Aether Industries Limited has released its Q1 FY27 performance update, detailing strong sales growth of 27% YoY driven by its CRAMS and CEM verticals. The company also announced the renaming of its manufacturing sites, including Catalyst, Genesis, Ascend, Strata, and Magnum, to better reflect their business verticals. Key financial highlights and operational updates are provided, with expectations for continued growth.
Aether Industries Reports Strong Q1 FY27 Performance
Aether Industries Limited announced robust financial results for the first quarter of Fiscal Year 2027 (Q1 FY27), demonstrating a significant 27% year-on-year sales growth. This performance was propelled by strong contributions from its Contract and Exclusive Manufacturing (CEM) and Contract Research and Manufacturing Services (CRAMS) business verticals. Together, these segments now account for 60% of the company’s revenue, with expectations to reach 70% in the next couple of years.
Performance by Business Vertical
The CRAMS vertical saw the completion of installations for 18 additional fume hoods and a Nuclear Magnetic Resonance (NMR) machine at its R&D center. It currently manages over 65 live projects, with 70% in non-pharmaceutical and non-agrochemical sectors, indicating traction in oil & gas and material science areas.
The CEM vertical continued to deliver major contracts, including a revenue of ₹700 million from Baker Hughes. The Strata site (Site 4), dedicated to Baker Hughes, achieved a 58% utilization level. Revenue booking also commenced from Ascend (Site 3), dedicated to Milliken Chemical and Textile (India) Company. The company also reported good off-take for Converge Polyol, jointly developed with Saudi Aramco, maintaining its target of ₹650-750 million in sales for the financial year. Additionally, a smaller CEM program in material science with a European major has been commercialized at Ascend.
The Large Scale Manufacturing (LSM) vertical experienced strong pricing, up 22.5% YoY and 1% QoQ, with volumes up 11.7% QoQ. While LSM volumes were down 22% YoY due to strategic reallocation of production lines to the CEM vertical, new LSM products from Magnum are expected to contribute from Q2 FY2027.
Sectoral Distribution of Sales
The sectoral breakdown for Q1 FY27 showed pharmaceutical and agrochemical sectors contributing 32.2% and 9.5% respectively. Oil and gas accounted for 31.4%, crossing ₹1,000 million in revenue for the quarter. Material science contributed 16.6%, highlighting a well-diversified portfolio.
Manufacturing Site Renaming
Aether Industries has renamed its manufacturing sites for clarity and alignment with business verticals:
- Site 1 is now Catalyst (CRAMS).
- Site 2 is now Genesis (LSM / CEM).
- Site 3 and Site 3++ are now Ascend (LSM / CEM).
- Site 4 is now Strata (CEM).
- Site 5 and Site 5+ are now Magnum (LSM / CEM).
Capital Expenditure Update
The company provided an update on its capital expenditure. Construction of the new R&D center at Site 1+ is on track for Q2 FY2028 completion, with a total capex of approximately ₹1,000 million. At Magnum (Site 5), total capex for Q1 FY2027 was approximately ₹833 million, with two further production blocks expected by Q3 FY2027. Total capital expenditure for the current financial year is projected at ₹3,000-3,500 million, with approximately ₹600 million allocated to Site Catalyst and the remainder to Site Magnum.
Margins, Working Capital, and Debt
EBITDA margin for Q1 FY2027 stood at 31.47%, an increase from 30.61% in Q1 FY2026, attributed to higher contributions from CRAMS and CEM. The company maintains its guidance of approximately 30% EBITDA margin for FY2027. Debtor and inventory days have reduced, resulting in a marginally lower overall working capital cycle compared to March 2026. As of June 30, 2026, outstanding borrowings included ₹4,215 million in working capital loans and ₹1,000 million in term loans.
Source: BSE
