Aether Industries Limited (AETHER)
₹1,538.60 -3.57% last close, 16 Oct
Q2 FY27 results
📅 Next results: 30 Oct 2026 (board meeting)Aether Industries Limited's board meets on 30 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q4 FY26, Aether Industries' revenue was ₹305 Cr (+27.1% year on year, -3.8% on the previous quarter), and net profit ₹54.0 Cr (+8.0% year on year); the operating margin was 27.2%.
| Q4 FY26 (₹ Cr) | Value | YoY vs Q4 FY25 | QoQ |
|---|---|---|---|
| Revenue | ₹305 | +27.1% | -3.8% |
| Operating profit | ₹83.0 | +3.8% | -25.0% |
| Net profit | ₹54.0 | +8.0% | -16.3% |
| EPS (₹) | 4.07 | +7.4% | -16.3% |
| Operating margin | 27.2% | — | — |
AETHER delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 47.18% of the AETHER shares traded on NSE were taken to delivery, against the stock's own 20-session average of 43.04%. That is close to its usual level.
Delivery in the last 5 sessions: 40.8% · 47.9% · 43.2% · 50.3% · 47.2%
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
Aether Industries has received an order from the Additional Commissioner (AE), CGST & Central Excise Commissionerate, Surat, dropping proceedings regarding a tax demand of ₹4,26,16,311 plus interest. The original show cause notice had disallowed input tax credit claimed on IPO expenses incurred during FY21 and FY22. The tax authority held the tax credit to be fair and legitimate, resulting in zero adverse financial impact. The relief amounts to approximately 1.9% of Aether's TTM PAT of ₹219 crore.
- GST demand and show cause notice worth ₹4,26,16,311 plus interest officially dropped
- Tax credit related to IPO expenses incurred during FY 2020-21 and FY 2021-22 declared legitimate
- Order issued on October 1, 2026, confirming no financial liability for the company
- Demand represented ~1.9% of FY26 TTM PAT of ₹219 Cr
Crisil Ratings has assigned credit ratings to Aether Industries' bank loan facilities totaling ₹636.00 crore. The long-term rating has been assigned at 'Crisil AA-/Stable' compared to its previous rating of 'ICRA A+ (Stable)', reflecting an upgrade in credit profile. The short-term rating was assigned at 'Crisil A1+' against 'ICRA A1' previously. The rated facilities include ₹396 crore in cash credit, ₹150 crore in term loans, and ₹88 crore in proposed limits.
- Credit rating assigned on total bank loan facilities of ₹636.00 crore
- Long-term credit rating stepped up to Crisil AA-/Stable from ICRA A+ (Stable)
- Short-term credit rating improved to Crisil A1+ from ICRA A1
- Facilities rated include ₹150 crore term loan from HDFC Bank and ₹396 crore across multiple cash credit limits
- Rating letter remains valid till August 12, 2027
Aether Industries has scheduled physical one-on-one meetings with multiple institutional investors in Mumbai on September 23, 2026. The company stated that no Unpublished Price Sensitive Information (UPSI) will be disclosed during these interactions. As a routine statutory intimation under SEBI LODR Regulation 30, this filing carries no direct financial impact on the company's TTM revenue of ₹1,153 Cr or market capitalization of ₹20,990 Cr.
- One-on-one meetings scheduled with multiple institutional investors on September 23, 2026
- Meetings to be conducted via physical mode in Mumbai
- Company confirmed no Unpublished Price Sensitive Information (UPSI) will be shared
- Schedule is subject to change by investors, analysts, or the company
Aether Industries announced the voting results and Scrutinizer's Report for its 14th Annual General Meeting held on September 11, 2026. A total of 12,17,69,771 votes were polled out of 13,27,27,845 total shares, representing a 91.74% overall turnout. Key ordinary and special resolutions were passed, including the adoption of FY26 financial statements (100% in favour), re-appointment of Ashwin Jayantilal Desai as Managing Director (96.79% in favour), and ratification of cost auditor remuneration. All proposals received requisite majorities from shareholders.
- Overall voter turnout was 91.74% with 12,17,69,771 votes polled out of 13,27,27,845 total shares
- Adoption of FY26 audited financial statements passed with 100.00% votes in favour (12,17,69,769 votes)
- Re-appointment of Ashwin Jayantilal Desai as Managing Director passed with 96.79% votes in favour and 3.21% against
- Institutional shareholders showed 91.82% turnout with 2,21,52,504 votes cast
Aether Industries Limited concluded its 14th Annual General Meeting (AGM) on September 11, 2026, held via video conference with 46 shareholders in attendance. Key agenda items put to vote included the adoption of audited FY26 financial statements and the reappointment of Managing Director Ashwin Desai along with Whole-time Directors Purnima Desai, Rohan Desai, and Aman Desai. Remote e-voting took place from September 8 to September 10, 2026, with scrutinizer results expected shortly.
- 14th AGM held on September 11, 2026, starting at 11:00 Hrs and concluding at 11:27 Hrs
- A total of 46 shareholders participated in the virtual meeting, fulfilling quorum requirements
- 8 ordinary resolutions proposed, including adoption of FY26 financials and reappointment of key promoter directors
- Remote e-voting was conducted between September 8, 2026 (09:00 Hrs) and September 10, 2026 (17:00 Hrs)
Aether Industries has submitted its Business Responsibility and Sustainability Report (BRSR) along with an independent assurance statement for FY 2025-26 under Regulation 34 of SEBI LODR. The standalone reporting covers 5 manufacturing plants, disclosing FY26 standalone turnover of ₹9,401.69 MM (₹940.17 crore) and net worth of ₹24,093.15 MM (₹2,409.32 crore). Key sustainability metrics include 19.67% of energy sourced from renewables (out of 472.74 TJ total energy consumed) and an export contribution of 17.88% of turnover. As a mandatory annual ESG disclosure, this is a routine regulatory filing.
- Standalone FY26 turnover reported at ₹9,401.69 MM (₹940.17 crore) with net worth at ₹24,093.15 MM
- Exports (including SEZ and deemed exports) contributed 17.88% of total entity turnover across 20 countries
- Renewable energy accounted for 19.67% of total energy consumption of 472.74 TJ
- Reported zero lost-time injuries (0 LTIFR) and zero workplace fatalities across employees and workers
Aether Industries Limited has issued the notice for its 14th Annual General Meeting scheduled for Friday, September 11, 2026, via Video Conferencing. Key agenda items include the re-appointment and remuneration approval for executive leadership for a 5-year term from October 1, 2026, to September 30, 2031. Proposed monthly remunerations include ₹12.08 lakh each for Managing Director Ashwin J. Desai and Whole-Time Director Purnima A. Desai, ₹18.11 lakh for Whole-Time Director Dr. Aman A. Desai, and ₹16.61 lakh for Whole-Time Director Rohan A. Desai. Remote e-voting opens on September 8, 2026, and closes on September 10, 2026.
- 14th AGM scheduled for September 11, 2026, with cut-off date set as September 5, 2026
- Ashwin J. Desai proposed for re-appointment as MD for 5 years at ₹12,07,500 per month
- Dr. Aman A. Desai and Rohan A. Desai proposed as WTDs at ₹18,11,250 and ₹16,61,250 per month respectively
- Cost auditor remuneration proposed at ₹1,20,000 for FY27
- Remote e-voting window active from September 8, 2026 (09:00 IST) to September 10, 2026 (17:00 IST)
Aether Industries has approved the allotment of 15,269 equity shares to eligible employees under its Employee Stock Option Scheme 2021. The shares were issued at an exercise price of Rs. 885, which is a significant discount to the current market price of Rs. 1618.7. This allotment results in a negligible equity dilution of approximately 0.01% of the total share capital. The total paid-up equity capital of the company now stands at Rs. 132.73 crore.
- Allotment of 15,269 equity shares of face value Rs. 10 each upon exercise of options
- Exercise price fixed at Rs. 885 per share, representing a ~45% discount to the current market price of Rs. 1618.7
- Total issued share capital increased to Rs. 132,72,78,450 comprising 13,27,27,845 shares
- The allotment is part of an overall approved ESOP pool of 11,00,000 equity shares
- New shares will rank pari-passu with existing equity shares and have no lock-in period
Aether Industries has announced its participation in the 'Ambit-Daiwa India Access' investor conference scheduled for August 17-18, 2026, in Singapore. The engagement will include one-on-one and group meetings with institutional investors. The company stated that no unpublished price-sensitive information (UPSI) will be discussed during these sessions. This is a standard procedural disclosure under SEBI Regulation 30 to maintain transparency regarding management interactions.
- Participation in Ambit-Daiwa India Access conference on August 17-18, 2026
- Meetings to be held physically in Singapore
- Format includes both One-on-One and Group interactions
- Company confirms no UPSI will be shared during the event
- Aether maintains a high P/E of 97.6 with a market cap of Rs 21,421 Cr
Aether Industries is executing a massive expansion strategy, headlined by a ₹2,200-₹2,300 Cr investment in its 'Magnum' Site 5, which represents nearly 200% of its TTM revenue. The company is pivoting its revenue mix toward high-margin Contract Exclusive Manufacturing (CEM) and CRAMS, targeting a 70%+ share within two years. A landmark multi-year research partnership with Dow Chemical has been launched to develop silicone manufacturing technologies, marking Aether's entry into a new platform chemistry. Additionally, the company is positioning itself as an upstream supplier for the AI and 5G semiconductor markets through advanced low-dielectric materials.
- Planned investment of ₹2,200 to ₹2,300 Cr for Site 5 (Magnum) featuring 16 production blocks.
- Targeting 70%+ revenue contribution from CEM and CRAMS segments in the next 2 years.
- CEM segment maintains high EBITDA margins between 28% and 30%.
- R&D infrastructure scaling to 160 cumulative fume hoods by FY2028.
- Exclusive multi-year research program with Dow Chemical for silicone technology development announced July 30, 2026.
Aether Industries has released the audio recording of its earnings conference call for the first quarter ended June 30, 2026. The call was conducted on July 31, 2026, following the release of the quarterly financial results. This is a standard regulatory disclosure under SEBI LODR Regulations to ensure transparency for all shareholders. Investors can access the recording via the company's website to review management's commentary on performance and future outlook.
- Earnings conference call conducted on July 31, 2026, for the quarter ended June 30, 2026
- Audio recording made available on the company website as per Regulation 30 of SEBI LODR
- Company maintains a high TTM P/E of 93.0, making management commentary on growth crucial
- TTM revenue stands at Rs 1,153 Cr with a targeted growth rate of 35%
Aether Industries reported a standalone total comprehensive income of ₹48.38 Cr for Q1 FY27, representing a 20.1% growth compared to ₹40.26 Cr in the same quarter last year. The Board approved the re-appointment of the founding promoter family, including MD Ashwin Desai, for new 5-year terms starting October 2026, ensuring leadership continuity. The company also received a final insurance settlement of ₹26.01 Cr related to a 2023 fire incident. While YoY performance improved, the quarterly EPS of ₹3.64 is slightly lower than the ₹4.07 reported in the immediate preceding quarter (Mar 2026).
- Standalone Total Comprehensive Income for Q1 FY27 reached ₹48.38 Cr, up from ₹40.26 Cr YoY.
- Basic EPS for the quarter stood at ₹3.64, a 20% increase from ₹3.03 in Q1 FY26.
- Final insurance settlement of ₹26.01 Cr received for the November 2023 fire incident at Manufacturing Facility-II.
- Re-appointment of 4 promoter-directors for 5-year terms effective October 1, 2026, subject to shareholder approval.
- Allotment of 32,752 equity shares under the Employee Stock Option Scheme during the quarter.
Aether Industries has announced a collaborative research program with Dow Chemical International to develop silicone manufacturing technologies in India. The research and pilot-scale development will be conducted at Aether's Surat facilities, leveraging their ongoing R&D expansion from 55 to 150 fume hoods (a 172% increase). While the immediate contract value is not disclosed, the agreement includes a framework for long-term strategic partnership and potential industrial-scale manufacturing. This collaboration aligns with Aether's goal to increase its CEM and CRAMS revenue mix to 70-75%.
- Collaborative research program launched with Dow Chemical International for silicone technology.
- R&D infrastructure expanding by 172% to 150 fume hoods to support CRAMS and CEM growth.
- Targeting a revenue mix of 70-75% from high-margin CEM and CRAMS segments.
- Program includes potential for future industrial-scale manufacturing of developed technologies.
- Aether reported TTM revenue of ₹1153 Cr and maintains a high OPM of 31.4%.
Aether Industries has signed a collaborative research agreement with Dow Chemical International to develop indigenous silicone manufacturing technologies in India. The program will be executed at Aether's Surat R&D facility, which is currently undergoing a 172% expansion in fume hood capacity (from 55 to 150). While the immediate contract value is not disclosed, the agreement establishes a framework for long-term strategic partnership and potential industrial-scale manufacturing. This move aligns with Aether's goal to increase its CRAMS and CEM revenue mix to 70-75%.
- Collaborative research program with Dow Chemical International for silicone manufacturing technology.
- Research and pilot-scale development to be conducted at Aether's Surat facility.
- Aether is expanding R&D infrastructure by 172% (from 55 to 150 fume hoods) to support such programs.
- Agreement includes a framework for potential future industrial-scale manufacturing of developed technologies.
- Targeting high-growth sectors including construction, mobility, electronics, and healthcare.
Aether Industries reported a strong Q1 FY27 with revenue rising 27% YoY to Rs 326.6 Cr and PAT increasing 33% to Rs 62.7 Cr. The company successfully operationalized Site 5 Phase One (2 production blocks) and Site 3++, while onboarding 10 new customers. High-margin CEM and CRAMS segments now contribute 60% of revenue, with a target to reach 70% within two years. R&D investment remains robust at 6.16% of revenue (Rs 19.8 Cr) to fuel future product launches.
- Revenue from operations grew 27% YoY to Rs 326.6 Cr in Q1 FY27.
- Net Profit (PAT) increased 33% YoY to Rs 62.7 Cr, with margins improving to 19%.
- CEM and CRAMS segments now contribute 60% of total revenue, targeting 70% by FY29.
- Site 5 Phase One (2 production blocks) commenced commercial operations in Q1 FY27.
- R&D expenditure for the quarter stood at Rs 19.8 Cr, representing 6.16% of revenue.
Financial Performance
Revenue Growth by Segment
In Q2 FY26, Contract and Exclusive Manufacturing (CEM) contributed 47% of revenue, surpassing Large-Scale Manufacturing (LSM) which stood at 41%. Contract Research and Manufacturing Services (CRAMS) contributed 9%. CEM and CRAMS combined grew to represent over 50% of total sales, reflecting a strategic shift toward high-margin, specialized services.
Geographic Revenue Split
International markets, including Japan, Europe, and the US, accounted for 39.49% of FY25 revenue from operations. The remaining ~60.51% is primarily driven by a domestic customer base of 154 companies, providing a balanced exposure to both global and local demand.
Profitability Margins
PAT margin improved to 19% in Q2 FY26 from 17% in Q2 FY25. Management targets a long-term PAT margin of 19-20%, balancing high-margin CEM/CRAMS growth against rising depreciation from aggressive capacity expansion. Operating profit margins reached 32% in Q4 FY25, reflecting improved cost management.
EBITDA Margin
EBITDA margin stood at 31% in Q2 FY26, a significant increase from 25% in Q2 FY25 (up 600 bps). This was driven by a 70% YoY increase in EBITDA to INR 85.3 Cr, supported by a shift toward higher-margin contract manufacturing partnerships.
Capital Expenditure
Total capital expenditure in FY25 was approximately INR 42.6 Cr, up from INR 30 Cr in FY24. Significant investments are directed toward Site-3, Site-5, and the newly commissioned Site-4 to scale production from kilograms to thousands of metric tonnes.
Credit Rating & Borrowing
The company maintains a robust credit profile with zero long-term debt as of March 31, 2025. Gearing remains low as the company used IPO proceeds to prepay borrowings. Interest expenses in Q4 FY25 were INR 5.13 Cr, primarily related to working capital and short-term requirements.
Operational Drivers
Raw Materials
Key inputs include crude oil derivatives and coal, which directly impact steam and utility costs. Steam charges decreased 20.8% from INR 20.2 Cr to INR 15.98 Cr due to lower global coal and crude prices, while electricity costs rose 27.3% to INR 17.2 Cr following the commissioning of Site-4.
Import Sources
Raw materials are sourced globally and domestically, with strategic partnerships in Saudi Arabia (Saudi Aramco) and Europe (SEQENS). The company leverages these sources to mitigate supply chain disruptions and maintain production stability.
Key Suppliers
Key strategic partners and suppliers include Saudi Aramco, Baker Hughes, Novoloop, and SEQENS. These relationships often involve both supply of raw materials and exclusive manufacturing agreements.
Capacity Expansion
Aether is expanding its R&D infrastructure by increasing fume hoods from 55 to 150 (a 172% increase) to handle rising CRAMS inquiries. Manufacturing capacity is scaling through the commissioning of Site-4 and planned developments at Site-3 and Site-5.
Raw Material Costs
Cost of materials consumed plus changes in inventories stood at INR 276.3 Cr for H1 FY26, representing approximately 52% of revenue. The company utilizes its R&D strength to innovate processes, helping to mitigate the impact of volatile input prices.
Manufacturing Efficiency
The company is transitioning to a 70% CEM/CRAMS mix, which typically offers better manufacturing efficiency and lower working capital intensity compared to the Large-Scale Manufacturing (LSM) segment.
Logistics & Distribution
Distribution is handled through a network of local representatives in Japan, Europe, and the US. Logistics costs are managed as part of the broader 'Other Expenses' category, which rose 14% YoY in H1 FY26.
Strategic Growth
Expected Growth Rate
35%
Growth Strategy
Growth will be achieved by shifting the revenue mix toward CEM and CRAMS (targeted at 70-75% of revenue), expanding R&D capacity by 172% (to 150 fume hoods), and operationalizing new manufacturing sites (Site-3, 4, and 5). The company is also targeting market share gains from Chinese competitors through process innovation and strategic MNC partnerships.
Products & Services
Specialty chemicals including 4MEP, T2E, and CO2-based polyols. Services include Contract Research and Manufacturing Services (CRAMS) and Contract/Exclusive Manufacturing (CEM) for the pharma, agrochemical, and oil & gas sectors.
Brand Portfolio
Aether, Aether Speciality Chemicals Limited (wholly owned subsidiary).
New Products/Services
Introduction of high-margin specialty chemicals and sustainable solutions like CO2-based polyols. R&D investments of 6-7.4% of revenue are dedicated to launching these new products to drive future growth.
Market Expansion
Strengthening international presence in Japan, Europe, and the US through local representatives and advisors. The company is also exploring strategic acquisitions to expand its technical capabilities and market reach.
Market Share & Ranking
Aether is a market leader in niche products like 4MEP and T2E. It is recognized as one of the fastest-growing specialty chemical companies in India with a 35% revenue CAGR from FY19 to FY25.
Strategic Alliances
Strategic manufacturing and development partnerships with global leaders including Baker Hughes, Saudi Aramco, Novoloop, and SEQENS.
External Factors
Industry Trends
The industry is shifting toward sustainable chemistry and diversified supply chains (China + 1). Aether is positioning itself by investing in CO2-based polyols and expanding its CRAMS capabilities to capture the 'ocean of opportunities' in outsourced R&D.
Competitive Landscape
Key competition arises from large Indian specialty chemical players and Chinese manufacturers. Aether differentiates through its 'R&D-first' approach and focus on complex chemistries.
Competitive Moat
Moat is built on deep R&D integration, high entry barriers in CEM/CRAMS, and long-term MNC contracts. Sustainability is driven by in-house process innovation (110+ daily experiments) which makes it difficult for competitors to replicate cost structures.
Macro Economic Sensitivity
Highly sensitive to global industrial production and R&D spending in the pharmaceutical and agrochemical sectors. A 1% shift in global chemical demand significantly impacts the CRAMS inquiry pipeline.
Consumer Behavior
Increasing demand for sustainable and 'green' chemicals is shifting customer preferences toward Aether's innovative product launches like CO2-based polyols.
Geopolitical Risks
Trade barriers and government incentives in China pose a competitive risk. Aether counters this by positioning itself as a reliable 'China + 1' partner for global MNCs.
Regulatory & Governance
Industry Regulations
Operations are subject to strict environmental and pollution control norms in Gujarat (Sachin GIDC). Compliance with international manufacturing standards is mandatory for its global MNC contracts (Baker Hughes, SEQENS).
Environmental Compliance
The company invests in advanced safety and environmental infrastructure, including DCS automation for process control and collaborative fire-fighting reserves, to meet stringent GIDC and international safety norms.
Taxation Policy Impact
Tax expenses for H1 FY26 were INR 34.9 Cr on a PBT of INR 135.9 Cr, representing an effective tax rate of approximately 25.7%.
Legal Contingencies
The company is recovering from a past fire incident which impacted FY24 results. While specific pending court case values are not disclosed, the company has implemented rigorous safety audits to prevent future legal and operational liabilities.
Risk Analysis
Key Uncertainties
Volatility in raw material prices (crude/coal) and potential operational disruptions (fire/safety) are the primary risks, with the potential to impact EBITDA margins by 3-5%.
Geographic Concentration Risk
Approximately 60% of revenue is domestic, while 39.49% is concentrated in the US, Europe, and Japan, exposing the company to regional economic cycles in these areas.
Third Party Dependencies
High dependency on key MNC partners like Baker Hughes for the utilization of Site-4. Any change in these contractual relationships would significantly impact the projected 70% CEM revenue contribution.
Technology Obsolescence Risk
The specialty chemicals sector is R&D intensive; Aether mitigates obsolescence by investing 6-7.4% of revenue into its R&D facility and increasing fume hood capacity to 150 units.
Credit & Counterparty Risk
Receivables and inventory levels are high, leading to elevated working capital intensity. However, the shift toward CRAMS and CEM with reputed global MNCs is expected to improve the credit quality of the receivables book.
