ARCL Organics Ltd , a leading player in the chemical industry, has announced its unaudited financial results for the second quarter and half-year ended September 30, 2025. The company's Board of Directors approved the results in a meeting held on November 12, 2025.

Key Financial Highlights

Standalone Performance

ARCL Organics demonstrated a strong financial performance in Q2 2025. While the standalone revenue from operations slightly decreased by 1.72% to Rs. 661.88 crores compared to Rs. 673.44 crores in the previous quarter, the company's profitability saw a remarkable improvement. The net profit after tax nearly doubled, reaching Rs. 70.80 crores in Q2 2025, a substantial 96.07% increase from Rs. 36.11 crores in Q1 2025.

For the half-year period ending September 30, 2025, ARCL Organics reported a total revenue from operations of Rs. 1,335.32 crores, with a net profit after tax of Rs. 108.91 crores.

Consolidated Results

On a consolidated basis, ARCL Organics and its subsidiaries reported a revenue of Rs. 674.87 crores for Q2 2025, with a net profit of Rs. 72.18 crores. The consolidated results reflect the company's overall strong performance across its various business segments.

Balance Sheet Strength

As of September 30, 2025, ARCL Organics' total assets stood at Rs. 16,771.07 crores, indicating a robust financial position.

Audit Review

The financial results underwent a limited review by independent auditors L.B. Jha & Co., who expressed no reservations on the financial statements. The review was conducted in accordance with the Standard on Review Engagements (SRE) 2410, as issued by the Institute of Chartered Accountants of India.

Subsidiary Performance

The consolidated results include the performance of seven subsidiaries, including ARCL Petrochemicals Limited and Allied Maritime & Infra Engineering Private Ltd. These subsidiaries contributed to the group's overall financial strength, with their combined assets totaling Rs. 1,483.65 lakhs as of September 30, 2025.

Conclusion

ARCL Organics Limited's Q2 2025 results demonstrate the company's resilience and ability to enhance profitability. The substantial growth in net profit, both on a standalone and consolidated basis, reflects the effectiveness of the company's strategic initiatives and operational excellence.

Note: All financial figures are based on the unaudited results approved by the Board of Directors and are subject to limited review by the statutory auditors.

ARCL Organics Ltd has successfully resolved multiple tax disputes, including both sales tax and municipal tax issues, marking significant developments for the company's financial obligations.

Sales Tax Dispute Settlement

ARCL Organics Ltd has settled two sales tax disputes through the Settlement of Dispute Scheme 2025:

The settlement was issued by the Deputy Commissioner of Revenue, Park Street Charge, Kolkata.

Municipal Tax Dispute Resolution

In addition to the sales tax settlement, ARCL Organics Ltd has also resolved a long-standing municipal tax dispute with Maheshtala Municipality in West Bengal:

Impact and Implications

These settlements effectively close pending litigations and may have several implications for the company:

1. Financial Clarity: The resolutions provide clarity on the company's financial obligations, removing significant contingent liabilities from its books.

2. Improved Relations: Resolving these disputes may lead to better relations with local and tax authorities, potentially smoothing future operations.

3. Resource Allocation: With the disputes settled, the company can now redirect resources that were previously allocated for managing these legal issues.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ARCL Organics Ltd has duly informed the stock exchange about these developments. The company's proactive disclosure aligns with regulatory requirements and demonstrates transparency in its dealings with stakeholders.

Conclusion

The resolution of these tax disputes represents positive steps for ARCL Organics Ltd, potentially improving its financial position and operational focus. Stakeholders and investors may view these developments as signs of the company's commitment to resolving outstanding issues and maintaining good corporate governance practices.