Analysts/Institutional Investor Meet/Con. Call Updates

August 7, 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 Q1 FY27 Earnings Conference Call. Ref.: Regulation 30 of the SEBI (LODR) Regulations, 2015. Please find enclosed the Transcript of the Q1 FY 2027 Earnings Conference Call held on July 31, 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 Q1 FY27 Earnings Conference Call July 31, 2026 Moderator: Ladies and gentlemen, good day, and welcome to Aarti Industries Q1 FY27 Earnings Conference Call. As a reminder, all participants 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 the conference call, please signal an operator by pressing “*” then “0” on your touch-tone 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, sir. Nishid Solanki: Thank you. Good afternoon, everyone, and thank you for joining us on Aarti Industries’ Q1 FY27 earnings conference call. Today, we are joined by senior members of the management team, including:  Mr. Suyog Kotecha, Executive 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. Good afternoon, everyone. Welcome to Aarti Industries Limited’s earnings call for the first quarter of the financial year 2027. I will walk you through our financial and strategic performance for the quarter, alongside the key milestones achieved across our growth initiatives. The quarter was characterised by a challenging macro environment, with persistent geopolitical tensions in the Middle East disrupting global supply chains, increasing freight costs and driving inflation in crude-linked raw material prices. Despite these headwinds, demand across our core products remained broadly stable, supported by our diversified customer base, operational resilience and market development efforts. Our ability to optimise the product mix in such constrained macros resulted into higher margins despite elevated prices. The West Asia crisis had a direct impact on our Energy business, temporarily halting exports to the region. The region’s share in our revenues declined from about 15% to 2% in this quarter. We successfully redirected a significant portion of these volumes to other markets, limiting the overall business impact. We are working on opportunities to open new fronts for supply in the region, which we expect to regain the volumes in the upcoming quarters. Page 1 of 17 The quarter witnessed elevated prices of key raw materials, particularly Benzene, Sulpur, Methanol and Aniline amongst others. High prices impacted the purchasing power in specific end applications such as dyes, selected agrochemicals and polymer compounds. This impacted our volumes during the quarter, however our robust supply chain and efficient inventory management resulted into market share gains and inventory gains, which contributed to our overall EBITDA growth. Let me now take you through our financial performance for the quarter. Overall, the Company reported:  Revenue of Rs. 2,627 crore, representing a growth of 41% Y-o-Y, which was primarily driven by higher input prices passed on to the customers.  EBITDA of Rs. 385 crore, growing 79% Y-o-Y, driven by a combination of product mix optimisation, monetisation of low-cost inventories. This was also supported by stable demand, improved realisations for select products and resilient execution despite temporary disruptions.  Profit After Tax of Rs. 155 crore, registering a growth of 260% YoY. Working capital requirements expanded during the quarter, driven by higher feedstock prices and increased export volumes. Consequently, debt levels and finance costs rose to support this requirement. Our business continues to be driven by two key segments – the Energy business, and the Non-Energy business. In the Fuel Additives, that’s Energy business, demand visibility remains robust. West Asia's contribution to revenues has declined primarily due to the ongoing regional conflict, thereby impacting sequential volumes. Meanwhile the other international markets continue to perform well, while our efforts to develop other potential markets have strengthened our ability to diversify volumes across geographies. We have completed our key fuel additives capacity expansion to 360 KTPA, from 290 KTPA, providing additional flexibility to serve newer markets with newer products as demand evolves. Against a volatile backdrop, we maintain an agile strategy, dynamically balancing volume growth with spread optimization to safeguard overall profitability despite ongoing fluctuations in feedstock costs, refining margins, and gasoline–naphtha crack spreads. Within the Non-Energy business, demand trends remained mixed. Polymers demand remained soft during Q1, primarily due to weak demand for downstream products in US & China, with recovery expected in Q2. Dyes and Pigments segment continues to face demand headwinds, driven by subdued demand amid a high raw material pricing environment and seasonal factors. Pharma demand continues to be stable, and the Agrochemical volumes were marginally lower, primarily owing to customer resistance to source at elevated RM Prices. Volume recovery is expected in Q2 supported by underlying stable demand. The suspension of export tax rebates in China has created favourable opportunities for our NCB value chain products. Page 2 of 17 While short-term export headwinds may persist due to the West Asia conflict, we expect sustained volume growth supported by capacity expansion and deeper market penetration. Overall, our business continues to demonstrate underlying strength anchored by steady volume growth, enhanced operational efficiencies, and the disciplined execution of our strategic roadmap. Barring the 3-6 months delay due to labour constraints and war related issues, our Zone 4 project expansion continues to progress. The project is being commissioned in a phased manner this year, FY27, with ramp-up expected over FY28 and FY29. Our PEDA project is progressing through market seeding activities and expected to be commercialised soon. We are also looking to debottleneck our DCB capacity to 140 KTPA backed by volume increase supported by PDCB and downstream demand. In line with our earlier guidance, FY27 CAPEX remains on track within the Rs. 700 to 800 crore range, with about Rs 180 crores already deployed in Q1FY27. With our major expansion programs nearing completion, CAPEX intensity is expected to reduce significantly starting next year. Going forward, our capital deployment will pivot toward high-growth, high-return niche projects. Aarti Industries is also accelerating its long-term strategy through high-impact, collaborative partnerships and ESG-led growth initiatives. Our JV with Superform for downstream amine derivatives exemplifies this approach, leveraging complementary commercial and manufacturing strengths to unlock significant market potential, reflecting the strategic [Showing first 8,000 characters — download PDF for full document]