Agarwal Industrial Corporation Limited (AICL), a leading manufacturer and trader of bitumen and allied products, has reported a sharp decline in earnings for the first quarter of FY26, with profit after tax falling 67 per cent year-on-year.

For the quarter ended 30 June 2025, consolidated revenue stood at Rs 5.95 billion compared with Rs 7.09 billion in Q1 FY25, marking a 16 per cent decline. EBITDA dropped 39 per cent to Rs 380 million, while profit after tax fell to Rs 130 million from Rs 390 million a year earlier. Margins contracted, with EBITDA at 6.4 per cent against 8.7 per cent and net margin at 2.2 per cent compared with 5.5 per cent.

The company attributed the weaker performance to external disruptions, including the India–Pakistan war, geopolitical tensions in the Middle East, and an early monsoon that slowed construction activity. Bitumen volumes were 124,614 metric tonnes during the quarter, delivered across seven port locations with bulk storage capacity of 30,500 metric tonnes. Segment revenues were led by bitumen at Rs 4.96 billion, followed by shipping at Rs 720 million, logistics at Rs 160 million, petroleum at Rs 130 million, and wind and others at Rs 30 million.

Despite headwinds, AICL said it remains confident of long-term demand as the Indian government targets infrastructure investments of Rs 7 trillion by FY26, scaling to Rs 10 trillion annually thereafter under programmes such as Bharatmala and PM Gati Shakti. The goal of building 100 kilometres of roads per day is expected to sustain strong demand for bitumen.