CRISIL Ratings has reaffirmed Arfin India Limited's credit ratings, underscoring the company's stable financial position and growth trajectory. The ratings agency has maintained its 'CRISIL BBB/Stable' rating for long-term facilities and 'CRISIL A3+' for short-term facilities, covering total bank loan facilities of Rs. 129.21 crores.

Key Highlights

• Ratings Reaffirmed: CRISIL BBB/Stable for long-term and CRISIL A3+ for short-term facilities
• Total Rated Facilities: Rs. 129.21 crores
• Revenue Growth: 15% increase from Rs. 535.00 crores to Rs. 616.00 crores
• Net Worth: Improved to Rs. 157.00 crores from Rs. 90.00 crores

Financial Performance

Arfin India Limited has demonstrated robust financial growth, with its operating revenue increasing by 15% year-over-year. The company's net worth saw a significant improvement, aided by a private placement equity infusion of Rs. 52.50 crores.

Strengths and Challenges

CRISIL's ratings reflect Arfin India's strengths, including:

1. Extensive promoter experience in the steel industry
2. Established and diversified clientele
3. Strong capital structure

However, the ratings are constrained by:

1. Modest operating margins of 5.97%
2. Large working capital cycle with gross current assets of 159 days

Manufacturing Capabilities

Arfin India Limited operates its manufacturing facility at Chhatral in Gandhinagar, with an installed capacity of 71,000 tonnes per annum. The company produces aluminum products, ferro alloys, and steel products.

Capital Structure

The company's financial risk profile has improved, with gearing and total outside liabilities to tangible networth ratios of 0.75 times and 1.20 times, respectively. This marks an improvement from 1.25 times and 1.97 times a year earlier.

Future Outlook

CRISIL expects Arfin India's operating margin to improve further over the medium term, potentially reaching the 6-7% range. The agency also anticipates that the company's working capital cycle will reduce, which will be a key area to monitor.

While the reaffirmed ratings reflect stability, Arfin India Limited faces the challenge of managing its working capital cycle and improving its operating margins to enhance its overall financial profile.

Investors and stakeholders should continue to monitor the company's performance, particularly its ability to manage working capital and improve profitability in the coming quarters.

Arfin India Limited , a key player in the ferrous and non-ferrous metals manufacturing and trading sector, has announced its financial results for the second quarter and half-year ended September 30, 2025. The company has demonstrated steady performance and declared an interim dividend.

Financial Highlights

The company's consolidated financial results for Q2 FY26 are as follows:

While the revenue for Q2 FY26 decreased compared to the same quarter last year, the company has maintained a consistent profit margin. The half-yearly results also reflect steady performance in the prevailing market conditions.

Interim Dividend Declaration

The Board of Directors has declared an interim dividend of ₹0.11 per equity share (11% of face value) for the financial year 2025-26. The record date for determining eligible shareholders has been set as Monday, November 17, 2025.

Operational Performance

Arfin India Limited continues to focus on its core business of manufacturing and trading ferrous and non-ferrous metals. The company's ability to maintain profitability despite a decrease in revenue demonstrates its operational efficiency and cost management strategies.

Balance Sheet Strength

As of September 30, 2025, Arfin India Limited's balance sheet shows:

• Total Assets of ₹36,708.05 lakhs, up from ₹34,421.12 lakhs at the end of the previous fiscal year.
• An improved equity position of ₹16,031.35 lakhs, indicating a strengthening financial foundation.

Market Listing

Arfin India Limited expanded its market presence by listing on the National Stock Exchange of India Limited (NSE) effective July 22, 2025, in addition to its existing listing on the BSE.

Conclusion

Arfin India Limited's Q2 FY26 results reflect the company's ability to navigate market challenges while maintaining profitability and shareholder returns. The interim dividend declaration underscores the management's commitment to creating value for shareholders. As the company continues to operate in the dynamic metals sector, its future growth initiatives and market expansions will be of interest to investors and stakeholders.

Note: All financial figures are based on consolidated results as per Indian Accounting Standards (IND AS).