Aarti Industries Ltd

Agreement details

• 10+ year strategic manufacturing and supply agreement with a global speciality chemical company.
• Aarti will set up, commission, and operate a dedicated manufacturing facility.
• Facility will use the customer's proprietary process technology.
• Contract has estimated revenue potential of about Rs 1500 crores.
• Term will span 10+ years.
• Awarding entity is a domestic subsidiary of an international entity.
• No related party transactions; arm's length not applicable.

Agreement highlights

• 10+ year dedicated manufacturing and supply agreement with a global speciality chemical company.
• Estimated revenue potential of ₹1,500 crores over the contract term.
• Facility to be dedicated in India with CAPEX under US$25 million.
• Commercial operations expected to commence in FY2028-29, pending approvals.
• Deal broadens AIL's global customer base and strengthens its manufacturing portfolio.
• CAPEX financing includes a structured arrangement; dedicated facility supports India growth.

Meeting Details

• Board to meet on Thursday, October 1, 2026; time and venue not disclosed.

Key Agenda Items

• Assess fund-raising options including equity, convertible/debt instruments, QIP, private/public/preferential issues, and mixed issuances subject to approvals.

Capital / Securities

• Allotted 14,669 Equity Shares of ₹5 under PSOP 2022 on Sept 24, 2026.
• Pari-passu rank with existing equity shares.
• Paid-up capital increased from ₹1,81,36,33,475 to ₹1,81,37,06,820.

Aarti Industries Limited – Trading Window closed from October 1, 2026, until the expiry of 48 hours after the declaration of Financial Results for the quarter and half year ended September 30, 2026

AGM details

• AGM held on 21 September 2026 at 11:00 IST via VC/OAVM.
• Record date for dividends: 14 September 2026.
• Remote e-voting prior and e-voting during AGM conducted.

Key resolutions and outcomes

• Adoption of financial statements and board reports; Ordinary; passed.
• Dividend per equity share approved; Ordinary; passed.
• Re-appointment by rotation of a director; Ordinary; passed.
• Re-appointment by rotation of another director; Ordinary; passed.
• Appointment of Managing Director for five-year term; Ordinary; passed.
• Appointment/renewal of Non-Executive Director for five-year term; Ordinary; passed.
• Remuneration of Cost Auditors for FY 2026-27; Ordinary; passed.
• Profit-related Commission to Non-Executive Directors; Ordinary; passed.

Business Overview

• Integrated specialty chemicals company with Nitro Chloro Benzenes, DCB, NCB, PDA, NT, MMA value chains.
• Strategically located in western India with port access and strong R&D/IP.
• FY26 volumes grew over 30%; margins pressured by competitive landscape.

Operational Highlights

• MMA capacity expanded 200→290 kTPA in FY26, to 360 kTPA in Q1FY27.
• Zone IV project underway; commissioning targeted FY27.
• DCA JV with Superform; plastics recycling; commissioning H1 FY27.
• Augene and Re Aarti JV under execution; commissioning FY27.
• Exclusive backward integration with global customer; ₹200-250 crore investment.
• US$150 million multi-year supply contract till March 2030.
• Revenue FY26 ₹9018 crore; volumes rising; export mix improving.

Financial Performance

• FY26 volumes grew >30%; EBITDA growth muted due to margins.
• Exceptional income ₹29 crore; exceptional expense ₹22 crore.
• Working capital and debt rose due to RM price spike amid West Asia conflict.
• Fixed and variable cost improvements totalling ₹100 crore; benefits to accrue with volumes.

Capital Structure & Liquidity

• Debt levels increased; working capital higher due to raw material costs.
• Capex plan: ₹300-450 crore for growth; all projects to commission FY27.
• Upstream integration capex: ₹200-250 crore over next two years.
• US$150 million contract to support capacity utilization without significant capex.

Strategic Priorities & Outlook

• Zone IV commissioning and MPP commercialization to drive near-term growth.
• Explore adjacent markets: advanced materials, battery materials, defense, coatings.
• CDMO partnerships; leverage India manufacturing to attract client investments.
• Target FY27 completion of major projects; EBITDA uplift from upstream integration.
• Sustainability: 70% renewable energy target by FY27.

Risks & Mitigation

• PDA production constrained by US tariffs and China competition.
• Raw material price volatility due to regional conflicts; mitigated by cost-saving measures.

AGM Details

• AGM held Sep 21, 2026 at 11:00 a.m. IST via VC/OAVM.
• Remote e-voting cut-off: Sept 14, 2026; voting Sept 18–20, 2026.

Resolutions put to vote

• Adoption of annual financial statements for year ended March 31, 2026.
• Declaration of dividend for year ended March 31, 2026.
• Re-appointment of Shri Ajay Kumar Gupta on rotation.
• Re-appointment of Shri Suyog K. Kotecha on rotation.
• Re-appointment of Rashesh C. Gogri as Non-Executive Director.
• Appointment of Suyog Kotecha as MD and CEO for five years.
• Payment of Profit Related Commission to Non-Executive Directors.
• Remuneration of Cost Auditors for FY 2026-27.

Voting status

• Voting results will be declared within two working days after AGM.

Director and governance changes

• Rashesh C. Gogri to transition to Non-Executive Director from Oct 1, 2026.
• Renil R. Gogri to transition to Non-Executive Director from Oct 1, 2026.
• Rajendra V. Gogri to serve as Non-Executive Chairman from Oct 1, 2026.
• Suyog Kotecha to be MD & CEO from Oct 1, 2026.

Meeting Details

• Date: September 22, 2026.
• Meeting type: mix of one-on-one and group meetings; place: Mumbai.
• Event: Anand Rathi Annual Flagship Conference – G-200 Summit 2026.

Participants

• Key participants: company management representatives.

Purpose

• Purpose: participation in investor meet with Anand Rathi for investor interaction.

Additional Notes

• Note: interactions subject to last-minute changes.