Aarti Industries shares surge over 7% after profit more than doubles in September quarter

Shares of the country's leading chemical maker, Aarti Industries, rose as much as 7.43% to hit an intraday high of ₹419.50 on the National Stock Exchange a day after it reported September quarter earnings. On the BSE, Aarti Industries touched an intraday high of ₹419.60.

Aarti Industries post market hours on Thursday reported consolidated net profit of ₹106 crore in the second quarter of current financial year, marking an upside of 104% from ₹52 crore in the same period last year.

The company spent ₹267 crore on capital expenditure (CAPEX) in the second quarter and for the current financial year it is expected to remain below ₹1,000 crore, reflecting continued capital discipline, Aarti Industries said.

Its revenue from operations during the quarter rose 29% to ₹2,100 crore from ₹1,628 crore in the year-ago period.

Aarti Industries reported strong operational performance as its EBITDA (earnings before interest, taxes, depreciation and amortization) also known as operating profit advanced 48% to ₹291 crore and its operating profit margin expanded by 180 basis points to 13.86%.

The gasoline–naphtha crack remained strong in Q2, supporting blending economics. US tariffs weighed on volumes and margins, with renegotiations underway to maintain demand. Strategic efforts continue to expand the MMA customer base and geographic reach amid rising competition from Indian and Chinese players, Aarti Industries said in a press release.

Aarti Industries said that following US tariff implementation on India in August it is diversifying its business to Europe, Africa and Middle East.

“This quarter reflected the inherent resilience and agility of our diversified portfolio. Despite US tariff headwinds, our strong customer engagement and proactive regional rebalancing helped us maintain the momentum. We are expanding our footprint in Europe, the Middle East, and Africa while optimising our US strategy to ensure long-term competitiveness,” said Suyog Kotecha, executive director and chief executive officer.

“With key capacity additions nearing completion, Aarti Industries is well-positioned to capitalise on the next phase of global recovery. Our focus remains clear: to de-risk operations, accelerate innovation in high-growth chemistries, and maintain strong financial discipline. As trade flows stabilise and demand revives, we anticipate steady margin expansion across our portfolio," Kotecha added.

Going ahead Aarti Industries expects a steady improvement in operating margins through FY27, supported by new capacity ramp-ups and a diversified global mix as raw-material costs stabilise and logistics normalise.

As of 11:01 am, Aarti Industries shares traded 5.4% higher at ₹411.60, outperforming the NIFTY500 index which was down 0.5%.

Disclaimer: This article is purely for informational purposes and should not be considered investment advice from Upstox. Please consult with a financial advisor before making any investment decisions.

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