Aarti Pharmalabs Limited (AARTIPHARM) AI Stock Analysis

Aarti Pharmalabs Limited

(NSE:AARTIPHARM)

Select Model

Rating:56Neutral

Price Target:INR 1,004.00▲(14.92% 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 and intermediate manufacturingA business focused on regulated, high-purity APIs and pharmaceutical intermediates serves essential inputs in pharmaceutical production. Customer qualification and compliance requirements can support recurring demand and make established manufacturing capabilities relevant across multiple product cycles and end markets.

Negative Factors

FY2026 revenue and earnings declineThe FY2026 deterioration signals weaker demand, mix, or operating conditions than in the prior year and reduces confidence in near-term earnings consistency. A simultaneous revenue decline and sharp net-income fall can also make recovery dependent on renewed volume growth or margin improvement.

Aarti Pharmalabs Limited (AARTIPHARM) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 79.14B
Dividend Yield: 0.40%
Average Volume (3M): 63.56K
Price to Earnings (P/E): 30.8
Beta (1Y): 0.91
Revenue Growth: 13.38%
EPS Growth: 7.02%
Country: India
Employees: 2,421
Sector: General
Sector Strength: 55
Industry: Drug Manufacturers - Specialty & Generic

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 ingredie...

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 dosage f...

Aarti Pharmalabs Limited Financial Statement Overview

Summary

Financial quality is moderate. Profitability has been solid historically, but FY2026 shows deterioration with revenue down (~4.5% YoY) and a sharp drop in net income. Balance-sheet risk increased as debt rose materially in FY2026. Cash flow is the main drag: free cash flow has been inconsistent and turned meaningfully negative in FY2025–FY2026 despite positive operating cash flow.

Income Statement

62Positive

Balance Sheet

58Neutral

Cash Flow

41Neutral

Financial statement breakdown
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	34.82B	29.06B	25.82B	22.44B	20.40B
Cash, Cash Equivalents and Short-Term Investments	96.16M	96.16M	558.57M	940.33M	631.11M	832.73M
Total Debt	0	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

Technical Analysis SentimentPositive

Last Price873.65

Price Trends

50DMA868.27Positive

100DMA787.07Positive

200DMA746.18Positive

Market Momentum

MACD-0.25Negative

RSI50.13Neutral

STOCH70.00Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:AARTIPHARM, the sentiment is Positive. The current price of 873.65 is below the 20-day moving average (MA) of 882.91, above the 50-day MA of 868.27, and above the 200-day MA of 746.18, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 50.13 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:AARTIPHARM.

Aarti Pharmalabs Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:AARTIPHARM against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:IOLCP	72Outperform	INR 52.17B	31.06	―	0.56%	18.56%	60.06%
IN:BLISSGVS	69Neutral	INR 68.94B	50.66	―	0.23%	20.59%	27.16%
IN:FDC	66Neutral	INR 61.32B	19.59	―	1.32%	10.20%	38.95%
IN:GUFICBIO	65Neutral	INR 41.34B	56.49	―	0.02%	16.70%	18.73%
IN:AARTIPHARM	56Neutral	INR 79.22B	30.83	―	0.40%	13.38%	7.02%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:ORCHPHARMA	54Neutral	INR 49.89B	489.15	―	―	10.83%	-89.83%

* General Sector Average

Performance Comparison

IN:AARTIPHARM and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:AARTIPHARM	Aarti Pharmalabs Limited	873.65	20.03	2.35%
IN:BLISSGVS	Bliss Gvs Pharma Limited	648.40	494.04	320.05%
IN:FDC	FDC Ltd.	376.65	-78.95	-17.33%
IN:GUFICBIO	Gufic Biosciences Limited	412.20	84.68	25.85%
IN:IOLCP	IOL Chemicals & Pharmaceuticals Ltd.	177.75	84.69	91.01%
IN:ORCHPHARMA	Orchid Pharma Limited	833.05	64.40	8.38%

Aarti Pharmalabs Limited Corporate Events

Aarti Pharmalabs Publishes AGM and Annual Report Notices for FY 2025-26

Aug 30, 2026

Aarti Pharmalabs Limited has notified the stock exchanges that it has published newspaper advertisements in Financial Express and Loksatta-Jansatta announcing the dispatch of its Annual Report for the 2025-26 financial year to shareholders. The notic...

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 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.

Date of analysis: Aug 11, 2026

Aarti Pharmalabs Limited AI Stock Analysis