AARTI INDUSTRIES Results Analysis-Q3FY26

Operating Revenue for Q3FY26 is Rs. 2,319 Crs., 25.83% growth YoY (Higher volumes across various products such as MMA, NT, DCB, etc.), Total Income is Rs. 2,321 Crs., 25.66% growth YoY, Gross Profit is Rs. 788 Crs., 28.34% growth YoY, EBITDA is Rs. 322 Crs., 38.79% growth YoY, EBITDA Margin is 13.89% Improved by 130 Basis points YoY, PBT Rs. 118 Crs, 195% growth YoY (INR 15.3 cr provision for New Labour Code impact), PAT Rs. 133 Crs, 189% growth YoY (Due to reversal of Mat Credit and deferred tax), Robust performance on all parameters. On QoQ basis Op. Revenue is up by 10.43%, Total Income is up by 10.52%, Gross Profit is up by 8.69%, EBITDA is up by 10.27%, PBT is up by 26.88% (which includes 15.3 Cr. one-time impact of New Labour Code), and PAT is also up by 25.47%. Target EBITDA range of ₹ 1,800-2,200 Cr in 3 years; Debt/EBITDA of <2.5x and ROCE of >15%. Segment Wise Summary : Energy (MMA-led) Segment: Growth engine, debottlenecking, but margin volatility acknowledged Agrochemicals & Pharma Segment: Stable volumes, China-dumping pressure; recovery linked to China policy shift. Polymers Segment: PDCB up on EV-linked PPS demand; PDA pressured by U.S. tariffs, now expected to improve. Benzene/Toluene chemistries Segment: shift in customer engagement model. FY26 capex guided to ~INR 1,100 cr (up from ~INR 1,000 cr) due to “fast-track expansion initiatives for MMA, DCB and addition of PEDA capacity amongst few other new initiatives.” FY27 capex outlook: with Zone 4 commercializing in CY26 and “no other large projects in the pipeline,” management expects FY27 capex to be “significantly lower.” Recently announced US–India Trade deal: “provides a sigh of relief,” expected to “boost the business in the US in coming times.”