Aarti Surfactants Ltd

Business overview

• Specialises in high-performance ionic, non-ionic and specialty surfactants.
• Two manufacturing units in Madhya Pradesh and Silvassa; R&D centre in Navi Mumbai.
• Export presence across Asia, Europe, Africa and the Americas; 50+ products, 100+ customers, 50+ countries.

Operational highlights

• FY2026 standalone revenue ₹85,912.92 Lakhs, up 30% YoY.
• Standalone EBITDA ₹4,731.80 Lakhs; margin 5.51% (vs 7.56% prior).
• Standalone PAT ₹1,267.83 Lakhs; margin 1.48% (vs 2.27% prior).
• Consolidated revenue ₹85,912.92 Lakhs; EBITDA ₹4,721.13 Lakhs; PAT ₹1,234.21 Lakhs.
• Consolidated EBITDA margin 5.49%.
• Credit rating upgraded to Crisil A- / Stable from CARE BBB+/ Stable.
• Rights issue completed in 2023; ₹49.52 Crores; 2024: Preference shares listed.
• 2025: Fully operational R&D centre established; ongoing consolidation and efficiency focus.

Financial performance

• Revenue growth driven by higher volumes/price realisation in core surfactants.
• Standalone EBITDAM margin decline reflects mix and input-cost dynamics; PAT affected by margins.
• Consolidated metrics align with standalone results; maintains stable balance-sheet indicators.

Capital structure & liquidity

• Credit rating upgraded: Crisil A- / Stable, from CARE BBB+/ Stable.
• Historical capital actions include 2023 rights issue and 2024 listing of preference shares.

Strategic priorities & outlook

• Focus on consolidating and strengthening operations; emphasis on operational efficiencies, resource optimization, financial discipline.
• Accelerate growth in high-margin skincare segment; expand global footprint via existing export network.
• Sustainability-led product innovation via in-house R&D.

Governance & leadership

• Credit-rating action noted; no governance changes disclosed in the presented material.

AGM Details

• Date and time: Sept 29, 2026, 04:00 p.m. (IST).
• Mode: VC/OAVM.
• Quorum present; 58 members attended.

Resolutions

• Ordinary: adopt standalone and consolidated financial statements for year ended 31 Mar 2026.
• Ordinary: dividend of 10% (Re 1 per equity share).
• Ordinary: re-appoint Mr. Dattatray S. Galpalli by rotation.
• Special: re-appoint Nikhil P. Desai as CEO & MD.
• Special: re-appoint Santosh M. Kakade as Whole-time Director.
• Special: appoint Vandana B. Patravale as Director and Independent Director.
• Special: alter Main Object Clause of the MOA.
• Special: enhance borrowing limits.
• Special: enhance charge creation limits for borrowings.
• Special: ratify remuneration payable to Cost Auditor for FY 2026-27.

Voting Status

• Remote and on-site voting conducted; results to be declared within two working days.
• No questions raised; speaker queries addressed.
• Meeting concluded at 05:10 p.m.

Aarti Surfactants Ltd — Trading Window will remain 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

Regulatory action update

• Goods reclassified from DMLA to Farmin DM 2465.
• Confiscated 171.444 MT; value Rs 2,30,34,882; redemption fine Rs 25 lakh.
• Differential duties demanded: Rs 11,10,373 and Rs 1,42,87,031 with interest.
• Penalties: Rs 1.53 crore on company; Rs 10,00,000 on Nikhil Desai.
• Bond encashment Rs 2,76,35,214 and bank guarantees Rs 35,00,000.
• Impact not material; appeal before CESTAT.

Resignation of NED

• Nisha B. Shah ceased as Non-Executive Independent Director effective close of business hours September 11, 2026.
• Reason: additional time commitments preventing adequate board participation.

Rating action

• Long-term bank loan facilities of Rs 200 crore rated Crisil A-/Stable, upgraded from CARE BBB+; Stable.

Instruments Rated

• Long-term bank loan facilities: Rs 200 crore, Crisil A-/Stable.

Rating agency

• CRISIL Ratings Limited is the rating agency.

Outlook

• Outlook: Stable.

Rationale

• Rationale not disclosed in the filing.

Material change

• Transition from CARE Ratings to CRISIL Ratings.