Aarti IndustriesNSE:AARTIIND +1.17%88 Current Ratio is 0.83 as of Mar. 2026, which is 17% below its 10-year median of 1.00. GuruFocus rates NSE:AARTIIND with a GF Score™ of 88/100 and a GF Value™ of ₹589.83 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 1,604 Chemicals companies, Aarti Industries ranks worse than 89.84% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Aarti Industries's current ratio for the quarter that ended in Mar. 2026 was 0.83.
Aarti Industries has a current ratio of 0.83. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Aarti Industries has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Aarti Industries's Current Ratio or its related term are showing as below:
NSE:AARTIIND'
s Current Ratio Range Over the Past 10 Years
Min: 0.83 Med: 1 Max: 1.33
Current: 0.83
During the past 13 years, Aarti Industries's highest Current Ratio was 1.33. The lowest was 0.83. And the median was 1.00.
NSE:AARTIIND's Current Ratio is ranked worse than 89.84% of 1604
companies
in the Chemicals industry
Industry Median: 1.89
vs NSE:AARTIIND: 0.83
Aarti Industries (NSE:AARTIIND) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Aarti Industries Current Ratio Related Terms
Aarti Industries Current Ratio Historical Data
* Premium members only.
The historical data trend for Aarti Industries's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:AARTIIND vs LIN, SHW, ECL: Current Ratio Comparison
For the Specialty Chemicals subindustry, Aarti Industries's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Aarti Industries Current Ratio vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Aarti Industries's Current Ratio distribution charts can be found below:
* The bar in red indicates where Aarti Industries's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Aarti Industries (NSE:AARTIIND) has a Current Ratio of 0.83 as of Mar. 2026. This is 17% below median its historical median of 1.00. Over the past decade, Aarti Industries' Current Ratio has ranged from 0.83 to 1.33. According to the industry distribution chart, Aarti Industries ranks #1441 out of 1604 companies in the Chemicals industry, placing it in the top 89.8%.
Is Aarti Industries' Current Ratio too high?
Aarti Industries' current Current Ratio of 0.83 is 17% below median its 10-year median of 1.00. Over the past 10 years, this metric has ranged from a low of 0.83 to a high of 1.33. The Chemicals industry median Current Ratio is 1.89. Aarti Industries' value of 0.83 is 56.1% below this industry median. Based on the distribution chart, Aarti Industries ranks #1441 out of 1604 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Aarti Industries has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aarti Industries' Current Ratio compare to LIN and SHW?
According to the Chemicals industry distribution chart, Aarti Industries ranks #1441 out of 1604 companies for Current Ratio. This places Aarti Industries in the lower half of its industry. The industry median Current Ratio is 1.89. Aarti Industries' value of 0.83 is 56.1% below this benchmark. Historically, Aarti Industries' own Current Ratio has ranged from 0.83 to 1.33 over the past decade. While the company's 10-year median is 1.00 vs. the industry median of 1.89, Aarti Industries has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a Chemicals company?
The median Current Ratio among Chemicals companies is 1.89, based on 1,604 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Aarti Industries's current Current Ratio of 0.83 is 56.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Chemicals industry, the median Current Ratio is 1.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aarti Industries's current Current Ratio is 0.83, which is 17% below median its own 10-year median of 1.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aarti Industries stock overvalued right now?
Based on GuruFocus' analysis, Aarti Industries (NSE:AARTIIND) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹589.83, compared to a current price of ₹487.70 — trading 17.3% below its estimated fair value. The current Current Ratio is 0.83, which is 17% below median its 10-year median of 1.00 and 56.1% below the Chemicals industry median of 1.89. Aarti Industries' overall GF Score™ is 88/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Aarti Industries (NSE:AARTIIND), the current Current Ratio is 0.83 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Aarti Industries (NSE:AARTIIND) Overvalued in 2026?
Based on GuruFocus' analysis, Aarti Industries stock appears to be undervalued.
The current stock price of ₹487.70 is trading 17.3% below its estimated GF Value™ of ₹589.83.
GuruFocus considers Aarti Industries to be Modestly Undervalued.
Key valuation signals for NSE:AARTIIND:
Current Ratio: 0.83 (17% below median its 10-year median of 1.00)
GF Value™: ₹589.83 vs. price of ₹487.70 (17.3% below fair value)
Industry Position: 56.1% below the Chemicals median (#1441 of 1604)
No single metric tells the full story. See the NSE:AARTIIND stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aarti Industries Ltd manufactures and sells chemicals and chemical-based products. It sells benzene-based chemicals, which are used in agricultural products, dyes and pigments, and flavors and fragrances. The company provides applications for industries spanning agrochemicals, pharmaceuticals, polymers and additives, fertilizers, dyes and pigments, home and personal care (FMCG), energy, and more. The company generates maximum revenue by exporting its products to other countries and the rest through its domestic operations.
88GF Score
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