Announcement
Announcement under Regulation 30 (LODR)-Allotment of ESOP / ESPS 24 Sep - Allotment of Equity Shares under Aarti Industries Limited PSOP 2022
Source: Bse
Aarti Industries Limited (AARTIIND)
Small CapChemicals stocks · Small cap · NSE
Aarti Industries is a diversified global chemical manufacturer with a cost-competitive product portfolio and expansive geographic footprint. It serves energy (40% revenue), agrochemical, dyes/pigments/paints, polymers, and pharma applications, leveraging operational scale and customer relationships.
Data qualityFresh enough for analysisQuote updated 21 Oct, 04:45 am ISTDetails
Quote21 Oct, 04:45 am IST
Base fundamentals16 Oct 2026 · screener
Latest result31 Jul, 12:24 am IST
Score21 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags15 Aug 2026
Coverage13/14 · 93%
Valuation2026-07-20 · Rf 6.8% · Chemicals P/E 33.1 (n=45)
Technical timing lens
Trend score and candlestick chart
50NeutralSMA20 -4.9% / mo · MACD + · sector -4.2pp vs Nifty 500 (3M)
Stock trend: 52
Sector RS: 46
Sector 3M: -9.8% vs Nifty 500 -5.6%
Chemicals FPI tailwindNot confirmed
Latest mapped FPI equity flow was not positive. View sector evidence
Technical chart
AARTIINDD candles · FIT view+1.3%Latest close ₹479.00 on 2026-10-19
Bar
-3.2%
RSI
46
MACD hist
2.75
52W pos
66%
2026-10-19O ₹495.00H ₹495.80L ₹475.00C ₹479.00Vol 5.5L sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
AARTIINDNifty ChemicalsNifty 500
- AARTIIND
- -3.3%
- Nifty 500
- -5.6%
- Nifty Chemicals
- -8.5%
- Vs Nifty 500
- +2.3 pp
Chart stats
19 Oct 2026- From 52W high
- -13.2%
- 52W range position
- 66%
- ATR (14)
- 3.9%
- Volume vs 20D
- 0.85x
- Avg traded value
- ₹31.6 Cr
- 20D price channel
- ₹459.3 - ₹508.4
₹551.8
₹338.1 - ₹551.8
₹18.7
Latest completed session
20-session average
36.4% annualized volatility
Research snapshot
What the evidence says now
Weak fundamentals, management evidence is still limited to a financial-only Trust Lite signal, price trend is neutral, and recent execution is consistent.
Suggested next step
Research, do not rush
The evidence is not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
Legacy · OVERVALUED19
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Excellent100
Revenue +42.5% · PAT +260.5% YoY
Technical
Neutral50
Price trend and sector-relative-strength timing.
Valuation
Legacy model-537.8%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence65
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Jun 2026
Excellent · 100/100Rev +43% YoY · PAT +260% YoY · margin expansion · +8% QoQ · operating leverage
Filed 30 Jul 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,387 Cr | +42.5% | +8.3% |
| EBITDA | ₹382 Cr | +80.2% | +12.0% |
| Operating margin | 16.0% | +300 bps | +100 bps |
| PAT | ₹155 Cr | +260.5% | +13.1% |
| PAT margin | 6.5% | +392 bps | +28 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 35.00
- P/B
- 3.07
- EV/EBITDA
- 12.76
- Market Cap
- 18253.00Cr
Profitability
- ROE
- 7.13%
- ROCE
- 6.86%
- ROA
- 3.99%
- Dividend Y
- 0.20%
Growth (CAGR)
- Revenue 5Y
- 13.00%
- EPS 5Y
- -5.00%
- Revenue 3Y
- 8.00%
- EPS 3Y
- -9.00%
Balance Sheet
- Debt/Equity
- 0.83
- Interest Coverage
- 3.67×
- Altman Z
- 3.27
- Book Value
- 164.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 2/5
- OCF
- 781.00 Cr
- EPS TTM
- 14.64
Shareholding
- Promoter Hold
- 41.82%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 77%
Financial History
Updated 20/10/2026
Revenue
₹ CrLatest: 8,286+14.0% vs prev
Net Profit
₹ CrLatest: 419+26.6% vs prev
Return on Equity
%Latest: 7.0+19.1% vs prev
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 46. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~5.1% over last month) — short-term momentum negative.
- RSI(14) at 46 — sideways, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 13% off 52W high · 42% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & peers
U-Score 19 · legacy U-Score band OVERVALUED · valuation evidence and comparable companies
Valuation & peers
U-Score 19 · legacy U-Score band OVERVALUED · valuation evidence and comparable companies
OVERVALUED
Fundamental score breakdown
U band · OVERVALUEDValuation2/30
Growth6/25
Quality0/20
Balance Sheet4/15
Cash Flow2/10
Piotroski
7/9 (+5)
Penalties
0
Raw sum
19
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
19/100 · legacy band OVERVALUED
Positive drivers
- Piotroski is strong at 7/9.
- Balance sheet contributes 4/15 to the score.
- Growth contributes 6/25 to the score.
Main drags
- Fair-value margin of safety is negative at -537.8%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 2/30; verify the latest quarterly trend.
Sector valuation model
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Primary lens
Mid-cycle PE/EV/EBITDA using multi-year average margins or earnings.
Secondary checks
Current margin versus 5-year average, balance sheet strength, commodity cycle.
Main risk check
A low trailing PE may mean peak-cycle earnings, not true cheapness.
PE
35.0
PB
3.1
EV/EBITDA
12.8
ROE
7.1%
ROCE
6.9%
FCF Yield
—
Debt/Equity
0.8
MoS
-537.8%
Cyclical/value-trap warning
This sector can look cheap when profits are temporarily high. Check mid-cycle margins/earnings before relying on trailing PE.
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 21 Oct 2026
v4.3-runtime-valuation
Final score
19
Previous: 19
Legacy U-Score band
OVERVALUED
Previous: OVERVALUED
Margin of safety
-537.8%
Previous: -537.8%
Score history
12 stored score snapshots. Latest stored move: -1 points.
21 Oct 2026
v4.3-runtime-valuation
20
20
20
20
20
20
20
20
20
20
20
19
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹232.43
-106.1% MoS
Growth-justified P/E
5.1
Growth-justified Value
₹75.1
-537.8% MoS
PEG
—
Comparable companies
Peers
Business-comparable peers in Chemicals — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
ATUL
Large
Atul Limited
Specialty Chemicals
match 160
38
22.1
11.5%
-179%
WATCHLIST
DEEPAKNTR
Large
Deepak Nitrite Limited
Specialty Chemicals
match 159
27
28.3
9.8%
-496%
OVERVALUED
AETHER
Micro
Aether Industries Limited
Specialty Chemicals
match 159
29
94.9
9.7%
-175%
OVERVALUED
NAVINFLUOR
Small
Navin Fluorine International Limited
Specialty Chemicals
match 157
46
52.5
19.6%
-18%
FAIR VALUE
HSCL
Small
Himadri Speciality Chemical Limited
Specialty Chemicals
match 157
55
39.0
17.8%
+21%
FAIR VALUE
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis under stressReviewed 2026-06-15T17:53:23.819Z
Management commentary snapshot
Q4 FY26 revenue grew 9% YoY to INR2,422 Cr, EBITDA 29% YoY to INR342 Cr, and PAT 43% YoY to INR137 Cr, driven by stable domestic demand and export volumes. Full-year FY26 saw 12% YoY revenue growth to INR9,018 Cr, 15% EBITDA growth to INR1,172 Cr, and 27% PAT growth to INR419 Cr, reflecting steady execution and utilization gains.
Strong Q4 and FY26 financial growth driven by volumes and utilization. However, geopolitical tensions in the Middle East, elevated raw material prices, and increased freight costs are significant near-term headwinds. Working capital expanded, leading to higher net debt. Key Zone IV projects are delayed by 3-4 months.
Growth engines
New Long-Term Contracts
Concluded a 15-year backward integration contract (INR200-250 Cr capex) and a $150M multi-year agrochemical supply agreement (no incremental capex).
Improving Capacity Utilization
Performance reflects improving capacity utilization; further upside possible in select chains like DCB and ethylation.
Operational Efficiencies
Benefits coming from operational efficiencies and cost optimization initiatives are on track.
New Assets Commissioning
Incremental contributions from recently commissioned and upcoming assets, including Zone IV projects and Augene JV.
Capacity and execution
Energy Application Expansion
Expansion to 360 KTPA is on track and expected to be commissioned soon.
Zone IV Projects
Multipurpose plant and PEDA plants under commissioning trials, expected to come on stream soon. Others will commission gradually in next couple of quarters.
Augene JV
Superform joint venture is on track for commissioning in H1FY27, focusing on agrochemicals and coating end markets.
Circularity Initiatives
Commissioning on track for CY26.
Tailwinds
Stable Domestic Demand
Q4 FY26 revenue growth was driven by stable domestic demand.
Chinese Anti-Involution Stance
China's anti-involution stance and impact to products related to PNCB in the NCB chain should start seeing benefits from Q1 FY27 onwards.
EV Market Demand for Polymers
Polymers application is in a strong growth phase, especially demand and volume driven due to applications in the EV market.
Industry Consolidation in China
Increasing scrutiny on nitration chemistry assets in China may force smaller, inefficient operators out, leading to industry consolidation.
Headwinds
Geopolitical Tensions in Middle East
Escalation of geopolitical tensions led to disruptions across global supply chains, impacting trade flows, logistics, and input costs. Volumes for energy application were down 4% QoQ.
Elevated Raw Material Prices
Prices of key raw materials like benzene, sulfur, aniline, toluene, methanol went up by over 60%, causing working capital expansion and higher interest expenses.
Elevated Freight Rates
Freight cost significantly increased in the current quarter, driven by higher export shipments and fuel rates.
Margin Pressure
Continued margin pressure over a significant part of the portfolio, particularly in agrochemical applications and MPDA due to Chinese competition.
Risk radar
Geopolitical Volatility
The situation in West Asia poses near-term risk to critical feedstock availability and product placement in the Middle East.
Raw Material Price Volatility
Ongoing volatility in refining product margins and supply chain risk related to key raw materials adds near-term risk. Crude at $140-150/barrel could further strain working capital.
Working Capital Normalization
Working capital requirements expanded, and normalization might take some time due to dynamic export regions and voyage times.
Project Execution Delays
Zone IV projects were delayed by 3 to 4 months due to contract labor constraints, impacting the realization of EBITDA potential in the given timeframe.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare BOTH
YoY comparison is essential to assess overall business growth and profitability trends, especially for a diversified chemical company. QoQ is crucial to understand the immediate impact of geopolitical disruptions, raw material volatility, and sequential volume changes, particularly in the energy segment.
Sector KPIs management disclosed
Q4 FY26 Revenue
INR2,422 crore, representing a growth of 9% Y-o-Y.
Q4 FY26 EBITDA
INR342 crore, growing 29% Y-o-Y.
FY26 Revenue
INR9,018 crore, up 12% on a Y-o-Y basis.
FY26 EBITDA
INR1,172 crore, up 15% on a Y-o-Y basis.
Management forward view
Strategic Integration & Capital Efficiency
New long-term contracts mark a strategic shift towards deeper integration, enhanced earnings visibility, and improved capital efficiency.
Capex Optimization
Capex for FY27 is expected to be INR700-800 Cr, focusing on optimizing capital allocation and investing in niche, high-return projects.
Profitability Improvement Initiatives
On track to implement initiatives including higher operating leverage, cost optimization, and contributions from new assets.
Net Debt Reduction
Anticipates net debt to decline in the current year due to lower capex intensity and improving cash flow, targeting 2.5x net debt to EBITDA in 2 years.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Zone IV Project Commissioning | Multipurpose plant and PEDA plants under commissioning trials; Calcium chloride plant under operation, ramping up. Others gradually in next couple of quarters. | Full commissioning of all 5 chemistry blocks within FY27 and subsequent revenue accruals from Q2 FY27. |
| Middle East Geopolitical Situation | Geopolitical disruptions impacting exports, volumes down 4% QoQ in energy. Full impact expected in Q1 FY27. | Stabilization of West Asia situation and resumption of trade flows to Dubai and Oman markets. |
| Working Capital Days | Expanded due to elevated raw material prices and higher export share (longer voyage times). | Normalization of raw material prices and working capital cycle towards 55-60 days average levels. |
| Net Debt to EBITDA | ~3.6x (FY26). | Reduction in net debt levels in FY27 as capex intensity lowers and operating cash flow improves, targeting 2.5x in 2 years. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
capex timelinenot yet verifiablequantified
Our capex for FY27 is expected to be in the range of INR700 crore to INR800 crore as we continue our journey to optimize capex and maximize the returns.
Timeframe: FY27Direction: declineConfidence: expected to be
"Our capex for FY27 is expected to be in the range of INR700 crore to INR800 crore"
capex timelinenot yet verifiablequantified
Our capex for FY27 is expected to be in the range of INR700 crore to INR800 crore as we continue our journey to optimize capex and maximize the returns.
Timeframe: FY27Direction: declineConfidence: expected to be
"Our capex for FY27 is expected to be in the range of INR700 crore to INR800 crore"
capex timelinenot yet verifiablequantified
Our capex for FY27 is expected to be in the range of INR700 crore to INR800 crore as we continue our journey to optimize capex and maximize the returns.
Timeframe: FY27Direction: declineConfidence: expected to be
"Our capex for FY27 is expected to be in the range of INR700 crore to INR800 crore"
debt reductionfailed
Net debt is anticipated to decline in the current year (FY27) due to lower capex intensity.
Timeframe: current year (FY27)Direction: declineConfidence: still anticipate
"we still anticipate the net debt to decline in the current year"
Outcome check: PAT YoY averaged 260.5% across 1 later quarter(s).
debt reductionnot yet verifiable
Net debt is anticipated to decline in the current year (FY27) due to lower capex intensity.
Timeframe: current year (FY27)Direction: declineConfidence: still anticipate
"we still anticipate the net debt to decline in the current year"
debt reductionnot yet verifiable
Net debt is anticipated to decline in the current year (FY27) due to lower capex intensity.
Timeframe: current year (FY27)Direction: declineConfidence: still anticipate
"we still anticipate the net debt to decline in the current year"
project executionnot yet verifiable
Augene, the Superform joint venture, is on track for commissioning in H1FY27 with an initial focus on agrochemicals and coating end markets.
Timeframe: H1FY27Confidence: on track
"Augene, the Superform joint venture is on track for commissioning in H1FY27"
project executionnot yet verifiable
Augene, the Superform joint venture, is on track for commissioning in H1FY27 with an initial focus on agrochemicals and coating end markets.
Timeframe: H1FY27Confidence: on track
"Augene, the Superform joint venture is on track for commissioning in H1FY27"
Trust Score
65Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Management has 0% delivered/partly-delivered outcomes on 1 checked claims, with 1 adverse claim outcome. It ranks around the 45th percentile of the scored universe and 28th percentile within Chemicals. Main check: financial discipline is weak at 40/100.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 21 Oct 2026
management-trust-v1
144 docs text-extracted · 39 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
45th percentile
overall median 67 · Chemicals: 28th pctile, median 73 · Small: 50th pctile, median 66
Evidence depth
Financial-only
144 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
0% delivered or partly delivered
1/4 claims checked · 1 contradicted/failed claim
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Acceptable, but check the weakest sub-score before increasing exposure.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
78
strong · holding, pledge, alignment
Cash flow
55
watch · profit to cash conversion
Balance sheet
73
acceptable · leverage and solvency
Discipline
40
weak · capital discipline
Results
90
strong · quarterly consistency
Trust positives
- ▸Promoter pledge is zero.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸4/4 latest quarters had positive YoY PAT growth.
- ▸Latest 3 quarters had positive YoY PAT growth.
Trust risks
- ▸ROCE is low at 6.9%.
- ▸ROE is low at 7.1%.
- ▸4 older quarters in the 8-quarter window had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Aarti Industries Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 20 Aug
Source: Bse
Annual report
Annual Report 2026
Source: Bse
Annual report
Annual Report 2026
Source: Bse
Annual report
Annual Report 2025
Source: Bse
Annual report
Announcement under Regulation 30 (LODR)-Newspaper Publication 28 Aug - Newspaper Publication for dispatch of Integrated Annual Report for the FY 2025-26 and Notice of 43rd AGM
Source: Bse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.