💰 Financial Performance

Revenue Growth by Segment

Net Income from Operations grew 15% YoY to INR 615.75 Cr. Aluminium Wire Rod segment sales grew 76% in value to INR 257.55 Cr and 49% in volume to 9,115 MT. Gross Sales grew 14% to INR 709.19 Cr.

Geographic Revenue Split

Domestic sales contribute approximately 82% of gross sales, while exports to Japan, Middle East, and African countries accounted for 18% of gross sales in FY24, down from 25% in FY23.

Profitability Margins

Operating Profit Margin improved marginally from 5.65% to 5.97% in FY25. Net Profit Margin stood at 1.49% in FY25 compared to 1.54% in FY24, impacted by higher finance costs and raw material volatility.

EBITDA Margin

EBIDTA margin was 6.21% in FY25 (INR 38.26 Cr), up from 6.02% in FY24, driven by a strategic shift towards high-margin value-added products and improved operational efficiencies.

Capital Expenditure

The company raised INR 52.5 Cr through a private placement of 97,98,432 equity shares in FY25 to fund capex for production capacity expansion and long-term working capital requirements.

Credit Rating & Borrowing

Crisil reaffirmed 'Crisil BBB/Stable/Crisil A3+' ratings in Nov 2025. Finance costs increased 6.7% YoY to INR 19.82 Cr on total bank loan facilities of INR 129.21 Cr.

⚙️ Operational Drivers

Raw Materials

Aluminium scrap is the primary raw material, representing approximately 83.38% of net sales as part of the Cost of Goods Sold. Other materials include ferroalloys and chemicals.

Import Sources

Approximately 50% of raw materials are imported from Japan and European countries, while the remaining 50% is sourced domestically within India.

Key Suppliers

Not specifically named in documents; sourcing is diversified across domestic and international scrap markets.

Capacity Expansion

Total installed capacity is 71,000 MTPA. Specific units include 15,000 MTPA for aluminium wire rods and 20,000 MTPA for aluminium deox. Capex is planned to further expand these capacities.

Raw Material Costs

Cost of Goods Sold as a % of Net Sales was 83.38% in FY25. Raw material prices are linked to international commodity indices, exposing margins to sharp global price fluctuations.

Manufacturing Efficiency

Capacity utilization for wire rods was approximately 60.7% (9,115 MT sold out of 15,000 MT capacity). Overall efficiency is being targeted through technology updates.

Logistics & Distribution

Not disclosed as a specific percentage, but transport bottlenecks and port delays are cited as critical operational risks.

📈 Strategic Growth

Expected Growth Rate

15-30%

Growth Strategy

Growth will be driven by a strategic partnership with JFE Shoji India to expand recycled aluminium deox sales, capacity expansion funded by the INR 52.5 Cr equity infusion, and a shift toward high-margin value-added products.

Products & Services

Aluminium wire rods, aluminium deox, ferroalloys, aluminium drawn wires, aluminium alloy ingots, and cored wires.

Brand Portfolio

Arfin

New Products/Services

Strategic shift toward high-margin and value-added product lines is expected to drive future revenue growth, though specific contribution percentages are not disclosed.

Market Expansion

Targeting expansion in India and surrounding regions through the JFE Shoji Strategic Partnership.

Market Share & Ranking

Described as an organized player in a fragmented industry; specific ranking not disclosed.

Strategic Alliances

Strategic Partnership and Investment Agreement with JFE Shoji India entered in March 2024.

🌍 External Factors

Industry Trends

The industry is shifting toward aluminium recycling and green practices. India's growing manufacturing ecosystem and digital transformation offer a promising outlook for MSME-linked sectors.

Competitive Landscape

Intense competition from both domestic organized/unorganized players and global suppliers, leading to constant pricing pressure.

Competitive Moat

Moat is built on experienced promoters (30+ years), established relationships with Tier-1 steel producers, and a strategic alliance with a global partner like JFE Shoji.

Macro Economic Sensitivity

Highly sensitive to India's manufacturing GDP and capex cycles in the automotive and infrastructure sectors.

Consumer Behavior

Demand is driven by industrial offtake in steel and automotive sectors rather than direct retail consumer behavior.

Geopolitical Risks

Geopolitical tensions impact global supply chains for scrap and international logistics, potentially disrupting production schedules.

⚖️ Regulatory & Governance

Industry Regulations

Subject to pollution norms, import/export duties, and power tariffs. Complies with Section 148 (Cost Audit) and Section 204 (Secretarial Audit) of the Companies Act, 2013.

Environmental Compliance

ESG compliance requires continuous investment in green practices to meet evolving environmental norms and carbon footprint reduction targets.

Taxation Policy Impact

Effective tax rate for FY25 was approximately 36.3% (PBT of INR 14.38 Cr vs PAT of INR 9.15 Cr).

⚠️ Risk Analysis

Key Uncertainties

Raw material price volatility (high impact on margins), Forex fluctuations (USD/INR), and demand-side uncertainty in end-user industries like automotive.

Geographic Concentration Risk

82% revenue concentration in the Indian domestic market.

Third Party Dependencies

50% dependency on international scrap suppliers, making the company vulnerable to global supply chain disruptions.

Technology Obsolescence Risk

Low risk; company is incorporating innovative production technologies to match global standards.

Credit & Counterparty Risk

Receivables are managed at 27 days, but high GCA of 159 days indicates a large portion of capital is tied up in the working capital cycle.