Aarti Industries: Prabhudas Lilladher keeps Accumulate rating with Rs 476 target

what happened

Analysts at Prabhudas Lilladher, as reported by TradingView, kept their Accumulate rating on Indian chemicals maker Aarti Industries with a target price of Rs 476. Q2FY27 revenue reached Rs 36.7bn, up 75% year on year. The gain came from stronger volumes and the pass-through of higher raw material costs to customers.

EBITDA rose 41% year on year to Rs 4.1bn. The Energy segment performed strongly, helped by elevated crude prices and wide gasoline-naphtha cracks. Non-Energy volumes stayed healthy on demand across the NCB, DCB and pharma chains, while PDA faces pressure from cheap Chinese imports.

Management expects the current momentum to continue, supported by improving demand and the ramp-up of newly commissioned Zone IV facilities. The analysts flag costly raw materials, higher working capital needs and possible inventory losses as key risks to watch.

why it matters

For markets, the profit jump rests on high petrochemical prices and volume growth, while medium-term earnings depend on capacity utilisation and new projects. The Rs 476 target is based on 21x Sep'28 EPS, and the shares currently trade at about 17x FY29 EPS.

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