Aarti Industries shares slip 6% but recover soon after posting Q3 results

Aarti Industries shares slipped 6.2 per cent on Monday, logging an intraday low at Rs 430.65 per share on BSE. However, around 11:07 AM, Aarti Industries' share price recovered and was up 0.16 per cent at Rs 460.35 per share on BSE. In comparison, the BSE Sensex was down 0.56 per cent at 77,072.78. 

 

The market capitalisation of the company stood at Rs 16,675.92 crore. The 52-week high of the stock was at Rs 769.5 per share and the 52-week low was at Rs 390.25 per share. The stock moved after the company posted its Q3 results. 

 

On Saturday, after market hours, Aarti Industries posted a 63 per cent decline in its consolidated net profit of Rs 46 crore as compared to Rs 124 crore year-on-year (Y-o-Y).

 

The company’s total revenue from operations stood at Rs 2,035 crore, up 7.7 per cent Y-o-Y, as compared to Rs 1,889 crore.

 

As per the filing, the company's Earnings before interest, tax, depreciation and amortisation (Ebitda) stood at Rs 236 crore as compared to Rs 202 crore in the previous quarter. 

 

During the quarter, Nitro-toluene and Ethylation capacity expansion projects were successfully commissioned and volume ramp-up will continue through Q4FY25. 

 

Also, two renewable energy power purchase agreements for solar and hybrid power were concluded. The company's renewable share in total power purchases to exceed 75 per cent by Q1FY27.

 

‘Re Sustainability and Recycling Pvt. Limited’ and ‘Aarti Circularity Limited’ a wholly owned subsidiary of Aarti Industries, entered into a joint venture to drive the development of Plastic Materials Recycling Facilities (PMRFs) across India. 

 

“In a dynamic global environment, the company delivered a resilient performance despite market challenges in Q3 FY25 with Ebitda growing sequentially on the back of strong volume growth. While pricing pressures weighed on margins, we remain focused on risk mitigation through cost efficiencies, product diversification, and geographic expansion into the US, Europe, and Japan markets. With a robust innovation pipeline and sustainability at our core, we are well-positioned to capitalise on future opportunities in high-growth applications," said Suyog Kotecha, CEO and executive director, Aarti Industries.

 

Aarti Industries Limited is a speciality chemical company, combining process chemistry with scale-up engineering competence.

 

In the past one year, Aarti Industries shares have lost 28 per cent against Sensex's rise of 8 per cent.