Aarti Industries Q2 PAT rises 59% YoY to Rs 169 crore
Profit before tax (PBT) rose 119.35% YoY to Rs 204 crore in Q2 FY27 as compared with Rs 93 crore in Q2 FY26. EBITDA increased 43.64% year on year to Rs 418 crore in Q2 FY27 from Rs 291 crore in Q2 FY26, marking the highest-ever quarterly EBITDA for the company.
The company recorded volume growth of over 30% during the quarter. Higher export demand and effective pass-through of elevated raw material costs supported revenue growth. The company?s robust pass-through model helped protect absolute EBITDA, although EBITDA margins remained suppressed.
During the quarter, Aarti Industries commissioned Phase I of its Zone IV project in September 2026. The Calcium Chloride (CaCl2) facility and part of the Multipurpose Plant (MPP) commenced operations, with activities focused on stabilisation, customer qualifications and progressive commercialisation. Further capacities are scheduled for commissioning during Q3-Q4 FY27.
The company entered into a manufacturing and supply agreement with a global speciality chemicals company for a period of more than 10 years, with cumulative revenue potential of approximately Rs 1,500 crore. Commercial operations at the proposed dedicated facility are targeted for FY29. The Augene Chemicals joint venture is progressing towards commercial production, while the Circularity joint venture is targeted for commissioning in H2 FY27.
During the quarter, the company expanded its fuel additives capacity from 290 KTPA to 360 KTPA. It continued to focus on cost optimisation, yield improvement, energy efficiency and digital-led operational improvements across its manufacturing value chains. Aarti Research and Technology Centre (ARTC), the company's R&D arm, received the Sword of Honour 2026 from the British Safety Council after securing a Five Star rating in health and safety management.
Looking ahead, Aarti Industries expects to sustain its growth momentum, supported by export demand, customer engagements and commercialisation of new capacities. The company remains focused on improving asset utilisation, operating efficiency, working capital management and cash generation.
Managing Director and CEO Suyog Kotecha said the company's efforts over the past two years to strengthen customer partnerships, expand market participation and build manufacturing capabilities are driving stronger business momentum. He added that evolving global supply chains, China's industry capacity rationalisation initiatives and India's expanding free trade agreements could create additional growth opportunities for the company.
Aarti Industries, the flagship company of the Aarti Group, manufactures organic and inorganic chemicals at its facilities in Vapi, Jhagadia, Dahej and Kutch in Gujarat, and Tarapur in Maharashtra. The company has a strong market position in the NCB-based specialty chemicals segment.
The scrip declined 1.53% to settled at Rs 435.45 on the BSE.
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