Aarti Industries

As of the close on 5 November 2026, AARTIIND trades at ₹443.30, reflecting a divergence between its monthly structure and shorter-term momentum. On the monthly horizon, the trend remains bullish with the price above the 20-period SMA and Supertrend, supported by an established trend strength (ADX 25.24). However, daily and weekly charts show a bearish posture: the price is below all supplied moving averages and the Supertrend, with weak trend conviction (daily ADX 17.36). The stock has pulled back -9.8% over the past 20 days and sits in the lower-middle of its 20-day range (+27.2%).

Participation spiked recently with high-volume moves on 2–3 November, including an extreme volume ratio of 3.3x on 2 November during a downward move. This suggests active trading but not necessarily directional clarity. Immediate resistance lies at ₹445.03 (pivot) and ₹446.44 (high), while support is found at ₹436.57 (-1.52%) and ₹425.58 (-4.00%). With annualized volatility at +36.8% and a current drawdown of -18.4%, risk remains elevated. A daily close above ₹446.44 would be required to challenge the immediate bearish structure, while a break below ₹436.57 could expose further downside toward ₹425.58.

Aarti Industries reported strong financial performance for the second quarter of FY27, with revenue surging 75% year-on-year to ₹3,668 crore and net profit increasing by 60.4% to ₹170 crore. The company attributed this growth to higher volumes and robust export demand, which subsequently drove a 6% rise in its share price on November 2, 2026. Following these results, Prabhudas Lilladher issued an 'Accumulate' recommendation on November 3, 2026, setting a price target of ₹476. This analyst view reflects external sentiment based on the reported operational metrics but remains a third-party opinion rather than a factual outcome.

Aarti Industries Limited reported consolidated net profit of ₹377 crore for the half-year ended September 30, 2026, a significant increase from ₹142 crore in the corresponding period last year, against revenue from operations of ₹8,286 crore. The Board approved these unaudited results on October 30, 2026, alongside the repayment of ₹600 crore in outstanding Commercial Papers and the allotment of 14,669 shares under the PSOP 2022 scheme. On November 1, the company disclosed a new strategic manufacturing and supply agreement with a global specialty chemical company, estimated to generate approximately ₹1,500 crore in cumulative revenue over a 10+ year term, with operations expected to commence in FY29. Shareholders subsequently approved a special resolution at an Extraordinary General Meeting on October 31, 2026 (results filed November 2), granting authority to raise up to ₹1,000 crore through private offerings or qualified institutions placements. Phase I of Zone IV has been commissioned, with progressive commercialization targeted during FY27.

Aarti Industries is executing a high-growth phase with significant margin expansion, though earnings quality faces near-term headwinds from rising finance costs and working capital shifts. In Q2 FY2026-27, revenue surged to ₹6,055 crore (up 75% YoY in the trailing twelve months), driving Net Profit to ₹324 crore and Basic EPS to ₹8.92 per share. This follows a strong annual trajectory where TTM sales reached ₹10,579 crore and TTM net profit hit ₹593 crore.

However, operating leverage is under pressure. While Operating Profit grew to ₹1,454 crore on a TTM basis, Finance Costs rose sharply to ₹352 crore (TTM) and doubled sequentially in Q2 to ₹171 crore, reflecting increased borrowings that climbed to ₹5,186 crore as of Sep 2026. Cash conversion has deteriorated, with CFO/EBITDA dropping to 67% in Mar 2026 from 123% in Mar 2025, driven by a widening Cash Conversion Cycle (54 days) due to higher Days Payable (137 days). Despite this, ROCE stabilized at 7%, and DII ownership increased to 20.9% in Sep 2026, signaling institutional confidence in the growth story.

Aarti Industries demonstrated significant operational momentum in Q2 FY27, with revenue surging 75% year-on-year to ₹3,668 crore and net profit rising 60.4% to ₹170 crore. This growth was driven by higher volumes and strong export demand, providing a fundamental counterweight to recent technical weakness. While the daily trend remains bearish with the stock trading at ₹443.30—below the ₹476 price target set by Prabhudas Lilladher—the monthly chart retains a bullish super-trend direction. The constructive case hinges on whether this earnings strength can stabilize the near-term downtrend; key resistance sits closely at ₹445.03, while support is found at ₹436.57.

Aarti Industries faces near-term technical headwinds despite strong underlying fundamentals. The stock is trading at ₹443.30, showing a bearish daily supertrend and negative slope across its 20-day and 50-day moving averages. Short-term momentum indicators suggest selling pressure, with the minus DI (20.33) exceeding the plus DI (16.3). The stock has experienced a significant correction, currently sitting in an -18.4% drawdown from recent highs, with a maximum historical drawdown of -30.1%. Volatility remains elevated at an annualized rate of +36.8%, indicating substantial price fluctuation risk. While the monthly trend remains bullish, the weekly trend also signals bearishness, highlighting a divergence in timeframes that warrants caution for short-term positioning.