Commodity
HIGHTrigger: Agrochem and pharma intermediates represent ~30% of revenues; sustained Chinese dumping could delay margin recovery timeline
Monitor: commodity
Aarti Industries Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +11.4%Average12w Streak
In , Aarti Industries Ltd (Speciality Chemicals) is outperforming Nifty 500 with +11.4% relative strength. Fundamentals: Average. On a 12-week streak.
Aarti Industries Ltd Key Facts
- PE Ratio
- 49.6x
- Price/Book
- 2.80x
- Market Cap
- ₹18,402 Cr
- PAT Growth YoY
- +189%
- Revenue Growth YoY
- +26%
- OPM
- 14.0%
- RS vs Nifty 500
- +11.4%
PE: Mid ExpansionRiding Wave
What's Happening
🌐FII stake decreased 3.3% this quarter
💰Trading 85% above estimated fair value — significant premium
Key Risks
1. Commodity
HIGH2. Geopolitical
MEDIUM3. Fx
MEDIUMKey Numbers
PAT Growth YoY
+189%
Inflection Up
Revenue YoY
+26%
Stable
Operating Margin
14.0%
+100 bps YoY
PE Ratio
49.6
PEG Ratio
0.00
EV/EBITDA
18.6
Current Price
₹508
Dividend Yield
0.20%
Fundamental Score
43/100
Average
3Y PAT CAGR
-35%
Market Cap
17.6K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
What 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]”
How Fast Is Aarti Industries Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +26% | +6% | Stable |
| PAT (Net Profit) | +189% | -35% | Inflection Up |
| OPM | 14.0% | +100 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 30, 2026.
Other Top Speciality Chemicals Stocks Beating Nifty 500
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 (Dec 2025) show
- PAT Growth YoY: +189.1% (turning around (inflection up))
- Revenue Growth YoY: +25.8%
- Operating Margin: 14.0% (stable)
Is Aarti Industries Ltd's profit growing or declining?
Aarti Industries Ltd's profit is growing with an turning around (inflection up) trend.
- PAT Growth YoY: +189.1% (latest quarter)
- PAT Growth QoQ: +25.5% (sequential)
- 3-Year PAT CAGR: -34.6%
- Trend: Turning around (inflection up) — consistent growth pattern
What is Aarti Industries Ltd's revenue growth trend?
Aarti Industries Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +25.8%
- Revenue Growth QoQ: +10.4% (sequential)
- 3-Year Revenue CAGR: +6.1%
How is Aarti Industries Ltd's operating margin trending?
Aarti Industries Ltd's operating margin is stable.
- Current OPM: 14.0%
- OPM Change YoY: +1.0% basis points
- OPM Change QoQ: 0.0% basis points
What is Aarti Industries Ltd's 3-year profit and revenue CAGR?
Aarti Industries Ltd's long-term compounding rates
- 3-Year Profit CAGR: -34.6%
- 3-Year Revenue CAGR: +6.1%
Is Aarti Industries Ltd's growth accelerating or decelerating?
Aarti Industries Ltd's earnings growth is turning around (inflection up) with mixed signals on a sequential basis.
- YoY Acceleration: 0.0% bps
- Sequential Acceleration: -24.5% bps
What is Aarti Industries Ltd's trailing twelve month (TTM) performance?
Aarti Industries Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹378 Cr
- TTM PAT Growth: +3.0% YoY
- TTM Revenue: ₹8,000 Cr
- TTM Revenue Growth: +13.3% YoY
- TTM Operating Margin: 13.6%
Is Aarti Industries Ltd overvalued or undervalued?
Aarti Industries Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 49.6x
- Price-to-Book: 3.2x
What is Aarti Industries Ltd's current PE ratio?
Aarti Industries Ltd's current PE ratio is 49.6x.
- Current PE: 49.6x
- Market Cap: 18.4K Cr
- Dividend Yield: 0.20%
How does Aarti Industries Ltd's valuation compare to its history?
Aarti Industries Ltd's current PE is 49.6x.
- Current PE: 49.6x
- Valuation Assessment: Significantly Overvalued
What is Aarti Industries Ltd's price-to-book ratio?
Aarti Industries Ltd's price-to-book ratio is 3.2x.
- Price-to-Book (P/B): 3.2x
- Book Value per Share: ₹158
- Current Price: ₹508
Is Aarti Industries Ltd a fundamentally strong company?
Aarti Industries Ltd is rated Average with a fundamental score of 43.39/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +25.8% (10% weight)
- PAT Growth YoY: +189.1% (10% weight)
- PAT Growth QoQ: +25.5% (10% weight)
- Margins stable (10% weight)
- PEG Ratio: 0.0x vs sector median (15% weight)
- EV/EBITDA: 18.6x vs sector median (15% weight)
Is Aarti Industries Ltd debt free?
Aarti Industries Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹4,000 Cr
What is Aarti Industries Ltd's return on equity (ROE) and ROCE?
Aarti Industries Ltd's return ratios over recent years
- FY2023: ROCE 10.0%
- FY2024: ROCE 7.0%
- FY2025: ROCE 6.0%
Is Aarti Industries Ltd's cash flow positive?
Aarti Industries Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹1,000 Cr
- Free Cash Flow (FCF): ₹-156 Cr
- CFO/PAT Ratio: 375% (strong cash conversion)
What is Aarti Industries Ltd's dividend yield?
Aarti Industries Ltd's current dividend yield is 0.20%.
- Dividend Yield: 0.20%
- Current Price: ₹508
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)
How long has Aarti Industries Ltd been outperforming Nifty 500?
Aarti Industries Ltd has been outperforming Nifty 500 for 12 consecutive weeks, indicating strong sustained outperformance.
Is Aarti Industries Ltd a new momentum entry or an established outperformer?
Aarti Industries Ltd is an established outperformer with 12 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
- Earnings growing at +189.1% YoY
- Cash flow is positive — CFO ₹1,000 Cr
What is the investment thesis for Aarti Industries Ltd?
Aarti Industries Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +25.8% YoY
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Commodity
What is the future outlook for Aarti Industries Ltd?
Aarti Industries Ltd's forward outlook based on current data signals
- Earnings Trend: turning around (inflection up)
- Revenue Trend: stable
- Margin Trend: stable
- Valuation: Significantly Overvalued
- 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.