AARTIIND Q1 FY27 Guidance vs Delivery (AARTIIND Management Mirror)

FY27 Capex Guided at Rs 700-800 Crore; Zone 4 Commissioning Delayed by 3-6 Months Amid Labor Constraints

In the Sep'25 Qtr concall, management guided FY26 Capex at approximately Rs 1,000 crore, with FY27 Capex expected to be substantially lower. In the Dec'25 Qtr concall, FY26 Capex guidance was upgraded to approximately Rs 1,100 crore driven by fast-track expansions, with total Zone 4 Capex estimated at Rs 1,600 crore to Rs 1,800 crore. In the Jun'26 Qtr concall, management initiated FY27 Capex guidance in the range of Rs 700 crore to Rs 800 crore (Rs 180 crore deployed in Q1 FY27), noting Capex intensity is expected to reduce significantly starting in FY28. Regarding capacity, the MMA/fuel additives expansion from 290+ KT to 360 KT was initially targeted for Q4 FY26 and reported as completed in the Jun'26 Qtr concall. The DCB debottlenecking (120 KTPA to 140 KTPA) and PEDA project were fast-tracked, with PEDA expected to commercialize very soon as of the Jun'26 Qtr. The Zone 4 multi-purpose plant was initially expected in Q4 FY26, but in the Jun'26 Qtr concall, management noted a 3-to-6-month delay due to labor shortages, election issues, and monsoon disruptions, with product out now expected in Aug'26 and ramp-up of five chemistry blocks slated for FY28 and FY29.