ARCL Organics Ltd has successfully completed a strategic asset acquisition worth Rs. 23 crores from Vishvam Formalin and associated parties, as announced in its regulatory filing dated 16th February 2026. The acquisition represents a significant step in the company's expansion strategy to strengthen its manufacturing capabilities.

Asset Acquisition Details

The company has executed a sale deed for land through Mr. Sandeep Patel and has taken possession of the plant and machinery of Vishvam Formalin. The acquired assets are strategically located at Survey No: 442/P, Village – Kadadra, Zak-Kdadra Road, Ta-Dehgam, District Gandhinagar, Gujarat – 382305.

Manufacturing Assets and Capabilities

The acquired assets comprise land, industrial plant, machinery and related equipment currently engaged in the manufacture of powder resins. This acquisition provides ARCL Organics with immediate access to established manufacturing infrastructure, enabling the company to expand its production capabilities in the specialty chemicals sector.

Regulatory Compliance and Approvals

The company has obtained all necessary regulatory approvals before completing the transaction. ARCL Organics will now proceed with applications for change of name in various licenses to reflect the new ownership structure. The transaction demonstrates the company's commitment to maintaining full regulatory compliance throughout the acquisition process.

Strategic Impact

According to the company's disclosure, the proposed acquisition is expected to strengthen ARCL Organics' manufacturing footprint and enhance operational capacity. The addition of these manufacturing assets positions the company to better serve its customers and expand its market presence in the powder resins segment.

Transaction Status

While the sale deed with Mr. Sandeep Patel has been completed and possession has been taken, the company noted that the sale deed between Mr. Hasmukhkhbhai Patel, Angel Resins and ARCL Organics Ltd. is yet to be executed. This indicates that the acquisition may involve multiple phases or additional components to be finalized.

ARCL Organics Ltd announced its unaudited financial results for the third quarter and nine months ended December 31, 2025, revealing a challenging quarter with significant losses despite maintaining nine-month profitability. The Board of Directors approved these results in their meeting held on February 11, 2026.

Q3FY26 Financial Performance

The company reported a substantial net loss during the quarter, marking a significant reversal from the previous year's performance.

The quarter's performance was significantly impacted by higher tax expenses of ₹614.26 lakhs compared to ₹54.89 lakhs in Q3FY25, along with exceptional items worth ₹54.80 lakhs.

Nine-Month Performance Analysis

Despite the challenging third quarter, the company maintained profitability for the nine-month period, though at reduced levels compared to the previous year.

Exceptional Items and Special Settlements

The company's results were influenced by several significant one-time items and regulatory settlements:

• Municipal Tax Settlement: Cleared property tax dues of ₹4.23 crore as adjudicated by Maheshtala Municipality, recognized under other expenses
• Income Tax Arrears: Settled ₹5.29 crore under the vivad se viswas 2.0 scheme for the block period 1988-1998, disclosed under tax for earlier years
• Legal Deposit: Deposited ₹7.00 crore with Calcutta High Court regarding litigation with Tara Properties Pvt. Ltd.
• Labour Code Impact: New Labour Codes effective November 21, 2025, resulted in increased gratuity liability of ₹33.49 lakhs and leave encashment of ₹21.31 lakhs

Consolidated Results and Subsidiary Structure

On a consolidated basis, the company reported a net loss of ₹880.98 lakhs for Q3FY26 compared to a profit of ₹179.27 lakhs in Q3FY25. The consolidated entity includes seven subsidiaries:

• Allied Maritime & Infra Engineering Private Ltd
• ARCL Petrochemicals Limited
• Ocilim Advisory Services Private Ltd
• Wide Range Merchants Private Ltd
• Nocnex Chemicals Private Ltd
• Yocnex Chemicals Private Ltd
• Suksess Chemicals Private Ltd

Corporate Actions and Compliance

To comply with Minimum Public Shareholding requirements, promoters transferred 10,00,000 shares to SBICAP Trustee Ltd for secondary market sale. As of December 31, 2025, 2,03,407 shares had been sold. The company maintains a paid-up equity share capital of ₹800.00 lakhs with shares of face value ₹10 each.