Chip technology company Arm Holdings has announced a major organizational restructuring, creating a dedicated Physical AI unit to capitalize on the expanding robotics market. The announcement comes amid heightened interest in humanoid robots at CES, where the technology has emerged as a dominant theme.

Strategic Business Reorganization

Arm Holdings now operates through three distinct business lines, representing a significant shift in its operational structure:

The UK-based company, which supplies underlying technology powering most smartphones globally, generates revenue through licensing fees and royalties when its designs are implemented by manufacturers.

Physical AI Unit Leadership and Vision

Drew Henry leads the newly formed Physical AI division, emphasizing the transformative potential of robotics solutions. According to Henry, physical AI technologies could "fundamentally enhance labor, free up extra time" and potentially deliver considerable impact on gross domestic product. The division plans to expand its workforce with dedicated robotics specialists, as confirmed by Arm Chief Marketing Officer Ami Badani.

The strategic decision to combine automotive and robotics into a single unit reflects shared customer requirements across both sectors:

• Power constraint management
• Safety protocols and standards
• Reliability requirements
• Similar sensor technology needs

Market Positioning and Customer Base

Arm's technology already serves dozens of automakers worldwide and robotics companies including Boston Dynamics, owned by Hyundai. The collaboration between Boston Dynamics and Hyundai has produced a production-ready Atlas humanoid robot, scheduled for deployment in U.S. factories by 2028.

CES Robotics Showcase

This year's CES demonstrated the industry's growing commitment to robotics innovation. Companies exhibited humanoid robots performing various tasks including dancing, playing ping-pong, and conducting repetitive sorting operations. The integration of artificial intelligence enhances these machines' capabilities significantly.

C.J. Finn, U.S. automotive industry leader for PwC, highlighted the real value proposition: "The real spend and where things are really moving forward is when they combine the machining with the level of AI to increase the precision, increase the productivity, or change how something's able to produce."

Industry Investment and Development

Several major announcements at CES underscore the sector's momentum:

Boston Dynamics CEO Robert Playter acknowledged a "hype cycle around robotic humanoids" while emphasizing his company's proven track record with thousands of deployed quadruped robots generating actual revenue.

Future Market Outlook

The robotics sector represents a significant growth opportunity as companies across technology and automotive industries view human-form machines as the next frontier in AI and automation. Tesla's Optimus project exemplifies this trend, with CEO Elon Musk describing humanoid robots as potentially surpassing the company's vehicle business in economic value.

Arm's strategic reorganization positions the company to capitalize on this emerging market, leveraging its existing relationships with automakers and technology companies while expanding into dedicated robotics applications.

Arman Holdings has received an updated disclosure from Arun Damji Gada regarding additional disposal of equity shares under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The group of persons acting in concert has further reduced their collective stake in the company through open market sales.

Latest Transaction Details

The most recent disposal transaction was executed on November 13, 2025, through open market sales. The group disposed of a total of 28,049 equity shares, representing 0.54% of the company's total share capital. The disclosure was filed on January 5, 2026.

Updated Shareholding Position

Following the latest disposal, the group's collective shareholding has decreased from 11.89% to 11.35%. The group now holds 591,560 shares compared to the previous holding of 619,609 shares.

Individual Disposal Details

The latest share disposal was executed by two members of the group:

Group Composition and Structure

The persons acting in concert comprise 14 individuals from the Gada family, including Arun Damji Gada, Kalpesh Damji Gada, Kirit Damji Gada, and their family members. The group is classified as non-promoter entities in the disclosure. Key members maintain significant individual holdings:

Company Information

Arman Holdings Limited is listed on BSE Limited with scrip code 538556. The company's equity share capital remains unchanged at ₹5.21 crores, comprising 52,10,500 equity shares with a face value of ₹10.00 each. The disclosure confirms that the total diluted share capital also remains at the same level, indicating no outstanding convertible securities or warrants.