Aarti Industries shares jump 6% on $150 mn agrochemical supply deal

Aarti Industries has secured a multi-year deal with a leading global agrochemical company for the supply of a key crop-protection intermediate

Aarti Industries share price today

Shares of Aarti Industries, a speciality chemicals manufacturer, rose over 6 per cent on Thursday, March 12, to hit an intraday high of ₹456.75 on the NSE after the company secured a multi-year supply contract worth around ₹150 million with a global agrochemical company. The stock has surged over 11 per cent in the last three sessions. 

 

Around 01:15 PM, Aarti Industries stock was trading at ₹454.70, up by 5.7 per cent from the previous session's close of ₹430.15. In comparison, the benchmark NSE Nifty50 was quoting at 23,716.05 levels, down by 150.80 points or 0.63 per cent. The stock's 52-week high was at ₹495, and its 52-week low was at ₹338 on the NSE. Its total market capitalisation stood at ₹16,476 crore. 

 

Here's why Aarti Industries stock is rallying:

In a stock exchange filing, dated March 12, the company said it secured a multi-year deal with a leading global agrochemical company for the supply of a key crop-protection intermediate. The company said the agreement converts the existing annual engagement into a structured supply contract valid until March 31, 2030, and involves a significant increase in volumes.

 

Under the agreement, Aarti Industries will manufacture and supply a critical agrochemical intermediate used in crop-protection formulations for global agricultural markets. The agreement is expected to generate around $150 million in revenue over the contract period, providing the company with improved medium- to long-term revenue visibility.

 

Suyog Kotecha, chief executive officer at Aarti Industries, said this reinforces Aarti Industries' position as a trusted

partner to global agrochemical innovators. 

 

"The agreement enhances our long-term earnings visibility and reflects continued progress in strengthening our speciality chemicals portfolio through high-value, sustainable partnerships,” he added. 

 

According to the company, the global agrochemical intermediates market continues to offer strong growth opportunities, supported by structural demand for crop protection solutions and a rising preference for reliable, integrated, long-term supply partners.

Systematix Institutional Equities on Aarti Industries

In its Q3 earnings review on Aarti Industries, the brokerage said the company delivered a strong performance in Q3FY26, beating estimates across key metrics. Consolidated revenue rose 26 per cent year-on-year to ₹23.2 billion, supported by strong MMA volumes and a record export share of about 65 per cent. Earnings before interest, tax, depreciation and amortisation (Ebitda) increased 36 per cent to ₹3.2 billion, with margins expanding to 13.8 per cent due to higher capacity utilisation and favourable input cost dynamics.

 

The brokerage had upgraded the stock to ‘Buy’ from ‘Hold’ and raised the target price to ₹511 from ₹449, valuing the company at 22x FY28E earnings, citing improving operating leverage and strong export opportunities. 

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