Aarti Surfactants Limited has informed the Exchange regarding Outcome of Board Meeting held on May 12, 2025.
AARTISURF · price
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Awaiting price reaction for this filing.
Aarti Surfactants reported FY25 standalone revenue of Rs. 65,908.54 lakhs, up about 11.7% from Rs. 58,985.74 lakhs in FY24, helped by a strong Q4 (revenue up ~27% YoY to Rs. 20,205.41 lakhs). However, net profit for FY25 fell roughly 33% to Rs. 1,499 lakhs from Rs. 2,226.69 lakhs, with operating margin compressing sharply to 7.53% from 10.68% as input costs surged. The results include one-time items — Rs. 420.25 lakhs exceptional gain (insurance proceeds from the 2022 fire), Rs. 194 lakhs loss-of-profit insurance in other income, and a Rs. 634 lakhs state government industry promotion grant in operating revenue. The Board recommended a Rs. 1 (10%) final dividend, re-appointed PHS & Associates as cost auditor for FY26, and noted the withdrawal of the promoter re-classification application for Mrs. Prasadi Yogesh Banatwala, who wishes to remain in the promoter group. The statutory auditor (Gokhale & Sathe) issued an unmodified opinion, and CARE Ratings upgraded the company's long-term rating from BBB+ to A- (Stable).
Positive near-term sentiment from the rating upgrade and revenue growth, but the sharp FY25 profit decline and margin compression on the core business will likely weigh on the stock. Excluding one-time items (insurance and government grant), underlying earnings look weak, and shareholders should focus on the core operating margin trend going forward.