Aarti Industries Limited is the flagship company of the Aarti group and stands as a leading Indian manufacturer of specialty chemicals with a global footprint. The company operates as one of the most competitive and highly integrated benzene-based specialty chemical companies in the world, combining process chemistry competence with scale-up engineering competence. The company manufactures chemicals used in the downstream manufacturing of agrochemicals, polymers, additives, surfactants, pigments and dyes, making it a global partner of choice for various major global and domestic customers.
With over 100 products in its portfolio, the company serves 700 domestic customers and 400 export customers spread across 60 countries. Aarti Industries has extended its global reach to over 60 countries, including North America, Europe, and Japan, through enduring strategic partnerships with leading global manufacturers.
Aarti Industries operates as a diversified chemicals company engaged in specialty chemicals, agrochemicals and fertilizers, dyes, pigments and printing inks, pharmaceutical intermediates, polymer and additives, energy-related chemicals, and other specialty applications. The company operates through two main segments: Specialty Chemicals and Pharmaceuticals.
- The Specialty Chemicals segment serves polymer and additives, agrochemicals and intermediates, dyes, pigments, paints, and printing inks, pharma intermediates, and fuel additives, rubber chemicals, and resins markets.
- The Pharmaceuticals segment serves active pharmaceutical ingredients and intermediates for innovators and generic companies.
The company is integrated across over 200 products, including Benzene products, Toluene products, Sulphuric Acid products, and other specialty chemicals. With an offering of 100+ products, the company caters to a range of end-use products and industries comprising Agrochemicals, Pharmaceuticals, Polymers, Pigments, Printing Inks, Dyes, Fuel additives, Aromatics, and Surfactants.
Aarti Industries operates major manufacturing facilities in Vapi, Jhagadia, Dahej and Kutch in Gujarat, and in Tarapur in Maharashtra. The company manufactures organic and inorganic chemicals at its major facilities in Vapi, Jhagadia, Dahej, and Kutch in Gujarat, and also manufactures active pharmaceutical ingredients (API) at its units in Tarapur and Dombivali in Maharashtra, and at Vapi. The company holds a strong market position in the NCB-based specialty chemicals segment.
For Q4 FY25, Aarti Industries reported revenue of ₹1,946 Crore, representing a 9.82% increase from the same period last year. The company's net profit for Q4 FY25 was ₹96 Crore, though this represented a 27.27% decline from the previous year. On a quarterly basis, the company showed strong recovery with net profits jumping 108.7% from the previous quarter. The net profit margin for Q4 FY25 stood at 4.93%.
Key financial highlights include:
- Revenue: ₹1,949 Crore as of March 2025 (Q4 FY25)
- Net Profit: ₹96 Crore as of March 2025 (Q4 FY25)
- Market Cap: ₹17,196 Crore
- Promoter Holding: 42.2%
The company has begun securing large, multi-year contracts with global firms to provide more stability and predictable revenue streams, shifting its business model from being a price setter to securing long-term deals. One significant deal signed in December is a nine-year agreement with a global agrochemicals company, which has a total revenue potential of ₹30 billion, allowing the company to maintain predictable income despite competitive pressures.
The company faces increasing pressure from Chinese competition, with 70-80% of its products facing direct competition from China. To address these challenges, Aarti Industries is focusing on long-term strategies, including targeting niche specialty chemicals through similar long-term contracts.
Emkay Global Financial upgraded Aarti Industries to a BUY rating with a target price of ₹525 in June 2025, citing strong performance potential driven by capacity ramp-up, macro tailwinds, and cost optimization measures. The firm expects the company to achieve its FY28 EBITDA guidance of ₹20 billion. Sharekhan maintains a 'Buy' rating with a target price of ₹550, citing strong Q4 FY25 results and positive growth expectations for FY26.
The stock has rebounded 37% from its 52-week low, though it has dropped 32% over the past year due to margin issues. The company reports volume-led growth in agrochemicals with a 15% revenue increase, and is investing in capacity expansion with potential for improved competitiveness in the US market.
The company has adopted the 4R principle – Reduce, Reuse, Recycle, and Recover, and takes a holistic approach towards sustainability by optimizing the use of available resources such as raw materials, utilities, and human resources to minimize environmental footprint. Aarti Industries' near-term emission reduction targets have been validated by the Science Based Targets initiative (SBTi).
The company was listed on January 5, 1995, and is currently chaired by Rajendra V Gogri. With its integrated business model, global presence, and focus on specialty chemicals, Aarti Industries continues to position itself as a key player in India's chemical manufacturing sector while navigating market challenges and pursuing sustainable growth strategies.
