Aarti Industries logo

Aarti Industries

AARTIIND NSE

Key Fundamentals

SmallcapSpecialty ChemicalsChemicals
Market Cap
₹17,212 Cr
Volatility
Moderate
P/E Ratio
31.77
EBITDA
₹1,172 Cr
Return on Equity
7.04%
Debt to Equity
0.83
Book Value
₹164.17
EPS
₹13.35
52W High
₹551.75
52W Low
₹338.05

Tapetide Score

Data-driven rating, 0–100. How it works →

Key Insights

Weaknesses

6
  • Stock is trading at 2.83 times its book value
  • Tax rate seems low
  • Company has a low return on equity of 7.10% over last 3 years.
  • Company might be capitalizing the interest cost
  • Dividend payout has been low at 9.44% of profits over last 3 years
  • Debtor days have increased from 50.1 to 61.8 days.

Growth Rate

Revenue Growth
13.78% higher than 3Y
Net Income Growth
26.68% higher than 3Y
Cash Flow Change
-36.91% lower than 3Y
ROE
19.32% higher than 3Y
ROCE
11.94% higher than 3Y
EBITDA Margin (Avg.)
1.58% higher than 3Y

AI Analysis — Bull vs Bear

4d ago
AI opinion · based on fundamentals
Risk high

Aarti Industries has a market cap of about ₹17,526 Cr and trades at a P/E of 33.4 and a P/B of 2.98. Sales grew 27% and profit grew 122% over the trailing twelve months, but profit has shrunk at 9% a year over 3 years and 5% a year over 5 years. Its 3-year ROE of 7.1% is well below its 10-year average of 14%, and the stock's 31% gain over the past year follows a 5-year CAGR of -10%.

Bull Case 7
  • Sales growth has picked up: TTM compounded sales growth is 27%, against a 3-year CAGR of 8%. This suggests demand or volumes are recovering.
  • TTM profit growth of 122% shows earnings recovering sharply from a low base after several weak years.
  • Long-term revenue growth has held up, with a 5-year sales CAGR of 13% and a 10-year CAGR of 11%. The business has kept expanding through chemical industry cycles.
  • The company has earned higher returns before, with a 10-year ROE of 14% and a 5-year ROE of 12%. The current 7% ROE may be a cyclical low, which leaves room for returns to move back toward historical levels.
  • The P/E of 33.4 could fall quickly if profit keeps growing anywhere near the TTM rate of 122%, since the multiple would be spread over higher earnings.
  • The stock has returned 31% over the past year, suggesting the market has started pricing in the earnings recovery.
  • Over 10 years, the stock has compounded at 14% a year, showing it can create value over a full cycle.
Bear Case 8
  • Returns on capital are weak, with an average ROE of 7.1% over the last 3 years, likely below the company's cost of equity.
  • Profit has shrunk over the medium term, at -9% a year over 3 years and -5% a year over 5 years, even though sales grew 8% and 13% a year over the same periods.
  • The valuation looks rich for current returns: a P/B of 2.98 and a P/E of 33.4 on an ROE of about 7% assume earnings recover a lot.
  • Over 10 years, profit grew only 5% a year while sales grew 11% a year. This points to lasting margin erosion or rising costs from capital spending.
  • Debtor days rose from 50.1 to 61.8, which means customers are taking longer to pay and more cash is tied up in working capital.
  • The company may be capitalizing interest cost. If so, reported profits could be flattered, and the true cost of recent capital spending would show up later through depreciation.
  • Long-term shareholders have seen little return: the stock's 3-year CAGR is 0% and its 5-year CAGR is -10%, despite the recent 31% gain.
  • Shareholders get little cash back, with a dividend payout of 9.44% of profits over 3 years and a dividend yield of 0.2%. A low tax rate also raises questions about whether earnings can stay at this level.

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

1d ago
Headwinds 3
  • Raw material, competition squeeze margins Sep 21

    FY26 results pointed to margin pressure from raw material costs and competition, even with 12% revenue growth. Volume, not pricing, drove the topline, so a slowdown in volumes would hit growth directly.

  • Possible equity dilution from fund-raise Sep 28

    On October 1, 2026, the board will look at equity routes such as a QIP, private placement or preferential issue. Any of these could dilute existing shareholders. No size has been disclosed yet.

  • Zone IV ramp-up execution risk Sep 7

    The newly commissioned Phase I assets still need commercial qualification and customer approvals. That could delay meaningful revenue from the plant.

Positives 2
  • Zone IV Phase I commissioned Sep 7

    Aarti commissioned Phase I of its Zone IV project at Jhagadia, Gujarat, covering Calcium Chloride, PEDA and part of a Multipurpose Plant. Several planned Zone IV products are expected to be made in India for the first time. PEDA extends the company's 2,6-Diethyl Aniline ethylation chain further downstream into agrochemicals.

  • FY26 revenue up 12%, EBITDA 15% Sep 21

    FY26 revenue grew 12% and EBITDA grew 15%, driven by volume expansion. EBITDA growing faster than revenue suggests some operating leverage despite cost headwinds.

Neutral 3
  • Board to weigh fund-raising options Sep 28

    The board meets on October 1, 2026 to evaluate raising money through equity and debt, including QIP, private placement and preferential issue. No amount or timeline has been disclosed.

  • Suyog Kotecha named MD & CEO Sep 21

    At the 43rd AGM, Rajendra Gogri moved to non-executive chairman and Suyog Kotecha takes over as MD & CEO from October 1, 2026. Shareholders also approved the FY26 financials and the dividend.

  • Investor meet at Anand Rathi conference Sep 16

    Management held one-on-one and group meetings at the Anand Rathi Annual Flagship Conference in Mumbai on September 22, 2026.

TL;DR: Aarti Industries is growing on volumes, with FY26 revenue up 12% and EBITDA up 15%. Phase I of Zone IV at Jhagadia expands its downstream and niche product capacity. The main risks are margin pressure from raw materials and competition, possible equity dilution from the fund-raise under review on October 1, and a new CEO taking charge at the same time. The trend looks cautiously positive, and the next few quarters depend on how quickly Zone IV gets customer approvals and on the size and structure of the fund-raise.

Quarterly Results

Particulars Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Sales
1,414
1,454
1,732
1,773
1,851
1,628
1,843
1,949
1,675
2,100
2,318
2,205
2,387
Expenses
1,214
1,221
1,473
1,489
1,546
1,431
1,612
1,687
1,463
1,809
1,997
1,864
2,005
Operating Profit
200
233
259
284
305
197
231
262
212
291
321
341
382
OPM %
14%
16%
15%
16%
16%
12%
13%
13%
13%
14%
14%
15%
16%
Other Income
0
0
8
-1
6
7
5
3
4
22
-13
1
5
Interest
40
58
54
59
64
62
85
64
60
100
69
112
83
Depreciation
89
93
97
98
102
108
111
113
114
120
121
119
124
PBT
71
82
116
126
145
34
40
88
42
93
118
111
180
Tax %
1%
-11%
-7%
-5%
6%
-53%
-15%
-9%
-2%
-14%
-13%
-23%
14%
Net Profit
70
91
124
132
137
52
46
96
43
106
133
137
155
EPS in Rs
1.93
2.51
3.42
3.64
3.78
1.43
1.27
2.65
1.19
2.92
3.67
3.78
4.27
Figures in ₹ Crores

Profit & Loss

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Sales
2,890
3,006
3,163
3,806
4,168
4,186
4,506
6,086
6,619
6,371
7,269
8,286
9,010
Expenses
2,424
2,434
2,509
3,106
3,202
3,209
3,525
4,365
5,530
5,393
6,272
7,118
7,675
Operating Profit
466
572
654
700
965
977
982
1,720
1,089
978
997
1,168
1,335
OPM %
16%
19%
21%
18%
23%
23%
22%
28%
16%
15%
14%
14%
15%
Other Income
9
6
2
7
2
9
1
1
1
7
20
11
15
Interest
138
117
117
132
183
125
86
102
168
211
275
340
364
Depreciation
82
98
123
146
163
185
231
246
310
378
434
474
484
PBT
255
363
416
429
622
676
665
1,372
611
395
307
365
502
Tax %
24%
26%
21%
19%
19%
19%
19%
14%
11%
-5%
-8%
-15%
—
Net Profit
208
268
328
346
504
547
535
1,186
545
416
331
419
531
EPS in Rs
5.81
7.71
9.62
10.24
14.18
15.39
15.02
32.71
15.04
11.49
9.13
11.56
14.64
Div. Payout %
24%
28%
3%
2%
19%
11%
10%
11%
17%
9%
11%
9%
—
Figures in ₹ Crores

Balance Sheet

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
44
42
41
41
43
87
87
181
181
181
181
181
Reserves
972
1,096
1,321
1,538
2,587
2,892
3,416
4,335
4,739
5,109
5,424
5,774
Borrowings
1,202
1,292
1,564
2,083
2,401
2,098
2,857
2,587
2,907
3,623
3,848
4,966
Other Liabilities
719
538
573
730
826
1,256
1,282
748
754
1,203
1,661
2,379
Total Liabilities
2,938
2,966
3,499
4,391
5,858
6,332
7,642
7,851
8,581
10,115
11,114
13,300
Fixed Assets
967
1,246
1,697
1,998
2,147
2,468
3,593
3,595
4,861
5,649
6,377
6,399
CWIP
193
313
270
436
795
1,418
1,298
1,346
1,096
1,229
1,454
2,187
Investments
139
41
47
47
33
37
64
28
17
23
48
132
Other Assets
1,639
1,366
1,486
1,910
2,884
2,409
2,688
2,882
2,607
3,214
3,235
4,582
Total Assets
2,938
2,966
3,499
4,391
5,858
6,332
7,642
7,851
8,581
10,115
11,114
13,300
Figures in ₹ Crores

Cash Flow

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
340
574
470
335
736
1,102
873
519
1,319
1,210
1,238
781
Investing
-298
-452
-529
-610
-797
-1,124
-1,322
-1,169
-1,330
-1,369
-1,393
-1,142
Financing
-23
-128
58
279
833
-535
614
412
38
420
-73
745
Net Cash Flow
19
-7
0
4
772
-557
165
-239
27
261
-229
383
Free Cash Flow
45
124
-60
-279
-55
-23
-442
-646
-8
-96
-137
-340
CFO/OP
85
117
87
62
90
130
99
44
129
132
123
67
Figures in ₹ Crores

Ratios

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
55
64
61
63
68
66
64
65
52
49
39
62
Inventory Days
123
108
136
144
152
174
190
143
115
121
126
129
Days Payable
55
67
71
69
55
72
117
53
24
76
107
137
Cash Conversion Cycle
123
105
125
138
165
168
137
155
143
94
58
54
Working Capital Days
10
10
-4
6
-14
-14
-36
22
-29
-36
-44
-64
ROCE %
19%
20%
19%
16%
18%
15%
13%
22%
10%
7%
6%
7%

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

Log in to view Aarti Industries insights

63 extracted metrics + investor summaries across FY09–FY27.

Log in — free

Shareholding Pattern

Others4.57%Govt.0.01%Promot.41.82%FIIs6.99%DIIs21.11%Public25.49%As ofJun 2026
3.49% of promoter holding pledged as of Jun 2026

Documents

Frequently Asked Questions about Aarti Industries

What does Aarti Industries Ltd do?
Aarti Industries Ltd, the flagship company of the Aarti group, manufacturing organic and inorganic chemicals at its major facilities in Vapi, Jhagadia, Dahej and Kutch, in Gujarat and in Tarapur in Maharashtra. The company has a strong market position in the NCB-based specialty chemicals segment.[1]
Where is Aarti Industries Ltd (AARTIIND) listed?
Aarti Industries Ltd trades as AARTIIND on the NSE and under code 524208 on the BSE.
Which sector does Aarti Industries Ltd belong to?
Aarti Industries Ltd is classified under the Chemicals sector, in the Specialty Chemicals industry.
What is the market capitalisation of Aarti Industries Ltd?
Aarti Industries Ltd has a market capitalisation of ₹17,212 Cr, which places it in the Mid Cap band.
What is the PE ratio of Aarti Industries Ltd?
Aarti Industries Ltd trades at a PE ratio of 31.77, on earnings per share of ₹13.35, against a book value of ₹164.17 per share.
What is the 52-week high and low of Aarti Industries Ltd?
Over the last 52 weeks Aarti Industries Ltd has traded between ₹338.05 and ₹551.75.
Does Aarti Industries Ltd pay dividends?
Aarti Industries Ltd has a dividend yield of 0.21%.
What is the Return on Equity (ROE) of Aarti Industries Ltd?
Aarti Industries Ltd reported a return on equity of 7.04%. Its debt-to-equity ratio is 0.83.

Company Information

Aarti Industries Ltd, the flagship company of the Aarti group, manufacturing organic and inorganic chemicals at its major facilities in Vapi, Jhagadia, Dahej and Kutch, in Gujarat and in Tarapur in Maharashtra. The company has a strong market position in the NCB-based specialty chemicals segment.[1]

Website aarti-industries.com
CEO Mr. Rajendra Vallabhaji Gogri
Employees 5,868
Listed 1995-02-08
Face Value ₹ 5
Issued Size 36,25,93,869

For AI agents and developers

Reading this as an AI agent, LLM or automated pipeline? Every page on Tapetide is also published as clean Markdown — no navigation, no scripts, just the data. Fetch https://tapetide.com/stocks/AARTIIND.md for Aarti Industries Ltd: company profile, latest price, key fundamentals, the Tapetide Score, growth rates, quarterly and annual financial statements, shareholding pattern, technical indicators, analyst ratings and exchange filings.

Append .md to any Tapetide URL for the same treatment. A full index of what we publish is at /llms.txt and /llms-full.txt. For live, structured queries instead of documents, use our MCP server.

Explore More

More in Chemicals → FII DII Data Stock Screener Nifty 50 Heatmap F&O Ban List