Aarti Industries Financial Breakdown: Revenue, Profit
Aarti Industries Ltd (NSE: AARTIIND, BSE: 524208) is one of India's leading speciality chemicals companies, and its September 2026 quarter results — announced on 30 October 2026 — mark a clear break from the margin squeeze of the last few years. Revenue jumped 73% year-on-year, volumes grew over 30%, and quarterly EBITDA hit a record high. This breakdown looks at the company's revenue and profit trend over the last five years, its balance sheet strength, key ratios, segment mix, shareholding and how it compares with peers. All figures below are consolidated unless stated otherwise, and every period is labelled so the numbers are not mixed up.
Business Overview: What Aarti Industries Does
Aarti Industries, established in 1984 and headquartered in Vapi, Gujarat, makes speciality chemicals and intermediates used by customers in pharmaceuticals, agrochemicals, dyes and pigments, polymers, fuel additives and other industries. The company reports a single reportable segment — Speciality Chemicals — and sells through a portfolio of over 100 products, supported by 16 manufacturing plants, four R&D centres and more than 250 scientists. It describes itself as the global number one in Di Chloro Benzene (DCB) and serves customers in over 60 countries. Its key value chains include Nitro Chloro Benzenes (NCB), DCB, Nitrotoluenes (NT) and MMA, and its end-use mix in FY26 tilted towards energy applications.
The business model matters for reading the financials: Aarti largely passes elevated raw-material prices through to customers. That protects absolute EBITDA but suppresses percentage margins when input prices spike — a pattern visible in both FY26 and Q2 FY27.
Q2 FY27 Results: Record Revenue and EBITDA
For the quarter ended 30 September 2026 (Q2 FY27), Aarti Industries reported its highest-ever quarterly revenue and EBITDA, driven by volumes up over 30% and higher export demand. The company said momentum in the NCB value chain was visible in both margin and volume improvement, and that it expects the momentum to continue and extend to other value chains such as DCB and NT.
| Q2 FY27 metric (consolidated) | Figure | Change vs Q2 FY26 |
|---|---|---|
| Revenue from operations | ₹3,887 crore | +73% YoY |
| EBITDA | ₹418 crore | +44% YoY (from ₹291 crore) |
| Profit after tax (PAT) | ₹169 crore | +60% YoY |
| Volume growth | Over 30% | — |
| EBITDA margin (calculated) | ~10.8% | Lower than Q2 FY26, as pass-through of higher input prices lifted the revenue base |
For the half year ended 30 September 2026 (H1 FY27), consolidated revenue was ₹6,513 crore, EBITDA was ₹802 crore and PAT was ₹324 crore. Note that the standalone Q2 FY27 PAT was higher, at ₹186 crore (up about 84% year-on-year) — the consolidated figure of ₹169 crore used throughout this article is the one that includes subsidiaries and joint ventures.
Revenue and Profit Trend: FY22 to FY26
The five-year trend tells the story of a chemical cycle. FY22 was a peak-profit year, helped by strong pricing. Profit then fell sharply in FY23 and FY24 as margins compressed, even though revenue held up. FY25 saw revenue growth return but profit fall further to ₹331 crore. FY26 brought a recovery in both revenue and profit, though profit remained far below the FY22 peak.
| Financial year | Revenue (₹ crore) | PAT (₹ crore) | PAT margin (calculated) |
|---|---|---|---|
| FY22 | 6,086 | 1,186 | 19.5% |
| FY23 | 6,619 | 545 | 8.2% |
| FY24 | 6,371 | 416 | 6.5% |
| FY25 | 7,269 | 331 | 4.6% |
| FY26 | 8,286 | 419 | 5.1% |
For FY26 specifically, the company reported consolidated total revenue of ₹9,018 crore (up 12% year-on-year) and EBITDA of ₹1,172 crore (up 15%), with net profit up 27% to ₹419 crore. Volume growth exceeded 30% in FY26, but margins stayed under pressure from competition and input-cost inflation. The revenue figure in the table above is operating revenue, while the ₹9,018 crore figure is the company's reported total revenue for FY26 — the two measures differ, so they should not be mixed in one series.
Reported EPS for FY26 was ₹11.66 per share (face value ₹5), up from ₹9.37 in FY25.
Profitability and Margins: Why Percentages Fell While Profits Recovered
- Operating leverage is weak in a pass-through model: when raw-material prices rise, revenue rises with them, but EBITDA in rupees grows more slowly — so the margin percentage falls even as absolute EBITDA rises. That is exactly what happened in Q2 FY27: record EBITDA of ₹418 crore, but a margin of only about 10.8%.
- FY22 remains the outlier: a PAT margin of 19.5% in FY22 collapsed to 4.6% by FY25. The FY26 recovery to 5.1% is modest, which is why the Q2 FY27 volume rebound matters more than any single quarter's margin print.
- Interest costs have climbed: interest expense rose from ₹102 crore in FY22 to ₹340 crore in FY26 on higher debt and working capital, which has weighed on profit before tax even as operating profit recovered.
Balance Sheet Strength and Cash Flow
FY26 balance-sheet indicators show a company funding growth with more working capital. The debt-to-equity ratio rose to 0.74 in FY26 from 0.62 in FY25, which the company attributed to higher working-capital needs as raw-material prices rose. Net fixed assets stood at ₹6,399 crore at the end of FY26, marginally higher than ₹6,377 crore in FY25.
Cash flow is the softer spot. Operating cash flow fell to ₹780.80 crore in FY26 from ₹1,237.62 crore in FY25, while investing outflow was ₹1,142.10 crore — consistent with a company in an expansion phase, but worth watching alongside the rising debt-to-equity ratio. The capital-raise approval below is directly relevant here.
- Debt-to-equity (FY26): 0.74, up from 0.62 in FY25
- Net fixed assets (FY26): ₹6,399 crore
- Operating cash flow (FY26): ₹780.80 crore, down from ₹1,237.62 crore in FY25
- Investing outflow (FY26): ₹1,142.10 crore
Key Ratios at a Glance
| Ratio / metric | Latest figure | Period / basis |
|---|---|---|
| Return on equity (ROE) | ~7.0% | FY26 |
| Return on capital employed (ROCE) | ~7% | Trailing twelve months |
| Debt-to-equity | 0.74 | FY26, up from 0.62 in FY25 |
| Net profit margin | 5.1% | FY26 (calculated on operating revenue) |
| EBITDA (FY26) | ₹1,172 crore | FY26, up 15% YoY |
| EBITDA margin (Q2 FY27) | ~10.8% | Q2 FY27 (calculated) |
| EPS | ₹11.66 | FY26, reported |
| Dividend yield (TTM) | ~0.23% | As of 30 October 2026 |
Returns on equity and capital remain well below the FY22 peak, when return on net worth was above 26%. The recovery in volumes in FY26 and Q2 FY27 has not yet translated into a return to those return ratios — that gap is the central question for the next few quarters.
Segment and End-Use Split
Aarti reports only one segment, Speciality Chemicals, so there is no segment-profit table in its filings. The useful split is by end-use application, as disclosed with the FY26 results:
| End-use application | Share of FY26 revenue | Note |
|---|---|---|
| Energy applications | 43% | Up from 36% in FY25, helped by blending economics and expanded capacities in the US and EMEA |
| Agrochemicals | 18% | Share stable, but margins stayed under pressure |
| Other applications (pharma, dyes, pigments, polymers and others) | 39% (balance) | Balance of revenue across the remaining end uses |
The rising energy share is a double-edged sword: it is driving the current volume recovery, but it also concentrates growth in one demand pocket, where blending economics can swing with fuel markets.
Shareholding Pattern (September 2026)
| Shareholder category | Shareholding (Sep 2026) |
|---|---|
| Promoters | 41.82% |
| Foreign institutional investors (FII) | 6.96% |
| Domestic institutional investors (DII) | 20.89% (of which mutual funds 12.00%) |
| Retail and others | 30.32% |
Promoter holding has eased slightly from 42.18% in September 2025 to 41.82% in September 2026, while domestic institutions have increased their stake — mutual-fund holding rose from 10.20% in December 2025 to 12.00% in September 2026. Reported pledged promoter holding was 3.57% in September 2026.
Dividend History
Aarti Industries is a modest dividend payer. Its latest dividend was a final dividend of ₹1.00 per share announced on 4 May 2026, with an ex-date of 11 September 2026 and a record date of 14 September 2026. The trailing twelve-month dividend yield was about 0.23% as of 30 October 2026. No dividend was declared with the Q2 FY27 results announcement.
Peer Comparison: Speciality Chemicals
Peer market figures below are as of the 30 October 2026 close and are shown for context only — they move daily and are not a valuation call.
| Company | Market cap (₹ crore, approx.) | P/E ratio |
|---|---|---|
| Aarti Industries | 16,040 | 30.2 |
| Deepak Nitrite | 20,153 | 25.7 |
| SRF | 69,807 | 30.6 |
| Navin Fluorine International | 42,556 | 53.9 |
On this snapshot, Aarti trades broadly in line with SRF on earnings multiples and below Navin Fluorine, while Deepak Nitrite is cheaper on the same measure. The more important peer contrast is profitability: Aarti's FY26 ROE of about 7% lags the mid-teens returns reported for several peers, which is the gap the current volume recovery needs to close.
Recent Developments to Watch
- ₹1,000 crore capital raise approved: shareholders approved a proposal on 31 October 2026 to raise up to ₹1,000 crore through various equity instruments, aimed at strengthening the company's financial foundation.
- ₹1,500 crore supply agreement: on 13 October 2026, Aarti signed a manufacturing and supply agreement with a global speciality chemicals company spanning more than 10 years, with cumulative revenue potential of about ₹1,500 crore. Commercial operations at a proposed dedicated facility are targeted for FY29.
- Zone IV commissioning: Phase I of Zone IV was commissioned in September 2026, with the Calcium Chloride facility and part of the Multipurpose Plant starting operations; further capacities are scheduled for Q3–Q4 FY27.
- Fuel additives expansion: capacity expanded from 290 KTPA to 360 KTPA, supporting higher volumes in Q2 FY27.
- Joint ventures: the Augene Chemicals JV is progressing towards commercial production, while the Circularity JV is targeted for commissioning in H2 FY27.
- ESG recognition: Aarti achieved a Platinum rating from EcoVadis in June 2026, placing it in the top 1% of global chemical companies assessed.
Key Risks
- Margin pressure persists: competition and input-cost inflation have kept margins far below FY22 levels, and the pass-through model means percentage margins stay suppressed while input prices are high.
- Rising leverage and working capital: debt-to-equity rose to 0.74 in FY26 and operating cash flow fell, so execution of the expansion programme and working-capital discipline matter.
- Cyclical end markets: agrochemical margins are already under pressure, and energy-application demand depends on blending economics that can change.
- Execution risk on new capacity: Zone IV, the new dedicated facility for the October 2026 supply agreement, and the two JVs all need to ramp on schedule to convert today's volume growth into profit growth.
- Export dependence: higher export demand drove Q2 FY27 growth, which also leaves revenue exposed to global demand and trade conditions.
FAQs
What is Aarti Industries' revenue in Q2 FY27?
Consolidated revenue from operations was ₹3,887 crore in Q2 FY27 (quarter ended 30 September 2026), up 73% year-on-year.
What was Aarti Industries' profit in Q2 FY27?
Consolidated PAT was ₹169 crore, up 60% year-on-year; EBITDA was a record ₹418 crore, up 44%.
What was Aarti Industries' FY26 revenue and profit?
FY26 total revenue was ₹9,018 crore (up 12%), EBITDA was ₹1,172 crore (up 15%) and PAT was ₹419 crore (up 27%). Operating revenue on the five-year series in this article was ₹8,286 crore for FY26.
Who are Aarti Industries' promoters and how much do they own?
The promoter group held 41.82% as of September 2026, with domestic institutions at 20.89% and foreign institutions at 6.96%.
Does Aarti Industries pay a dividend?
Yes, but modestly. The latest dividend was a final ₹1.00 per share announced in May 2026, giving a trailing yield of about 0.23%.
Conclusion
Aarti Industries' Q2 FY27 results show a business regaining volume momentum after three difficult years: revenue up 73%, record EBITDA, and profit up 60%, on top of a FY26 recovery in which volumes grew over 30%. The open question is not demand — volumes are clearly back — but conversion: margins, return ratios and cash flow are still well below the FY22 peak, debt-to-equity has risen, and the next leg depends on Zone IV, the new long-term supply contract and the joint ventures ramping on time. The approved ₹1,000 crore capital raise gives the company room to fund that expansion, but investors tracking this stock should watch EBITDA margins, operating cash flow and the debt ratio over the next two quarters more closely than headline revenue growth.
Disclaimer: This article is for educational purposes only and is not investment advice. Figures are sourced from the company's results announcements, filings and financial data portals, and may be revised by the company. Please verify figures from the original filings before making any investment decision.
Sources: Aarti Industries Q2 FY27 results press release (30 October 2026); Aarti Industries FY26 results coverage; ValueResearch/Dhan financial compilations; Upstox/Rediff shareholding data (September 2026); peer market data as of 30 October 2026 close.