long-term growth.
- Maintaining a commitment to achieving FY28 EBITDA aspirations.
- Executing strategic plans focused on cost optimization and volume expansion.
Project Updates and Capacity Expansion
Aarti Industries is progressing with key expansion projects to enhance capacity and product offerings:
- Zone 4 expansion is on track, with newer capacities expected to come online over the next few quarters.
- A new multipurpose plant (MPP) within Zone 4 is expected to be commissioned in Q4 FY26.
- A new 4,000 TPA PEDA project in Zone 4 is set to be commissioned.
- A long-term strategic partnership with DCM Shriram has been established for chlorine supply.
Product Portfolio Performance
The company’s diverse product portfolio contributed to the overall performance:
- MMA delivered strong performance, achieving highest-ever quarterly volumes.
- Agrochemicals showed promising volume recovery.
- Domestic pharma market remained stable, providing a consistent base.
Capex and Future Investments
The company is committed to strategic capital allocation and disciplined investment:
- Capex for the quarter was ₹267 crore.
- Expected capex for the full financial year FY26 is around ₹1,000 crore.
Source: BSE