ARCL Organics Ltd (543993)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, ARCL Organics' revenue was ₹66.9 Cr (-0.6% year on year, +2.5% on the previous quarter), and net profit ₹9.1 Cr (+128.5% year on year); the operating margin was 23.3%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹66.9 | -0.6% | +2.5% |
| Operating profit | ₹15.6 | +141.6% | +120.5% |
| Net profit | ₹9.1 | +128.5% | +226.8% |
| EPS (₹) | 11.40 | +128.5% | +226.6% |
| Operating margin | 23.3% | — | — |
📢 Recent Corporate Announcements
ARCL Organics received a final order from the Debts Recovery Tribunal-I (DRT-I), Kolkata, disposing of the long-standing case OA/86/2005 filed by the Stressed Assets Stabilisation Fund (SASF). The tribunal confirmed the settlement of dues following payment of ₹8,22,94,500 along with ₹21,95,394 towards interest (totaling ~₹8.45 crore, which is ~3.1% of TTM revenue). Crucially, the settlement enables the release of charges on the company's main manufacturing land at Rampur, making it free from encumbrances. With no further liability envisaged under this application, an overhang dating back to 2005 has been resolved.
- Final order dated 06 October 2026 passed by DRT-I Kolkata disposing of OA/86/2005 under Section 19(20A) of the RDB Act.
- Settlement amount of ₹8,22,94,500 plus interest of ₹21,95,394 has already been paid in full.
- Main operational land at Rampur, housing plant and machinery, to be freed from SASF security charges.
- Company confirms no further financial liability is envisaged under the settled matter.
ARCL Organics Limited received a Show Cause Notice (SCN) in Form GST DRC-01 from the West Bengal GST Authority on September 30, 2026, pertaining to FY 2022-23. The notice proposes a total demand of ₹5.05 crore, consisting of ₹2.78 crore in tax, ₹2.00 crore in interest, and ₹0.28 crore in penalty. The dispute centers on the classification of the product 'Aqua Strong Bond', which the department alleges should be classified under HSN Code 3906 rather than HSN Code 2309. The total demand represents approximately 50.5% of the company's TTM net profit of ₹10 crore.
- Received GST Show Cause Notice proposing a total demand of ₹5,05,21,772 for FY 2022-23.
- Proposed demand includes tax of ₹2,77,88,607, interest of ₹1,99,54,307, and penalty of ₹27,78,858.
- Dispute relates to HSN classification of product 'Aqua Strong Bond' (HSN 3906 vs declared HSN 2309).
- Notice was issued under Section 73 of the WBGST/CGST/IGST Acts and received on September 30, 2026.
ARCL Organics submitted voting results and the Scrutinizer's Report for its 34th Annual General Meeting held on September 19, 2026. All 6 proposed resolutions were approved with 100% votes in favor among the 8,46,945 votes polled (representing 10.59% of total 80,00,000 outstanding shares). Key approvals included the adoption of FY26 financial statements, the reappointment of director Mukesh Mundhra, and hikes in remuneration for Suraj Ratan Mundhra, Rajesh Mundhra, and Mukesh Mundhra.
- All 6 resolutions passed with 100% affirmative votes among votes polled
- A total of 8,46,945 votes were polled out of 80,00,000 outstanding shares (10.5868% turnout)
- Approved increase in remuneration for Chairman & MD Suraj Ratan Mundhra and Whole Time Directors Rajesh Mundhra and Mukesh Mundhra
- Ratified the remuneration of Cost Auditors for FY 2026-2027
- 7980 total shareholders recorded as of the record date of September 12, 2026
ARCL Organics Limited conducted its 34th Annual General Meeting on September 19, 2026, through video conferencing. A total of 56 members representing 31,61,699 equity shares attended the meeting. Key agenda items included the adoption of FY26 financial statements and special resolutions to increase the remuneration of Managing Director Suraj Ratan Mundhra and Whole Time Directors Rajesh Mundhra and Mukesh Mundhra. The final e-voting results and scrutinizer report will be submitted within the regulatory timelines.
- 56 members representing 31,61,699 equity shares participated in the 34th AGM
- Special resolutions proposed for increasing remuneration of CMD Suraj Ratan Mundhra and WTDs Rajesh Mundhra and Mukesh Mundhra
- Remote e-voting held between September 16, 2026 (09:00 AM) and September 18, 2026 (05:00 PM)
- Auditors' reports for the year ended March 31, 2026, contained no qualifications or adverse remarks
ARCL Organics submitted its FY26 Annual Report, highlighting key strategic developments including the acquisition of Vishvam Formalin & Angel Resins in Gujarat, adding 49,500 TPA of Formaldehyde and 60,000 TPA of Resins capacity. The company noted that exports crossed ₹100 crore during FY26 while total income reached ₹276.25 crore. Consolidated reported PAT dropped to ₹5.19 crore (vs ₹12.33 crore in FY25) primarily due to ~₹6 crore in one-time settlement charges resolving legacy customs (₹5.10 crore), income tax (₹5.29 crore), and municipal tax (₹4.40 crore) liabilities; adjusted PAT stood at ₹17.41 crore.
- Acquired running unit of Vishvam Formalin and Angel Resins (Gujarat), adding 49,500 TPA Formaldehyde and ~60,000 TPA Resins capacity
- Resolved legacy disputes including ₹5.10 cr customs dues, ₹5.29 cr income tax under Vivad Se Vishwas 2.0, and ₹4.40 cr municipal tax
- FY26 consolidated revenue stood at ₹276.25 cr; adjusted EBITDA reached ₹35.55 cr vs ₹26.16 cr in FY25 (excluding ~₹6 cr exceptional settlement costs)
- Annual export revenue crossed the ₹100 cr milestone during FY26
ARCL Organics has released the notice for its 34th Annual General Meeting scheduled for September 19, 2026, via Video Conferencing. Alongside standard items like adoption of FY26 financial statements and director re-appointment by rotation, the company is seeking shareholder approval for managerial remuneration revisions. The proposals set a monthly fixed compensation of Rs 4,80,000 (Rs 1.4 lakh basic, Rs 0.8 lakh HRA, and Rs 2.6 lakh other allowances) each for Chairman & Managing Director Suraj Ratan Mundhra and Whole Time Director Rajesh Mundhra, effective April 1, 2026.
- 34th Annual General Meeting scheduled for Saturday, September 19, 2026, at 3:30 PM IST via VC/OAVM
- Proposed remuneration revision for CMD Suraj Ratan Mundhra includes Rs 1.40 lakh basic, Rs 0.80 lakh HRA, and Rs 2.60 lakh allowances per month
- Proposed remuneration revision for WTD Rajesh Mundhra includes Rs 1.40 lakh basic, Rs 0.80 lakh HRA, and Rs 2.60 lakh allowances per month
- CMD tenure runs up to April 3, 2028, while WTD tenure is valid up to July 10, 2030
ARCL Organics Ltd has settled a minor regulatory penalty of Rs 5,900 imposed by the BSE for the late submission of Related Party Transaction (RPT) disclosures for the half-year ended March 31, 2026. The company attributed the delay to an inadvertent technical glitch and confirmed the fine was paid on July 3, 2026. The Board of Directors reviewed the matter on August 12, 2026, and has advised management to ensure stricter adherence to SEBI timelines to avoid future penalties.
- BSE imposed a fine of Rs 5,900 (including 18% GST) for non-compliance with Regulation 23(9).
- The penalty was paid by the company on July 3, 2026, following a notice dated June 30, 2026.
- The Board of Directors formally addressed the lapse in their meeting held on August 12, 2026.
- The delay pertained to the reporting period for the half-year ended March 31, 2026.
ARCL Organics approved its Q1 FY27 results, highlighting a persistent administrative delay regarding its Rs 3.01 crore acquisition of R-Chem Industries. The acquisition, completed via NCLT in March 2022, remains classified under 'Other Current Assets' as share transfers and pollution approvals are still pending. The company's seven subsidiaries contributed a combined revenue of Rs 0.65 crore and a net profit of Rs 0.29 crore for the quarter. The 34th Annual General Meeting is scheduled for September 19, 2026.
- Acquisition of R-Chem Industries for Rs 3.01 crore remains pending formal share transfer since March 2022
- Seven subsidiaries reported a combined revenue of Rs 65.15 lakhs for the quarter ended June 30, 2026
- Subsidiaries contributed a net profit of Rs 28.73 lakhs to the consolidated results
- Total assets of the seven subsidiaries stood at Rs 1,935.44 lakhs as of June 30, 2026
- 34th Annual General Meeting (AGM) scheduled for September 19, 2026, with e-voting starting September 16
ARCL Organics approved its Q1 FY27 results and scheduled its 34th AGM for September 19, 2026. The consolidated financials include seven subsidiaries which contributed a modest Rs 65.15 lakhs to revenue and Rs 28.73 lakhs to net profit for the quarter. Auditors highlighted that the Rs 3.01 crore acquisition of R-Chem Industries (completed in March 2022) is still pending share transfer and pollution approvals, keeping the asset classified under 'Other Current Assets'. With a TTM revenue of Rs 272 crore, the current subsidiary revenue contribution remains small at approximately 1% of the group's typical quarterly turnover.
- Rs 301 lakhs acquisition of R-Chem Industries remains pending for share transfer and pollution approvals since March 2022
- Consolidated results include 7 subsidiaries with total assets of Rs 1,935.44 lakhs
- Subsidiaries contributed Rs 65.15 lakhs in revenue and Rs 28.73 lakhs in net profit for Q1 FY27
- 34th Annual General Meeting (AGM) scheduled for September 19, 2026, via video conferencing
- Remote e-voting period set from September 16 to September 18, 2026
ARCL Organics Ltd has scheduled a board meeting on August 12, 2026, to consider and approve the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. This follows a volatile FY26 where the company reported a TTM PAT of ₹5 Cr on revenue of ₹272 Cr. Investors will be monitoring the results for signs of margin stability, as the company's operating profit margin stood at 9.1% for the trailing twelve months. The trading window for insiders remains closed until 48 hours after the results are made public.
- Board meeting to be held on August 12, 2026, for Q1 FY27 results approval
- Covers both standalone and consolidated financial performance for the period ended June 30, 2026
- Trading window for designated persons closed until 48 hours post-announcement
- Company reported a TTM revenue of ₹272 Cr and a TTM PAT of ₹5 Cr
- Market capitalization stands at ₹164 Cr with a debt-to-equity ratio of 0.87
Financial Performance
Revenue Growth by Segment
Formaldehyde is the primary revenue contributor following a capacity enhancement in FY24. While specific segment growth percentages are not disclosed, the company maintains a total capacity of 108,040 MT for Formaldehyde, 15,695 MT for Amino Powder, and 4,380 MT for PF Powder.
Geographic Revenue Split
The company is headquartered in Kolkata with manufacturing operations in Rampur, West Bengal. While it serves domestic industries like wood, textiles, and paper, it also targets export markets which are subject to global trade standards and composition norms.
Profitability Margins
Specific margin percentages are not disclosed; however, the company's liquidity is described as satisfactory with a current ratio of 1.52x in FY25, compared to 1.52x in the previous year, indicating stable short-term solvency.
Capital Expenditure
The company recently completed a significant capacity enhancement for Formaldehyde in FY24 to 108,040 MT. Future CAPEX is focused on green chemistry, zero-liquid discharge systems, and Industry 4.0 technologies to maintain export competitiveness.
Credit Rating & Borrowing
Infomerics Ratings withdrew the company's ratings (previously IVR BBB/Rating Watch with Developing Implications for Long Term and IVR A3+ for Short Term) in November 2025. This action followed the closure of bank facilities and the issuance of 'No Due Certificates' by lenders.
Operational Drivers
Raw Materials
Key raw materials include Phenolics, Amino Resins, Melamine Resins, and crude oil derivatives. These are energy-intensive to process and highly sensitive to global price fluctuations.
Import Sources
The company has a heavy reliance on imported raw materials and intermediates, specifically from China, which exposes it to geopolitical tensions and supply chain disruptions.
Capacity Expansion
Current installed capacity includes Formaldehyde at 108,040 MT, Amino Powder at 15,695 MT, and PF Powder at 4,380 MT. Expansion is focused on specialty chemicals and customized solutions for niche applications.
Raw Material Costs
Raw material costs are highly volatile due to dependency on China and global crude prices. Supply chain disruptions or diplomatic tensions can lead to sudden price hikes and production delays.
Manufacturing Efficiency
The company utilizes Industry 4.0 technologies for predictive maintenance and optimized resource utilization to improve agility and cost-efficiency.
Logistics & Distribution
Distribution is affected by domestic infrastructure bottlenecks and rising global trade standards for chemical safety and labeling.
Strategic Growth
Expected Growth Rate
9-10%
Growth Strategy
Growth will be achieved by leveraging the 'China+1' strategy to capture global supply chain shifts, utilizing Government PLI schemes, and expanding capacity in specialty chemicals. The company is also transitioning to green chemistry and bio-based formulations to access premium global markets.
Products & Services
Phenolics, Amino Resins, Melamine Resins, Formaldehyde, Amino Powder, and PF Powder used as adhesives in wood products, textiles, paper, and healthcare.
Brand Portfolio
ARCL Organics Limited (formerly Allied Resins and Chemicals Ltd).
New Products/Services
Focus on bio-based chemicals, eco-friendly formulations, and customized tailor-made solutions for diversified industrial clients.
Market Expansion
Targeting the specialty chemicals segment, which is poised for rapid expansion due to high-performance niche applications in pharmaceuticals and personal care.
External Factors
Industry Trends
The Indian chemical industry is projected to surpass USD 300 billion by 2025. Key trends include a shift toward sustainability, 'Make in India' initiatives, and the adoption of zero-liquid discharge systems.
Competitive Landscape
Faces intense competition from international players and large domestic firms benefiting from integrated chemical parks and clusters.
Competitive Moat
Competitive advantage stems from the ability to offer tailor-made solutions and a large-scale formaldehyde production base (108,040 MT), though this is challenged by high compliance costs for SMEs.
Macro Economic Sensitivity
Highly sensitive to India's GDP growth (projected at 6.5% for FY25) and inflation, which affects rural demand for end-user products like textiles and consumer goods.
Consumer Behavior
Rising middle-class urbanization is driving demand for quality consumer goods, which indirectly boosts demand for the company's resin and adhesive products.
Geopolitical Risks
Vulnerable to trade route disruptions and diplomatic tensions with China, which could lead to raw material shortages and increased input costs.
Regulatory & Governance
Industry Regulations
Operations are governed by effluent discharge norms, hazardous waste management rules, and global product standards for chemical composition and safety.
Environmental Compliance
Significant pressure to invest in pollution control, waste management, and cleaner production methods to meet increasingly stringent Indian regulatory standards.
Taxation Policy Impact
The company faces pending direct tax litigation amounting to INR 9.58 Cr and indirect tax litigation of INR 2.70 Cr.
Legal Contingencies
The Honourable Calcutta High Court rejected an appeal regarding a deposit of INR 7 Cr; the expected financial implication is INR 5,18,44,990 (approx. INR 5.18 Cr) plus interest. Total tax-related litigations involve 5 proceedings totaling INR 12.28 Cr.
Risk Analysis
Key Uncertainties
Supply chain vulnerability due to 90%+ dependency on certain imported intermediates and the potential for operational shutdowns if environmental standards are not met.
Geographic Concentration Risk
Manufacturing is concentrated in West Bengal, making it susceptible to regional infrastructure bottlenecks and local regulatory enforcement.
Third Party Dependencies
High dependency on Chinese suppliers for critical raw materials and SBICAP Trustee Ltd for the divestment of 902,244 equity shares to meet public shareholding norms.
Technology Obsolescence Risk
Risk of lagging behind global competitors if Industry 4.0 and digital process automation are not integrated swiftly.
Credit & Counterparty Risk
The withdrawal of credit ratings suggests a shift in financing strategy or debt repayment, though liquidity remains at a 1.52x current ratio.
