India · Delayed Price · Currency is INR Aarti Industries Earnings Call Transcripts
Fiscal Year 2026
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Q4 FY26 delivered strong revenue and profit growth despite global supply chain disruptions and higher costs, supported by new long-term contracts and robust domestic demand. CapEx intensity is set to decline in FY27, with a focus on high-return projects and net debt reduction.
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Q3 FY26 delivered strong sequential growth in revenue, EBITDA, and profit, with exports at a record 65% of revenue. Macro tailwinds from trade deals and China’s policy shifts are expected to drive further margin and volume gains, while CapEx and new projects support future growth.
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Q2 FY26 saw strong sequential growth with revenue up 21% and EBITDA up 36%, despite U.S. tariffs. Market diversification, cost optimization, and innovation drove performance, while CapEx and R&D investments position the company for sustainable growth.
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Q1 FY26 saw revenue and EBITDA decline due to geopolitical disruptions, raw material price drops, and new U.S. tariffs, but demand and capacity expansion support a positive outlook. Cost-saving measures and strategic CapEx are on track, with recovery expected in H2.
Fiscal Year 2025
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FY 2025 saw 15% revenue and 3% EBITDA growth, driven by strong volume recovery and cost optimization, despite global volatility and higher costs. FY 2026 is expected to continue volume-led growth, with CapEx focused on new projects and net debt set to decline.
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Q3 FY25 saw strong volume growth and sequential EBITDA improvement, despite margin pressure from global overcapacity and pricing challenges. Major capacity expansions, renewable energy initiatives, and a new recycling JV support long-term growth, with CapEx and ROCE guidance reaffirmed.
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Q2 saw EBITDA decline sequentially but H1 FY25 results showed YoY growth, with robust non-energy volumes and a challenging energy segment due to lower refining margins. Management maintains FY25 EBITDA guidance, targets significant growth by FY28, and is focused on cost optimization, capacity ramp-up, and prudent CapEx.
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Revenue and EBITDA grew both sequentially and YoY, driven by strong volume growth and new project ramp-ups, despite margin pressure from Chinese overcapacity and volatile energy markets. Major CapEx projects and a JV with UPL are on track, with debt expected to peak in FY25.