ARAPL Q2 profit reaches Rs 6.47 crore following Q1 loss

Affordable Robotic and Automation Limited reported standalone profit after tax of Rs 6.47 crore in Q2 FY27, reversing a Rs 4.80 crore Q1 loss, as net revenue from operations rose 342% sequentially to Rs 40.02 crore and quarterly EBITDA reached Rs 9.15 crore.

How did ARAPL reverse its Q1 FY27 loss?

ARAPL reversed its Q1 FY27 loss as standalone net revenue from operations rose from Rs 9.06 crore to Rs 40.02 crore and EBITDA moved from a Rs 3.28 crore loss to a Rs 9.15 crore profit in Q2 FY27. Total revenue increased 339% sequentially to Rs 40.06 crore from Rs 9.12 crore, while profit after tax changed from a Rs 4.80 crore loss to Rs 6.47 crore.

The revenue gain was larger than the increase in costs during the quarter. Materials consumed rose from Rs 5.83 crore in Q1 to Rs 23.67 crore in Q2, employee benefits expense declined to Rs 3.78 crore from Rs 3.90 crore, and other expenses increased to Rs 3.46 crore from Rs 2.66 crore. After depreciation and amortisation of Rs 45.93 lakh and finance costs of Rs 1.76 crore, ARAPL reported Q2 profit before tax of Rs 6.94 crore.

What drove ARAPL's standalone margin expansion?

ARAPL's reported standalone margin expansion reflected higher revenue, a lower materials-cost ratio and largely stable employee costs in H1 FY27. EBITDA increased 49% year on year to Rs 5.87 crore in H1 FY27 from Rs 3.95 crore in H1 FY26, while EBITDA margin rose to about 11.9% from about 8.9%. Q2 FY27 EBITDA margin was about 22.9%, according to the results presentation.

Material costs represented 60.1% of H1 FY27 revenue, down from 64.0% in H1 FY26, a reduction of about 380 basis points. In absolute terms, material costs increased to Rs 29.51 crore from Rs 27.50 crore as H1 net revenue grew 14% to Rs 49.07 crore. Employee benefits expense was Rs 7.67 crore, compared with Rs 7.59 crore a year earlier, while other expenses rose to Rs 6.12 crore from Rs 5.54 crore.

The presentation indicates that the improvement was not principally due to other income. Other income fell to Rs 10.12 lakh in H1 FY27 from Rs 1.58 crore in H1 FY26, while operating EBITDA excluding other income rose 2.4 times to Rs 5.77 crore from Rs 2.37 crore. Standalone profit before tax rose 175% to Rs 2.14 crore and profit after tax rose 187% to Rs 1.67 crore for the half year.

How did ARAPL's consolidated results compare with standalone results?

ARAPL's consolidated Q2 FY27 revenue and EBITDA were higher than its standalone figures, while quarterly profit after tax was almost identical. Consolidated net revenue from operations was Rs 41.34 crore, compared with standalone revenue of Rs 40.02 crore, and consolidated EBITDA was Rs 9.47 crore compared with Rs 9.15 crore. Consolidated profit after tax was Rs 6.47 crore, against standalone profit after tax of Rs 6.47 crore.

For H1 FY27, consolidated net revenue grew 12% year on year to Rs 52.37 crore, while standalone net revenue grew 14% to Rs 49.07 crore. Consolidated EBITDA increased 44% to Rs 6.20 crore from Rs 4.29 crore, and the margin rose to about 11.7% from about 8.9%. Consolidated profit after tax increased 90% to Rs 1.67 crore from Rs 87.87 lakh, below the 187% growth reported on the standalone basis because the comparative consolidated profit was higher.

The group cost mix differed from the standalone pattern because of subsidiary-level staffing. Consolidated material costs fell to 58.4% of H1 FY27 revenue from 64.2% in H1 FY26, while employee benefits expense rose to Rs 9.39 crore from Rs 7.68 crore. ARAPL attributed that increase to the scale-up of the Humro team. Consolidated other income was Rs 52.11 lakh in H1 FY27, down from Rs 1.62 crore a year earlier, and operating EBITDA excluding other income rose 2.1 times to Rs 5.67 crore.

What business plans has ARAPL disclosed after the Q2 recovery?

ARAPL has disclosed parking-automation, warehouse-robotics and productivity plans that could affect execution in the second half and beyond. It launched two mobile parking robots, called 2M and 2M slim, under the Relipark brand and said it secured its first mobile-parking order worth Rs 19 crore. The company also said it is pursuing airport-parking revamp opportunities in the United Kingdom using its new technology.

For Humro, ARAPL said it had secured an order worth Rs 51.8 crore for 103 robots, described as its largest single order. It also said Humro had received FCC approval in the United States and plans to begin appointing dealers in 12 countries from January 2027. Those markets include India, Australia, the United Kingdom, Germany, Canada and the Middle East.

Management has set a March 2027 target to install 50 artificial-intelligence agents across departments to support productivity and faster growth. Humro's new-look robots are scheduled for launch in the first half of 2027, while next-generation reinforcement-learning robots are scheduled for the second half of 2027. Managing Director Milind Padole said management was confident of sustaining momentum through the second half, citing the industrial-automation order book, parking activity and global traction for Humro.

Conclusion

ARAPL's Q2 FY27 turnaround was driven by a Rs 30.96 crore sequential increase in standalone net revenue and a move from a Rs 3.28 crore EBITDA loss to Rs 9.15 crore EBITDA. The H1 comparison supports the operational component of the improvement: materials consumed declined as a share of revenue, employee costs changed little on the standalone basis, and other income was materially lower than in H1 FY26.

The next factors to watch are execution of the Rs 19 crore parking order and the Rs 51.8 crore Humro order for 103 robots, as well as planned dealer appointments from January 2027. ARAPL has also scheduled launches of new-look Humro robots in the first half of 2027 and reinforcement-learning robots in the second half of 2027, alongside its target to deploy 50 artificial-intelligence agents by March 2027.