AARTI INDUSTRIES LTD

Manufactures and exports specialty chemicals and pharmaceutical intermediates from Indian plants to customers across the US, Europe, Africa, the Middle East, and India. Two segments earn revenue: Specialty Chemicals (~81.5% of segment revenue disclosed) covering nitration and sulfonation chemistry including the nitro-chlorobenzene (NCB) value chain, fuel additives, agrochemical intermediates and methyl methacrylate (MMA); and Pharmaceuticals (~18.5%) covering APIs and intermediates for drug formulators. Fuel additives capacity was raised to 360 KTPA from 290 KTPA in Q1 FY27, with portfolio diversification beyond MMA across geographies. A $150 million multi-year agrochemical supply agreement runs through March 2030, the Ojin JV is commissioning in Q2 FY27 with a Rs 300-400 crore steady-state revenue target, and the Zone IV expansion is delayed 3-6 months due to labour and West Asia-related issues. FY27 capex is guided at Rs 700-800 crore against Rs 1,125 crore in FY26. Raw materials (benzene, sulphur, aniline, toluene, methanol) made up 63.4% of FY26 revenue, rising over 60% during the year, while net debt stood near Rs 4,300 crore (~3.6x EBITDA). Middle East revenue exposure is ~9-10% of revenue, which fell to ~2% in Q1 FY27 as volumes were redirected to other regions.