AARTI Industries Ltd (AARTIIND) AI Stock Analysis

• Market Cap: ₹134.91B
• Dividend Yield: 0.27%
• Average Volume (3M): 101.04K
• Price to Earnings (P/E): 56.9
• Beta (1Y): 1.37
• Revenue Growth: 4.09%
• EPS Growth: -51.04%
• Country: IN
• Employees: 6,100
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Chemicals - Specialty
• EPS (TTM): 1.20
• Shares Outstanding: 362,553,300
• 10 Day Avg. Volume: 158,633
• 30 Day Avg. Volume: 101,042
• PEG Ratio: -2.09
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 1.95
• P/FCF Ratio: 11.41
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹484.33
• Price Target Upside: 26.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 61 Neutral
• Price Target: ₹443.00 ▲(15.71% Upside)

AARTI Industries Ltd’s stock is influenced mainly by its strong operational performance and cash management, indicated by a solid financial performance score. However, technical indicators reflect a bearish trend, and the high P/E ratio suggests overvaluation, bringing risks to potential investors. The lack of earnings call and corporate event data means these areas have not contributed to the overall score.

AARTI Industries Ltd Business Overview & Revenue Model

Company Description

AARTI Industries Ltd (AARTIIND) is a leading Indian chemical manufacturing company that operates in the chemical industry. The company specializes in the production of benzene-based intermediates, pharmaceuticals, and performance chemicals. With a diverse portfolio, AARTI Industries caters to various sectors, including agrochemicals, polymers, pigments, pharmaceuticals, and dyes, serving both domestic and international markets.

How the Company Makes Money

AARTI Industries Ltd generates revenue through the sale of its wide range of chemical products. The company has a robust revenue model that involves manufacturing and supplying high-quality specialty chemicals, intermediates, and APIs (Active Pharmaceutical Ingredients). Key revenue streams include long-term contracts with major global players, strategic partnerships, and exports to international markets. The company's diverse product line and strong R&D capabilities enable it to serve multiple industries, ensuring a steady flow of income. Additionally, AARTI Industries benefits from economies of scale and operational efficiencies, contributing to its profitability and growth.

AARTI Industries Ltd Financial Statement Overview

Summary

AARTI Industries Ltd shows a positive financial trajectory with notable revenue growth and improved cash flow generation. However, the decline in net profit margin and return on equity indicate areas of concern that need addressing. The increase in leverage heightens financial risk, though the company's solid equity base provides a cushion. Overall, the financials reflect a company with strong operational performance and cash management, but with potential risks associated with profitability and leverage.

Income Statement

AARTI Industries Ltd has demonstrated consistent revenue growth from 2020 to 2025, with a noticeable increase from 63,710 million to 72,710 million in 2025, translating to a revenue growth rate of approximately 14.11% from the previous year. However, the gross profit margin has decreased from 23.9% in 2020 to 36.0% in 2025, indicating improved efficiency in cost management. The net profit margin has decreased from 13.1% to 4.55%, suggesting challenges in maintaining bottom-line profitability. The EBIT margin is stable at 7.79%, while the EBITDA margin is 13.97%, reflecting solid operational performance.

Balance Sheet

The company's debt-to-equity ratio has increased from 0.71 in 2020 to 0.69 in 2025, indicating a rise in leverage. Despite this, the equity ratio remains healthy at approximately 50.4%, showing a strong equity base. Return on Equity (ROE) has decreased from 18.0% to 5.9%, pointing to declining efficiency in generating profits from shareholders' equity. While the balance sheet reflects a solid equity foundation, the increase in leverage could pose potential risks if not managed effectively.

Cash Flow

AARTI Industries has improved its free cash flow from negative in prior years to 12,420 million in 2025, demonstrating a significant turnaround. The operating cash flow to net income ratio is 3.75, indicating strong cash generation from operations. The free cash flow to net income ratio is 3.75 as well, underscoring efficient conversion of net income into free cash flow. The positive trend in cash flow metrics suggests robust cash management and operational efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	72.71B	72.71B	63.71B	64.92B	60.98B	44.64B
Gross Profit	24.01B	26.16B	15.38B	17.98B	19.04B	10.53B
EBITDA	10.11B	10.16B	9.57B	10.35B	16.87B	9.73B
Net Income	3.31B	3.31B	4.16B	5.45B	11.86B	5.23B
Balance Sheet
Total Assets	111.14B	111.14B	96.16B	85.81B	78.51B	76.42B
Cash, Cash Equivalents and Short-Term Investments	3.11B	3.11B	1.28B	1.99B	1.71B	4.10B
Total Debt	38.47B	38.47B	32.42B	29.07B	25.87B	28.62B
Total Liabilities	55.09B	55.09B	43.25B	36.60B	33.33B	41.27B
Stockholders Equity	56.05B	56.05B	52.90B	49.20B	45.17B	35.03B
Cash Flow
Free Cash Flow	0.00	12.42B	-1.24B	-75.60M	-6.47B	-4.42B
Operating Cash Flow	0.00	12.42B	12.04B	13.19B	5.19B	8.73B
Investing Cash Flow	0.00	-13.98B	-13.10B	-13.30B	-11.69B	-13.22B
Financing Cash Flow	0.00	-730.00M	347.40M	382.10M	4.12B	6.14B

AARTI Industries Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 382.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AARTIIND, the sentiment is Negative. The current price of 382.85 is below the 20-day moving average (MA) of 412.46, below the 50-day MA of 443.73, and below the 200-day MA of 436.41, indicating a bearish trend. The MACD of -20.74 indicates Positive momentum. The RSI at 32.45 is Neutral, neither overbought nor oversold. The STOCH value of 16.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AARTIIND.

AARTI Industries Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALKYLAMINE	69 Neutral	₹106.27B	57.09		0.48%	9.11%	24.90%
VESUVIUS	67 Neutral	₹105.08B	41.20		0.27%	12.37%	7.00%
PRIVISCL	66 Neutral	₹94.99B	43.66		0.21%	21.50%	78.82%
AARTIIND	61 Neutral	₹134.91B	56.92		0.27%	4.09%	-51.04%
DEEPAKNTR	60 Neutral	₹254.14B	36.45		0.40%	-23.95%	-29.72%
BAYERCROP	57 Neutral	₹253.12B	42.72		2.22%	15.23%	-11.06%
Sector *	44 Neutral	C$923.76M	-8.68	-0.23%	2.69%	24.53%	-41.45%

AARTI Industries Ltd Corporate Events

Aarti Industries Announces Virtual AGM and Releases Annual Report

Aarti Industries Limited has announced that its 42nd Annual General Meeting (AGM) will be held on August 25, 2025, through video conferencing, in compliance with regulatory guidelines. The company has made its Integrated Annual Report for the financial year 2024-2025 available online and is ensuring that shareholders are informed through electronic means, reflecting its commitment to transparency and stakeholder engagement.

Aarti Industries Releases 2024-25 Sustainability Report

Aarti Industries Limited has released its Business Responsibility and Sustainability Report for the financial year 2024-25, in compliance with SEBI regulations. This report highlights the company’s commitment to sustainable practices and responsible business operations, reflecting its strategic focus on integrating sustainability into its core business activities. The report’s release is significant for stakeholders as it underscores Aarti Industries’ dedication to environmental, social, and governance (ESG) criteria, potentially enhancing its industry positioning and investor confidence.