Aether Industries Q1 FY27 PAT Up 33% YoY

Q1 FY27 Consolidated Financial Results:

Revenue: ₹3,266 million, increased by 27% YoY (from ₹2,566 million in Q1 FY26)
EBITDA: ₹1,028 million, increased by 31% YoY (from ₹785 million in Q1 FY26)
EBITDA Margin: 31% (vs. 30% in Q1 FY26)
PAT: ₹627 million, increased by 33% YoY (from ₹470 million in Q1 FY26)
PAT Margin: 19% (vs. 18% in Q1 FY26)

Insurance Claim Settlement:

Final claim for fixed assets lost in the fire accident on November 29, 2023, received from insurance company in Q1 FY27
Entire claim amount now received

Working Capital & Capex:

Working capital levels remain elevated due to strategic raw material positioning and semi-finished materials for Site 3++ and Site 5
Expect progressive decline in working capital days as new sites ramp up
Q1 FY27 Capex: ₹943 million
FY27 Expected Capex: ₹3,000-3,500 million, primarily for Site 5 and new R&D facility

Capacity Utilization (Q1 FY27):

Site 3++:

Site 5 (Magnum, Panoli):

R&D Expansion:

Interim expansion complete with additional fume hoods and new 400 MHz NMR
Larger R&D facility with ~15 new labs and ~160 cumulative fume hoods on track for FY2028 commissioning

Contract & Exclusive Manufacturing (CEM/CRAMS):

CEM runs at EBITDA margins north of 28-30%
Targeting 70+% revenue contribution from CEM/CRAMS in coming years
Q1 FY27: Onboarded 10 new marquee clients, cleared 9+ customer and certification audits
Converting CRAMS relationships into long-term Exclusive Manufacturing contracts
Strong demand signal from Western customers seeking manufacturing shift from Europe

Key CEM Customers:

Semiconductor Materials Foray:

Entering advanced low dielectric materials for 5G and AI hardware supply chain
Manufacturing specialty monomers and coupling agents for high-speed circuit boards
Products include building blocks for silane coupling agents and high-performance PPE-type resins
Low volume, high value products (~$50/kg)
Starting capacity: 400 tons, expected to grow 3x by 2030
Applying for benefits under India's semiconductor policy (ISM 2.0)
Currently manufacturing pharmaceutical intermediate for semiconductor application in Site 3 (10-15 metric tons/month capacity)

Dow Chemical Partnership (Announced July 30, 2026):

Exclusive multi-year collaborative research program to develop new manufacturing technologies for silicones
All R&D and pilot plant scale-up activities at Aether's facilities in Surat, Gujarat
Focus on developing differentiated manufacturing technology, not replicating existing methods
Framework established for potential long-term strategic partnership including commercialization
Addresses India's ~$1 billion silicone market (currently imported, growing at 7-10% CAGR)
Validates Aether's process chemistry and technology competencies

New LSM Products from Magnum (Site 5):

First set of three new LSM products across pharmaceutical, agrochemicals, and material science sectors
Price range: $30-40 per kg
First-time manufacture in India (import substitution with export opportunities)
Expected revenue contribution from Q2 FY27
Pharmaceutical application: Lowering blood cholesterol and triglyceride levels, preventing heart attacks and strokes

Oil & Gas Business:

FY2027 started as per plan with growth in core business and discipline on balance sheet
Strongest ever demand signal from order visibility and customer urgency
CEM and CRAMS businesses compounding and becoming more profitable as they scale
Semiconductor materials entry represents "most exciting chapter since listing"
Silicones partnership with Dow represents opportunity to enter new platform chemistry