Aarti Industries Delivers Robust Sequential Growth in Q3 FY26 Amid Global Volatility; Advances Portfolio Integration and Balanced Growth Strategy

PRNewswire
Mumbai (Maharashtra) [India], February 3: Aarti Industries Limited (AIL), a leading global speciality chemicals company, today announced its unaudited consolidated financial results for the quarter and nine months ended December 31, 2025.
Q3FY26 unfolded in a challenging and dynamic global operating environment, marked by persistent geopolitical, evolving trade realignments and continued uncertainty around global demand. Trade actions and tariff-related disruptions in the U.S. remained a key overhang for the sector, necessitating agility and swift recalibration across markets. These actions resulted in selective margin pressure during the quarter, though proactive market rebalancing and operating discipline helped mitigate the overall impact.

Financial Highlights (Q3FY26)
- Revenue stood at Rs. 2,492 crore, an increase of 11% Q-o-Q driven by volume growth across various value chains. During the quarter, the company witnessed the resumption of US volumes leading to higher capacity utilisation, better operating leverages, while absorbing part of US tariffs.
- As a result, EBITDA surged to Rs. 323 crore, marking a 11% Q-o-Q increase. The company has provided for a one time impact on account of implementation of the new labour code of about Rs 15 crs as an exceptional expenses for the period. The company awaits the state and central government notification to refine its working and hence will take appropriate provisions, if needed, once further clarity is available.
- Profit After Tax for the quarter, driven by higher operational performances, surged to Rs. 133 crore, an increase of 25% Q-o-Q, reflecting robust operating performances supported by the increasing contribution from the cost savings initiatives and economics of scale at higher capacity utilisation.
Commenting on the performance, Mr. Suyog Kotecha, Executive Director and Chief Executive Officer, said:
"The global operating environment continues to remain volatile, shaped by geopolitical uncertainties and ongoing trade realignments. Despite these challenges, Aarti Industries has delivered resilient performance, supported by proactive market diversification and a calibrated approach to the U.S. Our ability to sustain volumes and maintain customer engagement reflects the strength of our integrated portfolio and execution discipline.
Our strategic focus is shifting from bulk, product-led growth to a more streamlined, knowledge-driven and quality-focused portfolio. We are actively managing volatility through downstream integration, portfolio diversification and a sharper focus on higher-value chemistries, while deepening customer engagements through chemistry-led, R&D-oriented solutions. With Jhagadia, Zone IV emerging as a transformational growth platform, strong demand visibility for new products and disciplined capital allocation, we remain confident in our long-term growth trajectory. Recent Policy developments in China and ongoing progress on trade agreements such as the EU FTA are expected to support margin recovery and long-term growth opportunities."
Operational and Business Highlights
Energy Business: The energy portfolio, led by MMA, remained a key growth driver during the quarter. Volumes remained robust, supported by steady demand and favourable feedstock spreads.
Agrochemicals : Volumes remained stable and continue to show recovery; however, pricing continues to be subdued.
Dyes, Pigments and Printing Inks : Dyes, Pigments & Printing Inks applications volume remains steady and is expected to improve going forward.
Polymers : Polymer & Additives applications were impacted in the US market with full recovery linked to improving trade conditions. DCB chain continued to show signs of volume and margin recovery in the non-US market during the quarter.
Projects Update
During the current calendar year, the Company expects to commission its various process blocks including the multipurpose plant (MPP) at Zone IV in a phased manner starting from Q4FY26. These projects are being commissioned using in-house, indigenous technologies, highlighting AIL's strong process engineering and R&D capabilities. The execution related to fast-track projects e.g., PEDA, MMA debottlenecking are progressing well and expected to be coming on stream within the next 3 months.
Outlook
Despite a challenging external environment, Aarti Industries demonstrated resilient performance and remains well-positioned for sustainable, long-term growth. The Company's focus on portfolio quality, downstream integration, R&D-led product development and disciplined capital allocation provides a strong foundation for value creation as we move forward. This robust strategic framework ensures that Aarti Industries is not just navigating the current landscape, but is actively shaping a more prosperous and innovative future.
About Aarti Industries Limited (AIL):
Aarti Industries Limited (AIL) is one of the world's leading speciality chemical companies, combining process chemistry with scale-up engineering competence. The Company globally ranks 1st-4th for 75% of its portfolio and is a 'Partner of Choice' for various Major
Global & Domestic Customers. At the heart of AIL's operations is a dedication to sustainable development, seamlessly integrating environmental stewardship into its business model by leveraging cutting-edge technologies and a robust infrastructure to deliver
solutions that balance economic growth with ecological responsibility. The Company's commitment to innovative and sustainable practices, along with its immense care for its people and the planet, defines its path to success.
Website- www.aarti-industries.com
LinkedIn- https://www.linkedin.com/company/aarti-industries/
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