Aarti Industries Shares Jump 5.5% After Securing $150 Million Agrochemical Supply Contract

Aarti Industries Shares Jump 5.5% After Securing $150 Million Agrochemical Supply Contract​

Multi Year Agreement Strengthens Long Term Revenue Visibility​

Shares of Aarti Industries Ltd surged by as much as 5.5% on Thursday, March 12, after the specialty chemicals manufacturer announced a multi year supply contract valued at approximately $150 million with a global agrochemical company.

In a regulatory filing, the company said the agreement will remain in effect until March 31, 2030. The contract converts an existing annual engagement into a structured medium term supply arrangement with increased volumes.

Under the agreement, Aarti Industries will manufacture and supply a key agrochemical intermediate used in crop protection formulations for global agricultural markets.

Management Says Partnership Strengthens Global Position​

Commenting on the development, Chief Executive Officer Suyog Kotecha said the agreement highlights the company's position as a trusted partner for global agrochemical innovators.

The company expects the contract to generate around $150 million in revenue during the contract period.

Kotecha said the agreement improves long term earnings visibility and reflects continued progress in expanding the company's specialty chemicals portfolio through high value partnerships.

Capacity Utilisation to Improve Without Additional Capital Expenditure​

Aarti Industries said the supply agreement is expected to support higher production volumes and improve capacity utilisation without the need for additional capital expenditure.

The company also noted that demand for agrochemical intermediates remains strong globally, driven by the increasing need for crop protection solutions and the growing preference for reliable and integrated supply partners.

Strong December Quarter Performance​

The announcement comes after a strong financial performance in the December quarter.

Aarti Industries reported a near three fold rise in net profit to ₹133 crore in Q3FY26, compared with ₹46 crore in the corresponding quarter of the previous financial year.

Revenue increased 26% year on year to ₹2,319 crore from ₹1,843 crore in the year ago period.

EBITDA rose 38.8% year on year to ₹322 crore from ₹232 crore, while the EBITDA margin improved to 13.9% from 12.6% in the same quarter last year.

Stock Performance​

Following the announcement, the company's shares jumped more than 5.5% during the session. As of 11.18 am, the stock was trading 4.43% higher at ₹449.20.

The stock has delivered returns of more than 15% over the past six months.