Aarti Industries Grants 2,80,700 Stock Options Under Performance Stock Option Plan 2022

Aarti Industries Limited's Board of Directors, at its meeting held on Monday, May 4, 2026, approved the grant of 2,80,700 stock options to certain eligible employees of the company. The grant has been made under the Aarti Industries Limited Performance Stock Option Plan 2022 (PSOP 2022), in compliance with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The company disclosed this development to stock exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Details of the Stock Option Grant

The following table summarises the key parameters of the stock option grant:

Parameter: Details Plan Name: Aarti Industries Limited Performance Stock Option Plan 2022 (PSOP 2022) Total Options Granted: 2,80,700 Exercise Price: Rs. 5/- per option Face Value per Share: Rs. 5/- Options per Share: 1 (one) equity share per option Vesting Schedule: One-third of total options on each anniversary of grant date for 3 years Vesting Conditions: Continued employment and achievement of performance conditions Grant Date: May 4, 2026

Vesting Structure and Conditions

Each stock option granted under PSOP 2022 entitles the holder to apply for 1 (one) equity share of the company of face value Rs. 5/- (Rupees Five Only) each. The vesting of options is structured in equal tranches, with one-third of the total options granted becoming eligible to vest on each anniversary of the grant date over a period of 3 (Three) years. Vesting is subject to the conditions of continued employment with the company and the achievement of specified performance conditions as defined under the plan.

Regulatory Compliance

The grant has been made in accordance with the provisions of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The intimation was formally communicated to BSE Limited and the National Stock Exchange of India Limited by Raj Sarraf, Company Secretary of Aarti Industries Limited, on May 4, 2026.

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 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 Q3 FY26 Q4 FY25 FY26 FY25 Revenue from Operations - Gross (Rs Crs): 2,422 2,492 2,214 9,018 8,044 Net Revenue from Operations (Rs Crs): 2,206 2,319 1,949 8,286 7,269 Total Income (Rs Crs): 2,205 2,321 1,952 8,291 7,287 Total Expenses (Rs Crs): 2,094 2,187 1,863 7,933 6,982 Profit before Exceptional Items & Tax (Rs Crs): 111 134 88 358 305 Net Profit (Rs Crs): 137 133 96 419 331 Total Comprehensive Income (Rs Crs): 110 126 120 377 345 Basic EPS (Rs): 3.79 3.67 2.64 11.56 9.13 Diluted EPS (Rs): 3.78 3.66 2.64 11.55 9.12 Operating Margin (%): 14.15% 12.89% 11.89% 12.95% 12.40% Net Profit Margin (%): 5.67% 5.33% 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 Q3 FY26 Q4 FY25 FY26 FY25 Revenue from Operations - Gross (Rs Crs): 2,656 2,449 2,257 9,155 8,077 Net Revenue from Operations (Rs Crs): 2,439 2,276 1,992 8,422 7,302 Total Income (Rs Crs): 2,439 2,279 1,995 8,430 7,325 Total Expenses (Rs Crs): 2,320 2,147 1,903 8,071 7,009 Profit before Exceptional Items & Tax (Rs Crs): 119 132 92 359 316 Net Profit (Rs Crs): 147 131 99 422 340 Total Comprehensive Income (Rs Crs): 120 125 124 381 355 Basic EPS (Rs): 4.05 3.63 2.74 11.65 9.37 Diluted EPS (Rs): 4.04 3.62 2.74 11.64 9.36 Operating Margin (%): 13.16% 12.99% 11.76% 12.70% 12.40% Net Profit Margin (%): 5.52% 5.37% 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: Standalone Mar 2026 Standalone Mar 2025 Consolidated Mar 2026 Consolidated Mar 2025 Total Assets (Rs Crs): 13,159 11,115 13,299 11,114 Total Equity (Rs Crs): 5,972 5,618 5,955 5,605 Cash & Cash Equivalents (Rs Crs): 410 197 583 199 Capital Work-in-Progress (Rs Crs): 2,030 1,276 2,030 1,274 Net Debt-Equity Ratio: 0.75 0.62 0.72 0.62 Current Ratio: 0.83 0.84 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: Standalone FY26 (Rs Crs) Standalone FY25 (Rs Crs) Consolidated FY26 (Rs Crs) Consolidated FY25 (Rs Crs) Net Cash from Operating Activities: 608 1,229 781 1,238 Net Cash from Investing Activities: (1,141) (1,382) (1,142) (1,393) Net Cash from Financing Activities: 746 (74) 745 (73) Closing Cash & Cash Equivalents: 410 197 583 199

Key Financial Ratios

The table below presents select key financial ratios on both standalone and consolidated bases:

Ratio: Standalone FY26 Standalone FY25 Consolidated FY26 Consolidated FY25 Debt Service Coverage Ratio: 1.46 0.94 1.46 0.92 Interest Service Coverage Ratio: 2.12 2.22 2.11 2.17 Total Debts to Total Assets: 0.37 0.34 0.37 0.34 Debtors Turnover Ratio: 6.73 9.22 8.24 9.81 Inventory Turnover Ratio: 4.92 4.49 4.05 4.38 Current Liability Ratio: 0.68 0.63 0.69 0.63

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

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