Synopsis:-After a difficult two years of margin compression and China-led pricing pressure, Aarti Industries has closed FY26 with consolidated revenue of ₹9,018 crore (up 12% YoY), EBITDA of ₹1,172 crore (up 15% YoY), and PAT of ₹419 crore (up 27% YoY) while quietly assembling new growth platforms in green chemistry and circular plastics that will determine whether its FY28 EBITDA target of ₹1,800–2,200 crore is achievable.
Shares of one of India’s largest benzene-based specialty chemical manufacturers came into focus on May 4, 2026, after the company released its Q4 FY26 results presentation, capping a year marked by gradual volume recovery, China-driven margin tailwinds, and a quietly expanding JV pipeline that could reshape its earnings trajectory through FY28. The quarterly numbers reflected broad-based operational improvement, with profit jumping sharply year-on-year even as sequential revenue softened slightly.
With a market capitalization of Rs. 17,691 crore, the shares of Aarti Industries Limited were trading at Rs. 487.40 per share, with a 52-week range of Rs. 523.10 to Rs. 338.05. It is trading at a P/E of 43x.
Q4 FY26 and Full-Year Performance
Aarti Industries delivered a strong close to FY26, with Q4 consolidated revenue at ₹2,422 crore, up 9% year-on-year, though marginally softer sequentially, while EBITDA jumped 30% year-on-year to ₹342 crore and PAT surged 43% YoY to ₹137 crore, signalling meaningful operating leverage kicking in. Volume recovery was broad-based: DCB posted a 13% sequential jump, NT rose 24% QoQ, and Ethylation surged 40% quarter-on-quarter, with China’s anti-involution policy providing a notable margin tailwind for PNCB.
The pressure points were PDA stuck at 55% utilization under US tariffs and Chinese competition headwinds and agrochemical margins, which lagged despite volume upticks. Finance costs also carried a one-off ₹39 crore currency revaluation hit on unhedged foreign-currency loans, a line item worth watching given rupee volatility.
For the full year, consolidated revenue rose 12% to ₹9,018 crore from ₹8,046 crore in FY25, with EBITDA climbing 15% to ₹1,172 crore and PAT up 27% to ₹419 crore, a meaningful turnaround after a difficult prior year. MMA was the standout, with capacity scaling from 200 to 290 kTPA and annual production nearly doubling to 237.6 kT at 86% utilization, while Ethylation jumped 41% and NT rose 26% for the year. With ₹1,125 crore in capex deployed and new JVs, Superform and Re Aarti, set to commission in FY27, management is targeting EBITDA of ₹1,800–2,200 crore by FY28. The capacity is in place. Can demand keep up?
The Bigger Picture: Green Chemistry and Circular Plastics
The results alone do not fully capture what Aarti has been building. The more consequential moves sit in the JV pipeline. Re Aarti, the company’s chemical plastic recycling venture, is in full execution mode; critical equipment is already arriving on site, all regulatory approvals are in place, and commissioning is expected within the calendar year 2026. The project converts plastic waste into pyrolysis oil, putting Aarti in a space that barely existed as a commercial segment in India even three years ago. For a company that has always operated in long value chains, this is a genuine departure.
The DCA downstream joint venture with Superform, branded as Augene, is tracking to commission in H1 FY27. About 70 percent of the targeted capex has already been deployed. The company flagged tailwinds in one of the key end-use applications that may accelerate utilization post-commissioning, though it stopped short of specifying which application.
Conclusion
Aarti Industries exits FY26 in a meaningfully better position than it entered it, volumes recovering, value chains gaining utilization, and a heavy capex cycle now largely behind it. The JV pipeline in circular plastics and green chemistry adds a fresh dimension to the story. Whether demand cooperates with the company’s ambitions will determine if the recovery is just beginning or already priced in.
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