Pricing Offsets Soft Volumes

Research evidence excerpt

Pricing Offsets Soft Volumes

Update

August 3, 2026 02:21 AM GMT

Morgan Stanley Asia (Singapore) Pte.+MAarti Industries Limited | Asia Pacific Vivek Rajamani

Equity Analyst

Pricing Offsets Soft Volumes Vivek.Rajamani@morganstanley.comMayank Maheshwari +65 6834-6740

Mayank.Maheshwari@morganstanley.com +65 6834-6719

AlphaSignals Earnings Reaction Morgan Stanley India Company Private Limited+

Unchanged Modest upside Modest revision higher Pranitha Shetty

Impact to our thesis Financial results versus consensus Direction of next 12-month Research Associate

consensus EPS Pranitha.Shetty@morganstanley.com +91 22 6118-3022

Source: Company data, Morgan Stanley Research

Aarti reported EBITDA of Rs3.4bn (+49% YoY, +0.3% QoQ) and PAT of Rs1.6bn (3x

YoY, 13% QoQ), a beat to MS and Street estimates led by better pricing as well as

inventory/FX gains (Rs50-60cr as per management) Consol. volumes fell 12% QoQ.

Key highlights: Aarti Industries Limited (ARTI.NS, ARTO IS)

India Oil & Gas | India

1. Volume trends to improve: F1Q volume weakness led by lower energy exports to

Stock Rating Underweight

the Middle East, soft polymer segment demand, particularly in US/China, weakness Industry View In-Line

in dyes and pigments and subdued agchem sentiment. Energy demand (ex-Middle Price target Rs366.00

Up/downside to price target (%) (25)

East) remains upbeat (gasoline naphtha spreads remain robust, but below F1Q Shr price, close (Jul 31, 2026) Rs489.10

peaks), while polymers is seeing pick up. 52-Week Range Rs523.10-338.05

Sh out, dil, curr (mn) 363

Mkt cap, curr (mn) Rs177,551

2. Project updates - some more delays: Five blocks in Zone IV delayed by two EV, curr (mn) Rs214,414

quarters (vs three to four months in 4Q26), while calcium chloride and MPP will Avg daily trading value (mn) Rs473