Aarti Industries (AARTIIND) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 delivered resilient performance amid global volatility, with revenue and EBITDA both up 11% sequentially, and profit after tax rising 25% QoQ, driven by volume growth and operational efficiencies.

• Achieved a CSA score of 78 in the S&P Global Corporate Sustainability Assessment 2025, ranking in the top 2% of over 500 chemical companies globally.

• Expanded volumes for MMA due to increased capacity and resumed US exports for MMA and PDCB, partially absorbing US tariffs.

• Unaudited financial results for the quarter and nine months ended December 31, 2025, were reviewed and approved by the Board on February 2, 2026.

• The company operates in a single reportable segment: Specialty Chemicals.

Financial highlights

• Q3 FY26 revenue was INR 2,492 crore, up 11% QoQ and 22% YoY, led by robust volumes in MMA, NT, and DCB.

• EBITDA rose to INR 323 crore, up 11% QoQ and 13% YoY; profit after tax increased to INR 133 crore, up 25% QoQ and 11% YoY.

• 9M FY26 revenue up 13% YoY; EBITDA up 11% YoY; profit after tax up 20% YoY.

• Standalone net profit for Q3 FY26 was ₹101 Cr, up from ₹47 Cr in Q3 FY25; consolidated net profit was ₹133 Cr, up from ₹46 Cr year-over-year.

• Exceptional expense of ₹15.3 crore due to New Labour Code.

Outlook and guidance

• Management remains focused on midterm targets, expecting margin and volume improvements as macro tailwinds materialize.

• CapEx for FY26 is estimated at INR 1,100 crore, slightly above prior guidance, with FY27 CapEx expected to be significantly lower.

• Targeting EBITDA of ₹1,800–2,200 crore by FY28, with debt/EBITDA below 2.5x and ROCE above 15%.

• Consistent volume growth expected over the next three years, supported by capacity additions and cost optimization.

• The company continues to monitor the impact of new labour codes and will adjust estimates as further government clarifications are issued.