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Revenue
₹720 Cr
verified against source
Revenue YoY
9%
reported change
EBITDA
₹342 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
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.
Colored figures show movement against the previous available record.
Guidance to track
- 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.
- All Zone 4 assets (MTP, PA, calcium chloride, five chemistry blocks) will be commissioned during FY27, with initial revenue from Q2 FY27.
- Management expects net debt to decline in FY27 as capex intensity reduces and operating cash flows improve, despite working capital pressures.
- Tax rate expected in the range of 9-15% for FY27, benefiting from depreciation on Zone 4 assets and resolution of prior litigations.
Risks flagged
- 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.
- 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.
- Despite some recovery in select chains, agrochemical margins remain under pressure from Chinese oversupply; broad-based recovery uncertain.
- 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.
Key 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.
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