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Aarti Pharmalabs Limited
(AARTIPHARM)
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Rating:56Neutral
Price Target:
₹846.00
▲(0.43% Upside)
Action:Reiterated
Date:08/11/26
The score is held back primarily by moderate financial performance—recent revenue/earnings softness, higher FY2026 leverage, and negative free cash flow—despite a strong technical uptrend. Valuation also weighs on the score due to a high P/E and low dividend yield.
Positive Factors
Regulated API focus
Aarti Pharmalabs' core business is manufacturing regulated APIs and high-purity intermediates, which requires compliance, customer qualification and quality systems. Those factors create higher entry barriers, longer customer relationships and structural demand from pharma supply chains over months to years.
Negative Factors
Recent revenue decline
A ~4.5% revenue decline and sharply lower net income in FY2026 represent a clear weakening in demand or pricing for the company's molecules. If this trend persists, it undermines cash generation, pressures margins and complicates medium-term planning for capacity and contract commitments.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated API focus
Aarti Pharmalabs' core business is manufacturing regulated APIs and high-purity intermediates, which requires compliance, customer qualification and quality systems. Those factors create higher entry barriers, longer customer relationships and structural demand from pharma supply chains over months to years.
Read all positive factors
Aarti Pharmalabs Limited (AARTIPHARM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹75.16B
Dividend Yield0.48%
Average Volume (3M)71.13K
Price to Earnings (P/E)35.2
Beta (1Y)0.80
Revenue Growth1.20%
EPS Growth-20.03%
CountryIN
Employees2,421
SectorGeneral
Sector StrengthN/A
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)23.51
Shares Outstanding90,679,810
10 Day Avg. Volume29,548
30 Day Avg. Volume71,130
Financial Highlights & Ratios
PEG Ratio-0.92
Price to Book (P/B)2.71
Price to Sales (P/S)3.16
P/FCF Ratio-30.89
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)N/A
Revenue Forecast (FY)N/A
Aarti Pharmalabs Limited Business Overview & Revenue Model
Company Description
Aarti Pharmalabs Limited, together with its subsidiaries, manufactures and sells active pharmaceutical ingredients, pharmaceutical intermediates, and xanthine derivatives in India and internationally. The company offers active pharmaceutical ingre...
How the Company Makes Money
Aarti Pharmalabs primarily makes money by manufacturing and selling APIs and pharmaceutical intermediates. Revenue is generated from: (1) Sales of APIs: supplying regulated, high-value ingredients used by pharmaceutical companies in finished dosag...
Aarti Pharmalabs Limited Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.69B | 18.19B | 21.15B | 18.16B | 19.45B | 11.92B |
| Gross Profit | 9.99B | 9.85B | 9.87B | 3.91B | 4.14B | 3.12B |
| EBITDA | 4.49B | 3.84B | 4.74B | 3.91B | 3.44B | 1.98B |
| Net Income | 2.13B | 1.75B | 2.72B | 2.17B | 1.93B | 1.22B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 34.82B | 29.06B | 25.82B | 22.44B | 20.40B |
| Cash, Cash Equivalents and Short-Term Investments | 96.16M | 96.16M | 562.06M | 940.33M | 631.11M | 832.73M |
| Total Debt | 0.00 | 7.54B | 4.13B | 2.85B | 2.15B | 3.41B |
| Total Liabilities | -21.25B | 13.57B | 9.16B | 8.25B | 6.86B | 6.53B |
| Stockholders Equity | 21.25B | 21.25B | 19.90B | 17.57B | 15.58B | 13.86B |
Cash Flow | ||||||
| Free Cash Flow | -1.17B | -1.86B | -704.76M | 175.69M | 1.30B | -1.85B |
| Operating Cash Flow | 996.13M | 2.62B | 3.32B | 2.16B | 2.50B | -437.04M |
| Investing Cash Flow | -2.22B | -4.31B | -4.14B | -2.15B | -1.58B | -1.39B |
| Financing Cash Flow | 1.48B | 1.71B | 654.35M | 97.23M | -1.63B | 2.60B |
Aarti Pharmalabs Limited Technical Analysis
Neutral
842.40
Price Trends
770.12
Positive
730.29
Positive
722.52
Positive
Market Momentum
19.00
Positive
52.13
Neutral
16.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AARTIPHARM, the sentiment is Neutral. The current price of 842.4 is below the 20-day moving average (MA) of 845.08, above the 50-day MA of 770.12, and above the 200-day MA of 722.52, indicating a neutral trend. The MACD of 19.00 indicates Positive momentum. The RSI at 52.13 is Neutral, neither overbought nor oversold. The STOCH value of 16.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:AARTIPHARM.
Aarti Pharmalabs Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | ₹76.78B | 56.41 | ― | 0.21% | 20.59% | 27.16% | |
66 Neutral | ₹55.49B | 18.99 | ― | 1.46% | 3.40% | 8.72% | |
64 Neutral | ₹56.80B | 33.97 | ― | 0.52% | 18.56% | 60.06% | |
61 Neutral | ₹50.91B | 586.58 | ― | 16.67% | 10.83% | -89.82% | |
56 Neutral | ₹75.16B | 35.17 | ― | 0.48% | 1.20% | -20.03% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | ₹42.54B | 58.07 | ― | 0.02% | 16.70% | 18.73% |
* General Sector Average
IN:AARTIPHARM
Aarti Pharmalabs Limited
828.85
-108.96
-11.62%
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Aarti Pharmalabs Limited Corporate Events
Aarti Pharmalabs Publishes Q1 FY27 Financial Results in Newspapers
Aug 9, 2026
Aarti Pharmalabs Limited announced that its standalone and consolidated unaudited financial results for the quarter ended June 30, 2026, have been published in Financial Express (English) and Loksatta Jansatta (Gujarati) on August 9, 2026, in line...
Aarti Pharmalabs Boosts Equity Capital Through Employee Stock Option Allotment
Jun 24, 2026
Aarti Pharmalabs Limited has increased its paid-up equity share capital following the allotment of 22,062 equity shares to eligible employees under its Aarti Pharma Performance Stock Option Plan 2023. The new shares, issued at a face value of Rs. ...
Aarti Pharmalabs Clears FY26 Results, Recommends Dividend and Strengthens Governance
May 25, 2026
Aarti Pharmalabs Limited’s board has approved the audited standalone and consolidated financial results for the quarter and full year ended March 31, 2026, and will publish them in line with Indian listing regulations. The board has also rec...
Aarti Pharmalabs Clears FY26 Results, Proposes Dividend and Strengthens Governance Bench
May 25, 2026
Aarti Pharmalabs Limited’s board has approved the audited standalone and consolidated financial results for the quarter and full year ended 31 March 2026, and the company will publish these figures in newspapers and on its website in line wi...
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.