Aarti Industries Q2 Revenue Up 73% YoY

Q2 FY27 Financial Results:

Revenue from Operations: ₹3,887 crore, representing 73% year-over-year (YoY) growth and 48% quarter-over-quarter (QoQ) growth
EBITDA: ₹418 crore, compared to ₹291 crore in Q2 FY26, representing 44% YoY growth
Profit After Tax: ₹169 crore, registering 60% YoY growth
EBITDA margins were suppressed due to elevated input prices, though absolute EBITDA remained protected through robust pass-through model

H1 FY27 Performance:

Volumes increased by over 30% during the quarter
Higher export demand drove revenue growth
Effective pass-through of elevated raw material costs supported revenue growth
Fuel additives capacity expanded from 290 KTPA to 360 KTPA, supporting higher volumes

Zone IV Commissioning:

Phase I commissioned in September 2026
Calcium Chloride (CaCl2) facility and part of the Multipurpose Plant (MPP) have commenced operations
Current activities focused on stabilisation, customer qualifications and progressive commercialisation
Further capacities scheduled for commissioning during Q3-Q4 FY27
Expected to emerge as key growth engine over next 1-2 years, supporting portfolio diversification and expansion into value-added chemistries

Strategic Partnerships:

On October 13, 2026, entered into manufacturing and supply agreement with global speciality chemicals company
Agreement spans more than 10 years with cumulative revenue potential of approximately ₹1,500 crore
Commercial operations at proposed dedicated facility targeted for FY29
Augene Chemicals JV progressing towards commercial production
Circularity JV remains targeted for commissioning in H2 FY27

Operational Efficiency Initiatives:

Health & Safety Excellence:

Aarti Research and Technology Centre (ARTC) awarded Sword of Honour 2026 by British Safety Council
Received Five Star rating in health and safety management

Mr. Suyog Kotecha, Managing Director & CEO, highlighted:

Past two years focused on strengthening foundations for next phase of growth
Efforts directed toward expanding market participation, deepening customer partnerships, and building capabilities
Global supply chain evolution creating opportunities as customers prioritize reliability, technical depth, and long-term manufacturing partnerships
China's evolving role in global chemicals industry (including anti-involution initiatives) and India's expanding trade relationships through FTAs creating additional growth opportunities
Next phase focuses on converting opportunities into sustained earnings and stronger returns on investments
Priorities include expanding share of customer business, bringing new capabilities to productive utilisation, and strengthening cash generation

Expects to sustain growth momentum supported by export demand, progressing customer engagements, and commercialisation of new capacities
Remains focused on improving asset utilisation, operating efficiency, working capital management, and cash generation
Continuing development of value-added speciality chemical platforms
Global trade dynamics (China's capacity rationalization, India's trade agreements with UK and European markets) expected to strengthen India's competitive position in global supply chains over medium to long term
Impact visible in margin and volume improvements in NCB value chains, with momentum expected to continue and extend to other value chains like DCB, NT

Aarti Industries Limited is a leading global speciality chemicals company with:

Over four decades of expertise in complex process chemistries, scale-up and manufacturing
Established in 1984
Serves global and domestic customers across diverse end-use industries
Portfolio of 100+ products
16 manufacturing plants, four R&D centres, and 250+ scientists
Recent awards: EcoVadis Platinum Medal (top 1% globally), 2026 Gallup Exceptional Workplace Award, Sword of Honour from British Safety Council