Aarti Industries reports 17% EBITDA growth in Q3 FY25 amid strong volume performance

Aarti Industries Limited (AIL), a leading player in the speciality chemicals market, has posted a 17% sequential rise in EBITDA for the third quarter of the 2025 fiscal year. The company’s quarterly financial results reflect its ability to navigate evolving global market conditions, with strong volume growth driving an increase in revenue.

For Q3 FY25, Aarti Industries reported a 14% quarter-on-quarter (QoQ) revenue growth, reaching ₹2,035 crore compared to ₹1,786 crore in Q2 FY25. EBITDA for the period rose to ₹236 crore from ₹202 crore in the previous quarter, supported by operating efficiencies and an improved product mix. However, profit after tax (PAT) declined 12% sequentially, settling at ₹46 crore. The decrease was primarily attributed to a ₹23 crore mark-to-market loss on a long-term external commercial borrowing (ECB) due to rupee depreciation.

Despite pricing pressures, the company remains committed to sustainable business growth, focusing on capacity expansion, renewable energy initiatives, and global market diversification. Aarti Industries is strengthening its presence in key international markets, including the United States, Europe, and Japan, positioning itself for long-term growth.

What Are the Key Financial Highlights for Aarti Industries?

Aarti Industries’ financial performance in Q3 FY25 highlights its ability to drive revenue and operational efficiencies despite external market challenges. Revenue increased 14% QoQ, with volume growth and product mix optimization contributing to a 17% rise in EBITDA. While the company faced forex-related losses, resulting in a 12% decline in PAT, its underlying business fundamentals remained strong.

For the first nine months of FY25, the company reported a 15% year-on-year (YoY) revenue increase, reaching ₹5,833 crore, compared to ₹5,057 crore in 9M FY24. EBITDA for the period grew by 7%, reflecting improved operational leverage and higher capacity utilization. These figures underscore Aarti Industries’ ability to sustain profitability while continuing its strategic expansion.

What Is Driving Aarti Industries’ Growth?

Aarti Industries’ ability to achieve sustainable business growth amid a challenging macroeconomic environment is driven by operational efficiencies, capacity expansion, and strategic investments. Suyog Kotecha, CEO and Executive Director of Aarti Industries, emphasized the company’s resilience in the face of pricing pressures and global uncertainties.

He stated that despite market challenges, the company delivered a strong Q3 FY25 performance, with EBITDA growth supported by volume expansion and efficiency improvements. While pricing dynamics affected margins, Aarti Industries remains focused on cost optimization, product diversification, and geographic expansion. With a robust innovation pipeline and sustainability-driven approach, the company is well-positioned to capitalize on future opportunities in high-growth applications.

How Is Aarti Industries Expanding Its Capacity and Sustainability Efforts?

Aarti Industries is accelerating its expansion strategy while reinforcing its commitment to sustainability. The company successfully commissioned new Nitro-toluene and Ethylation plants, with volume ramp-up expected to continue through Q4 FY25. This expansion strengthens Aarti Industries’ product portfolio and supports rising demand in key industrial applications.

The company has also finalized two power purchase agreements (PPAs) for solar and hybrid energy, aligning with its long-term sustainability objectives. By Q1 FY27, over 75% of Aarti Industries’ total power consumption is expected to come from renewable sources. This shift is projected to result in significant cost savings while advancing the company’s environmental commitments.

Furthering its sustainability efforts, Aarti Industries’ wholly owned subsidiary, Aarti Circularity Limited, has formed a joint venture with Re Sustainability and Recycling Pvt. Limited. The partnership focuses on the development of Plastic Materials Recycling Facilities (PMRFs) across India, supporting a circular economy model within the chemical manufacturing sector.

What Industry Recognition Has Aarti Industries Received?

Aarti Industries continues to gain recognition for its operational excellence and commitment to sustainability. The company was honored with the Corporate Excellence Award 2024 by the Indian Institute of Materials Management (IIMM) for its outstanding contributions to the chemical industry. It also received the ETHREX Award 2024 for exceptional employee experience in the large-scale category, reflecting its dedication to workforce engagement and development.

Additionally, Aarti Industries was acknowledged as one of the top supply chain champions in the chemical sector by ISCM, reinforcing its leadership in supply chain innovation, efficiency, and operational excellence. These industry accolades further strengthen the company’s reputation as a preferred partner for global and domestic customers.

What’s Next for Aarti Industries?

Looking ahead, Aarti Industries remains focused on sustainable business growth through strategic initiatives. The company plans to expand its footprint in high-growth speciality chemical markets, particularly in the US, Europe, and Japan. It continues to invest in product innovation and process optimization, ensuring it meets the evolving needs of key industries, including pharmaceuticals, agrochemicals, and performance materials.

Operational efficiency and cost optimization remain central to Aarti Industries’ growth strategy, allowing it to maintain profitability amid fluctuating pricing conditions. The company’s deepening commitment to sustainability through renewable energy investments and circular economy initiatives will further solidify its position as a leader in the speciality chemicals market.

With a strong financial position, an expanding innovation pipeline, and a focus on global market opportunities, Aarti Industries is well-equipped to navigate industry challenges while driving long-term value for stakeholders.