Aarti Surfactants' Q1 FY 2025-26 Quarterly Results

Result Summary

• Aarti Surfactants Ltd reported a 36.2% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Jun (Q1 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 50.1%.
• Its expenses for the quarter were up by 39.6% QoQ and 50.7% YoY.
• The net profit decreased 36.8% QoQ and increased 32.4% YoY.
• The earnings per share (EPS) of Aarti Surfactants Ltd stood at 3.5 during Q1 FY 2025-26.

Financial Statments for Q1 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Aarti Surfactants Ltd is a prominent player in the chemical industry, specializing in the manufacture and supply of surfactants. Surfactants are compounds that lower the surface tension between two liquids or between a liquid and a solid, and are crucial in the production of detergents, emulsifiers, foaming agents, and dispersants. The company caters to a variety of sectors, including personal care, home care, and industrial applications. As of the latest data available up to October 2023, there are no specific recent developments or major changes in the company's business operations or strategic direction.

Revenue

In the first quarter of the fiscal year 2026 (Q1FY26), Aarti Surfactants Ltd reported a total income of ₹215.94 crores. This represents a significant quarter-over-quarter (QoQ) increase of 36.2% compared to the ₹158.60 crores recorded in the fourth quarter of fiscal year 2025 (Q4FY25). The year-over-year (YoY) growth from the first quarter of fiscal year 2025 (Q1FY25), where total income was ₹143.90 crores, stands at 50.1%. This substantial increase demonstrates a robust growth trajectory in the company's revenue stream over the past year.

Profitability

The company's profit before tax (PBT) in Q1FY26 was ₹4.04 crores, a decrease of 40.3% QoQ from ₹6.77 crores recorded in Q4FY25. However, when compared to Q1FY25, where the PBT was ₹3.31 crores, there is a 22.1% YoY increase. The tax expense for Q1FY26 was ₹1.10 crores, showing a significant QoQ decrease of 47.9% from ₹2.11 crores in Q4FY25, with a marginal YoY increase of 0.9%. The profit after tax (PAT) for Q1FY26 amounted to ₹2.94 crores, which is 36.8% lower QoQ than the ₹4.65 crores reported in Q4FY25, but 32.4% higher YoY compared to ₹2.22 crores in Q1FY25. The earnings per share (EPS) for the same period was ₹3.50, representing a QoQ decline of 36.4% from ₹5.50 in Q4FY25, and a YoY increase of 34.6% from ₹2.60 in Q1FY25.

Operating Metrics

Total expenses for Aarti Surfactants Ltd in Q1FY26 were ₹211.90 crores, which reflects a 39.6% QoQ increase from ₹151.83 crores in Q4FY25 and a 50.7% YoY rise from ₹140.59 crores in Q1FY25. This indicates that the increase in total income was accompanied by a proportionate rise in total expenses over the same periods. The data indicates fluctuations in quarterly profits, with a notable decrease in both profit before and after tax on a QoQ basis, despite the YoY growth. The decrease in tax expenses corroborates with the reduction in quarterly profit before tax. The financial data for Q1FY26 demonstrates a pattern of increased expenses and decreased profitability on a quarterly basis, yet illustrates growth on an annual basis.