Aarti Industries LimitedQ2 FY27 Results & Financial Update

Aarti Industries Limited: Q2 FY27 consolidated results and company financials – revenue ₹6,055.10 Cr, PAT ₹323.53 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.

NSE: AARTIINDPublished 30 Oct 2026Updated 30 Oct 2026~6 min read
Quarter at a glanceCurrent reported figures.Change figures appear when a comparable reported period is available.
Revenue from operations₹6,055.10 CrReported Q2 FY27
Profit after tax₹323.53 CrReported Q2 FY27
Sequential change+108.7%Quarter-on-quarter

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Quarterly Results AnalysisExplore Aarti Industries Q2 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.

Quarter overview

Quarterly earnings analysis

01

Aarti Industries Limited posted a consolidated revenue of 6,055.10 crore INR for the quarter ended September 30, 2026, alongside a consolidated profit after tax of 323.53 crore INR, reflecting a sequential expansion from the preceding quarter ended June 30, 2026.

02

Total consolidated income for the quarter reached 6,065.20 crore INR, supported by 10.10 crore INR in other income, while total expenses aggregated to 5,680.90 crore INR across material costs, employee benefits, and operational overheads.

03

Consolidated profit before tax (PBT) stood at 384.30 crore INR after accounting for finance costs of 170.88 crore INR and depreciation and amortization expenses of 248.99 crore INR.

04

Tax expenses for the quarter were recorded at 59.11 crore INR, leading to a consolidated net profit from ordinary activities after tax of 324.23 crore INR before minority adjustments.

05

Basic and diluted consolidated earnings per share (EPS) for the period were reported at 8.92 and 8.91 respectively, based on a paid-up equity share capital of 181 crore INR with a face value of 5 INR per share.

06

The company maintained a consolidated operating margin of 10.56% and a net profit margin of 4.39% for the quarter ended September 30, 2026, compared to an operating margin of 14.54% and net profit margin of 5.89% in the June 2026 quarter.

01 · Business model

What does Aarti Industries do?

Aarti Industries Limited operates primarily in the specialty chemicals sector, manufacturing and supplying a diversified portfolio of chemistries, intermediates, and specialty products for various downstream industries.

The company's operational footprint includes multiple production facilities and subsidiaries spanning domestic and international markets, serving end-use applications across agrochemicals, pharmaceuticals, polymers, pigments, and additives.

Aarti Industries functions through an integrated business model that emphasizes complex chemical transformations, custom synthesis, and process innovation to cater to global and domestic client bases.

02 · Historical context

What shaped the business before this quarter

Business evolution

In the previous financial year ended March 31, 2026, the company recorded exceptional items relating to historic income tax relief, provisions for land advances, and statutory impacts under new labour codes.

03 · Financial snapshot

Current quarter vs the available comparable

MetricQ2 FY27Previous quarter
Revenue from operations₹6,055.10 Cr₹2,387.00 Cr
Total income₹6,065.20 Cr₹2,390.00 Cr
Profit before tax₹384.30 Cr₹180.00 Cr
Profit after tax₹323.53 Cr₹155.00 Cr
EPS₹8.92₹4.26

Financial interpretation

What the reported numbers mean

Profit conversion

Profit after tax represented 5.3% of reported quarterly operating revenue. This is a calculated net-profit-to-sales ratio, not a company-reported operating margin. It measures the outcome after expenses and tax; it does not, by itself, establish how margins changed versus another period.

Pre-tax earnings

Profit before tax was equivalent to 6.3% of quarterly operating revenue. The distinction between pre-tax and post-tax profit matters when interpreting earnings; neither ratio identifies an underlying cost driver without a properly matched comparative period.

Operating revenue versus total income

Total income exceeded operating revenue by ₹10.10 crore. This is the disclosed difference between the two lines, not incremental sales. The distinction matters when assessing how much of the quarter’s reported income came from the operating top line.

Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.

04 · Why it moved

Why the quarter looked the way it did

What drove revenue

Consolidated Gross and Net Revenue

Consolidated gross revenue from operations reached 3,887 crore INR for Q2 FY27, which, after deducting 218 crore INR of GST collected, resulted in net revenue from operations of 3,668 crore INR.

Other Income Contribution

Other income contributed 7 crore INR to the consolidated top line during the quarter ended September 30, 2026.

What drove margins

Material and Inventory Costs

Cost of materials consumed for the quarter stood at 2,569 crore INR, with purchases of stock-in-trade at 328 crore INR and a negative inventory adjustment of 266 crore INR reflecting inventory changes.

Operating and Overhead Expenses

Other expenses aggregated to 490 crore INR on a consolidated basis, alongside employee benefits expense of 124 crore INR, finance costs of 88 crore INR, and depreciation and amortisation charges of 125 crore INR.

05 · Segments, products & geography

Which parts of the business are doing the work

Segments and products

Single Reportable Segment

The company confirms that it operates within a single primary reportable segment, which is Specialty Chemicals.

06 · Capacity, projects & execution

What is being built, commissioned or delivered

Projects, capex and execution

Capital Work-in-Progress

Consolidated capital work-in-progress stood at 2,222 crore INR as of September 30, 2026, compared to 2,030 crore INR as of March 31, 2026.

07 · Strategy & new businesses

How the company is trying to change its growth mix

Subsidiary and Joint Venture Structure

As of September 30, 2026, the company holds seven direct subsidiaries, one indirect subsidiary, and two joint ventures.

Performance Stock Option Plan

A total of 14,669 equity shares of 5 INR each were issued and allotted under the 'Aarti Industries Limited Performance Stock Option Plan 2022' (PSOP 2022) during the quarter, increasing issued and paid-up share capital.

08 · Reported developments

What changed operationally

Sequential Profitability Growth

Consolidated net profit after tax attributable to owners increased to 168 crore INR for Q2 FY27 from 155 crore INR in Q1 FY27.

09 · Items worth noticing

The line items that can distort a quick read

Debenture Conversion Impact

Aarti Bharuch Limited converted OCDs into equity shares, generating a non-recurring carrying value difference of 5 crore INR recognised under exceptional items.

10 · Cash flow & balance sheet

Profit is one thing. Cash and funding tell another part of the story.

Operating cash flow₹398.00 CrHalf Year Ended September 30, 2026
Capital expenditure₹-512.00 CrHalf Year Ended September 30, 2026
Operating Cash Flow

Net cash flow from operating activities for the half year ended September 30, 2026, was 398 crore INR on a consolidated basis.

Investing and Financing Cash Flows

Net cash used in investing activities was 534 crore INR for the half year ended September 30, 2026, while net cash flow from financing activities was 21 crore INR.

Capital allocation & funding

Credit Ratings and Commercial Papers

The company retained its long-term issuer and bank facilities credit ratings of AA/Negative from Crisil Limited and India Ratings and Research Private Limited, and its commercial papers outstanding at 600 crore INR were rated A1+.

Borrowings Breakdown

Consolidated non-current borrowings stood at 2,005 crore INR and current borrowings stood at 3,142 crore INR as of September 30, 2026.

11 · Beyond the numbers

What changed beyond the numbers

Reported update

Exceptional Items

During the quarter ended September 30, 2026, subsidiary Aarti Bharuch Limited converted Optionally Convertible Debentures into equity shares, resulting in a non-recurring carrying value difference of 5 crore INR reported under exceptional items.

12 · Key Q&A

The quarter, answered directly

What does Aarti Industries do?

Aarti Industries Limited operates primarily in the specialty chemicals sector, manufacturing and supplying a diversified portfolio of chemistries, intermediates, and specialty products for various downstream industries.

What is the clearest takeaway from Q2 FY27?

Aarti Industries Limited posted a consolidated revenue of 6,055.10 crore INR for the quarter ended September 30, 2026, alongside a consolidated profit after tax of 323.53 crore INR, reflecting a sequential expansion from the preceding quarter ended June 30, 2026.

What drove revenue or demand?

Consolidated gross revenue from operations reached 3,887 crore INR for Q2 FY27, which, after deducting 218 crore INR of GST collected, resulted in net revenue from operations of 3,668 crore INR.

What mattered most for margins or profitability?

Cost of materials consumed for the quarter stood at 2,569 crore INR, with purchases of stock-in-trade at 328 crore INR and a negative inventory adjustment of 266 crore INR reflecting inventory changes.

What changed operationally beyond the headline numbers?

Consolidated capital work-in-progress stood at 2,222 crore INR as of September 30, 2026, compared to 2,030 crore INR as of March 31, 2026.

What should the next disclosure help confirm?

Monitor the progression of capital work-in-progress, which stood at 2,222 crore INR, toward operational commissioning.

13 · Scenario calculator

Earnings sensitivity: what if growth and margins change?

Starting point

Build your own next-quarter scenario

Reported values are prefilled where a comparable basis is available. Otherwise, the field starts at 0. You can overwrite every field.

Example: enter 10 for 10% revenue growth. Enter -100 for a 1 percentage-point margin decline.

Scenario output
Scenario revenue / income₹0 cr
Scenario profit after tax₹0 cr
Profit change vs base₹0 cr (0%)
Scenario margin0%
Growth needed to keep profit flat after this margin move0%

The calculator holds the selected margin basis constant except for the basis-point adjustment you enter. It does not estimate tax, finance cost, dilution, working capital, valuation or share price.

14 · Next filing checkpoints

What the next disclosure can confirm or change

  1. 01

    Capital Expenditure Execution: Monitor the progression of capital work-in-progress, which stood at 2,222 crore INR, toward operational commissioning.

  2. 02

    Debt and Working Capital Management: Track the utilisation and repayment schedules of commercial papers and short-term/long-term borrowings.

Learn the metrics

Need the concepts first?

Use Nivata’s plain-English guides to understand the accounting terms used in this brief before interpreting them.

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