Mumbai-based speciality chemicals manufacturer Aarti Industries on Thursday, July 31, reported a steep drop in its profit for the April-June quarter. Net profit tumbled 68.6% to ₹43 crore over the same period last year.
Revenue for the first quarter FY26 stood at ₹1,679 crore, down 9.6% from ₹1,857 crore a year ago.
The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased 30.5% to ₹216 crore from ₹311 crore year-on-year. Consequently, the EBITDA margin contracted to 12.8% from 16.7% in Q1FY25.
Only half of the 24 analysts tracking the company have a ‘buy’ rating for the stock, according to Bloomberg data. The consensus target price for the stock is ₹489.19, with an upside of over 16% from the last closing price.
On July 2, the company’s Executive Director and CEO, Suyog Kotecha, told CNBC-TV18 that the agrochemicals industry was experiencing a volume-led growth even as margin pressures persist.
In the financial year ended March 2025, the ₹ ₹17,493-crore ($2 billion) agrochemical maker’s revenue grew by 15%. but the EBITDA grew only 3%, largely due to competitive pressures from China.
The company spent ₹1,325 crore in expanding production capacity; this year, it will spend ₹1,000 crore on greenfield investments in FY25.
Shares of the company closed at ₹420.1down 5.75% on the BSE today (July 31). The stock has declined as much as 13% over the last month.
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