Aarti Industries Q2 Profit Rises 60% to ₹169 Crore

reported a strong Q2 FY27 performance, with consolidated profit after tax (PAT) increasing 60% year-on-year to ₹169 crore, compared with ₹106 crore in Q2 FY26. Revenue from operations surged 73% to ₹3,887 crore, while EBITDA grew 44% to ₹418 crore, crossing the ₹400 crore mark for the first time. The growth was supported by a strong improvement in volumes, which increased by more than 30%, along with higher export demand and effective pass-through of elevated raw-material costs. The company highlighted that its quarterly revenue and EBITDA were at record levels. However, the pass-through of higher input costs kept EBITDA margins under pressure despite growth in absolute EBITDA. For the first half of FY27, revenue stood at ₹6,513 crore, EBITDA at ₹802 crore and PAT at ₹324 crore. Aarti Industries is also expanding its long-term growth opportunities. It has entered into a manufacturing and supply agreement with a global speciality chemicals company, with an estimated cumulative revenue potential of approximately ₹1,500 crore over more than 10 years. Commercial operations at the proposed dedicated facility are targeted for FY29. From a research perspective, volume growth, export demand and new customer partnerships are encouraging. Investors should monitor whether the company can sustain volume momentum, improve margins, commercialise new capacities on schedule and convert higher earnings into stronger cash flows. Working-capital management and capital efficiency will also remain important. Learning Takeaway: In speciality chemicals, revenue growth driven by higher volumes is more meaningful when accompanied by sustainable EBITDA growth, margin improvement and efficient capital utilisation. Investors should track both absolute earnings and the quality of those earnings. Disclosure: This post is for educational purposes only and does not constitute investment advice. Any holdings or conflicts of interest should be disclosed separately.