ALFA Finder
| P/E Ratio | 24.39xSector: 35.14x |
|---|---|
| Market Cap | ₹448.79 CrSpecialty Chemicals |
| RSI | 66.05Neutral Zone |
| 1-Year Return | 13.07%Price Performance |
| Metric | Q2-27 | Q1-27 | Q2-26 |
|---|---|---|---|
| Revenue from Operations | 291 | 273 | 179 |
| Other Income | 0.1 | 0.2 | 0.1 |
| Total Income | 291 | 273 | 179 |
| Profit Before Tax | 17.2 | 12.2 | 2.2 |
| Exceptional Items | -4.3 | 0.0 | 0.0 |
| Net Profit | 12.5 | 9.0 | 1.6 |
| Operating Margin | 5.9% | 4.5% | 1.2% |
| Net Profit QoQ | +38.9% | ||
| Net Profit YoY | +681.2% | ||
| Adj. Profit QoQ | +78.3% | ||
| Adj. Profit YoY | +919.0% | ||
Key highlights
- Net profit surged 681.2% YoY to ₹12.5 crore, up from ₹1.6 crore in the same quarter last year
- Revenue from operations grew to ₹291 crore, marking a 62.6% increase over Q2-26 figures
- Operating margins expanded to 5.9% in Q2-27, compared to 1.2% in the year-ago period
- Company recognized an exceptional item of ₹4.3 crore related to stamp duty and customs provisions
- Redeemed 10.82 lakh 4% non-convertible redeemable preference shares on August 5, 2026
- Credit rating upgraded to CRISIL A-/Stable from CARE BBB+/Stable during the quarter
- Incorporated a new wholly-owned subsidiary, Precision Ingredients USA Inc., in August 2026
Sharp Expansion in Revenue and Profitability
Aarti Surfactants demonstrated strong growth in its core operations during the quarter ended September 30, 2026. Revenue from operations climbed to ₹291 crore, a substantial increase from ₹179 crore in the corresponding quarter of the previous year. This volume-led growth trickled down to the bottom line, with net profit reaching ₹12.5 crore, a 681.2% jump year-on-year.
On a sequential basis, the profit grew 38.9% from ₹9.0 crore in the June 2026 quarter. The company’s operating margin also saw a healthy expansion to 5.9%, up from 4.5% in the preceding quarter and 1.2% in the year-ago period, reflecting improved operational efficiencies in the home and personal care ingredients segment.
Exceptional Items and Legal Provisions
- The company recognized a total exceptional provision of ₹4.3 crore during the September 2026 quarter
- A charge of ₹1.47 crore was recorded for stamp duty related to the company's scheme of demerger
- Provision of ₹2.83 crore was made for customs duty, interest, and penalties following an order dated September 24, 2026
- The customs matter originated from a show cause notice issued by the Directorate of Revenue Intelligence in October 2016
- Despite these provisions, Profit Before Tax stood at ₹17.2 crore, up from ₹12.2 crore in the prior quarter
Strategic Financial Moves and International Expansion
In August 2026, Aarti Surfactants successfully redeemed 10,82,387 non-convertible redeemable preference shares. The total payout, including face value and premium, amounted to ₹23.23 crore and was funded entirely through profits. Simultaneously, the company strengthened its international footprint by incorporating Precision Ingredients USA Inc.
on August 27, 2026. While the US subsidiary has not yet commenced operations or recorded transactions as of the September period, it forms a central part of the company's long-term expansion strategy. The company also benefited from a credit rating upgrade by CRISIL to 'A-/Stable', citing its improved financial profile.
Core Business and Segment Performance
The Company deals in only one operating segment which is based on the nature of the product and thus the reporting segment is only one segment i.e. Home and personal care ingredients.
| Date | Announcement | Amount |
|---|---|---|
| 01 Aug 2026 | Q1 FY27 consolidated revenue from operations (net profit Rs 9.00 crore)Source: BSE filing | ₹272.87 Cr |
| 09 May 2026 | Q4 FY26 consolidated total income (net profit Rs 4.19 crore)Source: BSE filing | ₹256.47 Cr |
| 19 Jan 2026 | Q3 FY26 consolidated revenue from operations (net profit Rs 3.66 crore)Source: in.investing.com | ₹207.76 Cr |
| 10 Nov 2025 | Q2 FY26 consolidated revenue from operations (net profit Rs 1.56 crore)Source: aarti-surfactants.com | ₹179.17 Cr |
| 05 Aug 2025 | Q1 FY26 consolidated revenue from operations (net profit Rs 2.94 crore)Source: BSE filing | ₹215.90 Cr |
| 12 May 2025 | Q4 FY25 consolidated revenue from operations (net profit Rs 9.84 crore)Source: aarti-surfactants.com | ₹202.05 Cr |
What to watch next
- Execution of operations at the newly formed Precision Ingredients USA Inc. in H2 FY27
- Final adjudication and outcome of the DRI show cause notice involving a contingent liability of ₹6.71 crore
- Formal re-appointment of Nikhil Desai as CEO & MD for a five-year term starting August 20, 2027
- Next quarterly results announcement expected by mid-February 2027
“The above results for the quarter and six month ended 30th September, 2026 have been reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on 14th November, 2026.”
| Share price | ₹529.8 |
|---|---|
| Market capitalisation | ₹448.79 Cr |
| Revenue (annual) | ₹859.13 Cr |
| Net profit (annual) | ₹12.34 Cr |
| Revenue (latest quarter) | ₹272.87 Cr+6.47% vs previous quarter |
| Net profit (latest quarter) | ₹9.00 Cr+115.05% vs previous quarter |
| P/E (TTM) | 24.39×Sector 35.14× |
| Promoter holding | 49.84%0.00% QoQ |
| FII holding | 0.26%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by Aarti Surfactants Limited announcing the unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026. Market figures from a third-party data provider.
