India · Delayed Price · Currency is INR Aarti Industries Earnings Call Transcripts
Fiscal Year 2026
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Q4 FY26 saw resilient performance amid global supply chain disruptions, with revenue up 9% YoY and PAT up 43% YoY. Two major long-term contracts were signed, CapEx moderated, and net debt/EBITDA stands at 3.6x, with a focus on reducing leverage and completing key projects in FY27.
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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 sequential EBITDA and revenue growth, driven by volume gains and operational efficiencies, despite persistent pricing pressures from global overcapacity. Major capacity expansions, renewable energy initiatives, and a new recycling JV support long-term growth ambitions.
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EBITDA for H1 FY25 rose 18% YoY, but Q2 margins were compressed due to energy segment weakness and Chinese overcapacity. Management guides for FY25 EBITDA of INR 1,000–1,050 crore and targets INR 1,800–2,200 crore by FY28, with moderated CapEx and a focus on cost optimization and volume ramp-up.
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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.