Aarti Industries shares jump 6% after securing $150 million deal; key details

Aarti Industries Ltd shares climbed 6 per cent in Thursday’s trade following the announcement of a massive new supply contract for agrochemicals used in crop protection.

At 1:03 pm, shares of Aarti Industries were trading 5.39 per cent higher at Rs 453.55 apiece on BSE, after rising as much as 5.96 per cent to touch day’s high of Rs 456, up from its previous close of Rs 430.35 per share. The counter has gained over 20% in the last three months.

In a stock exchange filing during market hours, dated March 12, the specialty chemicals manufacturer confirmed a multi-year deal with a leading global agrochemical innovator. Through this agreement, Aarti Industries will supply a critical agrochemical intermediate used heavily in crop protection formulations. 

According to the exchange filing, this new arrangement is expected to pull in approximately USD 150 million in revenue over the life of the contract, giving the firm strong revenue visibility for the medium to long term. 

“This agreement elevates the current annual engagement to a structured supply contract through 31st March 2030, with a significant increase in volumes,” the company said.

Aarti Industries noted in the filing that it already holds adequate production capacities to handle this massive order. Consequently, the company will benefit from higher capacity utilisation and increased volumes without having to deploy any incremental capital expenditures (capex).

Suyog Kotecha, CEO of Aarti Industries Limited, said "This medium-term agreement further reinforces Aarti Industries' position as a trusted partner to global agrochemical innovators."

He added, "The agreement enhances our long-term earnings visibility and reflects continued progress in strengthening our speciality chemicals portfolio through high-value, sustainable partnerships."