Aarti Industries Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Aarti Industries Ltd filed with BSE on 07 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Aarti Industries reported Q1 FY27 revenue of Rs. 2,627 crore, up 41% year-on-year, EBITDA of Rs. 385 crore, up 79%, and profit after tax of Rs. 155 crore, up 260%, driven partly by inventory and forex gains alongside higher input prices passed through to customers. Management said the West Asia conflict cut the region's share of revenue from about 15% to 2% and reduced energy segment volumes, while Zone IV project blocks faced a 3-6 month delay due to labour shortages and execution issues. Management described mixed demand across segments, with polymers and dyes and pigments facing headwinds while pharma remained stable, and reiterated FY27 capex guidance of Rs. 700-800 crore.
Numbers mentioned
Revenue: Rs. 2,627 crore (Q1 FY27)
p. 3
“Revenue of Rs. 2,627 crore, representing a growth of 41% Y-o-Y, which was primarily driven by higher input prices passed on to the customers.”
Suyog Kotecha, page 3 of the filed PDF · View the filing
EBITDA: Rs. 385 crore (Q1 FY27)
p. 3
“EBITDA of Rs. 385 crore, growing 79% Y-o-Y, driven by a combination of product mix optimisation, monetisation of low-cost inventories.”
Suyog Kotecha, page 3 of the filed PDF · View the filing
Profit After Tax: Rs. 155 crore (Q1 FY27)
p. 3
“Profit After Tax of Rs. 155 crore, registering a growth of 260% YoY.”
Suyog Kotecha, page 3 of the filed PDF · View the filing
West Asia share of revenues: declined from about 15% to 2% (Q1 FY27)
p. 2
“The region’s share in our revenues declined from about 15% to 2% in this quarter.”
Suyog Kotecha, page 2 of the filed PDF · View the filing
Fuel additives capacity: 360 KTPA, from 290 KTPA
p. 3
“We have completed our key fuel additives capacity expansion to 360 KTPA, from 290 KTPA, providing additional flexibility to serve newer markets with newer products as demand evolves.”
Suyog Kotecha, page 3 of the filed PDF · View the filing
FY27 CAPEX deployed in Q1: Rs 180 crores (Q1 FY27)
p. 4
“In line with our earlier guidance, FY27 CAPEX remains on track within the Rs. 700 to 800 crore range, with about Rs 180 crores already deployed in Q1FY27.”
Suyog Kotecha, page 4 of the filed PDF · View the filing
EcoVadis Platinum Rating score: 87 out of 100
p. 4
“We were pleased to achieve the EcoVadis Platinum Rating 2026 during the quarter with a score of 87 out of 100, placing Aarti Industries among the top 1% of companies globally for sustainability performance.”
Suyog Kotecha, page 4 of the filed PDF · View the filing
FX and inventory gains: INR 50 crore to INR 60 crores (Q1 FY27)
p. 5
“The FX and inventory gains are difficult to estimate correctly, but I think the impact could be anywhere in the range of INR 50 crore to INR 60 crores.”
Suyog Kotecha, page 5 of the filed PDF · View the filing
Energy business volume decline: down 17% quarter-on-quarter (Q1 FY27)
p. 8
“So volumes on energy business were down 17% on a quarter-on-quarter basis and on nonenergy business, they were down by 7% on a quarter-on-quarter basis.”
Suyog Kotecha, page 8 of the filed PDF · View the filing
Overall organization volume decline: roughly 12% down (Q1 FY27)
p. 8
“On an overall organization level, they were roughly 12% down on quarter-on-quarter basis.”
Suyog Kotecha, page 8 of the filed PDF · View the filing
Exports share of revenue: 59% (Q1 FY27)
p. 8
“59% of revenue actually came from exports and we are seeing good traction in exports.”
Suyog Kotecha, page 8 of the filed PDF · View the filing
Gasoline naphtha cracks: $15 to $18 per barrel (Q1 FY27)
p. 10
“Overall, at the gasoline naphtha level, the cracks have averaged in the range of $15 to $18 per barrel, which are pretty healthy and this is a global market.”
Suyog Kotecha, page 10 of the filed PDF · View the filing
Rupee range during quarter: INR92 to INR97 (Q1 FY27)
p. 17
“We saw rupee ranging from a level of INR92 to INR97 in the quarter and hence wherever the opportunities are there, we will look to capitalize on those.”
Chetan Gandhi, page 17 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
FY27 CAPEX — Rs. 700 to 800 crore · FY27
stated firmly by Suyog Kotecha
p. 4
“In line with our earlier guidance, FY27 CAPEX remains on track within the Rs. 700 to 800 crore range, with about Rs 180 crores already deployed in Q1FY27.”
Suyog Kotecha, page 4 of the filed PDF · View the filing
Zone 4 project commissioning — FY27, ramp-up over FY28 and FY29
stated firmly by Suyog Kotecha
p. 4
“The project is being commissioned in a phased manner this year, FY27, with ramp-up expected over FY28 and FY29.”
Suyog Kotecha, page 4 of the filed PDF · View the filing
Augene JV commissioning — Q2FY27
stated firmly by Suyog Kotecha
p. 4
“this joint venture remains firmly on track for commissioning in Q2FY27.”
Suyog Kotecha, page 4 of the filed PDF · View the filing
Aarti Circularity (Re Sustainability) commissioning — second half of FY27
stated firmly by Suyog Kotecha
p. 4
“our plastic recycling initiative with Re Sustainability through Aarti Circularity, that is slated for commissioning in the second half of FY27 which utilizes advanced recycling technologies for hard-to-recycle waste streams.”
Suyog Kotecha, page 4 of the filed PDF · View the filing
Augene JV steady-state revenue — INR300 crore to INR400 crore
stated conditionally by Suyog Kotecha
p. 7
“We had projected INR300 crore to INR400 crore. I think we will maintain that range for the joint venture to start with.”
Suyog Kotecha, page 7 of the filed PDF · View the filing
DCB capacity debottlenecking — 140 KTPA
stated as an aspiration by Suyog Kotecha
p. 4
“We are also looking to debottleneck our DCB capacity to 140 KTPA backed by volume increase supported by PDCB and downstream demand.”
Suyog Kotecha, page 4 of the filed PDF · View the filing
Fuel additives capacity utilization — high levels of utilization · this quarter
stated as an aspiration by Suyog Kotecha
p. 13
“On the capacity utilization for fuel additives, I think we are ramping up the capacity as we speak. And we feel we might be able to reach high levels of utilization in this quarter itself.”
Suyog Kotecha, page 13 of the filed PDF · View the filing
Number of new products from Zone IV by FY28 — 25 to 30 products · FY28
stated as an aspiration by Suyog Kotecha
p. 11
“I think by FY28, we are talking about anywhere in the range of 25 to 30 products. Within this year, we are looking at anywhere between 5 to 10 products.”
Suyog Kotecha, page 11 of the filed PDF · View the filing
SABIC-linked backward integration project commissioning — September to October 2027
stated firmly by Suyog Kotecha
p. 18
“The commissioning of that project is expected around September to October 2027 time frame.”
Suyog Kotecha, page 18 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said JVs remain on track but the five chemistry blocks in Zone IV are seeing delays that could slow ramp-up versus original targets.
Answered by Suyog Kotecha
Asked by Rohit Nagraj: Given the Zone IV delay, how confident is management in reaching the lower end of FY28 guidance?
p. 5
“The other blocks, there are 5 different chemistry blocks in Zone IV, is where we are seeing the delay and which might lead to a bit slower ramp-up compared to our original anticipation that we had given in our target aspirations for FY27, '28.”
Suyog Kotecha, page 5 of the filed PDF · View the filing
Management said as volume recovery happens and pricing stabilizes, the underlying business performance and true EBITDA trajectory should become visible.
Answered by Suyog Kotecha
Asked by Aditya Khetan: How does management see the path to the INR1,800 crore EBITDA target for FY28 given the base business appears lower after stripping inventory and forex gains?
p. 8
“In the coming quarters, as the volume recovery happens and potentially, if there is a regime where the pricing is maintained throughout the quarter without significant change, everyone should be able to see the underlying business performance in terms of what is the true potential of the existing asset.”
Suyog Kotecha, page 8 of the filed PDF · View the filing
Management confirmed the Augene JV's EBITDA was included in the guidance, but not RESL.
Answered by Suyog Kotecha
Asked by Abhijit Akella: Does the INR1,800 crore EBITDA guidance include the Augene and RESL JVs?
p. 13
“So INR1,800 crore guidance included the EBITDA, especially for Augene JV because we expected it to start contributing by that time frame.”
Suyog Kotecha, page 13 of the filed PDF · View the filing
Management acknowledged the risk exists in a crude-linked business but said they manage it through quick pass-through and hedging strategies.
Answered by Suyog Kotecha
Asked by Sanjesh Jain: Are there risks of customer destocking or inventory losses if crude and raw material prices fall sharply?
p. 11
“We have put in strategies in place, including a combination of forward booking of customer orders, including some hedging strategies to minimize that loss. But that risk will always remain and we actively manage it.”
Suyog Kotecha, page 11 of the filed PDF · View the filing
Management said volume growth is confident but margin and inventory outcomes remain dependent on how the West Asia situation and pricing volatility evolve.
Answered by Suyog Kotecha
Asked by Tushar Raghatate: Is the current ~16% EBITDA margin run-rate the new normal for the business?
p. 15
“So volumes growth, we are confident. On inventory/margins, we remain a little bit dependent on the macro situation.”
Suyog Kotecha, page 15 of the filed PDF · View the filing
Chetan Gandhi explained the gain came from rupee volatility and timing of import/export transactions, and said it should be treated as part of operating profit though not guaranteed to recur.
Answered by Chetan Gandhi
Asked by Ojas Sawant: What drove the significantly higher forex gain this quarter and how should it be viewed going forward?
p. 17
“I would assume that the better way to look at it is to consider this as a part of operating profit only.”
Chetan Gandhi, page 17 of the filed PDF · View the filing
Risks flagged
West Asia geopolitical conflict disrupting supply chains and exports
p. 2
“The West Asia crisis had a direct impact on our Energy business, temporarily halting exports to the region.”
Suyog Kotecha, page 2 of the filed PDF · View the filing
Elevated raw material prices impacting purchasing power and volumes in certain segments
p. 3
“High prices impacted the purchasing power in specific end applications such as dyes, selected agrochemicals and polymer compounds.”
Suyog Kotecha, page 3 of the filed PDF · View the filing
Labour shortage and execution delays at Zone IV project
p. 7
“It is a pure product execution challenge, which we faced, primarily started around March, April’s time frame, where there was a huge labor shortage driven by LPG issue and then consequent elections & monsoon which triggered a few delays.”
Suyog Kotecha, page 7 of the filed PDF · View the filing
Volatility in crude-linked raw material and product pricing affecting inventory and margins
p. 11
“So look, I think that risk always remains in a business when you are operating in crudelinked raw material and the product environment, I think that risk will always remain.”
Suyog Kotecha, page 11 of the filed PDF · View the filing
Structural technological disadvantage weakening margins in the PDA chain
p. 11
“PDA chain is one where we structurally remain weak because of our technological disadvantage.”
Suyog Kotecha, page 11 of the filed PDF · View the filing
Seasonal winter weakness expected in fuel additives demand
p. 14
“So in general, for a fuel additive as a basket and as a segment, yes, the winter seasons are a bit weak.”
Suyog Kotecha, page 14 of the filed PDF · View the filing
Isomer imbalance suppressing margins in the NT chain
p. 11
“NT remains suppressed for a while, and it is linked to an isomer imbalance that we have faced over the course of last 2, 3 years.”
Suyog Kotecha, page 11 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.