Aarti Industries
Aarti Industries
ChemicalsKey Fundamentals
SmallcapSpecialty ChemicalsChemicalsTapetide Score
Data-driven rating, 0–100. How it works →
Key Insights
Weaknesses
6- Stock is trading at 3.00 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
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 2h agoAarti Industries, with a market cap of ₹17,870 Cr, is a specialty chemicals player showing a sharp TTM sales recovery of 27% and a 122% TTM profit surge, though its 3-year and 5-year compounded profit growth remain negative at -9% and -5% respectively. The stock trades at a P/E of 34.5x and 3.07x book value, while ROE has declined to 7% over the last 3 years from a 10-year average of 14%.
- TTM revenue growth of 27% signals a strong cyclical recovery in the specialty chemicals business after a period of muted demand
- TTM profit growth of 122% indicates a sharp earnings rebound driven by improving realisations and operating leverage
- 10-year compounded sales CAGR of 11% demonstrates a consistent long-term revenue growth track record
- 10-year stock CAGR of 14% shows the company has created meaningful long-term shareholder wealth despite recent underperformance
- 10-year ROE average of 14% suggests the business has historically generated reasonable returns on equity during normal operating cycles
- 5-year compounded sales growth of 13% reflects structural demand tailwinds in the Indian specialty chemicals space
- 1-year stock return of 27% indicates improving market sentiment and potential re-rating as earnings normalise
- 3-year ROE of just 7% is significantly below the 10-year average of 14%, indicating prolonged capital efficiency deterioration
- P/E of 34.5x is elevated relative to a company delivering only 7% ROE, suggesting the stock prices in significant recovery already
- 3-year compounded profit growth of -9% and 5-year profit CAGR of -5% show that earnings have structurally declined over medium-term horizons
- P/B ratio of 3.07x is high for a business with sub-10% ROE, meaning investors pay a premium for book value that is not generating commensurate returns
- Debtor days have increased from 50.1 to 61.8 days, indicating deteriorating working capital efficiency and potential collection challenges
- Dividend payout of just 9.44% of profits over the last 3 years and a yield of only 0.2% offer minimal income return to shareholders
- 3-year stock CAGR of -2% and 5-year stock CAGR of -10% reflect sustained underperformance and value erosion over medium-term holding periods
- Potentially low tax rate and possible capitalisation of interest costs raise questions about the quality and sustainability of reported earnings
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 2h ago- Zone IV Phase I commissioned Sep 7
Aarti Industries commissioned Phase I of its Zone IV project at Jhagadia, Gujarat, including Calcium Chloride, PEDA, and a Multipurpose Plant. The facilities strengthen downstream integration into agrochemical and oilfield/energy markets, with several products to be manufactured in India for the first time.
- AGM set for Sep 21, 2026 Aug 28
Aarti Industries scheduled its 43rd AGM for September 21, 2026 via video conferencing. The Board recommends a dividend of Re. 1 per share for FY26.
- FY26 BRSR report filed Aug 27
Aarti Industries submitted its Business Responsibility and Sustainability Report for FY26, detailing ESG performance, safety metrics, and environmental data.
- Analyst meet on Sep 1 Aug 24
Aarti Industries scheduled an analyst and investor meet for September 1, 2026 at the Grand Hyatt, Mumbai, as part of the Ashwamedh - Elara India Dialogue 2026.
TL;DR: Aarti Industries is executing on its capacity expansion strategy with the commissioning of Zone IV Phase I, which adds new downstream chemical capabilities including first-in-India products. No material headwinds emerged in the recent news cycle. The near-term focus shifts to commercial qualification and customer approvals for the new assets, with the analyst meet on Sep 1 likely to provide further visibility on ramp-up timelines and revenue contribution.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 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 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 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 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 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 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 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
BetaAI-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.
Documents
Frequently Asked Questions about Aarti Industries
What does Aarti Industries Ltd do?
Where is Aarti Industries Ltd (AARTIIND) listed?
Which sector does Aarti Industries Ltd belong to?
What is the market capitalisation of Aarti Industries Ltd?
What is the PE ratio of Aarti Industries Ltd?
What is the 52-week high and low of Aarti Industries Ltd?
Does Aarti Industries Ltd pay dividends?
What is the Return on Equity (ROE) of Aarti Industries Ltd?
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]
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.