Aarti Industries FY26 Audited Results: Consolidated Net Profit Rises to Rs 419 Crs, Dividend of Re 1 Declared

Aarti Industries reported its audited financial results for the quarter and year ended March 31, 2026, with the Board of Directors approving the results at its meeting held on May 4, 2026. On a consolidated basis, the company posted a net profit of Rs 137 Crs for Q4 FY26, up from Rs 96 Crs in Q4 FY25, while full-year consolidated net profit rose to Rs 419 Crs from Rs 331 Crs in FY25. The Board also recommended a dividend of Re 1/- (20%) per equity share of face value Rs 5/- each for FY26, subject to shareholder approval at the ensuing Annual General Meeting.

Consolidated Financial Performance

Aarti Industries delivered broad-based improvement across revenue and profitability on a consolidated basis. Consolidated net revenue from operations (net) grew to Rs 2,206 Crs in Q4 FY26 from Rs 1,949 Crs in Q4 FY25, while full-year consolidated net revenue from operations rose to Rs 8,286 Crs from Rs 7,269 Crs in FY25. Total consolidated income for the full year stood at Rs 8,291 Crs versus Rs 7,287 Crs in FY25. The consolidated operating margin (EBITDA less other income as a percentage of gross revenue) expanded to 14.15% in Q4 FY26 from 11.89% in Q4 FY25, and to 12.95% for the full year from 12.40% in FY25.

The table below presents key consolidated financial metrics:

Metric: Q4 FY26 Q4 FY25 FY26 FY25 Net Revenue from Operations (Rs Crs): 2,206 1,949 8,286 7,269 Total Income (Rs Crs): 2,205 1,952 8,291 7,287 Total Expenses (Rs Crs): 2,094 1,863 7,933 6,982 Profit before Exceptional Items & Tax (Rs Crs): 111 88 358 305 Net Profit (Rs Crs): 137 96 419 331 Total Comprehensive Income (Rs Crs): 110 120 377 345 Basic EPS (Rs): 3.79 2.64 11.56 9.13 Diluted EPS (Rs): 3.78 2.64 11.55 9.12 Operating Margin (%): 14.15% 11.89% 12.95% 12.40% Net Profit Margin (%): 5.67% 4.33% 4.65% 4.11%

Standalone Financial Performance

On a standalone basis, Aarti Industries reported net revenue from operations of Rs 2,439 Crs in Q4 FY26, compared to Rs 1,992 Crs in Q4 FY25. Full-year standalone net revenue from operations grew to Rs 8,422 Crs from Rs 7,302 Crs in FY25. Standalone net profit for Q4 FY26 came in at Rs 147 Crs versus Rs 99 Crs in Q4 FY25, while full-year standalone net profit rose to Rs 422 Crs from Rs 340 Crs in FY25. The standalone operating margin improved to 13.16% in Q4 FY26 from 11.76% in Q4 FY25, and to 12.70% for the full year from 12.40% in FY25.

The table below presents key standalone financial metrics:

Metric: Q4 FY26 Q4 FY25 FY26 FY25 Net Revenue from Operations (Rs Crs): 2,439 1,992 8,422 7,302 Total Income (Rs Crs): 2,439 1,995 8,430 7,325 Net Profit (Rs Crs): 147 99 422 340 Basic EPS (Rs): 4.05 2.74 11.65 9.37 Diluted EPS (Rs): 4.04 2.74 11.64 9.36 Operating Margin (%): 13.16% 11.76% 12.70% 12.40% Net Profit Margin (%): 5.52% 4.40% 4.61% 4.21%

Balance Sheet and Liquidity

The company's consolidated total assets stood at Rs 13,299 Crs as at March 31, 2026, up from Rs 11,114 Crs as at March 31, 2025, reflecting continued capital investment. Consolidated total equity increased to Rs 5,955 Crs from Rs 5,605 Crs. Consolidated cash and cash equivalents rose significantly to Rs 583 Crs from Rs 199 Crs. Capital work-in-progress stood at Rs 2,030 Crs, indicating ongoing capacity expansion. The consolidated net debt-equity ratio stood at 0.72 as at March 31, 2026, compared to 0.62 as at March 31, 2025, while the current ratio was 0.83.

Balance Sheet Metric: Consolidated Mar 2026 Consolidated Mar 2025 Total Assets (Rs Crs): 13,299 11,114 Total Equity (Rs Crs): 5,955 5,605 Cash & Cash Equivalents (Rs Crs): 583 199 Capital Work-in-Progress (Rs Crs): 2,030 1,274 Net Debt-Equity Ratio: 0.72 0.62 Current Ratio: 0.83 0.84

Cash Flow Highlights

On a consolidated basis, net cash flow from operating activities for FY26 was Rs 781 Crs, compared to Rs 1,238 Crs in FY25, with the decline primarily driven by an increase in trade receivables. Net cash used in investing activities was Rs 1,142 Crs, largely on account of additions to property, plant and equipment and capital work-in-progress of Rs 1,124 Crs. Net cash from financing activities was Rs 745 Crs, supported by proceeds from long-term and other borrowings, partially offset by finance costs and dividend payments.

Cash Flow Metric: Consolidated FY26 (Rs Crs) Consolidated FY25 (Rs Crs) Net Cash from Operating Activities: 781 1,238 Net Cash from Investing Activities: (1,142) (1,393) Net Cash from Financing Activities: 745 (73) Closing Cash & Cash Equivalents: 583 199

Key Corporate Disclosures

The company operates in a single reportable segment — Specialty Chemicals. Aarti Industries has retained its long-term issuer and bank facilities credit ratings of AA-/Negative from CRISIL and India Ratings, while its commercial papers carry an A1+ rating from both agencies. As at March 31, 2026, commercial papers (listed) outstanding stood at Rs 300 Crs. During Q4 FY26, 500 equity shares of Rs 5/- each were issued and allotted under the Aarti Industries Limited Performance Stock Option Plan 2022 (PSOP 2022), taking the paid-up share capital to Rs 1,81,29,71,845/-. The company has 7 direct subsidiaries, 2 indirect subsidiaries, and 2 joint ventures as at March 31, 2026. The audited financial results carry an unmodified audit opinion from statutory auditors Gokhale & Sathe, Chartered Accountants (Firm Registration No. 103264W).

Key Highlights

Consolidated net profit rose to Rs 419 Crs in FY26 from Rs 331 Crs in FY25; Q4 FY26 consolidated net profit at Rs 137 Crs vs Rs 96 Crs in Q4 FY25

Standalone net profit grew to Rs 422 Crs in FY26 from Rs 340 Crs in FY25

Consolidated operating margin expanded to 12.95% in FY26 from 12.40% in FY25

Dividend of Re 1/- (20%) per equity share of Rs 5/- face value recommended for FY26

Credit ratings retained at AA-/Negative (long-term) and A1+ (commercial papers) from CRISIL and India Ratings

Consolidated cash and cash equivalents increased to Rs 583 Crs from Rs 199 Crs year-on-year

Aarti Industries has outlined an ambitious capital expenditure-led growth strategy for FY27, anchored by multiple projects including Zone 4, Augene, and the RE Aarti Joint Venture, alongside a ₹300-450 crore pilot project aimed at commercialising new products. The company's management has coupled this CAPEX roadmap with cautious optimism, underpinned by a robust order pipeline, improving capacity utilisation, and a focused cost efficiency drive.

FY27 CAPEX Growth Strategy

Aarti Industries is pursuing growth through a structured capital expenditure programme spanning several key initiatives. The Zone 4 expansion, the Augene project, and the RE Aarti Joint Venture form the core pillars of this multi-project CAPEX agenda. Complementing these initiatives is a dedicated pilot project for new products, with an investment outlay in the range of ₹300-450 crore, signalling the company's intent to diversify and strengthen its product portfolio.

Parameter: Details Outlook Period: FY27 Management Stance: Cautious Optimism Key CAPEX Projects: Zone 4, Augene, RE Aarti Joint Venture Pilot Project Investment: ₹300-450 Crore Pilot Project Purpose: New Product Development Key Growth Drivers: Strong Orders, Better Capacity Utilisation Profit Growth Strategy: Cost Savings and New Asset Additions Risk Mitigation Focus: West Asia Supply Chain

Strategic Outlook and Operational Drivers

Management's cautious optimism for FY27 is anchored in two key operational drivers — a strong order book and better utilisation of existing manufacturing capacity. These factors are expected to contribute meaningfully to the company's revenue and profit trajectory as the fiscal year progresses. Aarti Industries is also targeting profit growth through a combination of cost savings initiatives and the commissioning of new assets, with the dual approach intended to improve margins while simultaneously expanding production capabilities.

Supply Chain Risk Mitigation

Management has identified supply chain risks in West Asia as a key area of focus. Active steps are being taken to reduce exposure to disruptions in the region, reflecting a proactive approach to operational resilience. The company aims to insulate its business from potential volatility arising from geopolitical or logistical challenges in the area.

Key Highlights

Multiple CAPEX projects planned for FY27, including Zone 4, Augene, and the RE Aarti Joint Venture

₹300-450 crore pilot project earmarked for new product development and commercialisation

Cautious optimism expressed by management for FY27

Strong order pipeline and improved capacity utilisation identified as primary growth catalysts

Cost savings and new asset additions form the core of the profit growth strategy

West Asia supply chain risks being actively addressed by management

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