AARTI industries - Capacity utilization helping stock rise

Aarti Industries appears to be in the early stages of a meaningful recovery after a prolonged downtrend. The long-term chart shows a clear base formation around ₹350–400, followed by a sustained sequence of higher lows and higher highs, indicating that the broader trend is gradually improving. Price has now moved above the Ichimoku cloud and is holding around ₹525, while the cloud structure is turning supportive. The immediate hurdle is ₹530–535, and a decisive breakout above this zone can open the way towards ₹585–600, followed by ₹650. On the downside, ₹510–500 is the key support area and holding above this zone would keep the recovery structure intact. Fundamentally, the improvement is becoming more visible as well: Q1 FY27 revenue rose 42% YoY to ₹2,627 crore, EBITDA increased 79% YoY to ₹385 crore and PAT jumped 260% to ₹155 crore. The company is also seeing better capacity utilisation, progress on Zone IV and chlorotoluene projects, and improving contribution from higher-value speciality chemicals. With the speciality-chemicals cycle showing signs of gradual recovery, Aarti Industries looks positioned for further rerating if earnings momentum sustains. Overall, the technical and fundamental picture is improving, and a sustained move above ₹535 would strengthen the case that the long-term recovery is gaining traction