Aarti IndustriesNSE:AARTIIND -1.90%86 ROA % is 4.12% as of Mar. 2026, which is 48% below its 10-year median of 7.97. GuruFocus rates NSE:AARTIIND with a GF Score™ of 86/100 and a GF Value™ of ₹588.29 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 1,614 Chemicals companies, Aarti Industries ranks better than 55.33% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Aarti Industries's annualizedNet Income for the quarter that ended in Mar. 2026 was ₹5,480 Mil.
Aarti Industries's average Total Assets over the quarter that ended in Mar. 2026 was ₹132,990 Mil. Therefore, Aarti Industries's annualized ROA % for the quarter that ended in Mar. 2026 was 4.12%.
The historical rank and industry rank for Aarti Industries's ROA % or its related term are showing as below:
NSE:AARTIIND'
s ROA % Range Over the Past 10 Years
Min: 3.12 Med: 7.97 Max: 15.31
Current: 3.48
During the past 13 years, Aarti Industries's highest ROA % was 15.31%. The lowest was 3.12%. And the median was 7.97%.
NSE:AARTIIND's ROA % is ranked better than 55.33% of 1614
companies
in the Chemicals industry
Industry Median: 2.9
vs NSE:AARTIIND: 3.48
Aarti Industries (NSE:AARTIIND) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Aarti Industries ROA % Related Terms
Aarti Industries ROA % Historical Data
* Premium members only.
The historical data trend for Aarti Industries's ROA % 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.
For the Specialty Chemicals subindustry, Aarti Industries's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Aarti Industries's ROA % distribution charts can be found below:
* The bar in red indicates where Aarti Industries's ROA % 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Aarti Industries (NSE:AARTIIND) has a ROA % of 4.12% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Aarti Industries and its competitors. This is 48% below median its historical median of 7.97. Over the past decade, Aarti Industries' ROA % has ranged from 3.12 to 15.31. According to the industry distribution chart, Aarti Industries ranks #721 out of 1614 companies in the Chemicals industry, placing it in the top 44.7%.
Is Aarti Industries' ROA % too high?
Aarti Industries' current ROA % of 4.12% is 48% below median its 10-year median of 7.97. Over the past 10 years, this metric has ranged from a low of 3.12 to a high of 15.31. The Chemicals industry median ROA % is 2.90. Aarti Industries' value of 4.12% is 42.1% above this industry median. Based on the distribution chart, Aarti Industries ranks #721 out of 1614 companies in the Chemicals industry, which is above the industry midpoint. Overall, Aarti Industries has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aarti Industries' ROA % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Aarti Industries ranks #721 out of 1614 companies for ROA %. This puts Aarti Industries in the upper half of its industry. The industry median ROA % is 2.90. Aarti Industries' value of 4.12% is 42.1% above this benchmark. Historically, Aarti Industries' own ROA % has ranged from 3.12 to 15.31 over the past decade. While the company's 10-year median is 7.97 vs. the industry median of 2.90, Aarti Industries has consistently been above 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 ROA % for a Chemicals company?
The median ROA % among Chemicals companies is 2.90, based on 1,614 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Aarti Industries's current ROA % of 4.12% is 42.1% above 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Aarti Industries and its competitors. For the Chemicals industry, the median ROA % is 2.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aarti Industries's current ROA % is 4.12%, which is 48% below median its own 10-year median of 7.97. 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 ₹588.29, compared to a current price of ₹457.20 — trading 22.3% below its estimated fair value. The current ROA % is 4.12%, which is 48% below median its 10-year median of 7.97 and 42.1% above the Chemicals industry median of 2.90. Aarti Industries' overall GF Score™ is 86/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Aarti Industries (NSE:AARTIIND), the current ROA % is 4.12% 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 ₹457.20 is trading 22.3% below its estimated GF Value™ of ₹588.29.
GuruFocus considers Aarti Industries to be Modestly Undervalued.
Key valuation signals for NSE:AARTIIND:
ROA %: 4.12% (48% below median its 10-year median of 7.97)
GF Value™: ₹588.29 vs. price of ₹457.20 (22.3% below fair value)
Industry Position: 42.1% above the Chemicals median (#721 of 1614)
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.
86GF Score
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