Aaron Industries Ltd. (AARON) AI Stock Analysis

Aaron Industries Ltd.

(NSE:AARON)

Select Model

Rating:58Neutral

Price Target:INR 127.00▼(-6.73% Downside)

Action:reiterated

Date:10/26/26

The score is primarily supported by solid underlying fundamentals (strong revenue growth and decent operating profitability), but is constrained by margin compression and uneven cash-flow conversion. Technicals are also a notable drag with the stock trading below key moving averages and negative MACD, while valuation (high P/E and low yield) provides limited support.

Positive Factors

Strong Revenue GrowthRevenue has expanded substantially over several years, demonstrating meaningful business scaling and continued demand through 2026. This larger revenue base can support operating leverage, broaden commercial reach, and provide a durable platform for future earnings growth if execution remains consistent.

Negative Factors

Margin CompressionProfitability weakened in 2026 even as revenue increased, with lower net margins and declining net income pointing to cost pressure or unfavorable business mix. If this pattern persists, it could reduce earnings conversion, constrain reinvestment, and weaken the benefits of continued sales growth.

Aaron Industries Ltd. (AARON) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 2.78B
Dividend Yield: 0.39%
Average Volume (3M): 14.73K
Price to Earnings (P/E): 32.2
Beta (1Y): 0.50
Revenue Growth: 21.63%
EPS Growth: 39.68%
Country: India
Employees: 204
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

Aaron Industries Ltd. Business Overview & Revenue Model

Company Description

Aaron Industries Limited, an Indian company established in 2013 and based in Surat, specializes in the manufacturing and distribution of elevators and their associated components across India. The firm's operations are segmented into three primary di...

Aaron Industries Ltd. Financial Statement Overview

Summary

Strong multi-year revenue scaling and healthy operating/EBITDA margins support the score. Offsetting factors are the 2026 profitability step-down (net margin down versus 2024–2025 and net income falling despite higher sales), moderate but still sizable absolute debt, and a volatile cash-flow history with large free-cash-flow swings.

Income Statement

72Positive

Balance Sheet

66Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	972.02M	920.05M	779.30M	631.81M	558.50M	377.29M
Gross Profit	230.69M	214.94M	191.47M	210.33M	176.90M	114.00M
EBITDA	191.25M	176.87M	150.32M	111.66M	96.54M	59.03M
Net Income	83.01M	67.97M	82.43M	63.31M	54.04M	37.09M
Balance Sheet
Total Assets	0	911.78M	828.24M	746.79M	387.62M	297.02M
Cash, Cash Equivalents and Short-Term Investments	115.00K	31.61M	1.31M	870.00K	479.00K	348.00K
Total Debt	0	277.48M	318.57M	315.62M	113.73M	91.54M
Total Liabilities	-486.12M	425.66M	397.94M	388.37M	182.83M	138.13M
Stockholders Equity	486.12M	486.12M	430.30M	358.43M	204.79M	158.89M
Cash Flow
Free Cash Flow	10.29M	59.57M	7.80M	-277.39M	-7.99M	-19.19M
Operating Cash Flow	20.35M	78.64M	87.69M	56.04M	40.71M	11.74M
Investing Cash Flow	-9.14M	-19.11M	-80.04M	-332.58M	-48.36M	-30.75M
Financing Cash Flow	-11.97M	-60.72M	-7.21M	276.94M	7.78M	19.14M

Aaron Industries Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price136.17

Price Trends

50DMA127.30Positive

100DMA125.98Positive

200DMA134.78Negative

Market Momentum

MACD0.11Negative

RSI54.58Neutral

STOCH65.08Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AARON, the sentiment is Positive. The current price of 136.17 is above the 20-day moving average (MA) of 125.47, above the 50-day MA of 127.30, and above the 200-day MA of 134.78, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 54.58 is Neutral, neither overbought nor oversold. The STOCH value of 65.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:AARON.

Aaron Industries Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:AARON against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:PIXTRANS	75Outperform	INR 22.20B	16.96	―	0.55%	4.81%	16.32%
IN:JASH	68Neutral	INR 30.53B	35.37	―	0.33%	1.36%	4.42%
IN:GALAPREC	63Neutral	INR 13.18B	35.65	―	―	31.83%	41.03%
IN:AARON	58Neutral	INR 2.70B	32.25	―	0.39%	21.63%	39.68%
IN:SHANTIGEAR	57Neutral	INR 35.88B	62.05	―	0.85%	-14.22%	-37.57%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:ROTO	55Neutral	INR 11.07B	40.01	―	0.32%	-3.87%	-18.80%

* General Sector Average

Performance Comparison

IN:AARON and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:AARON	Aaron Industries Ltd.	128.67	-73.63	-36.40%
IN:GALAPREC	Gala Precision Engineering Limited	1028.00	273.45	36.24%
IN:JASH	Jash Engineering Ltd.	483.15	12.21	2.59%
IN:PIXTRANS	PIX Transmissions Ltd	1629.10	171.97	11.80%
IN:ROTO	Roto Pumps Limited	58.76	-11.20	-16.01%
IN:SHANTIGEAR	Shanthi Gears Limited	467.70	-7.21	-1.52%

Aaron Industries Ltd. Corporate Events

Aaron Industries schedules Q1 FY27 earnings conference call for August 17

Aug 10, 2026

Aaron Industries Ltd. has announced that it will host an earnings conference call on August 17, 2026, to discuss its financial results for the quarter ended June 30, 2026, corresponding to the first quarter of FY27. The management team will lead the...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 26, 2026

Aaron Industries Ltd. AI Stock Analysis