Aether Industries (AETHER) Q1 25/26 earnings summary

Executive summary

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

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

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

• Ongoing expansion at Site 3+ (Milliken) and Site 5 (Panoli), with new production blocks targeting pharma, agro, oil & gas, and material sciences.

• Stable product pricing and margins maintained despite geopolitical and tariff uncertainties.

Financial highlights

• Consolidated revenue for Q1 FY26 was ₹2,587M, up from ₹1,920M in Q1 FY25.

• EBITDA rose to ₹781M, with margin at 30% (up from 22%/21.17% last year).

• PAT increased to ₹470M, with PAT margin at 18% (up from 16%/12.94% last year).

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

• Working capital cycle reduced to 190 days from 195 days as of March 2025; inventory days down to 165.

Outlook and guidance

• CapEx of ₹3,500M planned for FY26, allocated to Site 3+, Site 3++, and Site 5.

• Site 3+ (Milliken) to commence production by Q4 FY26; Site 5’s first two blocks targeted for Q3 FY26.

• Asset turn at Site 5 expected to reach 1.75x at maturity.

• R&D expansion planned, with ₹300-400M to add 15 labs and 130 fume hoods.