Aarti Industries Q3 net profit jumps nearly 3-fold to ₹133 crore on higher utilisation

Country's leading chemical maker, Aarti Industries Ltd, on Monday (February 2) reported a sharp rise in net profit for the third quarter, with profit increasing nearly three-fold to ₹133 crore compared with ₹46 crore in the same period last year, marking a year-on-year growth of about 189%. The improvement was driven by higher capacity utilisation, benefits from cost-saving initiatives and improved economies of scale.

Revenue for the quarter grew 26% year-on-year to ₹2,319 crore from ₹1,843 crore, driven by volume growth across multiple value chains. During the period, the company saw a resumption of US volumes, which supported higher capacity utilisation and improved operating leverage, even as it absorbed part of the impact of US tariffs.

Operating performance also improved, with EBITDA rising 38.8% year-on-year to ₹322 crore from ₹232 crore in the year-ago period. EBITDA margin expanded to 13.9% during the quarter, compared with 12.6% in the corresponding period last year.

Also Read: Aarti Industries Q1 net profit slumps 68%; revenue, margins contract

The company also provided for a one-time impact of about ₹15 crore related to the implementation of the new labour code, which was treated as an exceptional expense for the quarter. Aarti Industries said it is awaiting further notification from the state and central governments to refine its approach and will take additional provisions if required once more clarity emerges.

On the business front, the energy portfolio, led by MMA, remained a key growth driver during the quarter, with volumes staying robust on the back of steady demand and favourable feedstock spreads. In agrochemicals, volumes remained stable and continued to show recovery, although pricing remained subdued.

In the dyes, pigments and printing inks segment, application volumes stayed steady and are expected to improve going forward. The polymers and additives segment was impacted in the US market, with a full recovery linked to improving trade conditions. The DCB chain, however, showed signs of volume and margin recovery in non-US markets during the quarter.

Also Read: Aarti Industries Q2 net profit doubles to ₹106 cr; Revenue up 12% YoY

Shares of Aarti Industries Ltd ended at ₹374.50, up by ₹3.75, or 1.01%, on the BSE.