Aether Industries Q2 FY27 Investor Presentation: Sales Up 24% YoY, EBITDA Margins Expand
Aether Industries' Q2 FY27 investor presentation shows a 23.96% YoY sales growth, driven by CEM and CRAMS verticals. EBITDA margins improved to 31.64% in 1H FY27. The company is investing in a new R&D center (₹1,000 million) and Magnum site expansion. Commercial sales of semiconductor materials commenced in October 2026.
The announcement provides a comprehensive update on financial performance, strategic business vertical growth, significant capital expenditure plans, and new product commercialization, all of which are material to investors.
The company reported strong year-on-year sales growth, improved EBITDA margins, and progress in key business verticals and capital expenditure projects. The commencement of commercial sales for semiconductor materials is a significant positive development.
Aether Industries Limited has released an investor presentation providing an update on its performance for Q2 and H1 of FY27. The company reported a strong year-on-year sales growth of 23.96% and a quarter-on-quarter growth of 6.33%. This growth was primarily driven by the Contract Exclusive Manufacturing (CEM) and Contract Research and Manufacturing Services (CRAMS) verticals, which now contribute 65.97% of total revenue, moving towards the company's target of 70%. CEM grew approximately 50.03% year-on-year, and CRAMS expanded by 23.91% year-on-year.
The CRAMS business saw solid growth supported by new R&D projects, particularly in Oil & Gas and Material Science. The company transitioned its R&D operating framework to a 24x7 model, enhancing responsiveness and project execution. Work has commenced on the silicon project with Dow Chemicals, and a new R&D facility is expected to be commissioned by Q2 FY28. The CRAMS division is engaged in over 65 projects.
The CEM business demonstrated strong momentum with several major contracts ramping up. The Baker Hughes contract at the Strata site generated ₹720 million in revenue. The Ascend site, housing contracts for Milliken and a European customer, is progressing as expected, with capacity utilization at 70%. The Magnum site is being developed for semiconductor products and a new chemical entity for an agrochemical major, with commercial production expected to start in Q4 FY27. Commercial sales of semiconductor products have already begun from the pilot plant since October 2026.
Large Scale Manufacturing (LSM) contributed 33.35% to sales, with modest growth due to strategic reallocation of production lines to the CEM vertical. LSM product prices increased by 27.45% year-on-year. The launch of a pharmaceutical product at the Magnum site is anticipated to boost the LSM vertical in Q3 and Q4 FY27.
Sectorally, Oil and Gas was the largest contributor (33.42%), followed by Pharmaceutical (26.58%) and Material Science (17.93%). Commercial sales of semiconductor materials began in October 2026, with commercial-scale supplies from the Magnum site expected by Q4 FY27.
Regarding capital expenditure, the new R&D centre is progressing steadily and is expected to be ready by Q2 FY2028, with a total capex of approximately ₹1,000 million. The Magnum site (Site 5) has seen a capex of approximately ₹833 million in Q1 FY2027, with two further production blocks expected by Q3 FY2027. Total capital expenditure for the current financial year is projected between ₹3,000 million and ₹3,500 million.
EBITDA margins for 1H FY27 expanded to 31.64% from 30.76% in 1H FY26, an 88 basis point year-on-year improvement, attributed to a favorable revenue mix and pricing strength. Working capital saw an increase in inventory days to 172 days (from 151 days) due to strategic stocking of raw materials amid geopolitical volatility and increased shipping costs. Debtor days decreased to 107 days. As of September 30, 2026, outstanding borrowings were ₹4,152 million in working capital loans and ₹2,085 million in term loans.
Capacity utilization at the Genesis plant increased to 77% in Q2 FY27 from 75% in Q1 FY27, Ascend to 70% from 69%, and Strata to 61% from 59%.
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Aether Industries Limited filed this with the NSE as a statutory disclosure, categorised under investor presentation. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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