Aarti Industries Limited Earnings Summary — Q1 FY2027
Aarti Industries Posts Strong Q1 FY27 Performance with 260% YoY Net Profit Growth and Margin Expansion
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 8.3% sequentially in Q1 FY2027.
- Revenue of ₹2,387 Cr is 42.5% higher year-on-year.
- Revenue has compounded at 14.1% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹155 Cr is 260.5% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 7.4% annualised across the period.
- Operating margin stands at 16.0% in Q1 FY2027.
- Operating margin expanded by 334 bps year-on-year.
- Over the last two years operating margin has contracted by 48 bps.
- PBT margin is 7.5%.
- Expense growth of 37.0% remained below revenue growth of 42.5%.
- Operating profit of ₹382 Cr is 80.2% higher year-on-year.
- Operating leverage continues to improve.
- 5 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 74/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 2,387 | 2,205 | 2,318 | 2,100 | 1,675 | 1,949 | 1,843 | 1,628 | 1,851 | 1,773 |
| Expenses | Improving | 2,005 | 1,864 | 1,997 | 1,809 | 1,463 | 1,687 | 1,612 | 1,431 | 1,546 | 1,489 |
| Operating Profit | Improving | 382 | 341 | 321 | 291 | 212 | 262 | 231 | 197 | 305 | 284 |
| Operating Margin | Stable | 16.0% | 15.5% | 13.8% | 13.9% | 12.7% | 13.4% | 12.5% | 12.1% | 16.5% | 16.0% |
| Other Income | Improving | 5 | 1 | -13 | 22 | 4 | 3 | 5 | 7 | 6 | -1 |
| Interest | Improving | 83 | 112 | 69 | 100 | 60 | 64 | 85 | 62 | 64 | 59 |
| Depreciation | Stable | 124 | 119 | 121 | 120 | 114 | 113 | 111 | 108 | 102 | 98 |
| Profit Before Tax | Volatile | 180 | 111 | 118 | 93 | 42 | 88 | 40 | 34 | 145 | 126 |
| Tax | Volatile | 25 | -26 | -15 | -13 | -1 | -8 | -6 | -18 | 8 | -6 |
| Net Profit | Volatile | 155 | 137 | 133 | 106 | 43 | 96 | 46 | 52 | 137 | 132 |
| Net Margin | Volatile | 6.5% | 6.2% | 5.7% | 5.0% | 2.6% | 4.9% | 2.5% | 3.2% | 7.4% | 7.5% |
Key Takeaways
- Consolidated Net Profit surged 260% year-on-year to ₹155 crore, driven by robust top-line growth and improved operating efficiencies.
- Revenue from operations grew 42.4% YoY to ₹2,387 crore, reflecting a significant recovery in demand and volume growth in the specialty chemicals segment.
- Consolidated Operating Margin improved to 14.54% from 11.35% in the same quarter last year, marking a steady recovery from recent cyclical lows.
- The company successfully divested its 100% stake in Shanti Intermediates Private Limited effective June 23, 2026, realizing an exceptional gain of ₹2 crore.
- Finance costs rose to ₹83 crore compared to ₹60 crore in the year-ago quarter, though they decreased sequentially from ₹112 crore in Q4 FY26.
- Net Debt-Equity ratio stood at 0.80x at the consolidated level, showing a slight increase from 0.72x in the prior year period as capex cycles continue.
- The company maintained its 'AA/Negative' long-term credit rating from CRISIL and India Ratings, reflecting ongoing liquidity and creditworthiness despite high debt levels.
Management Guidance
Management remains focused on the benzene-based chemistry value chain with a vision for 2026-2030 emphasizing operational efficiency and the commercialization of large-scale greenfield projects. While debt levels remain elevated due to recent ₹3,000+ Cr expansions, the focus is shifting toward maximizing utilization of newly commissioned assets.
Sentiment Shift
Improving
The sharp recovery in Net Profit and steady sequential expansion of operating margins indicate the company is beginning to transition out of its heavy investment-led earnings trough.
Outlook
AARTIIND is entering a critical phase where revenue growth is finally translating into bottom-line recovery. The primary outlook hinges on the stabilization of global chemical demand and the company's ability to service its increased debt through improved free cash flow as major capex projects reach optimal utilization.
From the Annual Report (Key Quotes)
“The Exceptional Items in unaudited Consolidated Financial Results of June, 2026 arises out of divestment by Aarti Corporate Services Limited of its Subsidiary company Shanti Intermediates Private Limited.”
“The Company has only one reportable segment i.e. 'Specialty Chemicals'.”
“The Company has retained its Long Term Issuers & Bank Facilities credit ratings of AA/Negative from CRISIL and India Ratings.”
Official Quarterly Documents
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This summary is AI-generated from Aarti Industries Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.