Archive · 26 Jun 2025
Aarti Industries: Margin Pressure Mitigated by Gasoline Demand
A chemicals company called Aarti Industries is having some trouble with its profits.
They make a product called NMA that helps make gasoline.
Because of some changes in the cost of gasoline, they think they will sell more NMA.
They're also expanding their business to new places like the US and Europe.
The company has plans to invest more money to grow even more.
They hope to make more money in the future, even though they're not giving exact numbers for this year.
They face some challenges because of what's happening in other countries, especially China.
Aarti Industries Ltd's Ebitda margin decreased in FY25, but its stock has rebounded.
The company's energy business, including NMA, is expected to see volume growth.
NMA volumes are anticipated to increase due to favorable gasoline-naphtha spreads.
Aarti Industries is expanding to the US and Europe to increase volumes.
The company plans to double Ebitda by FY28 through capex and cost-saving initiatives.
- Who
- Aarti Industries Ltd, a specialty chemicals company.
- What
- Aarti Industries is facing margin pressure but expects growth in NMA sales due to favorable gasoline-naphtha spreads.
- When
- The company's fiscal year 2025 saw a decrease in margins, and they anticipate growth starting in Q2FY26.
- Where
- The company is expanding its market to the US and Europe.
- Why
- They are expanding and anticipate volume growth due to favorable gasoline-naphtha spreads.
Market Challenges
Growth Prospects
Pricing Pressures and Tariffs
Market Challenges
Excess capacity in China is causing pricing pressure.
Growth Prospects
Favorable US tariffs on India could benefit Aarti Industries.
- Ebitda Margin FY25
- 13.8%
- Stock Rebound
- 37% from 52-week low
- NMA use
- Octane booster for gasoline
- Energy Business Revenue FY25
- 36% of total
- FY26 Capex
- Rs1,000 crore