Archean Chemical Industries Ltd. (ACI) AI Stock Analysis

• Market Cap: ₹74.12B
• Dividend Yield: 0.78%
• Average Volume (3M): 8.93K
• Price to Earnings (P/E): 72.7
• Beta (1Y): 0.48
• 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: ₹624.00 ▲(10.99% 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

Specialty product mix

Archean's focus on bromine, industrial salt and SOP gives it durable exposure to multiple end markets (industrial chemicals and agriculture). This product diversification supports steadier demand across cycles, lowering single-market dependency and anchoring long-term revenue streams.

Healthy operating margins

Robust gross margins and healthy EBIT/EBITDA indicate structural cost control and operational efficiency in manufacturing. Sustained margin strength provides resilience versus input-cost volatility and supports reinvestment capacity and earnings stability over the medium term.

Improved leverage and equity base

A stronger equity ratio and reduced leverage materially improve financial flexibility. Lower debt burden reduces interest and refinancing risks, enabling the firm to fund capex or absorb shocks, and supports credit access for growth or working capital needs.

Negative Factors

Inconsistent revenue trends

Irregular revenue and recent declines undermine the sustainability of earnings and make planning capex or long-term investments harder. Persistent top-line weakness can erode scale advantages, pressure margins over time, and impair the firm's ability to capture market share in core segments.

Weak free cash flow conversion

Negative or inconsistent free cash flow despite solid operating cash flow signals capital expenditure timing or working capital inefficiencies. Poor FCF conversion limits internal funding for growth, dividends, or deleveraging and raises reliance on external financing in downturns.

Declining ROE and net margins

Falling ROE and shrinking net margins indicate reduced capital efficiency and margin compression from rising operating costs. Over time this can lower returns to shareholders, constrain reinvestment, and signal competitive pressures or less effective expense management.

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

ACI makes money primarily by manufacturing and selling specialty chemical products—most notably bromine and industrial salt—along with sulphate of potash (SOP). Revenue is generated through customer contracts and purchase orders for these products, with pricing and volumes driven by industrial demand in end-use sectors that consume bromine derivatives and industrial salts, and agricultural demand for SOP. If the company has any significant partnerships, long-term offtake arrangements, customer concentration details, or segment-wise revenue splits, those specifics are not available in the provided context and are therefore null.

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: Positive
• Last Price: 562.20
• 50DMA: Positive
• 100DMA: Positive
• 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:ACI, the sentiment is Positive. The current price of 562.2 is below the 20-day moving average (MA) of 564.77, above the 50-day MA of 560.18, and below the 200-day MA of 610.97, indicating a neutral trend. The MACD of 4.90 indicates Negative momentum. The RSI at 60.13 is Neutral, neither overbought nor oversold. The STOCH value of 77.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹59.83B	12.10	―	3.68%	-7.53%	42.74%
GSFC	68 Neutral	₹61.41B	11.49	―	2.80%	15.25%	26.49%
GUJALKALI	64 Neutral	₹39.52B	-46.40	―	3.11%	10.35%	―
PRIVISCL	64 Neutral	₹114.68B	35.11	―	0.15%	24.25%	96.45%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
REFEX	60 Neutral	₹27.54B	16.52	―	0.19%	21.67%	25.86%
ACI	58 Neutral	₹74.12B	72.75	―	0.78%	-3.15%	-22.30%

Archean Chemical Industries Ltd. Corporate Events

Archean Chemical to Merge Two Idealis Subsidiaries in Group Reorganisation

Archean Chemical Industries Ltd. has approved the merger of its wholly owned subsidiary Idealis Chemicals Pvt. Ltd. with Idealis Mudchemie Pvt. Ltd., a wholly owned subsidiary of Idealis and step-down subsidiary of Archean. Both entities, headquartered in Chennai, hold asset bases of roughly Rs 97 crore and Rs 112 crore respectively, with Idealis Mudchemie already generating operating revenue.

The transaction, structured under the Companies Act and other applicable Indian laws, is an internal reorganisation within the group and qualifies as a related-party merger, though it is exempt from certain related-party transaction provisions. By consolidating the two subsidiaries, Archean is expected to simplify its corporate structure and potentially streamline operations and reporting within its chemicals portfolio, without triggering additional shareholder approval requirements.

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.