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Elevated working capital days
View Risks →Aether Industries Limited — Q4 FY26
Aether Industries reported a strong FY26 with consolidated revenue of ₹1,160 crore (+38% YoY) and EBITDA of ₹355 crore (+53% YoY), driven by robust demand in large-scale manufacturing (LSM) and contract manufacturing (CM).
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Aether Industries reported a strong FY26 with consolidated revenue of ₹1,160 crore (+38% YoY) and EBITDA of ₹355 crore (+53% YoY), driven by robust demand in large-scale manufacturing (LSM) and contract manufacturing (CM). EBITDA margin expanded 300 bps to 31% on operating leverage and favorable pricing. Q4 revenue of ₹351 crore was impacted by one-offs (₹7 crore inventory write-off, year-end provisions) but LSM pricing rose 20% YoY and 18% QoQ, sustained into Q2 FY27. Management guided for stable margins (29-30% EBITDA, 19-20% PAT) and expects CRAMS/CM to reach 70% of sales over 3-4 years. Key growth levers include site 5 commissioning (3 new products), site 3++ ramp-up, and R&D expansion. Risk: elevated working capital (179 days) may pressure cash flows if revenue ramp-up slows.
एथर इंडस्ट्रीज ने वित्त वर्ष 2026 में शानदार प्रदर्शन किया। कंपनी की कुल आय ₹1,160 करोड़ रही, जो पिछले साल से 38% ज्यादा है। कमाई (EBITDA) ₹355 करोड़ रही, जो 53% बढ़ी। इसकी वजह बड़े पैमाने पर उत्पादन और ठेका निर्माण की मजबूत मांग है। कंपनी का मुनाफा मार्जिन 31% हो गया, जो पहले 28% था। चौथी तिमाही में ₹351 करोड़ की आय हुई, लेकिन कुछ एकमुश्त खर्चों (जैसे ₹7 करोड़ का माल बट्टे खाते डालना) से इसे झटका लगा। हालांकि, बड़े उत्पादन की कीमतें पिछले साल से 20% और पिछली तिमाही से 18% बढ़ी हैं। कंपनी का अनुमान है कि आने वाले समय में मार्जिन 29-30% और शुद्ध मुनाफा 19-20% रहेगा। अगले 3-4 साल में ठेका निर्माण से 70% बिक्री होने की उम्मीद है। जोखिम: कंपनी का कार्यशील पूंजी चक्र 179 दिन है, जो नकदी प्रवाह पर दबाव डाल सकता है।
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CRAMS + CM revenue share
55%
+3pp YoY
CRAMS and CM together contributed 55% of total revenue in FY26, up from 52% in FY25.
Site 4 revenue
₹220 crore
+340% YoY
Site 4 revenue grew 4x from ₹50 crore to ₹220 crore, now 21% of total sales.
New clients added
19
+19 clients
Added 19 marquee clients in FY26, with 50+ certification audits completed.
Working capital days
179 days
-15 days YoY
Working capital cycle reduced from 194 days to 179 days; target 160 days by FY27 end.
What Changed vs Last Quarter
NEW
EBITDA margin guidance of 29-30% for FY27
Management expects EBITDA margins to remain stable between 29% and 30% in FY27, with PAT margins around 19-20%.
NEW
Capex of ₹3,000-3,500 crore for FY27
Capital expenditure for FY27 is guided at ₹3,000-3,500 million, primarily for site 5 and the new R&D facility.
NEW
Working capital target of 160 days by FY27 end
Management targets reducing working capital days to around 160 by end of FY27, from 179 days as of March 2026.
NEW
CRAMS + CM to reach 70% of revenue in 3-4 years
Management reiterated the target of 70% revenue from CRAMS and CM business models over the next 3-4 years, up from 55% in FY26.
DROPPED
Site 3+ and Site 5 commercial production in Q4 FY26
Commercial production from Site 3+ and first two blocks of Site 5 will commence shortly, with water/solvent trials already started.
DROPPED
Target 70% revenue from CRAMS/CM over time
Management targets 70% of revenue from CRAMS and contract manufacturing, with 30% from large-scale manufacturing.
DROPPED
Site 3+ capacity utilization 45-50% in FY27
For FY27, Site 3+ is expected to operate at 45-50% capacity utilization in its first year.
DROPPED
Site 5 capacity utilization 35-40% in FY27
Site 5's first two blocks are expected to run at 35-40% capacity utilization in FY27.
NEW RISK
Fire incident at external warehouse
A fire at an external warehouse on March 11, 2026 caused a ₹7 crore inventory write-off, raising concerns about operational risk management.
NEW RISK
Debt increase from capex
Debt is expected to rise by ₹200-250 crore in FY27 as capex ramps up, potentially increasing interest costs and leverage.
NEW RISK
LSM volume decline due to logistics
Q4 LSM revenue fell sequentially due to March logistics issues; any recurrence could impact near-term sales.
RISK GONE
Pricing pressure from Chinese competition in LSM
Management noted that Chinese competitors offer aggressive payment terms (180-250 days), pressuring working capital. No immediate pricing improvement seen despite anti-dumping trends.
RISK GONE
Lithium battery chemicals project on hold
The previously announced partnership for lithium battery electrolyte additives is paused due to aggressive pricing from China, making it uneconomical.
RISK GONE
Dependence on few large CM customers
While management emphasizes strategic partnerships, concentration risk exists with Baker Hughes and Milliken as key CM clients.
Fast read
Guidance and risk preview
Management expects EBITDA margins to remain stable between 29% and 30% in FY27, with PAT margins around 19-20%.
Working capital days at 179 remain high due to inventory buildup for new sites; delay in revenue ramp-up could strain cash flows.
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