Commodity
HIGHTrigger: Agrochem and pharma intermediates represent ~30% of revenues; sustained Chinese dumping could delay margin recovery timeline
Monitor: commodity
Aarti Industries Ltd: Stock Analysis & Fundamentals
Updated this weekAarti Industries Ltd (Speciality Chemicals) — fundamental analysis, earnings data, and key metrics. PE: 41.1. ROE: 7.1%. This stock is not currently in the Nifty 500 momentum outperformers list.
Aarti Industries Ltd Key Facts
What's Happening
💪Debt reduced 20% YoY — balance sheet strengthening
🌐FII stake decreased 3.3% this quarter
Key Risks
1. Commodity
HIGH2. Geopolitical
MEDIUM3. Fx
MEDIUMKey Numbers
Current Price
₹467
Dividend Yield
0.21%
Market Cap
16.9K Cr
Valuation
N/AWhat Are the Key Risks for Aarti Industries Ltd?
Earnings deceleration risks from management commentary
Geopolitical
MEDIUMTrigger: Further US policy reversals or renegotiations of the trade deal would directly impact the highest-margin export segment
Monitor: geopolitical
Fx
MEDIUMTrigger: If export share stays elevated at 65% with longer receivable cycles, free cash flow generation in FY27 could lag earnings recovery
Monitor: fx
Regulatory
LOWTrigger: Labour code implementation completed; no residual risk indicated
Monitor: regulatory
Logistics
LOWTrigger: Zone 4 is a multi-chemistry platform; chlorine supply security is critical for chlorotoluene and calcium chloride blocks
Monitor: logistics
What Is Aarti Industries Ltd's Management Saying?
Key quotes from recent conference calls
“Agrochemicals and pharmaceuticals continue to see stable volumes, but pricing remains subdued due to persistent dumping from China [Risk (commodity): HIGH]”
“It was one of the value chain which was mostly impacted due to U.S. tariffs, because the two largest customers actually consume this product in U.S. [Risk (geopolitical): MEDIUM]”
“The increase in export has resulted in an increase in working capital. As a result, the debt and interest costs have increased marginally [Risk (fx): MEDIUM]”
“The company provided for a one-time impact of ₹15 crore due to the implementation of a new labour code, recorded as an exceptional expense for the period [Risk (regulatory): LOW]”
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 30, 2026.
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Frequently Asked Questions: Aarti Industries Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Aarti Industries Ltd's latest quarterly results?
Aarti Industries Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +42.7%
- Revenue Growth YoY: +13.1%
- Operating Margin: 15.0%
What is Aarti Industries Ltd's current PE ratio?
Aarti Industries Ltd's current PE ratio is 41.1x.
- Current PE: 41.1x
- Market Cap: 16.9K Cr
- Dividend Yield: 0.21%
What is Aarti Industries Ltd's price-to-book ratio?
Aarti Industries Ltd's price-to-book ratio is 2.9x.
- Price-to-Book (P/B): 2.9x
- Book Value per Share: ₹164
- Current Price: ₹467
Is Aarti Industries Ltd a fundamentally strong company?
Aarti Industries Ltd's fundamental strength based on key financial ratios
- Return on Capital (ROCE): 7.0%
Is Aarti Industries Ltd debt free?
Aarti Industries Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹5,000 Cr
What is Aarti Industries Ltd's return on equity (ROE) and ROCE?
Aarti Industries Ltd's return ratios over recent years
- FY2024: ROCE 7.0%
- FY2025: ROCE 6.0%
- FY2026: ROCE 7.0%
Is Aarti Industries Ltd's cash flow positive?
Aarti Industries Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹775 Cr
- Free Cash Flow (FCF): ₹-366 Cr
- CFO/PAT Ratio: 185% (strong cash conversion)
What is Aarti Industries Ltd's dividend yield?
Aarti Industries Ltd's current dividend yield is 0.21%.
- Dividend Yield: 0.21%
- Current Price: ₹467
Who holds Aarti Industries Ltd shares — promoters, FII, DII?
Aarti Industries Ltd's shareholding pattern (Mar 2026)
- Promoters: 42.1%
- FII (Foreign): 7.4%
- DII (Domestic): 20.1%
- Public: 30.4%
Is promoter holding increasing or decreasing in Aarti Industries Ltd?
Aarti Industries Ltd's promoter holding has decreased recently.
- Current Promoter Holding: 42.1% (Mar 2026)
- Previous Quarter: 42.1% (Dec 2025)
- Change: -0.05% (decreasing — worth monitoring)
Is Aarti Industries Ltd a new momentum entry or an established outperformer?
Aarti Industries Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
What are the key risks in Aarti Industries Ltd?
Aarti Industries Ltd has 5 key risks worth monitoring
- [HIGH] Commodity — Agrochem and pharma intermediates represent ~30% of revenues; sustained Chinese dumping could delay margin recovery timeline
- [MEDIUM] Geopolitical — Further US policy reversals or renegotiations of the trade deal would directly impact the highest-margin export segment
- [MEDIUM] Fx — If export share stays elevated at 65% with longer receivable cycles, free cash flow generation in FY27 could lag earnings recovery
- [LOW] Regulatory — Labour code implementation completed; no residual risk indicated
What did Aarti Industries Ltd's management say in the latest earnings call?
In Q3 FY26, Aarti Industries Ltd's management highlighted
- "Agrochemicals and pharmaceuticals continue to see stable volumes, but pricing remains subdued due to persistent dumping from China [Risk (commodity):..."
- "It was one of the value chain which was mostly impacted due to U.S. tariffs, because the two largest customers actually consume this product in U.S. ..."
- "The increase in export has resulted in an increase in working capital. As a result, the debt and interest costs have increased marginally [Risk (fx):..."
Is Aarti Industries Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Aarti Industries Ltd may be worth studying
- Cash flow is positive — CFO ₹775 Cr
What is the investment thesis for Aarti Industries Ltd?
Aarti Industries Ltd investment thesis summary:
Risk Factors (Bear Case)
- Key risk: Commodity
What is the future outlook for Aarti Industries Ltd?
Aarti Industries Ltd's forward outlook based on current data signals
- Key Risk: Commodity
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.