Arham Technologies: Powering Ahead with Record H1 FY26 Growth and Strategic Expansion

Arham Technologies Limited, a prominent player in India's consumer electronics sector, has announced a stellar performance for the first half of Fiscal Year 2026 (H1 FY26), showcasing remarkable growth and strategic execution. The company reported a staggering 123.48% year-on-year increase in Profit After Tax (PAT), reaching ₹5.90 crore. This impressive bottom-line growth was complemented by a robust 40.66% year-on-year rise in Revenue from Operations, which stood at ₹45.63 crore. The results underscore Arham's strong operational capabilities, improved efficiencies, and sustained revenue momentum, solidifying its position as a leading 'Make in India' brand.

The company's H1 FY26 performance was largely driven by its core product segments. Televisions continued to be the primary revenue driver, contributing approximately ₹30 crore, or 65.74% of the total H1 revenue. Fans followed with ₹10 crore (21.91%), while air coolers added ₹4 crore (8.77%). The remaining ₹2 crore (4.38%) came from other appliances like washing machines and mixer grinders. This diversified yet television-centric revenue mix highlights the company's ability to cater to varied consumer demands across different product categories. Management noted a shift in consumer preference towards larger TV sizes, particularly 32-inch and 43-inch and above, partly influenced by GST rationalization, leading to an increase in average selling price per TV from ₹5,300-₹5,400 in FY25 to approximately ₹6,000 in H1 FY26.

Strategic Initiatives and Growth Outlook

Arham Technologies is embarking on its next phase of growth with a clear focus on expanding manufacturing depth, diversifying product categories, and strengthening its Starshine brand across India. A key strategic move is backward integration through investments in sheet-metal fabrication and injection-moulding capabilities. This will enable in-house manufacturing of television cabinets and plastic components for air coolers, which is expected to improve margins by 5-7% in air coolers and 5% in TV cabinets by the end of FY27, by reducing procurement and logistics costs. This initiative is crucial for enhancing cost efficiency and quality control.

The company is also aggressively expanding its product portfolio beyond traditional white goods. A significant foray is into sunrise sectors with high-margin products, including Interactive Flat Panel Displays (IFPDs) and IoT-enabled solutions. These IFPDs are primarily targeted at the government education sector, with central and state governments allocating substantial budgets for smart classroom programs. Management anticipates phenomenal growth from this segment, with the potential for a single government tender to double or triple revenue, given that only a few players currently manufacture these in India. The company's manufacturing capabilities are being upgraded to support screen sizes up to 98 inches for both Smart TVs and IFPDs.

Geographic expansion is another pillar of Arham's growth strategy. While currently strong in Chhattisgarh, Odisha, and Madhya Pradesh, the company plans to establish a market presence in Gujarat, Rajasthan, Andhra Pradesh, Maharashtra, Uttar Pradesh, Jharkhand, and Bihar. Furthermore, Arham is targeting Southern India (Tamil Nadu, Karnataka, Andhra Pradesh, Telangana) for expansion in FY26-27 and exploring international markets in the Middle East, Africa, and Asia, aiming for a 20% revenue contribution from exports. This broadens the company's revenue streams and provides currency diversification.

Building Brand and Operational Excellence

To support its ambitious growth targets, Arham is significantly investing in brand building and distribution. The company plans to onboard a celebrity ambassador and allocate approximately ₹10-₹12 crore over the next two years for branding and marketing activities. This is expected to accelerate market penetration and help achieve the ₹300 crore revenue target by 2028. Additionally, an equity deal with Bennett Coleman Company, involving ad spends across Times of India group properties over five years, will further enhance brand visibility. The distribution network is set to expand from 80 to 250 distributors by FY27, strengthening its reach in Tier 2 and Tier 3 cities and through modern retail channels.

Operationally, the company is focused on improving its cash conversion cycle and driving higher efficiency. While acknowledging that the cash conversion cycle has been high during the expansion phase due to inventory requirements for new SKUs, management expects continuous improvement. The current plant utilization of approximately 30% for televisions and fans is targeted to reach 80% by FY28, leveraging existing infrastructure without significant additional capital expenditure, demonstrating a capital-light, output-heavy growth model. This disciplined approach to capital allocation and operational excellence underpins Arham's confidence in scaling its business.

Outlook and Investor Confidence

Arham Technologies is poised to scale beyond ₹500 crore revenue with superior ROE/ROCE, aiming to become a leading electronics brand. The company's strategic alignment with the 'Atmanirbhar Bharat' and PLI-driven opportunities positions it as a preferred OEM partner for global and domestic brands. Management's vision is clear: to become a true mass-market leader, bringing trusted consumer electronics into more households across India. With a projected revenue of ₹115-₹120 crore for FY26 and a long-term goal of ₹1,000-₹1,200 crore at optimal utilization within 6-7 years, Arham Technologies is demonstrating strategic clarity and disciplined execution, reinforcing investor trust in its growth trajectory.