Summary of the primary business of the Company
Aether Industries Limited specialises in researching, developing, manufacturing, and marketing speciality chemicals and advanced intermediates, leveraging complex and innovative chemistry and technology. Incorporated in India in 2013 with a vision to carve out a global niche, the company focused on research & development, team building and infrastructure during its initial phase through FY 2017. Revenue generation began in FY 2018, and the company has consistently grown since, achieving a CAGR of 34.74% from FY 2018 to FY 2025.
Market Concentration & Characteristics
In FY2025 the specialty chemicals market experienced challenging business environment. Excess inventory and high competition on the back of new capacities coming in China led to decrease in prices. The sector is characterised by substantial investment in research and development, leading to a high level of innovation as companies continuously develop new products. Specialty chemicals, being function-specific demand ongoing innovation.
The industry is heavily regulated by various governmental bodies, with environmental and safety concerns driving the shift towards more eco-friendly and user-safe products. As a result, traditional chemical manufacturers are increasingly focusing on developing products with reduced environmental impact.
The threat of substitutes remains minimal, as speciality chemicals are tailored to specific performance and application needs, making them difficult to replace with conventional chemicals or alternative products.
Market concentration among end-users is significant, spanning diverse sectors such as automotive, electrical and electronics, oil and gas, material science and others. Product prices are closely linked to raw material
costs, making them susceptible to market volatility. Consequently, customers have limited to moderate bargaining power.
Market Dynamics
Specialty chemicals are integral to nearly every industrial sector. Of the global production, over half is utilized in four primary end-use industries: food and beverages; soap, cleaning products, and cosmetics; construction; and electrical and electronics. Emerging markets are anticipated to experience significant growth in this sector due to ongoing industrialization and expanding consumer-driven economies. Certain categories of specialty chemicals?such as specialty coatings, electronic chemicals, nutraceuticals, flavours and fragrances, and organic personal care products? are expected to see rapid expansion, driven by favourable conditions in their respective end-use markets.
In the oil and gas industry, technological advancements are marked by intensive research and development from major multinationals like Royal Dutch Shell, British Petroleum, and Total SA. These companies are focused on providing high-performance chemicals for applications such as oil field operations and chemical processing, aimed at improving oil recovery and maximizing reserves. Plowever, fluctuations in global crude oil prices and availability present ongoing challenges for formulators worldwide.
Global Chemicals Market
In 2024 the global chemical market was valued at -USD 5.6 Trillion with China accounting for major market share. The 2029 projection uses the CAGR of 4.4% from, forecasting a market size of USD 6.9 trillion by 2029.
Global Speciality Chemicals Market
In 2024 the speciality chemicals market was valued at -USD 940 billion and is projected to grow between 5-6%
for the next five years to -USD 1.2 trillion by 2029.
The 2029 projection uses the CAGR of 4.06% from, with the market expected to reach USD 1,244.13 billion by 2032, adjusted to 2029 using the CAGR.
Indian Speciality Chemicals Market
The Indian Speciality Chemicals market in 2024 was Valued at USD 89 billion and is expected to grow to USD 145 billion in 2029 (CAGR 10.3% 2024-29). Traditionally low cost labour and raw material availability were advantages enjoyed by Indian manufacturing companies Increasingly though speciality chemicals are focussing on product development capabilities have become progressively more important across various segments.
The 2029 projection assumes continued growth beyond the 2025 forecast of USD 64 billion (CAGR 12% from and). Since specific 2029 data is unavailable, the 2025 figure is used as a conservative estimate, noting that growth may continue at a similar or slightly lower rate as per ibex.org
Indian Speciality Chemicals Market
The Indian specialty chemicals market began gaining prominence in the late 20th century, fueled by Indias economic liberalisation in 1991, which opened doors to foreign investment and global trade. Initially, the chemical industry focused on bulk chemicals, but the specialty chemicals segment grew as India leveraged its cost-competitive manufacturing, skilled workforce, and proximity to raw material sources like petrochemicals from the Middle East. By the early 2000s, India established itself as a key player in agrochemicals, dyes, and pigments, with companies like UPL and Atul Ltd. scaling operations.
The market faced challenges during the 2008 global financial crisis and the 2020 COVID-19 pandemic,
which disrupted supply chains and slowed demand. However, post-2020, the industry rebounded strongly due to global supply chain diversification (the "China+1" strategy) and increased domestic consumption. From 2014 to 2019, the specialty chemicals segment grew at a CAGR of 11%, outpacing the overall chemical industry, driven by rising exports and demand from end-user industries like food processing and personal care.
Current trends
The Indian speciality chemicals market, valued at USD 64.5 billion in 2024, is experiencing robust growth:
1. Sustainability and Green Chemistry: There is a strong shift toward eco-friendly and bio-based chemicals, particularly in surfactants, pigments, and coatings, to meet regulatory standards and consumer demand for sustainable products. For example, in August 2024, the Indian Institute of Science developed a sustainable surfactant from agricultural byproduct waste.
2. Global Supply Chain Diversification: The "China+1" strategy has positioned India as a preferred manufacturing hub, boosting exports of agrochemicals, dyes, and speciality polymers to markets like the US, Europe, and Southeast Asia. Exports grew by nearly 20% from 2021 to 2023.
3. R&D and Innovation: Companies are investing heavily in research and development (R&D) to develop high-performance chemicals. Partnerships, such as UPLs 2024 MoU with ISRO for chemical innovation, highlight this trend.
4. Capacity Expansion: Major Indian chemical players are expanding production to meet rising demand from industries like automotive, pharma, and electronics.
5. Digitalization and B2B Marketplaces: The
fragmented supply chain is being streamlined through managed B2B marketplaces, addressing the challenge of over 100,000 SKUs across manufacturers.
Despite these positive trends, challenges include raw material price volatility, dependency on imports (especially from China), and stringent environmental regulations increasing compliance costs.
Future outlook
The Indian Speciality Chemicals market in 2024 was Valued at USD 89 billion and is expected to grow to USD 145 billion in 2029 (CAGR 10.3% 2024-29).
1. Rising Domestic and Export Demand: Domestic consumption is expected to account for 20% of incremental global chemical consumption by 2040, with specialty chemicals comprising 80% of Indias chemical exports.
2. Government Initiatives: Policies like the Production Linked Incentive (PLl) scheme and Petroleum,
Chemicals, and Petrochemicals Investment Regions (PCPIRs) are attracting investments (e.g., fl lakh crore in Dahej PCPIR).
3. Sustainability Focus: Increasing demand for green chemicals will drive innovation in eco-friendly formulations.
4. Global Market Share Growth: Indias share in the global specialty chemicals market is expected to rise from 3-4% in 2021 to 6% by 2026, outpacing Chinas growth.
Overview of Aether Industries
We are a leading specialty chemical manufacturer in India, specializing in advanced intermediates and specialty chemicals through sophisticated and differentiated chemistry and technology. Founded in
2013, our vision was to carve out a unique position in the global chemical industry by integrating innovative approaches in chemistry, technology, and systems to foster sustainable growth.
During our initial phase, through Fiscal Year 2017, we concentrated on building our team and infrastructure, alongside developing our R&D capabilities to establish our core competencies. Our revenue generation began in Fiscal Year 2018, marking the start of our second phase. Since then, the company has achieved consistent growth, with a CAGR of 34.74% in revenues from Fiscal Year 2018 to Fiscal Year 2025.
Our approach is centered on leveraging a comprehensive model of chemistry and technology competencies. Unlike many chemical companies that rely on one or a few chemistry competencies, we utilize eight distinct competencies across our diverse product range. This strategic advantage allows us to meet the specialized and advanced intermediate needs of various end-products and applications. These competencies, all developed in-house, are a testament to the strength and innovation of our R&D team.
We operate under three distinct business models: (i) Large Scale Manufacturing (LSM) of our own intermediates and specialty chemicals; (ii) Contract Research and Manufacturing Services (CRAMS); and (iii) Contract/Exclusive Manufacturing (c/EM). We are among the few Indian specialty chemical companies to have successfully established these three separate business models within just five years of commencing commercial manufacturing. Our product selection is guided by criteria such as chemical complexity, niche applications, limited competition, scalability, and commercial viability.
Applying these criteria, we develop and continue to create advanced intermediates and specialty chemicals with applications across various sectors, including pharmaceuticals, agrochemicals, materials science, coatings, high-performance photography, additives, and oil and gas.
As of March 31, 2025, our portfolio includes over 29 products, all of which are being manufactured for the first time in India by Aether Industries Limited.
We specialize in products that integrate complex chemistries with advanced technology core competencies. Our chemistry competencies encompass Grignards, organolithium and other organometallic chemistry, ethylene oxide and isobutylene chemistry, hydrogenation, catalysis (both homogeneous and heterogeneous), cross-coupling chemistry, and metathesis/polymerization chemistry. Our technology competencies include continuous reaction technology, high-pressure reaction technology, fixed bed reaction technology, distributed control system (DCS) process automation, and high vacuum distillation technology (wiped film/short path). By focusing on core competencies, we have adopted a chemistry and technology-oriented sales vision, distinct from a traditional product and industry- oriented approach.
Our portfolio comprises advanced intermediates and specialty chemicals that bridge the gap between commodity chemicals and final actives and formulations. Our products are positioned closer to the higher value range, situated further from commodities and nearer to the final active components in the chemical industry value chain. In Fiscal Year 2025, the average selling price of our products was fl,306.89 per kg. We emphasize the development of high-value products that serve a range of therapeutic areas within the pharmaceutical industry, including hypertension, anti-platelet, anti-psychotic, antihistamine, NSAIDs, antiretrovirals for HIV/AIDS, anti epileptics, and anti-convulsants, among others.
Beyond pharmaceuticals, our products are utilized in various sectors such as agrochemicals, material science, coatings, high-performance photography, additives, sustainability & renewables, and oil and gas. Most of our advanced intermediates and specialty chemicals were introduced for the first time in India and serve as 100% import substitutes, supporting the Government of Indias "Make in India" and "Atma- Nirbharta" initiatives. For instance, products like 4MEP, T2E, MMBC, NODG, BFA, OTBN, and DVL, which were previously imported from China, are now produced and exported by us, even reaching Chinese customers.
Our sales model primarily involves business-to- business transactions both domestically and internationally. We export a significant portion of our products to 20 countries, including Italy, Spain, Germany, the United States, India, the Netherlands, and other regions worldwide.
The cornerstone of our company is our robust in-house research and development capabilities. Our chemistry and technology core competencies, along with all our products, are developed by our dedicated R&D team, scaled up in our Pilot Plant, and brought to market using our own design and engineering expertise. We operate advanced R&D facilities and a Pilot Plant at our Manufacturing Facility 1 in Sachin, Surat, Gujarat. These facilities focus on developing our product pipeline, next-generation solutions, and catering to our CRAMS customers.
As of March 31, 2025, our specialized R&D team comprises 286 scientists and engineers (up from 276 on March 31, 2024), including 145 scientists with PhDs or Masters degrees (from 148 in the last fiscal year) and 141 chemical engineers (up from 128 in the last fiscal year). Our R&D Facilities are equipped with laboratories dedicated to process development, innovation, and technology advancement, enabling us to optimize efficiencies from initial conceptualization through to product commercialization. Our strategic investments in R&D have been pivotal to our success, distinguishing us in the market and securing leading positions for several products. In Fiscal Year 2023, we tripled the size of our R&D facilities, increasing our fume hoods from 17 to 55, thereby boosting our capacity to conduct over 110 experiments and reactions per day.
Our state-of-the-art Pilot Plant serves as a critical link between R&D and large-scale production. It is one of the largest pilot plants globally, featuring over 100 reactors for both batch and continuous reaction technologies. The Pilot Plant plays dual roles: generating essential scale-up data for the transition from R&D to full production, and serving as a stand-alone facility for low-volume, high-value products for our CRAMS clients. It includes a wide array of reactor and downstream equipment for both continuous and batch processes, across diverse scale-up volumes and process parameters, all automated via DCS process automation. Notably, our Pilot Plant also houses a dedicated section for continuous reaction and flow technology, featuring pilot-scale equipment for continuous reactors and downstream processes. Like our R&D expansion, we had also tripled the capacity of our Pilot Plant in Fiscal Year 2023. And further expansion plans are going on as we have added new land next to our current R&D unit.
We operate three facilities in Sachin, Surat, Gujarat,
India:
Manufacturing Facility 1 covers approximately 10,500 square meters (which was only 3,500 square meters till last fiscal year) and includes our R&D labs, analytical sciences laboratories, Pilot Plant, CRAMS facility, and hydrogenation unit.
Manufacturing Facility 2 spans around 10,500 square meters and serves as a large-scale manufacturing hub with an installed capacity of 6,096 MT per annum. It includes a solvent recovery plant (SRP Plant) with a capacity of 13,140 MT, distributed across three buildings hosting 16 production streams and one SRP Plant stream. In Fiscal Year 2024, our capacity utilization was 78% (compared to 72% on March 31, 2024), with the SRP Plant at 67% (compared to 48% on March 31, 2023).
Manufacturing Facility 3, commissioned in January 2023, covers approximately 5,250 square meters. It has an installed capacity of 1,800 MT per annum and achieved a capacity utilization of 67% in Fiscal Year 2024 (compared to 62% as on March 31, 2024).
Manufacturing Facility 4, commissioned in March 2024 under our Wholly Owned Subsidiary Company - Aether Speciality Chemicals Limited, covers approximately 18,500 square meters. This site is currently dedicated to Baker Hughes for the manufacture and supply of their 8 products, for which we have entered into a multi year manufacturing and supply agreement, under our CEM Business Model.
All the facilities are equipped with DCS process automation and adhere to high standards of technology, engineering, and automation. They are strategically located near Hazira Port and JNPT Port, optimizing freight costs for exports.
Manufacturing Facility 2, Facility 3 and Facility 4 hold ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISMS 27001:2013, and Indian GMP certifications. All our units current and any future, will have these certifications
For future expansion, in Fiscal Year 2022, we acquired a 125,000 square meter plot at Panoli GIDC, Bharuch District, Gujarat, for future expansion. Regulatory approvals for this sites expansion have been obtained, and initial phase work has commenced. We have also secured additional land near Manufacturing Facility 3, referred to as 3+, for future expansion.
The expansion of the Site 3+ and the first phase expansion for the Site 5 has been started from July 2023 onwards.
Site 3+ is anticipated to be operational from end of Fiscal Year 2026 and the first phase of Site 5 is expected to be operational (with 4 production blocks) by end of Q3 of Fiscal 2026.
In addition to our core R&D and manufacturing operations (our first business model), we also engage in Contract Research and Manufacturing Services (CRAMS), which represents our second business model. This involves providing outsourced research and technology services, including contract research, pilot scale-up, contract manufacturing, FTE services, technology development, and process optimization. Our CRAMS clients collaborate closely with our scientists and engineers, utilizing our R&D Facilities, analytical laboratories, and Pilot Plant. Molecules developed through CRAMS for our clients have the potential to transition into regular commercial supplies and become products for large-scale manufacturing within our company. This model also fosters engagement with top technical teams and leadership ?such as CTOs, technical directors, and VPs?of our clients, paving the way for future contract manufacturing opportunities.
Our Market Opportunity
Growth in Speciality Chemical Market
The global specialty chemical market is witnessing sustained growth, driven by demand from end-use sectors such as pharmaceuticals, agrochemicals, construction, automotive, and electronics. The market was valued at USD 285.4 billion in 2023 and is projected to reach USD 364.8 billion by 2028, growing at a CAGR of 5.0% during the forecast period.
India is emerging as a global manufacturing hub in this segment. The Indian specialty and fine chemicals market stood at USD 46.7 billion in 2022 and is expected to grow to USD 95.2 billion by 2030, at a CAGR of 9.3%, according to Grand View Research.
This growth is supported by:
1. Increasing export demand as global companies seek China-plus-one sourcing strategies.
2. Rising domestic consumption across industrial and consumer sectors.
3. Government support for the chemical sector under the Production Linked Incentive (PLl) schemes.
With an increasing focus on sustainability, innovation, and high-value formulations, specialty chemicals continue to play a crucial role in enabling next- generation technologies and environmentally friendly solutions.
Aether Industries is well-positioned to capitalize on the expanding specialty chemicals market both in India and globally, thanks to our core competencies in chemistry and technology. Our enhanced R&D efforts will further leverage our existing assets and support our expansion initiatives across various manufacturing sites.
Factors driving the growth in the Indian Speciality Chemicals market
The following factors are driving growth in the India Speciality Chemicals market:
Growth in end use segments
The speciality chemicals industry in India is driven by both domestic consumption and exports.
Supply chain de-risking driven by China downturn
Global companies are accelerating efforts to diversify supply chains away from China, responding to a combination of economic slowdown, rising costs, trade tensions, and regulatory risks:
1. Economic pressures in China?including slower growth, industrial overcapacity, rising labor costs, and weakening domestic demand?have lowered Chinas competitiveness in labor-intensive manufacturing, spurring companies to seek alternatives globally.
2. The widely adopted "China +1" or "Anything But China" strategy reflects this shift, steering production to countries like India, Vietnam, Indonesia, Malaysia, and parts of Latin America.
3. Major industries?such as electronics, textiles, specialty chemicals, and pharmaceuticals?are leading the reconfiguration; companies like Apple, HP, Intel, and others are scaling operations in these new manufacturing hubs.
4. Government policies are reinforcing the trend: initiatives like Supply Chain Resilience Initiative (india- Japan-Australia) and broader friend-shoring frameworks support intentional diversification away from China.
Key drivers
1. Structural slowdown and reform in China is impacting sectors like automotive, textiles, and electronics, while its industrial overcapacity continues to weigh on global supply chains.
2. Geopolitical and trade disruptions, including tariffs, export controls, and growing unpredictability in China-U.S. relations, have intensified supply-chain risk perception.
Where are the supply chains relocating?
1. Southeast Asia: Countries such as Vietnam, Malaysia, Thailand, and Indonesia are attracting capital and manufacturing due to competitive cost structures and supportive trade deals
2. India: Emerging as a focal point for diversification? especially in sectors like electronics and chemicals? with supportive infrastructure, policy incentives, and rising investments.
Additional factors influencing and driving the Indian specialty chemicals market
Beyond strong domestic demand and global supply chain diversification, several key factors are accelerating growth in Indias specialty chemicals sector:
1. Government Initiatives: Policies such as the Production Linked Incentive (PLl) scheme and Make in India promote manufacturing competitiveness and investment in high-value chemical production.
2. R&D and Innovation: Increased focus on research, process optimization, and sustainable chemistries is enabling Indian companies to develop advanced specialty products catering to global quality and environmental standards.
3. Rising End-User Industries: Growth in pharmaceuticals, agrochemicals, personal care, electronics, and construction sectors is boosting demand for specialty chemicals with tailored properties.
4. Export Potential: Indias cost advantages and improving infrastructure are enhancing its position as a preferred global supplier, especially amid supply chain realignment.
5. Sustainability Trends: Adoption of green chemistry practices and bio-based specialty chemicals aligns with global environmental regulations and customer preferences.
Together, these factors create a robust ecosystem that drives innovation, competitiveness, and expansion of Indias specialty chemicals market.
Our (Aether Industries Limiteds) strengths
We believe that we possess a number of competitive strengths, which enable us to successfully execute our business strategies, including the following:
Focus on R&D to leverage our core competencies of chemistry and technology
Our Company is fundamentally anchored in our robust in-house research and development capabilities. Strategic investments in R&D have been pivotal to our success, setting us apart and enabling us to secure leading market positions for various products. Leveraging the technical expertise weve cultivated over the years, we execute innovative processes on a global scale that are challenging to replicate, thus establishing significant barriers for new entrants.
Our core competencies in chemistry and technology, as well as all our products, have been developed exclusively by our in-house R&D team. These innovations are scaled up in our Pilot Plant and launched into production through in-house design and engineering. This independent development, unassisted by client R&D, underscores our strength in innovation and research. Our expertise spans a wide array of chemistries and technologies, supporting numerous end-use industries. Notable examples of our chemistry core competencies include Grignards, organolithium and other organometallic chemistries, ethylene oxide and isobutylene chemistry, hydrogenation, catalysis (both homogeneous and heterogeneous), cross-coupling chemistry, and metathesis/polymerization chemistry. We are a pioneer in the Indian specialty chemicals market for tandem Grignard and ethylene oxide chemistry, with only a few competitors in these areas.
In Fiscal Year 2023, we tripled the size of our R&D Facility, increasing the number of fume hoods to 55, which allows us to conduct over 110 reactions and experiments daily. Additionally, our R&D personnel increased from 276 as of March 31, 2024, to 286 as of March 31, 2025, reflecting significant growth in our research capabilities.
We are committed to the continual enhancement and expansion of our R&D and Pilot Plant facilities, recognizing them as essential drivers for product development. In Fiscal Year 2025, our total capital expenditure, including investment in the Pilot Plant, was approximately 5426 MM (FY 2023-24: 5300).
Aether Industries Limited is strategically expanding its Research & Development (R&D) infrastructure to strengthen its position as a global leader in specialty chemicals and contract research.
The company has acquired additional land adjacent to its existing R&D facility in Hojiwala, Surat, where it plans to significantly scale its R&D and pilot plant capabilities. This expansion will enable Aether to double its current R&D capacity, support more complex chemistries, and accelerate product development across its CRAMS, contract manufacturing, and proprietary product segments.
As part of this initiative, Aether is also investing in cutting-edge analytical equipment, including advanced spectroscopy and process simulation tools, to enhance innovation and quality.
This R&D expansion reinforces Aethers long-term vision of being an innovation-first, customer-focused company, capable of delivering high-value, sustainable solutions to global partners.
Long standing relationships with a diversified customer base
Our customer base includes over 270 multinational, regional, and local companies. As of March 31, 2025, our products are supplied to more than 50 global customers across 18 countries and over 220 domestic clients.
We are committed to delivering high-quality products consistently, which builds long-term relationships and reduces customer inclination to seek alternative suppliers. This creates a competitive advantage for us, as new entrants face significant investment and lengthy approval processes.
In Fiscal Year 2025, our facilities were audited 38 times by various customers or their external auditors. Our CRAMS model facilitates valuable interactions with top technical leaders, leading to further project opportunities.
We provide a comprehensive supply chain solution? from initial research and development through to commercial-scale manufacturing?while maintaining transparent communication and straightforward payment terms.
Aetherians
We possess a highly skilled team in essential scientific and engineering fields. Our dynamic, ambitious "startup" culture is reflected in our average staff age of 29 years as of March 31, 2024. Our core and senior management team consists of technical experts specializing in organic chemistry and chemical engineering.
QEHS
Integrated QEHS Management Aether implements a unified QEHS framework that aligns quality, environmental stewardship, occupational health, and safety across all operations.
Global Certifications
The company maintains ISO 9001:2015 (quality), IS014001:2015 (environment), ISO 45001:2018 (occupational health & safety), and ISO 27001:2013 (information security) certifications, alongside Indian GMP standards.
Proactive Systems & Culture Aether embeds QEHS into its business processes, prioritizes risk assessment throughout the product lifecycle, and promotes continuous improvement through audits, training, and stakeholder engagement.
Environmental & Safety Performance The company has advanced its energy efficiency via renewable adoption, optimized wastewater and waste management, and emphasized zero-incident safety awareness?especially following a fire incident at one site, which led to strengthened protocols and emergency preparedness systems.
Aethers QEHS approach is not just compliance-driven but woven into strategy and culture. It ensures the delivery of high-quality products, minimizes environmental impact, protects its workforce and communities, and aligns with global best practices? reinforcing trust with clients, regulators, and investors alike.
Synergistic Business Models focused on Large Scale Manufacturing, CRAMS and Contract Manufacturing
We operate under three distinct business models: (i) large-scale manufacturing (LSM) of our own intermediates and specialty chemicals; (ii) Contract
Research and Manufacturing Services (CRAMS); and (iii) contract/exclusive manufacturing (CEM).
According to F&S, we are among the few Indian specialty chemical companies to have successfully launched all three models into commercial production within just five years. All these Business Models are generating revenues for Aether Industries, wherein, LSM had been the most contributing model, but off late recently CEM has picked up well on account of the new contracts entered into by Aether Industries Limited, with marque customers like Saudi Aramco, Baker Hughes, Seqens, Novoloop, Milliken and many others.
These business models are mutually reinforcing. For instance, customers for our own intermediates and specialty chemicals are often the same targets for our CRAMS and contract manufacturing services. Our CRAMS business enables collaboration with innovative firms on new products, enhancing our R&D capabilities and supporting the development of our own offerings. Additionally, increasing production through contract manufacturing allows us to achieve economies of scale and negotiate better pricing with suppliers.
Automated manufacturing facilities utilizing advanced technologies and systems Our manufacturing infrastructure, cutting-edge technologies, and automation are crucial to our growth in intermediates and specialty chemicals. We have pioneered innovative manufacturing processes and product recipes, establishing leadership in many of our product categories.
We operate four sites in Sachin, Surat. Manufacturing Facility 1, spanning approximately 10,500 square meters, houses our R&D, analytical labs, Pilot Plant, CRAMS, and hydrogenation facilities. Manufacturing Facility 2, covering about 10,500 square meters, serves as a large-scale manufacturing hub with a capacity of 6,096 MT per annum (and 13,140 MT for the SRP Plant) across 16 production streams and one SRP Plant Stream as of March 31, 2025. Manufacturing Facility 3, covering 5,250 square meters, has a capacity of 1,800 MT per annum as of March 31, 2025. We have also procured a plot of land adjacent to Manufacturing Facility 3 (termed as Manufacturing Facility 3++, covering 5,250 square meters), which will be dedicated to a customer of USA for the Contract / Exclusive Manufacturing.
In March 2024, Manufacturing Facility 4 was commissioned and production commenced at our wholly-owned subsidiary, Aether Speciality Chemicals Limited. This facility, designed for six products under the Contract/Exclusive Manufacturing model for Baker Hughes, will also provide a 7% income tax benefit.
We acquired a 125,000 square meter plot at Panoli GIDC, Bharuch District, Gujarat, in Fiscal Year 2022 for future expansion, termed as Manufacturing Facility 5. In Fiscal Year 2024, we received regulatory approvals and began the first phase of development. Additionally, we acquired land near Manufacturing Facility 5, ad measuring 60,000 square meters, which makes this Manufacturing Facility 5 totalling to 46 acres approximately. Phase one expansion at Manufacturing Facility 5, has been started from July 2023, wherein 4 production blocks, common utilities and administration building will be contracted. We are hopeful to have the first phase ready and commissioned with 2 blocks by end of December 2025. And then on every 6 months, we foresee, 2 production blocks coming up for the future of Aether Industries Limiteds growth.
Each facility operates independently, with dedicated quality departments, effluent treatment plants, and warehouses. Their proximity to Hazira and JNPT Ports helps reduce export freight costs.
Our facilities employ advanced technologies and systems such as:
1. Continuous Reaction Technology
2. Advanced Batch Reaction Technology
3. High Pressure Reaction Technology
4. Fixed Bed Reaction Technology (Liquid / Gas Phase)
5. Cryogenic Reaction Technology
6. Distillation Technology (wiped film and short path)
7. Distillation Technology (high vacuum and fractional)
We employ Distributed Control Systems (DCS) for process automation: Siemens PCS7 DCS in our Pilot Plant and CRAMS operations, and Yokogawa Centum VP DCS in our manufacturing facilities. These systems enhance reliability, ensure consistent product quality, reduce overhead costs, and improve safety by minimizing human error and industrial accidents. Our operations are certified under ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISMS 27001:2013, and Indian GMP.
Contract Research and Manufacturing Services (CRAMS)
Our CRAMS business are the services that our customers outsource to us and include:
Contract research;
1. Pilot scale-up services;
2. Contract manufacturing;
3. Full time equivalent (FTE) services;
4. Technology development; and
5. Process development and optimisation
Our state-of-the-art Pilot Plant provides a significant competitive edge in attracting CRAMS customers. It serves a dual purpose: generating crucial scale-up data to address potential issues before full-scale production and operating as a standalone facility for low-volume, high-value products for CRAMS clients. The Pilot Plant features a diverse array of reactors and downstream equipment, accommodating both continuous and batch processes across various scales, metallurgies, and parameters, all managed through DCS automation.
CRAMS customers collaborate closely with our scientists and engineers, leveraging our R&D Facilities, analytical labs, and Pilot Plant. Molecules developed through CRAMS can transition into large-scale commercial production for our company. The CRAMS model also fosters high-level discussions with technical leaders (CTOs, technical directors, VPs), paving the way for future contract manufacturing opportunities.
In Fiscal Year 2023, we had tripled the capacity of our R&D and Pilot Plant from October 2022, expanding the number of fume hoods from 17 to 55 for increased experimentation and adding more reactors to the Pilot Plant. The total area for these is approximately 7,000 square meters and the same which were leased from the Companys directors HUF and his spouse, are now purchased from them and assets of the Company from Fiscal Year 2024-25.
We have recently also added one more adjacent land to the Research & Development and Pilot Plant Unit, ad measuring approximately 3,500 square meters. This adds up to total our Research & Development Unit and Pilot Plant unit to 10,500 square meters, equivalent to our Manufacturing Facility 2 in Sachin GIDC. We will be adding up a Research unit at this adjacent land, the work for which has been started from March 2025 and we expect to incur a capex of Rs. 65 Crores odd for the said expansion. We will be increasing the fumes hoods from current 55 to 150 to allow us to take up more of the CRAMS business, the inquiries for which are filling up very fast. We will also be enabling more in-house product developments, for our Large Scale Manufacturing business model.
Contract Manufacturing / Exclusive Manufacturing
We also manufacture our customers products under a contractual supply agreement based model. These customer contracts are both short-term and longterm and involve both exclusive and non-exclusive arrangements.
Aether Industries Contract / Exclusive Business Model is a cornerstone of its growth strategy, blending innovation, sustainability, and global partnerships. By focusing on high-value, client-specific manufacturing and leveraging its advanced R&D and production capabilities, Aether is well-positioned to maintain its leadership in the specialty chemicals sector while contributing to sustainable industrial solutions.
Key Features of the Contract / Exclusive Business Model
1. Exclusive Manufacturing Agreements: Aether Industries secures long-term, take-or-pay contracts with global industry leaders, such as Baker Hughes, SEQENS, and Saudi Aramcos Converge business. These agreements ensure stable revenue streams and predictable demand, reducing market volatility risks. For instance, Aethers 2023 agreement with Baker Hughes involves manufacturing six specialty pour- point depressants for crude oil transportation, while the 2024 SEQENS deal focuses on bio-based products with an annual volume exceeding 100 metric tonnes.
2. High-Value, Niche Products: The model emphasizes the production of complex, technology-intensive chemicals, leveraging Aethers expertise in advanced chemistries like high-pressure hydrogenations, Grignard reactions, and continuous reaction technologies. This focus on high-margin, differentiated products strengthens Aethers competitive edge in industries such as pharmaceuticals, oil and gas, and sustainable materials.
3. Collaborative Process Development: Aether collaborates closely with clients to develop and scale innovative manufacturing processes. For example, the SEQENS agreement involved three years of joint development to create a complex, continuous reaction process for bio-based products, showcasing Aethers R&D and pilot plant capabilities.
4.Sustainability Focus: The model aligns with global trends toward sustainable chemistry. Aethers exclusive manufacturing of C02-based polyols for Saudi Aramcos Converge business, used in coatings, adhesives, and elastomers, positions the company as a leader in carbon-neutral solutions, with a 2,000 TPA production line already operational.
5. Global Reach and Scalability: With over 50% of FY24 revenues from exports to regions like Japan, Europe, the US, and the Middle East, Aethers contract manufacturing model supports global supply chains. The companys state-of-the-art facilities in Surat, including the recently commissioned Site-4 for Baker Hughes, enable scalable production from 1 kg to thousands of metric tonnes.
Strategic importance
1. Revenue Contribution: In Q4 FY25, contract manufacturing accounted for 38% (FY 24 - 26%) of Aethers revenue, reflecting a strategic shift toward higher-value exclusive agreements over traditional product manufacturing. This shift enhances profitability and aligns with global demand for customized chemical solutions.
2. Competitive Moat: Aethers deep chemistry expertise, cutting-edge R&D, and ability to handle complex processes create a strong moat, distinguishing it from competitors reliant on volume- based or single-chemistry platforms.
3. Long-Term Growth: Exclusive contracts with marquee clients like Baker Hughes and SEQENS, combined with investments in sustainable technologies, position Aether to capture emerging opportunities in green chemistry and high-growth industries.
Focus on Quality, Environment, Health and Safety (QEHS)
Our business is dedicated to sustainability, prioritizing quality, environment, health, and safety.
We recognize that upholding superior product quality is crucial to our brand and growth. To ensure consistent quality, efficacy, and safety, we have implemented rigorous quality systems across all our manufacturing processes, from production to delivery. Our products meet global quality standards and undergo thorough quality checks, including random sampling and internal inspections. Numerous key customers have audited and approved our facilities, validating the continued excellence of our operations. In Fiscal Year 2025, we underwent 38 audits (FY 2024: 29 audits) by customers or their external auditors. Additionally, we hold ISO 14001 (Environment), ISO 45001 (Occupational Safety), and ISO 27000 certifications. As of March 31, 2025, our environmental and safety teams consist of 53 (March 31, 2024: 50) and 47 (March 31, 2024: 45) employees, respectively, which is 5.37% and 4.76% (March 31, 2024: 5.22% and 4.70%) respectively of our total work force, reflecting our commitment to maintaining a safe and sustainable operation.
We are committed to minimizing our environmental impact by adhering to stringent standards that not only meet but often surpass regulatory requirements. Our manufacturing practices embody the principles of green chemistry, focusing on energy efficiency, atom economy, and the 4R strategy (reduce, recover, recycle, reuse). We utilize cleaner chemistries, advanced reaction technologies, and automation to optimize the use of non-toxic materials and reduce effluent generation.
Our sustainability efforts include a 100 KLPD in-house zero liquid discharge (ZLD) plant, featuring comprehensive treatment technologies such as chemical neutralization, multiple effect evaporators, mechanical vapour recompression, reverse osmosis, and a soil biotechnology platform with ozonation. In July 2022, we had commissioned a 16 MW solar power plant at Sarod Village, Gujarat, funded by internal accruals, to power our current facilities and Greenfield project. We have further invested in a 15 MW solar plant with autotracker modules, which has also become operational fully in December 202, which entails us to cover more than 75% of our electricity cost for Manufacturing Facility 1, Manufacturing Facility 2 and Manufacturing Facility 3. We will continuously be investing in the renewable sources of energy and are fast tracking the solar / wind / hybrid model for our upcoming new sites.
We also prioritize employee health and safety, ensuring a safe and supportive work environment. This includes hazard and operability studies for new products, an in- house mobile app for resource coordination, and comprehensive safety equipment including firefighting and safety systems including 700 m3 fire hydrant water storage, 271 m3 main electrical pump and diesel pump, automated foam monitors and water sprinklers, and Pulse Position Modulation (PPM) detection for gas and solvent leakage. Our plant wide DCS automation system allows us to control our safety systems and processes..Our safety infrastructure includes advanced firefighting systems and a collaborative fire hydrant water reserve (over 2,000 m3 capacity) with neighbouring chemical companies, enhancing overall safety and response capabilities.
Strong and consistent financial performance Aether Industries Limited, a leading specialty chemical manufacturer based in Surat, Gujarat, India, has demonstrated strong and consistent financial performance since its inception in 2013. The companys focus on advanced intermediates, contract manufacturing, and CRAMS (Contract Research and Manufacturing Services) has driven robust growth, underpinned by operational efficiency and strategic market positioning.
Key financial highlights
1. Revenue Growth: Aether has achieved significant revenue growth, with Fiscal Year 2025, total revenue Reaching 58,803.31 million, reflecting a compounded annual growth rate (CAGR) of 35% from FY19 to FY25. In Q4 FY25, consolidated revenue surged 90% year-on- year to 52,452.65 million, driven by strong demand in pharmaceuticals, agrochemicals, and oil and gas sectors.
2. Profitability: The company reported a consolidated net profit of 51584.18 million in FY25, a 92.05% increase from FY24, with Q4 FY25 net profit at 5502.98 million, up 3622.27% from a 514.28 million loss in Q4 FY24, due to operational recovery post a fire incident. EBITDA margins have remained healthy, ranging from 22-33% over recent years, with Q4 FY25 at 32%.
3. Operational Efficiency: Aethers operating profit margin reached a high of 32% in Q4 FY25, with EBITDA of 5768.05 million, up 2,606.31% year-on-year, reflecting improved cost management and production stability.
4. Strong Balance Sheet: Aether is nearly debt-free, with a low debt-to-equity ratio, enhancing financial stability. The company raised significant equity in recent years to fund capacity expansion, maintaining strong liquidity despite rising interest expenses in Q4 FY25 (551.32 million).
5. Cash Flow Improvement: Operating cash flow (OCF) improved to 51000.91 million in FY25 from -5164.58 million in FY24, indicating better cash conversion and financial health.
Strategic drivers
Aethers financial success is supported by its diversified customer base, serving over 34 global and 154 domestic companies, and its leadership in niche products like 4MEP and T2E. The companys pivot toward contract manufacturing, expected to contribute over 70% of revenue, aligns with high- margin opportunities with global MNCs like Baker Flughes and SEQENS. Investments in R&D (7-7.4% of revenue) and modern facilities in Surat further bolster its growth outlook.
Aether Industries Limiteds strong and consistent financial performance, characterized by robust revenue growth, high profitability, and a solid balance sheet, positions it as a resilient player in the specialty chemicals sector. Despite challenges like a past fire incident, the companys strategic focus on high-value contracts and innovation ensures sustained growth and financial stability.
Experienced Promoters and Senior Management with extensive domain knowledge
Our leadership comprises our Promoters: Managing Director Ashwin Jayantilal Desai, and Executive Directors Purnima Ashwin Desai, Rohan Ashwin Desai, and Dr. Aman Ashwin Desai, who collectively bring over 125 years of expertise in the chemical industry. Each Promoter is actively engaged in key areas such as R&D, process and plant engineering, finance, and marketing, and they oversee daily operations.
Additionally benefit from the industry experience of Kamalvijay Ramchandra Tulsian, Non-Executive Director, Chairman of our Board, bringing experience in the chemicals business; Jeevan Lai Nagori, Non- Executive Independent Director, bringing experience in the pharmaceutical business; Arun Brijmohan Kanodiya (qualified Chartered Accountant), Non-Executive Independent Director; Leja Satish Hattiangadi, Non- Executive Independent Director, bringing experience in project implementation; Ishita Surendra Manjrekar, Non-Executive Director bringing extensive knowledge about construction and related chemical industries; Dr. Amol Arvindrao Kulkarni, Non-Executive Independent Director, bringing extensive knowledge about continuous reaction technologies; Rajkumar Mangilal Borana, Non-Executive Independent Director; and Jitendra Popatlal Vakharia, Non-Executive Independent Director, bringing their experience in textile industry and chemical industry, respectively.
In February 2024, Dr. James (Jim) W. Ringer was appointed Chief Technology Officer, effective March 1, 2024. Dr. Ringer, who has been with Aether for three years as Business Development/Technology Leader (Americas), previously had a distinguished 30-year career at Dow Chemical Company and Corteva AgriScience, and holds 22 USA patents. Dr. James (Jim) W. Ringer is a dynamic leader recognized for creating innovation and personnel strategies. Demonstrated ability to generate significant value through building exceptional teamwork and organizational culture with strong personnel development, technical excellence, and project portfolio.
Our senior management team is also experienced in the chemicals industry. The majority of our management team have spent more than 5 years each with our Company. Our senior management personnel include career-technocrats such as Raymond Paul Roach and Dr. Norbert Fluggen.
Additionally, in June 2024, Dr. Ron Valente was appointed Business Development Leader (Speciality Polyols). Dr. Valente, with a PhD in Organic Chemistry from the University of Rochester, has over 20 years of experience with Eastman Kodak, Novomer, Inc., and Saudi Aramco.
The depth and breadth of our directors, management team, and Promoters equip us to be a leading specialty chemical manufacturer in India. Their combined experience helps us navigate market trends, manage operations, and enhance customer relationships.
Our (Aether Industries Limiteds) strengths
Our key business strategies are set forth below:
Leverage our strong position in the speciality chemicals industry to capitalize on industry opportunities
The global chemicals market is projected to grow at a CAGR of 6.2% from CY 2020 to CY 2025, while the Indian specialty chemicals market is expected to outpace it with a robust CAGR of 11.2%, according to Frost & Sullivan. This growth is fuelled by strong demand in key end-use segments such as pharmaceuticals, agrochemicals, and fertilizers, where consumption in India and other major global markets is rising significantly. For example, Indias agrochemicals and fertilizers sector is forecasted to expand from $32.9 billion in CY 2020 to $53.3 billion by CY 2025, and the pharmaceuticals specialty chemicals segment is projected to grow from $16.6 billion to $28.5 billion over the same period.
In contrast, Chinas specialty chemicals sector has faced headwinds due to stringent environmental regulations, leading to plant closures and elevated operating costs. These challenges have increased production costs in China, creating a strategic opportunity for Indian manufacturers to capture a larger share of the global supply chain by offering cost- competitive alternatives.
Aether Industries Limited is well-positioned to capitalize on these market dynamics, leveraging its leadership in high-value specialty chemicals and advanced
intermediates. The companys revenue growth for key products, such as 4MEP and T2E, has surpassed industry averages, reflecting its success in gaining market share, particularly from Chinese competitors. As of Q4 FY25, Aether reported a 104.36% year-on-year revenue increase to 5240.19 Cr, driven by strong demand and strategic contract manufacturing partnerships with global leaders like Baker Hughes, Saudi Aramco, Novoloop and SEQENS.
To sustain this momentum, Aether is pursuing a multifaceted growth strategy, including:
1. New Product Development: Introducing innovative, high-margin specialty chemicals to meet evolving market needs.
2. R&D Enhancement: Investing 6-6.5% of revenue in R&D to drive process innovation and product differentiation.
3. Strategic Acquisitions: Exploring opportunities to expand capabilities and market reach.
4. Capacity Expansion: Commissioning new facilities, such as Site-4 for Baker Hughes, to scale production from kilograms to thousands of metric tonnes.
5. Global Expansion: Strengthening international presence through advisors, participation in global events, and local representatives in key markets like Japan, Europe, and the US, which accounted for over 39.49% of FY25 revenue from operations.
Despite competitive pressures from Chinese manufacturers benefiting from government incentives and currency depreciation, Aethers focus on high- growth sectors, sustainable solutions like C02-based polyols, and operational excellence ensures its resilience. With a nearly debt-free balance sheet, robust EBITDA margins of 22-32%, and a projected shift toward contract manufacturing contributing over 70% of revenue, Aether is poised to maintain its competitive edge and capitalize on the evolving global specialty chemicals landscape through CY 2025 and beyond.
Expand Manufacturing, R&D and Pilot Plant Capacities
To address the growing demand from existing and new customers, we are expanding our manufacturing capacities across various sectors, including Pharma, Agro, Oil & Gas, Material Sciences, Renewables & Sustainability, and Electric Vehicles. We are also scaling up facilities for our new product lines currently under development and commercialization.
In January 2023, we began operations at a new facility at our third site near Sachin, which is dedicated to producing specialty chemicals and intermediates for pharmaceuticals, agrochemicals, and material sciences. This facility was utilized at approximately 60% capacity in Fiscal Year 2025.
In March 2024, we launched Manufacturing Facility 4 through our wholly owned subsidiary, Aether Speciality Chemicals Limited, which will provide a 7% income tax benefit. This facility is tailored to manufacture eight products under the Contract/Exclusive Manufacturing (c/E m) model for Baker Hughes.
Additionally, in Fiscal Year 2022, we acquired over 125,000 square meters of land at Panoli GIDC, Bharuch District, Gujarat for future expansion. We received regulatory approvals in Fiscal Year 2024 and have begun the first phase of development. We had also acquired additional land near Manufacturing Facility 3 for further expansion, completed in June 2023. Manufacturing Facility 3+/3++ is dedicated to Milliken Group and expected to be operational by the end of Fiscal Year 2026, with the first phase of Manufacturing Facility 5 scheduled to come online by the end Q3 of Fiscal Year 2026.
We have further, in Fiscal Year 2025, procured additional land adjacent to Manufacturing Facility 5, ad measuring
60,000 square meters, which now makes the entire Manufacturing Facility 5, a 46 acres land premise. This will be used for future expansion with lots of new customers and products expected to come in.
We are also forming strategic alliances with innovator companies across various end-user industries. These partnerships are anticipated to evolve from CRAMS projects into strategic commercial manufacturing ventures, potentially necessitating additional manufacturing capacity.
In Fiscal Year 2024, we expanded our R&D laboratories by increasing the number of fume hoods to 55, with new facilities dedicated to organic synthesis. Our R&D center has undergone a significant upgrade, including new laboratory furniture, FIVAC systems, and a complete architectural redesign. It now features a library, scientist lounges, cafeteria, coffee house, modern offices, conference rooms, gymnasium, and outdoor meeting areas.
Furthermore, we have tripled the capacity of our Pilot Plant by installing additional pilot-scale equipment. The expanded plant includes state-of-the-art reaction technology, advanced instrumentation, engineering, and safety systems, all automated via a DCS platform. The facility now boasts 26 reactors ranging from 250 L to 4000 L, supported by 16 best-in-class utility equipment. A Siemens PCS7 DCS platform operates in a hot redundant configuration, with comprehensive fire safety measures including fire curtains, water sprinklers, foam monitors, and a robust pump and water reservoir system.
Further, the R&D and Pilot Plant facilities were on leased lands, which we have outright purchased from the Directors HUF and Directors wife and now the lands are owned by the Company. We have also procured an adjacent plot of land, which now makes this R&D and Pilot Plant Unit (Manufacturing Facility l), 10,500 square meter area.
Continue to strengthen our presence in India and expand our sales and distribution network in international markets
As of March 31, 2025, our diverse product portfolio serves over 50 global clients across 19 countries and more than 220 domestic customers. We maintain enduring relationships with eight of our top ten clients for over five years, reflecting our status as a preferred supplier, particularly compared to our competitors primarily based in China. This longstanding client loyalty, evidenced by repeat and increased orders, underscores our competitive edge.
Our dedicated international sales and marketing team is pivotal in managing new orders, rate quotations, and understanding client needs. This team comprises seasoned industry professionals: Raymond Paul Roach (Business Development Leader - Americas), Dr. James Ringer (Chief Technology Officer), Dr. Norbert Fluggen (Business Development Leader - Europe), and Dr. Ron Valente (Business Development Leader - Speciality Polyols). Our business development and marketing efforts are strategically conducted across three continents?Asia/lndia, Europe/Germany, and North America/USA?ensuring robust market presence.
We are committed to enhancing our share of business with existing customers through strategic initiatives aimed at cross-selling our diverse product range. Additionally, we plan to leverage our established sales and marketing network and industry reputation to forge new relationships with multinational, regional, and local clients.
Our global expansion strategy focuses on serving current end-use clients and attracting new ones, thereby broadening our market reach. We are reinforcing our global presence by strengthening sales and marketing teams, particularly in North America, South America, and Europe. This includes increasing our stock points worldwide to ensure prompt product delivery and responsiveness to market demands.
Continue to focus on contract manufacturing / exclusive manufacturing by developing innovative processes and value engineering
We aim to transform R&D (CRAMS) opportunities into large-scale contract manufacturing projects by leveraging our expertise in value engineering, innovative process development, and core competency chemistries. By offering unique value propositions, we seek to secure long-term contracts with customers that ensure consistent product off-take and improved margins, thereby enhancing our profitability. Our strategy involves differentiating our operations from other CRAMS providers by developing proprietary, innovative processes, which affords us better pricing leverage with clients.
We are committed to advancing in-house innovations for complex chemistries, including glove box chemistries, Nobel Prize-winning metathesis chemistry, and organo-silicon chemistry. Additionally, we continuously assess which of our existing products or processes can be further innovated to add value.
We also aim to deepen our existing customer relationships by undertaking CRAMS projects for new molecules. Our focus on value engineering allows us to extend our process and chemistry expertise into new value chains, replacing lower-value products with higher-value alternatives. By leveraging our established relationships and repeat orders, we intend to capitalize on significant cross-selling opportunities for high-value products. Our strategy includes emphasizing early-stage process innovation and development to capture the complete lifecycle of these products, positioning ourselves as initial suppliers of specialized chemicals and strengthening our partnerships with multinational corporations.
Growth through strategic acquisitions and alliances We will look for strategic acquisition targets in the United States and the EU for R&D and manufacturing assets that are in line with our existing or desired competencies. We also will look for opportunities to acquire businesses to add additional chemistry or technology competencies (for example, photochemistry) or to add business segments where we are currently not present (for example, cytotoxic compounds, advanced silicone products or active pharmaceutical ingredients and formulations). We are focused on identifying acquisition targets that will benefit from our management expertise, our core competencies and the scale of our operations.
Our Products and Services Our business is structured around three distinct models: (i) Large-Scale Manufacturing (LSM) of our proprietary specialty chemicals and intermediates, (ii) Contract Research and Manufacturing Services (CRAMS), and (iii) Contract and Exclusive Manufacturing (c/E m).
Speciality Chemicals and Intermediates
We specialize in specialty chemicals and advanced intermediates through a sophisticated integration of complex chemistry and technological core competencies. Our chemistry expertise encompasses areas such as Grignard reactions, organolithium and other organometallic chemistry, ethylene oxide and isobutylene chemistry, hydrogenation, catalysis (both homogeneous and heterogeneous), cross-coupling chemistry, and metathesis/polymerization chemistry.
Our technological proficiencies include continuous reaction technology, high-pressure reaction technology, fixed-bed reaction technology, DCS process automation, and high-vacuum distillation technology (wiped film/short path).
By concentrating on these core competencies, we have crafted a sales vision oriented around chemistry and technology rather than specific products or industries. This approach not only differentiates us but also mitigates risks, as our strategy and R&D efforts are not confined to any particular product, customer, region, or industry.
Our product selection process is both simple and rigorous. We focus on products that align with our core competencies and meet several criteria: (i) the product should be infrastructure-oriented and belong to a specialty chemical field with a minimum of four synthetic steps; (ii) it should not be actively produced by any company in India; (iii) it should offer substantial revenue potential upon maturity; and (iv) we should be able to achieve a market-leading position at its maturity. Products that meet these criteria undergo R&D, are scaled up in our Pilot Plant, validated, and then commercialized.
As of March 31, 2025, our portfolio includes over 29 products, all developed and brought to market using these stringent criteria over the 11 years since our inception. Our advanced intermediates and specialty chemicals bridge the gap between commodity chemicals and final actives and formulations. They are utilized across various therapeutic areas in the pharmaceutical industry, including hypertension, antiplatelet, anti-psychotic, anti-histamine, and nonsteroidal anti-inflammatory drugs (NSAIDs).
Additionally, our products serve multiple industries such as agrochemicals, material science, coatings, high-performance photography, additives, renewables & sustainability and oil & gas.
Customer segments
The table set forth below provides customer segment split of revenue from operations and as a percentage of revenue from operations in Fiscal Year 2025 and Fiscal Year 2024:
| Customer | Fiscal Year 2025 | Fiscal Year 2024 | ||
| Segment | 5 MM | % of | 5 MM | % of |
| Pharma | 53,824.53 | 45.60% | 53,038.54 | 50.80% |
| Agro | 51,775.32 | 21.17% | 51,629.51 | 27.24% |
| Material Sciences | 5959.51 | 11.44% | 5473.00 | 7.91% |
| Multiple | 5546.11 | 6.51% | 5208.14 | 3.48% |
| Oil & Gas | 5501.19 | 5.98% | 593.07 | 1.56% |
| Coatings | 5313.30 | 3.74% | 5288.19 | 4.82% |
| High Perf. Photography | 5279.68 | 3.33% | 5222.94 | 3.73% |
| Food Additives | 598.92 | 1.18% | 528.33 | 0.47% |
| Sustainability & Renewables | 588.33 | 1.05% | 50.00 | 0.00% |
Total |
58,386.90 | 100.00% | 55,981.73 | 100.00% |
Contract Research and Manufacturing Services (CRAMS)
Our facilities employ advanced technologies and systems such as:
a. Contract research;
b. Pilot scale-up services;
c. Contract manufacturing;
d. Full time equivalent (FTE) services, where one or more
e. of our employees work full time on the project;
f. Technology development; and
g. Process development and optimisation
Our CRAMS customers work jointly with our scientists and engineers, and we execute their projects in our R&D Facilities, analytical sciences laboratories, and our Pilot Plant. Molecules developed in our CRAMS business for our customers have the potential to convert into regular commercial supplies and become large scale manufacturing products for our Company. In Fiscal Year 2025, CRAMS accounted for 12.25% (13.82% in Fiscal Year 2024) of our revenue from operations.
Contract Manufacturing / Exclusive Manufacturing
We also manufacture our customers products under a contractual supply agreement based model. These customer contracts are both short-term and longterm and involve both exclusive and non-exclusive arrangements. In the Fiscal Year 2025 and Fiscal Year 2024, revenues from our contract manufacturing business constituted 31.36% and 25.65%, respectively, of our revenue from operations.
Our Customers
Our customer base comprises over 280 multinational, global, regional, and local companies. As of March 31,
2025, our products are supplied to more than 50 global customers across 19 countries and over 210 domestic customers. This diverse clientele includes a distinguished array of leading domestic and international multinational firms.
We maintain several supply contracts with durations ranging from three to five years, structured around formula-based pricing mechanisms. These contracts may be terminated either upon their expiration or through notice provided by the customer. Such terminations are typically negotiated mutually between us and our customers. Nevertheless, the termination of supply contracts could have potential adverse effects on our business, financial health, and operational outcomes.
For other customers, we rely on purchase orders to manage the volume and terms of our product sales. These purchase orders often outline unit prices and delivery schedules. Flowever, amendments or cancellations of these orders before finalization could disrupt our production schedules and impact inventory levels.
Exports
We export our products to 19 countries, with notable markets including Italy, Spain, Germany, the United States, and the Netherlands, among others. In Fiscal Year 2025 and Fiscal Year 2024, export sales (excluding deemed exports) accounted for 43.42% and 41.76% of our revenue from operations, respectively.
Our export revenues are predominantly in foreign currencies, primarily U.S. Dollars. Consequently, fluctuations in exchange rates can influence the reported value of our sales in Indian Rupees on our financial statements. Although we hedge a minimal portion of our net foreign exchange position, we remain susceptible to variations in exchange rates between the U.S. Dollar and the Indian Rupee.
Geographic Split of Revenue from Operations
The table set forth below provides geographic split of revenue from operations and as a percentage of revenue from operations in the Fiscal Year 2025 and Fiscal Year 2024:
| Country | Fiscal Year 2025 | Fiscal Year 2024 | ||
| 5 MM | % of | 5 MM | % of | |
| India (incl. | 54,737.30 | 56.48% | 53,483.62 | 58.24% |
| India (SEZ) | 5337.61 | 4.03% | 5347.59 | 5.81% |
| Mexico | 5880.07 | 10.49% | 557.53 | 0.96% |
| USA | 5570.90 | 6.81% | 5342.98 | 5.73% |
| Germany | 5530.38 | 6.32% | 5432.86 | 7.24% |
| Spain | 5385.94 | 4.60% | 5232.41 | 3.89% |
| Japan | 5198.84 | 2.37% | 5210.49 | 3.52% |
| Italy | 5148.22 | 1.77% | 5644.75 | 10.78% |
| Switzerland | 5135.29 | 1.61% | 56.56 | 0.11% |
| China | 5133.15 | 1.59% | 544.91 | 0.75% |
| Netherlands | 565.25 | 0.78% | 555.76 | 0.93% |
| UK | 553.48 | 0.64% | 59.11 | 0.15% |
| Czech Republic Central | 550.48 | 0.60% | 50.00 | 0.00% |
| African Republic Belgium | 548.46 527.75 | 0.58% 0.33% | 50.00 50.14 | 0.00% 0.00% |
| Israel | 527.55 | 0.33% | 558.45 | 0.98% |
| France | 521.80 | 0.26% | 51.03 | 0.02% |
| Sweden | 512.59 | 0.15% | 512.76 | 0.21% |
| Taiwan | 512.29 | 0.15% | 54.00 | 0.07% |
| Romania | 57.44 | 0.09% | 514.94 | 0.25% |
| Hungary | 52.11 | 0.03% | 521.83 | 0.36% |
Total |
58,386.90 | 100.00% | 55,981.72 | 100.00% |
Note
"Deemed Exports" refer to those transactions in which the goods supplied do not leave the country, and the payment for such supplies is received either in Indian rupees or in free foreign exchange. We have started business in one new country in Fiscal Year 2024, Hungary, which depicts the growth of Companys business geographically.
Automation
Our manufacturing facilities utilize DCS that use geographically distributed control loops throughout our facilities to control our systems and processes to increase their safety, cost-effectiveness and reliability. Our Pilot Plant and CRAMS operations use a Siemens PCS7 DCS and our manufacturing facilities use a Yokogawa Centum VP DCS.
Manufacturing Process
Our facilities have been meticulously designed and developed around a chemistry and technology-centric model, where each product is strategically allocated to a specific production stream. This approach grants us the agility to switch from one product to another seamlessly, without any gestation period and with minimal costs. The flexible design of our plants allows us to operate multiple streams within our intermediate product buildings, thereby mitigating contagion risks and ensuring consistent fulfilment of product demand.
All our manufacturing units are multipurpose plants with the capability to handle multiple streams, accommodating the broad range of products in our portfolio. We do not have dedicated plants or streams; instead, each stream is versatile enough to be utilized for various products, providing the flexibility to swiftly adapt the production mix in response to shifting demand. Every product is the outcome of a combination of specialized chemistries and processes tailored to achieve the desired results.
Chemistries that we use
Our products can be broadly classified under eight different chemistry bifurcations:
1. Grignards and Organolithiations
2. Ethylene Oxide Chemistry / Tandem Grignard /
3. Ethylene Oxide Isobutylene Chemistry
4. Hydrogenation / catalysis chemistry
5. Heterogeneous Catalysis
6. Exothermic Chemistry
7. Cross Coupling Chemistry
8. Olefin Metathesis / Polymerisation
The raw materials are charged continuously / batch- wise in reactors of suitable capacity and design based on the type of reaction. Other technical parameters such as temperature, pressure and reaction time are maintained based on type of reaction to be carried out.
When the reaction is complete, the product is analyzed and subjected to further processing, which includes filtration, continuous/ batch distillations, purification processes to get the required quality product. The product is ultimately tested to ensure it meets the applicable specifications before it is supplied to the customer
Research & Development (R&D)
The cornerstone of our company lies in our in-house research and development, a key driver of our success and a significant differentiator in achieving leading market positions for select products.
Over the years, our deep technical expertise has enabled us to execute innovative processes on a global scale, creating substantial barriers for potential competitors and making replication exceedingly difficult.
Our dedicated R&D facilities and Pilot Plant, located at Manufacturing Facility 1 in Sachin, are at the heart of our operations. Every one of our products has been meticulously developed by our in-house R&D team, scaled up in our Pilot Plant, and transitioned into production with in-house design and engineering. This independent innovation (without external R&D support) underscores our research capabilities. Our core competencies in chemistry include Grignards, organolithium and other organometallic chemistry, ethylene oxide and isobutylene chemistry, hydrogenation, catalysis (homogeneous/ heterogeneous), cross-coupling chemistry, and metathesis/polymerization chemistry. Our technology competencies encompass continuous reaction technology, high-pressure reaction technology, fixed- bed reaction technology, DCS process automation, and high vacuum distillation technology (wiped film/ short path).
Our R&D facilities are dedicated to both the development of our own pipeline and next-generation products, as well as serving our CRAMS clients. As of March 31, 2025, our specialized R&D team comprised 287 (March 31, 2024: 276) scientists and engineers, including 143 (March 31, 2024:148) with PhDs or Masters degrees, and 141 (March 31, 2024:1228 chemical engineers. To further enhance our R&D capabilities, we continuously recruit and appoint scientists with diverse experience and expertise, aligning with our strategy of early identification of development and manufacturing opportunities.
Our R&D laboratories are outfitted with modern synthesis equipment, including fume hoods, lab-scale continuous and flow reactors, and advanced separation tools. These labs are supported by state- of-the-art analytical method development (ADL) and quality control (QC) laboratories, equipped with essential instruments for advanced organic chemistry research, such as Liquid Chromatography Mass Spectrometry, Gas Chromatography Mass Spectrometry, and High-Pressure Liquid Chromatography, among others.
Our R&D facilities focus on process development, innovation, new chemical screening, and engineering, enabling us to drive efficiencies from the initial conceptualization to the commercialization of a product. Our R&D team has successfully executed multi-step synthesis and scale-up for several new molecules in specialty chemicals and intermediates, significantly expanding our commercialized product portfolio. In Fiscal Year 2023, we had tripled our R&D capacity by increasing the number of fume hoods to 55. We have recently procured an additional land adjacent to our current R&D and Pilot Plant Unit, along with the ownership taken of the current land bank of the R&D and Pilot Plant Unit. The additional land would be utilised for the expansion of the Research & Development unit, where in the number of Fume Hoods, will be approximately tripled.
We also maintain strong collaborations with numerous universities and research institutions across India, including the National Chemical Laboratory (NCL,
Pune), the Institute of Chemical Technology (iCT, Mumbai), Uka Tarsadia University (UTU, Bardoli), and
Sardar Vallabhbhai National Institute of Technology (SVNIT, Surat). Our sponsored PhD programs, conducted in partnership with these institutions, further strengthen our R&D capabilities.
Our R&D facilities are recognized by the Department of Scientific & Industrial Research (DSIR), New Delhi, for in- house R&D excellence.
In addition, we have expanded our R&D laboratories by adding more fume hoods, creating four new organic synthesis labs on a separate floor, fully equipped with modern amenities. The architectural and interior design of our R&D facilities has undergone a complete transformation, evolving into a world-class center featuring a library, scientist lounges, a cafeteria, a coffee house for scientists, modern offices, conference rooms, a gymnasium, and outdoor meeting areas. As part of this expansion, we have recruited additional R&D scientists and engineers, focusing on those with PhDs or Masters degrees.
Pilot Plant
We have a state-of-art Pilot Plant, which is a vital link between R&D and large scale production. Our Pilot Plant has a dual functionality; it functions to generate critical scale-up data in the transition from R&D to production to help eliminate issues at full production scale; and it also functions as a stand-alone manufacturing facility for low volume, high value products for our CRAMS customers Our Pilot Plant encompasses a wide range of reactor and downstream equipment, in both continuous and batch regimes, across the entire range of scale-up volumes, metallurgy, and process parameters and is automated through DCS process automation. We have tripled our Pilot Plant facility in the Fiscal Year 2023, by increasing the number of reactors.
Furthermore, our Pilot Plant has been significantly expanded with the installation of additional pilot-scale equipment, tripling its current capacity. The upgraded plant features cutting-edge reaction technology in both batch and continuous regimes, world-class instrumentation, engineering and safety systems, all fully automated with DCS process automation.
Upcoming expansions
In March 2024, the Manufacturing Facility 4 has been commissioned and production started in our 100% Wholly Owned Subsidiary - Aether Speciality Chemicals Limited, which will help us save Income Tax by 7% (basic rate). This facility is currently equipped specifically for 6 Products to be manufactured under Contract / Exclusive Manufacturing (c/E m) model for Baker Plughes.
We have also in Fiscal Year 2022, procured plot of land at Panoli GIDC, Bharuch District, Gujarat, which is approximately 1,25,000 plus Sq. Mtrs. and will be utilised for future expansion by the Company. During the Fiscal Year 2024, we have received the regulatory and other approvals for the expansion of this site and first phase work has started. We have in Fiscal Year 2025, procured one more plot of land, adjacent to the Manufacturing Facility 5, making it a 46 acres land all plots of lands put together. The first phase expansion of the Manufacturing Facility 5, has been started from July 2023, where in the total cost of the first phase is estimated to be Rs. 500 Crores. The first two production blocks, some common utilities and raw material warehouse is expected to be operational by end of Q3 of Fiscal Year 2025 and then on every six months, we expect, two production blocks to be commissioned.
We have also procured extra lands near the Manufacturing Facility 3, which we term as 3+/3++ and the same will be used for the expansion at Manufacturing Facility 3.
The Manufacturing Facility 3+/3++ is expected to be online and working by end of Fiscal Year 2026 and it is dedicated to a marque customer, Milliken for their next generation of products, where in Aether Industries shall be the sole manufacturer of their product, for 10 years, contract signed.
Raw Material
The raw materials utilized in our manufacturing processes are predominantly sourced from third-party suppliers both globally and within India.
In Fiscal Year 2025, our cost of goods sold (which includes the cost of materials consumed and changes in inventories of finished goods and work-in-progress) amounted to 54,465.84 MM (Fiscal Year 2024: 53,209.17 MM), with the cost of materials consumed representing 60.48% of our revenue from operations (Fiscal Year 2024: 63.09%). Our raw materials encompass crude oil derivatives such as phenol, as well as other essential commodities including hydrogen, ethylene oxide, and isobutylene gas. Key raw materials also include chlorobenzonitrile, methanol, toluene, methylene dichloride, tetrahydrofuran, dichlorotoluene, and thiophene, among others.
The pricing of our raw materials is generally based on or linked to international market prices, and fluctuations are typically passed on to our customers. We do not typically engage in long-term supply contracts with our raw material suppliers; instead, we source these materials through shorter-term contracts or from the open market. The prices of our key raw materials have been volatile on a global scale, and increases in these prices directly impact our production costs.
During Fiscal Year 2025, we observed that the raw material prices, have been more or less the stagnant and not much of reduction or increase is noticed.
Inventory Management
Our finished products are stored on-site at our manufacturing facilities, while raw materials are housed in nearby warehouses procured by the Company on leased premises. Ready-to-use raw materials for production are stored in on-site warehouses. To mitigate the risk of raw material price fluctuations, we typically maintain at least five months of inventory across raw materials, work-in-progress, and recoveries. Specifically, we hold 15 to 30 days of inventory in Work-in-Progress (semi-finished goods), and we maintain minimal inventory of finished goods due to the demand-driven nature of our production process. We usually manufacture finished goods based on orders received, ensuring that they are not held in inventory for more than a week.
We employ a lead-time material requirement planning system and utilize ERP software to manage our inventory levels in real-time. As of March 31, 2024, our inventory in work-in-progress had increased to over 210 days due to the fire accident at Manufacturing Facility 2, which led to its closure for several months. Partial operations resumed in January 2024, and production restarted in February 2024, leading to an increase in work-in-progress as we prioritized manufacturing key products. We have been able to bring down the inventory levels to 173 days as on March 31, 2025, which was 210 days as on March 31, 2024. We further are inclined to manage the same in more efficient way to reduce the days of inventory more.
Sales and Marketing
Our business primarily operates on a business-to- business model, with a strong emphasis on maintaining continuous engagement with customers and ensuring timely deliveries. Additionally, we have an exclusive distributor for the Telangana region of India. Our sales, marketing, and business development teams are dedicated to securing new orders, providing accurate pricing, and thoroughly understanding customer needs. These teams are led by industry veterans, including Dr. James Ringer (Chief Technology Officer), Raymond Paul Roach (Business Development Leader - Americas), and Dr. Norbert Fluggen (Business Development Leader - Europe).
We actively participate in prominent trade shows and exhibitions, such as CPHI in India, Europe, Japan, China, and the USA; Chemical Outsourcing in the USA; and Chemspec in India and Europe. Furthermore, our sales team members are frequently invited to speak at various industry forums, showcasing our expertise and thought leadership.
To better serve our existing direct end-use customers, acquire new ones, and extend our product reach into new markets, we are pursuing a global expansion strategy. This includes the establishment of dedicated teams focused on business development in key international markets, particularly in Europe and the Americas.
Our strategic priorities include increasing the number of global stock points and strengthening our sales teams in India, the Americas, and Europe to ensure timely product delivery and enhanced customer service.
Information Technology
Our IT systems are critical to the seamless operation of our business, and we have implemented comprehensive IT policies to support our operations effectively. Our IT teams primary responsibilities include establishing and maintaining enterprise information systems, delivering infrastructure services to meet our business needs, and ensuring the security of our enterprise operations.
We leverage SAP, an enterprise resource planning (ERP) solution, which supports a wide array of business functions, including sales distribution, materials management, warehouse management, production planning, quality management, plant maintenance, finance and controlling, environment, health and safety, and human resources across all our offices, R&D facilities, and manufacturing plants.
Our information security strategy is focused on protecting data and assuring our customers of the security of their intellectual property (IP). To this end, we have implemented a robust data management facility, access restriction systems, and other advanced security measures.
We are committed to maintaining confidentiality, ensuring the integrity and availability of all physical and electronic information assets across our facilities, and meeting legal, regulatory, and operational requirements.
We believe our disaster recovery, business continuity, and backup policies are strong and effective. We employ a VMware Virtualisation System in redundant mode, with centralized storage and thin client systems, alongside a redundant firewall. All users access our systems exclusively through VPN, and for data security, we utilize a Remote Desktop Protocol (RDP) system with thin clients.
In Fiscal Year 2024, we initiated the implementation of SAP S/4HANA, an advanced version of our current SAP- B1 system. We anticipate this new system will go live in the second half of FY26, enhancing our day-to-day operations and facilitating the integration of various departmental workflows.
Risk Management
We believe that risk management is an integral part of our operations. We believe that it is essential to identify and manage risks in order to reduce uncertainties and ensure continuity of business. We have a risk management framework and risk management team that implements the processes specified in the framework.
We aim to provide a high degree of safety to our employees, especially at our factories where chemical processes are executed. We undertake regular inspection of our machineries and also undertake periodic maintenance checks on other equipment in order to ensure they meet safety requirements.
Insurance
We maintain comprehensive insurance coverage that we deem essential for the protection of our business operations. Our insurance portfolio includes a policy that provides coverage against material damage to buildings, facilities, machinery, furniture, fixtures, fittings, stocks, and machinery breakdown. Additionally, we hold a cargo insurance policy that covers consignments of goods during transit by sea, air, and courier services, extending until delivery to the customers warehouse, as well as inland bulk cargo movement via road tanker.
Moreover, we maintain a commercial general liability insurance policy that safeguards against liabilities arising from bodily injury (including medical payments), property damage, and personal and advertising injury claims. To address specific IT and system-related risks, we have secured a cyber insurance policy. We also offer our employees COVID-19 insurance, covering pre- and posthospitalization expenses and emergency road ambulance costs. For our Directors and Senior Management, we have a Directors and Officers liability insurance policy, and for our employees, we provide Group Medical Insurance, Group Term Insurance, and Group Personal Accident coverage.
During Fiscal Year 2024, a fire incident occurred at our Manufacturing Facility 2, resulting in the complete destruction of Plant 2 and its Tank Farms, as well as minor damage to Plant 1 and other parts of the facility.
The damages sustained to plants, machinery, equipment, furniture, stocks, and the resulting loss of profit are comprehensively covered under our Industrial All Risk (lAR) Insurance Policy. We have submitted a total claim of approximately 51,000 MM, which has been accepted by our insurer, IFFCO Tokio General Insurance Company. During the Fiscal Year 2025, we have received 5210 MM as on account payment from the Insurance Company towards the loss of assets and 5130 MM approximately towards the loss of stocks. The assessment for the Business Interruption (FLOP) is under process as on March 31, 2025 and we are hopeful that the FLOP and remaining claim for the loss of assets would be cleared and received by us in Fiscal Year 2026.
Competition
The speciality chemicals industry presents significant entry barriers, including customer validation and approvals, expectation from customers for process innovation and cost reduction, high quality standards and stringent specifications. Our competition varies by market, geographic areas and type of product. As a result, to remain competitive in our markets, we must continuously strive to reduce our costs of production, transportation and distribution and improve our operating efficiencies. We face competition primarily from international manufacturers especially Chinese companies. We compete primarily on the basis of product quality, technology, cost, delivery and service, as well as quality and depth of senior level relationships.
Human Resources
We place significant emphasis on the development of our human resources. As of March 31, 2025, our workforce comprised 987 employees (excluding trainees), compared to 954 as of March 31, 2024, along with 224 contract workers and trainees. The strategic blend of full-time employees and contract personnel allows us the flexibility to operate our business efficiently. During Fiscal Year 2025, our attrition rate was 1.57%. In contrast, our attrition rate in Fiscal Year 2024: 3.97%, primarily influenced by the fire incident at Manufacturing Facility 2, which led to the departure of several employees. The average age of our workforce as of March 31, 2025, was 29 years.
As of the same date, we employed 145 scientists holding either a PhD or Master of Science degree (constituting 14.69% of our workforce). Additionally, we had 141 chemical engineers, representing 14.29% of our workforce, as of March 31, 2023.
Our employees are not affiliated with any unions, and we have not encountered any significant work stoppages due to labor disputes or cessation of work over the past three years.
Our workforce plays a pivotal role in maintaining our standards of quality, productivity, and safety, which in turn bolsters our competitive advantage. The following table provides details of our employee count as of March 31, 2025:
| Departments /Teams | Fiscal Year |
| Management and administration | 4 |
| Fluman Resource (HR) & Admin | 33 |
| Computer Information System (CIS) | 14 |
| Finance & Accounts | 14 |
| Logistics & EXIM | 14 |
| Procurement | 4 |
| Sales & Business Development | 5 |
| Stores / Warehouse | 63 |
| Quality Control / Analytical Lab / Quality Assurance (CQ/ADL/QA) | 68 |
| Research & Development (R&D) | 113 |
| Control & Instrumentation (c&l) | 39 |
| Environment Health & Safety (EHS) | 47 |
| Departments /Teams | Fiscal Year |
| Effluent Treatment (ETP) | 53 |
| Maintenance | 140 |
| Electrical | 48 |
| Production | 311 |
| Process & Project | 11 |
| Creative Team | 6 |
Total |
987.00 |
Our goal is to cultivate a culture grounded in fairness and respect, ensuring adherence to our Code of Conduct while safeguarding employees against discrimination, harassment, and retaliation. We are committed to regularly evaluating and enhancing our human resource initiatives to make them more inclusive, engaging, and focused on skill development. We place a strong emphasis on fostering and maintaining a superior organizational climate centered on human performance. Additionally, we provide our employees with a broad array of training opportunities and have established a comprehensive learning and development policy to support these training initiatives.
Intellectual Property
We have applied for various trademark registration for our corporate logo under various classes of the Trademark Act, 1999, and Trade Rules, 2002, before the Registrar of Trademarks. The application has been made in the name of the Company.We also have registered the domain names aether.co.in, which is renewable periodically. We also rely on a combination of trade secret, and copyright law and contractual restrictions to protect We do not own any patents. We have agreements with our employees and consultants which include confidentiality provisions and provisions on ownership of intellectual property developed during employment or specific assignments, as applicable.
We have applied for various trademarks, copyrights for our logo, trade name, and punch line, wherein 46 of such trademarks are already approved.
Awards and recognition
Our Company has received the following key awards, accreditation and recognition:
| Year | Certifications / Accreditations / Awards |
| 2015 | Awarded with ISO 9001:2015 (Manufacturing Facility 1 - Hojiwala Unit) |
| 2017 | Awarded with ISO 9001:2015 |
| 2017 | Awarded with GMP - (iCH Q7 Revision l) |
| 2018 | Awarded with ISO 14001:2015 |
| 2021 | Awarded with ISO 27001:2013 |
| 2021 | Awarded with ISO 45001:2018 |
| 2022 | Silver rating from EcoVadis (Sustainability Rating) |
| 2022 | Membership to UN Global Compact (Network India) |
| 2023 | Membership of Indian Chemical Council (ICC) Award from Dun & Bradstreet / SBI Business |
| 2024 | Enterprise of tomorrow for Champions of the Year under Atmanirbhar Abhiyan Award from Dun & Bradstreet / SBI Business |
| 2024 | Enterprise of tomorrow for Chemicals & Pharma (Mid-Corporate) |
| 2024 2024 | Awarded with ISO 9001: 2015 - 8202 site Awarded with ISO 14001:2015 & ISO 45001: 2018 - Hojiwala site |
Principal Factors affecting our Results of Operations
Our financial performance and results of operations are influenced by a variety of factors, including without limitation, global and domestic competition, conditions in the markets of our end-user products, general economic conditions, changes in costs of raw materials and government regulations and policies.
Raw materials price fluctuations and availability
Our cost of goods sold, which encompasses the cost of materials consumed and changes in inventories of finished goods and work-in-progress, constitutes a significant portion of our operating expenses. In Fiscal Year 2025, our cost of goods sold amounted to 54,465.84 MM (Fiscal Year 2024: 53,209.17 MM), representing 53.25% of our revenue from operations (Fiscal Year 2023: 53.65%). We primarily procure raw materials from third-party suppliers, including imports. These materials include crude oil derivatives, such as phenol, and other key commodities like hydrogen, ethylene oxide, and isobutylene gas. Additional critical raw materials include chlorobenzonitrile, methanol, toluene, methylene dichloride, tetrahydrofuran, dichlorotoluene, and thiophene, among others.
Typically, we do not engage in long-term supply contracts with our raw material suppliers; instead, we source materials through shorter-term contracts or on the open market. The prices of our key raw materials are generally linked to international markets and have exhibited volatility, which can impact our production costs. While fluctuations in crude oil prices may influence our revenues, our profitability tends to be less affected as these price variations are usually passed on to our customers.
In Fiscal Year 2025, our cost of materials as a percentage of revenue from operations reduced very marginally, primarily due to reduced raw material prices.
Foreign exchange rate risk Our financial statements are prepared in Indian Rupees. However, a significant portion of our revenue from exports and raw material expenditures are denominated in foreign currencies, predominantly the U.S. Dollar. As a result, we are exposed to currency fluctuations related to transactions in currencies other than Indian Rupees, especially the U.S. Dollar.
In Fiscal Year 2025, 43.42% of our revenue from operations was derived from exports (excluding Deemed Exports), compared to 41.76% in Fiscal Year
2024. Our net foreign currency-denominated sales (calculated as sales in foreign currency minus expenses related to these sales, excluding Deemed Exports) totalled 52,367.19 MM in Fiscal Year 2025, down from 52,498.16 MM in the previous fiscal year. Additionally, 9.97% of our raw materials were imported in Fiscal Year
2025, a decrease from 24.57% in Fiscal Year 2024. This reduction is largely due to a strategic buildup of inventory in response to falling international prices and increased availability of raw materials domestically.
Exchange rate fluctuations also impact our ability to meet debt obligations denominated in foreign currencies, such as our Packing Credit Loans in Foreign Currencies. We do not engage in hedging activities to mitigate our foreign currency exposure. Consequently, we are subject to fluctuations in exchange rates among the U.S. Dollar, Indian Rupee, and other currencies. In Fiscal Year 2025, we recorded a gain of 538.29 MM from these currency fluctuations, compared to 535.45 MM in Fiscal Year 2024.
Capital expenditure
We require substantial capital for the upkeep and expansion of our facilities. In Fiscal Year 2025, our capital expenditure was 54,147.84 MM, compared to 53,304.35 MM in Fiscal Year 2025. This expenditure focused on constructing and enhancing manufacturing facilities and diversifying our product range.
As of March 31, 2025, our operations span over four sites in India: Manufacturing Facility 1 (7,000 square meters) for R&D, Pilot Plant and other activities; Manufacturing Facility 2 (10,500 square meters) with a production capacity of 6,096 MTPA and a solvent recovery plant;
Manufacturing Facility 3 (5,250 square meters) for the few new products which were launched in January 2023; and Manufacturing Facility 4, was commissioned for contract manufacturing for Baker Plughes, under our wholly owned subsidiary (Aether Speciality Chemicals Limited) in March 2024.
Moreover, we acquired over 125,000 sq. m in Panoli GIDC for future expansion and have begun the first phase of development. We anticipate Manufacturing Facility 3+1 3++ will be operational by the end of Fiscal Year 2026, which is dedicated for contract manufacturing for Milliken Chemical and Textile (India) Co. Private Limited, a wholly owned subsidiary of USA headquartered Milliken & Company (Milliken) and Manufacturing Facility 5s first phase (two production blocks) expected to be commissioned by the end of Q3 of Fiscal Year 2026.
Dependence of demand from pharmaceutical and agrochemical industries
As of March 31, 20245 we had over twenty-nine (29) commercial products including twenty (26) pharmaceutical, one (l) coating and two (2) agrochemical intermediates and specialty chemicals. Our products find applications across a number of therapeutic segments in the pharmaceuticals industry, including hypertension, anti-platelet, anti-psychotic, anti-histamine and non-steroidal anti-inflammatory drugs ("NSAIDs"). We also have products across other customer segments, such as agrochemicals, material science, coatings, multiple-use, high performance photography, food additives and oil and gas. In the Fiscal Year 2025, revenues from our pharmaceutical products were 53,824.53 MM (Fiscal Year 2024: 53,038.54 MM), which represented 45.60% (Fiscal Year 2024: 50.80%) of our operating revenue; and revenues from agrochemical products were 51,775.32 MM (Fiscal Year 2024: 51,629.51 MM), which represented 21.17% (Fiscal Year 2024: 27.24%), of our revenue from operations.
Consequently, our revenues are dependent on the pharmaceutical and agrochemical industries that use our products as an input. We have other segments, which have shown an upward trend in Fiscal Year 2025, which include increase in the business segments like Material Science from 7.91% in Fiscal Year 2024 to 11.44% in Fiscal Year 2025, Oil & Gas from 1.56% in Fiscal Year 2024 to 5.98% in Fiscal Year 2025 and Sustainability & Renewables from 0.00% in Fiscal Year 2024 to 1.05% in Fiscal Year 2025. This also shows that we are evolving with various other new business segments and which will be good revenue potentials, also for the future growth of the Company.
Reliance on major customers and relatively few products
Our customer base includes numerous multinational and domestic companies. In Fiscal Year 2025, our largest customer contributed approximately 10.00% of revenue from operations (down from 13.42% in Fiscal Year 2024). Our top 10 customers accounted for about 45.86% of revenue our revenue from operations (compared to 50.62% in Fiscal Year 2024), while our top 20 customers contributed 58.77% (down from 64.78% in Fiscal Year 2024). This indicates a reduced dependence on major customers and an expanded client base.
For Fiscal Year 2025, our top five specialty chemical products (BFA, 4MEP, T2E, 10MISB, and IDB) represented 43.69% of our revenue from operations, showing a decline from 42.96% in the previous fiscal year, reflecting a broader product portfolio. We maintain several supply contracts, ranging from one to five years, primarily with multinational clients for our CRAMS and contract manufacturing services.
Competition
Our products are used in end-user industries, such as pharmaceuticals, agrochemicals, amongst other industries. The broad-spectrum application of our products in the chemical industry is for advanced intermediates and significantly higher value specialty chemicals, which we believe is a unique position in the Indian chemical industry.
Moreover, whatever new products that we are developing in our R&D Facility are also such products which will be the first of its kind in India and we would be dominating the Indian market with the new products as well.
Costs of power and fuel
Power and fuel are essential for the uninterrupted operation of our manufacturing facilities. In Fiscal Year 2025, electricity charges represented 2.05% of our revenue from operations (down from 2.26% in Fiscal Year 2024). Overall power and fuel costs, including gas, steam, and diesel, accounted for 2.80% of revenue from operations (a decrease from 4.49% in Fiscal Year 2025).
Between Fiscal Year 2024 and Fiscal Year 2025:
Steam charges decreased from 5202.04 MM to 5159.85 MM, driven by lower coal and crude oil prices.
Electricity expenses increased from 5135.11 MM to 5172.01 MM, largely due to commissioning of Manufacturing Facility 4 in our wholly owned subsidiary, Aether Speciality Chemicals Limited.
Non-GAAP Financial Measures
Alongside our results prepared in accordance with Ind AS, we believe that the following non-GAAP measures provide valuable insights for assessing our performance and for investor evaluation: EBITDA,
EBITDA Margin, PAT Margin, ROE, Capital Employed, ROCE, Debt, Net Debt, Debt-Equity Ratio, Net Debt- EBITDA Ratio, Net Worth, Return on Net Worth, Net Asset Value per Equity Share, Pre-Tax Operating Profit, Net
Tangible Assets, Monetary Assets, and the percentage of Monetary Assets to Net Tangible Assets. These non- GAAP metrics are used internally for ongoing operational assessment, planning, and forecasting.
We believe that non-GAAP financial information, when considered alongside Ind AS-compliant measures, offers additional tools for investors to evaluate our operating results, trends, and for comparative analysis within our industry. They provide consistency and comparability with historical performance. However, our management does not view these non-GAAP measures in isolation or as substitutes for Ind AS financial measures.
It is important to note that non-GAAP financial information is supplementary and has limitations as an analytical tool. It should not be considered in isolation or as a replacement for financial information prepared under Ind AS. These measures are not recognized under Ind AS and lack standardized definitions, which may vary from those used by other companies. The main limitation of these non-GAAP measures is their exclusion of significant expenses and income required by Ind AS to be recorded in our financial statements. Moreover, they reflect managements judgment regarding which items are included or excluded. Reconciliations of non- GAAP measures to their closest Ind AS-compliant counterparts are provided below. Investors are encouraged to review these reconciliations and not rely solely on any single financial measure for evaluating our business.
| Particulars | As at, or for the year | |
| In 5 MM | 2025 | 2024 |
| EBITDA (l) | 52,292.90 | 51,184.87 |
| EBITDA Margin (2) | 27.34% | 19.81% |
| PAT Margin (3) | 18.00% | 12.94% |
| ROE (4) | 7.12% | 4.00% |
| Capital Employed (5) | 521,686.40 | 516,762.88 |
| ROCE (6) | 8.50% | 4.70% |
| Debt (7) | 51,825.29 | 51,686.18 |
| Net Debt (8) | 51,785.59 | -52,182.33 |
| Debt - Equity Ratio (9) | 0.08 | 0.08 |
| Net Debt-EBITDA Ratio (10) | 0.08 | -0.11 |
| Net Tangible Assets (ll) | 520,445.82 | 518,969.86 |
| Monetary Assets (12) | 5173.71 | 553.66 |
| % of Monetary Assets to Net Tangible Assets (13) | 0.85% | 0.28% |
| Net Worth (14) | 522,258.86 | 520,633.24 |
| Return on Net Worth (15) | 7.12% | 4.00% |
| Pre-Tax Operating Profit (16) | 51,842.75 | 5788.22 |
| Net Asset Value per Equity Share (17) | 5167.91 | 5157.82 |
Notes
1. EBITDA is calculated as the sum of (i) profit before tax and prior period items for the period/year, (ii) depreciation and amortization expenses, and (iii) finance costs less (iv) other income.
2. EBITDA Margin is calculated as EBITDA divided by revenue from operations.
3. PAT Margin is calculated as profit for the period/year divided by total income.
4. ROE is calculated as profit for the period/year divided by total equity.
5. Capital Employed is calculated as total equity, plus non-current borrowings, plus current borrowings, less current investments, less cash & cash equivalents, less bank balances other than cash & cash equivalents.
6. ROCE is calculated as earnings before interest and taxes divided by Capital Employed.
7. Debt is calculated as the sum of current borrowings and non- current borrowings.
8. Net Debt is calculated as total liabilities less cash & cash equivalents and bank balances.
9. Debt-Equity Ratio is calculated as Debt divided by total equity.
10. Net Debt-EBITDA Ratio is calculated as Net Debt divided by EBITDA.
11. Net Tangible Assets is calculated as the sum of all the assets of our Company excluding, right of use assets and other intangible assets as reduced by total liabilities of our Company.
12. Monetary Assets is calculated as cash and cash equivalents and bank balances and excluding bank deposits with remaining maturity of more than twelve months and fixed deposits held as margin money.
13. Percentage of Monetary Assets to Net Tangible Assets is calculated as Monetary Assets divided by Net Tangible Assets, expressed as a percentage..
14. Net Worth is calculated as the aggregate value of the paid-up share capital and all reserves created out of the profits (inclusive of net gain consequent to fair valuation of certain assets on transition to Ind AS) and securities premium account and debit or credit balance of profit and loss account, after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation.
15. Return on Net Worth is calculated as profit for the period/year divided by Net Worth.
16. Pre-Tax Operating Profit is calculated as profit before tax and prior period items for the period/year, excluding other income, finance costs and other comprehensive income.
17. Net Asset Value per Equity Share is calculated as Net Worth divided by the weighted average number of equity shares for the period/year as adjusted for bonus issue. Weighted average number of equity shares is the number of equity shares outstanding at the beginning of the year/period adjusted by the number of equity shares issued during the year/period multiplied by the time weighting factor. The time weighting factor is the number of days for which the specific shares are outstanding as a proportion of total number of days during the year/period.
EBITDA, EBITDA Margin, PAT Margin and ROE
The following table sets forth our EBITDA, EBITDA Margin, PAT Margin and ROE, in each of the Fiscal Year 2025 and Fiscal Year 2024
| Particulars | For the year ended March 31, | |
| In 5 MM | 2025 | 2024 |
| Total income (a) | 58,803.31 | 56,373.80 |
| Revenue from operations (b) | 58,386.90 | 55,981.72 |
| Profit before tax and prior period items (c) | 52,129.84 | 51,095.12 |
| Add: Finance costs (d) | 5129.33 | 585.17 |
| Add: Depreciation and amortization expenses (e) | 5450.14 | 5396.65 |
| Less: Other income (f) | 5416.42 | 5392.07 |
| EBITDA (G=C+D+E-F) | 52,292.90 | 51,184.87 |
| EBITDA Margin (h=g/b) | 27.34% | 19.81% |
| Profit for the period (l) | 51,584.18 | 5824.90 |
| Total equity (j) | 522,258.86 | 520,633.24 |
| PAT Margin (/a) | 18.00% | 12.94% |
| Return on Equity - ROE (l/j) | 7.12% | 4.00% |
Capital Employed and Return on Capital Employed
(roce)
The following table sets forth our Capital Employed and Return on Capital Employed (ROCE), including a reconciliation of ROCE to our profits/losses before tax and prior period items in each of the Fiscal Year 2025 and Fiscal Year 2024
| Particulars | As at, or for the year ended March 31, | |
| In 5 MM | 2025 | 2024 |
| Profit before tax and prior period items (a) | 52,129.84 | 51,095.12 |
| Add: Finance costs (b) | 5129.33 | 585.17 |
| Less: Other income (c) | 5416.42 | 5392.07 |
| EBIT (D=A+B-C) | 51,842.75 | 5788.22 |
| Total equity (e) | 522,258.86 | 520,633.24 |
| Non-current borrowings (f) | 50.00 | 50.00 |
| Current borrowings (g) | 51,825.29 | 51,686.18 |
| Current investments (h) | 50.00 | 50.00 |
| Cash & cash equivalents (l) | 5173.71 | 553.66 |
| Bank balance other than cash & cash equivalents (j) | 52,224.04 | 55,502.88 |
| Capital Employed (K=E+F+G- H-I-J) | 521,686.40 | 516,762.88 |
| ROCE (L=D/K) | 8.50% | 4.70% |
Debt, Net Debt, Debt-Equity Ratio and Net Debt-EBITDA Ratio
The following table sets forth our Debt, Net Debt, Debt-
Equity Ratio and Net Debt-EBITDA Ratio as at March 31, 2025 and March 31,2024
| Particulars | As at, or for the year ended March 31, | |
| In 5 MM | 2025 | 2024 |
| Non-current borrowings (a) | 50.00 | 50.00 |
| Current borrowings (b) | 51,825.29 | 51,686.18 |
| Debt (C=A+B) | 51,825.29 | 51,686.18 |
| Total equity (d) | 522,258.86 | 520,633.24 |
| Debt-Equity Ratio (e=c/d) | 0.08 | 0.08 |
| Total liabilities (g) | 54,183.34 | 53,374.20 |
Less: cash and cash equivalents and bank balances (h) |
52,397.75 | 55,556.54 |
| Net Debt (l=G-H) | 51,785.59 | -52,182.34 |
| EBITDA (j) | 52,292.90 | 51,184.87 |
| Net Debt-EBITDA Ratio (k=l/j) | 0.78 | -1.84 |
Overview of Revenue and Expenditure
The following descriptions set forth information with respect to key components of our income statement.
| Particulars | As at, or for the year ended March 31, | |
| In 5 MM | 2025 | 2024 |
| Total income (a) | 58,803.31 | 56,373.80 |
| Revenue from operations (b) | 58,386.90 | 55,981.72 |
| Profit before tax and prior period items (c) | 52,129.84 | 51,095.12 |
| Add: Finance costs (d) | 5129.33 | 585.17 |
| Add: Depreciation and amortization expenses (e) | 5450.14 | 5396.65 |
| Less: Other income (f) | 5416.42 | 5392.07 |
| EBITDA (G=C+D+E-F) | 52,292.90 | 51,184.87 |
| EBITDA Margin (h=g/b) | 27.34% | 19.81% |
| Profit for the period (l) | 51,584.18 | 5824.90 |
| Total equity (j) | 522,258.86 | 520,633.24 |
| PAT Margin (/a) | 18.00% | 12.94% |
Revenue from operations
Sale of products manufactured are done under our three business models, namely (i) Large-Scale Manufacturing of Specialty Chemicals, (ii) Contract Manufacturing, and (iii) Contract Research and Manufacturing Services ("CRAMS"). Such sales of products can be divided into (i) local sales, (ii) export sales (including sales to SEZ units within India), (iii) deemed exports (representing sales to Indian companies under an advance authorization license) and (iv) export sales under our CRAMS business model.
Sale of services are done under our CRAMS business model. Such sales can be divided into services provided to (i) overseas customers and (ii) customers in India.
Other income
Other income primarily comprises interest income on fixed deposits, income from foreign exchange fluctuation, MEIS Duty Credit, SEIS Duty Credit, exports duty drawback, interest accrued on loans to employees, interest on income tax refund, profit on termination of lease amongst the others.
Expenditure
Our expenditure comprises the following:
Cost of materials consumed
Cost of materials consumed comprises (i) the cost of raw materials used in the manufacture of our products; (ii) the cost of packing materials; (iii) the cost of stores and spares; and (iv) the cost of other materials. Our raw materials include crude oil derivatives such as phenol and other commodities such as hydrogen, ethylene oxide and Isobutylene gas.
Other important raw materials include chlorobenzonitrile methanol, toluene, methylene dichloride tetrahydrofuran, dichlorotoluene and thiophene.
Changes in inventories of finished goods and work-in- progress
Expenses / Income accounted for pursuant to an (increase)/decrease in inventories of work-in- progress.
Employee benefit expenses
Employee benefit expenses comprises salaries, wages and bonus, contribution to provident and other funds, actuarial valuation of gratuity, staff welfare expenses, leave encashment expenses, employee medical insurance expenses, value of discount in ESOPs and other employee related expenses.
Finance costs
Finance costs comprises interest expenses on term loan, cash credit, Packing Credit Loan in Foreign Currency (PCFC), bill discounting, Stand by Letter of Credit (SLC), car loans, interest on finance liabilities and interest on overdrafts.
Depreciation and amortization expenses Depreciation and amortization expenses comprises depreciation of tangible assets including our plant and machinery, building, factory equipment, computer equipment, office and other equipment, furniture and fixture, amongst others; and amortization of intangible assets including computer software and others; and amortization of leasehold land and leasehold premises.
Other expenses
Other expenses comprise primarily of (a) manufacturing expenses, such as gas expenses, steam charges, diesel expenses, water, fees paid to third party workers for solvent recovery services (classified as job work charges in our Financial Statements), effluent disposal, and fees paid to contract works (classified as manpower supply expenses in our Financial Statements), amongst others; (b) administrative and general expenses, such as rents, salaries to directors, repairs and maintenance expenses, electricity expenses, legal and professional charges, amongst others; (c) selling and distribution expenses, such as freight and selling expenses and commissions paid to selling agents, amongst others; and (d) other expenses, such as loan processing fees and other documentation charges and bank charges, amongst others.
Operating Segment and Business Models Our Company is exclusively engaged in the business of manufacturing of speciality chemicals and intermediates. As such, in accordance with Ind AS, our Companys business is considered to constitute one single primary segment.
Geographic information
The geographic information analyses our revenues by our country of domicile and other countries for the periods/years indicated. In presenting geographic information, revenue has been based on the location of the customers.
| Particulars | For the year ended March 31, | |
In 5 MM |
2025 | 2024 |
| India (including deemed exports) | 54,745.64 | 53,483.56 |
| Rest of the world (including SEZ) | 53,641.26 | 52,498.16 |
Total |
58,386.90 | 55,981.72 |
The following table sets out the total carrying amount of assets as at March 31, 2025 and March 31, 2024, broken down by location of the assets.
| Particulars | As at March 31, | |
In 5 MM |
2025 | 2024 |
| India | 5516.35 | 5951.22 |
| Rest of the World | 52,369.86 | 51,377.54 |
Total |
52,886.20 | 52,328.76 |
Business models
We have three broad business models within our primary operating segment, which are (a) Large-Scale Manufacturing of Specialty Chemicals, (b) Contract Manufacturing, and (c) Contract Research and Manufacturing Services ("CRAMS"), and our geographical segments: The following table sets out our revenue for each of the periods/fiscal years mentioned, broken down by our three (3) business models.
| Particulars | For the year ended March 31, | |
In 5 MM |
2025 | 2024 |
| Large Scale Manufacturing | 54,623.55 | 53,564.52 |
| Contract Manufacturing | 52,630.07 | 51,534.53 |
| CRAMS | 51,027.54 | 5826.61 |
| Others* | 5105.74 | 556.06 |
Total |
58,386.90 | 55,981.72 |
*Others represents sale of wastage material, as well as packing material and certain raw material no longer required in our production activities.
Results of operations
The following table sets forth our income statement data, the components of which are expressed as a percentage of total income for the periods indicated, for our operations for Fiscal Year 2025 and Fiscal Year 2024
| Particulars | For the year ended March 31, | For the year ended March 31, | ||
| In 5 MM | % | In 5 MM | % | |
| Income | ||||
| Revenue from operations | 58,386.90 | 95.27% | 55,981.72 | 93.85% |
| Other income | 5416.42 | 4.73% | 5392.07 | 6.15% |
Total Income |
58,803.32 | 100.00% | 6,373.79 | 100.00% |
| Expenses | ||||
| Cost of materials consumed | 55,072.03 | 60.48% | 53,774.13 | 63.09% |
| Changes in inventories of finished goods and work-in- progress | -5606.19 | -7.23% | -5564.95 | -9.44% |
| Employee benefits expense | 5427.95 | 4.86% | 5386.25 | 6.06% |
| Finance costs | 5129.33 | 1.47% | 585.17 | 1.34% |
| Depreciation and amortisation | 5450.14 | 5.11% | 5396.65 | 6.22% |
| Other expenses | 51,081.47 | 12.28% | 51,063.82 | 16.69% |
Total expenses |
56,554.73 | 74.46% | 55,141.06 | 80.66% |
Profit before |
52,248.58 | 25.54% | 51,232.74 | 19.34% |
| Exceptional item | 5118.74 | 1.35% | 5137.62 | 2.16% |
Profit before |
52,129.84 | 24.19% | 51,095.12 | 17.18% |
| Tax expense Current tax | 5380.16 | 4.32% | 5172.90 | 2.71% |
| Deferred tax | 5165.50 | 1.88% | 597.32 | 1.53% |
Total tax |
5545.66 | 6.20% | 5270.22 | 4.24% |
Profit for the |
51,584.18 | 18.00% | 5824.90 | 12.94% |
Net Assets Value (NAV)
The following table sets forth the Net Assets Value (NAV) per share for Fiscal Year 2025 and Fiscal Year 2024
| Particulars | As at March 31, | |
| Inf MM | 2025 | 2024 |
| Total assets (a) | 511,381.74 | 513,026.52 |
| Less: Other intangible assets (b) | 587.26 | 566.97 |
| Less: Right of use assets (c) | 51,725.78 | 51,596.40 |
| Less: Total liabilities (d) | 54,183.34 | 53,374.20 |
| Net Tangible Assets (E=A-B-C-D) | 55,385.36 | 57,988.95 |
| Cash and cash equivalents and bank balances (f) | 52,397.75 | 55,556.54 |
| Less: Bank deposits with remaining maturity of more than 12 months (g) | 52,212.30 | 55,490.43 |
| Less: Fixed deposits held as margin money (h) | 511.74 | 512.45 |
| Monetary Assets (l=F-G-H) | 5173.71 | 553.66 |
| % of Monetary Assets to Net Tangible Assets (j = (l/E) *100)) (in | 3.23% | 0.67% |
| Net Worth (K=(l+2+3+4+5)) | 522,258.85 | 520,633.20 |
| Issued subscribed and fully paid- up equity share capital (l) | 51,325.90 | 51,325.50 |
| General reserve (2) | 50.00 | 50.00 |
| Securities premium reserve (3) | 515,441.13 | 515,416.17 |
| Retained earnings (4) | 55,425.75 | 53,845.29 |
| Employees share options reserve (5) | 566.07 | 546.24 |
| Profit for the year/period (l) | 51,584.18 | 824.90 |
| Return on Net Worth (m=l/k) (in %) | 7.12% | 4.00% |
| Profit before tax and prior period items (n) | 52,129.84 | 1,095.12 |
| Less: Other income (o) | 5416.42 | 392.07 |
| Add: Finance costs (p) | 5129.33 | 85.17 |
| Pre-Tax Operating Profit (Q=N- o+p) | 51,842.75 | 788.22 |
| Number of equity shares outstanding at the end of the period / year, after adjustment of bonus issue (r) (number in MM) | 132.56 | 130.74 |
| Number of equity shares outstanding at the end of the period / year, after adjustment of bonus issue (r) (number in MM) | 132.56 | 130.74 |
| Effect of dilutive potential equity shares | 0.06 | 0.01 |
| Number of equity shares outstanding at the end of the period / year, after adjustment of bonus issue (s) (number in MM) | 132.63 | 130.75 |
| Net Asset Value per Equity Share (basic) (T=K/R) (in f) | 67.91 | 57.82 |
| Net Asset Value per Equity Share (diluted) U=K/S) (in f) | 67.83 | 57.81 |
Comparative analysis of Profit and Loss The following table sets out the comparison of the revenues and expenses for the Fiscal Year 2025 and Fiscal Year 2025
| Particulars | For the year ended March 31 | Change | |
In f MM |
2025 | 2024 | % |
| Income | |||
| Revenue from operations | 58,386.90 | 55,981.72 | 40.21% |
| Other income | 5416.42 | 5392.07 | 6.21% |
Total Income |
58,803.31 | 56,373.79 | 38.12% |
| Expenses | |||
| Cost of materials consumed | 55,072.03 | 53,774.13 | 34.39% |
| Changes in inventories of finished goods and work- in-progress | -5606.19 | -5564.95 | 7.30% |
| Employee benefits | 5427.95 | 5386.25 | 10.80% |
| Finance costs | 5129.33 | 585.17 | 51.85% |
| Depreciation and amortisation expense | 5450.14 | 5396.65 | 13.49% |
| Other expenses | 51,081.47 | 51,063.82 | 1.66% |
Total expenses |
56,554.73 | 55,141.06 | 27.50% |
Profit before tax, before exceptional items |
52,248.58 | 51,232.74 | 82.41% |
| Exceptional items | 5118.74 | 5137.62 | -13.72% |
Profit before tax |
52,129.84 | 51,095.12 | 94.48% |
| Tax expense | |||
| Current tax | 5380.16 | 5172.90 | 119.87% |
| Deferred tax | 5165.50 | 597.32 | 70.06% |
Total tax expense |
5545.66 | 5270.22 | 101.93% |
Profit for the year |
51,584.18 | 5824.90 | 92.05% |
Revenue from operations
The revenue from operations in Fiscal Year 2025 amounted to 58,386.90 MM, as against 55,981.72 MM, an increase of 40.21% in the comparative periods. The main reasons for the increase in the revenue from operations, include:
1. New site - Manufacturing Facility 4 (under our wholly owned subsidiary company - Aether Speciality Chemicals Limited) becomes operational
2. Reduction in the raw material prices to some extent.
3. Increase in the Contract / Exclusive Manufacturing
(CEM) contribution to the revenue from operations
4. In the last Fiscal Year 2024, we had suffered with fire accident at Manufacturing Facility 2, which has led to the reduction in revenues as the facility was closed for few months. This has been operational in Fiscal Year 2025, which has also led to increase in revenues
5. There is increase in volume of products sold, which has also led to increase in revenues.
Other income
Our other income increased by just 6.21% from 5392.07 MM in Fiscal Year 2024 to 5416.42 MM in Fiscal Year 2025. Such less increase was primarily due to (i) interest on FDs created out of Idle QIP funds, which helped us earn 5344.08 MM in Fiscal Year 2025, which was 5335.19 MM only in Fiscal Year 2024 on FDs created from QIP funds and normal FDs created for margin monies, (ii) foreign exchange gain amount to 538.29 MM in Fiscal Years 2025 against 535.45 MM in Fiscal Year 2024 and (iii) SEIS duty credit which amounted to 510.74 MM in Fiscal Year 2025 as against MEIS Duty Credit of 52.09 MM in Fiscal Year 2024.
Cost of materials consumed
Our cost of materials consumed reduced marginally by 34.39% from 53,774.13 MM in Fiscal Year 2024 to 55,072.03 MM in Fiscal Year 2025, primarily due to an increase in production volumes (in Fiscal Year 2024, due to the fire accident at Manufacturing Facility 2, there was reduction in production). But if we compare the cost of materials consumed to revenue from operations, the same accounted for 60.48% in Fiscal Year 2025 and 63.09% in Fiscal Year 2024, of revenue from operations in the respective fiscal years. This shows the efficiency of output of our products by reducing the cost marginally.
Change in inventories of finished goods and work-in- progress
Our opening stock of (i) finished goods was 5493.14 MM as at April 1, 2024, while it was 5536.19 MM as at April 1,
2023 and (ii) work-in-progress was 51,760.81 MM as at April 1, 2024, while it was 51,062.81 MM as at April 1, 2023.
Our closing stock of (i) finished goods was 5642.83 MM as at March 31, 2025, while it was 5493.14 MM as at March 31, 2024 and (ii) work-in-progress was 52,014.84 MM as at March 31, 2025, while it was 51,809.78 MM as at March 31, 2024.
The closing stock of work in progress had increased as the end of the Fiscal Year 2024, due to the fire accident in November 2023, followed by shutdown of Manufacturing Facility 2 for few months and then restart of the same.
The major reason of increase in the closing stocks of finished goods and inventories is attributable to the start of the operations at Manufacturing Facility 4 and also the receipt of the insurance claim for the loss of stock due to fire in Fiscal Year 2024.
Employee benefit expenses
Our employee benefit expenses increased by 10.80% from 5386.25 MM in Fiscal Year 2024 to 5427.95 MM in Fiscal Year 2025, primarily due to the annual increments of the employees, new recruitments and new ESOPs granted in the Fiscal Year 2025.
Finance costs
Our finance costs increased by 51.85% from 585.17 MM in Fiscal Year 2024 to 5129.33 MM in Fiscal Year 2025, primarily because the Company, after its IPO proceeds used to pay off all the debts, had to start with fresh working capital facilities from the banks for the ever increasing business needs. This was also increased due to the rates of interest which increased in Fiscal Year 2025 as compared to Fiscal Year 2024.
Depreciation and amortization expenses
Our depreciation and amortization expense increased by 13.49% from 5396.65 MM in Fiscal Year 2024 to 5450.14 MM in Fiscal Year 2025. This increase is attributable to the continuous capex being done by the Company at regular intervals for the expansions at most of the sites, and also the new projects started at Manufacturing Facility 4 and Manufacturing Facility 1.
Other expenses
Our other expenses increased marginally by 1.66% from 51,063.82 MM in Fiscal 2024 to 51,081.47 MM in Fiscal Year 2025. The reason for such marginal increase is attributable to the cost control initiatives by the Company for its electricity expenses by commissioning new 15MW Solar Power Plant, reduction in the steam costs and other expenses being controlled at the Company level.
Exceptional items
During the Fiscal Year 2024, there was a fire accident at our Manufacturing Facility 2 in November 2023, which lead to some one time and exceptional expenses, which amount to 5118.74 MM (Fiscal Year 2024:137.62 MM). This mainly includes the excess of premium paid for insurance for the insurance claim put up by the Company to the Insurance Company.
Profit before tax
As a result of the foregoing, we recorded an increase of 94.48% in our profit before tax, which amounted to 52,129.84 MM in Fiscal Year 2025, as compared to 51,095.12 MM in Fiscal Year 2024,.
Tax expenses
Our tax expenses (current and deferred) increased by 101.93% from 5270.22 MM in Fiscal Year 2024 to 5545.66 MM in Fiscal Year 2025. Our effective tax rate in Fiscal Year 2025 and Fiscal Year 2024 was 25.62% and 24.67%, respectively.
Profit for the period
As a result of the foregoing, we recorded an increase of 92.04% in our profit for the year from 5824.90 MM in Fiscal Year 2024 to 51,584.18 MM in Fiscal Year 2025. PAT Margin in Fiscal Year 2025 has been 18%, which was 12.94% in Fiscal Year 2024.
Liquidity and Capital Resources
Capital requirement
Our principal capital requirements are for payment for the various capex expansions on going at Manufacturing Facility 3++, Manufacturing Facility 4, Manufacturing Facility 1 (for the expansion of the new R&d) and Manufacturing Facility 5.
Our principal source of funding has been and is expected to continue to be, cash generated from our operations, supplemented by borrowings from banks and financial institutions and optimization of operating working capital. In Fiscal Year 2023, Initial Public Offering (iPO) done in June 2022, has also been a source of funding for the Company. For the Fiscal Year 2023 and Fiscal Year 2022, we met our funding requirements, including satisfaction of debt obligations, capital expenditure, investments, other working capital requirements, payouts to shareholders and other cash outlays, principally with funds generated from operations, optimization of operating working capital with the balance met from external borrowings, borrowings from Promoters and a fundraising by way of issuance of equity shares by way of Preferential Allotment of Shares and also Initial Public Offering (IPO).
For the expansion projects that we intend to undertake, we will be utilizing a portion of the funds generated from the QIP (done in June 2023) along with a mix of debt, and internal accruals.
Liquidity
Our liquidity requirements arise principally from our operating activities, capital expenditures for construction of new facilities and undertaking of new projects, the repayment of borrowings and debt service obligations. Historically, our principal sources of funding have included cash from operations, short-term and long-term borrowings from banks, overdraft facilities that are repayable on demand, cash and cash equivalents and equity and financing provided by our shareholders We have also entered into various revolving credit and other working capital facilities, which provides sufficient liquidity for our requirements.
In Fiscal Year 2023, Initial Public Offering (IPO) done in June 2022, has also been a source of funding for the Company, along with Qualified Institutional Placement (QIP) done during Fiscal Year 2024 during June 2023.
Cash flows
Our cash flows from operations had been slightly negative in Fiscal Years 2024 on account of increase in the debtor days and inventory days, mainly on account of various customers delaying the payments especially at quarter ends and releasing the same in the next month along with the inventory increase due, mainly in work-in-progress (semi finished goods) as we had restarted our Manufacturing facility 2 (50%) after the fire accident, in February 2024, wherein various products were in manufacturing and thus the increase.
But in Fiscal Year 2025, we have been able to manage the inventory, debtors and our other working capital elements very well and economically, resulting in a positive operating cash flow of 51,000.91 MM positive, which was negative 5164.58 MM in Fiscal Year 2024.
Our Cash Flows for the Fiscal Year 2025 and Fiscal Year 2024 have been as depicted in the below table:
| Particulars | For the year ended March 31, | |
| In 5 MM | 2025 | 2024 |
| Net Cash generated from Operating Activities | 51,000.91 | -5164.58 |
| Net Cash (Used in) Investing Activities | -54,178.86 | -54,239.33 |
| Net Cash from/(Used in) Financing Activities | 519.18 | 58,937.56 |
| Net Increase / (Decrease) | -53,158.77 | 54,533.65 |
| Cash and Cash Equivalents at the beginning of the year | 55,556.54 | 51,022.89 |
Cash and Cash Equivalents at the end of the year |
52,397.76 | 55,556.54 |
Cash flows generated from operating activities
We had positive 51,000.91 MM net cash from operating activities during the Fiscal Year 2025. While our net profit before tax was 52,129.84 MM, we had an operating profit before working capital changes of 52,352.27 MM, primarily due to adjustments for depreciation and amortization expenses of 5450.14 MM, finance costs of 5129.33 MM and foreign exchange gain of 52.69 MM, which were partially offset by interest income amounting to 5344.08 MM. Our adjustments for working capital changes for the Fiscal Year 20255 primarily consisted of increase in trade receivables by 5557.45557.45 MM, increase in inventories by 5533.95 MM and increase in other current assets by 5492.34 MM, which were partially offset by a decrease in trade payables by 5240.33 MM. Our cash generated from operating activities was 51,381.07 MM, adjusted by tax paid (net of refund) of 5380.16 MM.
We had negative 5164.58 MM net cash from operating activities during the Fiscal Year 2024. While our net profit before tax was 51,095.12 MM, we had an operating profit before working capital changes of 51,279.82 MM, primarily due to adjustments for depreciation and amortization expenses of 5396.65 MM, finance costs of 585.17 MM and foreign exchange loss of 56.91 MM, which were partially offset by interest income and income from mutual funds amounting to 5335.41 MM and 55.38 MM, respectively. Our adjustments for working capital changes for the Fiscal Year 2024 primarily consisted of decrease in trade receivables by 5261.06 MM, increase in inventories by 5947.05 MM and increase in other current assets by 5716.47 MM, which were partially offset by a decrease in current investments by 510.01 MM and an increase in trade payables by 5220.16 MM. Our cash generated from operating activities was 58.31 MM, adjusted by tax paid (net of refund) of 5172.90 MM.
Cash flows used in investing activities
Net cash used in investing activities was 54,178.86 MM in Fiscal Year 2025, primarily on account of 53,043.96 MM used for purchase of fixed assets principally for Manufacturing Facility - 3, Manufacturing Facility 1 (normal capex) and Manufacturing Facility - 2 (normal CAPEX post fire accident in November 2023), Manufacturing Facility 4 (normal Capex) and payment for new Solar Power Plant of 15MW (Auto-Tracker). Investment in Manufacturing Facility 3++ and Phase One of Manufacturing Facility 5 (at Panoli), which are still in Capital Work in Progress amounting to 51,478.98 MM . These were partially offsetting by 5344.08 due to income from Mutual Fund investments.
Net cash used in investing activities was 54,239.33 MM in Fiscal Year 2024, primarily on account of 52,482.68 MM used for purchase of fixed assets principally for Manufacturing Facility - 1 (R&D and Pilot Plant expansion to three times), Manufacturing Facility - 2 (normal CAPEX), Manufacturing Facility - 3 (New Greenfield Production unit commissioned in January 2023), further investments in expansion of 51,794.76 towards the apex towards Manufacturing Facility 4, Manufacturing Facility 3+/3++ and Phase One of Manufacturing Facility 5 (at Panoli) and advance payment for new Solar Power Plant of 15MW (Auto-
Tracker) still in Capital Work in Progress, which will be capitalised in future years. These were partially offsetting by f38.ll due to income from Mutual Fund investments.
Cash flows generated from / (used in) financing activities
Net cash used in financing activities in the Fiscal Year 2025 amounted to 519.18 MM, which primarily consisted of proceeds from allotments or vesting of ESOPs to employees amounting to 512.83 MM and new working capital limits utilised of fl39.ll MM, which were offset by interest paid in the amount of fl04.05 MM, lease liabilities of f25.28 MM and QIP expense amounting to f0.90 MM.
Net cash used in financing activities in the Fiscal Year 2024 amounted to f8,937.56 MM, which primarily consisted of proceeds from allotment of shares in QIP amounting to f7,500.00 MM, proceeds from allotments or vesting of ESOPs to employees amounting to f8.58 MM and new working capital limits utilised of f1,686.18 MM, which were offset by interest paid in the amount of f69.49 MM and QIP expense amounting to fl80.63 MM.
Capital and other commitments
As of March 31, 2025 and March 31, 2024, the estimated amount of contracts remaining to be executed on capital account not provided for was fl94.18 MM and f25.80 MM, respectively.
Capital expenditure
Capital expenditures consist primarily of investments in new manufacturing facilities and equipment. We also make investments at our manufacturing facilities to add new technologies, modernise facilities and expand our product lines. Capital expenditure will vary from year to year depending upon a number of factors, including the need to replace equipment and the timing of certain projects, such as investment in new technologies. In the Fiscal Year 2025, we incurred capital expenditure of 54,147.84 MM (Fiscal Year 2024: 53,304.35 MM). A significant amount of our capital expenditure was aimed at constructing manufacturing and other facilities, increasing our manufacturing capacities and diversifying our product base, along with the construction of the Greenfield Project at site 3+/3++, first phase of expansion at Manufacturing Facility 5 and a small portion of expansion at Manufacturing Facility 1 (R&D expansion).
Contingent liabilities
Contingent liabilities, to the extent not provided for, as of March 31, 2025 and March 31, 2024, as determined in accordance with Ind AS 37, are described below:
| Particulars (iNR in MM) | 2025 | 2024 |
| Bank Guarantees Issued for: | ||
| Customs | 58.89 | 58.89 |
| Gujarat Gas Limited | 527.31 | 520.71 |
| DGVCL | 5100.46 | 554.55 |
| NHI | 50.25 | 50.25 |
| GPCB | 50.75 | 50.75 |
Total Margin for the above |
511.74 | 511.83 |
| Raw Material FLC | 50.00 | $0.06 |
Total Margin for the above |
50.00 | 50.62 |
| Income tax demands: | ||
| AY 2017-18 (FY 2016-17) | 50.00 | $0.15 |
| AY 2018-19 (FY 2017-18) | 50.00 | $0.94 |
| AY 2020-21 (FY 2019-20) | 51.18 | $1.00 |
Note:
All the Contingent Liabilities, except Income Tax Demands, listed above, which are outstanding as on current Balance Sheet date are not 100% secured through cash margins placed with the banks.
The Income Tax Demands are under CIT appeal by the Company and the outcome of the same is not known and hence the demand amount has been considered as contingent liability.
Related Party Transactions
Contingent liabilities, to the extent not provided for, as of
March 31, 2025 and March 31, 2024, as determined in accordance with Ind AS 37, are described below:
| Nature of transaction (iNR in MM) | 2025 | 2024 |
| Rent Paid | 55.58 | 56.60 |
| Managerial Remuneration | 567.25 | 567.25 |
| Purchase of Consumables | 54.75 | 50.00 |
| Purchase of Material for Building & Structure | 534.83 | 527.93 |
| ETPExpenses | 577.32 | 587.06 |
| CSR Activities | 51.97 | 51.27 |
| Salary | 525.38 | 58.03 |
| Sitting Fees | 51.97 | 52.54 |
| Plot Bought at Site-1 | 5109.44 | 50.00 |
| Purchase of Property | 5800.00 | 50.00 |
Total |
51,128.48 | 5200.68 |
Note:
For details of the related party transactions and as reported in the Financial Statements, please see the section entitled "Note 40" in "Financial Statements".
Financial risk management
Credit Risk
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Companys receivables from customers.
The Companys exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry and country in which customers operate.
Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess impairment loss or gain. The Company uses a matrix to compute the expected credit loss allowance for trade receivables. The provision matrix takes into account available external and internal credit risk factors and Companys historical experience for customers.
1. The company has not made any provision on expected credit loss on trade receivables and other financials assets, based on the management estimates.
2. Credit risk on cash and cash equivalents is limited as the Company generally invests in deposits with banks and financial institutions with high credit ratings assigned by domestic credit rating agencies.
Liquidity Risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Companys approach to managing liquidity is to ensure, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Companys reputation.
The Companys treasury department within the Finance Department is responsible for liquidity and funding. In addition policies and procedures relating to such risks are overseen by the management.
The table below sets out an analysis of working capital and current ratio as at March 31, 2025 and March 31, 2024: The table below sets out exposure to financial liabilities based on the contractual maturity as at the reporting date:
| Particulars | As at March 31, | |
In 5 MM |
2025 | 2024 |
| Total Current Assets (a) | 511,381.74 | 513,026.52 |
| Total Current Liabilities (b) | 53,507.03 | 52,890.87 |
Working Capital (A-B) |
57,874.71 | 510,135.65 |
Current Ratio |
3.25 | 4.51 |
The table below sets out exposure to financial liabilities based on the contractual maturity as at the reporting date:
In 5 MM
| As at March 31, 2025 | Carrying value | < than 1 Year | > than 1 Year | Total |
| Borrowings | 51,825.29 | 51,825.29 | 50.00 | 51,825.29 |
| Trade payables | 51,275.68 | 51,275.68 | 50.00 | 51,275.68 |
| Lease Liabilities | 5173.41 | 525.32 | 5148.09 | 5173.41 |
| Other liabilities | 5113.55 | 5113.55 | 50.00 | 5113.55 |
As at March 31, 2024 |
||||
| Borrowings | 51,686.18 | 51,686.18 | 50.00 | 51,686.18 |
| Trade payables | 51,035.34 | 51,035.34 | 50.00 | 51,035.34 |
| Lease Liabilities | 5143.84 | 524.46 | 5119.37 | 5143.84 |
| Other liabilities | 5116.08 | 5116.08 | 50.00 | 5116.08 |
Market Risk
Market risk is the risk that changes with market prices - such as foreign exchange rates and interest rates, will affect the Companys income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.
Foreign Exchange Rate Risk
Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate.
Company transacts business in its functional currency (iNR) and in other foreign currencies. The Companys exposure to the risk of changes in foreign exchange rates relates primarily to the Companys operating activities, where revenue or expense is denominated in a foreign currency.
The table below sets out an analysis of unhedged foreign currency exposure:
| For the year ended March 31, 2025 | For the year ended March 31, 2024 | |||
| Particulars | Foreign currency (in MM) | Rupees (in MM) | Foreign currency (in MM) | Rupees (in MM) |
| (a) Financial Assets | ||||
| Trade Receivables | $27.69 | 52,369.86 | $16.52 | 51,377.54 |
| Balance with banks - EEFC | $0.89 | 576.12 | $0.45 | 537.72 |
| (b) Financial Liabilities | ||||
| Trade Payables | $1.60 | 5136.29 | $0.10 | 58.27 |
| (c) Currency wise net exposure | ||||
| Financial | ||||
| Assets - Financial | $26.99 | 52,309.70 | $16.88 | 51,406.99 |
| Liabilities | ||||
Sensitivity analysis
| As at March 31, | ||
| Particulars (iNR in MM) | 2025 | 2024 |
| Impact on profit/equity (l% strengthening) - US $ | 523.10 | 514.07 |
| Impact on profit/equity (l% weakeninq) - US $ | -523.10 | -514.07 |
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Companys exposure to the risk of changes in market interest rates relates primarily to the Companys debt obligations with floating interest rates. The Company manages its interest rates by selecting appropriate type of borrowings and by negotiation with the bankers.
The exposure of the borrowings (long-term and shortterm) to interest rate changes at the end of the reporting period are as follows:
| As at March 31, | ||
| Particulars (iNR in MM) | 2025 | 2024 |
| Variable rate borrowings | 51,825.29 | 51,686.18 |
| Fixed rate borrowings | 50.00 | 50.00 |
Total borrowings |
51,825.29 | 51,686.18 |
Sensitivity analysis
| Impact on Profit before tax / pre-tax equity | ||
| As at March 31, | ||
| Particulars (iNR in MM) | 2025 | 2024 |
| Increase by 50 basis points | -59.13 | -58.43 |
| Decrease by 50 basis points | 59.13 | 58.43 |
Capital management
The Companys capital comprises equity share capital, surplus in the statement of profit and loss and other equity attributable to equity holders.
The Companys objectives when managing capital are to:
1. safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and
2. maintain an optimal capital structure to reduce the cost of capital.
The Company monitors capital using debt-equity ratio, which is net debt divided by total equity. These ratios are illustrated below:
| As at March 31, | ||
| Particulars (iNR in MM) | 2025 | 2024 |
| Total liabilities | 54,183.34 | 53,374.20 |
Less: cash and cash equivalents and bank balances |
52,397.75 | 55,556.54 |
Net Debt |
51,785.59 | -52,182.34 |
| Total equity | 522,258.86 | 520,633.24 |
Net Debt-equity ratio |
0.08 | -0.11 |
Financial indebtedness
The financial indebtedness of the Company as on March 31, 2025 and March 31, 2024 are as depicted in the table below:
| As at March 31, | ||
| Particulars (iNR in MM) | 2025 | 2024 |
| Short Term | ||
| Secured Borrowings, comprising of | 51,825.29 | 51,686.18 |
| Loans repayable on demand | 51,825.29 | 51,686.18 |
| Long Term | 50.00 | 50.00 |
Total indebtedness |
1,825.29 | 1,686.18 |
Significant Economic Changes
Other than as described above, to the knowledge of our management, there are no other significant economic changes that materially affect or are likely to affect income from continuing operations.
Unusual or Infrequent Events of Transactions
None
Reservations, Qualifications and Adverse Remarks Included in Financial Statements
There have been no reservations or qualifications or adverse remarks of our Statutory Auditors in the last three fiscal Years.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements, derivative instruments or other relationships with other entities that would have been established for the purpose of facilitating off-balance sheet arrangements.
Issue of Equity Shares for consideration other than cash
Except for the bonus allotment made on November 17, 2021, our Company has not issued any Equity Shares, for consideration other than cash.
Split / Consolidation of Equity Shares
Our Company has not undertaken a split or consolidation of the Equity Shares.
Exemption from complying with any provisions of securities laws, if any, granted by SEBI
Our Company has not made any application under Regulation 300(1)(c) of the SEBI ICDR Regulations for seeking exemption from complying with any provisions of securities laws.
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
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