Aarti Industries shares see 20% surge amid strategic expansion and cost optimization
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ET Intelligence Group: Shares of Aarti Industries (AIL), a maker of specialty chemicals and pharmaceuticals, have gained nearly 20% in the past three months and 7% since its quarterly result announcement on May 8. This has reduced its one-year fall to 32%. A steady ramp-up in underutilised capacities, additional capex of ₹1,000 crore in the current fiscal year on top of ₹1,372 crore in FY25 and improving Ebitda from cost-optimisation efforts are expected to drive future growth. Of the planned capex, around ₹800 crore will be directed towards new product development, with the balance allocated for maintenance. "Our large project initiatives at Zone IV (in Jhagadia, Gujarat) are being executed in a phased manner, with commissioning scheduled to progress through FY26," said Suyog Kotecha, CEO of Aarti Industries, during the company's earnings call. The Zone IV facility is expected to support production of niche, high-value prod...