AARTI Industries Ltd (AARTIIND) AI Stock Analysis

• Market Cap: ₹139.76B
• Dividend Yield: 0.25%
• Average Volume (3M): 43.31K
• Price to Earnings (P/E): 59.0
• Beta (1Y): 1.34
• Revenue Growth: 8.26%
• EPS Growth: -34.62%
• Country: IN
• Employees: 6,100
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 2.60
• Shares Outstanding: 362,593,870
• 10 Day Avg. Volume: 31,142
• 30 Day Avg. Volume: 43,307
• PEG Ratio: -2.09
• Price to Book (P/B): 2.53
• Price to Sales (P/S): 1.95
• P/FCF Ratio: -98.36
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: ₹414.00 ▲(5.26% Upside)

AARTI Industries Ltd has a solid financial performance with strong revenue growth and cash flow management, but faces challenges with profitability and leverage. The technical indicators suggest a neutral trend with weak momentum. The high P/E ratio and low dividend yield indicate potential overvaluation and limited income potential. These factors combine to give the stock a moderate score.

AARTI Industries Ltd Business Overview & Revenue Model

Company Description

AARTI Industries Ltd (AARTIIND) is a leading Indian manufacturer and supplier of specialty chemicals and pharmaceuticals. Established in 1984, the company operates primarily in two segments: the Chemicals Division and the Pharmaceuticals Division. AARTIIND is known for its diverse range of products, including basic chemicals, specialty chemicals, and active pharmaceutical ingredients (APIs). The company serves various industries, such as agrochemicals, plastics, textiles, and pharmaceuticals, contributing to its significant presence in both domestic and international markets.

How the Company Makes Money

AARTI Industries generates revenue through the production and sale of a wide array of chemical products and pharmaceutical ingredients. The company’s revenue model is built on several key streams, including the sale of specialty chemicals, which cater to various sectors like agrochemicals and plastics, and APIs that serve the pharmaceutical industry. Additionally, AARTIIND benefits from long-term supply contracts with both domestic and international clients, which provide stable revenue inflows. The company has also established strategic partnerships and collaborations that enhance its product offerings and market reach, contributing to its overall earnings. Furthermore, AARTIIND’s focus on research and development enables it to innovate and expand its product portfolio, which is crucial for maintaining competitive advantage and capturing new market opportunities.

AARTI Industries Ltd Financial Statement Overview

Summary

AARTI Industries Ltd shows a positive financial trajectory with notable revenue growth and improved cash flow generation. However, the decline in net profit margin and return on equity indicate areas of concern that need addressing. The increase in leverage heightens financial risk, though the company's solid equity base provides a cushion. Overall, the financials reflect a company with strong operational performance and cash management, but with potential risks associated with profitability and leverage.

Income Statement

AARTI Industries Ltd has demonstrated consistent revenue growth from 2020 to 2025, with a noticeable increase from 63,710 million to 72,710 million in 2025, translating to a revenue growth rate of approximately 14.11% from the previous year. However, the gross profit margin has decreased from 23.9% in 2020 to 36.0% in 2025, indicating improved efficiency in cost management. The net profit margin has decreased from 13.1% to 4.55%, suggesting challenges in maintaining bottom-line profitability. The EBIT margin is stable at 7.79%, while the EBITDA margin is 13.97%, reflecting solid operational performance.

Balance Sheet

The company's debt-to-equity ratio has increased from 0.71 in 2020 to 0.69 in 2025, indicating a rise in leverage. Despite this, the equity ratio remains healthy at approximately 50.4%, showing a strong equity base. Return on Equity (ROE) has decreased from 18.0% to 5.9%, pointing to declining efficiency in generating profits from shareholders' equity. While the balance sheet reflects a solid equity foundation, the increase in leverage could pose potential risks if not managed effectively.

Cash Flow

AARTI Industries has improved its free cash flow from negative in prior years to 12,420 million in 2025, demonstrating a significant turnaround. The operating cash flow to net income ratio is 3.75, indicating strong cash generation from operations. The free cash flow to net income ratio is 3.75 as well, underscoring efficient conversion of net income into free cash flow. The positive trend in cash flow metrics suggests robust cash management and operational efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	70.91B	72.71B	63.71B	65.41B	60.11B	44.64B
Gross Profit	24.69B	26.16B	8.86B	17.98B	18.12B	10.53B
EBITDA	9.21B	10.16B	9.65B	10.35B	16.87B	9.73B
Net Income	2.37B	3.31B	4.16B	5.45B	11.86B	5.23B
Balance Sheet
Total Assets	0.00	111.14B	96.16B	85.81B	78.51B	76.42B
Cash, Cash Equivalents and Short-Term Investments	2.95B	3.11B	1.28B	1.99B	1.71B	4.10B
Total Debt	0.00	38.47B	32.42B	29.07B	25.87B	28.62B
Total Liabilities	-56.05B	55.09B	43.25B	36.60B	33.33B	41.27B
Stockholders Equity	56.05B	56.05B	52.90B	49.20B	45.17B	35.03B
Cash Flow
Free Cash Flow	0.00	-1.44B	-1.24B	-75.60M	-6.47B	-4.42B
Operating Cash Flow	0.00	12.42B	12.04B	13.19B	5.19B	8.73B
Investing Cash Flow	0.00	-13.98B	-13.69B	-13.30B	-11.69B	-13.22B
Financing Cash Flow	0.00	-730.00M	4.20B	382.10M	4.12B	6.14B

AARTI Industries Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 393.30
• 50DMA: Positive
• 100DMA: Negative
• 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:AARTIIND, the sentiment is Positive. The current price of 393.3 is above the 20-day moving average (MA) of 380.58, above the 50-day MA of 382.19, and below the 200-day MA of 417.87, indicating a neutral trend. The MACD of 1.90 indicates Negative momentum. The RSI at 61.03 is Neutral, neither overbought nor oversold. The STOCH value of 61.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:AARTIIND.

AARTI Industries Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VESUVIUS	65 Neutral	₹100.23B	39.98	―	0.30%	12.22%	-1.10%
AARTIIND	62 Neutral	₹139.76B	58.96	―	0.25%	8.26%	-34.62%
BAYERCROP	62 Neutral	₹217.34B	36.68	―	2.72%	15.23%	-11.06%
PRIVISCL	62 Neutral	₹116.50B	43.66	―	0.15%	24.25%	96.45%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALKYLAMINE	61 Neutral	₹93.53B	51.34	―	0.55%	3.95%	8.28%
DEEPAKNTR	57 Neutral	₹238.82B	39.35	―	0.43%	-2.76%	-29.72%

AARTI Industries Ltd Corporate Events

Aarti Industries Announces Virtual AGM and Releases Annual Report

Aarti Industries Limited has announced that its 42nd Annual General Meeting (AGM) will be held on August 25, 2025, through video conferencing, in compliance with regulatory guidelines. The company has made its Integrated Annual Report for the financial year 2024-2025 available online and is ensuring that shareholders are informed through electronic means, reflecting its commitment to transparency and stakeholder engagement.

Aarti Industries Releases 2024-25 Sustainability Report

Aarti Industries Limited has released its Business Responsibility and Sustainability Report for the financial year 2024-25, in compliance with SEBI regulations. This report highlights the company’s commitment to sustainable practices and responsible business operations, reflecting its strategic focus on integrating sustainability into its core business activities. The report’s release is significant for stakeholders as it underscores Aarti Industries’ dedication to environmental, social, and governance (ESG) criteria, potentially enhancing its industry positioning and investor confidence.