Aarti Industries (AARTIIND) Q4 2025 earnings summary

Executive summary

• FY 2025 revenue grew 15% YoY to INR 8,046 crore, with Q4 revenue at INR 2,214 crore, up 13% YoY and 9% QoQ; EBITDA for FY 2025 was INR 1,016 crore, up 3% YoY, and Q4 EBITDA was INR 283 crore, up 13% QoQ.

• PAT for FY 2025 was INR 331 crore, down from INR 416 crore YoY, with Q4 PAT at INR 96 crore, down 27% YoY but up 109% QoQ.

• Board recommended a final dividend of INR 1 per share for FY 2025.

• Management remains focused on volume-led growth, cost optimization, and capital discipline amid global uncertainties.

• Pricing pressure persists across product chains, especially agrochemicals.

Financial highlights

• Export revenue for Q4 was INR 1,240 crore, with exports comprising 55% of quarterly revenue, up from 48-50% last year.

• CapEx for FY 2025 was INR 1,372 crore, mainly for Zone IV projects.

• Consolidated EBITDA margin for the year was 12.4%, down from 13.9% YoY.

• Earnings per share (consolidated, basic) for the year was INR 9.13, down from INR 11.49 YoY.

• Standalone and consolidated net debt-to-equity ratio stood at 0.6.

Outlook and guidance

• FY 2026 expected to see continued volume-led growth, leveraging existing capacity and new projects.

• Three-year EBITDA target set at INR 1,800–2,200 crore, with Debt/EBITDA <2.5x and ROCE >15%.

• Most operating leverage initiatives to be completed in the first two years; cost optimization and hybrid power projects to accrue full EBITDA benefits from FY 2027.

• Net debt expected to decline by INR 200-300 crore in FY 2026 as CapEx moderates and working capital unlocks.

• Long-term issuer and bank facilities credit ratings retained at AA/Stable by CRISIL and India Ratings.