Customers base

Geographical wise Revenue

#SALES #GROWTH

In FY25, the sales grew by 14% YoY to ₹7,271 cr mainly led by 17% volume growth. It witnessed decline in price realization during the year. The company witnessed volume uptick across end applications of dyes, pigments, polymer additives and energy, while agrochemicals continued to remain soft. Pricing pressure remained across all product chains during the year.

#EBITDA #GROWTH

In FY25, the EBITDA grew by 2.8% YoY to ₹1,000 cr. The growth was partly offset by increase in raw material cost consumed. including packaging material Out of the total expenses, the raw material cost (Incl. packing material, fuel, stores & spares) constituted ~70% followed by other expenses ~19%, employee benefits expenses ~7% and purchase of stock in trade & change in inventory ~4% of the total expenses.

#PAT #GROWTH

In FY25, the PAT declined by 21% YoY to ₹331 cr because of rise in depreciation cost and finance cost. Depreciation cost increased due commercialization of expanded capacities. to The finance cost was higher due to mark-to-market loss of ₹23 cr on a long-term external commercial borrowing (ECB) loan due to rupee depreciation in Q3 FY25. During the period, there was an exceptional gain of ₹2.3 cr on account of divestment of stake in a stepdown subsidiary, i.e., Nascent Chemical Industries Limited. In FY22, the profit includes termination income and shortfall fees.

#EBITDA #MARGIN

In FY25, the EBITDA margin contracted by 152 bps YoY to 13.8%. The margin contracted due to weak performance in Q2 FY25 and H2 FY25. The company witnessed margin pressures across various product. During the year, the energy end application witnessed lower margins due to pricing pressure.

#ROCE

In FY19, the return on capital employed moderated because of decline in PBIT and increase in capital employed. Capital employed increased mainly because of increase in reserves and higher long term borrowing. In FY22, the ROCE improved because of increased in PBIT supported by termination income. Excluding termination income, PBIT stood at ~₹1,031 cr and ROCE at ~14%. In FY25, the ROCE declined because of decline in PBIT and increased in capital employed led by rise in long term borrowings and increase in reserves.

#ROE

The return on equity also moderated from FY20. In FY22, excluding termination income ROE stood at ~15%. In FY25, ROE declined to ~6% because of decline in net profit.

#COMPANY #POTENTIAL

• The global speciality chemicals market is estimated to grow at a CAGR of 3%-4% to $830-850 billion by FY25. • The Indian chemical industry is witnessing a remarkable transformation. From a $186 billion market in FY20 (around 4% of the global share), it’s projected to reach a staggering $330 billion by FY25. This growth is fueled by a booming specialty chemicals sector, expected to climb at a stellar 11% CAGR, reaching $148 billion by FY25. Notably, this will contribute nearly half (~47%) of the total Indian chemical market value. • The growth would drive by end-user industries like food, automobiles, construction, textiles, and cosmetics. • The increasing pace of urbanization and growing young population with a disposable income will translate into a growing demand for end-user industries such as food processing, personal care and home care. This will add to the growth in the speciality chemicals sector.
• The China plus one strategy of global enterprises, higher domestic and export demand, import substitution on the back of government strategies such as ‘Make in India’ and ‘vocal for local’ and enhanced budgetary allocations augur well for the Indian CASE STUDY

#COMPANY #OUTLOOK

• In FY26, the volume growth would be largely from the existing capacity which has already been stabilized and ramp-up. • The management expects an EBITDA of ~₹1,800-₹2,200 cr by FY28, led by volume ramp-up, cost optimization and capex led growth. • In FY25, the company successfully completed several variable and fixed cost optimization initiatives. Hybrid Power Phase-1 achieved full scale utilization which will help in reducing carbon footprint along with cost savings. • The company expects Para Phenylene Diammine (PDA), Nitro Chloro Benzene (NCB), nitro-toluene (NT) and Ethylation capacity utilization to improve in FY26. The PDA capacity utilization to improve, led by increasing demand in USA because of tariff issue. • The zone-4 projects execution is progressing as per plan and is expected to commission gradually through FY26. Under zone-4 projects, the first block of pilot plant already commissioned. The next block which is of multipurpose plant and calcium chloride plant are expected to commission soon. The remaining block which are mainly of chloro toluene value chain would be commission by Q1 FY27. • The company is focusing on three value chains, i.e., chloro toluene value chain, dichloro toluene value chain and toluene for the fluorination value chain. It has a product portfolio of ~25-30 products under these value chains. These products mainly cater to agrochemical, pharma and dyes market. The domestic and exports split stood at ~60:40. • The company expects the margin to improve from FY26-27 with the commissioning and ramp up of chloro toluene value chain products which has higher margin. • The company signed agreement with Cleanmax & Prozeal for renewable power purchase. Aarti Industries renewable share in total power purchase will exceed 75% and is expected to achieve significant cost savings from Q1 FY27.

Aarti Industries 300-370
Expected level 450
Support 250

Good morning

1458💥💥Long term level hit

1030💥💥Long term level hit

Top 12 dividend stocks under Rs 100⚡️💥

Top performing stocks

16700🔥Long term level hit

Good morning

3869💥💥💥💥

995🚀🚀

Good morning