Aether Industries Limited Earnings Summary — Q4 FY2026
Aether Industries Reports Significant Sequential Margin Contraction Despite Strong YoY Profit Growth
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 7.0% sequentially in Q1 FY2027.
- Revenue of ₹327 Cr is 27.2% higher year-on-year.
- Revenue has compounded at 57.5% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹63 Cr is 33.5% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 44.8% annualised across the period.
- Operating margin stands at 31.5% in Q1 FY2027.
- Operating margin compressed by 16 bps year-on-year.
- Over the last two years operating margin has expanded by 749 bps.
- PBT margin is 25.6%.
- Expenses grew 27.6% against revenue growth of 27.2%.
- Operating profit of ₹103 Cr is 26.6% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 78/100 (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 | Strong Uptrend | 327 | 305 | 319 | 280 | 257 | 240 | 220 | 199 | 180 | 118 |
| Expenses | Improving | 224 | 222 | 207 | 192 | 175 | 161 | 155 | 145 | 137 | 107 |
| Operating Profit | Volatile | 103 | 83 | 112 | 88 | 81 | 80 | 65 | 54 | 43 | 10 |
| Operating Margin | Volatile | 31.5% | 27.1% | 35.2% | 31.4% | 31.6% | 33.2% | 29.5% | 27.0% | 24.0% | 8.7% |
| Other Income | Volatile | 8 | 10 | -4 | 6 | -1 | 2 | 11 | 8 | 9 | 4 |
| Interest | Accelerating | 6 | 6 | 4 | 3 | 5 | 5 | 3 | 2 | 3 | 4 |
| Depreciation | Improving | 21 | 18 | 17 | 17 | 14 | 13 | 11 | 11 | 10 | 10 |
| Profit Before Tax | Volatile | 83 | 68 | 87 | 74 | 62 | 64 | 61 | 49 | 39 | 0 |
| Tax | Volatile | 21 | 14 | 23 | 20 | 15 | 13 | 18 | 14 | 9 | 2 |
| Net Profit | Volatile | 63 | 54 | 64 | 54 | 47 | 50 | 43 | 35 | 30 | -1 |
| Net Margin | Volatile | 19.2% | 17.7% | 20.2% | 19.3% | 18.3% | 20.9% | 19.8% | 17.5% | 16.6% | -1.2% |
Key Takeaways
- Revenue for Q4 FY2026 showed a robust YoY growth of 27% but softed 4.4% sequentially compared to Q3 FY2026.
- Operating margins faced a significant contraction, dropping from 35% in the previous quarter to 27% in Q4.
- Net Profit followed a similar downward quarterly trend, declining to ₹54 Cr from ₹64 Cr in Dec 2025.
- The balance sheet shows a substantial increase in borrowings, which more than doubled from ₹200 Cr in Mar 2025 to ₹458 Cr in Mar 2026.
- Cash flow remains a concern as the company continues to report negative Free Cash Flow (₹-390 Cr for the full year) due to heavy capital expenditures.
- The company's working capital cycle, while improved from peak levels, remains high with inventory days at 326.
- Aether continues to focus on its three-business-segment model, maintaining its niche dominance in Grignard and high-pressure hydrogenation chemistries.
Management Guidance
Management remains focused on transitioning toward an asset-heavy expansion and capturing market share through import substitution and R&D-led growth in CRAMS.
Sentiment Shift
Deteriorating
While YoY growth is strong, the sharp sequential drop in operating margins and net profit, combined with rising debt levels, indicates near-term profitability pressure.
Outlook
The company is in an intensive scale-up phase with increasing depreciation and interest costs. Future performance depends on stabilizing margins and improving cash conversion from its massive CAPEX program.
From the Annual Report (Key Quotes)
“Aether Industries is a high-growth specialty chemical manufacturer specializing in niche chemistries like Grignard and high-pressure hydrogenation.”
“This financial profile indicates a business that is currently out-spending its internal accruals to capture market share.”
“Revenue growth has been robust with a 3-year CAGR of 21%.”
Official Quarterly Documents
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This summary is AI-generated from Aether Industries Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.