Aether Industries (AETHER) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue reached ₹2,587M, up 5% sequentially and 35% year-over-year, with EBITDA at ₹781M (+2% Q/Q, +94% Y/Y) and PAT at ₹470M (-7% Q/Q, +57% Y/Y).

• Six new customers were onboarded, and 11 customer/certification audits were completed, reflecting operational excellence.

• Major business model contributions: 52% from large-scale manufacturing, 37% from contract/exclusive manufacturing, and 10% from contract research and manufacturing services.

• Significant 10-year exclusive manufacturing agreement signed with Milliken & Co., with Site 3++ dedicated to this project.

• Ongoing expansion at Site 5 (Panoli) and Site 3++, with new products targeting pharma, agrochemical, oil & gas, and material sciences sectors.

Financial highlights

• Revenue for Q1 FY26: ₹2,587M, up 35% Y/Y (Q4 FY25: ₹2,453M; Q1 FY25: ₹1,920M).

• EBITDA: ₹781M, up 94% Y/Y; EBITDA margin at 30%.

• PAT: ₹470M, up 57% Y/Y; PAT margin at 18%.

• R&D expenditure was ₹168.79M, 6.54% of revenue.

• Working capital cycle reduced to 190 days from 195 days sequentially; inventory days down to 165.

Outlook and guidance

• Site 3++ expansion is on track, with a strategic product launch for Milliken & Co. expected by Q4 FY26.

• Site 5 phase one commissioning of two production blocks targeted by end of Q3 FY26; adjacent land acquired for future expansion.

• Expecting strong growth from Baker Hughes, Milliken, and Site 5 projects, with new molecules and commercial production ramping up in FY26 and FY27.

• No specific forward-looking revenue guidance provided, but management anticipates a positive growth trajectory.

• CapEx of INR 350 crores planned for FY26, with major investments in Site 3+, Site 3++, and Site 5.