Aarti Industries Limited (AARTIIND) share price

₹492.70 on NSE as of 2026-09-11. -2.25% on the day. market cap ₹17,872 Cr. P/E 33.7. 52-week range ₹340.00 to ₹543.15. Chemicals.

Aarti Industries Q1 FY27: Revenue Up 42%, Profit Up 260%, and Middle East Revenue Down From 15% to 2%

At a glance

Aarti Industries reported June-quarter revenue of ₹2,387 Cr against ₹1,675 Cr a year ago — a 42% jump. Net profit went from ₹43 Cr to ₹155 Cr, which is a 260% increase, the kind of number that looks like a typo until you check the comparison base and realise last June was simply a very quiet quarter.

Operating profit came in at ₹382 Cr on an OPM of 16%, the highest quarterly margin in the ten quarters shown. Management attributes the EBITDA improvement to product and geography mix optimisation, monetisation of low-cost inventory, and FX gains, and separately estimates the inventory gains at roughly ₹50–60 crore while noting they are difficult to quantify precisely given intra-quarter feedstock and currency swings.

Meanwhile, a chunk of the business fell off a geographic cliff. Middle East revenue, which management says previously accounted for about 15% of the top line, dropped to 2% in the quarter on the West Asia conflict. Volumes were redirected elsewhere; overall volumes were still down about 12% sequentially, with energy down 17% and non-energy down 7%.

So revenue rose 42% while volumes fell 12%. Management says the revenue increase was primarily driven by higher input prices passed on to customers — a business where the invoice grows because the raw material did.

There is also a name on the door changing. More on that shortly.

Introduction

Aarti Industries is the flagship company of the Aarti group, established by first-generation technocrats in 1984 and converted into a public limited company in 1992. It manufactures organic and inorganic chemicals at facilities in Vapi, Jhagadia, Dahej and Kutch in Gujarat, and Tarapur in Maharashtra, and holds a strong market position in the NCB-based specialty chemicals segment. Following the demerger of its pharma business, it operates in specialty chemicals alone — one reportable segment, as the filing puts it, which at least keeps the accounting tidy.

The last eighteen months have been busy in the announcements column. In September 2025, DCM Shriram agreed to exclusively supply chlorine via pipeline, with Aarti buying an additional 200 tpd over an existing 150. In December 2025, the company secured multiple long-term methanol and toluene supply contracts covering substantial annual requirements. In March 2026, it announced a ₹200–250 crore investment over two years for backward integration at its Dahej SEZ facility under a roughly 15-year supply agreement, and separately signed a USD 150 million multi-year supply contract running through 31 March 2030 with a global agrochemical major.

Two joint ventures are in flight. Augene Chemical Private Limited, a 50:50 venture with UPL formed in May 2024, makes downstream amine derivatives for agrochemicals and paints. Re Aarti, held through Aarti Circularity, targets chemical recycling of plastics, with Aarti Circularity having acquired 49% in February 2025. The company also took a 49% stake in Clean Max Indus and 26.25% in Pro-Zeal Green Power in early 2025, infusing ₹16.7 crore into the former in March 2025.

The most consequential filing of 30 July 2026, though, was not financial. Suyog Kotecha becomes Managing Director and CEO from 1 October 2026, and the promoter directors move to non-executive roles. Forty-two years after two technocrats started a chemicals business, the surname is stepping off the executive floor.

Business model

Aarti takes benzene, toluene and sulphuric acid, and does violent things to them in a controlled manner. Chlorination, nitration, ammonolysis, hydrogenation — the company ranks among the top three globally in the first two, top two in hydrogenation, is the world's largest producer of Di-Chloro Benzene, and is among the top three globally in Nitro Chloro Benzene. It holds a top 1–4 global position across nearly 75% of its portfolio. This is world-leading dominance in molecules that ninety-nine people out of a hundred could not pick out of a lineup.

The portfolio runs to over 100 products across 16 manufacturing plants, sold to 1,100+ customers in 60 countries, including Atul, HP, Indian Oil, UPL, DuPont, BASF, Eastman and Syngenta. Eleven zero liquid discharge plants, five co-generation power plants, two R&D centres, 6,000+ employees. The business is fully backward integrated, with adequate domestic availability of benzene removing import dependence — a fact that matters more than it sounds when the alternative is a shipping lane.

The revenue mix by end use in Q1 FY27: energy applications 38%, agrochemicals and fertilizers 18%, dyes/pigments/printing inks 15%, pharma 14%, polymer and additives 11%, others 4%. Exports were 59% of revenue in the quarter, though management cautions that quarter-to-quarter export figures get distorted by Incoterms and voyage time — sales shipped DAP to the US take two to three months at sea before revenue recognition catches up. The books are, in a literal sense, partly floating.

The energy segment deserves a note on branding. Management has begun calling it "fuel additives" rather than MMA, stating explicitly that "you will see more and more be talking about fuel additives than specifically MMA." Fuel additives capacity was expanded from 290 to 360 KTPA in July 2026. There is a pipeline of three to five new products which management declined to name — a chemicals company keeping its cards close in an industry where the cards are structural formulas.

Capacity utilisation as of FY26 ran 86% for NCB, 80% for DCB, 85% for hydrogenation, 82% for nitro-toluene and ethylation — and 55% for PDA, where the presentation notes utilisation was impacted by subdued US demand and competition from China. One product line is running at barely half speed while its neighbours run flat out.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Aarti Industries Limited.

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