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.
neutral
medium
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Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
67%Questions answered2Evaded / deflected12Questions audited
Answered
High priority
Was there an inventory gain in March causing gross margin expansion?
Asked by Archid Zoshi, Noama Institutional Equities
Management quantified the FX gain and stated inventory gain was not significant.
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Question
I just wanted to understand we have had a gross margin expansion. Would there be an element of an inventory gain that we might have booked especially during the month of March.
Management (likely CFO or CEO)
there is a FX gain of roughly around 10 crores on inventory... not a significant impact of inventory gain in the last quarter but from a FX standpoint there was a gain of roughly 10 crores.
Answered
High priority
What is the Middle East energy portfolio exposure?
Asked by Archid Zoshi, Noama Institutional Equities
Management provided a clear percentage of revenue exposure.
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Question
the exposure that we have in our energy portfolio specifically in the Middle East and also at the company level if you can throw some number on that.
Management
on an average yearly average basis roughly 9 to 10% of our revenue came from Middle East which is dominantly in energy application.
Answered
High priority
What is the balance capex and commissioning timeline for MPPP and PEDA?
Asked by Archid Zoshi, Noama Institutional Equities
Management gave specific timelines and commissioning order.
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Question
what would be the balance capex that we plan to commission in this year? So if you could just elaborate on the kind of timelines of commissioning of these capexes and when can we expect revenue accruals.
Management
the entire zone 4... will get commissioned during FY27. The first two... calcium chloride and the multi-purpose plant... within this quarter we should be able to declare it commissioned.
Partial answer
Medium priority
Is high utilization an industry phenomenon or specific to Aarti?
Asked by Arun Prasad, Aventus Park
Management avoided commenting on industry-wide trends but explained their own strategy.
declined to comment on industry
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Question
if I look at the Q4 volumes and annualize it it's close to 100%. So is this a industrywide phenomenon or is it just because we are at this kind of utilizations because we didn't have any supply last cycle.
Management
it would be bit unfair for me to comment whether this is industry wise phenomena. I think at AIL... improving utilization levels of all of our existing asset has been a deliberate strategy.
Partial answer
High priority
Should we expect pricing recovery and margin expansion from high utilization?
Asked by Arun Prasad, Aventus Park
Management acknowledged pockets of recovery but gave no overall expectation.
no specific guidance
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Question
this kind of utilization usually leads to a pricing recovery and a margin expansion because of the tight supply demand balance. So should we expect some kind of a pricing related upsides from our existing portfolio?
Management
there are some value chains where there is a pricing recovery... but I would hesitate to say that across the portfolio we are seeing margin recovery or pricing corrections.
Evasive
Medium priority
Is NMA gaining over NTB due to elevated crude prices?
Asked by Arun Prasad, Aventus Park
Management did not confirm or deny the trend, citing multiple factors.
no direct answercomplexity cited
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Question
on a elevated crude prices our understanding is that NMA scores over the say probably the traditional NTB. Are you seeing this playing out?
Management
on the MMA economics frankly a lot of complicated answer... there are multiple factors which play out... our ability to offer certain pricing to customers that also gets impacted.
Partial answer
Medium priority
What is the breakup of FY27 capex of 750-800 crores?
Asked by Arun Prasad, Aventus Park
Management gave broad categories but no precise split.
no exact breakup
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Question
any breakup approximate ballpark breakup of the project wise 750 to 800 crores.
Management
significant part of it will still go in completion of zone 4 and part of it will also go to the new long-term contract... and then we have a sort of yearly run rate of 150 that goes into assessment.
Partial answer
Medium priority
Why is the D segment slowing down after peaking?
Asked by Adita Ketan, Smith's Institutional Equities
Management gave a stable share but did not explain the slowdown.
no specific reason for slowdown
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Question
it seems like the D segment is now slowing down after peaking out the last few quarters. Is there any changes into the structure of the business or volumes in the global markets or Indian markets are slowing down?
Management
overall if you look at our share of business in dyes, pigments and printing inks... it remains in the range of 10 to 11%... there are multiple trends within the segment at a product level which differ.
Answered
High priority
Why is debt at 49 billion despite cash and lower capex?
Asked by Adita Ketan, Smith's Institutional Equities
Management explained the cash was a timing issue and gave net debt figure.
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Question
debt to reach around 49 billion in this fiscal year. So highest over when we look at the history. Any particular reason?
Management
the cash which you see is more like a one-off kind of a situation... on the net debt basis we are still at around 4,300 crores. A good part of this maybe around 250 to 300 crores is purely because of the working capital increase.
Answered
High priority
Why is there a disconnect between production increase and revenue decline?
Asked by Nitesh Dud, Anandraati Institutional Equity
Management clearly attributed the disconnect to transit inventory.
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Question
there is a higher inventory created... that's also visible from the disconnect between the increase in the production figures across the products and the sequential revenue decline... what explains this disconnect?
Management
certain materials being moved out from India were exported out and are on seas reaching to our customers and that is why they have been in transit inventories... revenue from that part is not recognized.
Evasive
High priority
Will the delay in zone 4 cause slippage on EBITDA guidance?
Asked by Nitesh Dud, Anandraati Institutional Equity
Management did not confirm or deny slippage, only said they are working on it.
no commitment to guidancemitigation mentioned
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Question
with this delay in the zone 4 capex by a few months any slippages on the guided EBITDA numbers or probably you could stay closer to the lower end of the EBITDA range?
Management
our target as a management team still remains on how to do catch up even with that three to four months of delay... we are figuring out strategies to mitigate that impact.
Answered
High priority
What is the FX exposure and hedging policy?
Asked by Nitesh Dud, Anandraati Institutional Equity
Management quantified the unhedged exposure and explained the accounting treatment.
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Question
this 39 crores of revaluation loss on FX looks slightly on the higher side for a particular quarter. Can you give some color on the total exposures and the hedging policies there.
Management
we have roughly around $87 million of an FX which is unhedged and is open... rupee depreciated by close to 5 rupees... from an accounting point of view that gains are accounted only once it is material as well as this loss is accounted now.