Aarti Surfactants Limited (AARTISURF) share price

₹506.65 on NSE as of 2026-09-11. +1.16% on the day. market cap ₹429 Cr. P/E 23.3. 52-week range ₹321.10 to ₹658.55. Chemicals.

What the company does

Aarti Surfactants Limited (ASL) was formed as a result of the demerger of the home and personal care division of Aarti Industries Limited. ASL is engaged in the manufacture of ionic and non- ionic surfactants and specialty products serving the home and personal care (HPC) industry. Its product portfolio includes surfactants, mild surfactants, rheology modifiers, pearlising agents, UV filters, soap bases as well as conditioning agents. ASL supplies surfactants, including concentrates for shampoo, hand wash, dish wash and oral care. Apart from India, ASL also exports its products to USA, Europe and Southeast Asian countries with exports accounting for 28% of the sales in FY22. ASL is a preferred supplier to Hindustan Unilever, Proctor & Gamble, Patanjali and Dabur. Its Manufacturing Units are located at Pithampur in Madhya Pradesh and Silvassa in Dadra Nagar Haveli.

Filed by CARE Ratings, page 11.

Aarti Surfactants Q1 FY27: Revenue Up 26%, Profit Up 206%, And A ₹23 Crore Redemption Cheque

At a glance

Aarti Surfactants sells the stuff that makes shampoo foam. For the June 2026 quarter it sold ₹272.87 crore of it — the largest quarter in the company's short listed life, and 26% more than the ₹215.90 crore of a year ago.

The profit line did something more dramatic. Net profit came in at ₹9.00 crore against ₹2.94 crore a year ago, a 206% jump. Operating profit went from ₹11.63 crore to ₹20.29 crore, lifting operating margin from 5.39% to 7.44%. For a business whose margin spent seven consecutive quarters wandering between 2.47% and 9.75% like a man who has lost his car in a mall parking lot, 7.44% counts as a rediscovery.

On August 5, 2026, the company redeemed 10,82,387 non-convertible redeemable preference shares and paid ₹23.23 crore, leaving the outstanding quantity at nil. That instrument had been sitting on the books since August 2019, quietly accruing a 4% cumulative premium, and CARE had noted in December 2025 that the company planned to raise funds in the near term for the redemption alongside internal accruals.

Meanwhile, the full-year picture reads differently from the quarter. FY26 revenue was ₹859 crore against FY24's ₹590 crore — a 46% climb in two years — while net profit over the same two years went from ₹21.33 crore to ₹12.34 crore. Revenue nearly one-and-a-half times the size; profit roughly half.

Both facts belong to the same company. Section 9 has the table where they sit next to each other.

Introduction

Aarti Surfactants Limited was incorporated in 2018 and arrived on the market the way corporate children usually do: by demerger. The home and personal care division of Aarti Industries Limited — itself incorporated in 1984 — was carved out and handed its own listing, its own board, and its own quarterly obligation to explain itself.

The company makes ionic and non-ionic surfactants and specialty products, serving Home & Personal Care, Industrial Applications, Agro, and Oil industries, and it also manufactures formulated blends. Manufacturing sits at Pithampur in Madhya Pradesh and Silvassa in Dadra and Nagar Haveli, with the corporate office in Maharashtra and an R&D centre in Navi Mumbai. Over 350 professionals work across the locations, with roughly 200 contract-based labour additionally at the facilities as of March 2025, per CARE.

Recent corporate history has two threads. The first is expansion: CARE describes a capex of roughly ₹85 crore spread over two years toward capacity expansion and new products at both plants, funded with about ₹60 crore of debt, with ₹23 crore already spent by H1FY26 and the major Pithampur expansion expected to complete by December 2026. The second is the ratings file. CARE downgraded the long-term bank facilities of ₹208.87 crore to CARE BBB+; Stable from CARE A-; Stable, and the ₹18.50 crore preference shares to CARE BBB; Stable from CARE BBB+; Stable, on December 19, 2025 — reversing an upgrade the same agency had granted in June 2024. CARE's stated reason was continued lower-than-expected operating performance and subdued profitability margins in H1FY26 impacting debt protection metrics.

The board met on August 1, 2026, from 12:00 p.m. to 2:00 p.m., approved the Q1 FY27 results, and Gokhale & Sathe issued limited review reports on both the standalone and consolidated numbers. Four days later the preference shares were gone.

Business model

Surfactants are the molecules that let water and oil stop pretending they don't know each other. Aarti Surfactants makes more than fifty products across three families — primary surfactants engineered for versatility across industries, customised blends developed to specific customer requirements, and mild surfactants for sensitive skin and delicate applications.

The product catalogue is where things get properly nerdy. Baby care runs on Sulfoccinate LSS and LES. Oral care gets Sulfolon LML 30, LMG 94, LMP 93/C and friends. Hair care fields Sulfodet XP 93/C, Sulfonon DS 100, Sulfonon CM. Home care gets the Sulfolon NCOL series in X-R, X-Y, X-G and X-O varieties, which reads less like a chemical portfolio and more like a printer cartridge aisle. Somebody in a lab decided every product would begin with "Sulf" and then committed to the bit for fifty-plus SKUs.

Where do these go? Into other people's bottles. The clientele is FMCG: CARE names the company a preferred supplier to Hindustan Unilever, Procter & Gamble Home Products, Colgate Palmolive (India), and Dabur India, among others. This is the fundamental shape of the business — the shampoo on the shelf carries somebody else's name, and Aarti Surfactants gets paid per tonne of the part that actually cleans.

That arrangement has a number attached. Top-five customers accounted for ~92% of total revenue in FY25 per CARE, up from ~56% for the top three in FY23. CARE describes this as customer concentration risk, and notes it is partially offset by long-standing relationships and the high entry barriers to becoming a supplier to such clients.

The input side has its own arithmetic. Lauryl alcohol, fatty acids and alpha olefin form roughly 80% of revenue in raw material expense, and those prices track palm oil. So the model is: buy a palm-linked commodity, react it into something with a proprietary name, sell it to four companies with excellent negotiating departments. CARE notes ASL's limited ability to pass on price changes, and separately notes competition from BASF, Clariant, Croda, Evonik, Solvay, Stepan, Dow and Godrej Industries, with Galaxy Surfactants the largest domestic pure-play.

Exports reach 30+ countries and about 100 customers across Asia, Europe, Africa and the Americas, at ~20% of FY25 revenue against ~80% domestic. Installed capacity is 113,000 MT across the two plants.

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

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