Aarti Industries (AARTIIND) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue rose 8% YoY and 14% QoQ to INR 2,035 crores, with EBITDA at INR 236 crores, up 17% QoQ but down 12% YoY; profit after tax dropped 63% YoY to INR 46 crores, impacted by INR 23 crores forex MTM loss on ECB loan due to rupee depreciation.

• Non-energy business volumes grew 14% YoY and 8% QoQ; energy business volumes up 14% YoY and 10% QoQ, supported by cost efficiencies, product diversification, and geographic expansion.

• Pricing pressure persisted across product chains, especially in agrochemicals, due to global overcapacity, particularly from China.

• Major developments include signing renewable energy PPAs and forming a JV for advanced plastic recycling, targeting 500 TPD capacity by 2030.

• Board approved audited results for Q3 and 9M FY25; financials reviewed by Audit Committee and auditors issued unqualified opinions.

Financial highlights

• Q3 FY25 revenue at INR 2,035 crores, up 14% QoQ and 8% YoY; EBITDA at INR 236 crores, up 17% QoQ; PAT at INR 46 crores, impacted by INR 23 crores forex MTM loss.

• 9M FY25 revenue was INR 5,833 crores, up 15% YoY; 9M EBITDA at INR 749 crores, up 7% YoY; 9M PAT at INR 235 crores, down 18% YoY.

• Exports for Q3 were INR 1,009 crores, up from INR 900 crores in the previous quarter.

• Net debt at end of December quarter was approximately INR 3,600 crores; net debt-equity ratio (consolidated) at 0.7.

• Basic EPS (consolidated) for Q3 FY25: INR 1.27; 9M FY25: INR 6.48.

Outlook and guidance

• Targeting EBITDA of INR 1,800–2,200 crores in three years, with Debt/EBITDA below 2.5x and ROCE above 15%.

• Confident in meeting short- and medium-term guidance; targeting 20%-25% CAGR EBITDA over 3-5 years.

• CapEx for FY25 guided at INR 1,300-1,500 crores; FY26 CapEx expected below INR 1,000 crores.

• Tax rate expected to remain near zero for FY25, rising to low single digits in FY26.

• Strategic focus on R&D, asset-light growth, and sustainability initiatives.