Aarti Industries Shares Break 4-Session Gaining Streak; Q3 FY25 Net Profit Drops 63%

Aarti Industries’ share price is currently at ₹453, marking a decline of ₹6.65 (1.45%) from the previous close of ₹459.65. The stock had gained over 11% in the last four trading sessions. It opened at ₹445.05, hit a high of ₹460.80, and a low of ₹428.50 during today’s session.

Aarti Industries Q3 FY25

Aarti Industries reported a significant 63% year-on-year drop in its net profit, which stood at ₹46 crore for Q3 FY25, compared to ₹124 crore in the previous year. This decline was primarily attributed to higher finance costs and increased expenses.

Despite the drop in profit, the company’s revenue for the quarter showed a positive growth of 6%, rising to ₹1,840 crore from ₹1,732 crore in the same quarter last year. However, EBITDA decreased by 11.2% year-on-year to ₹231 crore, reflecting pressure on margins which fell from 15% to 12.6%.

Outlook and Future Plans

Aarti Industries highlighted strong volume growth and improved product mix as key contributors to its performance despite market challenges. Exports saw sequential growth, while domestic volumes remained stable across most applications.

CEO and Executive Director, Suyog Kotecha, expressed confidence in the company’s position moving forward, emphasising risk mitigation through cost efficiencies, product diversification, and expansion into high-growth global markets including the US, Europe, and Japan.

The company remains focused on its innovation pipeline and sustainability efforts to capitalise on future opportunities.

Aarti Industries Enters Renewable Energy Sector

In January, Aarti Industries entered into a “Share Subscription and Shareholder’s Agreement” with Prozeal Green Power Private Limited and Pro-Zeal Green Power Seven Private Limited.

The agreement involved the acquisition of 26.25% equity shares and compulsory convertible debentures (CCDs) in Pro-Zeal Green Power Seven Private Limited, an SPV for developing a 9.24 MW solar power plant to meet part of Aarti Industries’ power requirements.

This move aligns with the company’s strategy to source power from renewable energy and reduce overall power costs. The plant is expected to start generating power by H2 FY26. The investment includes ₹6.3 lakh in equity and ₹3.63 crore in CCDs, the company said in a press release on the stock exchanges.

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