Aarti Industries Share Price Surges on New Supply Contract

Aarti Industries (AIL) share price rallied by up to 6% to ₹455.60 apiece in Thursday's trading session, following the company's announcement of a new supply contract worth $150 million.

Market Performance

Despite the market indices, Sensex and Nifty 50, being on a negative note, with the Sensex dropping by 992.53 points (1.3%) to 75,871.18 and the Nifty 50 declining by 298.15 points (1.25%) to 23,556.30, AIL's share price surged.

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New Contract Details

In a filing dated March 12, AIL announced that it has entered into a multi-year supply agreement with a global agrochemical innovator for the supply of a critical agrochemical intermediate used in crop protection formulations, worth approximately $150 million. The agreement will remain in effect until March 31, 2030, transforming an existing annual arrangement into a structured medium-term supply contract with increased volumes.

Impact on AIL's Financial Performance

The contract is expected to generate around $150 million in revenue over the duration of the agreement. AIL has sufficient capacity to meet this requirement, enabling the company to achieve higher capacity utilisation and volumes without incurring additional capital expenditure.

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Financial Highlights

For the December quarter, AIL posted a near three-fold increase in its net profit at ₹133 crore compared with ₹46 crore in Q3FY25. Revenue rose 26% year-on-year to ₹2,319 crore from ₹1,843 crore in the year-ago period. The company's EBITDA grew 38.8% YoY to ₹322 crore from ₹232 crore last year, and the margin expanded to 13.9% from 12.6% in the same quarter last year.

Share Price Trend

Aarti Industries share price has largely remained positive in the near term despite weak market sentiments. The chemical stock has delivered 7.59% returns in a week and 21% in terms of year-to-date (YTD). Zooming out further, the stock has ascended 16% in the last one year, however, has fallen 15% in three years and 29% in five years.