PFA Investor Presentation for Q4FY25
Awaiting price reaction for this filing.
Aarti Industries reported FY25 revenue growth of 15% YoY while PAT declined 20% YoY. Q4 FY25 saw revenue up 13% YoY and 9% QoQ, with a strong 109% QoQ rebound in EBITDA though still down 27% YoY. The company completed key capacity expansions including Nitro-toluene (45 kT), Ethylation (30 kT), MMA (200 kT), and Halex debottlenecking, while NCB and ESA showed strong utilization at 79% and 80% respectively. Management guided to a 3-year EBITDA target of ₹1,800-2,200 Cr (vs FY25's ~₹1,000-1,050 Cr), supported by ₹300-450 Cr of cost optimisation, operating leverage, and FY26 capex of ~₹1,000 Cr. Two new JVs were announced — one in plastic recycling and one in specialty chemicals — alongside ESG upgrades including CDP Leadership band and Ecovadis Gold.
The 3-year EBITDA growth target of nearly 2x signals confidence in margin recovery driven by cost savings, capacity ramp-ups, and operating leverage, which could be positive for the stock. However, near-term pricing pressure in agrochemicals and energy segments, along with a 20% FY25 PAT decline, may keep near-term sentiment cautious.