Aarti Industries Limited (AARTIIND)
₹503.00 -0.41% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Aarti Industries' revenue was ₹2,387 Cr (+42.4% year on year, +8.3% on the previous quarter), and net profit ₹155 Cr (+260.5% year on year); the operating margin was 16.0%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹2,387 | +42.4% | +8.3% |
| Operating profit | ₹382 | +80.2% | +12.0% |
| Net profit | ₹155 | +260.5% | +13.1% |
| EPS (₹) | 4.27 | +258.8% | +13.0% |
| Operating margin | 16.0% | — | — |
AARTIIND delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 66.62% of the AARTIIND shares traded on NSE were taken to delivery, against the stock's own 20-session average of 44.21%. Delivery was unusually high while the price barely moved (-0.41%). It traded 2.2 times its average daily volume.
Delivery in the last 5 sessions: 39.2% · 28.6% · 46.7% · 67.3% · 66.6%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Aarti Industries has entered into a 10+ year strategic manufacturing and supply agreement with a leading global specialty chemical company (via its domestic subsidiary). The contract represents an aggregate revenue potential of about ₹1,500 crore over its 10+ year duration (~₹150 crore annually, or ~1.7% of TTM revenue of ₹9,011 crore). Under the contract, Aarti Industries will set up, commission, and operate a dedicated manufacturing facility using the customer's proprietary process technology to produce specialty chemicals for high-performance applications.
- Revenue potential of about ₹1,500 crores over a 10+ years tenure
- Contract awarded by the domestic subsidiary of a leading international entity
- Company to build, commission, and operate a dedicated manufacturing facility
- Product will use the customer's proprietary process technology for high-performance applications
Aarti Industries has entered into a 10+ year dedicated manufacturing and supply contract with a global specialty chemical firm with an estimated revenue potential of ₹1,500 crore (~$150 million). AIL will commission and operate a dedicated manufacturing setup in India using the customer's proprietary technology, involving a capex of under US$25 million (~₹210 crore). Commercial operations are scheduled to commence in FY2028-29, subject to regulatory approvals. The contract adds an annualized revenue potential of ~₹150 crore, which represents ~1.7% of its TTM revenue of ₹9,011 crore.
- 10+ year dedicated manufacturing and supply agreement signed with a leading global specialty chemical company
- Estimated cumulative revenue potential of approximately ₹1,500 crore (~US$150 million) over the contract term
- Dedicated capex of less than US$25 million under a structured financial arrangement
- Commercial operations expected to commence in FY2028-29
Aarti Industries Limited has issued an Extraordinary General Meeting (EGM) notice scheduled for October 31, 2026, to seek shareholder approval for raising funds up to ₹1,000 crore. The capital raise is planned via private placement, Qualified Institutions Placement (QIP), or other permissible equity-linked instruments. Relative to the company's financials, the ₹1,000 crore ceiling equals ~5.7% of its current market capitalization of ₹17,569 crore and ~16.7% of its net worth of ₹5,972 crore. The proceeds could help support ongoing capital expenditures like Zone 4 Jhagadia expansion and manage its current debt load of ₹4,965 crore.
- Proposed fundraising of up to ₹1,000 crore through QIP, private placement, or convertible securities
- Extraordinary General Meeting (EGM) scheduled for Saturday, October 31, 2026 at 11:00 a.m. IST via VC/OAVM
- Pricing allowed up to a maximum 5% discount on the Floor Price under SEBI ICDR regulations for QIP
- Notice issued following authorization dated October 1, 2026
Aarti Industries Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate from Registrar and Share Transfer Agent MUFG Intime India confirms that all securities received for dematerialisation during the period were processed and listed on the exchanges. The certificates received were duly mutilated and cancelled, and depositories were substituted as the registered owners within the mandated timelines. This is a standard quarterly administrative filing with no impact on business operations or financials.
- Compliance certificate submitted under Regulation 74(5) of SEBI Regulations, 2018
- Covers the quarter ended September 30, 2026
- Issued by Registrar and Share Transfer Agent MUFG Intime India Private Limited on October 03, 2026
- Confirms securities received for demat were verified, cancelled, and listed on stock exchanges
Aarti Industries' Board of Directors has approved an enabling resolution to raise funds up to ₹1,000 crore. The capital may be raised via equity shares, convertible debentures, composite NCDs with warrants, QIP, rights issue, or preferential issues. At ₹1,000 crore, the fundraise represents approximately 5.9% of the company's current market capitalization of ₹16,881 crore and 16.7% of its net worth. The proposal is subject to necessary statutory, regulatory, and shareholder approvals.
- Board approved enabling resolution for fund raising up to ₹1,000 Crores
- Instruments include equity shares, convertible debentures, warrants, QIP, or debt securities
- Fundraise amount equals ~5.9% of current market cap of ₹16,881 Cr
- Requires approval from company shareholders and relevant statutory authorities
Aarti Industries presented its 43rd AGM update outlining key operational and growth milestones, including FY26 revenue of ₹9,018 crore (up 12%) and EBITDA of ₹1,172 crore (up 15%). The company outlined near-term (FY26-28) EBITDA drivers totaling ₹800-1,200 crore, split across cost optimisation (₹150-200 crore), volume/margin ramp-up (₹350-550 crore), and capex-led growth (₹300-450 crore). Capacity updates include scaling MMA/fuel additives to 360 kTPA in Q1 FY27 and plans to invest ₹200-250 crore over two years in a 15-year backward integration project. Additionally, a $150 million medium-term supply contract till March 2030 with a global agrochemicals innovator will ramp up volumes from FY27.
- Targets ₹800-1,200 crore cumulative EBITDA growth drivers across three pillars over FY26-FY28
- MMA/Fuel Additives capacity expanded from 200 kTPA to 290 kTPA in FY26 and reached 360 kTPA in Q1 FY27
- Signed a $150 million multi-year supply agreement running through March 2030 with a top agrochemicals major
- Planning ₹200-250 crore capex over two years for upstream backward integration under an extended 15-year contract
- DCB debottlenecking to 140 kTPA underway; Zone 4 Jhagadia commercialisation scheduled for FY27
Aarti Industries Limited has scheduled participation in the Anand Rathi Annual Flagship Conference (G-200 Summit 2026) on September 22, 2026, in Mumbai. The company officials will engage in a mix of one-on-one and group investor meetings. No material operational updates or financial transactions were disclosed in this routine intimation.
- Participation scheduled for September 22, 2026
- Attending the Anand Rathi Annual Flagship Conference G-200 Summit 2026 in Mumbai
- Format includes a mix of one-on-one and group meetings
- Intimation filed pursuant to Regulation 30 of SEBI LODR Regulations
Aarti Industries has announced the commissioning of Phase I of its Zone IV expansion project at Jhagadia, Gujarat on September 7, 2026. This phase brings Calcium Chloride, PEDA (2-Phenyl Ethyl Diethyl Aniline), and a section of its Multipurpose Plant (MPP) on stream to strengthen downstream integration into agrochemicals and energy additives. The company plans to progressively commercialize all remaining manufacturing blocks within Zone IV during FY27. Following commissioning, management's focus will shift to commercial qualification, customer approvals, and capacity ramp-up.
- Commissioned Phase I of Zone IV at Jhagadia on September 7, 2026, encompassing Calcium Chloride, PEDA, and a Multipurpose Plant.
- PEDA expands the ethylation platform downstream, building on existing 2,6-diethyl aniline capabilities for agrochemical applications.
- On track to progressively commercialize all remaining manufacturing blocks within Zone IV during this fiscal year (FY27).
- Expansion adds to Aarti's network of 16 manufacturing plants, 4 R&D centres, and portfolio of 100+ specialty chemical products.
Aarti Industries Limited has fixed Monday, September 14, 2026, as the record date for determining shareholder eligibility for its recommended dividend of Rs 1 per equity share (20% on face value of Rs 5). The dividend was originally recommended at the board meeting on May 4, 2026, and is subject to shareholder approval at the Annual General Meeting on September 21, 2026. If approved, the payout will be completed on or before October 9, 2026.
- Dividend recommended at 20% (Rs 1 per equity share of face value Rs 5)
- Record date fixed for Monday, September 14, 2026
- Annual General Meeting scheduled for Monday, September 21, 2026
- Dividend payment to be credited on or before Friday, October 9, 2026
Aarti Industries has submitted its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26 pursuant to Regulation 34(2)(f) of SEBI LODR Regulations. The report discloses operational metrics, noting exports contributed 57% of total turnover with presence across 60 countries and 30 Indian states/UTs. The company operated 16 manufacturing plants and served over 700 domestic and 400 international customers. This is an annual statutory compliance filing and has no direct financial impact.
- Export contribution stood at 57% of total company turnover in FY26
- Footprint includes 16 plants nationally, serving 30 states/UTs and 60 export countries
- Customer base comprises >700 domestic customers and >400 international customers
- Reasonable assurance on BRSR Core indicators obtained from TUV India Private Limited
Aarti Industries Limited has issued the notice for its 43rd Annual General Meeting (AGM) scheduled for September 21, 2026, via video conferencing, alongside publishing its FY 2025-26 Integrated Annual Report. In its Management Discussion and Analysis, the company highlighted ongoing strategic measures to counter US tariffs and Chinese dumping pressures, while maintaining 1.5 to 2 months of critical raw material inventory. Additionally, a one-time provision of ₹15 crore has been earmarked regarding the New Labour Code implementation.
- 43rd Annual General Meeting scheduled to be held on Monday, September 21, 2026, at 11:00 AM IST via Video Conferencing.
- Integrated Annual Report for FY 2025-26 published in compliance with Regulation 34 of SEBI LODR Regulations.
- Provisioned a one-time exceptional expense of ₹15 Crs towards the implementation of the New Labour Code.
- Maintains strategic inventory buffers of 1.5 to 2 months for key inputs such as aniline to counter geopolitical/logistical disruptions.
Aarti Industries has submitted an intimation regarding its participation in the 'Ashwamedh - Elara India Dialogue 2026' investor conference scheduled for September 01, 2026. The interactions will include a mix of one-on-one and group meetings at Grand Hyatt, Mumbai. No unpublished price sensitive information is typically shared in such routine interactions, making it an administrative compliance disclosure.
- Participation scheduled for September 01, 2026
- Attending the Ashwamedh - Elara India Dialogue 2026 in Mumbai
- Format includes a mix of one-on-one and group meetings
- Intimation filed pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015
Aarti Industries reported a robust Q1 FY27 with revenue growing 41% YoY to ₹2,627 crore and PAT surging 260% to ₹155 crore, driven by product mix optimization and inventory gains. Despite a significant drop in West Asia revenue share from 15% to 2% due to regional conflict, the company successfully redirected volumes to other markets. Management maintained its FY27 capex guidance of ₹700-800 crore, with ₹180 crore already deployed in Q1. Key growth projects, including the Zone 4 expansion, face minor 3-6 month delays but remain slated for phased commissioning within FY27.
- Q1 FY27 PAT surged 260% YoY to ₹155 crore, while EBITDA grew 79% to ₹385 crore.
- Fuel additives capacity expanded from 290 KTPA to 360 KTPA to diversify geographic reach.
- FY27 Capex guidance maintained at ₹700-800 crore, representing approximately 9.6% of TTM revenue.
- West Asia revenue contribution fell sharply to 2% from 15% due to geopolitical tensions.
- Zone 4 project commissioning expected in FY27 with a 3-6 month delay due to labor and war-related issues.
Aarti Industries has scheduled a series of institutional investor meetings in Singapore and Hong Kong between August 11 and August 14, 2026. The company will participate in the Nuvama India Conference and the Avendus Spark INDX- Asia Edition, involving both one-on-one and group interactions. These meetings occur as the company manages a TTM revenue of Rs 8,300 Cr and navigates external pressures such as 50% US tariffs on 15-20% of its revenue. Investors should look for any subsequent presentations that might update the progress of the Zone 4 Jhagadia capacity expansion expected in FY27.
- Investor meetings scheduled for August 11, 2026, at the Nuvama India Conference in Singapore.
- Additional meetings scheduled from August 12-14, 2026, at the Avendus Spark INDX- Asia Edition in Hong Kong and Singapore.
- Company currently operates with a TTM revenue of Rs 8,300 Cr and a debt-to-equity ratio of 0.83.
- Interactions will include a mix of one-on-one and group meetings with institutional investors.
Aarti Industries has formally applied to BSE and NSE on August 3, 2026, for the reclassification of Mrs. Ratanben Premji Gogri from the 'Promoter' and 'Promoter Group' category to the 'Public' category. This follows the Board of Directors' approval granted on July 30, 2026. The company is now seeking a 'No Objection' certificate from the stock exchanges. This is a procedural administrative step and does not impact the company's operations, management control, or financial performance.
- Application submitted to BSE and NSE on August 3, 2026
- Board approval for reclassification was obtained on July 30, 2026
- Promoter holding as of March 2026 stood at 42.09%
- Company TTM revenue is Rs 8,300 Cr with a market cap of Rs 17,513 Cr
Financial Performance
Revenue Growth by Segment
H1 FY26 revenue grew 9% YoY to INR 4,118 Cr. The energy segment's contribution increased significantly from 15% in FY23 to 36% in FY25, while agrochemicals revenue contribution declined from 30% to 18% and pharmaceuticals from 18% to 10% over the same period due to industry downturns.
Geographic Revenue Split
The geographic mix as of March 31, 2025, stood at 56% export contribution and 44% domestic contribution. The US market specifically contributes 15-20% of total revenues.
Profitability Margins
Gross margins compressed by 440 bps YoY to 33.1% in Q1 FY26. PAT for Q2 FY26 was INR 106 Cr, up 150% QoQ. H1 FY26 PAT was INR 149 Cr, down 21% YoY from INR 189 Cr in H1 FY25.
EBITDA Margin
EBITDA margins for FY26 are expected to settle at 12-14%, down from earlier estimates of 14-15%. Q2 FY26 EBITDA was INR 292 Cr, up 36% QoQ, driven by improved capacity utilization and cost optimization.
Capital Expenditure
Planned capital expenditure of approximately INR 2,800 Cr over the FY25-27 period, focusing on capacity additions in Zone 4 Jhagadia and a multipurpose ethylation unit at Dahej.
Credit Rating & Borrowing
CRISIL AA/Negative (downgraded from Stable) for long-term facilities and CRISIL A1+ for short-term facilities. Interest coverage moderated to 3.69 times in FY25 from 4.66 times in FY24 due to increased debt levels.
Operational Drivers
Raw Materials
Key inputs (unnamed in documents) and energy products. Pricing pressure from Chinese suppliers dumping excess supply has impacted realizations.
Import Sources
China is a major source of pricing pressure and supply competition.
Key Suppliers
Chinese suppliers are noted for dumping products, impacting global pricing and Aarti's margins.
Capacity Expansion
Commercialization of capacities in 'Zone 4, Jhagadia' is expected in FY27. A multipurpose ethylation unit is also being established at Dahej.
Raw Material Costs
Inventory losses of approximately INR 30 Cr were recorded in Q1 FY26 due to corrections in key input prices. Raw material volatility remains a key weakness.
Manufacturing Efficiency
Margin improvement in Q2 FY26 was predominantly driven by operating leverage as business volumes increased.
Strategic Growth
Expected Growth Rate
7-8%
Growth Strategy
Achieving growth through volume ramp-up in the energy additives business, commercialization of Zone 4 Jhagadia capacities in FY27, and operating leverage from increased capacity utilization.
Products & Services
Methyl Methacrylate (MMA), energy additives, agrochemicals, polymer additives, pharmaceuticals, and dyes.
Brand Portfolio
Aarti Industries Limited (flagship).
New Products/Services
Entry into the energy additives segment, which now contributes 36% of revenue as of FY25.
Market Expansion
Recalibrating strategy for the U.S. market and expanding presence in Europe, Middle East, and Africa (EMEA).
Market Share & Ranking
Market leadership in specialty chemicals is noted, though specific percentage ranking is not provided.
Strategic Alliances
Augene Chemical Pvt Ltd (50:50 Joint Venture).
External Factors
Industry Trends
The industry is seeing a shift toward energy additives to mitigate downturns in agrochemicals and pharma. Recovery is expected in FY27 as overcapacities in China bottom out.
Competitive Landscape
Intense competition from Chinese suppliers who are dumping products due to a decline in their local consumption.
Competitive Moat
Moat is built on integrated operations and market leadership in specialty chemicals, providing adequate operating efficiencies despite external pressures.
Macro Economic Sensitivity
Highly sensitive to global demand issues and geopolitical tensions, particularly US-China trade dynamics.
Consumer Behavior
Global channel inventory de-stocking by end-users in agrochemicals and pharmaceuticals has slowed demand.
Geopolitical Risks
50% US tariffs and higher US tariffs on Chinese imports affecting global trade flows.
Regulatory & Governance
Industry Regulations
Subject to 50% US tariffs on specific chemical exports; essential agrochemicals (<5% of revenue) are exempted.
Taxation Policy Impact
Favourable income tax appellate order for seven assessment years resulted in a one-time exceptional income of INR 29 Cr in H1 FY26.
Legal Contingencies
One-time provision of INR 7 Cr made towards a doubtful land advance in H1 FY26.
Risk Analysis
Key Uncertainties
Delays in ramp-up of Zone 4 capacities or further margin drops below 12-13% could lead to further credit rating downgrades.
Geographic Concentration Risk
56% of revenue is from exports, with 15-20% specifically from the US market.
Third Party Dependencies
High dependency on global pricing benchmarks set by Chinese supply levels.
Technology Obsolescence Risk
Mitigated by continuous investment in R&D and the Aarti Research and Technology Centre.
Credit & Counterparty Risk
Receivables quality is linked to the 120-170 GCA days cycle; liquidity is supported by INR 100-150 Cr of unencumbered surplus.
