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AARTI Industries Ltd
(AARTIIND)
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Rating:47Neutral
Price Target:
₹462.00
▼(-11.94% Downside)
Action:Reiterated
Date:09/16/26
The score is held back primarily by weak cash generation (sharp operating cash flow decline and persistently negative free cash flow) alongside rising leverage, which increases financial risk despite the 2026 revenue rebound. Technicals add pressure with a bearish trend (price below key moving averages and negative MACD), while valuation is only middling due to a high P/E and very low dividend yield.
Positive Factors
Revenue Recovery
The 2026 revenue rebound indicates improving demand after weaker prior periods and provides a stronger base for operating recovery. If sustained across the company’s end markets, renewed top-line growth can improve capacity utilization and support earnings expansion over the next several quarters.
Negative Factors
Weak Cash Conversion
The sharp operating cash-flow decline and persistently negative free cash flow show that reported profits are not translating into spendable cash. Continued weak conversion can constrain internally funded investment, increase dependence on financing, and reduce flexibility during periods of softer demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Recovery
The 2026 revenue rebound indicates improving demand after weaker prior periods and provides a stronger base for operating recovery. If sustained across the company’s end markets, renewed top-line growth can improve capacity utilization and support earnings expansion over the next several quarters.
Read all positive factors
AARTI Industries Ltd (AARTIIND) vs. iShares MSCI India ETF (INDA)
Market Cap
₹157.96B
Dividend Yield0.23%
Average Volume (3M)34.20K
Price to Earnings (P/E)29.7
Beta (1Y)1.35
Revenue Growth27.05%
EPS Growth123.98%
CountryIN
Employees6,100
SectorGeneral
Sector StrengthN/A
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)14.65
Shares Outstanding362,741,360
10 Day Avg. Volume38,144
30 Day Avg. Volume34,201
Financial Highlights & Ratios
PEG Ratio1.30
Price to Book (P/B)2.43
Price to Sales (P/S)1.75
P/FCF Ratio-25.74
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)14.47
Revenue Forecast (FY)₹97.78B
AARTI Industries Ltd Business Overview & Revenue Model
Company Description
Aarti Industries Limited, established in 1984 and headquartered in Mumbai, India, is a prominent manufacturer and supplier of both specialty chemicals and pharmaceutical products. The company's chemical division produces a wide array of compounds ...
How the Company Makes Money
Aarti Industries primarily makes money by manufacturing chemical intermediates and specialty chemicals and selling them to domestic and international customers, typically other manufacturers that use these products as inputs in pharmaceuticals, ag...
AARTI Industries Ltd Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
52
Neutral
Cash Flow
33
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 90.11B | 82.86B | 71.31B | 61.92B | 64.92B | 51.91B |
| Gross Profit | 25.61B | 20.41B | 17.56B | 15.34B | 17.98B | 15.89B |
| EBITDA | 12.93B | 11.79B | 9.78B | 9.65B | 10.28B | 16.87B |
| Net Income | 5.31B | 4.19B | 3.31B | 4.16B | 5.45B | 11.86B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 132.99B | 111.14B | 96.16B | 85.81B | 78.51B |
| Cash, Cash Equivalents and Short-Term Investments | 6.09B | 6.19B | 3.11B | 1.28B | 1.99B | 1.71B |
| Total Debt | 0.00 | 49.66B | 38.47B | 32.42B | 29.07B | 25.87B |
| Total Liabilities | -59.55B | 73.44B | 55.09B | 43.25B | 36.60B | 33.33B |
| Stockholders Equity | 59.55B | 59.55B | 56.05B | 52.90B | 49.20B | 45.17B |
Cash Flow | ||||||
| Free Cash Flow | -350.00M | -5.62B | -1.44B | -1.24B | -75.60M | -6.47B |
| Operating Cash Flow | 5.57B | 5.62B | 12.42B | 12.04B | 13.19B | 5.19B |
| Investing Cash Flow | -5.43B | -11.46B | -13.98B | -13.69B | -13.30B | -11.69B |
| Financing Cash Flow | -690.00M | 9.62B | -730.00M | 4.20B | 382.10M | 4.12B |
AARTI Industries Ltd Technical Analysis
Negative
524.65
Price Trends
487.94
Negative
486.16
Negative
460.29
Negative
Market Momentum
-14.51
Positive
37.22
Neutral
22.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AARTIIND, the sentiment is Negative. The current price of 524.65 is above the 20-day moving average (MA) of 465.11, above the 50-day MA of 487.94, and above the 200-day MA of 460.29, indicating a bearish trend. The MACD of -14.51 indicates Positive momentum. The RSI at 37.22 is Neutral, neither overbought nor oversold. The STOCH value of 22.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AARTIIND.
AARTI Industries Ltd Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ₹102.97B | 22.94 | ― | 0.86% | 5.09% | 5.44% | |
70 Neutral | ₹154.84B | 35.84 | ― | 0.22% | 7.26% | 5.73% | |
62 Neutral | ₹147.89B | 19.18 | ― | 0.60% | 18.15% | 42.38% | |
61 Neutral | ₹215.08B | 90.95 | ― | ― | 33.79% | 34.24% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | ₹129.99B | 74.35 | ― | 0.13% | 51.77% | 36.90% | |
47 Neutral | ₹157.96B | 29.74 | ― | 0.23% | 27.05% | 123.98% |
* General Sector Average
IN:AARTIIND
AARTI Industries Ltd
435.45
56.20
14.82%
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-39.44%
AARTI Industries Ltd Corporate Events
Aarti Industries Files Q1 FY27 Investor Presentation With Stock Exchanges
Jul 30, 2026
Aarti Industries Ltd. has released its Q1 FY27 results presentation and submitted it to both the BSE and National Stock Exchange in Mumbai in line with SEBI listing regulations. The investor document is intended to update shareholders and analysts...
Aarti Industries Unveils Leadership Shift to Bolster Governance and Growth
Jul 30, 2026
Aarti Industries Limited has announced a significant leadership transition aimed at strengthening its governance framework and supporting long-term growth. The Board has approved the elevation of current CEO and Executive Director Suyog Kotecha to...
Aarti Industries to Host Investor Call on Q1 FY27 Results
Jul 21, 2026
Aarti Industries Limited has scheduled a quarterly earnings conference call for investors and analysts on Friday, July 31, 2026, at 12:30 p.m. IST to discuss its Q1 FY27 results, which will be declared a day earlier. The call will feature a manage...
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.