Aether Industries (AETHER) Q4 25/26 earnings summary

Executive summary

• FY26 consolidated revenue grew 38% year-over-year to ₹11,601 million, with EBITDA up 53% to ₹3,547 million and PAT up 39% to ₹2,195 million, driven by strong CEM, CRAMS, and LSM segments.

• Commercial production at Site 3 began in late February, with Site 5 phase one solvent trials started and targeted for commercial production in Q1 FY27.

• 19 new customers onboarded and 50 customer/certification audits completed in FY26, reflecting operational excellence.

• Significant R&D expansion underway, including new labs, fume hoods, and a major new R&D site expected by FY28.

• Appointment of a new business development leader for Europe to drive international growth.

Financial highlights

• FY26 consolidated revenue: ₹11,601 million (up 38% YoY); EBITDA: ₹3,547 million (up 53% YoY); PAT: ₹2,195 million (up 39% YoY); EBITDA margin: 31%.

• Q4 FY26 revenue: ₹3,051 million (up 27% YoY); EBITDA: ₹814 million (up 6% YoY); PAT: ₹540 million (up 7% YoY), impacted by a ₹70 million inventory loss due to a fire.

• FY26 EPS (consolidated, basic) was ₹16.55, up from ₹11.95 in FY25.

• Cash flow from operations increased to ₹1,424 million in FY26 (from ₹1,000 million in FY25).

• Total assets increased to ₹32,014 million at FY26 end from ₹26,442 million in FY25.

Outlook and guidance

• Management expects strong pricing to sustain for the next two to three quarters, especially in LSM.

• Major growth drivers for FY27: ramp-up of Site 3+, Site 4, and commercialization of Site 5 (phase I), plus new R&D capacity.

• EBITDA margin expected to remain stable at 29%-30%, PAT margin at 19%-20%.

• Working capital days targeted to reduce from 179 to 160 by FY27.

• CapEx for FY27 projected at ₹3,000-3,500 million, mainly for Site 5 and new R&D site.