Speciality chemicals major Aarti Industries Limited (AIL) has reported a resilient performance in the December quarter, delivering double-digit sequential growth in revenue and earnings despite geopolitical tensions, trade disruptions and lingering uncertainty in global demand.
The speciality chemicals major said unaudited consolidated revenue for Q3FY26 rose 11% quarter-on-quarter to Rs. 2,492 crore, driven by volume growth across value chains and the resumption of U.S. volumes, which lifted capacity utilisation and operating leverage even as the company absorbed part of US tariffs.
EBITDA increased 11% QoQ to Rs. 323 crore, reflecting improved scale benefits and operating discipline. The company also provided a one-time exceptional expense of around Rs. 15 crore related to the implementation of the new labour code, pending further clarity from state and central government notifications.
Profit after tax surged 25% sequentially to Rs. 133 crore, supported by stronger operating performance, cost-saving initiatives and improved economics at higher utilisation levels.
Commenting on the performance, Suyog Kotecha, Executive Director and Chief Executive Officer, said: "The global operating environment continues to remain volatile, shaped by geopolitical uncertainties and ongoing trade realignments. Despite these challenges, Aarti Industries has delivered resilient performance, supported by proactive market diversification and a calibrated approach to the U.S. Our ability to sustain volumes and maintain customer engagement reflects the strength of our integrated portfolio and execution discipline.
"Our strategic focus is shifting from bulk, product-led growth to a more streamlined, knowledge-driven and quality-focused portfolio. We are actively managing volatility through downstream integration, portfolio diversification and a sharper focus on higher-value chemistries, while deepening customer engagements through chemistry-led, R&D-oriented solutions.
"With Jhagadia, Zone IV emerging as a transformational growth platform, strong demand visibility for new products and disciplined capital allocation, we remain confident in our long-term growth trajectory. Recent Policy developments in China and ongoing progress on trade agreements such as the EU FTA are expected to support margin recovery and long-term growth opportunities."
AIL said its energy business, led by MMA, remained a key growth driver during the quarter, supported by robust volumes, steady demand and favourable feedstock spreads. Agrochemicals volumes were stable and continued to show recovery, though pricing remained under pressure.
Volumes in dyes, pigments and printing inks held steady and are expected to improve going forward. Polymer and additives applications were impacted in the US market, with a full recovery linked to improving trade conditions, while the DCB chain showed volume and margin recovery in non-US markets.
The company expects to commission multiple process blocks, including a multipurpose plant at Jhagadia Zone IV, in a phased manner starting Q4FY26. Fast-track projects such as PEDA and MMA debottlenecking are progressing as planned and are expected to come on stream within the next three months.
Despite ongoing external challenges, Aarti Industries said it remains well-positioned for long-term growth, underpinned by a sharper focus on portfolio quality, downstream integration, R&D-led product development and disciplined capital allocation.
