Company Overview
Arfin India Limited (BSE: 539151, NSE: ARFIN) is engaged in manufacturing, trading and selling of various ferrous & non-ferrous metal products with manufacturing facilities at Chhatral, Dhanot and Vadaswami in Gujarat. The company caters to both domestic and international markets.
Financial Performance Highlights (Consolidated FY 2025-26)
Arfin India reported strong financial results for FY26 with consolidated revenue from operations of ₹617.99 crore (FY25: ₹615.75 crore) and net profit surging 69% to ₹15.45 crore from ₹9.15 crore in FY25. Profit before tax increased 65% to ₹23.71 crore from ₹14.38 crore. Basic EPS improved to ₹0.92 from ₹0.54. EBITDA reached ₹47.08 crore with margin of 7.62% compared to ₹38.26 crore and 6.21% margin in FY25.
AGM and Corporate Governance
The company submitted its 34th Annual General Meeting notice and Annual Report for FY 2025-26 to BSE and NSE under SEBI Regulations 29, 30, and 34. The virtual AGM is scheduled for September 19, 2026 to adopt financial statements, reappoint director Mr. Jatin M. Shah, and ratify cost auditor remuneration of ₹60,000. The board comprises 6 directors including 3 independent directors, with 7 board meetings held during FY25-26.
Borrowings and Security Details
Total borrowings stood at ₹129.27 crore as of March 31, 2026, comprising ₹17.14 crore in non-current borrowings and ₹112.13 crore in current borrowings. Secured facilities are provided by a consortium of banks including IDBI Bank, State Bank of India, Bank of Baroda, ICICI Bank, and Standard Chartered Bank against hypothecation of current assets and equitable mortgage of factory properties in Gujarat. Interest rates range from 7.8% to 9.9% for rupee loans and 6.5% to 7.0% for USD loans.
Contingent Liabilities and Disputes
The company disclosed contingent liabilities of ₹14.49 crore related to custom duty (₹41.30 lakh) and income tax matters (₹317.86 lakh), along with bank guarantees of ₹11.90 crore issued to various parties. Management has filed appeals and based on legal opinions, believes it has sufficient merit to succeed in these matters, hence no provisions have been made.
Operational and Subsidiary Performance
Total sales volume reached 24,047 metric tons with gross export sales of ₹98.34 crore. The company operates four integrated production units with installed capacity of 71,000 metric tons per annum. Wholly-owned subsidiary Arfin Titanium & Speciality Alloys Limited contributed revenue of ₹23.13 crore and profit of ₹1.85 crore during FY26.
Key Financial Ratios and Metrics
Financial ratios showed significant improvement with return on equity increasing to 9.07% from 5.83% and debt-service coverage ratio strengthening to 2.51x from 1.93x. Net profit margin improved to 2.50% from 1.49%, while inventory turnover ratio increased to 3.05x from 2.92x. Debt-equity ratio remained stable at 0.76.
Capital Structure and Dividend
Paid-up equity share capital stands at ₹16.87 crore consisting of 16.87 crore equity shares of ₹1 each. Promoter holding was 69.78% as of March 31, 2026. While an interim dividend was declared and paid during the year, no final dividend was recommended for FY25-26 to conserve profits for future operations.
Regulatory Compliance and Listing
The company successfully listed on NSE in July 2025, achieving dual listing status. 99.99% of shares are held in dematerialized form. Annual listing fees have been paid to both exchanges, and no material orders were passed by regulators or courts impacting going concern status. Credit ratings stand at CRISIL BBB/Stable for long-term and CRISIL A3+ for short-term bank facilities.