Aarti Surfactants Limited (NSE: AARTISURF | BSE: 543210)
Source: Aarti Surfactants Limited Annual Report FY 2025-26 (Fiscal Year Ended March 31, 2026)
📋 Quick Facts: Company Snapshot
| Attribute | Disclosed Detail |
|---|---|
| Official Company Name | Aarti Surfactants Limited |
| Corporate Identity Number (CIN) | L24100MP2018PLC067037 |
| ISIN | INE09EO01013 |
| NSE Symbol & BSE Scrip Code | NSE: AARTISURF | BSE: 543210 |
| Date of Incorporation / Founding Year | June 18, 2018 |
| Registered Office & Corporate Headquarters | Plot no 57, 58, 60 to 64, 62A, S-3/1, Sector-3, Sagore Village, Pithampur Industrial Area, District Dhar, Madhya Pradesh – 454775 |
| Telephone & Investor Relations Contact | +91 22 6781 6435 | investors@aarti-surfactants.com |
| Chairman | Mr. Mulesh M. Savla |
| Managing Director & CEO | Mr. Nikhil P. Desai |
| Chief Financial Officer (CFO) | Mr. Nitesh H. Medh |
| Company Secretary (CS) & Compliance Officer | Mrs. Priyanka A. Chaurasia |
| Promoter & Holding Group | Nikhil Holdings Private Limited, Jaya Chandrakant Gogri, and Associated Promoter Group |
| Industry / Sector Classification | Specialty Chemicals / Surfactants / Home and Personal Care Ingredients |
| Total Employees / Permanent Workforce | 393 permanent employees (with total workforce exceeding 350+ personnel) |
| Manufacturing Plants / Branches / Offices Count | 2 Manufacturing Units and 1 R&D Centre |
| Countries / States Served | Domestic (India) and International exports across Asia, Europe, Africa, and the Americas |
| Statutory Auditors | Gokhale & Sathe, Chartered Accountants |
| Registrar and Share Transfer Agent (RTA) | MUFG Intime India Private Limited (Formerly Known as Link Intime India Private Limited) |
🏢 The Corporate Identity: Who They Are & Where They Came From
The Big Picture
Aarti Surfactants Limited is a specialised chemical manufacturing enterprise anchored at the intersection of home care, personal care, and high-performance specialty formulations. The company occupies a critical niche within the chemical value chain, engineering ionic, non-ionic, and specialty surfactants that serve as essential foundational compounds for household cleaning, personal hygiene, and industrial applications. Operating through a sophisticated manufacturing infrastructure backed by dedicated research facilities, the enterprise balances industrial scaling with strict environmental stewardship and long-term stakeholder value creation.
The Founders, Promoters & Their Legacy
The promoter and promoter group entities, led by key industrial stakeholders including Nikhil Holdings Private Limited and members of the Gogri family, provide strategic guidance and governance stability. The executive leadership operates under a skilled management team possessing deep technical, regulatory, and commercial expertise across chemical engineering, supply chain optimization, and global market expansion.
The Journey: History & Evolution
Aarti Surfactants Limited was established through the strategic demerger of the home and personal care division of Aarti Industries Limited. Since its incorporation in June 2018 and the subsequent commencement of commercial operations in 2019, the company has systematically expanded its operational footprint. It has evolved from a localized manufacturer into a globally competitive player, progressively deepening its technical competencies, optimizing asset utilization, and directing strategic focus into high-margin skin care and advanced personal care segments.
The Corporate Umbrella
The corporate structure of the enterprise is anchored by its primary operating entity alongside a wholly owned subsidiary, Aarti HPC Limited, which was incorporated on December 26, 2019. Together, the group coordinates manufacturing, process innovation, and market distribution across domestic and international jurisdictions while maintaining centralized governance and rigorous internal controls.
⚙️ The Business Engine: What They Do & Where They Operate
The Core Divisions
The company operates within a single primary operating segment focused on home and personal care ingredients, as evaluated by the Chief Operating Decision Maker (CODM). Its operational framework integrates multi-location manufacturing units with an advanced Research and Development (R&D) centre dedicated to process optimization, green chemistry, and sustainable product innovation.
The Product & Service Catalog
Aarti Surfactants maintains a diversified portfolio of chemical formulations tailored to meet evolving consumer preferences and strict regulatory standards. Its product groups address diverse functional requirements across multiple end-use industries.
- Surfactants and high-performance ionic and non-ionic compounds
- Mild surfactants designed for gentle personal care applications
- Pearlizing agents, rheology modifiers, and functional blends
- Preservatives, active ingredients, and sun-care formulations
- Industrial surfactants utilized in textile processing, wetting agents, and agricultural crop-protection deliveries
The Names You Know
The company supplies critical functional intermediates to major brand owners and formulators operating in the consumer goods, personal care, and home cleaning sectors. Its formulations act as essential active components in everyday household detergents, soaps, hair care, cosmetics, bath and shower preparations, and surface care products.
Mapping the Domestic & Global Reach
Aarti Surfactants maintains a robust commercial presence spanning both domestic markets across India and international export destinations across Asia, Europe, Africa, and the Americas.
| Geography / Market Segment | Percentage of Sales (%) |
|---|---|
| Domestic Sales | 82% |
| International Export Sales | 18% |
| Total Sales Revenue | 100% |
The Brick & Mortar Footprint
The physical infrastructure supporting the company’s manufacturing and technical operations comprises:
- Manufacturing Unit I: Plot nos. 57, 58, 60 to 64, 62A, S-3-1, Sector-3, Sagore Village, Pithampur Industrial Area, District Dhar, Madhya Pradesh – 454775.
- Manufacturing Unit II: Survey No. 500, Village: Kherdi, Khanvel Udhwa Road, U.T of Dadra & Nagar Haveli & Daman & Diu – 396230.
- Research & Development Centre: Esjay House, A-74/2, Kopar Khairane, MIDC, TTC, Navi Mumbai – 400703, Maharashtra.
- Corporate & Head Office: Unit 202, Udyog Kshetra, 2nd Floor, Mulund Goregaon Link Road, Mulund (West), Mumbai – 400080, Maharashtra.
📊 The Financial Health: The Numbers Simplified
Multi-Year Financial Highlights (₹ in Crores)
| Financial Parameter (₹ in Crores) | FY 2025-26 | FY 2024-25 | FY 2023-24 | Latest YoY (%) |
|---|---|---|---|---|
| Revenue from Operations | 859.13 | 659.09 | 589.86 | +30.35% |
| Total Income | 859.46 | 662.56 | 590.28 | +29.72% |
| EBITDA (Profit before Interest, Tax, Depreciation & Amortisation) | 47.32 | 45.61 | 42.10 | +3.75% |
| Profit Before Tax (PBT) | 17.22 | 20.70 | 33.13 | -16.81% |
| Profit After Tax (PAT) | 12.34 | 14.54 | 22.27 | -15.13% |
| Total Equity (Net Worth) | 244.93 | 232.62 | 218.11 | +5.29% |
Earnings, Expenses, & Take-Home Profits
Consolidated Statement of Profit and Loss for the year ended March 31, 2026 (All figures in ₹ in Crores unless specified otherwise):
| Particulars | For the Year Ended 31st March, 2026 | For the Year Ended 31st March, 2025 | Latest YoY (%) |
|---|---|---|---|
| Revenue from Operations | 859.13 | 659.09 | +30.35% |
| Other Income | 0.33 | 3.48 | -90.52% |
| Total Income | 859.46 | 662.56 | +29.72% |
| EXPENSES | |||
| Cost of Materials Consumed | 720.94 | 541.84 | +33.05% |
| Purchases of Trading Goods | – | 0.76 | – |
| Changes in inventories of finished goods, Stock-in-Trade and work-in-progress | 2.16 | -8.30 | N/M |
| Employee Benefits Expense | 23.57 | 20.13 | +17.09% |
| Finance Costs | 12.31 | 11.55 | +6.58% |
| Depreciation / Amortisation Expenses | 17.69 | 17.35 | +1.96% |
| Other Expenses | 65.58 | 62.72 | +4.56% |
| Total Expenses | 842.24 | 646.06 | +30.37% |
| Profit before Exceptional Items and Tax | 17.22 | 16.50 | +4.36% |
| Exceptional Items | – | 4.20 | – |
| Profit before Tax | 17.22 | 20.70 | -16.81% |
| TAX EXPENSE | |||
| Current Tax | 4.83 | 4.08 | +18.38% |
| Deferred Tax | 0.05 | 2.08 | -97.60% |
| Total Tax Expenses | 4.88 | 6.16 | -20.78% |
| Profit for the year | 12.34 | 14.54 | -15.13% |
| OTHER COMPREHENSIVE INCOME | |||
| Items that will not be reclassified to Statement of Profit and Loss (Remeasurement of defined employee benefit plans) | 0.05 | -0.17 | N/M |
| Items that will be reclassified to Statement of Profit and Loss (MTM Loss on Forward Contract) | – | -0.04 | – |
| Other Comprehensive Income | 0.05 | -0.21 | N/M |
| Total Comprehensive Income for the year net of tax | 12.39 | 14.33 | -13.54% |
| Earnings Per Equity Share of Face Value of Rs 10 Each (EPS) (in ₹) | |||
| Basic | 0.15 | 0.17 | -11.76% |
| Diluted | 0.15 | 0.17 | -11.76% |
Assets, Borrowings, & Net Worth
Consolidated Balance Sheet as at March 31, 2026 (All figures in ₹ in Crores):
| Particulars | As at 31st March, 2026 | As at 31st March, 2025 | Latest YoY (%) |
|---|---|---|---|
| A. ASSETS | |||
| 1. Non-Current Assets | |||
| (a) Property, Plant and Equipment | 197.94 | 201.51 | -1.77% |
| (b) Right of Use Assets | 1.14 | 1.59 | -28.30% |
| (c) Capital Work-in-Progress | 41.03 | 12.70 | +223.07% |
| (d) Intangible Assets | 0.87 | 0.86 | +1.16% |
| (e) Intangible Assets under development | 4.18 | 1.95 | +114.36% |
| (f) Financial Assets – Other Investments | 0.00 | 0.00 | N/M |
| (g) Financial Assets – Other Financial Assets | 3.00 | 3.03 | -0.99% |
| (h) Other Non-Current Assets | 6.85 | 3.73 | +83.65% |
| Total Non-Current Assets | 255.00 | 225.36 | +13.15% |
| 2. Current Assets | |||
| (a) Inventories | 118.64 | 134.33 | -11.68% |
| (b) Financial Assets – Trade Receivables | 104.65 | 76.26 | +37.23% |
| (c) Financial Assets – Cash and Cash Equivalents | 12.36 | 0.86 | +1337.21% |
| (d) Financial Assets – Bank balances other than cash & cash equivalents | 1.07 | 0.35 | +205.71% |
| (e) Financial Assets – Loans | 0.27 | 0.14 | +92.86% |
| (f) Financial Assets – Other Financial Assets | 0.00 | 0.00 | N/M |
| (g) Other Current Assets | 23.83 | 38.98 | -38.87% |
| (h) Current Tax Assets (Net) | 0.83 | 0.92 | -9.78% |
| Total Current Assets | 261.66 | 251.82 | +3.91% |
| TOTAL ASSETS | 516.66 | 477.19 | +8.27% |
| B. EQUITY AND LIABILITIES | |||
| 1. Equity | |||
| (a) Equity Share Capital | 8.47 | 8.47 | 0.00% |
| (b) Other Equity | 236.45 | 224.16 | +5.48% |
| Total Equity | 244.93 | 232.62 | +5.29% |
| 2. Non-Current Liabilities | |||
| (a) Financial Liabilities – Non-Current Borrowings | 41.93 | 27.60 | +51.92% |
| (b) Financial Liabilities – Lease Liabilities (Non-Current) | 0.84 | 1.28 | -34.38% |
| (c) Deferred Tax Liabilities (Net) | 19.97 | 19.92 | +0.25% |
| (d) Other Non-Current Liabilities | 10.46 | 9.46 | +10.57% |
| (e) Non-Current Provisions | 0.98 | 0.98 | 0.00% |
| Total Non-Current Liabilities | 74.19 | 59.23 | +25.26% |
| 3. Current Liabilities | |||
| (a) Financial Liabilities – Current Borrowings | 60.97 | 81.13 | -24.85% |
| (b) Financial Liabilities – Trade Payables (Micro and Small Enterprises) | 10.35 | 3.65 | +183.56% |
| (c) Financial Liabilities – Trade Payables (Other Than Micro and Small Enterprises) | 112.04 | 88.57 | +26.50% |
| (d) Financial Liabilities – Other Current Financial Liabilities | 3.00 | 3.49 | -14.04% |
| (e) Financial Liabilities – Lease Liabilities (Current) | 0.44 | 0.38 | +15.79% |
| (f) Other Current Liabilities | 8.21 | 4.79 | +71.40% |
| (g) Current Provisions | 2.53 | 3.31 | -23.56% |
| Total Current Liabilities | 197.55 | 185.33 | +6.59% |
| TOTAL EQUITY AND LIABILITIES | 516.66 | 477.19 | +8.27% |
Cash Flow: Tracking the Money Movement
Consolidated Statement of Cash Flows for the period ended March 31, 2026 (All figures in ₹ in Crores):
| Particulars | For the Year Ended 31st March, 2026 | For the Year Ended 31st March, 2025 | Latest YoY (%) |
|---|---|---|---|
| A. CASH FLOW FROM OPERATING ACTIVITIES | |||
| Profit before Exceptional Item | 17.22 | 16.50 | +4.36% |
| Adjustments for Non-Cash / Non-Operating Items | 28.29 | 23.15 | +22.20% |
| Operating Profit before Working Capital Changes | 45.51 | 39.65 | +14.78% |
| Working Capital Adjustments | 35.17 | -23.26 | N/M |
| Cash Generated from Operations | 8,067.95 | 1,639.07 | +392.23% |
| Direct Taxes Paid | -4.04 | -5.21 | -22.46% |
| Net Cash Flow from Operating Activities | 76.64 | 11.18 | +585.51% |
| B. CASH FLOW FROM INVESTING ACTIVITIES | |||
| Purchase of Property, Plant and Equipment and Capital Work In Progress (CapEx) | -45.11 | -20.28 | +122.44% |
| Other Investing Cash Flows (Insurance, Investments, Interest Received, Net) | -0.54 | 4.07 | N/M |
| Net Cash Flow used in Investing Activities | -45.65 | -16.21 | +181.62% |
| C. CASH FLOW FROM FINANCING ACTIVITIES | |||
| Repayment of Non-Current Borrowings | -21.04 | -25.96 | -18.95% |
| Proceeds from Non-Current Borrowings | 1,804.39 | – | – |
| Proceeds/(Repayment) from Current Borrowing (Net) | -356.04 | 3,674.35 | N/M |
| Other Financing Activities (Interest Paid, Lease Payments, Dividends, ESOP) | -12.93 | -11.15 | +15.96% |
| Net Cash Flow from / (used in) Financing Activities | -19.49 | -0.37 | +5167.57% |
| Net Increase/(Decrease) in Cash and Cash Equivalents | 11.50 | -5.39 | N/M |
| Opening Balance of Cash and Cash Equivalents | 0.86 | 6.25 | -86.24% |
| Closing Balance of Cash and Cash Equivalents | 12.36 | 0.86 | +1337.21% |
Funding the Future: CapEx, CWIP & R&D Spending
The company continues to direct capital expenditure toward enhancing operational capacity, process automation, and technological upgrades. Capital work-in-progress (CWIP) stood at ₹41.03 Crores as of March 31, 2026, up from ₹12.70 Crores in the previous fiscal year, reflecting ongoing plant infrastructure expansion. Simultaneously, research and development (R&D) expenditure charged during the financial year 2025–26 was ₹2.23 Crores (compared to ₹7.21 Crores in FY 2024–25), supporting green chemistry initiatives, formulation optimization, and the successful operationalization of the dedicated R&D facility at Navi Mumbai.
🗺️ The Corporate Family Tree: Structure & Investments
Subsidiaries, Associates, & Joint Ventures (Form AOC-1)
| Name of Subsidiary | Relationship | Country | % Shareholding | Turnover (₹ in Crores) | Profit / (Loss) After Tax (₹ in Crores) |
|---|---|---|---|---|---|
| Aarti HPC Limited | Wholly Owned Subsidiary | India | 100% | 0.00 | -0.34 |
Strategic Investments & Treasury Holdings
The company maintains long-term unquoted equity investments amounting to ₹0.05 lakhs represented by 50 equity shares in SVC Co-operative Bank Limited.
👥 Power & Control: Who Pulls the Strings?
The Brain Trust: Board of Directors & Key Managerial Personnel (KMP)
| Name of Director / KMP | Designation / Role | DIN / ICSI Membership | Category |
|---|---|---|---|
| Mr. Mulesh M. Savla | Chairman | DIN: 07474847 | Non-Executive Independent Director |
| Mr. Nikhil P. Desai | CEO & Managing Director | DIN: 01660649 | Executive Director / Promoter Group |
| Mr. Chandrakant V. Gogri | Director | DIN: 00005048 | Non-Executive Non-Independent Director / Promoter |
| Mr. Dattatray S. Galpalli | Director | DIN: 01853463 | Non-Executive Non-Independent Director |
| Ms. Misha B. Gala | Director | DIN: 08523865 | Non-Executive Independent Director |
| Mrs. Nisha B. Shah | Director | DIN: 10049176 | Non-Executive Independent Director |
| Mr. Parimal H. Desai | Director | DIN: 00009272 | Non-Executive Non-Independent Director / Promoter |
| Mr. Santosh M. Kakade | Executive Director | DIN: 08505234 | Executive Director |
| Mr. Nitesh H. Medh | Chief Financial Officer (CFO) | ICAI M.No: 155868 | Key Managerial Personnel |
| Mrs. Priyanka A. Chaurasia | Company Secretary & Compliance Officer | ICSI M.No: A44258 | Key Managerial Personnel |
Who Owns the Stock? Shareholding Pattern
| Category of Shareholder | Number of Shares | % of Holding |
|---|---|---|
| Promoter and Promoter Group | 42,21,624 | 49.87% |
| Public Shareholding | 42,43,371 | 50.13% |
| Total | 84,64,995 | 100.00% |
🎯 The Strategic Outlook: Future Plans & Potential Pitfalls
Competitive Advantages & Economic Moats
The enterprise derives its competitive strength from established technical expertise across the chemical manufacturing value chain, long-standing client relationships with major domestic and international brand owners, and a diversified product portfolio encompassing ionic, non-ionic, and specialty surfactants. Strategic investments in dedicated R&D infrastructure, process optimization, and renewable energy adoption reinforce its operational resilience and commitment to sustainable manufacturing.
What Could Go Wrong? Key Challenges & Business Risks
The company operates in a dynamic macroeconomic environment subject to several external risks, including:
- Volatility in raw material supply and feedstock prices, particularly fatty alcohols and crude oil derivatives.
- Geopolitical tensions, trade restrictions, and fluctuations in international shipping, freight, and logistics costs.
- Intensifying domestic and international competition leading to pricing pressures within key market segments.
- Stringent environmental, safety, and regulatory compliance mandates governing chemical manufacturing operations.
The Next Chapter: Growth & CapEx Initiatives
Looking ahead to FY 2027, the company remains cautiously optimistic, supported by resilient domestic consumption trends and expanding opportunities within high-margin specialty and skin care segments. Management aims to leverage operational agility, expand its geographic reach, and scale up its product portfolio while optimizing procurement, manufacturing, and logistics pathways.
The Verdict: Strategic Outlook & Conclusion
Aarti Surfactants Limited demonstrates underlying business resilience supported by robust customer relationships, a diversified geographic footprint, and disciplined capital allocation. By maintaining a structured focus on operational efficiency, safety culture, and sustainability-driven product innovation, the company is well-positioned to navigate external market uncertainties and deliver sustainable long-term value to its stakeholders.
Note: Financial ratios, margins, YoY growth percentages, and % revenue shares are calculated by IndianCompanies.in based on disclosed Ind AS financial statements.
Official Site: https://www.aarti-surfactants.com