Export share of revenue
57%
+? pp YoY
Exports contributed 57% of total revenue in Q4, up from prior periods, driven by rerouting volumes from Middle East to other regions.
AARTI
Other
2026-04-??
Aarti Industries Ltd — Q4 FY26
Aarti Industries reported Q4 FY26 revenue of ₹2,422 crore (+9% YoY) and EBITDA of ₹342 crore (+29% YoY), with PAT surging 43% YoY to ₹137 crore.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Aarti Industries reported Q4 FY26 revenue of ₹2,422 crore (+9% YoY) and EBITDA of ₹342 crore (+29% YoY), with PAT surging 43% YoY to ₹137 crore. The quarter was marked by severe raw material inflation (benzene, sulfur up >60%) and Middle East geopolitical disruptions, which impacted ~10% of revenue from energy exports. Management highlighted two new long-term contracts: a backward integration deal with a global chemical major (₹200-250 crore capex, 15-year tenure) and a $150 million multi-year agrochemical intermediate supply agreement. Capacity utilization remains high (>80%), and Zone 4 projects (MTP, PA, calcium chloride) are commissioning with a 3-4 month delay due to labor shortages. FY27 capex guidance is ₹700-800 crore, down from ₹1,125 crore. Near-term risks include sustained West Asia conflict disrupting feedstock and export flows, and elevated working capital due to higher raw material prices and longer transit times.
Key Numbers
Middle East revenue exposure
9-10%
flat YoY
Approximately 9-10% of annual revenue comes from Middle East, predominantly in energy applications, now disrupted by geopolitical tensions.
Capacity utilization (energy chain)
>80%
+? pp YoY
Capacity utilization in energy applications remained high despite a 4% QoQ volume decline due to Middle East disruptions.
Net debt to EBITDA
3.6x
+?x YoY
Net debt/EBITDA stood at 3.6x as of March 31, 2026, up from prior year due to elevated working capital and capex.
Management Guidance
FY27 capex guidance of ₹700-800 crore
Management guided FY27 capex in the range of ₹700-800 crore, down from ₹1,125 crore in FY26, focusing on completion of Zone 4 and new contract capex.
Management guidance capexZone 4 commissioning during FY27
All Zone 4 assets (MTP, PA, calcium chloride, five chemistry blocks) will be commissioned during FY27, with initial revenue from Q2 FY27.
Management guidance growthNet debt to decline in FY27
Management expects net debt to decline in FY27 as capex intensity reduces and operating cash flows improve, despite working capital pressures.
Management guidance otherEffective tax rate of 9-15% in FY27
Tax rate expected in the range of 9-15% for FY27, benefiting from depreciation on Zone 4 assets and resolution of prior litigations.
Management guidance marginsKey Risks
Prolonged Middle East conflict disrupting exports and raw material supply
The West Asia war has shut ~10% of revenue from Middle East energy exports and caused >60% spike in key raw material prices, with full Q1 impact yet to be felt.
high · management_commentaryElevated working capital and debt levels
Net debt rose to ₹4,300 crore (3.6x EBITDA) due to higher raw material prices and longer export transit times; normalization may take time.
medium · analyst_questionMargin pressure in agrochemical segment from Chinese competition
Despite some recovery in select chains, agrochemical margins remain under pressure from Chinese oversupply; broad-based recovery uncertain.
medium · analyst_questionDelay in Zone 4 commissioning impacting EBITDA target timeline
Zone 4 projects delayed by 3-4 months due to labor shortages, potentially pushing back the targeted ₹300-450 crore EBITDA contribution from these assets.
medium · management_commentaryNotable Quotes
The quarter under review was defined by a complex and dynamic global landscape. The escalation of geopolitical tensions in the Middle East has led to disruptions across global supply chains impacting trade flows, logistics timelines and input cost structures.
Our ability to deliver extremely reliable and safe operations in complicated chemistries in the most competitive manner – that's the value proposition that we offer.
I think the situation is a serious enough where it is a challenge today, but at the same time we are putting in lot of efforts and actions to mitigate the impact to the best extent possible.
Frequently Asked Questions
What was Aarti Industries's revenue in Q4 FY26?
Aarti Industries reported revenue of ₹2,205 Cr in Q4 FY26, representing a +9% change compared to the same quarter last year.
What guidance did Aarti Industries management give for FY27?
FY27 capex guidance of ₹700-800 crore: Management guided FY27 capex in the range of ₹700-800 crore, down from ₹1,125 crore in FY26, focusing on completion of Zone 4 and new contract capex. Zone 4 commissioning during FY27: All Zone 4 assets (MTP, PA, calcium chloride, five chemistry blocks) will be commissioned during FY27, with initial revenue from Q2 FY27. Net debt to decline in FY27: Management expects net debt to decline in FY27 as capex intensity reduces and operating cash flows improve, despite working capital pressures. Effective tax rate of 9-15% in FY27: Tax rate expected in the range of 9-15% for FY27, benefiting from depreciation on Zone 4 assets and resolution of prior litigations.
What are the key risks for Aarti Industries in FY27?
Key risks include Prolonged Middle East conflict disrupting exports and raw material supply — The West Asia war has shut ~10% of revenue from Middle East energy exports and caused >60% spike in key raw material prices, with full Q1 impact yet to be felt.; Elevated working capital and debt levels — Net debt rose to ₹4,300 crore (3.6x EBITDA) due to higher raw material prices and longer export transit times; normalization may take time.; Margin pressure in agrochemical segment from Chinese competition — Despite some recovery in select chains, agrochemical margins remain under pressure from Chinese oversupply; broad-based recovery uncertain.; Delay in Zone 4 commissioning impacting EBITDA target timeline — Zone 4 projects delayed by 3-4 months due to labor shortages, potentially pushing back the targeted ₹300-450 crore EBITDA contribution from these assets..
Did Aarti Industries meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Aarti Industries Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.