Aether Industries (AETHER) Q4 25/26 earnings summary

Executive summary

• FY26 revenue grew 38% year-over-year to ₹11,601 million, with EBITDA up 53% to ₹3,547 million and PAT up 39% to ₹2,195 million, driven by strong pricing, new product launches, and robust CEM/CRAMS business models.

• 19 new marquee clients were added and over 50 customer/certification audits completed, reflecting operational excellence.

• Major R&D expansion underway, including new labs, fume hoods, and a new facility to double capacity.

• Appointment of a new business development leader for Europe to drive international growth.

• Strategic focus on innovation, customer integration, and execution to maintain competitive advantage.

Financial highlights

• FY26 consolidated revenue: ₹11,601 million (up 38% YoY); EBITDA: ₹3,547 million (up 53% YoY); PAT: ₹2,195 million (up 39% YoY).

• Q4 FY26 revenue: ₹3,051 million, EBITDA: ₹814 million, PAT: ₹540 million; Q4 impacted by a ₹70 million inventory loss from a warehouse fire.

• Working capital cycle reduced to 179 days from 194 days YoY; cash flow from operations increased to ₹1,424 million.

• CapEx for FY26 was ₹3,838 million; FY27 CapEx expected at ₹3,000–3,500 million, mainly for Site 5 and new R&D site.

• Cash and cash equivalents at FY26 end stood at ₹57 million.

Outlook and guidance

• Pricing environment expected to remain strong for the next two to three quarters, with sustained demand and margin stability.

• Commercialization of Site 5 and ramp-up of Site 3+ and Site 4 to drive revenue growth in FY27.

• Targeting 70% of revenue from CRAMS and CM by FY30, with ongoing shift in product mix.

• Working capital days expected to decline to 160–150 by end of FY27.

• EBITDA margin guidance for FY27: 29–30%; PAT margin: 19–20%.