Analysts/Institutional Investor Meet/Con. Call Updates

November 6, 2026 To, To, Listing/Compliance Department Listing/Compliance Department BSE LTD. National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, “Exchange Plaza”, Plot No. C/1, Dalal Street, G Block Bandra-Kurla Complex, Mumbai – 400 001. Bandra (E), Mumbai – 400 051. BSE CODE : 524208 NSE Symbol : AARTIIND Dear Sir/Madam, Sub.: Transcript of Q2 FY27 Earnings Conference Call. Ref.: Regulation 30 of the SEBI (LODR) Regulations, 2015. Please find enclosed the Transcript of the Q2 FY 2027 Earnings Conference Call held on November 2, 2026. Kindly take the same on record. Thanking You, Yours faithfully, FOR AARTI INDUSTRIES LIMITED RAJ SARRAF COMPANY SECRETARY ICSI M. NO. A15526 Encl.: As above. Aarti Industries Limited Q2 FY27 Earnings Conference Call November 02, 2026 Moderator: Ladies and gentlemen, good day, and welcome to Aarti Industries Limited Q2 FY27 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing “*” then “0” on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Nishid Solanki from CDR India. Thank you, and over to you, Mr. Solanki. Nishid Solanki: Thank you. Good afternoon, everyone, and thank you for joining us on Aarti Industries’ Q2 FY27 earnings conference call. Today, we are joined by senior members of the management team, including: ● Mr. Suyog Kotecha, Managing Director and Chief Executive Officer, and ● Mr. Chetan Gandhi, Chief Financial Officer We will commence the call with opening remarks from Mr. Kotecha, followed by a Q&A session where management will address participants' queries. Just to share our standard disclaimer. Certain statements that may be made in today's call may be forward-looking in nature. A disclaimer to this effect has been included in the results presentation shared earlier and uploaded on the stock exchange websites. I would now invite Mr. Suyog Kotecha to share his perspectives. Thank you, and over to you, sir.. Suyog Kotecha: Thank you, Nishid. Good afternoon, everyone, and welcome to Aarti Industries’ Q2 FY27 earnings conference call. We value your continued interest and support. Today, I will walk you through the performance highlights, industry environment and update on strategic initiatives. To begin with, I am happy to share that Aarti Industries has delivered its highest-ever quarterly and half yearly revenue and EBITDA, a testament to our strong operational performance and sustained business momentum. We achieved robust volume growth driven by resilient export demand and our ability to pass through raw material cost variations. Most notably, our quarterly EBITDA surpassed the Rs. 400-crore threshold, reaching a record of Rs. 418 crore. Page 1 of 19 Escalating geopolitical tensions in the Middle East triggered significant crude oil volatility, driving raw material cost inflation across key chemical value chains. Almost all of our raw materials saw significant price increase, while RMs such as Sulphur saw prices surge by over 5-6x, combined with sharply elevated freight costs, strained global supply chain economics brought out challenges of the sort of soaring working capital and debt levels, maintaining supply chain stability to cater to market demands, etc. We believe the shifting dynamics in global trade present a compelling tailwind for Indian specialty chemical manufacturers, including Aarti Industries. China’s ongoing capacity rationalization, paired with India’s expanding trade agreements with countries like the UK and Europe, is set to solidify India’s position in global supply chains. With our deeply integrated manufacturing footprint and long- standing client relationships, we are well-positioned to capitalize on this shift — a trend that is beginning to translate into volume growth and margin expansion across our key value chains. Against this structural backdrop, our quarterly performance across key end-user segments reflected varying sector dynamics. Let me take you through it, segment by segment. ● Dyes & Pigments: Despite inflationary prices pressures from key raw materials like Sulphur, we delivered steady growth anchored by resilient domestic demand for NCB chain. ● Agrochemicals: While demand across select categories within the Agchem chain remains stable, allowing us to achieve volume growth, pricing trends remain mixed. The second half might reflect the impact of weaker monsoon in the domestic market. ● Pharma & Fluoro Products: We achieved pricing and volume gains in PNCB. Key paracetamol building blocks saw robust demand, bolstered by capacity rationalizations in China. The Fluoro products’ margins continue to remain under pressure. ● Polymers & Additives: Demand dynamics across high-end engineering, EV, and defense markets remain robust. While softness in the PDA chain created a short-term drag on our Q2 FY27 performance, we expect traction to resume in Q3 FY27, underpinned by accelerating DCB demand. ● Energy-Linked Portfolio: Blending dynamics remain favourable on the back of elevated crude oil prices and strong gasoline-naphtha cracks. Performance was also supported by price increase undertaken due to higher RM costs. To build a more steady and sustained business, we are transitioning towards a solutions-based approach across the broader Energy value chain. Leveraging our bulk shipment capabilities and robust R&D pipeline, we anticipate launching of several new solutions over the next 12 to 24 months. Now, turning to financial highlights for the quarter and six months ended 30th September, 2026, under review. Page 2 of 19 ● Total revenues increased both quarter-on-quarter and year-on-year, driven by strong volume gains as well as pass through of elevated input prices. Revenues in Q2 FY27 were at Rs. 3,887 crore, an increase of 73% over Q2 of last year. ● Q2 FY27 EBITDA increased by 44% year-on-year reaching Rs. 418 crore. Our H1FY27 EBITDA increased by over 58% to close at over Rs 802 crs, as against Rs 507 in H1FY26. ● Raw material prices continue to increase during the quarter, resulting in higher input costs. While raw material procurement in Q2 was efficiently managed with limited/ minimal availability issues, early indications for Q3 point indicates for the domestic RM, we will continue to have good availability and visibility while for imported RM, there could be supply chain gaps that we will have to mitigate. ● PAT for the quarter increased to Rs. 169 crore with growth of about 60% over the same quarter in the previous year. While on the half yearly basis, our H1FY27 PAT grew by 117% to Rs 324 crs from Rs 149 crs in last year Elevated RM prices have also stretched our working capital requirements over the past two quarters, pushing our net debt to over Rs. 4,650 crore and leading to higher finance costs. To strengthen our balance sheet, support long-term growth, and optimize our capital structure, the Board, on October 1, 2026, approved an enabling resolution to raise up to Rs. 1,000 crore by way of various avenues and/ or any combination of fund raise. The primary objective of this capital raise is to deleverage our balance sheet, strengthen our financial position, and build long-term flexibility to support strategic growth initiatives beyond FY28, FY29. The said enabling resolution has been approved by the Shareholders in the EGM held on 31st October 2026 Moving to our strategic initiatives and growth plans: Our product portfolio continues to expand across energy, agrochemical intermediates, advanced polymer formulations, and pharma building blocks, supported by our planned FY27 CAPEX of Rs. 700 crore to Rs. 800 crore. ● In Fuel Additives, the capacity utilization remained strong in Q2 following our expansion from 290 KTPA to 360 KTPA in the first quarter of 20 [Showing first 8,000 characters — download PDF for full document]