ARHAM - Arham Tech

📊 NSE: ARHAM 🏢 Electronics - Consumer 📅 Last Updated: 12/13/2025 18:29

💰 Financial Performance

Revenue Growth by Segment

Standalone revenue grew 19.2% YoY from INR 5,468.94 Lakhs to INR 6,515.75 Lakhs. Consolidated revenue reached INR 6,989.35 Lakhs for FY 2024-25. Segment-specific percentage splits are not disclosed, but growth is driven by TVs, Fans, and Coolers.

Geographic Revenue Split

Not explicitly disclosed by percentage, but the company focuses on 'Bharat' (regional Indian markets) and operates from its base in Chhattisgarh to serve regional demand.

Profitability Margins

Net Profit Ratio remained stable at 9% for FY 2024-25. Standalone Net Profit grew 22.3% from INR 486.48 Lakhs to INR 595.42 Lakhs. Consolidated Net Profit stood at INR 727.54 Lakhs.

EBITDA Margin

Consolidated EBITDA margin is approximately 18.4% (INR 1,288.62 Lakhs on revenue of INR 6,989.35 Lakhs). Standalone EBITDA grew from INR 902.72 Lakhs to INR 1,125.89 Lakhs, a 24.7% increase.

Capital Expenditure

The company follows a 'Capex-Light' model, aiming for 8x revenue for every INR 1 of asset. However, a preferential issue is planned to fund capital expenditure in its subsidiary, Arham Corporate Private Limited, and INR 10 Cr is committed to branding over 2 years.

Credit Rating & Borrowing

Borrowing costs increased 43% YoY from INR 158.97 Lakhs to INR 227.38 Lakhs. Debt-Equity ratio improved by 30.47%, falling from 2.33 to 1.62 due to repayment and equity retention.

⚙️ Operational Drivers

Raw Materials

Plastics and sheet metal are primary inputs. The company is implementing backward integration for these materials to reduce vendor dependency and improve margins.

Import Sources

Not specifically disclosed, though the company emphasizes 'India-Made' and localized manufacturing in Chhattisgarh to ensure a Just-in-Time (JIT) supply chain.

Capacity Expansion

Current plant utilization is 30%, with a strategic plan to scale to 80% by FY28. This expansion is designed to be 'fungible' with current capacity, requiring no significant additional capex.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but backward integration into plastics and sheet metal is cited as the primary strategy to lower procurement costs and improve turnaround.

Manufacturing Efficiency

The company claims a 'multiplier effect' where scaling utilization from 30% to 80% drives disproportionate gains in EBITDA/PAT as fixed costs remain constant.

Logistics & Distribution

Not disclosed as a specific percentage, but the strategic location in the Electronic Manufacturing Cluster (Nava Raipur) provides a regional distribution advantage.

📈 Strategic Growth

Expected Growth Rate

60%

Growth Strategy

The company aims to reach INR 300 Cr revenue by FY28 (up from ~INR 70 Cr) through a 3-pronged strategy: 1) Investing INR 10 Cr in celebrity endorsements and branding for the 'STARSHINE' brand; 2) Aggressively bidding for Government tenders for Interactive Flat Panels (IFP) which could 2x-3x revenue; 3) Increasing plant utilization from 30% to 80%.

Products & Services

Smart Televisions (LED TVs), Fans, Air Coolers, and Interactive Flat Panels (IFP).

Brand Portfolio

STARSHINE

New Products/Services

Interactive Flat Panels (IFP) for the education/government sector, expected to be a 'game changer' for revenue scaling.

Market Expansion

Focusing on regional markets ('Bharat') and scaling the STARSHINE brand to a national level through celebrity-led marketing.

🌍 External Factors

Industry Trends

The industry is shifting toward localized electronics manufacturing. Arham is positioning itself as a pure-play manufacturer with high asset efficiency (8x turnover) compared to the industry average of 2-3x.

Competitive Landscape

Competes with major national white goods brands and regional suppliers, particularly in the fan and TV segments.

Competitive Moat

Moat is built on 'Built-In Operating Leverage' and a 'Capex-Light' model. The ability to triple output without significant new debt or equity dilution provides a durable cost advantage over capital-intensive competitors.

Macro Economic Sensitivity

Highly sensitive to consumer spending on white goods and government education budgets (for IFP tenders).

Consumer Behavior

Increasing demand for affordable, India-made electronics in regional markets is driving the shift toward brands like STARSHINE.

Geopolitical Risks

Not disclosed, though the 'India-Made' focus suggests a strategy to mitigate risks associated with imported electronics components.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Companies Act 2013 and SEBI (LODR) Regulations. Manufacturing is located in a designated Electronic Manufacturing Cluster, subject to local industrial norms.