During the second quarter of fiscal year 2027, Aarti Industries consolidated PAT stood at ₹169 crore, up 60% from ₹106 crore in the bottom line of the most comparable quarter of fiscal 2026. The company posted the highest revenue ever during the quarter through operations that grew by 73% on a year-over-year basis and amounted to ₹3,887 crore, higher than ₹2,100 crore in Q2 FY26. The company generated its operating EBITDA, which crossed the ₹400 crore mark for the first time in its entire history, increasing by 44% on a year-over-year basis to ₹418 crore versus ₹291 crore last year.

Volume expansion and strategic infrastructure commissioning

Top-line growth and full financial results for the quarter were also supported by strong volume growth in excess of 30%. It was primarily fuelled by higher export demand and increased domestic penetration. Absolute revenue and operating profit increased due to the relatively strong pass-through of higher raw material prices through selected product groups. 

The absolute EBITDA growth was 44%, but the margin was down about 311 basis points from 13.86% in Q2 FY26 to 10.75% in Q2 FY27. Management credited this margin suppression to the cost pass-through pricing procedure, which was effective at maintaining the company’s earnings in total dollars and accounted for the higher levels of input prices in total revenues.

Aarti Industries made notable operational progress in the reporting period, with the successful commissioning of Phase 1 at its Zone IV plant in September 2026. This new facility comprises the Calcium Chloride unit and part of the Multipurpose Plant; additional production capacity will be available during the third and fourth quarter of FY27. 

Complementing the rising demand in the world, the company has completed the extension of its fuel additives production capacity from 290 KTPA to 360 KTPA. Aarti Industries also entered into a significant long-term manufacturing and supply pact with a leading global speciality chemicals player, with an aggregated revenue potential of around ₹1,500 crore over 10 years, and plans to commercialize the partnership by FY29.

Half-year performance and executive leadership

Aarti Industries registered consolidated revenue of ₹6513 crore for the first half of the fiscal year ended September 30, 2026, which included consolidated operating EBITDA of ₹802 crore and consolidated total profit after tax of ₹324 crore. 

Analyzing the outcome and further course of action, Managing Director and Chief Executive Officer of the Company Suyog Kotecha noted that India is witnessing growth opportunities in international markets due to changing market dynamics, rationalisation of capacities and growing trade pacts. 

He explained that the leadership team further remains dedicated to materializing these market opportunities into the company’s progressive cash generation, long-term business performance, operationalizing new manufacturing capabilities, and optimizing the overall cash generation across all businesses.

Conclusion

Aarti Industries achieved strong performance in the second quarter of FY27, with its business expanding well across the manufacturing network and beyond, supported by volume growth of over 30% and increased export volumes. The company’s 3,887 crore revenue, alongside a 60% jump in profit after tax to ₹169 crore, has proven to be a healthy business for the company, despite the volatility in global input costs. Aarti Industries has several manufacturing plants scheduled for commissioning at Zone IV, additional manufacturing capacity for fuel additives, and a new 10-year international strategic supply agreement with an estimated value of ₹1,500 crore, which will continue the firm’s position as a leading player in the speciality chemicals market in the world.