Aether Industries (AETHER) Q2 25/26 earnings summary

Executive summary

• All business verticals—CEM, LSM, and CRAMS—performed well, with CEM surpassing LSM in sales mix for the first time and CEM/CRAMS together contributing over 55% of revenue, aligning with the vision for 60%-70% sales share in two years.

• Significant ramp-up in CEM and CRAMS, with new contracts, expanded product portfolio, and a strong pipeline, including agreements with Baker Hughes and Milliken.

• Board approved unaudited standalone and consolidated financial results for Q2 and H1 ended September 30, 2025, with no material misstatements noted.

• Ongoing expansion at Site 3+ (Milliken) and Site 5 (Panoli), with new production blocks set to commence by Q4 FY26, supporting future growth.

• Ten new customers onboarded in H1 FY26 across all business models.

Financial highlights

• Q2 FY26 consolidated revenue from operations was INR 2,751 million (or €2,751M), up 38% year-over-year; EBITDA rose 70% to INR 853 million (or €853M), with EBITDA margin improving to 31%.

• Profit after tax for Q2 FY26 was INR 514 million (or €540M), up 55% year-over-year, with PAT margin at 19%.

• H1 FY26 revenue was INR 5,312 million (or €5,425M), up 40% year-over-year; EBITDA for H1 was INR 1,634 million, up 81%; PAT for H1 was INR 1,010 million, up 56%.

• Working capital cycle reduced to 149 days as of September 2025, with improvements in inventory and debtor cycles.

• Cash and cash equivalents at the end of H1 FY26 were INR 561.73 million (or €562M).

Outlook and guidance

• CEM and CRAMS expected to reach 60%-70% of sales in the next two years, with continued ramp-up in volumes and new contracts.

• CapEx for Site 5 to total INR 2,200-2,300 crores by FY 2030, with phased commissioning; asset turnover targeted at 1.5x-1.75x once fully operational.

• Revenue growth expected to continue at 25% annually as new capacities come online; second half of the year typically stronger.

• EBITDA margin of 29%-31% seen as sustainable; net profit margin expected to remain around 19%-20% due to ongoing CapEx and associated costs.

• Management continues to assess the impact of a fire incident at Manufacturing Facility 2; no loss due to fire accounted for fixed assets in Q2 and H1 FY26.