ARVEE - Arvee Laborat.

📊 NSE: ARVEE 🏢 Chemicals 📅 Last Updated: 12/13/2025 18:32

💰 Financial Performance

Revenue Growth by Segment

Total Revenue from Operations grew 26.83% YoY to INR 38.49 Cr in FY25. Domestic manufacturing sales grew 34.1% to INR 31.45 Cr, while export manufacturing sales declined 20.9% to INR 5.30 Cr. Domestic trading contributed INR 0.35 Cr and export trading INR 0.34 Cr.

Geographic Revenue Split

Domestic sales (India) account for 81.7% of revenue (INR 31.45 Cr), while Export sales account for 13.8% (INR 5.30 Cr). Other operating income contributes the remaining 4.5%.

Profitability Margins

Net Profit Margin improved from 3.46% in FY24 to 5.58% in FY25. Net Profit grew 104.15% YoY to INR 2.15 Cr, driven by higher revenue and a 23.3% reduction in depreciation expenses (from INR 1.50 Cr to INR 1.15 Cr).

EBITDA Margin

EBITDA Margin was 11.1% in FY25 (INR 4.27 Cr) compared to 11.8% in FY24 (INR 3.58 Cr). Core profitability slightly contracted despite the net profit surge due to higher raw material consumption costs.

Credit Rating & Borrowing

Non-current borrowings stood at INR 1.03 Cr as of March 31, 2025. Finance costs for FY25 were INR 0.25 Cr, representing a marginal 0.5% decrease YoY. Specific credit ratings and interest rate percentages were not disclosed.

⚙️ Operational Drivers

Raw Materials

Chemical raw materials (Specific names like benzene or specialty feedstocks not disclosed) represent 49% of total revenue, totaling INR 18.87 Cr in FY25.

Raw Material Costs

Raw material costs were INR 18.87 Cr in FY25, up from INR 15.12 Cr in FY24 (a 24.8% increase), tracking closely with revenue growth. Procurement is managed to mitigate price volatility in the chemical market.

📈 Strategic Growth

Growth Strategy

The company aims to achieve growth by increasing profitability through operational efficiencies and focusing on its manufacturing segment, which saw 34.1% domestic growth. Management is taking steps to mitigate risks from currency fluctuations and market price volatility to stabilize margins.

Products & Services

Chemical products manufactured and traded for industrial use (Specific product names not disclosed).

Brand Portfolio

Arvee Laboratories.

🌍 External Factors

Industry Trends

The chemical industry is characterized by intense competition and regulatory changes. Arvee is positioning itself by maintaining cost records and following relevant accounting standards, though it faces pressure from market-linked pricing.

Competitive Landscape

Faces 'intense competition' which management notes may limit growth prospects and pricing ability.

Competitive Moat

The company lacks a durable moat; it operates in a highly competitive market where products are subject to prevailing market prices, and it faces significant promoter dependency.

Macro Economic Sensitivity

The business is sensitive to global economic and social conditions which can increase costs and negatively affect stock prices. H1 FY26 results show a 92.82% collapse in PBT, indicating high sensitivity to macro-driven revenue drops.

Geopolitical Risks

Global political conditions are cited as risks that could harm the ability to do business and increase operational costs.

⚖️ Regulatory & Governance

Industry Regulations

Subject to the Companies Act 2013 for cost record maintenance. The company received a secretarial qualification for failing to file the Cost Report on time for FY25.

Taxation Policy Impact

Effective tax rate for FY25 was approximately 25.2% (INR 0.72 Cr tax on INR 2.87 Cr PBT).

Legal Contingencies

The company reports nil pending litigations that would impact its financial position as of March 31, 2025. No material foreseeable losses on long-term contracts were reported.

⚠️ Risk Analysis

Key Uncertainties

Key risks include currency fluctuation, regulatory changes, and manufacturing supply disruptions. The 52.7% YoY revenue drop in H1 FY26 represents a critical uncertainty regarding demand stability.