Stock Report

Aarti Industries Posts Strong Q1 FY27 Results: Consolidated Net Profit Jumps to ₹155 Crore, Net Revenue Up 42% YoY

Posted On : 2026-07-31 16:04:02( TIMEZONE : IST )

Speciality chemicals and pharmaceuticals manufacturer Aarti Industries Limited announced its unaudited financial results for the first quarter ended June 30, 2026 (Q1 FY27). The company recorded significant top-line and bottom-line growth on both standalone and consolidated levels, driven by robust operational performance and improved margin profiles.

Consolidated Financial Performance Highlights

Aarti Industries reported a Gross Revenue from Operations of ₹2,627 crore for Q1 FY27, marking a 40.71% year-on-year (YoY) increase compared to ₹1,867 crore in Q1 FY26, and an 8.46% sequential growth over ₹2,422 crore in Q4 FY26.

After accounting for GST collection of ₹240 crore, Net Revenue from Operations stood at ₹2,387 crore, registering a 42.42% YoY growth from ₹1,676 crore in Q1 FY26. Total income for the quarter reached ₹2,390 crore, supported by ₹3 crore in other income.

The company's Consolidated Net Profit After Tax (PAT) surged to ₹155 crore, representing a 260.47% YoY jump compared to ₹43 crore recorded in Q1 FY26, and a 13.14% increase sequentially from ₹137 crore in Q4 FY26. Net profit attributable to the owners of the company stood entirely at ₹155 crore.

Total Comprehensive Income for the quarter came in at ₹170 crore, bolstered by ₹15 crore in Other Comprehensive Income (OCI), which included ₹14 crore from items to be reclassified to the profit or loss statement and ₹1 crore from non-reclassifiable items.

Standalone Operational Snapshot

On a standalone basis, Aarti Industries achieved:

Gross Revenue from Operations: ₹2,481 crore (vs. ₹1,828 crore in Q1 FY26 and ₹2,656 crore in Q4 FY26).

Net Revenue from Operations: ₹2,241 crore (vs. ₹1,636 crore in Q1 FY26).

Total Income: ₹2,244 crore (vs. ₹1,641 crore in Q1 FY26).

Net Profit After Tax: ₹144 crore, up 227.27% YoY compared to ₹44 crore in Q1 FY26 and ₹147 crore in Q4 FY26.

Total Comprehensive Income: ₹158 crore (vs. ₹47 crore in Q1 FY26).

Expense Analysis & Profit Margins

Total consolidated expenses for Q1 FY27 stood at ₹2,211 crore, compared to ₹1,637 crore in Q1 FY26 and ₹2,094 crore in Q4 FY26. Key cost elements included:

Cost of Materials Consumed: ₹1,647 crore (vs. ₹1,060 crore in Q1 FY26).

Purchases of Stock-in-Trade: ₹190 crore (vs. ₹73 crore in Q1 FY26).

Changes in Inventories: ₹(305) crore (vs. ₹(11) crore in Q1 FY26).

Employee Benefits Expense: ₹120 crore (vs. ₹109 crore in Q1 FY26).

Finance Costs: Increased to ₹83 crore (vs. ₹60 crore in Q1 FY26), though down sequentially from ₹112 crore in Q4 FY26.

Depreciation & Amortisation: ₹124 crore (vs. ₹114 crore in Q1 FY26).

Foreign Exchange Gain (Net): Gain of ₹46 crore (vs. a gain of ₹16 crore in Q1 FY26).

Other Expenses: ₹399 crore (vs. ₹249 crore in Q1 FY26).

Consolidated Profit Before Tax (PBT) before exceptional items came in at ₹178 crore (up from ₹42 crore in Q1 FY26). Including an exceptional gain of ₹2 crore, total PBT stood at ₹180 crore. Total tax expenses were recorded at ₹25 crore, consisting of current year tax of ₹24 crore and deferred tax of ₹1 crore.

Operating EBITDA Margin improved to 14.54% in Q1 FY27, up from 11.35% in Q1 FY26 and 14.15% in Q4 FY26. Net Profit Margin reached 5.89%, expanding significantly from 2.31% in Q1 FY26 and 5.67% in Q4 FY26.

Key Financial Ratios and Capital Structure

Net Worth: Consolidated net worth expanded to ₹6,127 crore as of June 30, 2026, up from ₹5,955 crore as of March 31, 2026.

Interest Service Coverage Ratio (ISCR): Strengthened to 3.34x in Q1 FY27, compared to 1.74x in Q1 FY26 and 2.02x in Q4 FY26.

Debt Service Coverage Ratio (DSCR): Improved to 2.33x from 0.64x in Q1 FY26 and 1.54x in Q4 FY26.

Net Debt-Equity Ratio: Increased to 0.80x compared to 0.66x in Q1 FY26 and 0.72x as of March 31, 2026.

Current Ratio: Stood at 0.82x, vs. 0.79x in Q1 FY26.

Total Debts to Total Assets: Measured at 0.38x (vs. 0.34x in Q1 FY26).

Debtors Turnover Ratio: Stood at 7.12x (vs. 8.23x in Q1 FY26).

Inventory Turnover Ratio: Measured at 3.63x (vs. 3.84x in Q1 FY26).

Earnings Per Share (EPS): Consolidated Basic EPS reached ₹4.27 per equity share (face value ₹5 each, not annualised), up from ₹1.19 in Q1 FY26 and ₹3.79 in Q4 FY26. Diluted EPS stood at ₹4.26. Paid-up equity share capital remained constant at ₹181 crore.

Shares of Aarti Industries Limited was last trading in BSE at Rs. 480.55 as compared to the previous close of Rs. 485.10. The total number of shares traded during the day was 19288 in over 730 trades.

The stock hit an intraday high of Rs. 488.00 and intraday low of 477.00. The net turnover during the day was Rs. 9267896.00.