Aarti Industries (AARTIIND) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue was INR 3,887 crore, up 73% YoY; EBITDA rose 44% to INR 418 crore and PAT increased 60% to INR 169 crore.

• H1 FY27 revenue grew 58% to INR 6,513 crore, EBITDA rose 58% to INR 802 crore and PAT increased 117% to INR 324 crore.

• Volume growth, input-cost pass-through and energy demand supported results; Zone IV, capacity additions and customer-backed partnerships underpin growth plans.

Financial highlights

• Q2 FY27 operational revenue of INR 3,887 crore was up 73% YoY and 48% QoQ; EBITDA of INR 418 crore rose 44% YoY and 9% QoQ.

• H1 FY27 revenue was INR 6,513 crore versus INR 4,118 crore; EBITDA was INR 802 crore versus INR 507 crore, and PAT was INR 324 crore versus INR 149 crore.

• Financial statements reported Q2 net revenue of INR 3,942 crore standalone and INR 3,668 crore consolidated; H1 net revenue was INR 6,183 crore and INR 6,055 crore, respectively.

• Q2 net profit was INR 186 crore standalone and INR 168 crore consolidated; H1 net profit was INR 330 crore and INR 323 crore, respectively.

• H1 trading volume contributed INR 500 crore to revenue and partly weighed on margins; elevated input prices also increased working capital and finance costs.

Outlook and guidance

• FY28 EBITDA target remains INR 1,800–2,200 crore, with Debt/EBITDA below 2.5x; management cited line of sight to the target.

• Three-year EBITDA drivers include INR 150–200 crore from cost optimisation, INR 350–550 crore from volume and margin ramp-up, and INR 300–450 crore from CAPEX-led growth.

• Zone IV is targeted to become EBITDA- and value-accretive in FY28; the first 18-month bottom-line ambition is INR 250–350 crore, with commercialisation and ramp-up targeted over FY27–FY28.

• FY27 CapEx is planned at INR 700–800 crore; management expects current momentum to continue and next-year guidance closer to FY-end.

• Energy is expected to settle at 30%–40% of the portfolio in the medium term; potential Q4 Zone IV fixed costs and softer winter gasoline-naphtha cracks are watchpoints.