Aarti Industries Limited has informed the Exchange about Investor Presentation
AARTIIND · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Aarti Industries reported a weak Q1 FY26 with revenue declining 7% YoY and 16% QoQ, EBITDA falling 31% YoY and 19% QoQ, and profit after tax dropping 69% YoY and 55% QoY. The decline was driven by a 15-20% drop in key raw material prices (Benzene and Aniline) causing an inventory valuation loss of about ₹30 crore, logistics disruptions from Middle East geopolitical issues that postponed bulk shipments, and impact on Kutch operations from the India-Pakistan conflict. MMA capacity was expanded to 260 kTPA. Management reiterated a 3-year consolidated EBITDA target of ₹1,800-2,200 crore with Debt/EBITDA below 2.5x and ROCE above 15%, supported by Zone-4 commissioning from H2 FY26, cost optimization, and volume ramp-up. FY26 capex is estimated at around ₹1,000 crore.
Q1 results were significantly below expectations due to one-time inventory losses and operational disruptions, which may pressure the stock in the short term. However, the reaffirmed 3-year EBITDA growth roadmap and capacity expansion plans suggest medium-term recovery potential, though margin pressure from competition and pricing overhang remains a key concern.