Aether Industries reported robust consolidated results for Q3 FY26, achieving a 44% YoY revenue increase to INR3,171 million. EBITDA grew by 75% YoY to INR1,083 million, reflecting a significant margin expansion to 34%. The management highlighted the progress on new sites (Site 3++ and Site 5), advanced R&D expansion focusing on non-pharma/agro sectors, and strong underlying demand across all business verticals.
Q3 FY26 Financial Performance Snapshot
Aether Industries announced excellent consolidated financial results for the quarter ended December 31, 2025 (Q3 FY26). Consolidated revenue from operations reached INR3,171 million, marking a substantial 44% increase year-on-year (YoY) over Q3 FY25 (INR2,197 million). This strong top-line performance translated significantly to profitability.
EBITDA for the quarter stood at INR1,083 million, growing by 75% YoY against INR620 million in the prior year. Consequently, the EBITDA margin improved sharply to 34% in Q3 FY26, up from 28% in Q3 FY25. Profit After Tax (PAT) increased by 49% YoY to INR645 million, with the PAT margin settling at 20%.
Nine-Month Financial Summary
For the nine months ending December 31, 2025, consolidated revenue grew by 43% to INR8,534 million. EBITDA for this period saw a 75% increase to INR2,716 million. PAT for the nine months grew by 53% to INR1,655 million, with PAT margins at 19%.
Business Operations and Expansion Updates
Management shared positive updates on infrastructure readiness. The construction and installation of Site 3++ and the first two production blocks of Site 5 are now complete, with water and solvent trials commenced. Commercial production is expected shortly. The company is focusing on scaling up in non-pharma, non-agro chemistries, including oil and gas and material sciences.
In the large-scale manufacturing vertical, volume growth was robust, exceeding 10% QoQ and over 25% YoY. New product introductions from Site 5 target pharmaceutical and agrochemical sectors.
Contract Research & Manufacturing Services (CRAMS/CEM)
The CRAMS/CEM pipeline remains healthy. Dr. Aman Desai noted increasing customer urgency, particularly from Europe, where manufacturing economics are challenging. The company is solidifying its role as a preferred partner, discussing significant ventures with major European chemical companies.
- The contract with Otsuka Chemical is on track to achieve sales between INR35 crores to INR40 crores in FY26.
- A new CEM contract was entered into with a large European multinational targeting the material science sector.
- Aether is targeting 70% of revenue to come from CRAMS and CEM combined, with 30% from large-scale manufacturing in the long term.
R&D and Investment
Aether is heavily investing in R&D expansion, both short-term (installing 20 additional fume hoods) and long-term (installing 15 additional labs and 150 fume hoods). The focus is on chemical engineering, technology, and scaling up processes for non-pharma/agro sectors. The company also announced the acquisition of advanced analytical equipment, including NMR spectroscopy.
Capacity Utilization and Working Capital
Capacity utilization across existing sites stands at Site 2: 76%, Site 3: 70%, and Site 4: 49%. The net working capital cycle stood at 160 days, primarily due to inventory buildup for the launch of Site 3++ and Site 5 (expected to commence operations from March 2026).
Segment Margin Expectations
Management clarified EBITDA margin expectations by segment: CRAMS: 60% to 65%; CEM: 27% to 30%; and LSM: 21% to 23%. The current consolidated margin benefited from a one-time INR15 crore FLOP claim, which will not recur. Sustainable normalized EBITDA margins are expected to be around 29% to 30%.
Capex Outlook
Total capital expenditure (CWIP) incurred for Sites 3++ and Panoli (Site 5) in the first 9 months was approximately INR500 crores. The full-year capex guidance remains around INR450 crores to INR500 crores.
Source: BSE
