Aether Industries Ltd

ESG rating update

• ESG rating update: Crisil assigns Aether Industries a rating of 58, up from 51.
• Rating dated September 28, 2026.
• The company did not engage Crisil; rating conducted independently from public information.
• Category: Adequate.
• Result may influence ESG perception; no direct financial impact disclosed.

Meeting Details

• Date: September 23, 2026; One-on-One meetings; Physical in Mumbai; Investors: Multiple Institutional Investors.

Participants

• Key company participant: Company Secretary & Compliance Officer.

Purpose

• Purpose: Schedule investor meetings; no UPSI to be discussed.

AGM details

• Date: 11 September 2026
• Time: 11:00 AM
• Mode: Video Conferencing / Other Audio-Visual Means

Key resolutions

• Adoption of standalone and consolidated financial statements and reports.
• Dividend declaration approved.
• Remuneration of Cost Auditor for FY 2026-27 approved.
• Re-appointment of multiple directors (non-executive and whole-time).

Voting results

• All resolutions passed as per Scrutinizer's report.

Dividend

• Dividend declaration approved; per-share amount not disclosed.

Director changes

• Re-appointments of directors, including non-executive and whole-time roles, approved.

Auditor appointments

• Remuneration for Cost Auditor approved for FY 2026-27.

AGM details & resolutions

• AGM held on Sep 11, 2026 at 11:00 IST via VC / OAVM.
• Resolution 1: Adopt standalone and consolidated financial statements for the year ended Mar 31, 2026.
• Resolution 2: Re-appoint Kamalvijay Ramchandra Tulsian as Non-Executive Director.
• Resolution 3: Re-appoint Ishita Surendra Manjrekar as Non-Executive Director.
• Resolution 4: Ratify remuneration payable to Cost Auditor for FY 2026-27.
• Resolution 5: Re-appoint Ashwin Jayantilal Desai as Managing Director.
• Resolution 6: Re-appoint Purnima Ashwin Desai as Whole-time Director.
• Resolution 7: Re-appoint Rohan Ashwin Desai as Whole-time Director.
• Resolution 8: Re-appoint Aman Ashwinbhai Desai as Whole-time Director.

Overview

• Specialty chemical manufacturer based in India; standalone BRSR for FY2025-26.
• Turnover ₹9,401.69 million; three operating sites; 16 states; 20 international countries.

Key ESG Risks & Opportunities

• Transition risk from fossil-fuel utilities; mitigated by 31 MW solar.
• Water-intensive processes require ZLD and SBT; aims to reduce effluent and cost.
• Data privacy/cybersecurity risk; mitigated by ISO 27001 and SRP solvent recovery.
• CO2 reduction opportunity via Converge; capture up to 40% CO2 by weight.
• On-site solar and SRP deployment support lower energy/material costs.

Governance & Policy Highlights

• Board-approved ESG policies cover nine NGRBC principles; no separate sustainability committee.
• Executive Directors oversee sustainability decisions; governance described in BRSR; independent assurance obtained.
• Whistleblower policy and POSH; no penalties; one shareholder complaint.
• Independent assurance by JointValues on BRSR Core; standalone boundary.
• RPT disclosures: 2.97% purchases, 90.99% loans, 100% investments with related parties.
• Value chain supplier code; 75% value chain partners covered by awareness.

Social Responsibility & Workforce

• Total workforce 1,449; 817 permanent, 632 workers; 96.33% male, 3.67% female among permanent.
• Well-being spend 0.34% of revenue; LTIFR 0; injuries 4 employees, 12 workers.
• Return-to-work/retention rate 100% for parental leave.
• CSR beneficiaries ~2,000; education, healthcare, elderly care, inequality reduction.
• 100% training for permanent employees and workers.
• No unions; grievance mechanisms include WB/POSH; accessible to differently abled.
• Inputs: 91.28% sourced within India; 1.54% directly from MSMEs.

Environmental Performance

• Total energy consumption 472.74 TJ; renewable 92.98 TJ; non-renewable 84.82 TJ; fuel 149.73 TJ.
• Energy intensity 0.50 per turnover; 0.32 per physical output.
• Water withdrawal 34,111 KL; water intensity 73.80 per PPP; 23.54 KL/FTE.
• Zero Liquid Discharge implemented; SRP solvent recovery; 31 MW solar; no groundwater.
• Scope 1 emissions 7,696.08 tCO2e; Scope 2 emissions 17,768.27 tCO2e.
• Emission intensity: 55.10 tCO2e per million turnover; 17.58 tCO2e per FTE.
• Total waste 4,399.25 MT; plastic 85.64 MT; E-waste 0.99 MT; hazardous waste 4,307.45 MT.
• Recovered waste via recycling 1,126.36 MT; disposal per category described.
• EcoVadis Silver; UN Global Compact member; CRISIL ESG rating; NSE sustainability rating.
• Converge platform reduces CO2; target 850 KTA market.

Stakeholder Engagement & Complaints

• Key stakeholder groups include customers, investors, employees, communities; multi-channel engagement; frequent interactions.
• CSR Committee oversees ESG topics; stakeholder feedback reported periodically.
• Shareholders filed 1 complaint; other groups had none; no unresolved grievances.
• Grievance mechanisms include whistle-blower, POSH channels; accessible to all.
• Approximately 30% of value chain partners assessed for human rights risks.

Other Notable Metrics

• Assurance: BRSR Core independently assured by JointValues; standalone scope.
• External recognitions: EcoVadis Silver; UN Global Compact member; CRISIL ESG 51; NSE 61/100.
• Inputs: 91.28% sourced within India; 1.54% from MSMEs; no preferential procurement policy.
• No major adverse environmental impacts reported in the value chain.

AGM details

• AGM date/time 11 Sep 2026, 11:00 IST, via VC/OAVM.
• Voting eligibility cut-off 5 Sep 2026.
• Remote e-voting window 8–10 Sep 2026 (09:00–17:00 IST).

Key resolutions

• A: Ordinary: Adopt standalone and consolidated financial statements for the year ended 31 March 2026.
• B: Ordinary: Re-appoint Kamalvijay Tulsian as Non-Executive Director.
• C: Ordinary: Re-appoint Ishita Surendra Manjrekar as Non-Executive Director.
• D: Special: Ratify cost auditor remuneration for FY 2026-27 at ₹1,20,000.
• E: Ordinary: Re-appoint Ashwin Desai as Managing Director for 5 years; monthly remuneration Rs 12.07 lakh.
• F: Ordinary: Re-appoint Purnima Desai as Whole-Time Director for 5 years; Rs 12.07 lakh.
• G: Ordinary: Re-appoint Rohan Desai as Whole-Time Director for 5 years; Rs 16.61 lakh.
• H: Ordinary: Re-appoint Aman Desai as Whole-Time Director for 5 years; Rs 18.11 lakh.

Voting results

• Voting results not disclosed in this filing.

Director changes

• Ordinary: Re-appoint MD/WDs: Ashwin Desai, Purnima Desai, Rohan Desai, Aman Desai for five-year terms.

Auditor appointments

• Ratification of cost auditor remuneration for FY2026-27: ₹1.20 lakh.

Financial snapshot

• Consolidated revenue FY2026: ₹11,601.41 MM; YoY growth 38%.
• EBITDA ₹3,546.60 MM; margin 30.57%.
• PAT ₹2,194.63 MM; margin 18.58%.
• ROCE 9.97%; debt-equity 0.18x; net debt ₹7,398.75 MM.
• Operating cash flow ₹1,423.82 MM; capex ₹6,233.16 MM; FY27 capex guide ₹3,000-3,500 MM.
• Domestic revenue share 75%; exports 25%.
• Site 3++ commercial production began Feb 2026; Site 5 blocks readied for Jun 2026.
• 19 marquee clients onboard; 50+ customer/certification audits.
• Solar capacity 31 MW; ZLD and sustainability initiatives under way.
• Dividend: No dividend declared in FY2025-26.

Revenue mix & drivers

• CRAMS and CEM together 55% of revenue; target ~70% by FY2029-30.
• LSM contributed 43% of consolidated revenue; pricing recovered in last two quarters.
• Pharma & Agrochemicals: 46%; Oil & Gas: 21%; Material Science: 17%.
• Milliken, Baker Hughes, SEQENS, Saudi Aramco partnerships underpin growth.
• Site 3++ commenced commercial production; Site 4 ramped; Site 5 semiconductor line planned.
• Pharma & Agro mix declined from 67% to 46% as new high-value segments grew.

Capex & capacity expansion

• Site 3++ commenced commercial production Feb 2026; ramp-up ahead of schedule.
• Site 5 (Panoli): first two production blocks for commercial June 2026; Phase 2 in progress.
• Site 4 revenue rose to ₹219 crore; now ~19% of total sales.
• R&D complex: 120 fume hoods and 15 labs; commissioning by FY2027-28.
• FY2026 capex ~₹450-₹500 crore for Site 3++ and Site 5 Panoli; FY27 capex ₹3,000-₹3,500 crore guidance.

R&D & technology

• R&D spend ₹862.13 MM (7.3% of revenue); world-class pilots and labs expanded.
• R&D team ~350 scientists/engineers across 11 groups; DSIR-recognized in-house centre.
• Collaborations with NCL, ICT, UTU, SVNIT; sponsored PhD programs.
• Next-gen: integrated polymerisation capability; 120 fume hoods and 15 labs planned.
• Digitalisation: data analytics, modelling, and process simulation to de-risk scale-up.

Geography & customers

• Domestic revenue share 75%; exports to 20 countries.
• Global customer base exceeds 300; 19 new marquee clients in FY2025-26.
• Export markets include US, Germany, UK, Japan, and SEA; India remains strong.
• Five manufacturing sites in India; Surat is the hub; Panoli site under expansion.
• Growth driven by long-term CRAMS/CEM engagements and contracted manufacturing.

ESG & sustainability

• 31 MW solar capacity; ZLD with SRP; Converge CO2-based polyols up to 40% CO2.
• EcoVadis Silver; UN Global Compact member; CRISIL ESG rating; NSE Sustainability score ~61/100.
• Waste: total 4,399.25 MT; 1,126.36 MT recycled; multiple hazardous wastes managed with TSD.
• Water: 34,111 KL withdrawal; 73.80 KL/₹1M PPP; renewable energy reduces footprint.
• Safety: ISO 45001; 50 customer/cert audits; strong QEHS governance.

Governance & controls

• Board: 12 members; 4 Executives, 6 Independent; no BoD changes in FY2025-26.
• Audit Committee held 4 meetings; Risk Management Committee held 2 meetings.
• Whistleblower policy in place; 2 familiarisation programs for Independent Directors.
• ESOS 2021 program: total options 4.77 million; ongoing vesting and valuation under Black-Scholes.
• Internal controls: robust IFCS; ongoing governance enhancements; no material audit qualifications.

Outlook & strategic priorities

• Focus on CRAMS and CEM to reach ~70% of revenue by FY2029-30.
• EBITDA margin target: 29-30% for FY2026-27; ROE ~9% and ROCE ~10%.
• Continue Site 5 ramp, Site 3++ scale-up, and R&D expansion to 120 labs.
• Leverage China+1 shift; expand in Japan, Korea, Taiwan; deepen European leadership.
• Strengthen HSE, ESG governance; scale renewable energy to cut costs.

Post-year events & notable incidents

• March 11, 2026: fire at external Hojiwala warehouse; ₹70.0m inventory loss.
• November 29, 2023 fire: asset loss ₹299.68m; insurance receipt ₹210m; FLOP claim ₹258.23m.
• Insurance recoveries and ongoing claims disclosed; no material impact on going concern.

Dividend & shareholder matters

• No dividend declared for FY2025-26; dividend policy remains in place.
• AGM communications moved to electronic; remote e-voting available; VC/OAVM option for meeting.

Meeting Details

• Dates: August 17-18, 2026
• Meeting type: One-on-One / Group
• Mode: Physical
• Event Organizer: Ambit-Daiwa India Access

Participants

• Key company executives not specified

Purpose

• Intimation of participation in investor conference
• No UPSI to be discussed during the Meet

Additional Notes

• Schedule subject to change by the Organiser or the Company

Financial Performance

• Q1 FY27 revenue up 27% YoY to INR3,266 million.
• EBITDA INR1,028 million; margin 31% vs 30% YoY.
• PAT INR627 million; PAT margin 19%.
• Insurance claim for fixed assets fire received in Q1 FY27.
• Capex for Q1 FY27 at INR943 million; FY27 guidance INR3,000-3,500 million.
• Capacity utilization: Site2 74%, Site3 69%, Site4 59%.

Operations and Strategy

• CEM and CRAMS to contribute 70%+ of revenue in next 2 years; margins rise with mix.
• Onboarded 10 marquee clients; 9 audits cleared.
• Phase 1 Magnum Site5 online; Phase 2 planned FY2030.
• Site 3++ ramping; Milliken supply agreement; high contribution earlier than planned.
• Dow collaboration: exclusive, multi-year silicone research; Surat pilot plant; potential manufacturing framework.

Capex and Capacity Expansion

• Magnum Phase 1 capex INR2,200-2,300 crores; Phase 2 FY2030.
• Total Magnum blocks: 16; asset turn 1.5-1.75 when Phase 1 online.
• R&D expansion: 400 megahertz NMR; 15 labs; 160 fume hoods; commissioning FY2028.

Dow Collaboration and Semiconductors

• Dow exclusive silicones research program; platform technology; India market opportunities.
• Pilot plant in Surat; framework for long-term partnership; first stage research and pilot work.

Q&A Highlights

• Order book not broken out; pursuing few high-value molecules; updates as contracts finalize.
• Magnum LSM products started commercial sales; expected Q2 FY27 contribution; price $30-40/kg.
• LSM volume down 22% YoY due to shift to CEM; LSM demand remains.
• Oil & Gas revenue ~INR1,000 million; Baker Hughes main driver; Site4 ~INR70 crores.
• Consolidated EBITDA margins guidance for CEM 28-30%.

Risks and Outlook

• Execution risk in rapid expansions; safety remains top priority.