Aarti Industries Ltd delivered exceptional third-quarter performance with net profit nearly tripling to ₹133 crore compared to ₹46 crore in the same period last year, representing an 189% year-on-year growth. According to reports from CNBC TV18, this sharp improvement was driven by higher capacity utilisation, benefits from cost-saving initiatives and improved economies of scale. The country's leading chemical maker demonstrated strong operational efficiency during the quarter.
Revenue for the quarter grew 26% year-on-year to ₹2,319 crore from ₹1,843 crore, driven by volume growth across multiple value chains. As reported by CNBC TV18, the company saw a resumption of US volumes, which supported higher capacity utilisation and improved operating leverage, even as it absorbed part of the impact of US tariffs. Operating performance also strengthened significantly, with EBITDA rising 38.8% year-on-year to ₹322 crore from ₹232 crore in the year-ago period.
EBITDA margin expanded to 13.9% during the quarter, compared with 12.6% in the corresponding period last year, indicating improved operational efficiency. According to CNBC TV18, the company provided for a one-time impact of about ₹15 crore related to the implementation of the new labour code, which was treated as an exceptional expense for the quarter. Aarti Industries said it is awaiting further notification from the state and central governments to refine its approach and will take additional provisions if required once more clarity emerges.
The energy portfolio, led by MMA, remained a key growth driver during the quarter with volumes staying robust on the back of steady demand and favourable feedstock spreads. As reported by CNBC TV18, in agrochemicals, volumes remained stable and continued to show recovery, although pricing remained subdued. In the dyes, pigments and printing inks segment, application volumes stayed steady and are expected to improve going forward. The polymers and additives segment was impacted in the US market, with a full recovery linked to improving trade conditions.
Shares of Aarti Industries Ltd ended at ₹374.50, up by ₹3.75, or 1.01% on the BSE, reflecting positive market sentiment towards the strong quarterly results. According to CNBC TV18, the DCB chain showed signs of volume and margin recovery in non-US markets during the quarter, indicating broad-based improvement across the company's business segments. The company's strong operational performance and margin expansion demonstrate its ability to navigate market challenges while maintaining growth momentum.
