Aether Industries (AETHER) Q3 25/26 earnings summary

Executive summary

• Construction and installation of Site 3++ and first two production blocks of Site 5 completed; commercial production to commence by March 2026.

• Three business verticals (CRAMS, CEM, LSM) continue to perform well despite global volatility, with LSM, CEM, and CRAMS together contributing over 50% of revenue in Q3 FY26.

• 15 new customers onboarded and 36 customer/certification audits completed in 9M FY26; 5 new marquee clients and 3 new products added in large-scale manufacturing.

• Export revenue at 36% and domestic sales at 64% for the quarter; sectoral split: pharma and agro 45%, oil and gas 22%, material science 18%.

• Board approved unaudited standalone and consolidated financial results for Q3 and nine months ended December 31, 2025, reviewed by independent auditors.

Financial highlights

• Q3 FY26 consolidated revenue: ₹3,171 million, up 44% year-on-year; EBITDA: ₹1,083 million, up 75% year-on-year; PAT: ₹645 million, up 49% year-on-year.

• 9M FY26 revenue: ₹8,534 million, up 43% year-on-year; EBITDA: ₹2,716 million, up 78%; PAT: ₹1,655 million, up 53%.

• Standalone Q3 revenue: ₹2,571.40 million; standalone Q3 net profit: ₹519.59 million.

• EPS (consolidated, Q3): ₹4.86; EPS (standalone, Q3): ₹3.92.

• EBITDA margin for 9M FY26: 31.83%; sustainable EBITDA margin expected around 29-30% (excluding one-time items).

Outlook and guidance

• Expecting continued volume growth and increased trend in FY27 as new sites and products ramp up; commercialization of Milliken contract on track for Q1 FY27.

• Targeting 70% of revenue from CRAMS and CEM, 30% from LSM in 2-3 years.

• Site 3++ and Site 5 expected to reach 45-50% and 35-40% utilization, respectively, in FY27.

• R&D expansion ongoing, with new fume hoods and a new R&D center under development.

• Management is evaluating the impact of new labour codes and expects no material effect on results.