Aarti Industries (AARTIIND) Q2 25/26 earnings summary

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.