Aaron Industries Limited has informed the Exchange regarding a press release dated August 13, 2025, titled "Unaudited Standalone Financial Results of the Company for the Quarter ended June 30, 2025".
AARON · price
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Aaron Industries, a Surat-based maker of elevator products and stainless steel sheets, reported Q1FY26 revenue of Rs. 19.24 crore, up 11.93% year-on-year but down 20.21% from the previous quarter. EBITDA rose 10.42% YoY to Rs. 3.70 crore, but profit after tax fell sharply to Rs. 1.06 crore, down 43.32% YoY and 61.50% QoQ, with PAT margin contracting to 5.51% from 10.88% a year ago. The margin pressure is attributed to higher depreciation (up 113.64% YoY) and interest costs (up 126.67% YoY) following the commissioning of the company's third manufacturing unit in April 2025. Management described the dip as a temporary, expected outcome of the expansion cycle and expects improved margins once the new unit ramps up production.
Short-term shareholders may react negatively to the steep fall in quarterly profit and margins, but the YoY revenue growth and the operationalization of expanded capacity signal a longer-term growth story. The next two to three quarters will be watched closely to see if the new unit translates the higher fixed costs into stronger revenue and margin recovery.