Aarti Surfactants Ltd. (AARTISURF) AI Stock Analysis

• Market Cap: ₹3.51B
• Dividend Yield: 0.25%
• Average Volume (3M): 774.00
• Price to Earnings (P/E): 19.6
• Beta (1Y): 1.58
• Revenue Growth: 28.46%
• EPS Growth: -2.09%
• Country: IN
• Employees: 334
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 4.32
• Shares Outstanding: 8,464,995
• 10 Day Avg. Volume: 430
• 30 Day Avg. Volume: 774
• PEG Ratio: -0.69
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.54
• P/FCF Ratio: -38.87
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ₹498.00 ▲(28.42% Upside)

The score is driven primarily by solid financial performance (revenue growth and improving operating margins) offset by low net profitability, leverage risk, and volatile free cash flow. Technicals are mixed due to overbought signals and negative MACD despite strength versus shorter-term moving averages. Valuation is neutral-to-slightly weak, with a moderate P/E but minimal dividend yield.

Positive Factors

Revenue & margin improvement

Sustained revenue growth alongside rising EBIT/EBITDA margins indicates improving operating leverage and better product mix or cost control. Over a 2–6 month horizon this supports stronger cash generation potential and resilience to modest demand volatility.

Strong cash conversion

High operating cash flow relative to net income shows effective conversion of earnings into cash, supporting capital reinvestment, working-capital needs and debt servicing. This durable trait reduces refinancing risk and underpins sustainable operations.

Specialty surfactant franchise

Positioning in specialty surfactants for home and personal care supplies essential inputs to stable end markets. Long-term structural demand, technical product requirements and B2B supply relationships support stickier revenue and potential pricing/innovation advantages.

Negative Factors

Low net profitability

A persistently low net margin constrains retained earnings and limits the firm's ability to self-fund growth or build buffers against commodity cost swings. Over months this compresses flexibility for investment, dividends, or absorbing adverse cost shocks.

High liabilities / leverage risk

Consistently high liabilities increase financial leverage and interest exposure, reducing balance-sheet flexibility. In a higher-rate or slower-demand environment this elevates refinancing and solvency risk and can pressure margins and strategic options.

Free cash flow volatility

A material FCF decline from elevated capex introduces volatility in liquidity and limits near-term capacity for deleveraging or distributions. If capex cadence remains uneven, it raises refinancing and operational risk across medium-term planning horizons.

Aarti Surfactants Ltd. Business Overview & Revenue Model

Company Description

Aarti Surfactants Limited, together with its subsidiary, Aarti HPC limited, produces and supplies ionic and non-ionic, and specialty surfactants for the home and personal care, agro and oil, and industrial applications in India and internationally. The company's products include surfactants, mild surfactants, rheology modifiers, pearlizing agents, UV filters, preservatives, syndet and soap bases, and active ingredients, as well as conditioning agents, blends, proteins, and quats. It serves skin care, oral, hair, cosmetics, bath and shower, sun care, fabric/laundry care, dishwashing, toilet care, and surface care markets. The company was formerly known as Arti Surfactants Limited. Aarti Surfactants Limited was incorporated in 2018 and is headquartered in Mumbai, India.

How the Company Makes Money

Aarti Surfactants Ltd. generates revenue through the production and sale of surfactants and specialty chemicals, with key revenue streams coming from both domestic and international markets. The company has established long-term partnerships with major players in the personal care and home care industries, which contribute significantly to its sales volume. Additionally, AARTISURF benefits from economies of scale in manufacturing, enabling competitive pricing for its products. The firm also invests in research and development to create innovative solutions that meet evolving customer demands, thereby driving growth and enhancing its market presence.

Aarti Surfactants Ltd. Financial Statement Overview

Summary

Income statement strength (Score 80) shows solid revenue growth and improving EBIT/EBITDA margins, but net profit margin remains low (~2.2%). Balance sheet (Score 75) is stable with rising equity, though consistently high liabilities add leverage risk. Cash flow (Score 65) has positive operating cash flow and decent cash conversion, but free cash flow dropped materially in 2025 due to higher capex, increasing volatility risk.

Income Statement

Aarti Surfactants Ltd. has shown a consistent revenue growth with notable improvement in EBIT and EBITDA margins over the years. The revenue growth rate from 2024 to 2025 was approximately 12.5%, indicating a positive trajectory. However, the net profit margin is relatively low at around 2.2% due to high operating expenses impacting net income.

Balance Sheet

The company maintains a stable debt-to-equity ratio, with a slight increase in stockholders' equity over the years. Return on equity is moderate, reflecting the effective use of shareholder investments. However, the total liabilities have been consistently high, suggesting potential leverage risks.

Cash Flow

Operating cash flow has been positive, though there was a significant decrease in free cash flow in 2025 due to higher capital expenditures. The operating cash flow to net income ratio is over 0.75, indicating good cash conversion. However, the volatility in free cash flow growth poses a risk to liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.32B	6.59B	5.90B	5.97B	5.70B	4.63B
Gross Profit	1.30B	1.25B	658.04M	1.27B	794.12M	741.92M
EBITDA	499.41M	419.18M	621.92M	477.40M	324.31M	455.06M
Net Income	152.68M	145.45M	213.27M	127.05M	54.95M	216.34M
Balance Sheet
Total Assets	0.00	4.77B	4.22B	4.02B	4.02B	3.84B
Cash, Cash Equivalents and Short-Term Investments	12.07M	12.07M	63.15M	76.89M	14.29M	67.32M
Total Debt	0.00	1.10B	992.09M	1.49B	1.62B	1.52B
Total Liabilities	-2.33B	2.45B	2.04B	2.34B	2.67B	2.51B
Stockholders Equity	2.33B	2.33B	2.18B	1.68B	1.36B	1.33B
Cash Flow
Free Cash Flow	0.00	-90.98M	356.08M	139.31M	7.76M	-256.61M
Operating Cash Flow	0.00	111.38M	519.61M	247.84M	233.18M	358.26M
Investing Cash Flow	0.00	-161.63M	-162.19M	85.61M	-225.41M	-614.87M
Financing Cash Flow	0.00	-3.67M	-371.15M	-270.86M	-60.80M	315.88M

Aarti Surfactants Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 387.80
• 50DMA: Positive
• 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:AARTISURF, the sentiment is Negative. The current price of 387.8 is below the 20-day moving average (MA) of 396.98, below the 50-day MA of 403.20, and below the 200-day MA of 480.56, indicating a neutral trend. The MACD of 2.94 indicates Negative momentum. The RSI at 50.70 is Neutral, neither overbought nor oversold. The STOCH value of 25.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AARTISURF.

Aarti Surfactants Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AARTISURF	69 Neutral	₹3.51B	19.63	―	0.25%	28.46%	-2.09%
RAMAPHO	65 Neutral	₹5.37B	10.23	―	0.46%	22.68%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GENUSPAPER	50 Neutral	₹3.01B	40.44	―	―	23.58%	154.81%
DIAMINESQ	43 Neutral	₹2.47B	-48.27	―	0.38%	―	―
GOACARBON	43 Neutral	₹3.44B	-5.67	―	5.02%	-19.25%	-220.20%

Aarti Surfactants Ltd. Corporate Events

Aarti Surfactants Clears Q3 FY26 Results, Withdraws Promoter Reclassification Move

Aarti Surfactants Limited’s board has approved the unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, and will publish these numbers in newspapers in line with securities regulations, underscoring ongoing transparency for shareholders and creditors. In the same meeting, the board also acknowledged Valiant Organics Limited’s decision to remain classified as part of Aarti Surfactants’ promoter group and accordingly withdrew the earlier promoter re-classification application, maintaining the existing promoter-shareholding structure and signalling continuity in the company’s ownership profile.

Aarti Surfactants Expands Equity Through Employee Stock Options

Aarti Surfactants Limited has announced the allotment of 6,500 equity shares under its Employee Stock Option Plan 2024, following the exercise of stock options by eligible employees. This move increases the company’s paid-up equity share capital to Rs. 8,46,49,950, reflecting its commitment to employee engagement and retention through stock incentives, potentially strengthening its market position.