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Aarti Industries Limited Annual Report FY2026

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Official Annual + Quarterly Filings · AI Business Intelligence
NSE: AARTIIND
Sector: Chemicals
Industry: Specialty Chemicals
Source: NSE / BSE
Last Updated: 16 Jun 2026
Business Intelligence Report Verdict
Average
Outlook: Neutral

Quality Scores

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Unlock the full 22-section intelligence dossier for Aarti Industries Limited

All 21 scores, fair value models, forensic red-flag audit, management promise tracker, AI chat and PDF.

Executive Intelligence Brief

The business in brief
  • Aarti Industries (AARTIIND) is a leading Indian specialty chemicals player with a dominant global position in the Benzene-based chemistry value chain.
  • Over the last decade, the company scaled revenue through aggressive brownfield and greenfield expansions, including high-value long-term contracts.
  • However, the recent 3-5 year period shows significant margin compression and a drop in return ratios due to heavy capital expenditure (capex) cycles and global demand volatility.
What changed in FY2026
  • The company has undergone a profound transformation from a primary manufacturer of Nitro Chloro Benzene (NCB) to a diversified specialty chemical giant with complex chemistry capabilities.
  • Over the last 10 years, Aarti has successfully moved up the value chain into Ethylation, Nitrotoluene, and Chlorination chemistries, reducing reliance on single-product segments.
What management is saying
  • Management is viewed as technically proficient with deep domain expertise in nitration and chlorination chemistries.
  • They have successfully established 'EcoVadis Platinum' status, ranking in the top 1% globally for sustainability, which is a key barrier to entry for global MNC customers.
Financial highlights
  • The 10-year revenue CAGR is a healthy 11%, but the 3-year profit growth has turned negative at -9%, indicating severe margin pressure.
  • Operating profit margins (OPM) have fluctuated significantly, peaking at 28% in 2022 before retreating to 14-15% levels in 2024-2026 projections.

Full chapters continue in the complete report.

Valuation engine
  • Multi-model fair value computed
  • Fair value range & margin of safety
Forensic integrity
  • Beneish M-Score: Grey zone
  • Altman Z-Score: Grey zone
  • 10 structural traps scanned
Red flags & risks
  • 3 red flags documented
  • 6 auditor checks run
  • 10 risks ranked by severity
Guidance delivery
  • 3 management promises tracked
  • 10 growth drivers identified

16 more proprietary scores

Report owners
Competitive Position
Business Risks
Structural Traps
Consistency
Auditor Trust
Balance Sheet
Business Evolution
Earnings Quality
Subsidiary Value
Financial Quality
Business Evolution
Capital Allocation
Capital Efficiency
Management Quality
Management Incentive Alignment
Shareholder Alignment

Major Opportunities

  • Market leader in Nitro Chloro Benzene (NCB) segment
  • EcoVadis Platinum sustainability rating (Top 1%)
  • Consistently positive Cash from Operations
  • Strong distribution network and global market share
  • Highly diversified product portfolio within specialty chemicals

Major Risks

  • Severe ROCE contraction from 22% (2022) to 7% (2024)
  • Continuous negative Free Cash Flow for a decade
  • Sharp increase in Net Debt levels recently
  • Operating margins crashed from 28% to 14%
  • Increasing working capital cycle/Debtor days

Included in the Full Report

This brief shows only the highlights. Unlock the complete analysis:

Business Model & Segments
Competitive Advantage (Moat)
Capital Allocation
Corporate Governance
Cash Flow Quality
10-Year Financial Trends
Quality & Compounder Scores
Multi-Model Valuation
Peer Comparison
Risk Deep Dive
Management Track Record
Downloadable PDF Report

About This Annual Report

The Aarti Industries Limited FY2026 Annual Report is the company's flagship annual disclosure, filed with NSE / BSE. It covers the full-year business review, management discussion & analysis (MD&A), audited financial statements, director's report, corporate governance report, auditor's report, risk factors, capital allocation, subsidiaries, related-party transactions and ESG initiatives. This page consolidates the official PDF and an AI-generated summary so investors can quickly grasp what changed vs. prior years — sales growth, margin trend, cash flow quality, capex, dividends and management outlook — without having to read the entire filing.

Why Use AI?

  • Summarises hundreds of pages into a focused executive briefing
  • Identifies year-on-year key changes automatically
  • Extracts management commentary and tone
  • Highlights top risks and opportunities
  • Compares business evolution vs. earlier years
  • Answers your questions in plain English via Ask AI

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