IP
IndiaPulse

Aether Industries Limited (AETHER)

Micro Cap

Chemicals stocks · Micro cap · NSE

Aether Industries Limited is an Indian specialty chemical manufacturer, focusing on advanced intermediates and specialty chemicals. It operates through Contract Manufacturing (CEM), Contract Research & Manufacturing Services (CRAMS), and Large Scale Manufacturing (LSM) business models, serving diverse sectors including Pharma, Oil & Gas, and Material Science.

₹1,625.6
-29.10 · -1.76%
Quote04 Sept, 03:55 pm IST
Fundamentals05 Sept 2026 · screener
Score05 Sept, 10:20 pm IST · v4.3-runtime-valuation
Tags15 Aug 2026
Coverage13/14 · 93%
Valuation2026-07-20 · Rf 6.8% · Chemicals P/E 34.2 (n=45)
Data confidence
Fresh enough for analysis
Investor decision lenses

One read, four checks

75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.

Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is consistent.

Suggested next step
Research, do not rush
The four lenses are not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
OVERVALUED
29

Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.

Trust
Healthy Trust
74

low confidence · 0/0 claims checked

Technical
Bullish
62

Timing lens: price trend and sector relative strength.

Result consistency
consistent
87

Rolling lens: recent quarterly delivery, not the latest single-result score.

Latest result

Quarter ended 30 Jun 2026

Good · 67/100

Rev +27% YoY · PAT +34% YoY · +7% QoQ · operating leverage · margin compression

Filed 30 Jun 2026
Open results browser →
MetricThis quarterYoYQoQ
Revenue₹327 Cr+27.2%+7.2%
EBITDA₹103 Cr+27.2%+24.1%
Operating margin31.0%-100 bps+400 bps
PAT₹63 Cr+34.0%+16.7%
PAT margin19.3%+98 bps+157 bps

NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.

Business & thesis

Growth engines, tailwinds/headwinds, and risk radar from management commentary

Business and thesis

Where growth can come from, and what can break the case

Thesis intactReviewed 2026-06-08T07:08:24.509Z
Management commentary snapshot

Aether Industries reported strong FY26 financial performance with revenue up 38% YoY, EBITDA up 53% YoY, and PAT up 39% YoY, driven by CEM and CRAMS. Q4FY26 saw revenue up 27% YoY, but EBITDA and PAT growth were modest at 6% and 7% YoY, impacted by a warehouse fire.

Strong FY26 growth, particularly in CEM/CRAMS, supports the long-term thesis. However, Q4FY26 results were tempered by a warehouse fire and year-end provisions, requiring close monitoring of operational stability and new capacity ramp-up. New capacity commissioning is on track.

Current business mix

Revenue by Business Model (FY26)

Latest issuer-disclosed distribution across 4 reported categories.

Businessmix
CEM46.3%
LSM43.2%
CRAMS9.2%
Others1.3%
Growth engines

CEM and CRAMS Business Models

CEM and CRAMS contribute more than 55% of revenue and led strong financial performance in FY26.

New Customer Acquisition

19 new customers onboarded across all business models during FY26.

R&D Expansion

R&D expansion on track with 18 fume hoods being installed and a new R&D Centre being expanded.

Capacity and execution

Site 3++ Production Commencement

Site 3++ commenced production in February end and is being ramped up.

Site 5 Phase One Commissioning

Site 5 Phase one - 2 production blocks - solvent trials begun, commercial production by Q1 FY27 (June 2026).

R&D Infrastructure Expansion

18 Fume Hoods being installed in the current R&D and New R&D Centre being expanded in adjacent land.

Tailwinds

Customer Traction

Strong traction with customers across different sectors.

Growing Contract Manufacturing

Growing CEM contracts and volume-led LSM demand.

Headwinds

Operational Disruption (Fire Incident)

Q4 FY26 EBITDA and PAT impacted by ₹70M loss of inventories due to fire at an external warehouse in March 2026 and certain year-end provisions.

Risk radar

Operational Stability

Impact of loss of inventories on account of fire at external warehouse in March 2026.

New Capacity Ramp-up

Strategic supply from Site 3++ to ramp up in Q1 FY27; Site 5 commercial production by Q1 FY27.

Management accountability

What management said, and what results must prove

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

Both YoY and QoQ comparisons are relevant. YoY provides a view of annual growth and seasonal performance, while QoQ highlights sequential momentum, especially with new capacity ramp-ups and recent operational impacts.

Sector KPIs management disclosed

Revenue

FY26: ₹11,601M (+38% Y/Y); Q4 FY26: ₹3,051M (+27% Y/Y)

EBITDA

FY26: ₹3,547M (+53% Y/Y, 31% margin); Q4 FY26: ₹814M (+6% Y/Y, 27% margin)

PAT

FY26: ₹2,195M (+39% Y/Y, 19% margin); Q4 FY26: ₹540M (+7% Y/Y, 18% margin)

R&D Spend

FY26: ₹862.13M, accounting for 7.3% of revenues.

Management forward view

Strategic Supply Ramp-up

Strategic supply from Site 3++ to ramp up in Q1 FY27.

Site 5 Commercial Production

Site 5 Phase one - 2 production blocks - commercial production by Q1 FY27.

Team Structure Reaffirmation

Team structure being reaffirmed to meet requirements.

Thesis monitor

Numbers and claims to verify in the next filings

CheckpointCurrent evidenceWhat to verify next
Site 3++ Ramp-upCommenced production in February end.Strategic supply ramp-up in Q1 FY27.
Site 5 Commercial ProductionSolvent trials begun for Phase one.Commercial production by Q1 FY27 (June 2026).
CEM and CRAMS ContributionContribute more than 55% of revenue.Continued growth and margin contribution from these segments.
Operational StabilityQ4 FY26 impacted by warehouse fire.Absence of further disruptions and normalized margins in subsequent quarters.

Verification checkpoints are IndiaPulse research interpretation, not investment advice.

Technical timing lens

Trend score and candlestick chart

62Bullish

SMA20 +9.8% / mo · MACD − · near 52W high

Stock trend: 65
Sector RS: 57
Sector 3M: +0.0% vs Nifty -1.5%

Technical chart

AETHERdaily · 1Y · AUTO+68.1%
Latest close ₹1625.60 on 2026-09-04
Bar
-2.1%
RSI
53
MACD hist
-10.14
52W pos
91%
2026-09-04O ₹1660.10H ₹1666.30L ₹1614.30C ₹1625.60Vol 2.1L sh
₹873.59₹1.09k₹1.32k₹1.54k₹1.76k52H1625.602026-032026-06VolRSIMACD2026-032026-042026-062026-072026-09
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal

Daily technical trend read

Mixed signals

Signals are conflicting — long-term uptrend intact. RSI 53. Wait for confirmation.

  • Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
  • SMA20 rising (~8.9% over last month) — short-term momentum positive.
  • RSI(14) at 53 — falling, no extreme reading.
  • MACD below signal, histogram expanding negatively — bearish momentum building.
  • 5% off 52W high · 124% 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 & score drivers

U-Score 29 · OVERVALUED · pillar breakdown, sector model, fair-value anchor

29U-SCORE
OVERVALUED

Fundamental score breakdown

OVERVALUED
Valuation0/30
Growth11/25
Quality3/20
Balance Sheet10/15
Cash Flow1/10
Piotroski
8/9 (+5)
Penalties
-1
Raw sum
29

Why this score?

Top U-Score contributors and drags from the latest stored fundamentals.

29/100 · OVERVALUED

Positive drivers

  • Piotroski is strong at 8/9.
  • Balance sheet contributes 10/15 to the score.
  • Growth contributes 11/25 to the score.

Main drags

  • Penalty bucket subtracts 1 points.
  • Fair-value margin of safety is negative at -193.7%.
  • Valuation is weaker at 0/30; 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.

Cyclical normalized
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
89.9
PB
8.8
EV/EBITDA
47.9
ROE
9.7%
ROCE
11.9%
FCF Yield
Debt/Equity
0.2
MoS
-193.7%
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: 05 Sept 2026
v4.3-runtime-valuation
Final score
29
Previous: 29
Verdict
OVERVALUED
Previous: OVERVALUED
Margin of safety
-193.7%
Previous: -193.7%

Score history

12 stored score snapshots. Latest stored move: +0 points.

05 Sept 2026
v4.3-runtime-valuation
27
29
29
29
29
29
29
29
29
29
29
29

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
₹271.66
-498.4% MoS
Growth-justified P/E
31.2
Growth-justified Value
₹553.53
-193.7% MoS
PEG
6.42

Trust score

Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth

Trust Score
74Healthy Trust · 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.

Healthy Trust: Claim history is still being built. It ranks around the 75th percentile of the scored universe and 55th percentile within Chemicals. Main check: cash conversion is weak at 43/100.

Healthy Trust Lite: Promoter holding is 74.9%. Key concern: Only 0 years of positive FCF.

Computed 05 Sept 2026
management-trust-v1
83 docs text-extracted · 36 concalls text-extracted
Score band
Healthy Trust

Generally investable credibility. Look for weak sub-scores before increasing position size.

Relative rank
75th percentile

overall median 67 · Chemicals: 55th pctile, median 73 · Micro: 56th pctile, median 73

Evidence depth
Financial-only

83 documents have extracted text, but claim history is not strong enough yet.

Claim delivery
Outcome history still building

0 claims extracted · No contradicted claim yet

How to read this Trust Score

Healthy Trust · low confidence
What 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
86
strong · holding, pledge, alignment
Cash flow
43
weak · profit to cash conversion
Balance sheet
89
strong · leverage and solvency
Discipline
76
strong · capital discipline
Results
87
strong · quarterly consistency

Trust positives

  • Promoter holding is 74.9%.
  • Promoter pledge is zero.
  • 4/4 latest quarters had positive YoY revenue growth.
  • 4/4 latest quarters had positive YoY PAT growth.

Trust risks

  • Only 0 years of positive FCF.

Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.

Financials

Full fundamentals table and 10-year revenue / profit / ROE history

Fundamentals

Valuation

P/E
89.90
P/B
8.79
EV/EBITDA
47.90
Market Cap
21576.00Cr

Profitability

ROE
9.66%
ROCE
11.90%
ROA
7.34%
Dividend Y

Growth (CAGR)

Revenue 5Y
10.00%
EPS 5Y
10.00%
Revenue 3Y
21.00%
EPS 3Y
20.00%

Balance Sheet

Debt/Equity
0.19
Interest Coverage
20.32×
Altman Z
8.07
Book Value
185.00

Cash Flow

FCF Yield
FCF Positive Y
0/5
OCF
142.00 Cr
EPS TTM
17.73

Shareholding

Promoter Hold
74.92%
Promoter Pledge
0.00%
Momentum 52W
91%

Financial History

Updated 5/9/2026

Revenue

₹ Cr
No data

Net Profit

₹ Cr
No data

Return on Equity

%
No data

Peers

Business-comparable names in Chemicals, ranked by similarity

Verify on:NSE India ↗
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.