Aether Industries Limited (AETHER) Q2 Results FY27 Preview: Date, Time, Expectations & Key Things To Watch

Cofacto Research Published October 26, 2026 6 min read

Aether Industries is a Surat-based specialty chemicals company that manufactures advanced intermediates through its CEM, LSM and CRAMS verticals, serving pharma, agrochemical, material science and oil & gas end-markets. This quarter's print will speak to the first revenue contribution from Site 5 (Magnum) Phase 1 — guided 'from Q2FY27 onwards' — and whether EBITDA margins hold near the 29-30% guided band as crude-linked input costs and ramp costs build.

Quick Details
Results dateOctober 30, 2026
QuarterQ2 FY 2026-2027
Previous quarter revenueRs. 3,265.57 Mn (+27.25% YoY)
Previous quarter PATRs. 627.49 Mn (+33.45% YoY)
Previous quarter EBITDA margin31.47%
Market capRs. 18,750.53 Cr
CMPRs. 1,412.7

Aether Industries Limited Q2 Results Date and Time

The Board of Aether Industries will meet on Friday, Oct 30, 2026 to approve the unaudited standalone and consolidated financial results for Q2 and the half-year ended September 30, 2026 (Ref. AIL/SE/38/2026-27; Reg. 29, SEBI LODR).

A post-result earnings call for Q2 & H1 FY27 (period ended September 30, 2026) is scheduled for Oct 30, 2026 at 14:00 Hrs IST, conducted by HDFC Securities. Speakers include Dr. Aman Desai, Mr. Rohan Desai, CFO Mr. Faiz Nagariya and IR lead Mr. Kushal Doshi.

What to expect from Aether Industries Limited's Q2 FY27 results

The Q2 FY27 print is the first quarter of Site 5 (Magnum) Phase 1 revenue contribution, guided 'from Q2FY27 onwards', with the 45 tons/month semiconductor stream targeted online 'end of September' — both company-specific catalysts landing inside the quarter. The margin question is whether Q1's 31.47% EBITDA margin converges toward the guided 29-30% band, as crude-linked petrochemical feedstocks up 16-80% from pre-war levels are expected to start reflecting from the September 2026 quarter onward, and Site 5 ramp costs plus D&A of Rs. 202 Mn (vs Rs. 128 Mn standalone a year ago) build. Brent breached $100/bbl on September 9 amid the Middle East conflict, though oil flows were holding near prewar levels as of late October, and management has reported no disruptions to the Baker Hughes stream — roughly 19% of FY26 sales at about Rs. 2,196 Mn — with continuous orders. The rupee's roughly 7% YTD weakness through the July-September window supports realizations on the 37.5% export mix, while the CEM+CRAMS mix at 60% of Q1 revenue (CEM 51%, CRAMS 9%) against a 70% target remains the dominant margin lever. The call will likely cover Site 5 utilization against the 35-40% FY27 target, the margin bridge, and working capital against the ~160 days end-FY27 guide.

Key Things To Watch

Guidance scorecard: margins, capex and debt: Q1 FY27 printed above the guided bands; watch whether management re-anchors or holds.

  • EBITDA margin — 29-30% (~30%) for FY27 — Q1 FY27 printed 31.47%; watch whether the Site 5 ramp keeps margins above the band or management re-anchors lower
  • PAT margin — 19-20% for FY27 — Q1 FY27 PAT of Rs. 627.49 Mn on revenue of Rs. 3,265.57 Mn implies a 19.22% margin
  • Capex — Rs. 3,000-3,500 Mn for FY27 — check H1 run-rate and whether debt funding is tracking; additional debt of Rs. 200-250 crores by end FY27 off a baseline of Rs. 4,215 Mn working capital loans plus Rs. 1,000 Mn term loans at June 30, 2026
  • Working capital — ~160 days (attempting 150) by end FY27 — Q1 FY27 was 'marginally lower' than March 2026's 179 days

Site 5 (Magnum) first revenue quarter and semiconductor stream

  • Site 5 Phase 1 revenue contribution guided 'from Q2FY27 onwards' — first quarter of block contribution; check utilization against the 35-40% FY27 target for the starting 2 blocks
  • 45 tons/month semiconductor stream (3 streams of 15 tons each) targeted online 'end of September' — confirm commissioning status against the stated target
  • Phase 2 construction progress, the '10x10' strategy target by end of the year, and the 15-acre Site 5+ land development

Baker Hughes trajectory and Middle East commentary

  • Quarterly Baker Hughes revenue vs the Rs. 51 Cr → ~Rs. 60 Cr → Rs. 76/68 Cr → Rs. 700 Mn path; Strata (Site 4) at 58% utilization in Q1 FY27 and scaling over coming quarters
  • Whether the September tanker-attack escalation or the flows-holding October status changes management's 'no disruptions, continuous orders' position

Mix shift and operating metrics

  • CEM+CRAMS mix — 60% in Q1 FY27 (CEM 51%, CRAMS 9%) against a 70% target in the next two years — watch Q2 direction, especially CRAMS recovery from 9%
  • LSM dynamics — Q1 FY27 LSM volume declined 22.5% YoY on Site 3 reallocation to CEM, with LSM pricing up 22.5% and demand intact; watch whether the reallocation-driven pattern continues
  • Converge Polyol — H1 progress against the Rs. 650-750 million FY27 sales target

Risks and follow-ups

  • Any repeat inventory/logistics events at external warehouses after the March 2026 fire caused a Rs. 70 Mn inventory loss; exceptional insurance-related items continue until end FY'27
  • China pricing trajectory in LSM and its effect on the 21-23% LSM margin band; finance cost trajectory as debt builds
  • GST demand cum show cause notice of Rs. 42.62 Mn — appeal pending, no provision made; any hearing or provision updates

Frequently Asked Questions

Are Aether Industries' 30%+ EBITDA margins sustainable?

Management has repeatedly said consolidated EBITDA margins of 29-30% are sustainable, explicitly rejecting 34-35% as inflated by a one-time FLOP claim in Q3 FY26. CFO Faiz Nagariya said, 'we are entering to more and more contract manufacturing and CRAMS which is increasing. So, 30% margin is surely sustainable'.

Why did Aether Industries' LSM volumes fall in Q1 FY27?

Management attributed the 22.5% YoY LSM volume decline primarily to dedicating some Site 3 production lines to the higher-margin CEM business model, not to demand softness. LSM pricing improved by 22.5% and demand remained intact.

How much is Aether Industries investing in Site 5 (Magnum)?

Total Site 5 capex is estimated at Rs. 2,200-2,300 crores extending until FY'30, with Phase 1 costing about Rs. 160 crores per production block. Management targets asset turns of 1.5x-1.75x once the site is fully operational and stabilized.

How much revenue does Aether Industries earn from Baker Hughes?

Baker Hughes-related revenue has grown from Rs. 51 crores in Q2 FY26 to about Rs. 60 crores in Q3 FY26, roughly Rs. 76 crores (also stated as Rs. 68 crores) in Q4 FY26, and Rs. 700 million in Q1 FY27. FY26 Baker Hughes-related revenue was about Rs. 2,196 Mn, roughly 19% of sales; management declines to quantify forward Baker Hughes revenue as policy.

Is Aether Industries' working capital improving?

Working capital days improved from 194 days (March 31, 2025) to 149 days (September 30, 2025), before reversing to 179 days at FY26-end due to Site 3++ and Site 5 procurement. Management has guided to about 160 days (attempting 150) by end FY27, with Q1 FY27 'marginally lower' than March 2026.

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