Archean Chemical Industries Ltd. (ACI) AI Stock Analysis

• Market Cap: ₹68.02B
• Dividend Yield: 0.78%
• Average Volume (3M): 8.93K
• Price to Earnings (P/E): 48.5
• Beta (1Y): 0.72
• Revenue Growth: -3.15%
• EPS Growth: -22.30%
• Country: IN
• Employees: 288
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 1.90
• Shares Outstanding: 123,458,400
• 10 Day Avg. Volume: 6,499
• 30 Day Avg. Volume: 8,929
• PEG Ratio: -0.81
• Price to Book (P/B): 3.47
• Price to Sales (P/S): 6.21
• P/FCF Ratio: -74.07
• 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): 12.3
• Revenue Forecast (FY): ₹11.18B

• Rating: 58 Neutral
• Price Target: ₹599.00 ▲(6.55% Upside)
• Action: Reiterated Date: 12/03/25
• Date: Action: Reiterated 12/03/25

Archean Chemical Industries Ltd. faces significant challenges, primarily due to bearish technical indicators and valuation concerns. The stock is currently underperforming in the market, as indicated by its technical analysis. Financial performance shows operational efficiency but is hindered by revenue and cash flow issues. The high P/E ratio suggests potential overvaluation, while the dividend yield offers limited income. Addressing these challenges could improve the stock's outlook.

Positive Factors

Operational efficiency / gross margins

A robust gross profit margin reflects durable cost control in core manufacturing. This supports healthy EBIT/EBITDA margins and provides buffer versus raw-material swings, enabling the business to sustain operating profitability over multiple quarters even if revenue growth is uneven.

Improved leverage & equity position

Significantly improved debt-to-equity and a solid equity ratio enhance financial resilience. Lower leverage reduces interest burden and increases flexibility to fund capex, manage cyclicality, or tolerate short-term cashflow weakness without forcing dilutive financing or asset sales.

Specialty chemicals portfolio and end-market exposure

Concentration in bromine, industrial salts and SOP gives structural demand from industrial and agricultural chains. These staple inputs create recurring revenue potential and differentiation versus commodity chemical peers, supporting steadier long-term volumes and customer relationships.

Negative Factors

Inconsistent revenue growth

Inconsistent and recently declining revenue undermines scalability and makes margin recovery harder. Without stable top-line growth, fixed-cost absorption and investment plans are constrained, increasing reliance on short-term pricing or volume recovery to restore sustainable profitability.

Weak free cash flow conversion

Negative recent free cash flow and poor conversion of reported income into cash limit internal funding for capex, working capital, and shareholder returns. Persistent FCF weakness pressures liquidity and could force higher borrowing or reduced reinvestment in growth projects.

Declining ROE and net profit margin pressure

A falling ROE alongside compressing net margins signals declining capital efficiency. This reduces long-term returns to shareholders and constrains management's ability to invest profitably, making it harder to fund growth or maintain dividends without operational turnaround.

Archean Chemical Industries Ltd. Business Overview & Revenue Model

Company Description

Archean Chemical Industries Limited manufactures and sells specialty marine chemicals in India and internationally. It offers bromine for use in pharmaceuticals, agrochemicals, water treatment products, flame retardants, additives, oil and gas industry, and energy storage batteries; industrial salt, a raw material for use in chemical industry for production of sodium carbonate, caustic soda, hydrochloric acid, chlorine, bleaching powders, chlorates, sodium sulphate, and sodium metal; and sulphate of potash for use as a fertilizer, as well as for medical uses. The company was founded in 2003 and is based in Chennai, India.

How the Company Makes Money

Archean Chemical Industries Ltd. generates revenue through multiple key streams, primarily by manufacturing and selling a range of chemical products to various industries. Its revenue model is based on the production of both bulk and specialty chemicals, which are sold to clients in sectors such as agriculture, water treatment, and industrial manufacturing. The company also benefits from strategic partnerships with key players in the industry, enhancing its market reach and distribution capabilities. Additionally, ACI's commitment to innovation and quality allows it to maintain competitive pricing and secure long-term contracts, contributing significantly to its earnings.

Archean Chemical Industries Ltd. Financial Statement Overview

Summary

Archean Chemical Industries Ltd. shows a combination of strengths and weaknesses across its financial statements. The income statement demonstrates solid operational efficiency but faces challenges in revenue growth and profitability. The balance sheet reflects improved leverage and financial stability, despite a decline in return on equity. Cash flow management needs improvement to ensure sustainable liquidity. Overall, the company is positioned well in terms of operational efficiency but must address revenue and cash flow challenges to enhance financial health.

Income Statement

Archean Chemical Industries Ltd. has demonstrated a mixed performance in its income statement. The gross profit margin is robust, indicating effective cost management. However, the net profit margin has decreased due to declining revenue and increased operational costs, impacting profitability. Revenue growth has been inconsistent, with declines in recent years, which pose a risk to future profitability. The EBIT and EBITDA margins remain healthy, reflecting strong operational efficiency.

Balance Sheet

The balance sheet shows a strong equity position with a solid equity ratio, indicating financial stability. The debt-to-equity ratio has significantly improved over the years, suggesting reduced leverage and better financial health. However, the return on equity has declined, implying less efficient use of equity capital. Overall, the balance sheet portrays a stable financial position with manageable liabilities.

Cash Flow

The cash flow analysis reveals challenges in maintaining positive free cash flow, as seen in the most recent negative figures. Operating cash flow remains strong, indicating good cash generation from core operations. However, the free cash flow to net income ratio indicates inefficiencies in converting income into cash flow, which could impact liquidity if not addressed. The company needs to manage capital expenditures more effectively to improve cash flow stability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	11.21B	10.41B	13.30B	14.40B	11.30B	7.39B
Gross Profit	10.85B	10.49B	12.16B	14.37B	8.50B	5.62B
EBITDA	3.17B	3.11B	5.06B	6.77B	4.79B	2.76B
Net Income	1.58B	1.62B	3.19B	3.83B	1.88B	666.06M
Balance Sheet
Total Assets	0.00	23.93B	20.56B	17.55B	15.31B	14.32B
Cash, Cash Equivalents and Short-Term Investments	2.43B	2.55B	3.95B	2.31B	695.11M	555.29M
Total Debt	0.00	2.35B	978.23M	693.85M	9.00B	9.06B
Total Liabilities	-18.64B	5.29B	3.54B	3.24B	12.69B	13.60B
Stockholders Equity	18.64B	18.64B	17.02B	14.31B	2.62B	723.83M
Cash Flow
Free Cash Flow	0.00	-873.38M	1.71B	3.96B	2.18B	1.09B
Operating Cash Flow	0.00	1.76B	3.79B	4.96B	3.15B	1.19B
Investing Cash Flow	0.00	-2.46B	-3.07B	-2.90B	-1.10B	-17.52M
Financing Cash Flow	0.00	649.80M	-325.69M	-2.12B	-2.24B	-1.10B

Archean Chemical Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 562.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ACI, the sentiment is Negative. The current price of 562.2 is below the 20-day moving average (MA) of 576.42, above the 50-day MA of 554.23, and below the 200-day MA of 614.70, indicating a bearish trend. The MACD of 4.10 indicates Positive momentum. The RSI at 43.61 is Neutral, neither overbought nor oversold. The STOCH value of 52.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ACI.

Archean Chemical Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNFC	70 Outperform	₹64.82B	10.73	―	3.68%	-7.53%	42.74%
GSFC	68 Neutral	₹65.69B	9.72	―	2.80%	15.25%	26.49%
PRIVISCL	64 Neutral	₹116.29B	39.53	―	0.15%	24.25%	96.45%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
REFEX	60 Neutral	₹29.42B	18.09	―	0.19%	21.67%	25.86%
GUJALKALI	59 Neutral	₹34.52B	-402.78	―	3.11%	10.35%	―
ACI	58 Neutral	₹68.02B	48.52	―	0.78%	-3.15%	-22.30%

Archean Chemical Industries Ltd. Corporate Events

Archean Chemical Posts Earnings Call Recording for December 2025 Results

Archean Chemical Industries Limited has announced that the audio recording of its earnings conference call discussing the company’s unaudited consolidated and standalone financial results for the quarter and nine months ended 31 December 2025 is now available on its website. The disclosure, made in line with SEBI’s listing and disclosure regulations, enhances transparency for investors and other stakeholders by providing direct access to management’s commentary and insights on the company’s recent financial performance.

Archean Chemical Schedules Q3 and Nine-Month FY26 Earnings Call for 6 February

Archean Chemical Industries Limited has announced that it will hold an earnings call on Friday, 6 February 2026 at 11:30 a.m. IST to discuss its operational and financial performance for the quarter and nine months ended 31 December 2025. Senior leadership, including the executive vice chairman, managing director, executive director, chief financial officer and a senior finance executive, will participate in the call, underscoring the importance of this interaction for investors and analysts as the company updates stakeholders on its recent performance and outlook.

Archean Chemical Extends Rs 150-Crore Loan to Subsidiary to Fast-Track Semiconductor Project

Archean Chemical Industries Ltd. has entered into a Rs 150 crore unsecured loan agreement with its wholly owned subsidiary Neun Infra Private Ltd. to provide interim funding support for its semiconductor-focused activities. Neun Infra is the holding company of SiCSem Private Ltd., which has received approval under the India Semiconductor Mission to set up a compound semiconductor and ATMP manufacturing facility, and the funding will enable procurement of long-lead machinery, equipment, and related project expenditures, as well as silicon carbide R&D in collaboration with IIT Bhubaneswar, ahead of the formal fiscal support agreement with the Government of India. The loan, part of a sanctioned Rs 300 crore facility with Rs 157 crore outstanding, carries a 7.5% annual interest rate, is repayable over five years starting in FY 2029-30, and is structured as an arm’s-length related-party transaction, underscoring Archean Chemical’s strategic push into semiconductor manufacturing and its intent to maintain project timelines under the national mission framework.