Aarti Industries Q1: PAT triples to ₹155 Cr on 42% revenue jump, margins expand
PAT +257.9% YoY · revenue +42.4% · margins expanding
₹2,387 Cr
+42.4% YoY
₹155 Cr
+257.9% YoY
6.49%
+3.9pp YoY
₹4.27
Aarti Industries delivered a sharp Q1 FY27 recovery. Consolidated revenue from operations rose 42% YoY to ₹2,387 Cr (up 8% QoQ), and net profit more than tripled to ₹155 Cr from ₹43 Cr a year ago, also up 13% sequentially from ₹137 Cr. On a standalone basis PAT was ₹144 Cr on ₹2,241 Cr revenue. The magnitude of the YoY jump is amplified by a depressed Q1 FY26 base, when net margin was just 2.31%; consolidated and standalone tell the same story (no material divergence in growth).
Q1 FY-2027 vs prior quarters
The print is a margin-expansion story riding operating leverage. Consolidated operating margin widened to 14.54% from 11.35% YoY (14.15% QoQ) and net margin to 5.89% from 2.31% (5.67% QoQ), as topline growth outpaced cost of materials while depreciation (₹124 Cr) and finance costs (₹83 Cr) stayed broadly steady. A ₹2 Cr exceptional gain from divesting subsidiary Shanti Intermediates is immaterial (<0.1% of revenue/PAT), so reported and underlying PAT growth are effectively identical (~258% raw, ~256% adjusted).
The stock went into the print at ₹480.2, up 2.7% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 4 consecutive quarters; revenue is at a 6-quarter high.
What the summary numbers don't show
Consolidated EPS ₹4.27 vs ₹1.19 YoY — standalone ₹3.98 vs ₹1.20
Management projects a challenging near-term due to geopolitical disruptions in the Middle East, which will fully impact the upcoming quarter, alongside significant raw material and freight cost pressures. FY27 capex is guided lower at INR 700-800 crore, reflecting a focus on capital efficiency and deleveraging, with ne
— This quarter: beat
Against its own outlook, the quarter reads as a beat: on the May concall management struck a cautious near-term tone, flagging Middle East geopolitical disruption that would "fully impact the upcoming quarter" plus raw-material and freight cost pressures — yet Q1 delivered strong growth and margin gains. Full-year FY27 street consensus sits near ₹8,290 Cr revenue / ₹419 Cr PAT; this quarter's ₹155 Cr PAT tracks ahead of that trajectory, though no brokerage-specific Q1 preview was available. One caveat cuts against guidance: consolidated net debt-equity rose to 0.80 from 0.72 QoQ (0.66 YoY), whereas management had guided net debt to decline alongside a lower ₹700-800 Cr FY27 capex.
W1
Middle East disruption management said would 'fully impact' the quarter — Q1 NPM still held at 5.89%; watch whether it lands in H2
W2
Net debt-equity at 0.80 vs guided decline; FY27 capex guided ₹700-800 Cr — verify deleveraging resumes
W3
Margin durability: OPM 14.54% vs 11.35% YoY — whether the recovery sustains against flagged RM/freight pressures
Clean digital PDF, in ₹ Cr; revenue shown as net of GST collected. Consolidated Q1FY27 carries a ₹2 Cr exceptional GAIN (SIPL divestment, note 7) — immaterial (<0.1% of rev/PAT). Q4FY26 column is balancing figures per auditor. Huge YoY PAT jump amplified by a depressed Q1FY26 base (NPM 2.31%).
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