Aether Industries (AETHER) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 saw strong growth with consolidated revenue up 40% year-over-year and 11% sequentially, and PAT increasing 149% year-over-year and 25% sequentially.

• Eight new clients were added, with 31 new customers and 33 customer audits completed in 9MFY25, and resilient demand across product lines.

• Site 2 resumed full capacity after regulatory clearance post-accident, and expansion at Sites 3, 3++, and greenfield Site 5 is progressing on schedule.

• Strategic supply agreements, notably with Baker Hughes, are driving new product launches and ramp-up at Site 4.

• Sustainability initiatives include commissioning a 15MW solar plant, now sourcing over 80% of electricity from renewables.

Financial highlights

• Q3 FY25 consolidated revenue was INR 2,333 million, up 11% sequentially; EBITDA was INR 757 million, and PAT was INR 434 million.

• Nine-month FY25 consolidated revenue grew 25% year-over-year to INR 6,351 million; EBITDA up 32% to INR 1,891 million; PAT up 29% to INR 1,081 million.

• EBITDA margin improved to 32% in Q3 FY25 from 22% in Q3 FY24; PAT margin at 19%.

• Standalone Q3 FY25 revenue was INR 1,974 million; PAT was INR 409 million.

• Basic and diluted EPS (consolidated) for Q3 FY25 was ₹3.27, up from ₹1.32 in Q3 FY24.

Outlook and guidance

• Management expects a potential uptrend in prices post-Chinese New Year, with stable to improving margins.

• Full revenue potential from Baker Hughes and Saudi Aramco projects expected to ramp up in FY26-FY27.

• Working capital cycle targeted to improve to 150-160 days by FY27-FY28.

• EBITDA margins expected to remain around 30% for the next 1-2 years, with potential for further improvement as new contracts scale.

• Insurance claims related to fire damage are expected to be received in Q4 FY25, with further claims for fixed assets to be submitted after assessment.