Transcript of Q4 FY25 Earnings Conference Call
Awaiting price reaction for this filing.
Aarti Industries reported FY25 revenue of Rs 8,046 crore (up 15% YoY) and EBITDA of Rs 1,016 crore (up 3%), with PAT at Rs 331 crore due to higher depreciation and interest costs from new project commissioning. Q4 FY25 revenue grew 9% QoQ to Rs 2,214 crore, EBITDA rose 13% to Rs 266 crore, and PAT came in at Rs 96 crore, driven by volume recovery across end applications. The Board recommended a final dividend of Rs 1 per share. Management maintained its three-year EBITDA guidance of Rs 1,800–2,200 crore for FY28, with FY26 capex guided at Rs 950–1,000 crore (vs Rs 1,372 crore in FY25). Net debt, currently around Rs 3,500 crore, is expected to decline by Rs 200–300 crore in FY26. The US tariff impact is described as mixed—positive for products like MPD that compete with China, but a near-term headwind for MMA. Cost optimization and Zone-4 phased commissioning will drive FY26 growth, with the company focusing on volume-led expansion rather than margin recovery.
Shareholders get clarity on a steady, volume-driven growth trajectory and reaffirmed long-term EBITDA targets, but management's caution on margins and refusal to give FY26 specific guidance may temper near-term expectations. Lower capex intensity and expected debt reduction should support balance sheet strength, while dividend continuity signals stable shareholder returns.