The stock of chemical company Aarti Industries is witnessing a huge decline of up to 10% on Monday. Earlier, this stock has seen a decline of 8% on Friday and 2% on Thursday. So far in 3 sessions, this stock has slipped by about 16%. On Friday, before the release of the second quarter results, the stock saw a decline. Today, after the poor results, the stock is trading with a decline of about 10%.

The company has reduced its EBITDA guidance for the current financial year from ₹1,400 crores to ₹1,050 crores. The company estimates that EBITDA could be between ₹1,800 crores and ₹2,200 crores by the financial year 2028. Major pressure on margins and profits Aarti Industries' income growth has been 12% year-on-year. During this period, the company's EBITDA increased by 16% from ₹196 crores to ₹233 crores. EBITDA margin remained at 12% with a pressure of 400 basis points. The company's profit has fallen by about 43% from around ₹90 crores to ₹51 crores on a year-on-year basis. The company's performance has been affected due to a major drop in the margin of the company's important product Mono Methyl Aniline (MMA). Where is the positive growth? MMA margins have been affected due to low utilization amid high channel inventory. MMA volumes have slipped by 35% on a quarterly basis. The company's margins have also come under pressure due to new capacity in China. However, the company also said that except the energy segment, all other segments have seen strong growth during the second quarter.