Company Overview and Financial Performance
Aarti Industries Limited reported strong financial results for FY 2025-26 with consolidated revenue of ₹9,018 Crores (12% YoY growth) and profit after tax of ₹419 Crores (27% YoY growth). The company achieved EBITDA of ₹1,172 Crores with exports contributing 57% of total revenues. Key financial metrics include EPS of ₹11.56, net debt of ₹4,310 Crores, and debt-to-EBITDA ratio of 3.7x.
Operational and Strategic Developments
The company secured significant contracts including a $150 million multi-year supply agreement with a global agrochemical innovator extending through March 2030 and a 15-year backward integration arrangement with a leading chemical major. Capacity expansions included scaling MMA capacity to 290 KTPA and DCB capacity to 140 KTPA. The Zone IV pilot plant at Jhagadia was commissioned, with multi-purpose plant development underway.
Corporate Governance and Leadership
Board composition includes 14 directors with 50% independent directors. Leadership transition plans involve Suyog Kotecha becoming Managing Director and CEO effective October 1, 2026, with promoter directors transitioning to non-executive roles. Executive director remuneration ratios ranged up to 152:1 compared to median employee pay, with median employee remuneration increasing by 6%.
ESG and Sustainability Performance
Aarti achieved exceptional ESG ratings including EcoVadis Platinum (top 1% globally), leadership band in CDP Climate Change and Water Security, and inclusion in S&P Global Sustainability Yearbook. The company set SBTi-approved targets of 54.6% reduction in Scope 1 & 2 emissions and 32.5% reduction in Scope 3 emissions by FY33. Operational achievements include 39% water recycling, 95% hazardous waste recovery/recycling, and 81% manufacturing units Zero Waste to Landfill certified.
Capital Structure and Investments
Gross block stood at ₹8,877.33 Crores with capital work-in-progress of ₹2,029.52 Crores. Total borrowings were ₹4,919.61 Crores with net gearing ratio of 0.75. The company spent ₹8.90 Crores on CSR activities, exceeding the mandated 2% requirement by ₹0.60 Crores, including significant healthcare infrastructure investments.
Related Party Transactions and Subsidiaries
Significant transactions included ₹272.97 Crores sales to Valiant Organics, ₹140.52 Crores purchases from Aarti Drugs, and ₹1,052.72 Crores sales to Aarti Chemical Trading FZCO. The company maintains 7 direct subsidiaries, 2 indirect subsidiaries, and 2 joint ventures including Augene Chemical Private Limited and Re-Aarti Private Limited.
Regulatory Compliance and Disclosures
The secretarial audit confirmed full compliance with Companies Act, SEBI regulations, and other statutory requirements. The Integrated Annual Report was filed under SEBI LODR Regulation 34, with the 43rd AGM scheduled for September 21, 2026 via video conference. The company maintained 100% attendance across board meetings and committee oversight functions.
Forward Outlook
The report contains forward-looking statements regarding growth strategies, capacity expansions, and market opportunities, targeting 20% pre-tax ROCE for new investments while acknowledging risks including raw material price volatility and regulatory changes.