Aarti Industries is a speciality chemicals maker whose Q2 FY27 print will test whether the strong Q1 rebound — revenue up 41% YoY on input-price pass-through — can hold without the Rs. 50-60 Cr of inventory and FX gains that flattered the last quarter. The key things to watch are the West Asia-driven energy volume recovery, margin quality ex-gains amid steep benzene and methanol inflation, and progress on Zone IV commissioning against the reaffirmed FY28 EBITDA target of Rs. 1,800-2,200 Cr.
| Results date | October 30, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 2,627 Cr (+41% YoY, +8% QoQ) |
| Previous quarter PAT | Rs. 155 Cr (+260% YoY) |
| Previous quarter EBITDA margin | 14.66% |
| Market cap | Rs. 15,470.91 Cr |
| CMP | Rs. 426.5 |
The board meets on October 30, 2026 to approve unaudited standalone and consolidated results for the quarter and half year ended September 30, 2026. The trading window remains closed until 48 hours after the results declaration.
The Q2 FY27 earnings conference call is scheduled for Monday, November 2, 2026 at 1:00 p.m. IST. Speakers are Mr. Suyog Kotecha (ED & CEO) and Mr. Chetan Gandhi (CFO); this is the first results call for Suyog Kotecha as MD & CEO, a role effective October 1, 2026.
The quarter's central test is whether EBITDA holds near Q1's 14.66% margin without a repeat of the estimated Rs. 50-60 Cr of inventory and FX gains, as management itself said volume growth would need to compensate. Feedstock inflation re-accelerated through the quarter — Asian benzene averaged US$1,140/t in September, up 14.0% MoM and 44% above February 2026, while East China methanol rose 22.56% in the first half of September and 76.12% YoY — extending the pass-through topline dynamic but compressing spreads wherever pass-through lags. The energy spread backdrop stayed supportive: the gasoline crack peaked near $59.04/bbl in July before moderating to ~$38.90/bbl by mid-September, still well above the $15-18/bbl gasoline-naphtha average cited at Q1. The West Asia recovery management guided for Q2 did begin — Middle East oil deliveries to India in September topped 11.3 mn tonnes, the highest since February — though the path was interrupted mid-quarter with Hormuz traffic still slowed in August. The US tariff overhang persisted all quarter, with a 10% Section 301 tariff effective July 24 taking the overall US tariff on Indian goods to 18% versus 3% earlier, and trade-deal talks described as plateaued into October. The rupee's move past 95/USD in September implies revaluation or M2M charges on the unhedged $87 million long-term loan, similar to the Rs. 39 Cr and Rs. 34 Cr FX hits seen in prior quarters. Management remains "firmly committed" to the FY28 EBITDA aspiration of Rs. 1,800-2,200 Cr, with the call — the first under MD & CEO Suyog Kotecha — expected to address Zone IV slippage, the Rs. 1,000 Cr fundraising cleared at the October 31, 2026 EGM, and the net debt path from 3.7x toward the sub-2.5x target.
FY28 EBITDA guidance and Zone IV delay
Leverage, net debt and the Rs. 1,000 Cr fundraising
Zone IV, MPP and JV commissioning milestones
Energy volume recovery and margin quality ex-gains
Leadership transition, capex and new products
Yes — Q1 FY27 revenue rose 41% YoY to Rs. 2,627 Cr and 8% QoQ, which the company said was primarily driven by higher input prices passed on to customers. FY26 revenue had grown 12% YoY to Rs. 9,018 Cr.
Management expressed confidence in volume growth but remained cautious on pricing margins and inventory costs, saying these depend on external macro factors. The CEO indicated the current adjusted EBITDA level of around Rs. 270-280 Cr could be considered steady-state, with improvement targeted via volume ramp-up and cost optimisation.
Management has outlined a path of increasing EBITDA, reducing capex intensity and managing working capital, assuming crude oil prices stabilise. Net debt stood at Rs. 4,310 Crs (3.7x) at FY26 close, with a decline guided for FY27 and a Rs. 1,000 Cr fundraising aimed partly at loan pre-payment.
The FY28 consolidated EBITDA target of Rs. 1,800-2,200 Cr has been reaffirmed, but management flagged that the capex-led portion of Rs. 300-450 Cr may be realised 6-7 months late due to Zone IV delays. Management said there is no change to the EBITDA potential itself.