GLOBAL ECONOMY OVERVIEW
The year 2026 unfolded against a global economy that entered the period on a firmer footing than many had anticipated, only to be tested in its initial months by the outbreak of geopolitical conflict in the Middle East. After absorbing successive waves of trade-policy uncertainty and higher borrowing costs over the preceding two years, world output proved notably resilient through much of 2025. The conflict, however, disrupted energy markets, firmed up inflation expectations, and prompted a wholesale re-evaluation of the interest-rate path widely expected at the start of the year. According to the International Monetary Fund (IMF), global GDP growth averaged 3.5% in 2024-25, then moderated to 3.0% in calendar 2026.
On the downside, the war in the Middle East and higher energy prices weigh most heavily on commodity importers and vulnerable emerging economies. On the upside, the technology cycle, driven by investment in and adoption of artificial intelligence (AI), is lifting economies that are well integrated into the global technology value chain.
Growth among the advanced economies remains subdued in 2026, with the United States projected at 2.3%, the euro area at 0.9%, the United Kingdom at 1.0%, Canada at 1.1%, and Japan at 0.6%. Emerging market and developing economies (EMDEs) continue to outperform, expanding by a projected 3.9%, led by China at 4.6% and by a cluster of technology-linked Asian economies.
The most consequential shift during the year was the interruption of global disinflation. According to the IMF, global headline inflation is expected to rise to 4.7% in 2026, up from 4.1% in 2025, before easing to 3.9% in 2027. The revision is mainly due to higher energy and food costs: crude oil is assumed to average close to US$89 a barrel in 2026, with energy prices running roughly 25% above pre-conflict levels.
GLOBAL HEADLINE INFLATION
(chart)2026 marked a turning point for real estate, shifting from stagnation to recovery after two years of declining values. Global markets gained momentum as capital improved.
GLOBAL ECONOMIC GROWTH
(chart)OUTLOOK
Taken together, FY27 looks set to be a year of steady, if unspectacular, growth. Trade frictions continue to cap the global upside, but Asias structural momentum should keep the engine running, the US should hold up reasonably well, and Europe will likely remain the slower-moving piece of the picture. For manufacturing-led sectors, the message is clear: operating efficiency, a wider spread of markets, and a steady pipeline of value-added innovation will separate durable performance from merely surviving the uncertainty.
A longer or wider conflict, greater geopolitical fragmentation, disappointment over AI productivity, or trade tensions could weaken growth and shake markets, with high public debt limiting policy room. Conversely, de-escalation, faster AI gains, and disinflation could lead central banks to ease policy and boost recovery.
INDIAN ECONOMY OVERVIEW
India retained its position as the fastest-growing major economy in FY26. As per the Provisional Estimates released by the Ministry of Statistics and Programme Implementation (MoSPI) in June 2026, the Indian economy expanded by 7.7% in real terms in FY2025-26, up from 7.1% in FY2024-25. Nominal GDP rose 8.9% to approximately ?346.36 lakh crore. Growth momentum held firm throughout the year, with real GDP expanding 7.8% year-on-year in the fourth quarter (January-March 2026), underscoring the resilience of domestic activity amid persistent global trade uncertainty and geopolitical volatility.
INDIAS GDP GROWTH TREND
(chart)The expansion was broad-based across sectors. The services sector, the largest contributor to GDP, grew by an estimated 9.1% during the year, with financial services, real estate, and professional services acting as the key drivers of services-sector growth.
Industrial activity remained robust, with manufacturing expanding around 7.0% while the construction sector, a bellwether for real estate, sustained healthy momentum. Sustained private consumption and elevated government capital expenditure continued to anchor demand.
SECTORAL GROWTH, FY26
(chart)| Sector | Growth (%) |
| Agriculture | 3.7% |
| Manufacturing | 7.0% |
| Construction | 7.2% |
| Services | 9.1% |
| Financial, real estate & prof. services | 10.2% |
Real-estate sector highlighted. Mix of full-year provisional and latest
quarterly figures where separate full-year splits were not published — to be
reconciled.
Source:
https://www.mospi.gov.in/uploads/latestReleases/latest_release_1780655857536_5ac01869-ca4a-422d-b7a7-57b81da60932_Press_Note_on_GDP_Estimates_for_Q4_2025-26_and_PE_FY_2025-26_F.pdf
On the price front, the macro environment became benign. Headline CPI inflation averaged 1.7% from April-December, driven mainly by food-price disinflation, while core inflation stayed subdued, indicating limited demand pressures. This easing allowed the Reserve Bank of India to cut rates: a total of 125 basis points since February 2025, along with liquidity measures, improved monetary transmission. Lower borrowing costs reduced home-loan rates, boosting affordability and housing demand.
Fiscal management stayed disciplined with strong tax revenue and controlled spending, supporting capital expenditure and keeping the FY26 deficit at 4.4% of GDP. Infrastructure-led growth benefited the built environment, with the Union Budget 2026-27 increasing public capital expenditure to ?112.20 lakh crore from ?111.20 lakh crore in FY26. Reforms improved the real estate operating environment, like the National Real Estate Policy 2025s single-window clearance system and green incentives. SEBIs reforms, such as reclassifying mutual fund investments in REITs as equities from January 2026, increased transparency and investor participation.
Taken together, a fast-growing economy, moderating inflation, an accommodative interest-rate cycle, rising urbanisation and continued policy support create a constructive demand environment for real estate.
INDIAN MSME SECTOR
Indias MSME sector remains key to the economy, contributing about 31.1% to GDP, 35.4% to manufacturing, and 48.58% to exports. Formalisation increased, with over 8.7 crore registrations by June 2026 and nearly 38.9 crore employed. The revised MSME classification from April 2025 allowed enterprises to scale up, supported by measures like doubled collateral-free credit limits and CGTMSE support. In real estate, MSMEs drive demand and employment, especially in Tier-II and Tier-III cities, boosting commercial, industrial, and residential sectors.
MSME CONTRIBUTION
(chart)| Metric | Share (%) |
| Contribution to GDP | 31.1% |
| Manufacturing output | 35.4% |
| Exports | 48.58% |
Source: https://www.dailyexcelsior.com/indias-msme-sector-contributes-31-1pc-to-gdp-formal-registrations-cross-8-7-cr/
GROWING EXPORTS OF THE INDIAN ECONOMY
Indias external trade hit a new high in FY 2025-26 despite uneven global conditions. Cumulative exports reached US$860.09 billion, up 4.22% from FY2024-25. Services exports led growth, increasing 7.94% to US$418.31 billion and boosting the trade surplus to US$213.89 billion from US$188.84 billion. Merchandise exports grew a modest 0.93% to US$441.78 billion, with non-petroleum exports rising 3.62% to US$387.88 billion. Engineering, petroleum, and minerals drove merchandise growth. Imports increased 6.47% to US$979.40 billion, expanding the trade deficit to US$119.30 billion and the merchandise deficit to US$333.19 billion.
Momentum continues into April 2026 with exports at US$80.80 billion, up 13.59% from April 2025.
OUTLOOK
Indias medium-term growth outlook remains among the strongest of major economies. Leading agencies project real GDP growth of about 6.5-6.6% for FY2026-27, with the Reserve Bank of India and the World Bank forecasting 6.6% and the IMF around 6.5%. Despite global growth expected to slow to about 3.0% in 2026, risks mainly stem from external factors like high energy prices, geopolitical tensions, and trade policy changes. Domestically, growth stays robust due to resilient private consumption, low inflation, an accommodative interest rate cycle, government capital spending, and urbanisation. The real estate sector benefits from lower home-loan rates, urban housing demand, rising incomes, household formation, and reforms such as the National Real Estate Policy 2025s single-window clearance and SEBIs REIT reforms, supporting growth into FY2026-27.
GLOBAL ROBOTIC AUTOMATION INDUSTRY
Industrial robotics has moved from a specialised manufacturing input to a mainstream capital expenditure category, as manufacturers across automotive, electronics, food and beverage, and pharmaceutical production seek to offset labour cost inflation, address skilled-labour shortages, and improve output consistency. The industrys own trade body, the International Federation of Robotics (IFR), reported that the value of industrial robot installations reached an all-time high in 2025, even as unit growth in traditional strongholds such as automotive remained uneven.
The market is also undergoing a structural shift. Robots that once executed fixed, pre-programmed motion sequences are increasingly built on vision-guided, AI-enabled platforms that can adapt to variations on the production line, with software differentiation now rivalling hardware specifications as a competitive factor. Collaborative robots, designed to work safely alongside human operators without fixed guarding, have become the fastest-growing product category and are extending automation into small and medium manufacturers that could not previously justify a traditional robot cell.
The global industrial robotics market is valued at USD 65.1 billion in 2026 and is projected to expand at a compound annual growth rate of 18.1% through 2036, reaching USD 343.8 billion. On unit metrics, annual installations stood at 542,000 industrial robots in 2024, the fourth consecutive year above the half-million mark, taking the global operational stock to 4.66 million robots in factories worldwide. The value of industrial robot installations alone reached USD 16.7 billion in the year reported in January 2026, an all-time high, even as unit growth remained uneven across end markets.
KEY GROWTH DRIVERS
OUTLOOK
The IFR expects global installations to grow 6% to 575,000 units in 2025 and to surpass 700,000 units annually by 2028, and considers the long-term growth trend intact despite short-term macroeconomic variations across regions. Industry analysts increasingly frame the medium-term opportunity around Physical AI platforms, in which vision-guided, language-instructed robots displace traditionally programmed motion control systems, a shift that is expected to favour manufacturers with strong software and systems integration capability over those competing on hardware specification alone.
For component and sub-system suppliers, including manufacturers of automation equipment and allied hardware, this trajectory means each additional robot cell installed generates an incremental demand for tooling, fixtures, end-effectors, control systems, and integration services well beyond the value of the robot itself.
Indian robotic automation industry
Indias industrial robotics industry is at an early but rapidly accelerating stage of development. The country installed a record 9,100 industrial robots in 2024, up 7% from the previous year, taking it to sixth place globally in annual installations and ahead of established manufacturing economies such as France, Mexico, Spain, and Italy. The automotive sector remains the dominant adopter, followed by general industry, led by metal fabrication, rubber and plastics, and electrical and electronics manufacturing; the last expanding rapidly as electronics contract manufacturing scales up under government incentive schemes. Despite this growth, Indias robot density remains among the lowest of any major manufacturing economy, at approximately 12 robots per 10,000 manufacturing employees against 470 in China, 419 in Japan and over 1,000 in South Korea, a gap industry participants view as the source of the countrys long-term addressable market rather than a weakness.
The Indian industrial robots market was valued at USD 3.28 billion in 2025 and is estimated at USD 3.56 billion in 2026, and is projected to reach USD 8.06 billion by 2034, a compound annual growth rate of 10.8% over the forecast period. On unit metrics, annual installations rose to 8,510 units in 2023, up 59% from 2022, and to a record 9,100 units in 2024, up 7% with the automotive sector accounting for about 42% of installations.
INDIAS INDUSTRIAL ROBOTS MARKET SIZE (IN USD BILLION)
(chart)| Year | Value |
| 2025 | USD 3.28 bn |
| 2026 | USD 3.56 bn |
| 2034 (P) | USD 8.06 bn |
CAGR 10.8% (2026-2034)
Source: https://straitsresearch.com/report/industrial-robots-market/india
KEY GROWTH DRIVERS
I. Production-linked incentive schemes: The PLI programme, with a government incentive outlay of ?1.91 lakh crore, has attracted approved investment commitments exceeding ?2.16 lakh crore across 836 applications and generated employment for over 14.39 lakh people, with the Electronics Components Manufacturing Scheme allocation nearly doubled to ?40,000 crore in the Union Budget 2026-27, directly expanding the electronics manufacturing base that is a leading adopter of robotics.
II. Electronics and semiconductor manufacturing expansion: The shift of global electronics assembly toward India, including expanding smartphone and component manufacturing, is creating a fast-growing base of precision, high-volume production that naturally adopts robotic assembly, inspection, and material-handling systems.
III. Rising wages and a large unautomated manufacturing base: With robot density at roughly one-fortieth of South Koreas, and manufacturing wages rising steadily, the economics of automation are improving across a very large base of existing factories that have not yet adopted robotics.
IV. Policy focus on robotics as a deep technology: The Ministry of Electronics and Information Technologys draft National Strategy on Robotics targets enhanced research capability, Centres of Excellence and regulatory sandboxes for robotics, while the Research, Development and Innovation Scheme, with a FY 2026-27 budget of ?20,000 crore against a six-year outlay of ?1 lakh crore, names robotics among its mission-critical deep-technology focus areas.
OUTLOOK
Indias robot installations are expected to continue outpacing the global growth rate over the medium term, supported by continued PLI-driven capacity addition in electronics and semiconductors, rising labour costs, and a policy environment that now treats robotics as a named strategic priority. The gap between Indias robot density and that of established automation economies remains wide enough that even a sustained double-digit growth rate would leave considerable headroom for further adoption over the coming decade. For India-based automation manufacturers and system integrators, this combination of a low base, rising policy support and an expanding domestic manufacturing sector represents a structurally favourable, multi-year demand environment, though one in which continued investment in engineering capability and after-sales support will be necessary to compete against established global robotics majors expanding their own presence in the Indian market.
INDIAN CYBERSECURITY INDUSTRY
Cybersecurity has moved from a compliance obligation to a board-level capital allocation priority for Indian enterprises, driven by the scale of the countrys digital transformation. Indias payments infrastructure alone illustrates the size of the attack surface now requiring protection: the Unified Payments Interface processes more than 15 billion transactions every month, and this volume continues to expand alongside cloud migration, e-governance rollout, and the digitisation of financial, healthcare, and critical infrastructure services. The regulatory environment has hardened in step: the Digital Personal Data Protection Act, 2023 imposes significant penalties for data breaches, while CERT-Ins 2022 directions require incident reporting within six hours for entities in critical sectors. Against this backdrop, the market is shifting from point security products to integrated platforms that combine detection, response, and compliance reporting, favouring vendors that can deliver managed, outcome-based security services rather than standalone tools.
The India cybersecurity market was valued at USD 11.34 billion in 2025, up from USD 5.52 billion in 2020, and is projected to reach USD 44.04 billion by 2034, a compound annual growth rate of 15.46% over 2026-2034. Other estimates place the market on a similarly steep trajectory, with growth rates cited by different research houses ranging from approximately 15% to 18% depending on scope and methodology; this chapter uses the IMARC series throughout for internal consistency. Solutions account for most spending at 68.7%, cloud-based deployments lead at 62.5% of new spend, and BFSI remains the largest consuming sector.
Managed security services amid a talent shortfall:
A persistent shortage of skilled cybersecurity professionals is driving enterprises, particularly small and medium businesses, towards managed detection and response contracts rather than building in-house security operations centres, with SME spending forecast to grow faster than the market overall.INDIA CYBERSECURITY MARKET SIZE (IN USD BILLION)
(chart)| Year | Value |
| 2020 | USD 5.52 bn |
| 2025 | USD 11.34 bn |
| 2030 (P) | USD 23.26 bn |
| 2034 (P) | USD 44.04 bn |
Source:
https://www.mordorintelligence.com/industry-reports/india-cybersecurity-market
[P: Projected]
KEY TRENDS DRIVING GROWTH
IMPACT OF AI ON INDIAS CYBERSECURITY INDUSTRY
Artificial intelligence has become a double-edged force in Indias cybersecurity market, simultaneously the leading edge of defensive capability and the fastest-growing category of threat. On the defensive side, AI-driven systems are deployed in security operations centres to analyse network traffic and log data at a scale no longer achievable manually, reducing mean time to detect advanced persistent threats. Major Indian IT services providers have integrated AI into their security offerings to deliver proactive threat intelligence and automated incident response, and this capability is increasingly table stakes rather than a differentiator in security procurement.
On the threat side, the same technology has lowered the barrier to entry for attackers. CERT-Ins 2024 threat landscape reporting identified AI-assisted malware generation as a priority threat category, noting that large language models with weak safety guardrails can generate functional ransomware components, exploit scripts and social engineering payloads. Deepfake-enabled executive impersonation has emerged as a fast-growing fraud category; UPI fraud losses alone exceeded ?2,300 crore in the first quarter of 2026 per NPCI data, with AI-generated voice and video impersonation a contributing technique.
The institutional response has moved quickly. CERT-In issued a dedicated blueprint, Defending Against Frontier AI-Driven Cyber Risks, in April 2026, and between June and July 2026 conducted ten exercises on resilience against frontier AI-driven threats involving 1,470 participants from 345 organisations spanning power, telecom, BFSI, transport, education, health and space, alongside a dedicated CERT-In/SISA professional certification for securing AI systems, aimed at building specialist workforce capacity at scale.
OUTLOOK
Indias cybersecurity market is expected to sustain double-digit growth well into the next decade, with the underlying drivers becoming structural rather than cyclical: regulatory enforcement under the Digital Personal Data Protection Act is still in its early phase, incident-reporting volumes show no sign of plateauing, and the shift of enterprise workloads to the cloud remains under way rather than complete. The more consequential shift, however, is likely to be qualitative. As AI becomes embedded on both sides of the threat equation, competitive advantage is moving away from vendors selling discrete detection tools and towards those able to operate integrated, AI-enabled security platforms at scale, backed by the specialist workforce now being built through initiatives such as the CERT-In/SISA certification programme, and by enterprises able to demonstrate AI governance and resilience against AI-assisted attacks as a distinct procurement requirement.
COMPANY OVERVIEW
Affordable Robotic & Automation Limited (ARAPL) is a leading provider of automation solutions, delivering innovative, cost-effective robotic systems to enhance productivity, efficiency, and quality across industries. Headquartered in Pune, India, with a corporate office in Mumbai, the Company has steadily evolved from being a trusted domestic automation partner to building a growing presence in international markets, including the United States and China.
With expertise spanning industrial robotics, assembly lines, material handling, and customised automation solutions, ARAPL serves a diverse clientele of 75 marquee clients, including Honda, SKH-Magna, Mahindra, Tata Motors, and Piaggio, across the automotive, non-automotive, general industrial, and government sectors. The Companys strong engineering capabilities, customer-centric approach and focus on technology-driven solutions have established it as a reliable partner for businesses embracing automation. ARAPL was the first robotics company to be listed on an Indian stock exchange, having listed on the SME platform of BSE in June 2018 before migrating its equity shares to the main boards of both BSE and NSE during FY 2024-25.
KEY BUSINESS STRENGTHS
BUSINESS SEGMENT OVERVIEW
ARAPL organises its operations around three key business segments, each addressing a distinct automation need across Indias industrial and urban infrastructure landscape.
| Segment | Description |
| Automated robotic welding | Automates the metal-joining process, delivering greater accuracy, improved safety, and significantly reduced throughput time compared with manual welding. |
| Robotic multilevel parking | Smart and efficient multi-level car parking solutions designed to ease congestion and optimise space in densely populated urban areas. |
| Warehouse automation (Humro) | Warehouse execution systems and robotic agents operating as an integrated system, purpose-built to power robot-led fulfilment, delivered through the Companys subsidiary. |
Turning to the Companys robotics-as-a-service business, operated through its subsidiary ARAPL RaaS Private Limited under the brand Humro, FY 2025-26 marked a pivotal chapter. Humro secured a strategic investment of ?48 crore, with the first tranche of ?24 crore received, reinforcing investor conviction in its ambition to build a world-class autonomous robotics business. Humro has completed initial deployments with Fortune 50 companies and is in advanced discussions to finalise a strategic partnership in the United States, expected to reduce delivery lead times from about four months to around fifteen days.
Engineering excellence:
A skilled workforce and deep technical know-how, supported by proprietary software and a well-invested, 3,50,000 square feet state-of-the-art manufacturing facility, enable the design and execution of complex, high-value projects.Customer-centric approach:
Long-standing relationships with 75 marquee clients, including Honda, SXH-E, Magna, Mahindra, Tata Motors and Piaggio, built on trust, quality and timely delivery.Demonstrated cost discipline:
FY 2025-26 evidenced the Companys ability to expand margins through tighter cost control even in a year of calibrated revenue, with material cost, employee cost and other expenses each reduced meaningfully during the first nine months of the year.Growing global presence:
An expanding footprint beyond India, including operations in the United States and strategic discussions underway in Europe, opening new avenues for revenue diversification and growth through the Humro brand.Experienced promoters and management:
Leadership under founder and Managing Director Mr. Milind Padole, who brings over two decades of experience from Mahindra & Mahindra, Comau India and Tata Motors, supported by an experienced Board and senior management team.Strengthened capital base:
A strategic investment of ?48 crore into the Humro business, reinforcing the balance sheet available to fund the Companys international expansion.BUSINESS SEGMENT OVERVIEW
ARAPL organises its operations around three key business segments, each addressing a distinct automation need across Indias industrial and infrastructure landscape.
| Segment | Description |
| Automated robotic welding | Automates the metal joining process, delivering greater accuracy, improved safety, and significantly reduced throughput time compared with manual welding. |
| Robotic multilevel parking | Smart and efficient multi-level car parking solutions designed to ease congestion and optimise space in densely populated urban areas. |
| Warehouse automation (Humro) | Warehouse execution systems and robotic agents operating as an integrated system, purpose-built to power robotic fulfilment, delivered through the Companys subsidiary. |
Turning to the Companys robotics-as-a-service business, operated through its subsidiary ARAPL RaaS Private Limited under the brand Humro, FY 2025-26 marked a pivotal chapter. Humro secured a strategic investment of ?48 crore, with the first tranche of ?24 crore received, reinforcing investor conviction in its ambition to build a world-class autonomous robotics business. Humro has completed initial deployments with Fortune 50 companies and is in advanced discussions to finalise a strategic partnership in the United States, expected to reduce delivery lead times from about four months to around fifteen days.
FINANCIAL OVERVIEW
Results of operations
Revenue from operations declined 27.6% to ?11,767.01 lakhs in FY2025-26 from ?16,255.85 lakhs in the preceding year, reflecting a deliberate shift towards selective, margin-accretive project execution. Earnings before interest, tax, depreciation and amortisation (EBITDA) swung from a loss of ?233.49 lakhs to a profit of ?1,716.26 lakhs, lifting the EBITDA margin by 1,562 basis points to 14.19% of total income against negative 1.43% in the previous year. Profit after tax (PAT) moved from a loss of ?1,164.88 lakhs to a profit of ?697.11 lakhs, and diluted earnings per share improved to ?6.20 from negative ?10.36.
Consolidated
| Particulars | FY26 | FY25 | Change (%) |
| Revenue from operations | 11,767.01 | 16,255.85 | (27.60) |
| Other income | 328.88 | 99.25 | 231.40 |
| Total income | 12,095.89 | 16,355.10 | (26.00) |
| Operating expenses | 10,379.63 | 16,588.59 | (37.40) |
| EBITDA | 1,716.26 | (233.49) | 835.00 |
| EBITDA margin (%) | 14.19 | (1.43) | +1,562 bps |
| Depreciation and amortisation | 239.26 | 190.73 | 25.40 |
| Finance costs | 488.82 | 517.52 | (5.50) |
| Profit before tax | 988.19 | (941.74) | 204.90 |
| Tax expense | 291.08 | 223.14 | 30.40 |
| Profit after tax | 697.11 | (1,164.88) | 159.80 |
| PAT margin (%) | 5.76 | (7.12) | +1,288 bps |
| Diluted earnings per share (?) | 6.20 | (10.36) | 159.80 |
Financial position
Net worth increased to ?11,034.66 lakhs as at 31 March 2026 from ?10,074.64 lakhs a year earlier. The balance sheet total expanded to ?25,797.49 lakhs from ?23,275.69 lakhs, reflecting higher inventories, current tax assets, and non-current assets deployed on project execution. Total borrowings rose to ?6,881.52 lakhs from ?5,564.59 lakhs, taking the debt-to-equity ratio to 0.62 times from 0.55 times. Trade receivables reduced to ?5,783.68 lakhs from ?8,880.18 lakhs on improved collections, while cash and cash equivalents stood at ?703.93 lakhs against ?939.42 lakhs.
(? in lakh)
| Particulars | FY26 | FY25 | Change (%) |
| Net worth | 11,034.66 | 10,074.64 | 9.5 |
| Long-term borrowings | 2,619.25 | 2,016.47 | 29.9 |
| Short-term borrowings | 4,262.27 | 3,548.12 | 20.1 |
| Trade payables | 2,222.12 | 4,859.85 | (54.3) |
| Trade receivables | 5,783.68 | 8,880.18 | (34.9) |
| Cash and cash equivalents | 703.93 | 939.42 | (25.1) |
| Balance sheet total | 25,797.49 | 23,275.69 | 10.8 |
Key financial ratios
In accordance with Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, details of significant changes in key financial ratios, being changes of 25% or more compared with the immediately previous financial year, together with explanations, are set out below.
| Sr No Ratio | Year | Numerator | Denominator | Current Year Ratio | Previous Year Ratio | % Variance | Reason for Variance |
| 1 Current ratio | Current | 12,141 | 10,210 | 1.19 | 1.48 | -20% | Due to Short term Loan Extended by Promoter, which has the provision for conversion into equity |
| Previous | 15,033 | 10,168 | |||||
| 2 Debt-Equity ratio | Current | 5,252 | 11,827 | 0.44 | 0.50 | -11% | No Major Variance |
| Previous | 5,565 | 11,131 | |||||
| 3 Debt service coverage ratio | Current | 1,603 | 867 | 1.85 | 2.19 | -16% | No Major Variance |
| Previous | 1,439 | 656 | |||||
| 4 Return on equity ratio | Current | 696 | 11,827 | 5.88% | 5.38% | 9% | Improvement in ratio due to higher profit after tax (?696 lakhs vs ?599 lakhs) achieved through selective acceptance of better-margin orders, despite lower turnover |
| Previous | 599 | 11,131 | |||||
| 5 Inventory turnover ratio (days) | Current | 5,645 | 10,905 | 188.94 | 125.64 | 50% | Increase in WIP as the Project carried forward to next FY |
| Previous | 5,524 | 16,047 | |||||
| 6 Trade receivables turnover ratio (days) | Current | 5,436 | 10,905 | 182 | 194 | -6% | No Major Variance |
| Previous | 8,513 | 16,047 | |||||
| 7 Trade payables turnover ratio (days) | Current | 1,910 | 10,905 | 63.92 | 105.16 | -39% | Reduction in creditor cycle due to timely payments to suppliers to avail better commercial terms; closing payables lower than previous year |
| Previous | 4,623 | 16,047 | |||||
| 8 Net capital turnover ratio | Current | 11,827 | 10,905 | 1.08 | 0.69 | 56% | Increase in ratio on account of lower turnover in the current year, being a conscious/precautionary business decision to forgo low-margin orders and orders with extended payment cycles, so as to improve profitability and the cash conversion cycle |
| Previous | 11,131 | 16,047 | |||||
| 9 Net profit ratio | Current | 696 | 10,905 | 6.38% | 3.73% | 71% | Increase on account of improved margins, the Company having selectively accepted better-margin orders and forgone low-margin/long payment cycle orders. |
| Previous | 599 | 16,047 | |||||
| 10 Return on capital employed | Current | 1,123 | 17,079 | 6.58% | 6.38% | 3% | No Major Variance |
| Previous | 1,065 | 16,696 | |||||
| 11 Return on investment | Current | 1,123 | 17,079 | 6.58% | 6.38% | 3% | No Major Variance |
| Previous | 1,065 | 16,696 |
ENTERPRISE RISK MANAGEMENT
At ARAPL, risk management is central to our operations. The Company adopts an enterprise-wide approach focused on identifying and managing key operational and strategic risks, supported by a dynamic business continuity plan. The aim is to unlock opportunities that enhance organisational value while proactively mitigating risks that could impact future performance.
The Companys approach includes:
The Company continuously pursues initiatives to assess, minimise or avoid risk, while maintaining a strong focus on cost control and operational efficiency across all functions. The risk management framework involves prioritising risks, continuously monitoring them, implementing appropriate controls, and periodically reviewing and redesigning these mechanisms to ensure effectiveness in a dynamic business environment.
PRINCIPAL RISKS
| Risk | Description and mitigation |
| Revenue concentration and execution timing | Revenue recognition is tied to project dispatch schedules; a large order can shift billed revenue between quarters, as occurred with approximately INR 13 crore of Q1 FY27 sales that moved into Q2. The Company mitigates this through active order-book management and clear investor communication on phasing. |
| Cost and margin risk | Input, employee and overhead costs directly affect margins on fixed-price contracts. FY26 demonstrated the Companys ability to manage this risk actively, with material cost reduced by over ?4,233.03 lakhs and employee cost by over ?1,198.52 lakhs during the fiscal year. |
| International expansion and tariff risk | Humros US operations are exposed to trade policy changes; recent US tariff revisions were addressed through a modest price adjustment and a shift to CKD/SKD shipment models, with Humro expected to remain 15-20% more cost-effective than competitors. |
| Talent and technology risk | The pace of innovation in robotics and automation requires continuous investment in R&D and technical talent; the Company mitigates this through in-house design, manufacturing, and robot-programming capability and a proprietary software portfolio. |
| Subsidiary and funding risk | The Humro business currently operates at a loss as part of its planned growth strategy; the Company mitigates this through structured capital raises, including the ?48 crore strategic investment secured during the year. |
CYBERSECURITY RISK MANAGEMENT
The Company recognises cybersecurity as a critical component of its overall risk management framework. The Company maintains its cybersecurity systems through IT infrastructure enhancements, regular vulnerability assessments, multifactor authentication, and cybersecurity awareness training for employees. The Risk Management Committee and the Board periodically review the adequacy and effectiveness of these measures. No material cybersecurity incidents were reported during FY 2025-26, and the Company continues to invest in advanced monitoring tools and best practices to ensure the confidentiality, integrity and availability of its data and digital assets.
HUMAN CAPITAL
ARAPLs people have been at the heart of the Companys journey and will continue to drive its future growth. Their talent, dedication and sense of ownership form the bedrock of the Companys achievements. The Company holds its employees contributions in the highest regard, placing their trust, wellbeing, and safety at the forefront of everything it does.
The Company is committed to creating an inclusive, performance-oriented and entrepreneurial culture that brings out the best in every individual and team, and to maintaining an equal-opportunity workplace that promotes openness and diversity. Talent acquisition is supported by employee referrals and campus hiring, while retention is supported by competitive compensation, health insurance, performance bonuses and a robust internal career development framework. The total number of employees on the Companys payroll as of 31st March 2026 is 400+.
INTERNAL CONTROL SYSTEMS AND ADEQUACY
A robust internal control mechanism is a prerequisite to ensure that an organisation functions ethically, complies with all legal and regulatory requirements, and observes the generally accepted principles of good corporate governance. It extends the overall corporate risk management framework and is integral to the accounting and financial reporting process.
ARAPLs internal control systems are commensurate with the nature of its business and the size and complexity of its operations. The control mechanism provides for well-documented policies and guidelines, authorisation and approval procedures to ensure the orderly and efficient conduct of business. This includes adherence to the Companys policies, safeguarding its assets, preventing and detecting fraud and errors, and ensuring the accuracy and completeness of accounting records and the timely preparation and presentation of reliable financial information.
The Board has laid down policies and processes for internal financial controls, and these controls were adequate and operated effectively during the year, covering adherence to Company policies, safeguarding of assets, prevention and detection of fraud and errors, and accuracy and completeness of accounting records. The Statutory Auditors routinely test and certify these controls, and report significant audit observations and follow-up actions to the Board. The Board reviews the adequacy and effectiveness of the Companys internal control environment and monitors the implementation of audit recommendations.
The Company believes that its experienced and qualified employees play a key role in fostering an environment in which controls, assurance, accountability, and ethical behaviour are accorded high importance. The Statutory Auditors reported no instances of fraud during FY 2024-25; the corresponding disclosure for FY 2025-26 will be confirmed from the Boards Report and Auditors Report for the year.
CAUTIONARY STATEMENTS
The Management of ARAPL India Limited has prepared and is responsible for the financial statements that appear in this report. These statements conform to the accounting principles accepted in India and include amounts based on informed judgments and estimates. ARAPLs projections, estimates, and expectations described in this report should be interpreted as forward-looking statements that can be impacted by various internal and external risks. Risks associated with market, strategy, technology, operations and stakeholders can significantly affect the business and the actual results may differ substantially or materially from those expressed or implied.
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+91 9892691696
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