Affordable Robotic & Automation reported a modest growth in its standalone financial results for the quarter ended June 30, 2026 (Q1FY26). The company recorded total revenue from operations of ₹4.50 crore, an increase of 11.2% compared to ₹4.05 crore in the same quarter of FY25. This top-line expansion was accompanied by a rise in net profit, which stood at ₹0.55 crore, up 10.5% year-on-year from ₹0.50 crore.

The Board of Directors approved the unaudited standalone and consolidated financial results during its meeting held on August 13, 2026. The company has published the results in The Financial Express (English) and Loksatta (Marathi), as required under Regulations 30, 33, and 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Highlights

What the Numbers Show

The data indicates a slight improvement in cost management relative to revenue growth. While revenue increased by 11.2%, total expenditure grew at a marginally slower pace of 10.9%. This divergence contributed to a 13.2% rise in profit before tax, outpacing the revenue growth rate. The net profit margin expanded slightly, reflecting effective control over operational costs during the period.

Corporate Actions

The company did not declare any dividend for the quarter. There were no significant related-party transactions or material changes in accounting policies disclosed in the filing. The financial statements were reviewed by the statutory auditors, M/s. S.K. Shah & Co., Chartered Accountants, who issued an unqualified audit report.

Affordable Robotic & Automation Limited has secured board approval for the preferential issue of 10.94 lakh fully convertible warrants to promoter Milind Padole to convert an outstanding unsecured loan of ₹21 crore. The warrants will be issued at a price of ₹192 each, including a premium of ₹182 per share, aggregating to ₹21 crore. This conversion is intended to strengthen the company's capital structure and reduce debt obligations, improving leverage and coverage ratios.

The issuance is subject to shareholder approval via a postal ballot, for which the notice was issued on July 20, 2026. The remote e-voting period commences on July 21, 2026, at 09:00 a.m. IST and concludes on August 19, 2026, at 05:00 p.m. IST. The regulatory disclosures were made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the pricing follows Regulation 164 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Warrant Issuance and Impact

The board proposes to allot warrants convertible into one equity share of ₹10 each within 18 months of allotment. On a fully diluted basis, promoter group shareholding is expected to increase from 41.41% to approximately 46.36% post-conversion. The settlement of the loan liability through equity conversion is expected to enhance financial flexibility and support strategic growth in the industrial automation sector.

The table below outlines the pre and post-issue holding details of the allottee:

Related Party Transactions

Shareholders will also vote on resolutions for material related party transactions for FY 2026–27. The first resolution seeks approval for transactions with subsidiary ARAPL Raas Private Limited, involving the sale of goods or loans for working capital, not exceeding ₹100 crore. The second resolution seeks approval to avail borrowings from promoter group companies not exceeding ₹50 crore during a financial year. The Audit Committee and the Board of Directors have approved these transactions, stated to be in the ordinary course of business and on an arm’s length basis.