Aarti Industries

“But broadly, we expect the current momentum to continue and on the basis of that, we will come up with appropriate guidance for the next year, closer to the end of the financial year.”

“The aspiration is to get Zone IV additive to EBITDA in FY28 itself and that is the current plan.”

“So across the three levers is what gives us line of sight to achieve the range that we had mentioned in our guidance.”

“The Phase I of Zone IV was officially commissioned on September 7, 2026.”

“The Calcium Chloride unit, the PEDA (2-Phenyl Ethyl Diethyl Aniline) plant, and a section of the Multipurpose Plant (MPP) are now operational and are undergoing stabilization.”

“The remaining 4 chemistry blocks are expected to come online within this financial year, positioning Zone IV as a strategic growth driver for next 18-24 months.”

“So by 31st March 2027, most of it should get capitalized.”

“Even in NCB, we are looking at a debottlenecking capex and not necessarily a greenfield capex. So from that point of view, capital intensity would not be significantly higher”

“With current NCB asset utilization remaining elevated, the capacity expansion initiatives are under evaluation by the management team.”

“I think in the second quarter, we ran almost at full capacity.”

“The Calcium Chloride plant that we commissioned has achieved more than design capacity within first three months of operation.”

“The PEDA plant that we commissioned is able to achieve its design capacity and design norms within the first two months of its operation.”

“So for the time being, our objective is to stabilize at this capacity and as I mentioned earlier, stabilize our integrated value chain presence, which brings more robustness, more stability to the earnings profile of these value chains. Once we have achieved that, then we could go back and potentially evaluate further expansion.”

“On October 13, 2026, we also entered into a dedicated 10+ year manufacturing and supply agreement with a global specialty chemical major, representing a revenue potential of ~Rs. 1,500 crore.”

“I think if I am not wrong, we are expecting this to run in late 2030s up to 2040, some of them versus the AgChem contract will last till 2029, 2030 kind of a time frame.”

“But given the nature of our commercial arrangement, what is more important is the bottom line because the commercials are structured around margins and not necessarily around top line and that continues to perform as per expectations.”

“The demand portfolio for the advanced polymer going into EVs and electronics’ space has actually picked up. So the volumes there have gone up.”

“So there is no reason that we expect discontinuation of business performance from any of these contracts.”

“The second half might reflect the impact of weaker monsoon in the domestic market.”

“While softness in the PDA chain created a short-term drag on our Q2 FY27 performance, we expect traction to resume in Q3 FY27, underpinned by accelerating DCB demand.”

“PDA is one chain where we are reevaluating how we should utilize those assets in the most efficient manner. But there, at this point in time, we are not pursuing strategic growth from a volume standpoint”

“with our multiproduct strategy, including MEA, DEA and some of the other specialty ethylation/propylation-based chemistries, we expect the volume growth to continue there as well.”

“I think that is one sector where we have also significantly grown in terms of volumes, which is reflected in our NCB chain utilization levels and we are also considering potential expansion possibilities for that value chain.”

“The NCB, which is predominantly a domestic market, the demand trends are very strong. We are actually considering capacity expansion being pushed by requests from our customers.”

“On DCB side, the first half is usually a softer, second half is very strong as the U.S. flows kick in.”

“We have seen a huge pull-up from the energy portfolio in the second quarter specifically, which was linked to extremely strong refining margin and gasoline- naphtha cracks.”

“Second, we have domestic demand picking up for the Fuel Additives portfolio in the market and in some cases, some of the exported volume has also been bought in the domestic market.”

“The gasoline-naphtha crack, it was very robust. It was $20-plus per barrel, if I look at last quarter.”

“Almost all of our raw materials saw significant price increase, while RMs such as Sulphur saw prices surge by over 5-6x”

“The Fluoro products’ margins continue to remain under pressure.”

“So there is definitely an upside in the NCB chain that we are seeing compared to our assumption. At the same time, we are running a bit delayed on Zone IV, right.”

“If there is a further improvement in margin spread due to China's current stand linked to anti-involution and removal of, VAT rebate removal if that sort of gets passed on to multiple other value chains, we could see an upside in the margins”

“In many of the segments, for example, in Agrochemicals, we have quarterly contracts, right. So there is a lag of quarter when it comes to pass-through of the pricing.”

“Elevated RM prices have also stretched our working capital requirements over the past two quarters, pushing our net debt to over Rs. 4,650 crore and leading to higher finance costs.”

“But in terms of days, we have practically optimized to 55 to 60 days of working capital, which is the optimum level at which we could operate.”

“we roughly have anywhere between INR 800 crore to INR 1,000 crore worth of inventory on the waters”

“the Board, on October 1, 2026, approved an enabling resolution to raise up to Rs. 1,000 crore”

“The said enabling resolution has been approved by the Shareholders in the EGM held on 31st October 2026”

“Leveraging our bulk shipment capabilities and robust R&D pipeline, we anticipate launching of several new solutions over the next 12 to 24 months.”

“Project execution for Aarti Circularity (Plastic Recycling JV) remains on track.”

“Right now, as we speak, we are looking at strategic projects backed up by customers' demand in areas like personal care, for example, flavors and fragrances, batteries, in defense.”

“I think this is just a start of relationship with a new client. We hope to do many more projects, including expanding capacity under the existing contracts”

“As of now, whatever has got confirmed and signed is what we have communicated to the market and rest of them remains in the conversation stage.”

“In first quarter, we had indicated that the inventory and FX was roughly around INR 50 - 60 crore as a combined number.”

“Yes, it is for goods in transit.”

“early indications for Q3 point indicates for the domestic RM, we will continue to have good availability and visibility while for imported RM, there could be supply chain gaps that we will have to mitigate.”

“There might be certain issues around Zone IV commissioning and the fixed cost associated with that coming into the P&L around Q4 and if there is a major correction in the global crude oil pricing scenario and if that has an impact potentially on some of the inventory, these are the two issues that we have to watch out for.”

“Wherever possible, we are trying to do forward booking of the contracts to ensure that our exposure gets minimized to the best extent possible. But irrespective of everything that we do, the risk cannot be fully eliminated.”

“No, we see huge overcapacity and dumping by some of the Chinese players for this particular product in the global market.”

“Competition is there and some of them have ramped up the capacity. We have also ramped up our capacity. But we have also been able to place our capacity despite increasing competition.”

“Most notably, our quarterly EBITDA surpassed the Rs. 400-crore threshold, reaching a record of Rs. 418 crore.”

“Revenues in Q2 FY27 were at Rs. 3,887 crore, an increase of 73% over Q2 of last year.”

“Q2 FY27 EBITDA increased by 44% year-on-year reaching Rs. 418 crore.”

“PAT for the quarter increased to Rs. 169 crore with growth of about 60% over the same quarter in the previous year.”

“our successful execution of over 50 GenAI use cases across our workspace last quarter alone.”