Aether Industries Q1 Results: Net profit, revenue, margins show robust growth

Surat-based Aether Industries Ltd on Thursday (July 24) reported a 57% year-on-year increase in its first quarter net profit at ₹47 crore over ₹29.9 crore in Q1FY25. The topline for the June quarter also saw a double-digit jump, with revenue surging 42.2% at ₹256.1 crore over ₹180 crore a year ago.

The company attributed the stellar performance to its recently-announced 10-year contract with Milliken, marking a significant step forward in its contract manufacturing business.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) soared 94% on a YoY basis at ₹78.1 crore. The EBITDA margin widened to 30.47% over last year’s 27.34%.

Aether’s Site 3++ will be fully dedicated to the manufacturing of a key strategic product for Milliken. The site’s expansion is on track, with equipment procurement underway and all approvals secured for a seamless transition. For Milliken, the product under CEM is set to launch, with commissioning targeted in Q4FY26, the company said.

Also read: Aether Industries announces ₹628-crore OFS, sets ₹700 floor price

Segment-wise earnings

While the pharma segment continued to be the biggest revenue contributor for the company in Q1FY26, its share reduced compared to last year. On the other hand, Aether Industries’ revenues from oil & gas and its high-performance photography vertical witnessed a significant increase.

While the domestic business segment contributed 67% to revenue, the export business booked the remaining 33% of the topline. This is a notable turnaround for the company, whose export business contributed over half of the revenues in two quarters earlier in Q3FY25.

In June, brokerage firm Kotak Institutional Equities released a note on the specialty chemicals sector, maintaining a ‘neutral’ stance on the space. It had also trimmed its price target on Aether Industries to ₹890, down from ₹910 earlier.

Shares of Aether Industries closed slightly higher at ₹808.90 on the BSE. The company’s stock has gained as much as 5% in the last month.