Aether Industries Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Aether Industries Ltd filed with BSE on 21 May 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
Aether Industries reported FY26 consolidated revenue of Rs 11,601 million, up 38% year-on-year, with EBITDA growing 53% to Rs 3,547 million and PAT rising 39% to Rs 2,195 million. Management attributed the sequential decline in Q4 versus Q3 to one-off items including a FLOP claim income booked in Q3, a fire-related inventory write-off, and year-end provisions in Q4. Management described large-scale manufacturing pricing as having risen sharply following supply disruptions linked to the conflict, and outlined progress on Site 5 commissioning, R&D capacity expansion, and new customer additions.
Numbers mentioned
Consolidated revenue from operations: INR11,601 million (FY26)
p. 8
“The total consolidated revenue from operations of the company stood at INR11,601 million in financial year '26 as against INR8,406 million in financial year '25.”
Faiz Nagariya, page 8 of the filed PDF · View the filing
EBITDA: INR3,547 million (FY26)
p. 8
“This has resulted in EBITDA of INR3,547 million in financial year '26 as against INR2,312 million in financial year '25, which is an increase of 53% in the comparing financial years.”
Faiz Nagariya, page 8 of the filed PDF · View the filing
EBITDA margin: 31% (FY26)
p. 8
“EBITDA margin stood at 31% in financial year '26 as against 28% in financial year '25.”
Faiz Nagariya, page 8 of the filed PDF · View the filing
PAT: INR2,195 million (FY26)
p. 8
“The PAT amounted to INR2,195 million in financial year '26 as against INR1,584 million in financial year '25, which is an increase of 39% year-on-year.”
Faiz Nagariya, page 8 of the filed PDF · View the filing
PAT margin: 19% (FY26)
p. 8
“The PAT margin stood at 19% in financial year '26 as against 18% in financial year '25.”
Faiz Nagariya, page 8 of the filed PDF · View the filing
Consolidated revenue from operations: INR3,051 million (Q4 FY26)
p. 8
“The consolidated revenue from operations of the company stood at INR3,051 million in Q4 of financial year '26 as against INR3,188 million in Q3 of financial year '26.”
Faiz Nagariya, page 8 of the filed PDF · View the filing
EBITDA: INR814 million (Q4 FY26)
p. 8
“This has resulted in EBITDA of INR814 million in Q4 of FY26 as against INR1,099 million in Q3 of financial year '26.”
Faiz Nagariya, page 8 of the filed PDF · View the filing
PAT: INR540 million (Q4 FY26)
p. 8
“And the PAT has been INR540 million in Q4 of FY26 as against INR645 million in Q3.”
Faiz Nagariya, page 8 of the filed PDF · View the filing
Working capital cycle: 179 days (as on March 31, 2026)
p. 8
“We have been able to reduce the overall working capital cycle to 179 days as on 31st March '26 from 194 days as of 31st March '25.”
Faiz Nagariya, page 8 of the filed PDF · View the filing
Cash flow from operations: INR1,424 million (FY26)
p. 8
“Cash flows from operations have increased to INR1,424 million in financial year '26 from INR1,000 million in financial year '25 on account of increase in profitability and improvement in working capital cycles.”
Faiz Nagariya, page 8 of the filed PDF · View the filing
Total capex: INR3,838 million (FY26)
p. 9
“The total capex for financial year '26 was INR3,838 million and the capex expected for financial year '27 is INR3,000 million to INR3,500 million.”
Faiz Nagariya, page 9 of the filed PDF · View the filing
Capacity utilization at Site 2: 75%
p. 9
“The capacity utilization at plant stands as under Site 2, 75%; Site 3, 70%; and Site 4, 55%.”
Faiz Nagariya, page 9 of the filed PDF · View the filing
LSM pricing increase: 20% year-on-year and 18% quarter-on-quarter (Q4 FY26)
p. 4
“Pricing has been exceptionally strong over 20% year-on-year and 18% quarter-on-quarter in Q4.”
Rohan Desai, page 4 of the filed PDF · View the filing
Site 4 revenue: INR220 crores (FY26)
p. 4
“Site 4 has seen a tremendous growth from INR50 crores to INR220 crores, a 4x increase and now represents 21% of our total sales.”
Rohan Desai, page 4 of the filed PDF · View the filing
Revenue from Baker Hughes: approximately INR76 crores (Q4 FY26)
p. 11
“Yes. So the revenue to Baker Hughes in this last quarter was approximately INR76 crores.”
Faiz Nagariya, page 11 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.
Capex — INR3,000 million to INR3,500 million · FY27
stated firmly by Faiz Nagariya EBITDA margin
p. 9
“The total capex for financial year '26 was INR3,838 million and the capex expected for financial year '27 is INR3,000 million to INR3,500 million.”
Faiz Nagariya EBITDA margin, page 9 of the filed PDF · View the filing
EBITDA margin — 29% to 30% · FY27
stated as an aspiration by Kushal Doshi
p. 14
“We hope to keep margins stable between the 29% to 30% EBITDA margins as well as in the PAT around 19% to 20%.”
Kushal Doshi, page 14 of the filed PDF · View the filing
Working capital days — around 160 days · FY27
stated conditionally by Faiz Nagariya
p. 13
“So we see that by end of this year -- this financial year '27, we'll be again having a healthy working capital reduction, which we expect to be around 160 days at least.”
Faiz Nagariya, page 13 of the filed PDF · View the filing
Debt — INR200 crores to INR250 crores additional · FY27
stated firmly by Faiz Nagariya
p. 17
“Approximately by end of financial year '27, you can expect INR200 crores to INR250 crores additional in the debt, not more than that.”
Faiz Nagariya, page 17 of the filed PDF · View the filing
Total remaining capex across sites — INR1,500 crores to INR1,600 crores · next 4 years
stated firmly by Faiz Nagariya
p. 17
“It will be approximately all put together, the Site 5 is the major site and the Site 1 where we are expanding the R&D. So all put together, it will be approximately INR1,500 crores to INR1,600 crores, all in next 4 years, not in 1 year, next 4 years.”
Faiz Nagariya, page 17 of the filed PDF · View the filing
Revenue share from CRAMS and CEM — 70% · next 3 to 4 years
stated as an aspiration by Kushal Doshi
p. 18
“FY28, but what we're looking over the next 3 to 4 years is 70% of the revenue coming from CRAMS and CEM and 30-odd percent coming from large-scale manufacturing.”
Kushal Doshi, page 18 of the filed PDF · View the filing
LSM pricing sustainability — next 2 to 3 quarters
stated conditionally by Rohan Desai
p. 17
“As of today, what we think and what we are anticipating is that in the medium term, the prices will not decline.”
Rohan Desai, page 17 of the filed PDF · View the filing
New R&D facility commissioning — Q2 FY28
stated firmly by Aman Desai
p. 5
“The construction of the entirely new R&D plant and the new R&D wing that we are also undergoing is also progressing on schedule and is completed -- expected to be commissioned in second quarter of FY28.”
Aman Desai, page 5 of the filed PDF · View the filing
Site 5 asset turns — 1.5 to 1.75
stated as an aspiration by Kushal Doshi
p. 17
“Asset turn for Site 5 is being targeted between 1.5 to 1.75.”
Kushal Doshi, page 17 of the filed PDF · View the filing
Commercialization of 3 new LSM products at Site 5 — May end or starting of June 1st week
stated firmly by Rohan Desai
p. 4
“There are 3 new large-scale manufacturing products, 2 in pharmaceutical and one agrochemical from Site 5, which will be commissioned by May end or starting of June 1st week.”
Rohan Desai, page 4 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 the company aims to remain grounded in its foundational premise but operate at greater scale.
Answered by Aman Desai
Asked by Sajal Kapoor: What will be structurally different about Aether's business model 5 years from now if the current capex and R&D cycle succeeds?
p. 9
“So what will be structurally different in 5 years from now, we hope not much. We hope it continues to stay the same, but only do it for the lack of a better word, bigger and better.”
Aman Desai, page 9 of the filed PDF · View the filing
Management indicated a natural hedge exists and confirmed a possible margin benefit.
Answered by Rohan Desai
Asked by Amay Sharda: Will currency movements benefit margins given export exposure?
p. 10
“Yes. But we do have a natural hedge where we are importing certain products also from various parts of the world.”
Rohan Desai, page 10 of the filed PDF · View the filing
Management confirmed no disruption and continued orders.
Answered by Faiz Nagariya
Asked by Sai Kumar: What was Baker Hughes revenue this quarter and is there any supply disruption due to the war?
p. 11
“And there is no disruption which has happened to the supplies which are doing to Baker Hughes.”
Faiz Nagariya, page 11 of the filed PDF · View the filing
Management explained shipment delays due to logistics issues pushed sales into April and May at higher prices.
Answered by Kushal Doshi
Asked by Abhijit Akella: Why did LSM revenue decline sequentially despite reported price increases?
p. 12
“That's primarily because in the last month -- in the month of March, we were not able to ship some of the products due to logistical issues.”
Kushal Doshi, page 12 of the filed PDF · View the filing
Management said debt would increase gradually as project-related borrowing begins.
Answered by Faiz Nagariya
Asked by Abhijit Akella: What is the outlook for debt levels as capex increases?
p. 13
“So debt will increase, but not very fast. It will be sequential.”
Faiz Nagariya, page 13 of the filed PDF · View the filing
Management attributed the sequential margin decline to the inventory write-off from the fire and absence of prior one-off income.
Answered by Faiz Nagariya
Asked by Nikunj Gupta: Why were margins not hit more significantly this quarter given one-off items?
p. 14
“The major reason was the INR70 million inventory write-off on account of fire, which took place at the external warehouse.”
Faiz Nagariya, page 14 of the filed PDF · View the filing
Management said the March fire was a minor, externally caused event and safety systems worked well.
Answered by Aman Desai
Asked by Prateek Shrivastava: What additional safety steps are being taken after two fire incidents?
p. 18
“But in terms of the current fire incident that happened was truly non-event, minimal loss to property and no injury, no casualty, no injury even to anybody.”
Aman Desai, page 18 of the filed PDF · View the filing
Management disputed the premise, saying pricing actually increased and volume was affected by shipment timing.
Answered by Kushal Doshi
Asked by Prateek Shrivastava: What explains the apparent LSM price erosion in Q4 despite volume growth?
p. 19
“I'm not sure how you got the price erosion, but what we have seen is a price increase.”
Kushal Doshi, page 19 of the filed PDF · View the filing
Management described four blocks completed, two ready for trial runs, and construction starting on four more.
Answered by Rohan Desai
Asked by Rohit Ohri: How many Site 5 production blocks are constructed and running?
p. 20
“We have already completed the construction of 4 blocks. Two blocks are already ready to run.”
Rohan Desai, page 20 of the filed PDF · View the filing
Risks flagged
Fire incident at external warehouse near Site 1 causing inventory loss provision
p. 8
“Further, a provision for loss of inventory on account of fire at an external warehouse near Site 1 on March 11, '26 amounting to INR70 million has been provided in Q4 of financial year '26.”
Faiz Nagariya, page 8 of the filed PDF · View the filing
Elevated working capital days due to new site ramp-up
p. 8
“Even though these levels remain elevated, the inventory days increased primarily on account of raw material purchase and the production of the new molecules going on at Site 3++ and the raw materials purchase at Site 5.”
Faiz Nagariya, page 8 of the filed PDF · View the filing
Global disruption from conflict affecting oil and petrochemical supply
p. 4
“Roughly 20% of global oil capacities went offline and nearly half of the global ethylene and propylene supplies -- polyethylene supplies have been disrupted.”
Rohan Desai, page 4 of the filed PDF · View the filing
Logistical issues delaying shipments in March
p. 12
“These have been shipped in the month of April and May as we speak.”
Kushal Doshi, page 12 of the filed PDF · View the filing
Competition from China present across molecules
p. 19
“China is present in all the molecules which we or anybody else in India is making.”
Rohan Desai, page 19 of the filed PDF · View the filing
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