AARTI Industries Ltd (AARTIIND) AI Stock Analysis

• Market Cap: ₹133.94B
• Dividend Yield: 0.27%
• Average Volume (3M): 43.31K
• Price to Earnings (P/E): 46.0
• Beta (1Y): 1.26
• Revenue Growth: 8.26%
• EPS Growth: -34.62%
• Country: IN
• Employees: 6,100
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 2.91
• Shares Outstanding: 362,593,870
• 10 Day Avg. Volume: 31,142
• 30 Day Avg. Volume: 43,307
• PEG Ratio: -2.09
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 1.95
• P/FCF Ratio: -98.36
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹414.00 ▲(12.07% Upside)

AARTI Industries Ltd has a solid financial performance with strong revenue growth and cash flow management, but faces challenges with profitability and leverage. The technical indicators suggest a neutral trend with weak momentum. The high P/E ratio and low dividend yield indicate potential overvaluation and limited income potential. These factors combine to give the stock a moderate score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Management

Strong cash flow management enhances financial stability and provides funds for reinvestment and debt reduction, supporting sustainable growth.

Operational Efficiency

Improved cost management and operational efficiency strengthen profitability, allowing the company to better withstand market fluctuations.

Negative Factors

Declining Profit Margins

Decreasing profit margins may signal challenges in cost control or pricing power, potentially impacting long-term profitability.

Rising Leverage

Higher leverage increases financial risk and can limit flexibility in funding operations or growth initiatives, affecting long-term stability.

Declining ROE

A declining ROE suggests reduced efficiency in using equity capital to generate profits, potentially impacting investor confidence and growth prospects.

AARTI Industries Ltd Business Overview & Revenue Model

Company Description

Aarti Industries Limited manufactures and sells specialty chemicals and pharmaceuticals in India. It offers di chloro benzene, nitro chloro and nitro benzene, nitro toluenes, sulphur, and other organic and inorganic products that are used in the manufacture of intermediates with applications in agrochemicals, pharmaceuticals, polymer additives, fuel additives, FMCG, dyes, pigments, paints, printing inks, rubber chemicals, resins, and other speciality chemical applications. The company also provides active pharmaceutical ingredients, which have applications in anti-hypertensive, anti asthamatic, anti-cancer, anti thalassaemic, analgesic, ophthalmologic, and calcimimetics; central nervous system agents; and skin care and decongestant products. In addition, it offers intermediates; and xanthine derivatives, such as caffeine anhydrous, theophylline, aminophylline, acephylline piperazine, choline theophylline, doxofylline, DMAU, and theobromine derivatives, as well as contract manufacturing and research services. The company also exports its products to approximately 60 countries in North America, Europe, China, Japan, and internationally. Aarti Industries Limited was incorporated in 1984 and is headquartered in Mumbai, India.

How the Company Makes Money

AARTI Industries generates revenue through the production and sale of a wide array of chemical products and pharmaceutical ingredients. The company’s revenue model is built on several key streams, including the sale of specialty chemicals, which cater to various sectors like agrochemicals and plastics, and APIs that serve the pharmaceutical industry. Additionally, AARTIIND benefits from long-term supply contracts with both domestic and international clients, which provide stable revenue inflows. The company has also established strategic partnerships and collaborations that enhance its product offerings and market reach, contributing to its overall earnings. Furthermore, AARTIIND’s focus on research and development enables it to innovate and expand its product portfolio, which is crucial for maintaining competitive advantage and capturing new market opportunities.

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	70.91B	72.71B	63.71B	65.41B	60.11B	44.64B
Gross Profit	24.69B	26.16B	8.86B	17.98B	18.12B	10.53B
EBITDA	9.21B	10.16B	9.78B	10.28B	16.87B	9.73B
Net Income	2.37B	3.31B	4.16B	5.45B	11.86B	5.23B
Balance Sheet
Total Assets	0.00	111.14B	96.16B	85.81B	78.51B	76.42B
Cash, Cash Equivalents and Short-Term Investments	2.95B	3.11B	1.28B	1.99B	1.71B	4.10B
Total Debt	0.00	38.47B	32.42B	29.07B	25.87B	28.62B
Total Liabilities	-56.05B	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	-1.44B	-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	-13.69B	-13.30B	-11.69B	-13.22B
Financing Cash Flow	0.00	-730.00M	4.20B	382.10M	4.12B	6.14B

AARTI Industries Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 369.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 369.4 is above the 20-day moving average (MA) of 368.99, below the 50-day MA of 378.01, and below the 200-day MA of 409.35, indicating a neutral trend. The MACD of -4.30 indicates Negative momentum. The RSI at 48.20 is Neutral, neither overbought nor oversold. The STOCH value of 57.94 is Neutral, 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
VESUVIUS	65 Neutral	₹93.72B	38.44	―	0.32%	16.07%	-6.83%
PRIVISCL	64 Neutral	₹120.53B	45.18	―	0.16%	24.25%	96.45%
AARTIIND	62 Neutral	₹133.94B	46.02	―	0.27%	8.26%	-34.62%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALKYLAMINE	61 Neutral	₹82.26B	45.15	―	0.62%	3.95%	8.28%
BAYERCROP	61 Neutral	₹193.72B	31.81	―	2.90%	8.92%	5.06%
DEEPAKNTR	52 Neutral	₹227.29B	42.77	―	0.45%	-7.50%	-37.67%

AARTI Industries Ltd Corporate Events

Aarti Industries to Engage with Investors at Avendus Conference

Aarti Industries Limited announced its participation in the Avendus Spark INDX: Annual Investor Conference, scheduled for November 18, 2025, at the Grand Hyatt, Kalina, Mumbai. This event, which will include a mix of one-on-one and group meetings, is part of the company’s ongoing efforts to engage with analysts and investors, potentially impacting its market visibility and investor relations.

Aarti Industries Releases Q2 FY26 Financial Results

Aarti Industries Ltd has released its Investor Presentation detailing the unaudited financial results for the second quarter of the fiscal year 2026. This announcement provides stakeholders with insights into the company’s financial performance and strategic direction, highlighting its commitment to maintaining excellence and exploring future growth opportunities.