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First Cut- Aarti Industries

31 Jul 2026, 11:49AM

FX tailwinds and low cost inventory pushed EBITDA growth

Volumes of various key products were lower on Q-o-Q basis

AIL had taken steps to optimise the product and geography mix to manage the situation, resulting in improved EBIDTA

Working capital increased due to increase in input prices and exports leading to higher debt and finance cost

We currently have a BUY rating with a TP of Rs 570 We have a call at 10:30 AM today

Segment wise: MMA volumes were down and its share dropped to 38% in Q1Fy27 from mid 40’s )a key stock driver)

Key Monitorable from call: MMA volumes picking up? sustainability of margins?

					Rs Cr
	1Q27	1Q26	YoY%	4Q26	QoQ%
Gross Revenues	2,627	1867	40.7%	2,422	8.5%
GST Collected	240	192	25.0%	217
Net Revenues	2,387	1,675	42.5%	2,205	8.3%
Consumption of Raw material	1,647	1060	55.4%	1,495	10.2%
Purchases of stock-in-trade	190	73	160.3%	235	-19.1%
Increase decrease in Stock	(305)	-11	NM	- 409	NM
Gross Profit	855	553	54.6%	884	-3.3%
*Gross Profit Margin%*	35.8%	33.0%	280 bps	40.1%	-427 bps
Employee Cost	120	109	10.1%	103	16.5%
Other Expenses	353	233	51.5%	440	-19.8%
*Total Expenditure*	2,005	1,464	37.0%	1,864	7.6%
EBITDA	382	211	81.0%	341	12.0%
*EBITDA margin%*	*16.0%*	*12.6%*	341 bps	*15.5%*	54 bps
Other Income	3	4	NM	1	NM
Interest	83	60	38.3%	112	-25.9%
Depreciation	124	114	8.8%	119	4.2%
Pre-tax profit	178	41	334.1%	111	60.4%
Tax (Current)	-	-	-	-	-
Tax (Deferred)	25	- 3	NM	- 26	NM
Total Tax	25	- 3	NM	- 26	NM
Net Profit	153	44	247.7%	137	11.7%
Extraordinary Items	2	-		-
Reported PAT - Consol	155	44	252.3%	137	13.1%