PRNewswire
Mumbai (Maharashtra) [India], November 7: Aarti Industries Limited (AIL), a leading global speciality chemicals company, today announced its consolidated financial results for the quarter and half year ended September 30, 2025. The company’s unaudited results were approved by the Board of Directors at its meeting held earlier today.
Q2 FY26 unfolded against a complex global backdrop, marked by new U.S. tariffs on select Indian chemical exports and continued geopolitical uncertainty. Despite these headwinds, AIL delivered sequential growth and maintained its strategic momentum through proactive market diversification, innovation investments and disciplined execution across key projects. Building on its integrated manufacturing strengths and diversified portfolio, the company continues to reinforce its position as Global Partner of Choice in Speciality Chemicals.
Financial Highlights (Q2 FY26)
– Revenue: ₹ 2250 crore, up 21% QoQ, led by improved volumes across key product categories
– EBITDA: ₹ 292 crore, up 36% QoQ, reflecting higher capacity utilisation and cost optimisation
– PAT: ₹ 105 crore, up 150 % QoQ, driven by better operating leverage and after considering exceptional items (as detailed in the financials declared earlier).
– CAPEX: ₹ 267 crore for the quarter; FY26 outlay expected below ₹ 1,000 crore, reflecting continued capital discipline
Commenting on the performance, Mr Suyog Kotecha, Executive Director and Chief Executive Officer, said:
“This quarter reflected the inherent resilience and agility of our diversified portfolio. Despite US tariff headwinds, our strong customer engagement and proactive regional rebalancing helped us maintain the momentum. We are expanding our footprint in Europe, the Middle East, and Africa while optimising our US strategy to ensure long-term competitiveness. With key capacity additions nearing completion, Aarti Industries is well-positioned to capitalise on the next phase of global recovery. Our focus remains clear: to de-risk operations, accelerate innovation in high-growth chemistries, and maintain strong financial discipline. As trade flows stabilise and demand revives, we anticipate steady margin expansion across our portfolio.
Operational and Strategic Highlights
Energy: The gasoline-naphtha crack remained strong in Q2, supporting blending economics. US tariffs weighed on volumes and margins, with renegotiations underway to maintain demand. Strategic efforts continue to expand the MMA customer base and geographic reach amid rising competition from Indian and Chinese players.
Non-Energy: Agrochemical volumes are recovering in select products, though margins remain under pressure. Dyes & pigments show muted demand growth, while US tariffs impacted Q2 polymer volumes, with pricing pressure continuing. India’s domestic pharma market is steady, but margins in fluoro products face challenges from Chinese competition. A potential India-US trade deal could support a recovery in polymer volumes.
Tariff Management and Market Diversification:
Following the US tariff imposition on select Indian chemical exports in August 2025, AIL continues to diversify its export base toward Europe, Africa, and the Middle East.
Capacity Expansion Zone IV Project:
The Zone IV Project continues to progress as planned. A new Multipurpose Plant (MPP) will be commissioned in Q4 FY26, enhancing product development flexibility. In addition, the Calcium Chloride facility is expected to be commissioned in the coming quarter.
Forward Integration PEDA Project:
AIL is ready with a new PEDA (2-Phenyl Ethyl Diethyl Aniline) project with a capacity of 4,000 TPA, to be commissioned at its existing Ethylation unit at Dahej SEZ, by Q4 FY26. This project represents forward integration of AIL’s already commercial product, 2,6 Diethyl Aniline, providing a strong backward integration advantage. With PEDA’s downstream application witnessing steady demand growth, AIL is well placed to become a key domestic supplier, boosting India’s agrochemical self-reliance.
Strategic Partnerships:
During the quarter, AIL entered a long-term strategic agreement with DCM Shriram, securing a chlorine supply of 200 tonnes per day for the upcoming downstream facility at Zone IV, supplementing the existing 150 tonnes per day.
Sustainability and Waste Management Milestone
AIL has become one of India’s few chemical manufacturers to achieve multi-site ZWL certification, a significant sustainability milestone during the quarter, with Zone I, Zone II and Zone III obtaining Zero Waste to Landfill (ZWL) certification, underscoring the Company’s commitment to responsible waste management and circular manufacturing. Achieving ZWL certification validates AIL’s long-standing commitment to sustainability and its proactive approach toward minimising environmental impact.
Outlook
As raw-material costs stabilise and logistics normalise, AIL expects a steady improvement in operating margins through FY27, supported by new capacity ramp-ups and a diversified global mix. The Company continues to maintain a healthy balance sheet and disciplined capital allocation, ensuring a strong foundation for long-term value creation.
About AIL
Aarti Industries Limited (AIL) is one of the world’s leading speciality chemical companies, combining process chemistry with scale-up engineering competence. The Company ranks globally 1st – 4th position for 75% of its portfolio and is a ‘Partner of Choice’ for various Major Global & Domestic Customers. At the heart of AIL’s operations is a dedication to sustainable development, seamlessly integrating environmental stewardship into its business model through cutting-edge technologies and robust infrastructure to deliver solutions that balance economic growth with ecological responsibility. The Company’s commitment to innovative and sustainable practices and immense care for its people and the planet defines its path to success.
Website – www.aarti-industries.com/
LinkedIn- https://www.linkedin.com/company/aarti-industries/
For more information, please contact:
Media Relations:
Puja Raina Mahaldar
Corporate Communications
puja.raina@aarti-industries.com
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