Aarti Industries announces its Q2 FY26 performance with revenue growth driven by increased MMA volumes and deferred bulk shipments. The company is actively mitigating US tariff impacts while sustaining volume growth. Zone-4 project execution is progressing as planned, with gradual commissioning expected next quarter. A strategic partnership with DCM Shriram has been established for long-term chlorine supply.
Financial Performance
Aarti Industries reported a 26% YoY increase in revenue for Q2 FY26, and a 21% increase QoQ. EBITDA saw a 44% YoY increase and 36% QoQ increase. Profit after tax increased 102% YoY and 150% QoQ.
Business Segment Performance
The Energy business volume increased by 118% YoY and 48% QoQ. The Non-Energy business volume increased by 17% YoY and 15% QoQ. US tariffs have impacted volumes for key end-use applications such as dyes and polymers. The company is working to mitigate these impacts.
Production & Capacity Utilization
The company achieved its highest quarterly production for MMA, driven by increased capacity. Further debottlenecking efforts are underway. DCB volume increased due to support from ODCB and downstream demand and is expected to remain strong in H2. NT and Ethylation capacity utilization is driven by MEA, DEA demand, and is expected to improve in H1 CY26.
Strategic Partnership
A long-term strategic supply agreement has been secured with DCM Shriram to secure chlorine supply. This includes a dedicated underground jacketed pipeline and will enhance supply security and cost efficiency.
Key Growth Drivers (FY26-FY28)
The company is focused on cost optimization (₹150-200 crore), volume and margin ramp-up (₹350-550 crore) and CAPEX-led growth (₹300-450 crore). This includes switching to back pressure turbine to improve cogen, renewable power phase 2, Acid, DCB & NCB value chain ramp-up and ethylation & NT volume ramp-up.
Future Outlook
Aarti Industries is maintaining a consistent growth outlook. The company projects EBITDA in the range of ₹1,800-2,200 Cr in 3 years, with Debt/EBITDA of <2.5x and ROCE of >15%. They are focused on new growth avenues, entry into adjacent markets, and strategic alliances.
Source: BSE
