This article first appeared on GuruFocus .
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Revenue:INR2,492 crores, an increase of 11% QOQ.
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EBITDA:INR323 crores, an 11% QOQ increase.
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Profit After Tax:INR133 crores, a 25% QOQ increase.
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Exports:65% of total revenues.
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Exceptional Expense:INR15 crores due to new labour code implementation.
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CapEx:Estimated at INR1,100 crores for the year.
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Capacity Expansion:MMA capacity from 290 kT to 360 kT by end of Q4 FY26; DCB capacity from 120 kT to 140 kT.
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Release Date: February 03, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Aarti Industries Ltd ( BOM:524208 ) reported an 11% quarter-on-quarter increase in revenue, reaching INR2,492 crores, driven by volume growth across key products.
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The company's EBITDA surged by 11% quarter-on-quarter to INR323 crores, reflecting improved operational performance and higher capacity utilization.
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Exports constituted about 65% of total revenues, marking the highest percentage share and absolute basis, indicating strong international demand.
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The company is expanding its MMA capacity from 290 kT to 360 kT, expected to be available by the end of Q4 FY26, to meet growing demand.
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Aarti Industries Ltd ( BOM:524208 ) is leveraging AI and digital transformation tools to enhance productivity, aiming for measurable gains in plant uptime and energy consumption reduction.
Negative Points
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The global operating environment remains challenging due to geopolitical tensions, trade realignments, and uncertainties around global demand.
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The company absorbed part of the US tariffs, which impacted financial performance despite the resumption of US volumes.
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Agrochemicals and pharmaceuticals segments face pricing pressure due to persistent dumping from China, affecting margins.
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The polymer segment experienced mixed results, with PDA product chains facing volume and pricing pressure due to dependency on the US market.
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Increased exports have led to higher working capital requirements, resulting in a marginal increase in debt and interest costs.
Q & A Highlights
Q: Was there any tariff applying to MMA in the US market during Q3? A: Yes, MMA had full tariff applicability in the last quarter. It was not part of Annex 2 and had full tariff applicability. (Suyog Kotecha, CEO)
Q: Could you elaborate on the impact of China's anti-evolution strategy on Aarti Industries? A: The strategy aims to curb deflationary export pricing and overcapacity in China. Actions like removing VAT subsidies on chemical products have already impacted pricing globally. This could lead to a more rational pricing environment, benefiting Aarti Industries. (Suyog Kotecha, CEO)
Q: What is the medium-term strategy for MMA, given its significant contribution to the portfolio? A: MMA is expected to constitute 30% to 40% of our portfolio in the next two to three years. We are diversifying markets and customers to manage demand swings and maintain a balanced portfolio. (Suyog Kotecha, CEO)
Q: How will the recent US-India trade deal impact your margins and pricing? A: The tariff reduction will play a role in future negotiations, potentially leading to better realizations. Out of our four large products exported to the US, only MIA was exempted from tariffs. The reduction from over 50% to 18% will benefit margins across the value chain. (Suyog Kotecha, CEO)
Q: Can you provide insights into the CapEx for Zone 4 and its expected utilization? A: The majority of the CapEx will be completed this year, with a small portion spilling over into the next year. We expect significant ramp-up in utilization, especially for calcium chloride and multi-purpose plants, with full utilization over the next two years. (Suyog Kotecha, CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
