Aether Industries Ltd. (AETHER) AI Stock Analysis

• Market Cap: ₹132.86B
• Dividend Yield: N/A
• Average Volume (3M): 18.17K
• Price to Earnings (P/E): 68.3
• Beta (1Y): 0.49
• Revenue Growth: 52.08%
• EPS Growth: 141.54%
• Country: IN
• Employees: 970
• Sector: Technology
• Sector Strength: 88
• Industry: Chemicals - Specialty
• EPS (TTM): 4.25
• Shares Outstanding: 132,657,330
• 10 Day Avg. Volume: 2,570
• 30 Day Avg. Volume: 18,170
• PEG Ratio: 0.77
• Price to Book (P/B): 4.92
• Price to Sales (P/S): 13.02
• P/FCF Ratio: -31.07
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: ₹1,102.00 ▲(16.40% Upside)

Aether Industries Ltd. shows strong financial performance with solid revenue growth and profitability. The technical indicators suggest a strong upward trend, although the stock may be overbought. Valuation metrics indicate the stock is overvalued, which could limit upside potential. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Revenue Growth

Sustained >50% reported revenue growth indicates strong demand and successful market penetration. Over the next 2-6 months this supports scale economics, strengthens customer relationships, and underpins reinvestment capacity to expand product lines and geographic reach if management sustains execution.

Healthy Margins

Consistently strong gross and improving net margins reflect effective production efficiency and cost control. These margin improvements are durable advantages that support higher retained earnings, buffer against input cost volatility, and enable funding for R&D or selective capex without eroding profitability.

Low Leverage

A conservative capital structure with low debt and a strong equity base provides financial flexibility. This sustains investment capacity, reduces refinancing risk, and enables strategic moves (M&A, capacity adds) during cycles while preserving creditworthiness and shareholder optionality long-term.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow driven by heavy capex risks funding strain if investment payback lags. Over months this constrains the ability to return cash, increases reliance on external financing, and raises execution risk that capex will generate sufficient incremental operating cash.

Cash Conversion Shortfall

Weak conversion of reported earnings into operating cash points to working-capital or receivables inefficiencies. Structurally, this can limit free cash generation, make earnings less reliable as a funding source, and require management focus to tighten collections and inventory turns.

Asset Utilization

Suboptimal asset utilization suggests the company may not be extracting full revenue or margin potential from invested capital. If not improved, this can depress returns on assets and equity, reduce capital efficiency of future capex, and weaken long-term profitability despite strong top-line growth.

Aether Industries Ltd. Business Overview & Revenue Model

Company Description

Aether Industries Limited manufactures and sells advanced intermediates and specialty chemicals in India and internationally. The company offers 4-(2-Methoxyethyl) phenol (4MEP), N-Octyl-D-glucamine/1- deoxy-1-(Octylamino)-DGlucitol (NODG), ortho tolyl benzo nitrile/4'- Methyl-2-cyanobiphynyl (OTBN), thiophene-2-ethanol (T2E), 1-2-(2Hydroxyethoxy) ethyl piperazine (HEEP), delta-valerolactone (DVL), and bifenthrin alcohol products. It serves pharmaceutical, agrochemical, material science, coating, high performance photography, additive, and oil and gas industries. In addition, the company provides contract research and manufacturing services. Aether Industries Limited was incorporated in 2013 and is headquartered in Surat, India.

How the Company Makes Money

Aether Industries generates revenue through the sale of its specialty chemicals and advanced material products to various industries, including electronics and pharmaceuticals. Key revenue streams include direct sales to manufacturers, long-term contracts with major corporations, and partnerships with research institutions for product development. The company also benefits from a growing demand for sustainable materials, which positions it well for future growth. Strategic partnerships with industry leaders enhance its market reach and drive innovation, contributing significantly to its earnings.

Aether Industries Ltd. Financial Statement Overview

Summary

Aether Industries Ltd. displays strong financial health with consistent revenue growth and profitability improvements. The balance sheet is solid, with prudent debt management and strong equity. Cash flow management is the key area for enhancement, focusing on converting income into positive free cash flow.

Income Statement

The company has shown robust revenue growth, with a significant increase from the previous year. The Gross Profit Margin stands strong, indicating efficient production processes. The Net Profit Margin has improved, reflecting enhanced profitability. However, the EBIT and EBITDA Margins, though healthy, could improve further.

Balance Sheet

Aether Industries maintains a solid equity base, with an impressive Equity Ratio. The Debt-to-Equity Ratio is low, suggesting cautious leveraging. Return on Equity is commendable, indicating effective use of shareholder funds. However, there's room for optimizing asset utilization.

Cash Flow

The Free Cash Flow remains negative, largely due to high capital expenditures, which indicates a potential for future growth. The Operating Cash Flow has improved, but the ratio to Net Income suggests further optimization is necessary. Cash flow management remains an area for improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.17B	8.41B	6.00B	6.54B	5.93B	4.52B
Gross Profit	4.34B	3.89B	2.75B	3.34B	3.01B	2.18B
EBITDA	2.74B	2.39B	1.30B	1.87B	1.70B	1.13B
Net Income	1.76B	1.58B	824.90M	1.30B	1.09B	711.19M
Balance Sheet
Total Assets	0.00	26.44B	24.01B	13.80B	7.70B	4.53B
Cash, Cash Equivalents and Short-Term Investments	2.40B	2.40B	5.56B	1.04B	352.61M	278.28M
Total Debt	0.00	2.00B	1.83B	157.14M	2.91B	2.11B
Total Liabilities	-22.26B	4.18B	3.37B	1.35B	3.83B	2.79B
Stockholders Equity	22.26B	22.26B	20.63B	12.45B	3.87B	1.74B
Cash Flow
Free Cash Flow	-2.52B	-3.52B	-4.44B	-4.08B	-1.57B	-737.99M
Operating Cash Flow	482.06M	1.00B	-164.58M	-65.59M	-54.42M	231.96M
Investing Cash Flow	-2.86B	-4.18B	-4.24B	-3.48B	-1.51B	-765.93M
Financing Cash Flow	-303.99M	19.18M	8.94B	4.39B	1.69B	553.60M

Aether Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 946.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AETHER, the sentiment is Positive. The current price of 946.75 is below the 20-day moving average (MA) of 982.14, above the 50-day MA of 913.59, and above the 200-day MA of 805.62, indicating a bullish trend. The MACD of 23.91 indicates Positive momentum. The RSI at 63.89 is Neutral, neither overbought nor oversold. The STOCH value of 77.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:AETHER.

Aether Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AETHER	70 Outperform	₹132.86B	68.31	―	―	52.08%	141.54%
NETWEB	67 Neutral	₹178.18B	99.98	―	0.08%	47.18%	38.90%
SYRMA	66 Neutral	₹146.75B	49.93	―	0.20%	1.30%	111.88%
HAPPSTMNDS	62 Neutral	₹62.95B	31.77	―	1.26%	21.31%	-16.27%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MAPMYINDIA	61 Neutral	₹72.25B	49.36	―	0.21%	22.12%	7.40%
ASTRAMICRO	51 Neutral	₹93.24B	57.88	―	0.24%	11.44%	23.56%

Aether Industries Ltd. Corporate Events

Aether Industries Engages Investors at JM Financial India Conference

Aether Industries Ltd. participated in the JM Financial India Conference in Mumbai on November 19, 2025, where company officials engaged in group and one-on-one meetings with various investors. The discussions were centered around publicly available information, ensuring compliance with regulations by not sharing any unpublished price-sensitive information. This engagement highlights Aether Industries’ proactive approach in maintaining transparency and fostering investor relations, which could positively impact its market positioning and stakeholder confidence.

Aether Industries to Engage in Mumbai Investor Conferences

Aether Industries Ltd. has announced its participation in several investor conferences in Mumbai, scheduled for November 2025. These conferences include the Avendus Spark INDX, JM Financial India Conference, and Kotak Midcap Conference. The company aims to engage with investors through one-on-one and group meetings, although no unpublished price-sensitive information will be discussed. This participation is part of Aether’s strategy to strengthen its investor relations and potentially enhance its market positioning.