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Business Standard
01-08-2025
- Business
- Business Standard
Aarti Industries Demonstrates Resilience in Challenging Q1; Strategic Expansions and Diversified Portfolio Set Stage for Recovery
PRNewswire Mumbai (Maharashtra) [India], August 1: Aarti Industries Limited (AIL), a leading global speciality chemicals company, today announced its consolidated financial results for the first quarter ended June 30, 2025. The company's unaudited results were approved by the Board of Directors at its meeting held earlier today. Q1 FY26 unfolded amid an exceptionally volatile macroeconomic environment, marked by steep corrections in key raw materials like benzene and aniline, geopolitical uncertainties, and ongoing trade disruptions. These external factors led to short-term pricing pressure and supply chain challenges. Despite these headwinds, AIL maintained operational continuity, ensured stable volume and continued advancing its long-term growth agenda. On a consolidated basis, income from operations stood at ₹ 1,867 Cr, compared to ₹ 2,214 Cr in Q4 FY25. EBITDA stood at ₹ 215 Cr, while Profit After Tax (PAT) stood at ₹ 43 Cr. While financial performance was impacted in the short term, the underlying health of the business remains strong, backed by our diversified portfolio, customer engagement, expanded capacities and disciplined execution. Financial Highlights (Q1 FY26) * Revenue: ₹ 1,867 Cr, reflecting near-term impact of raw-material corrections and deferred export flows * EBITDA: ₹ 215 Cr, with margins affected by input price volatility and temporary operational disruptions * PAT: ₹ 43 Cr, in line with operational trends and higher interest and depreciation Commenting on the performance, Mr. Suyog Kotecha, CEO and Executive Director, said: "This was a uniquely challenging quarter shaped by global and regional volatility. Yet, what remained consistent was our commitment to long-term value creation. Our volumes stayed resilient, key capacity expansions are ramping up, and our green and circular initiatives continue progressing as planned. We are already seeing signs of normalisation in customer activity, raw material costs, and logistics, which reinforces our confidence in a stronger performance ahead. With the recent development on the US tariff front, we are closely monitoring the situation to ascertain the impact and plan appropriate actions." Business Highlights * Inventory Losses: A steep decline in prices of Key RM, such as Benzene and Aniline, trailing softer international prices, resulted in inventory losses during the quarter. * Stable Core Performance: Except for the deferment in shipments due to logistics issues, Volume trends remained largely intact across most key product lines and segments, demonstrating gradual recovery in diversified end-use demand. * Expanded Capacities: Scale-up of MMA capacities from 200 KTPA to 260 KTPA will support volume growth in the coming quarters. * Energy Applications: QoQ volume remains flat due to delays in bulk shipments from June to July. Increased market reach will support the volume ramp-up from the expanded capacities. Base Business: Recovery visible in agro intermediates despite pricing pressures. Demand from dyes, pigments and pharma held steady. The Polymer and Additives segment is showing mixed trends across different product value chains. Strategic Updates * Zone IV Project: Progressing on track with commissioning targeted in a phased manner from H2FY26, marking a key foray into multiple new advanced chemistries. * Augene Chemicals JV (with Superform): Construction and market development are advancing steadily; commissioning expected in H1 CY26. * Re Aarti JV ( with ReSL): Pilot plastic waste recycling plant in Hyderabad on schedule; technology design finalised and vendor alignment in progress * Green Energy Transition: First solar PPA-linked facility to begin power supply this year; second hybrid plant expected by early FY27 While Q1 presented temporary challenges, AIL's long-term strategy remains firmly intact with key growth drivers - Sustained demand recovery across end-user sectors such as energy, polymers, and dyes, ongoing commissioning and scale-up of high-value chemistries, strong traction in sustainability-led platforms and flexible manufacturing infrastructure enabling adaptability. With these pillars in place, AIL is well-positioned to navigate near-term uncertainty and deliver consistent, value-led growth across global markets. About AIL Aarti Industries Limited (AIL) is one of the world's leading speciality chemical companies, combining process chemistry with scale-up engineering competence. The Company ranks globally 1st - 4th position for 75% of its portfolio and is a "Partner of Choice" for various Major Global & Domestic Customers. At the heart of AIL's operations is a dedication to sustainable development, seamlessly integrating environmental stewardship into its business model by leveraging cutting-edge technologies and a robust infrastructure to deliver solutions that balance economic growth with ecological responsibility. The Company's commitment to innovative and sustainable practices and immense care for its people and the planet defines its path to success.
Business Standard
09-05-2025
- Business
- Business Standard
Aarti Industries Delivers Volume-Led Growth in Q4; Sets Strong Foundation for FY26 with Strategic Expansions and Sustainability Focus
PRNewswire Mumbai (Maharashtra) [India], May 9: Aarti Industries Limited (AIL), a leading global speciality chemicals company, today announced its consolidated financial results for the fourth quarter and full year ended March 31, 2025. The company's audited results were approved by the Board of Directors in a meeting held earlier today. The company delivered volume-led growth, sequential improvement in profitability, and continued progress on key strategic and sustainability initiatives. On a consolidated basis, for the quarter, income from operations stood at Rs 2214 Cr, compared to Rs 2038 Cr in Q3 FY25 ('previous quarter'). EBITDA stood at Rs 266 Cr, compared to Rs 236 Cr in the previous quarter. PAT stood at Rs 96 Cr, compared to Rs 46 Cr in the previous quarter. FY25-26 has commenced on a confident note, supported by a steady demand recovery across key segments and robust execution of AIL's long-term growth roadmap. The company remains well-positioned to leverage emerging opportunities across global markets through its diversified portfolio, innovation-led solutions, and strong customer relationships. Financial Highlights (Q4 FY25) - Revenue: Rs 2214 Cr, marking 9% QoQ growth - EBITDA: Rs 266 Cr, up 13% QoQ, reflecting operating leverage and improved cost controls - PAT: Rs 96 Cr, rising 109% sequentially on the back of better volumes and efficiency gains Commenting on the performance, Mr. Suyog Kotecha, CEO and Executive Director, said: "We are encouraged by the positive momentum across our businesses, particularly the recovery in core product volumes and the continued execution of our expansion and sustainability agenda. FY26 begins amid a volatile macroeconomic environment, US tariffs, geopolitical tensions, etc. With a strong pipeline of growth initiatives, we are focused on delivering consistent, value-led growth while strengthening our position as a global partner of choice." Business Highlights: * Strong volume recovery in Nitro Toluene, NCB, and Ethylation-based products, supported by capacity additions. * Sequential volume growth aided by refined pricing strategy and steady export demand; long-term offtake and spot flexibility maintained. * Hybrid renewable energy shift through two power purchase agreements; set to deliver cost and carbon savings by FY27. * Staggered commissioning of Zone IV projects in FY26 is expected to support multi-purpose manufacturing capabilities in FY27 and onwards. FY24-25 Full-Year Performance * Revenue Growth: 13% * EBITDA: Rs 1016 Cr, aligned with revised guidance * CAPEX: Rs 1372 Cr focused on growth, energy efficiency, and innovation Awards and Recognition - AIL earned a coveted spot in the prestigious S & P Global Sustainability Yearbook 2025 - Achieved significant recognition in environmental sustainability, securing Leadership Band "A" in CDP Climate Change and CDP Water Security for 2024 With a focus on operational excellence, margin recovery, and debt optimisation, AIL is positioned to enhance capital efficiency and execution momentum in FY26. About AIL Aarti Industries Limited (AIL) is one of the world's leading speciality chemical companies, combining process chemistry with scale-up engineering competence. The Company ranks globally 1st - 4th position for 75% of its portfolio and is a "Partner of Choice" for various Major Global & Domestic Customers. At the heart of AIL's operations is a dedication to sustainable development, seamlessly integrating environmental stewardship into its business model by leveraging cutting-edge technologies and a robust infrastructure to deliver solutions that balance economic growth with ecological responsibility. The Company's commitment to innovative and sustainable practices and immense care for its people and the planet defines its path to success.
