Aarti Industries shares rise 6% as Q2 profit jumps 60%, revenue surges 75%

Shares of Aarti Industries rose as much as 6% after the speciality chemicals company reported a strong performance for the September quarter, with revenue increasing nearly 75% year-on-year (YoY) and net profit rising 60.4%.



The company's growth was supported by higher volumes, stronger export demand and the pass-through of elevated raw material costs.

Revenue for Q2 FY27 increased to ₹3,668 crore from ₹2,100 crore in the year-ago period. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 41% to ₹410 crore from ₹291 crore, while profit after tax (PAT) increased to ₹170 crore from ₹106 crore.

However, operating margin contracted to 11.2% from 13.9% a year ago, despite the improvement in earnings.

The company said volumes grew by over 30% during the quarter. It also expanded its fuel additives capacity from 290 kilotonnes per annum (KTPA) to 360 KTPA, supporting higher volumes.

Higher export demand and the effective pass-through of elevated raw material costs also contributed to revenue growth. Management had indicated that Q2 would be a strong quarter, and said the performance was in line with that expectation.

Growth outlook and new customer agreement

Aarti Industries said evolving global trade dynamics are creating opportunities for Indian speciality chemical manufacturers. It believes China's efforts to rationalise industry capacity and India's expanding trade agreements with developed economies could strengthen the country's position in global supply chains over the medium term.

The company said the impact of this trend was visible in both margin and volume improvements across its NCB value chains. It expects growth momentum to continue, supported by export demand, progressing customer engagements and the commercialisation of new capacities. Management also expects the momentum to extend to other value chains, including DCB and NT.

Separately, on October 13, 2026, Aarti Industries entered into a manufacturing and supply agreement with a global speciality chemicals company. The agreement spans more than 10 years and has a cumulative revenue potential of approximately ₹1,500 crore over the contract period.

First-half performance and FY28 targets

For the first half of FY27, revenue increased 60% YoY to ₹6,055 crore from ₹3,776 crore. EBITDA rose 57.5% to ₹792 crore from ₹503 crore, while PAT more than doubled to ₹325 crore from ₹150 crore.

Operating margin for the first half stood at 13.1%, compared with 13.3% in the corresponding period last year.

For FY28, the company has outlined an EBITDA target of ₹1,800-2,200 crore. It is targeting a debt-to-EBITDA ratio below 2.5 times and a return on capital employed (ROCE) of over 15%.

Shares of Aarti Industries rose up to 5.5% on Monday, as the stock reacted to the September quarter earnings. It was trading about 4% up at ₹453.15 as of 9.40 am. The shares advanced nearly 21% so far in 2026.