1. Zone 4 commissioning - The Jhagadia multipurpose plant is commissioning in phases through FY27, with the calcium chloride plant already in commercial runs, the MPP under commissioning trials and expected to be declared commissioned/commercialized within Q1 FY27, and 5 chemistry blocks following sequentially. This is the core of the FY28 EBITDA target of ₹1,800-2,200 crore, with 25-30 products targeted by FY28 and initial revenue starting as early as Q2 FY27.
2. MMA capacity expansion - Fuel additives capacity was expanded from 290 to 360 KTPA, completed July 2026, with utilisation in the 65-85% band in Q1 FY27 and expected to reach high levels in Q2 FY27. Aarti is the global volume leader in MMA, and the U.S. tariff cut from 50%+ to 18%+ should improve realizations in the next contract negotiations.
3. SABIC backward integration - Aarti is setting up a ₹200-250 crore plant at Dahej to manufacture a key feedstock in-house under an amended 15-year exclusive supply agreement, with commissioning expected around September-October 2027. This adds a fixed margin for the residual contract period without materially changing topline.
4. $150 million agrochemical contract - A multi-year supply agreement with a top global agrochemical innovator runs through March 2030, with revenue of approximately USD 150 million over the period, serviced by existing capacity. This lifts utilisation and volumes without incremental capex.
5. Augene JV ramp-up - The 50:50 JV with Superform Chemistries is at near-commissioning stage, with first raw material sale completed and operations starting in Q2 FY27, targeting steady-state revenue of ₹300-400 crore. The JV targets import substitution in amine derivatives for coatings and dyes, with a higher margin profile than Aarti's existing portfolio, and its EBITDA is included in the FY28 guidance of ₹1,800 crore.
6. DCB debottlenecking - Capacity is being expanded from 120 to 140 KTPA to capture PPS demand growth in the EV segment, with volumes already supported by PDCB and downstream demand. The DCB chain had decent margins in Q1 FY27.
7. Capex decline - FY27 capex of ₹700-800 crore is sharply lower than FY26's ₹1,125 crore, with no large projects beyond Zone 4 in the pipeline. Net debt is anticipated to decline this year, and debt-to-EBITDA has likely peaked.