ARC Insulation & Insulators Ltd has secured a significant domestic work order worth ₹21.07 crore, expected to bolster its business operations and financial performance. The order, intimated via a regulatory filing dated 30-05-2026, involves the supply of MT GFRP Straight and MT GFRP Bend products with an execution timeline set for 31.03.2027. This development follows a period of profit decline attributed to heavy rainfall, geopolitical tensions, and a slowdown in civil and construction activities.

The company confirmed that the order is not a related party transaction and that no promoter or group companies hold an interest in the entity awarding the contract. Management is currently engaged in advanced discussions with international customers, with multiple export orders in the pipeline aimed at strengthening the order book.

To navigate the previous downturn, the firm is focused on executing its growth strategy, enhancing efficiency, and optimizing costs. The filing was submitted to the National Stock Exchange of India Limited (SME Emerge) under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Arc Insulation & Insulators Limited reported a significant decline in financial performance for the financial year ended March 31, 2026, with net profit falling to ₹185.51 lakh from ₹868.60 lakh in the previous year. Revenue from operations also contracted to ₹2,086.86 lakh in FY26 from ₹3,271.64 lakh in FY25. The board of directors approved the audited standalone financial results at a meeting held on May 30, 2026, with statutory auditors M/s. Jay Gupta & Associates issuing an unmodified audit opinion.

Financial Performance

The company's profit before tax for FY26 stood at ₹278.31 lakh, a steep decline from ₹1,159.44 lakh in FY25. Total income for the year was ₹2,171.79 lakh, compared to ₹3,315.32 lakh in the prior year. Total expenses for FY26 were ₹1,893.48 lakh against ₹2,155.88 lakh in FY25. The basic and diluted earnings per share (EPS) for FY26 were ₹2.05, compared to ₹12.32 in FY25. The following table summarises the key financial metrics:

For the half year ended March 31, 2026, revenue from operations was ₹1,084.90 lakh, with profit after tax at ₹99.54 lakh. The preceding half year ended September 30, 2025 recorded revenue of ₹1,001.96 lakh and profit after tax of ₹85.97 lakh.

Balance Sheet and Cash Flows

Arc Insulation & Insulators' total assets rose to ₹6,798.34 lakh as of March 31, 2026, from ₹3,928.51 lakh a year earlier, reflecting significant balance sheet expansion. Equity share capital increased to ₹1,029.74 lakh from ₹725.24 lakh, while other equity grew to ₹4,989.31 lakh from ₹1,778.90 lakh, taking total equity to ₹6,019.05 lakh. Cash and cash equivalents improved to ₹181.28 lakh from ₹76.39 lakh. Other bank balances stood at ₹1,938.87 lakh as at March 31, 2026, compared to nil in the prior year. The key balance sheet figures are presented below:

From a cash flow perspective, net cash used in operating activities was ₹241.55 lakh in FY26, compared to net cash generated of ₹26.24 lakh in FY25. Net cash used in investing activities was ₹2,370.08 lakh, driven primarily by changes in other bank balances of ₹1,938.87 lakh and purchase of property, plant and equipment of ₹273.69 lakh. Net cash from financing activities was ₹2,716.51 lakh, primarily on account of an increase in share capital of ₹3,806.25 lakh, partially offset by issue-related expenses of ₹476.86 lakh and repayment of long-term borrowings of ₹309.84 lakh.

IPO Fund Utilisation

The company disclosed the utilisation of funds raised through its Initial Public Offer (IPO). Out of total net proceeds of ₹3,168.04 lakh, ₹1,390.52 lakh had been utilised as of March 31, 2026. The unutilised amount of ₹1,777.52 lakh was deposited as liquid fixed deposits with the State Bank of India. Key utilisations included ₹316.69 lakh for capital expenditure on a new manufacturing unit and ₹297.19 lakh for the purchase of new office space.

Auditor and Board Approval

M/s. Jay Gupta & Associates, Chartered Accountants (FRN: 329001E), issued an audit report with an unmodified opinion on the standalone financial results for the half year and year ended March 31, 2026. The financial results were reviewed by the Audit Committee and approved by the board of directors at a meeting held on May 30, 2026. The company is listed on the SME Platform of NSE and has noted that IND-AS compliance is not applicable. Arc Insulation & Insulators operates in a single business segment, and accordingly, segment reporting is not applicable.