Synopsis:
Aarti Industries Limited saw its performance improve by 103.84 percent YoY and 146.51 percent QoQ in Q2FY26 results
The shares of a small-cap company engaged in the manufacturing of chemicals used in pharmaceuticals, agrochemicals, and polymers drew investor attention after the release of its Q2 FY26 results and business updates.
With a market capitalization of Rs.14,851.84 crores, the shares of Aarti Industries Limited were trading at Rs.409.60, up by 4.85 percent from its previous day closing price of Rs.390.65.
Q2FY26 Results
Aarti Industries Limited delivered strong Q2 FY26 results, recording revenue of Rs.2,100, a rise of 28.99 percent from Rs.1,628 crore in Q2FY25 and 25.37 percent increase from Rs.1,675 crore in Q1FY26.
EBITDA grew to Rs.291 crore, up by 47.71 percent year-on-year and 37.26 percent from Rs.212 crores in the previous quarter. Profit before tax rose to Rs.93 crore, marking a 173.52 percent increase from Rs.34 crores over last year and a 121.42 percent rise from Rs.42 crores in Q1FY26.
Net profit stood at Rs.106 crore, showing 103.84 percent growth year-on-year from Rs.52 crores and 146.51 percent rise from Rs.43 crores quarter-on-quarter improvement, reflecting strong financial and operational performance.
Other Updates
Capacity usage shows MMA ( Monomethyl Aniline) leading with a 98 percent utilization rate. NCB ( Nitro Chloro Benzene) followed with 80 percent. Hydrogenation and NT ( Nitro Toluene) operations each ran at 75 percent capacity, while DCB ( Di chloro benzene) stood at 73 percent. PDA ( Para-Diamine) and the Ethylation product group had the lowest utilization levels at 60 percent, suggesting greater potential to scale up production in these segments.
The company aims to maintain consistent volume growth over the next three years by increasing production capacity. Alongside higher output, management intends to enhance EBITDA through greater efficiency and cost control. For FY26, around Rs.1,000 crore has been allocated for capital expenditure.
Over the next three years, the company targets EBITDA in the range of Rs.1,800 to Rs.2,200 crore, a Debt-to-EBITDA ratio below 2.5, and a return on capital employed exceeding 15 percent.
Aarti Industries Limited is a leading global specialty chemical company known for its strong integration and expertise in benzene-based products. It operates across multiple chemistries using key raw materials like benzene, toluene, nitric acid, chlorine, methanol, aniline, and sulphur. It has been a pioneer in developing new product chains and chemical processes in India. Through its integrated operations, the company efficiently uses co-products to create value-added offerings across its product portfolio.
Written By: Jhanavi Sivakumar
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