Arham Technologies Ltd Management Discussions

ANNEXURE- VIII

Company Overview:

Arham Technologies Limited, formerly known as Arham Technologies Private Limited, is engaged in the manufacturing of LED Smart Televisions under its brand "STARSHINE", available in multiple screen sizes. The Company also undertakes manufacturing of fans, air coolers, and mixer grinders through third-party manufacturers under the same brand.

The Companys products are distributed through an established network of dealers and distributors across Chhattisgarh, Madhya Pradesh, Odisha, Vidarbha, Andhra Pradesh, and parts of Uttar Pradesh. Strategically located in the Electronic Manufacturing Cluster (EMC) at Raipur Smart City, the Company benefits from strong logistics connectivity, proximity to central Indian markets, and reduced transportation costs, providing a significant competitive advantage.

Financial Performance:

During FY 2025–26, the Company delivered strong operational and financial performance. The key financial highlights are as follows:

Sr. No. Particulars	Standalone (INR Lakhs)	Consolidated (INR Lakhs)
1. Gross Revenue	10224.96	11856.61
2. EBITDA (Gross Profit before Interest, Depreciation & Tax)	1,322.75	1,905.97
3. Net Profit (after tax)	737.95	1220.47

The Company has demonstrated steady growth in both standalone and consolidated operations, reflecting improved operational efficiency, cost management, and business expansion.

Internal Control System and their adequacy:

The Company maintains a strong and effective internal control system designed to ensure accuracy in financial reporting, safeguard assets, and ensure compliance with applicable laws and regulations. Key elements include:

• Regular internal audits conducted by independent Internal Auditors.

• Periodic reviews by management and the Audit Committee.

• Strong authorization and approval controls for all financial transactions.

These systems are periodically reviewed and strengthened to ensure operational efficiency and compliance with evolving regulatory requirements.

Opportunities and Threats:

Opportunities:

• Expansion into new domestic and international markets

• Adoption of advanced technologies and smart manufacturing practices

• Benefits from Government initiatives such as Make in India and Digital India

• Strategic advantage of EMC cluster and logistics efficiency

• Skilled workforce availability and institutional collaborations

• Increasing demand for smart consumer electronics and appliances

Threats:

• Intense competition in consumer electronics and appliances sector

• Dependency on external suppliers and third-party manufacturers.

• Regulatory changes and compliance requirements.

• Supply chain disruptions and input cost fluctuations.

• Macroeconomic and geopolitical uncertainties.

• Environmental and sustainability-related compliance pressures.

Segment-wise or Product-wise Performance:

The Company operates in a single business segment, i.e., Manufacturing & Trading of LED televisions and home appliances under the brand "STARSHINE".

	Standalone Statement		Consolidated Statement
Particulars	Year Ended 31.03.2026	Year Ended 31.03.2025	Year Ended 31.03.2026	Year Ended 31.03.2025
Revenue From Operation	10224.96	6,515.75	11856.61	6,989.35
Other Income	2.75	19.71	2.75	19.71
Total Income	10227.71	6,535.46	11859.36	7,009.06
Profit Before Interest and Depreciation	1,322.75	1,125.89	1,905.97	1288.62
Less: - Finance Cost	233.73	227.38	233.73	227.38
Less: - Depreciation	93.93	109.29	94.67	110.18
Profit Before Exceptional Item and Tax	995.09	789.22	1577.57	951.06
Exceptional Item	-	-	-	-
Profit Before Tax	995.09	789.22	1577.57	951.06
Less: - Provision for Tax
- Current Tax	258.47	212.59	358.45	242.37
- Current tax expense relating to prior years	-	-	-	-
- Deferred Tax Assets/Liability	(1.33)	18 79)	(1.35)	(18.85)
Net Profit After Tax	737.95	595.42	1220.47	727.54
Transfer to General Reserve	737.95	595.42	1220.47	727.54
Surplus carried to Balance Sheet	737.95	595.42	1220.47	727.54
Earnings per equity share:
- Basic	4.19	3.52	6.94	4.30
- Diluted	4.15	3.52	6.87	4.30
Proposed Dividend on Equity Shares	-	-	-	-
Tax on proposed Dividend	-	-	-	-

Dividend and Reserves:

• Proposed Dividend: NIL

• Transfer to General Reserve: Standalone INR 737.95 Lakhs

• Surplus carried to Balance Sheet: Standalone INR 737.95 Lakhs

Earnings per Equity Share:

• Standalone: 4.19

• Consolidated: 6.94

Financial Performance Analysis:

The Company has registered strong growth during FY 2025–26 compared to the previous financial year:

• Standalone revenue increased significantly to INR 10,224.96 Lakhs from INR 6,515.75 Lakhs in FY 2024–25, reflecting a growth of 56.92%

• Standalone Net Profit increased to INR 737.95 Lakhs from INR 595.42 Lakhs, registering a growth of 23.93%.

• Consolidated Net Profit stood at INR 1,220.47 Lakhs compared to INR 727.54 Lakhs in the previous year.

This growth reflects the Companys focus on operational efficiency, product expansion, and improved market penetration.

Human Resources and Industrial Relations:

Employees remain a key pillar of the Companys success. The Company continues to invest in human capital through:

• Regular training and skill development programs

• Employee engagement and welfare initiatives

• Focus on maintaining harmonious industrial relations

• Continuous improvement in workplace productivity and efficiency

Key Financial Ratios and Variance Analysis:

The key financial ratios of the Company for the current financial year (C.Y.) compared with the previous financial year (P.Y.) are as follows:

Sr. No Ratio	C.Y	P. Y	% Change	Remarks
1. Current Ratio	2.47	1.68	47.02%	Improvement due to better working capital position and higher current assets relative to current liabilities.
2. Debt-Equity Ratio	0.29	0.92	-68.48%	Significant reduction indicating lower dependence on borrowings and stronger equity base.
3. Debt Service Coverage Ratio	-	-	-	Nil DSCR indicates limited or no debt servicing obligation during the year.
4. Return on Equity	0.12	0.22	-45.45%	Decline due to proportionally lower increase in net profit compared to growth in shareholders funds.
5. Inventory Turnover Ratio	2.90	1.62	79.01%	Improved inventory management and faster movement of stock during the year.
6. Trade Receivables Turnover Ratio	3.65	5.23	-30.12%	Decline indicates slower collection efficiency and higher receivable holding period.
7. Trade Payables Turnover Ratio	5.99	12.31	-51.34%	Longer payment cycle reflecting improved working capital utilization.
8. Net Capital Turnover Ratio	1.73	2.87	-39.72%	Reduction due to higher working capital base relative to revenue.
9. Net Profit Ratio	0.07	0.09	-22.22%	Marginal decline in profitability margins during the year.
10. Return on Capital Employed	0.10	0.18	-44.44%	Decline due to lower efficiency in utilization of capital employed.
11. Return on Investment	0	0	-	No material changes during the year.

Conclusion:

The Company has demonstrated strong operational resilience and financial growth during FY 2025–26. With a strategic location advantage, expanding product portfolio, and supportive government policies, the Company is well-positioned for sustained growth.

Going forward, the management remains focused on enhancing operational efficiency, strengthening distribution networks, and driving innovation to deliver long-term value to all stakeholders.

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
SD/-	SD/-
Name: Roshan Jain	Name: Ankit Jain
Designation: Managing Director	Designation: Director
DIN: 06381291	DIN: 06381280
Date: 15.06.2026
Place: Raipur