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Earnings Call Transcript

Aarti Industries Earnings Call Transcript: Key Takeaways

Aarti Industries reported robust 41% YoY revenue growth and 79% EBITDA growth in Q1FY27, driven by higher input price pass-throughs and inventory gains despite geopolitical headwinds and higher freight costs.

Guidance and delivery
Management target EBITDA FY28
Highlights
Revenue growth41% YoY growth, primarily driven by input price pass-throughs.
MarginsHigher margins due to product mix and low-cost inventory monetization.
Demand visibilityStable core demand; fuel additives robust, polymer demand recovery expected Q2.
Management confidenceBalanced; optimistic on long-term targets despite near-term volume softness.

Growth

Revenue hit ₹2,627 Cr and PAT grew 266% YoY, though growth was largely price-driven with volumes down 12% QoQ.

Outlook

FY27 Capex guided at ₹700-800 Cr; EBITDA target of ₹1,800 Cr for FY28 remains unchanged despite current delays.

Risks

Geopolitical conflict in West Asia slashed regional revenue share from 15% to 2%; six-month delay in Zone 4 expansion.

Last quarter's promises, checked

Delivered

  • FY26 Capex ~₹1,125 Cr → delivered ₹1,125 Cr (= BEAT)
  • FY26 EBITDA growth >15% → delivered 15% growth (= BEAT)
  • FY26 PAT growth ~27% → delivered 27% growth (= BEAT)

Partly delivered

  • FY27 Capex ₹700-800 Cr → current call confirms range (= PARTIAL)

Missed

  • Zone 4 commissioning in FY26 → delayed by 3-4 months (= MISS)
  • Net debt reduction in FY26 → debt rose to ₹4,900 Cr (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: AARTIIND. Summary written with AI assistance from the document.

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Aarti Industries Ltd: key numbers

Share price
₹489.25
Market cap
₹17,746 Cr
Revenue (annual)
₹8,286 Cr
Net profit (annual)
₹419.1 Cr
P/E (TTM)
33.4×Sector 37.5×
Promoter holding
41.82%-0.27% QoQ
FII holding
7.00%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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