Synopsis: Aarti Surfactants Ltd shares surged 20% after Q3 results, with revenue up 28% YoY to ₹208 Cr and net profit rising 358% YoY to ₹3.66 Cr.

The shares of a Micro-cap company specialising in manufacturing specialty chemicals, primarily surfactants, essential for Home & Personal Care, Oral Care, Baby Care, Hair Care, and various Industrial Applications, have hit a 20 percent upper circuit following their Q3 Results with 358 percent profit growth.

With a market capitalization of Rs. 385.28 Crores on Tuesday, the shares of Aarti Surfactants Ltd hit a 20 percent upper circuit, reaching a high of Rs. 455.15 compared to its previous close of Rs. 379.30.

What Happened

Aarti Surfactants Ltd, engaged in manufacturing specialty chemicals, primarily surfactants, essential for Home & Personal Care, Oral Care, Baby Care, Hair Care, and various Industrial Applications, is in the spotlight today as they have announced their Q3 results as follows:

Its Revenue from operations rose by 28 percent YoY from Rs. 163 Crores in Q3FY25 to Rs. 208 Crores in Q3FY26, and it rose by 16 percent QoQ from Rs. 179 Crores in Q2FY26 to Rs. 208 Crores in Q3FY26.

Its Net Profit YoY rose by 358 percent from Rs. 0.80 Crores in Q3FY25 to Rs. 3.66 Crores in Q3FY26, and on a QoQ basis, it rose by 135 percent from Rs. 1.56 Crores in Q2FY26 to Rs. 3.66 Crores in Q3FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 4.32, compared to Rs. 0.95  in the previous year’s quarter.

The company demonstrates solid financial performance, with a decent Return on Capital Employed (ROCE) of 8.5% and a Return on Equity (ROE) of 5.14%. Its debt-to-equity ratio is low at 0.76, indicating a manageable debt level and a stable financial structure.

Over the past five years, the company has achieved impressive profit growth, delivering a 40.9% CAGR. This consistent growth reflects strong operational performance and effective management, making it a company with promising long-term potential.

Aarti Surfactants Ltd. is a leading Indian chemical manufacturer, demerged from Aarti Industries in 2019, specializing in ionic, non-ionic surfactants, and specialty chemicals for home/personal care, agro, and industrial sectors, serving major global brands with sustainable, innovative solutions from its plants in Pithampur and Silvassa.

Aarti Surfactants Ltd serves multiple market segments, including Baby Care, Oral Care, Hair Care, Home Care, Industrial Applications, and Skin & Personal Care. Each segment focuses on providing specialized surfactant solutions tailored to its specific consumer or industrial needs.

The company’s product portfolio includes Surfactants, Pearlizing Agents, Blends, Preservatives, Mild Surfactants, and Sun Care products, offering a range of specialized solutions for personal care, home care, and industrial applications.

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