Aether Industries’ Revenue Rises 24%, Operating Profit Jumps 29% in Q2
Key Facts
Aether Industries reported growth in consolidated operating revenue and profit in the second quarter of fiscal 2027, with revenue rising 24% year over year to 3,472 million rupees, compared with 2,801 million in the corresponding period of fiscal 2026. Investor presentation data showed EBITDA increased 29% to 1,104 million rupees. Net profit after tax rose 26% to 680 million rupees. Operating profit growth outpaced revenue growth as the company’s margins widened. The figures reflect Q2 FY27 performance as presented by the company to investors.
The EBITDA margin was about 31.8% in the second quarter, compared with 30.5% in the corresponding quarter a year earlier, while the net profit margin rose to 19.3% from 18.7%. The improvement therefore reflected not only higher sales but also a higher ratio of operating profit to revenue. EBITDA in the year-earlier period was 853 million rupees, while net profit was 540 million. The comparison shows EBITDA growth of 29% outpaced revenue growth of 24%. Net profit grew 26% year over year.
The company attributed growth in operating income and improved margins to the expansion of contract manufacturing, or CEM, contracts and a shift in its business model toward CEM contracts and CRAMS services. The two activities together accounted for 66% of revenue in Q2 FY27. The company aims to raise their contribution to 70% over the next two years, according to the investor presentation. The target places continued expansion in these activities within the path the company has set for its business mix. The company also added 6 new customers across its different business models during the quarter, pointing to a broader customer base within this mix.
On production capacity, the company said commercial production had begun at Site 3++. The first phase of Site 5, which includes two production blocks, also began commercial operations in the first quarter of fiscal 2027, with production continuing to ramp up. This comes as the company seeks to increase CEM and CRAMS’ contribution, making the ramp-up of new sites part of the operating picture presented to investors. The company did not specify the expected increase in production or when the ramp-up would be complete. It said production expansion work at Site 5 was ongoing.
The company said oil and gas and materials science were the main drivers of performance, despite the launch of new products in the pharmaceuticals and agrochemicals sectors. The presentation thus points to differing contributions from the company’s activities in driving growth during the period, with oil and gas and materials science assigned the leading role. Meanwhile, research and development spending was 406.01 million rupees in the first half of fiscal 2027. That spending represented 6.03% of operating revenue for the same period, according to the company’s presentation. It was an expense in the context of new product launches, and the presentation did not specify a separate financial return from them in the first half.
The company had included its second-quarter and first-half fiscal 2027 results in the financial performance and presentations section of its investor relations website. It scheduled a call to discuss the results for 30 October 2026 at 14:00 India time. The call covered second-quarter and first-half results, according to a company notice. The presentation’s year-over-year comparison of revenue and profit is for Q2 FY27 against the corresponding period of FY26. In trading, the stock closed at 1,612.10 rupees on 30 October, up 1.97% in the session, according to historical price data.