Aarti Surfactants Limited (AARTISURF) share price

₹485.80 on NSE as of 2026-10-08. -1.53% on the day. market cap ₹412 Cr. P/E 22.3. 52-week range ₹321.10 to ₹658.55. Chemicals.

www.aarti-surfactants.com

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 makes the chemicals that give shampoo its foam.

In the three months to June 2026 the company sold ₹272.87 crore of them. That is the largest quarter in its short listed life. Revenue in the same quarter a year earlier was ₹215.90 crore, so sales rose 26%.

Net profit came in at ₹9.00 crore against ₹2.94 crore a year earlier, a rise of 206%. Operating profit moved from ₹11.63 crore to ₹20.29 crore. Operating margin, the share of sales left after running costs, went from 5.39% to 7.44%. Across the previous seven quarters that margin wandered between 2.47% and 9.75%, rather like a man hunting for his car in a mall car park.

On 5 August 2026 the company redeemed 10,82,387 non-convertible redeemable preference shares. Preference shares are capital that pays a fixed return ahead of ordinary shareholders. The payment was ₹23.23 crore, and the outstanding quantity is now nil. The instrument had sat on the books since August 2019, accruing a 4% cumulative premium. CARE, a credit-rating agency, noted in December 2025 that the company planned to raise funds in the near term for this redemption, alongside cash generated by the business.

The full year reads differently from the quarter. Revenue for the year to March 2026 was ₹859 crore, against ₹590 crore two years earlier. Net profit across those same two years moved from ₹21.33 crore to ₹12.34 crore.

Introduction

Aarti Surfactants Limited was incorporated in 2018 and reached 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 given its own listing. With that came its own board and its own quarterly obligation to explain itself.

The company makes ionic and non-ionic surfactants and specialty products. Its customers sit in home and personal care, industrial applications, agriculture and oil. It also manufactures formulated blends, which are mixtures made up to a buyer's recipe. Manufacturing sits at Pithampur in Madhya Pradesh and Silvassa in Dadra and Nagar Haveli. The corporate office is in Maharashtra and the research centre is in Navi Mumbai. Over 350 professionals work across those locations. CARE, a credit-rating agency, recorded roughly 200 further contract labourers at the plants as of March 2025.

Recent corporate history has two threads. The first is expansion. CARE describes capital spending of roughly ₹85 crore over two years, aimed at capacity and new products at both plants. About ₹60 crore of that is funded with debt, and ₹23 crore had been spent by September 2025. CARE expects the major Pithampur expansion to finish by December 2026.

The second thread is the ratings file. On 19 December 2025 CARE downgraded long-term bank facilities of ₹208.87 crore to CARE BBB+; Stable, from CARE A-; Stable. The same day it cut the ₹18.50 crore preference shares to CARE BBB; Stable, from CARE BBB+; Stable. That reversed 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 the six months to September 2025. The agency said this hurt debt protection metrics, which measure how easily profits cover borrowings.

The board met on 1 August 2026, from noon to two in the afternoon, and approved the June quarter results. Gokhale & Sathe issued limited review reports on both the standalone and consolidated numbers. A limited review is a lighter check than a full audit. Four days later the preference shares were redeemed.

Business model

Surfactants are the molecules that let water and oil stop pretending they do not know each other. Aarti Surfactants makes more than fifty products across three families. There are primary surfactants engineered to work across several industries. There are customised blends developed to a specific customer's requirements. And there are mild surfactants for sensitive skin and delicate applications.

The catalogue is where things get properly nerdy. Baby care runs on Sulfoccinate LSS and LES. Oral care gets Sulfolon LML 30, LMG 94 and LMP 93/C, among others. Hair care fields Sulfodet XP 93/C, Sulfonon DS 100 and Sulfonon CM. Home care gets the Sulfolon NCOL series in X-R, X-Y, X-G and X-O. Somebody in a laboratory decided every product would begin with "Sulf", then held that line across fifty-odd product codes.

These go into other people's bottles. The clientele is fast-moving consumer goods. CARE, a credit-rating agency, names the company a preferred supplier to Hindustan Unilever, Procter & Gamble Home Products, Colgate Palmolive (India) and Dabur India, among others. That is the shape of the business. The shampoo on the shelf carries somebody else's name, and Aarti Surfactants is paid for the part that actually cleans.

That arrangement has a number attached. CARE puts the top five customers at about 92% of revenue in the year to March 2025. The top three were about 56% two years before that. CARE calls this customer concentration risk. It adds that long-standing relationships partly offset the risk, as do the high barriers to becoming a supplier to such clients.

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

Exports reach more than 30 countries and about 100 customers across Asia, Europe, Africa and the Americas. They were about 20% of revenue in the year to March 2025, with roughly 80% domestic. Installed capacity is 113,000 tonnes 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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