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Informist, Thursday, Jul. 30, 2026

By Ayush Jaiswal

MUMBAI – Speciality chemical maker Aarti Industries Ltd.'s June quarter net profit is expected to double due to a low base, according to brokerages tracking the company. The company's is also expected to report robust growth in its revenue due to a jump in realisations.

Aarti is expected to post a net profit of INR 878 million for the June quarter, nearly double from INR 440 million in the year-ago quarter, according to the average of estimates from nine brokerages. The company's net profit had declined 68% on year in the June 2025 quarter, which will be a low base for this quarter. Sequentially, the company's June quarter net profit is expected to decline over 39%. The highest net profit estimate for Aarti Industries is INR 1.61 billion from Kotak Securities Ltd. and the lowest is INR 532 million from PhillipCapital (India) Pvt. Ltd.

The company's revenue is expected to grow 30% on year to INR 21.28 billion, according to the estimates. However, revenue is expected to decline nearly 13% on quarter. The highest top line estimate is INR 24.02 billion from Kotak Securities while the lowest is INR 17.91 billion from PhillipCapital.

Aarti's revenue growth for the June quarter is likely to be driven by high demand for mono-methyl-aniline and a sharp jump in realisation due to the pass-through of the increase in input costs. Analysts see a sequential decline in revenue growth due to a complete halt in exports of mono-methyl-aniline to West Asia. Weak demand and volatile price of dyes and polymers segment is also likely to impact the company's revenues sequentially, SMIFS Ltd. said. On a sequential basis, the company's earnings will be down due to lower volumes and higher energy costs, HDFC Securities Ltd. said.

The company's earnings before interest, tax, depreciation, and amortisation for the June quarter are expected to grow to INR 2.98 billion from INR 2.15 billion in the year-ago quarter, according to the estimates from eight brokerages. The highest estimate for the company's EBITDA is INR 3.34 billion from Kotak Securities and the lowest is INR 2.56 billion from HDFC Securities.

After the March quarter earnings announcement, the company had said it had delivered strong growth in quarterly EBITDA run rate and will implement profitability improvement initiatives to further improve the EBITDA. This includes cost optimisation, higher operating leverage, and incremental contributions from recently commissioned and upcoming assets. ICICI Securities, Kotak Securities, and SMIFS expect the company's EBITDA margin for the quarter to expand 124-310 basis points from 12.6% in the year-ago quarter.

On a sequential basis, Aarti's revenue is likely to grow and EBITDA will decline despite an 18% increase in its net income due to normalisation in finance cost, Kotak Securities said. The finance cost had spiked in the trailing quarter due to currency fluctuations, the brokerage added.

The speciality chemical industry is expected to take a hit sequentially in the June quarter due to US-Iran war which led to the closure of Strait of Hormuz, brokerages said. The demand for mono-methyl-aniline will be affected in the June quarter vis-a-vis the March quarter. The revenue of the specialty chemical industry is expected to grow 12% on year, Prabhudas Lilladher said.

Aarti Industries Ltd., the flagship company of the Aarti group, is involved in the manufacturing of organic and inorganic chemicals. They serve customers in multiple segments which includes agrochemicals, pharmaceuticals, polymers, dyes, fuel additives, battery materials, electronic chemicals, and sunrise sectors, among others.

At 1014 IST, shares of Aarti Industries were traded at INR 478.25 on the National Stock Exchange, up 1.5% from Wednesday. The shares are down 2% since the company detailed its March quarter earnings on May 5.

Of the 10 research reports on the company available with Informist, nine have a "buy" recommendation on the stock with an average target price of INR 536 per share, almost 11% higher than the current market price. Only one brokerage has a "sell" call with a target price of INR 500 per share.

Following are the Apr-Jun earnings estimates, in INR million, for Aarti Industries from seven brokerages, in descending order by the net profit estimate:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Pankaj Aher

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