Financial Performance Overview (₹ Crore)

Standalone Results:

  • Total Income: ₹276.25 (FY26) vs ₹252.95 (FY25) - growth of 9.2%
  • Revenue from Operations: ₹272.31 crore (FY26) vs ₹250.59 crore (FY25) - growth of 8.7%
  • Export Sales: ₹104.33 crore (FY25: ₹81.51 crore), a significant increase of 28.0%
  • EBITDA: ₹28.57 (FY26) vs ₹26.11 (FY25) - growth of 9.4%
  • Profit Before Tax (PBT): ₹16.39 (FY26) vs ₹16.03 (FY25) - growth of 2.2%
  • Profit After Tax (PAT): ₹4.68 (FY26) vs ₹11.75 (FY25) - decline of 60.2%
  • Basic & Diluted Earnings Per Share (EPS): ₹6.49 (FY25: ₹15.42)

Adjusted Performance (excluding one-time items):

  • EBITDA: ₹35.54 (FY26) vs ₹26.11 (FY25)
  • PBT: ₹23.91 (FY26) vs ₹16.03 (FY25)
  • PAT: ₹16.95 (FY26) vs ₹11.75 (FY25)

Note: The reported figures include an estimated ₹6 crore of one-time, non-recurring settlement charges relating to legacy income tax, customs, and municipal tax matters. The adjusted figures add back these exceptional items to indicate underlying operating performance.

Balance Sheet Position (as at March 31, 2026)

  • Property, Plant and Equipment: Net Block of ₹97.18 crore
  • Inventories: ₹24.24 crore (FY25: ₹14.20 crore)
  • Trade Receivables: ₹41.47 crore (FY25: ₹51.64 crore)
  • Cash & Bank Balances: ₹54.38 lakhs in current accounts (FY25: ₹5.75 crore)
  • Total Borrowings: ₹70.83 crore (FY25: ₹33.68 crore), a substantial increase
  • Gearing Ratio (Net Debt/Equity): 0.35 (FY25: 0.16)
  • Paid-up Capital: ₹8 crore (80,00,000 equity shares of ₹10 each)

Resolution of Key Legal Matters

The Company achieved closure on several long-standing legal, tax, and regulatory matters during the year:

1. Customs Dues Settlement: Settled a long-pending dispute of approximately ₹5.10 crore with Principal Commissioner of Customs through upfront payment of approximately ₹2.74 crore and balance in 24 monthly installments.

2. Income Tax Settlement: Legacy income tax arrears of approximately ₹5.29 crore pertaining to block period 1988-1998 settled under Vivad Se Vishwas 2.0 Scheme.

3. Municipal Tax Settlement: Outstanding municipal tax dues of approximately ₹4.40 crore settled after withdrawing long-pending litigation at Calcutta High Court.

Operational Highlights

  • Manufacturing Expansion: Acquired existing running unit of Vishvam Formalin and Angel Resins at Kadadra, Gandhinagar, Gujarat, adding 49,500 TPA of Formaldehyde and around 60,000 TPA of Resins capacity.
  • Export Achievement: Exports crossed ₹100 crore mark during FY 2025-26, with expectations to do more in current year.
  • New Business Verticals: Company working on new business verticals with R&D including Feed Additives, RTU (Ready to Use Glue), Laminate Resins, Rubber and Tyre Chemicals, and Resins for Paper Packaging and Corrugated Boxes.

Acquisition of RCHEM Industries Pvt. Ltd.

  • The company paid ₹3.01 crore as consideration for the NCLT-approved purchase of RCHEM Industries Pvt. Ltd.
  • As the shares have not been transferred as of March 31, 2026, it is not considered a subsidiary. The amount is shown under Other Current Assets.

34th Annual General Meeting Details

Date: September 19, 2026, at 3:30 PM through Video Conferencing/Other Audio-Visual Means

Ordinary Business:

1. Adoption of Audited Standalone and Consolidated Financial Statements for FY ended March 31, 2026

2. Reappointment of Mr. Mukesh Mundhra (DIN: 00658602) as Director retiring by rotation

Special Business:

3. Approval for increase in remuneration of Mr. Suraj Ratan Mundhra, Chairman and Managing Director, to ₹4,80,000 per month

4. Approval for increase in remuneration of Mr. Rajesh Mundhra, Whole Time Director, to ₹4,80,000 per month

5. Approval for increase in remuneration of Mr. Mukesh Mundhra, Whole Time Director, to ₹4,80,000 per month

6. Ratification of remuneration of ₹40,000 for Cost Auditors M/s Amit Khetan & Co for FY 2026-27

Corporate Governance

  • CSR Expenditure: ₹36.59 lakhs contributed to Rukmani Devi Shiv Chand Ram Foundation against requirement of ₹33.70 lakhs
  • Dividend: No dividend recommended for FY 2025-26
  • Subsidiaries: 7 wholly-owned subsidiaries
  • Promoter Shareholding: 53.30%
  • Key Personnel: Chairman & Managing Director: Suraj Ratan Mundhra; Whole Time Directors: Rajesh Mundhra, Mukesh Mundhra; CFO: Navneet Bagri

Auditor's Emphasis of Matter

The Statutory Auditor's report includes an emphasis of matter regarding the acquisition of R-Chem Industries through NCLT proceedings for ₹301 lakhs. While possession has been taken, the shares have not yet been transferred in the name of ARCL Organics Ltd as at March 31, 2026, pending ROC updates and pollution control approvals.