Aarti Industries Limited (AIL), a leading global speciality chemicals company, has reported sustained growth in the second quarter of FY27, with higher volumes, export demand and effective raw material cost pass-through supporting its financial performance. The company recorded its highest-ever quarterly EBITDA of ₹418 crore, crossing the ₹400-crore mark for the first time.
Volumes increased by over 30% during the quarter. Revenue from operations stood at ₹3,887 crore, registering growth of 73% year-on-year and 48% sequentially. EBITDA rose 44% to ₹418 crore from ₹291 crore in Q2 FY26, while profit after tax increased 60% to ₹169 crore. For the first half of FY27, revenue reached ₹6,513 crore, EBITDA stood at ₹802 crore and PAT was ₹324 crore.
Higher export demand and the company’s pass-through model supported revenue growth amid elevated raw material prices. While the model enabled AIL to transfer increased input costs to customers and protect absolute EBITDA, margins remained under pressure.
Changing global trade dynamics are also creating opportunities for Indian speciality chemical manufacturers. China’s efforts to rationalise industry capacity and India’s expanding trade agreements with developed markets, including the UK and Europe, could improve India’s position in global supply chains. AIL expects to benefit from these developments through its integrated manufacturing capabilities and established customer relationships. Improvements in volumes and margins are already visible across the NCB value chain, with potential for similar momentum in DCB, NT and other value chains.
The company is progressing with its Zone IV expansion following the commissioning of Phase I in September 2026. The Calcium Chloride facility and part of the Multipurpose Plant have commenced operations, with stabilisation, customer qualification and commercialisation activities underway. Additional capacities are scheduled for commissioning during Q3 and Q4 FY27. Zone IV is expected to support portfolio diversification and growth in value-added chemistries over the next one to two years.
On October 13, 2026, AIL entered into a manufacturing and supply agreement with a global speciality chemicals company. The agreement spans more than 10 years and carries an estimated cumulative revenue potential of approximately ₹1,500 crore. Commercial operations at the proposed dedicated facility are targeted for FY29. The Augene Chemicals joint venture is progressing towards commercial production, while the Circularity JV remains on track for commissioning in H2 FY27.
AIL has also expanded its fuel additives capacity from 290 KTPA to 360 KTPA, supporting higher volumes during the quarter. Its operational priorities include cost optimisation, yield improvement, energy efficiency and digital-led improvements across manufacturing operations.
Suyog Kotecha, Managing Director and CEO, Aarti Industries Limited, said the company’s investments in market participation, customer partnerships and manufacturing capabilities were beginning to translate into stronger business momentum. He added that the next phase would focus on increasing customer share, utilising new capacities, improving cash generation and maintaining capital efficiency. AIL expects growth to be supported by export demand, customer engagements and the commercialisation of new capacities, while continuing to focus on asset utilisation, working capital management and operating efficiency.
Established in 1984, Aarti Industries Limited is a global speciality chemicals company with more than four decades of expertise in complex process chemistries, scale-up and manufacturing. It serves global and domestic customers across diverse industries through a portfolio of over 100 products, supported by 16 manufacturing plants, four R&D centres and more than 250 scientists. The company has received the EcoVadis Platinum Medal, the 2026 Gallup Exceptional Workplace Award and the British Safety Council’s Sword of Honour for its Aarti Research and Technology Centre, which also received a Five-Star rating in its occupational health and safety audit.
