Aarti Industries reports strong Q2 FY26 performance, revenue up 26%

Aarti Industries Limited announced strong financial results for Q2 FY26, with revenue increasing by 26% year-over-year and 21% quarter-over-quarter to ₹2,250 crore. EBITDA saw a significant jump of 44% year-over-year and 36% quarter-over-quarter to ₹291 crore, while profit after tax surged 102% year-over-year and 150% quarter-over-quarter to ₹106 crore. These gains were primarily driven by increased volumes, particularly for MMA, and the realization of deferred bulk shipments from Q1.

The company's Q2 FY26 utilization for MMA reached 98%, marking its highest quarterly production, supported by increased capacity. A new long-term chlorine supply agreement with DCM Shriram Chemicals will enhance supply security and cost efficiency for Aarti Industries' upcoming Zone-IV facility. This partnership is expected to incrementally supply 200 TPD of chlorine, bringing total supply to 350 TPD.

Aarti Industries projects an EBITDA growth target of ₹1,800-2,200 crore in the next three years (FY28F), driven by consistent volume growth, operating leverages, and cost optimization initiatives. Estimated Capex for FY26 is around ₹1,000 crore, with a target debt/EBITDA of <2.5x and ROCE of >15%. The company continues to focus on strategic alliances, including the Augene Chemical Private Limited and Re Aarti Private Limited joint ventures, to further its long-term growth and sustainability goals.