AARTIIND
Small CapAarti Industries Limited
Industrials
Aarti Industries is a leading Indian specialty chemical manufacturer with a diversified product portfolio across energy, agrochemical, dyes, pigments, paints, and pharma applications. The company focuses on operational efficiency, product diversification, and deep customer engagement, leveraging its global footprint and relationships.
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.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/4 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 80/100Rev +13% YoY · PAT +43% YoY · margin expansion · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,205 Cr | +13.1% | -4.9% |
| EBITDA | ₹341 Cr | +30.2% | +6.2% |
| Operating margin | 15.0% | +200 bps | +100 bps |
| PAT | ₹137 Cr | +42.7% | +3.0% |
| PAT margin | 6.2% | +128 bps | +47 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
AARTIIND reported strong Q4 FY26 results with revenue up 9% YoY to INR2,422 Cr, EBITDA up 29% YoY to INR342 Cr, and PAT up 43% YoY to INR137 Cr. Full-year FY26 revenue grew 12% YoY to INR9,018 Cr, EBITDA 15% YoY to INR1,172 Cr, and PAT 27% YoY to INR419 Cr, driven by volume growth and operational efficiencies.
Despite strong Q4 FY26 financial performance, the company faces significant near-term headwinds from escalating geopolitical tensions in the Middle East, leading to supply chain disruptions, elevated raw material costs, and export volume impacts. Project commissioning delays and expanded working capital also add pressure. New long-term contracts and upcoming capacities offer future earnings visibility.
Revenue by Application
Latest issuer-disclosed distribution across 3 reported categories.
Long-term Backward Integration Contract
Concluded a backward integration initiative with a leading global chemical company for a 15-year contract period, with a capex of INR200-250 crore.
Multiyear Agrochemical Supply Agreement
Signed a $150 million multiyear supply agreement with a global agrochemical innovator for a critical intermediate, extending through March 31, 2030, without incremental capex.
Polymer Applications (EV Market)
Polymers application is in a strong growth phase, especially demand and volume driven due to applications in the EV market.
Zone IV Projects Commissioning
Zone IV projects are expected to be commissioned in a phased manner during FY27, with initial revenue from Q2 FY27.
Energy Application Expansion
Expansion to 360 KTPA is on track and expected to be commissioned soon in line with market requirements.
Zone IV Projects
Multipurpose plant and PEDA plants are under commissioning trials and should come on stream soon. Remaining 5 chemistry blocks will commission gradually in next couple of quarters.
Augene (Superform JV)
The Superform joint venture is on track for commissioning in H1 FY27 with an initial focus on agrochemicals and coating end markets.
Circularity Initiatives
Circularity initiatives continue to gain momentum with commissioning on track for CY26.
Chinese Anti-Involution Stance
China's anti-involution stance and impact to products related to PNCB in the NCB chain should start seeing benefits from Q1 FY27 onwards.
Increased Regulatory Scrutiny in China
Increasing scrutiny on nitration chemistry-related assets in China may lead to industry consolidation and better conduct, benefiting efficient players.
Geopolitical Tensions in Middle East
Escalation of geopolitical tensions in the Middle East has led to disruptions across global supply chains, impacting trade flows and logistics.
Elevated Raw Material Prices
Prices of key raw materials such as benzene, sulfur, aniline, toluene, methanol went up by over 60%, increasing input cost structures.
Elevated Freight Rates
Elevated freight rates are resulting in an increase in cost of global trade, accounting for the bulk of the increase in other expenses.
Middle East Export Disruptions
Experienced disruptions in shipments to the Middle East, impacting energy application volumes (down 4% QoQ). Full impact expected in Q1 FY27.
Geopolitical Volatility
The specific situation in West Asia continues to pose near-term risk to the availability of certain critical feedstock and placement of key products in the Middle East.
Refining Product Margin Volatility
Ongoing volatility in the refining product margin creates uncertainty in terms of gasoline naphtha cracks and supply chain risk related to key RMs.
Working Capital Expansion
Working capital requirements expanded due to significant elevation in raw material prices, causing an uptick in net debt and interest expenses.
Competition from China
MPDA within the polymer application continues to underperform due to heavy competition from China.
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.
Financial results are primarily compared YoY to assess overall growth trends. However, QoQ comparison is relevant for specific operational metrics like energy application volumes to capture sequential impacts from geopolitical disruptions and raw material volatility.
Revenue
Q4 FY26 revenue of INR2,422 crore, representing a growth of 9% Y-o-Y. Full year FY26 revenue stood at INR9,018 crore, up 12% on a Y-o-Y basis.
EBITDA
Q4 FY26 EBITDA stood at INR342 crore, growing 29% Y-o-Y. Full year FY26 EBITDA grew by over 15% to close at INR1,172 crore.
PAT
Q4 FY26 profit after tax was INR137 crore, registering a growth of 43% Y-o-Y. Full year FY26 PAT recorded a growth of about 27% to close the year at INR419 crore.
Capex
Capex for FY26 was at about INR1,125 crore, in line with guidance. Capex for FY27 is expected to be in the range of INR700 crore to INR800 crore.
FY27 Capex Optimization
Capex for FY27 is expected to be in the range of INR700 crore to INR800 crore, focused on niche high-return projects to optimize capital allocation.
Net Debt Reduction Target
Anticipates net debt to decline in the current year (FY27) given lower capex intensity and improving cash flow, despite current pricing scenario.
Working Capital Normalization
Working with customers and suppliers to optimize the working capital cycle, but normalization might take some time.
Mitigating Middle East Impact
Actively working with suppliers and customers to explore alternate sourcing and placement avenues to ensure continuity of operations.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Zone IV Project Commissioning & Ramp-up | Multipurpose and PEDA plants under commissioning trials; others gradually in next couple of quarters. Delayed by 3-4 months. | Phased commissioning during FY27 and initial revenue accruals starting from Q2 FY27. |
| Middle East Geopolitical Situation | Disruptions impacting exports, especially energy application volumes. Full impact expected in Q1 FY27. | Stabilization of the situation to restart flows to Dubai and Oman markets and potential increase in demand. |
| Working Capital Cycle | Expanded due to elevated raw material prices and increased export shipments (longer voyage times). | Normalization of working capital (target 55-60 days) as raw material prices stabilize and export mix shifts. |
| Impact of Chinese Anti-Involution | Expected to benefit PNCB in NCB chain from Q1 FY27. | Broad-based margin recovery in agrochemical and other nitration chemistries as industry consolidation plays out. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
Our capex for FY27 is expected to be in the range of INR700 crore to INR800 crore as we continue our journey to optimize capex and maximize the returns.
"Our capex for FY27 is expected to be in the range of INR700 crore to INR800 crore"
Our capex for FY27 is expected to be in the range of INR700 crore to INR800 crore as we continue our journey to optimize capex and maximize the returns.
"Our capex for FY27 is expected to be in the range of INR700 crore to INR800 crore"
Net debt is anticipated to decline in the current year (FY27) due to lower capex intensity.
"we still anticipate the net debt to decline in the current year"
Net debt is anticipated to decline in the current year (FY27) due to lower capex intensity.
"we still anticipate the net debt to decline in the current year"
Augene, the Superform joint venture, is on track for commissioning in H1FY27 with an initial focus on agrochemicals and coating end markets.
"Augene, the Superform joint venture is on track for commissioning in H1FY27"
Augene, the Superform joint venture, is on track for commissioning in H1FY27 with an initial focus on agrochemicals and coating end markets.
"Augene, the Superform joint venture is on track for commissioning in H1FY27"
Multipurpose plant and PEDA plants are under commissioning trials and should come on stream soon, expected to be commissioned and commercialized within this quarter.
"Multipurpose plant and PEDA plants are actually under commissioning trials and should come on stream soon"
Multipurpose plant and PEDA plants are under commissioning trials and should come on stream soon, expected to be commissioned and commercialized within this quarter.
"Multipurpose plant and PEDA plants are actually under commissioning trials and should come on stream soon"
Trend score and candlestick chart
55NeutralSMA20 +17.3% / mo
Technical chart
AARTIINDweekly · 1Y-4.7%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 46. Wait for confirmation.
- SMA20 rising (~14.8% over last month) — short-term momentum positive.
- RSI(14) at 46 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 16% off 52W high · 30% 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, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 7/9.
- Balance sheet contributes 5/15 to the score.
- Growth contributes 6/25 to the score.
Main drags
- Fair-value margin of safety is negative at -603.3%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 3/30; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
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.
Score history
12 stored score snapshots. Latest stored move: -1 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 42nd percentile of the scored universe and 38th percentile within Industrials. Main check: financial discipline is weak at 40/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: ROCE is low at 6.9%.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 38th pctile, median 68 · Small: 47th pctile, median 65
173 documents indexed, but claim history is not strong enough yet.
4 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead 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.
Trust positives
- ▸Promoter pledge is zero.
- ▸3/4 latest quarters had positive YoY revenue growth.
- ▸3/4 latest quarters had positive YoY PAT growth.
- ▸Latest 3 quarters had positive YoY PAT growth.
Trust risks
- ▸ROCE is low at 6.9%.
- ▸ROE is low at 7.1%.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 38.10
- P/B
- 2.64
- EV/EBITDA
- 12.59
- Market Cap
- 15686.00Cr
Profitability
- ROE
- 7.13%
- ROCE
- 6.85%
- ROA
- 3.15%
- Dividend Y
- 0.23%
Growth (CAGR)
- Revenue 5Y
- 13.00%
- EPS 5Y
- -5.00%
- Revenue 3Y
- 8.00%
- EPS 3Y
- -9.00%
Balance Sheet
- Debt/Equity
- 0.83
- Interest Coverage
- 3.43×
- Altman Z
- 2.96
- Book Value
- 164.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 2/5
- OCF
- 775.00 Cr
- EPS TTM
- 11.56
Shareholding
- Promoter Hold
- 42.09%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 51%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.