SYNOPSIS:
Prabhudas Lilladher forecasts Aarti Industries’ Q2 FY26 PAT rising 69 p.c QoQ to Rs. 72.5 crore, supported by 20 p.c income progress, although MMA realisations decline might strain margins.
Shares of one of many world’s main speciality chemical firms, combining course of chemistry with scale-up engineering competence, are in give attention to the inventory exchanges, as funding brokerage agency Prabhudas Lilladher expects the corporate’s web revenue to rise by 69 p.c QoQ and 42 p.c YoY in Q2 FY26.
With a market cap of Rs. 13,800 crores, at 09:44 a.m., the shares of Aarti Industries Restricted have been buying and selling within the inexperienced at Rs. 381.15 throughout Friday’s buying and selling session, up by round 0.2 p.c on BSE, as in opposition to its earlier closing worth of Rs. 380.3. The inventory has delivered damaging returns of over 27 p.c in a single 12 months, however has gained by round 2 p.c within the final one month.
What’s the Information
Prabhudas Lilladher tasks Aarti Industries Restricted to report Income from Operations of Rs. 2,011.2 crore in Q2 FY26, reflecting a 20.1 p.c quarter‑on‑quarter (QoQ) and 23.5 p.c 12 months‑on‑12 months (YoY) progress. The brokerage additional expects the corporate’s Adjusted Internet Revenue to succeed in Rs. 72.5 crore, up roughly 69 p.c QoQ and 42 p.c YoY.
EBITDA is forecasted at Rs. 245 crore, marking a 16 p.c QoQ and 25 p.c YoY enhance. In the meantime, EBITDA margins are projected at 12.2 p.c, enhancing by 14 foundation factors (bps) YoY however contracting by 42 bps QoQ.
Prabhudas Lilladher famous that export volumes are rising, supported by delayed Mono-Methyl Aniline (MMA) shipments from the earlier quarter. Nevertheless, common realisations for MMA have declined from $2.5/kg to $1.6/kg, which can impression profitability. Total, topline progress is anticipated each YoY and sequentially, although margins are prone to see a modest sequential contraction of ~42 bps.
Financials & Extra
Aarti Industries reported a marginal decline in its income from operations, displaying a year-on-year lower of over 9 p.c from Rs. 1,851 crores in Q1 FY25 to Rs. 1,675 crores in Q1 FY26. Likewise, its web revenue decreased throughout the identical interval from Rs. 137 crores to Rs. 43 crores, representing an enormous fall of almost 69 p.c YoY.
For FY26, the corporate’s capex is projected at round Rs. 1,000 crore. Over the following three years, it goals for an EBITDA vary of Rs. 1,800-2,200 crore, concentrating on a Debt/EBITDA ratio under 2.5x and a Return on Capital Employed (ROCE) exceeding 15 p.c.
Aarti Industries Restricted is engaged within the enterprise of producing and dealing in speciality chemical substances and intermediates, with key worth chains together with Nitro Chloro Benzenes, Di-Chlorobenzenes, Phenylenediamines, Nitro Toluene Worth Chain and Sulphuric Acid & downstream.
The corporate operates 16 manufacturing services, 2 superior R&D centres, 8 zero‑liquid discharge crops, and 5 cogeneration energy crops, serving over 1,100 home and worldwide prospects throughout 60 exporting nations.
Written by Shivani Singh
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