Aarti Pharmalabs Limited (AARTIPHARM) AI Stock Analysis

• Market Cap: ₹75.45B
• Dividend Yield: 0.6%
• Average Volume (3M): 12.32K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 0.83
• Revenue Growth: -0.20%
• EPS Growth: 18.28%
• Country: IN
• Employees: 2,095
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 5.46
• Shares Outstanding: 90,641,230
• 10 Day Avg. Volume: 5,445
• 30 Day Avg. Volume: 12,318
• PEG Ratio: 0.98
• Price to Book (P/B): 3.43
• Price to Sales (P/S): 3.23
• P/FCF Ratio: -96.96
• 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

• Rating: 67 Neutral
• Price Target: ₹902.00 ▲(7.08% Upside)

Aarti Pharmalabs Limited demonstrates strong financial performance with robust growth and profitability, but faces challenges with negative free cash flow. Technical indicators suggest bearish momentum, and the valuation is moderate with a low dividend yield. The absence of earnings call and corporate events data limits additional insights.

Aarti Pharmalabs Limited Business Overview & Revenue Model

Company Description

Aarti Pharmalabs Limited (AARTIPHARM) is a leading global pharmaceutical company based in India, primarily engaged in the manufacture and supply of active pharmaceutical ingredients (APIs) and specialty chemicals. The company operates across various sectors, including pharmaceuticals, agrochemicals, and fine chemicals, catering to a diverse customer base that includes major multinational corporations. AARTIPHARM specializes in producing a wide range of products, including anti-infectives, anti-diabetics, and cardiovascular medications, while focusing on quality, innovation, and compliance with international standards.

How the Company Makes Money

Aarti Pharmalabs generates revenue through multiple streams, primarily by manufacturing and selling APIs to pharmaceutical companies worldwide. The company has established significant partnerships with leading global pharmaceutical firms, which contribute to consistent demand for its products. Additionally, AARTIPHARM's revenue model is supported by its capability to provide custom synthesis and contract manufacturing services, allowing clients to outsource their production needs. The company also benefits from its diversified product portfolio across various therapeutic segments, which helps mitigate risks associated with market fluctuations. Other revenue sources may include the sale of specialty chemicals and agrochemical products, particularly to industries seeking high-quality intermediates and formulations.

Aarti Pharmalabs Limited Financial Statement Overview

Summary

Aarti Pharmalabs Limited shows strong revenue growth and profitability, with improved gross and net profit margins. The balance sheet is stable with low leverage, but negative free cash flow due to high capital expenditures poses potential liquidity challenges.

Income Statement

Aarti Pharmalabs Limited has demonstrated robust revenue growth with a significant increase from INR 18.16 billion in 2024 to INR 21.15 billion in 2025, reflecting a growth rate of approximately 16%. The gross profit margin improved to 46.67% in 2025, indicating effective cost management. Net profit margin also increased to 12.88%, showcasing enhanced profitability. However, the EBIT and EBITDA margins, although strong at 17.85% and 21.95% respectively, highlight that there is room for further operational efficiency improvements.

Balance Sheet

The company's balance sheet is solid with a debt-to-equity ratio of 0.21 in 2025, reflecting a conservative leverage approach. The equity ratio stands at 68.48%, indicating a strong equity position relative to total assets. Return on equity (ROE) has improved to 13.69%, signaling effective use of shareholders' capital. Overall, the balance sheet reflects stability and financial health, with low levels of risk from leverage.

Cash Flow

While operating cash flow has increased year-over-year, the free cash flow remains negative due to high capital expenditures. The free cash flow to net income ratio is -0.26, suggesting that current earnings are not translating into free cash flow, which could pose liquidity challenges. The operating cash flow to net income ratio of 1.22 indicates that the company's operations are generating cash, albeit not sufficiently to cover capital investments.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.46B	21.15B	18.16B	19.45B	11.92B	0.00
Gross Profit	9.87B	9.87B	3.91B	4.14B	3.12B	0.00
EBITDA	4.71B	4.74B	3.91B	3.44B	1.98B	-45.96K
Net Income	2.66B	2.72B	2.17B	1.93B	1.22B	-45.96K
Balance Sheet
Total Assets	0.00	29.06B	25.82B	22.44B	20.40B	2.50M
Cash, Cash Equivalents and Short-Term Investments	562.06M	562.06M	940.33M	631.11M	832.73M	2.50M
Total Debt	0.00	4.13B	2.85B	2.15B	3.41B	173.00K
Total Liabilities	-19.90B	9.16B	8.25B	6.86B	6.53B	232.71K
Stockholders Equity	19.90B	19.90B	17.57B	15.58B	13.86B	2.27M
Cash Flow
Free Cash Flow	0.00	-704.76M	175.69M	1.30B	-1.85B	0.00
Operating Cash Flow	0.00	3.32B	2.16B	2.50B	-437.04M	0.00
Investing Cash Flow	0.00	-4.14B	-2.15B	-1.58B	-1.39B	0.00
Financing Cash Flow	0.00	654.35M	97.23M	-1.63B	2.60B	0.00

Aarti Pharmalabs Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 842.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AARTIPHARM, the sentiment is Negative. The current price of 842.4 is above the 20-day moving average (MA) of 834.82, below the 50-day MA of 855.65, and above the 200-day MA of 804.92, indicating a neutral trend. The MACD of -6.33 indicates Negative momentum. The RSI at 45.66 is Neutral, neither overbought nor oversold. The STOCH value of 22.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:AARTIPHARM.

Aarti Pharmalabs Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUROPHARMA	―	₹630.26B	18.58	―	0.36%	7.76%	-2.84%
CIPLA	―	₹1.27T	23.63	―	0.82%	6.40%	25.27%
AARTIPHARM	―	₹75.45B	28.69	―	0.60%	-0.20%	18.28%
LAURUSLABS	―	₹485.71B	95.39	―	0.16%	25.83%	421.20%
AARTIDRUGS	―	₹45.16B	23.27	―	0.20%	-0.03%	21.33%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
GLENMARK	―	₹522.88B	69.69	―	0.13%	10.99%	―

Aarti Pharmalabs Limited Corporate Events

Aarti Pharmalabs Submits SEBI Compliance Certificate for Q3 2025

Aarti Pharmalabs Limited, a company involved in the pharmaceutical industry, has submitted a certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended September 30, 2025. This certificate, provided by their Registrar and Share Transfer Agent, MUFG Intime India Private Limited, confirms the dematerialization status of securities and their listing on stock exchanges. The announcement indicates compliance with regulatory requirements, ensuring transparency and proper record-keeping for stakeholders.

Aarti Pharmalabs Schedules Analyst and Investor Meeting

Aarti Pharmalabs Limited, a company involved in the pharmaceutical industry, has announced a scheduled meeting with analysts and institutional investors on September 24, 2025. This meeting is part of their compliance with SEBI regulations and aims to provide insights into the company’s operations without sharing any unpublished price-sensitive information. The announcement indicates the company’s commitment to transparency and engagement with stakeholders, although details of the meeting are subject to change due to potential exigencies.

Aarti Pharmalabs Awaits Clarification on Financial Discrepancies

Aarti Pharmalabs Limited has been asked by the Exchange to provide clarification regarding discrepancies in the financial results submitted for the quarter ending June 30, 2025, in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company’s response is currently awaited, which may impact its compliance status and stakeholder confidence.

Aarti Pharmalabs Expands with New Manufacturing Facility in Gujarat

Aarti Pharmalabs Limited has inaugurated the first phase of its new state-of-the-art manufacturing facility in Atali, Gujarat, marking a significant milestone in its growth strategy. This facility, with a reactor capacity of 440 kL, is expected to serve as a growth engine for the company’s CDMO/CMO business and enhance its intermediates capacity, with future scalability up to 8-10 times. The new site will help the company strengthen its product portfolio and serve large pharmaceutical companies, aligning with its revenue goal of Rs. 1000 crores and commitment to specialized pharmaceutical needs.