Aarti Industries (ARTO IN) – Q3FY26 Result Update – Multiple projects to be commissioned in CY26 – Accumulate
Published on 03 Feb 2026
ARTO reported a topline of Rs23.1bn, up 26% YoY and 10% QoQ, driven by higher volumes across key products such as MMA, NT and DCB. Volumes in the energy business, which largely consists of MMA, increased 78% YoY and 13% QoQ, while overall company margins expanded by 100bps YoY, supported by a favorable gasoline–naphtha crack during the quarter. Non-energy business volumes grew 11% YoY, but declined 5% QoQ, with margins remaining under pressure in the agrochemicals and dyes segments. With US tariffs now reduced, volumes across the MMA and PDA value chain are expected to gain momentum in the near term. The company is pursuing multiple growth initiatives, including MMA debottlenecking, calcium chloride, PEDA, and other projects in Zone IV, which are expected to support growth going forward; however, margin pressure across a few products remains a key concern. Given the upcoming commissioning of multiple new projects over CY26 and the expected debottlenecking of MMA and DCB, which should drive near-term growth, we maintain ‘Accumulate’ rating with TP of Rs466, valuing the stock at 26x Dec’27 EPS. The stock is currently trading at 23× FY28 P/E.
