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Aarti Industries (AARTIIND) investor relations material

Aarti Industries Q2 25/26 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 25/26 earnings summary7 Nov, 2025

Executive summary

  • Achieved strong sequential and year-over-year growth in Q2 FY26, with revenue and EBITDA increases driven by higher volumes, especially in MMA, and benefits from deferred shipments realized in Q2.

  • Delivered growth despite U.S. tariffs on Indian chemical exports, leveraging market diversification, innovation, and disciplined execution.

  • Proactive steps taken to rebalance export mix toward Europe, Middle East, and Africa, with ongoing recalibration of U.S. strategy.

  • Strategic long-term chlorine supply agreement secured to enhance supply chain reliability and support future downstream growth.

  • Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved by the Board on November 6, 2025.

Financial highlights

  • Q2 FY26 consolidated revenue was ₹2,250 Cr, up 21% quarter-on-quarter and 26% year-on-year, with EBITDA up 36% QoQ and 44% YoY; PAT up 150% QoQ and 102% YoY.

  • Consolidated net profit after tax for Q2 FY26 was ₹106 Cr, up from ₹43 Cr in Q1 FY26 and ₹52 Cr in Q2 FY25.

  • CapEx for the quarter was ₹267 Cr; FY26 CapEx expected at ₹1,000 Cr.

  • Finance costs include a forex M2M loss of ₹34 Cr and one-time exceptional income of ₹29 Cr from a favorable tax order; exceptional expense of ₹7 Cr provisioned for doubtful land advance.

  • Basic EPS (consolidated) for Q2 FY26 was ₹2.91, compared to ₹1.19 in Q1 FY26 and ₹1.44 in Q2 FY25.

Outlook and guidance

  • Committed to achieving FY28 EBITDA aspirations and executing strategic plans focused on cost optimization and volume-led operating leverage.

  • CapEx for FY27 will be substantially lower than FY26; tax rate expected between 15%-20% for FY27.

  • Debt/EBITDA expected to remain below 2.5x, with ROCE above 15%.

  • Consistent volume growth expected over the next three years, driven by increased capacities and new product development.

  • The company retained its long-term issuer and bank facilities credit ratings of AA/Stable from CRISIL and India Ratings.

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Frequently asked questions

Aarti Industries Limited manufactures specialty chemicals and pharmaceuticals used in agrochemicals, polymers, pharmaceuticals, and dyes. The company operates integrated production facilities and exports to global markets. It is headquartered in Mumbai, Maharashtra, and its shares are listed on the NSE.

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