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Q2 FY26 Performance Update 6th Nov, 2025 A Legacy of Excellence A Future of Possibilities
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2 Disclaimer AARTI INDUSTRIES LIMITED may, from time to time, make written and oral forward looking statements, in addition to statements contained in the company's filings with BSE Limited [BSE] and National Stock Exchange of India Limited [NSE], and our reports to shareholders. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the AARTI INDUSTRIES LIMITED. All information contained in this presentation has been prepared solely by AARTI INDUSTRIES LIMITED. AARTI INDUSTRIES LIMITED does not accept any liability whatsoever for any loss, howsoever, arising from any use or reliance on this presentation or its contents or otherwise arising in connection therewith.
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Index Company overview Q2 FY26 Highlights Future Outlook and Roadmap
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Index Company overview Q2 FY26 Highlights Future Outlook and Roadmap
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5 Aarti Industries at a Glance Speciality Chemicals Strategic Partnerships Feedstock Assurance and Supply Technology Sharing Joint Product Development Manufacturing Outsourcing Benzene based Downstream Products Toluene based Downstream Products Sulphuric Acid Products Other Speciality Chemicals Established by first generation technocrats in 1984 Integrated operations and high-cost optimization Key value chains include Nitro Chloro Benzenes, Di- Chlorobenzenes, Phenylenediamines, Nitro Toluene Value Chain and Sulphuric Acid & downstream Strong R&D capabilities with IPRs for customized products Strategically located: In western India with proximity to ports 100+ Products 1,100+ Domestic & Global Customers 60 Exporting Countries 16 Manufacturing Plants 11 Zero Liquid Discharge Plants 5 Co-generation Power Plants 2 State-of-the art R&D Centers 6000+ Employees
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6 Our Ethos CARE INTEGRITY EXCELLENCE PURPOSE Right Chemistry for a Brighter Tomorrow VISION To emerge as a Global Partner of Choice for leading consumers of speciality chemicals and intermediates MISSION Delighted Stakeholders AIL VALUES
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Index Company overview Q2 FY26 Highlights Future Outlook and Roadmap
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8 Business Highlights – Q2 FY26 Variable and Fixed cost optimization initiatives progressing as expected Growth Capex: Zone-4 projects execution progressing as per plan; expect gradual commissioning from next quarter Ramp up in MMA capacity utilisation with improved gasoline - naphtha delta supporting blending economics Active efforts underway to mitigate US tariff impact, and still sustain volume growth across value chains Fast track execution (commissioning in Q4 FY26) for: - Further debottlenecking of MMA capacity (300 KT) - Advanced agro intermediate PEDA (4000 MT) downstream of ethylation of value chain
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9 New Strategic Partnership: Long Term Chlorine Supply Agreement Long-term strategic supply agreement Secures chlorine supply from DCM’s Chlor-Alkali plant to AIL’s upcoming Zone-IV (Jhagadia) facility Strengthens chemical supply chain partnership to drive greater supply security, cost efficiency, and scalability for AIL Significant enhancement from the current offtake of 150 TPD, to steady-state incremental supply of 200 TPD, totaling 350 TPD to support future downstream growth Dedicated underground jacketed pipeline with precision engineering to ensure safe, reliable & environment-friendly logistics
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10 Q2 & H1 FY26 Highlights (Consolidated) Revenues EBITDA Profit After Tax YoY: 26%▲ QoQ: 21%▲ YoY: 44%▲ QoQ: 36%▲ YoY: 102%▲ QoQ: 150%▲ Revenues EBITDA Profit After Tax YoY: 9%▲ YoY: 1%▼ YoY: 21%▼ Rs. crore Revenue increased due to: Increased volumes specifically for MMA Benefits of Q1's deferred bulk shipments were realized in Q2 Business Volumes YoY: 118% ▲ QoQ: 48% ▲ US tariffs impacted volumes for key end use applications viz Dyes & Polymers. Other Factors Energy Non-Energy YoY: 17% ▲ QoQ: 15% ▲ Margins continue to remain under pressure across most product portfolios Finance Costs includes forex M2M loss of Rs 34 crore in respect of ECB borrowings Favourable income tax appellate order for seven Assessment years resulted into one-time exceptional income of about Rs. 29 crore. Exceptional Expense comprises of a one-time provision of about Rs. 7 crore towards land advance, presently being doubtful. 3,795 4,118 3,000 3,200 3,400 3,600 3,800 4,000 4,200 4,400 H1 FY25 H1 FY26 291 216 106 43 189 149 70 90 110 130 150 170 190 210 230 H1 FY25 H1 FY26
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11 Capacities and utilization trend for few major products Product Groups Capacity (in KTPA) FY25 (kT) Q2 FY25 (kT) Q1 FY26 (kT) Q2 FY26 (kT) Q-o-Q Y-o-Y Q2 FY26 Utilization % NCB 108 85.3 19.0 21.7 21.5 -1% 13% 80% DCB 120 88.6 23.3 19.3 22.0 14% -6% 73% Hydrogenation 60 44.4 11.2 12.3 11.3 -8% 1% 75% PDA 12 3.9 1.0 2.0 1.8 -10% 80% 60% NT 45 29.4 7.5 8.7 8.4 -3% 12% 75% Ethylation 25-30 14.5 3.2 4.6 3.8 -17% 19% 60% MMA 260 123 20.5 38.4 63.5 65% 210% 98% Achieved highest quarterly production for MMA driven by increased capacity; further debottlenecking efforts underway DCB volume increase supported by ODCB and downstream demand; expected to remain strong for H2 NT and Ethylation capacity utilization driven by MEA, DEA (Agrochemical Intermediates) demand; Expected to improve in H1 CY26 with commissioning of downstream projects in ethylation value chain (e.g., PEDA) PDA capacity utilization impacted on account US Tariffs; improvement linked to US-India trade deal
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12 Revenue by End Use Agrochemicals & Fertilizers Dyes, Pigments and Printing Inks Energy Pharma Polymer and Additives Others Rs. crore1 8,046 1,786 1,867 2,250 Agrochemicals application showing steady volumes, but margins remain under pressure Higher volumes in energy application driven by favorable blending economics, expanded capacities and spill over of bulk shipments from previous quarter Polymer & Additives application impacted by US tariffs; recovery linked to US-India trade deal Dyes, Pigment & Printing Inks and Pharma applications remains steady US tariffs impacted key products in end-user industries such as Polymers, Dyes, etc. 1. Gross revenues
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13 Application wise market updates & business highlights (1/2) End Use Agrochemical & Fertilizers Key Products Chloro Anilines, Di Chloro Phenols, Ethylated & Fluorinated products MMA, CaCl2 Revenue Share 19% 43% Domestic / Exports Market Update • Volume recovery visible in certain products but margins still remain under pressure • Relative US tariffs on India vs. China still evolving - increased uncertainty for downstream customers • The gasoline-naphtha crack remained strong in Q2 leading to improved blending economics; some compression expected in Q3 as winter season progresses • US tariff impacted US volumes and margins; re- negotiation underway with customers to sustain volumes Business Highlights • New capacity ramp up for ethylation products facing margin pressure from China • Accelerated execution to add PEDA capacity by Q4 FY26 in our product basket • Initiated customer engagements for Zone IV products; expected to come on stream gradually from Q4 FY26 • Efforts to strategically increase the customer base and geographic reach continue for MMA business • Increased competition from Indian and Chinese players • Calcium Chloride capacity expansion expected to commission in Q3 FY26 Energy & Additives Export 93% Domestic 7%Export 36%Domestic 64%
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14 Application wise market updates & business highlights (2/2) End Use Key Products NCBs, DCBH, PNT PNCB, MDCB & Fluorinated compounds PDCB, MPDA, ONA Revenue Share 11% 10% 12% Domestic/Exports Market Update • Muted demand growth in downstream markets with US tariffs impacting some applications • Pricing pressure continues to prevail • India’s domestic pharma market remains steady • Margin pressure especially in fluoro products from China persists • Q2 volumes impacted due to US tariffs • End customers remain cautious amid macroeconomic uncertainty • India US trade deal can help in recovering volumes Business Highlights • Targeting higher share in domestic market with export markets under pressure • Evaluating downstream integration options for select products • Domestic expansion by key strategic customers will support volume growth • Pursuing variable cost optimisation projects in fluro chain products • Diversifying demand growth for PDCB across various markets, including China • Targeting margin growth by cost optimisation and operating leverage Dyes, Pigments & Printing Inks Pharmaceuticals Polymer and additives Export 27%Domestic 73% Domestic 82% Export 89%Export 18% Domestic 11%
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15 Joint Ventures Augene Chemical Private Limited Joint venture for manufacturing and marketing of specialty chemicals with multiple downstream applications Combines the strengths of both partners who will supply essential raw materials to the JV Project execution is progressing well (expect commissioning in H1 CY26) and market development activities initiated Re Aarti Private Limited Focus on Chemical recycling of plastics Resource recovery capacity of 500 TPD is targeted by 2030 Works initiated with Technology partner Pre-processing schematic is finalised and CAPEX under progress Project Commissioning expected in H1 CY26
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Index Company overview Q2 FY26 Highlights Future Outlook and Roadmap
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17 Key EBITDA Growth Drivers in near term (FY26 - FY28) Cost Optimisation ₹ 150-200 crore Volume and margin ramp-up ₹ 350-550 crore CAPEX-led growth ₹ 300-450 crore Switching to Back Pressure Turbine to improve Cogen Renewable Power phase 2 Waste energy streams utilization, ETP cost optimisation Fixed cost optimization Yield improvement ✔ ✔ ✔ ✔ Acid, DCB & NCB value chain ramp-up Ethylation & NT volume ramp-up, downstream integration for select Ethylation product MMA capacity and volume ramp- up Fluorination and Speciality Chemicals ramp-up ✔ Pilot commissioned to fuel New Product Development MPP commissioning and ramp up Zone 4 commissioning and ramp up UPL JV commissioning and ramp up ✔ ✔ ✔ Completed Partially Completed Initiated - execution in progress Digital and Advanced Analytics led cost excellence initiatives
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18 Operating leverages and cost optimisation initiatives to drive EBITDA growth beyond volume growth Growth Outlook – consistent with previous update Consistent volume growth over 3 yrs driven by increased capacities Capex for FY26 estimated to be around ₹ 1000 Cr Target EBITDA range of ₹ 1,800-2,200 Cr in 3 years; Debt/EBITDA of <2.5x and ROCE of >15% 1800 - 2200 EBITDA, ₹ Cr
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19 Long term growth focus areas New Growth Avenues leveraging AIL’s core strengths • Sustainable manufacturing • Newer Development Capabilities • Customer Relationships MPP and Zone 4 Commercialization • R&D and MPP will support quick development, qualification and commercialization of new advanced chemistries • Chlorotoluene commissioning and ramp up will open up new opportunities in Agro and Pharma business segments Entry into Adjacent Markets and New Platforms • Leverage current capabilities to newer applications like advanced materials, battery materials, defense, coatings segments • Develop newer growth platforms in the space of sustainability / circularity Strategic Alliances and CDMO • Continue to promote India as manufacturing destination of choice and partner with customers for new India based investments • Leverage R&D strength to provide CDMO services to key clients
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20 Certifications
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