Aarti Industries’ stock jumped 5.2% to ₹498.40 on Tuesday after the company disclosed a new ₹1,500 crore supply agreement with a global specialty‑chemicals client, a deal that could start generating revenue in FY 2028‑29. At 3:15 pm, the share price was hovering near ₹488.10, up 3% from the previous close.
The contract will see Aarti build, commission and run a dedicated plant in India, leveraging the customer’s proprietary technology. Kotecha, the company’s MD‑CEO, said the arrangement will involve a structured financial model funding CAPEX of under $25 million, a figure that’s modest compared with the 10‑year revenue horizon. He added, "This partnership underpins our confidence in setting up world‑class facilities that drive long‑term growth."
In the broader chemicals space, the NSE sector was up 2% on the day, while Aarti’s 30% year‑to‑date gain outperforms the 12% sector average. The stock’s recent rally has largely been driven by its historic 15‑year CAGR of 18%, setting a solid backdrop for this new contract. Analysts noted that the ₹1,500 crore upside could lift next‑year top line by roughly 4% if the plant becomes operational by FY 2029.
Looking ahead, the company has not yet issued explicit guidance, but the new facility’s operational window aligns with its FY 2027 revenue target of ₹12,500 crore, up 5% YoY. Kotecha hinted that the partnership could expand as the customer’s India requirements grow, implying potential revenue‑share increases beyond the initial commitment.
With the deal announced, traders are watching for any signals on future capital allocation. Aarti’s board is expected to approve the CAPEX in the upcoming AGM, and the company will report Q4 FY 2026 results in March. Investors will be keen to see whether the new plant’s output translates into the projected margin lift of 2.5% over the next three years.