Arham Technologies H1 FY26 PAT jumps 123% on ₹45.63 cr

First earnings call sets the tone for growth

Arham Technologies Limited (NSE-SME: ARHAM) held its first earnings call on November 17, 2025, to discuss financial results for the half year ended September 30, 2025. Management positioned the period as a shift from being a regional and EMS-led player towards a mass-market consumer electronics brand under its Starshine brand. The company linked its performance to improved operating execution, product mix, and a sharper focus on scaling in televisions and home appliances.

The call also laid out a roadmap built around deeper manufacturing integration, wider distribution in Tier II and Tier III markets, and higher brand investments. Arham reiterated an ambition to scale revenue to ₹300 crore by FY28, supported by capex and working-capital initiatives.

H1 FY26 financial performance: revenue up 40.66%, PAT up 123.48%

For H1 FY26, Arham reported revenue from operations of ₹45.63 crore, up 40.66% year-on-year. Total income stood at ₹46.24 crore, an increase of 42.45% versus the same period last year. EBITDA increased to ₹8.46 crore, up 64.27% year-on-year.

Profit after tax (PAT) rose 123.48% year-on-year to ₹5.90 crore, and PAT margin expanded to 12.93% from 8.14% a year earlier. Earnings per share (EPS) increased 11.54% year-on-year to ₹3.48. The company attributed the profitability jump to improved efficiencies and sustained revenue growth.

Product mix: televisions remained the largest contributor

Arham’s H1 FY26 revenue mix was led by televisions, followed by fans and air coolers. Televisions contributed approximately ₹30 crore, or 65.74% of total H1 revenue. Fans contributed ₹10 crore (21.91%), while air coolers added ₹4 crore (8.77%).

Management also highlighted progress in higher-value segments such as smart televisions and home appliances. The company said it is preparing a stronger lineup of televisions, appliances, and BLDC fans, alongside longer warranties and a more reliable service network.

Backward integration and capex: sheet metal and injection moulding

A central theme from the call and accompanying disclosures was backward integration. Arham is investing in sheet-metal fabrication and injection-moulding capabilities to bring key components in-house. The stated objective is tighter cost control, better quality, and scalable operations.

The company said in-house manufacturing of television cabinets and plastic components for air coolers is expected to improve margins by 5-7% in air coolers and by 5% in TV cabinets by the end of FY27, primarily by reducing procurement and logistics costs. Separately, Arham has also indicated a ₹18.5 crore capex plan to expand large-size television production capacity and introduce interactive flat panels.

Distribution push across Bharat and new geographies

Arham said distribution expansion remains a core driver, supported by a growing dealer network in Tier II and Tier III markets. It also referenced deeper partnerships with modern retail and state-led education programmes, which it sees as an opportunity pool for demand.

On geography, the company highlighted strength in Chhattisgarh, Odisha, and Madhya Pradesh, and outlined plans to establish presence in Gujarat, Rajasthan, Andhra Pradesh, Maharashtra, Uttar Pradesh, Jharkhand, and Bihar. It also flagged Southern India as a targeted expansion region during FY26-27, covering Tamil Nadu, Karnataka, Andhra Pradesh, and Telangana.

Exports: early traction and a 20% long-term mix goal

Alongside domestic expansion, Arham indicated it is exploring international markets in the Middle East, Africa, and Asia. It has also referenced minor exports to Nepal. The company’s stated export ambition is for international markets to contribute 20% of revenue over time.

The export plan was described as part of a broader effort to widen the growth runway and diversify revenue streams. However, the disclosures emphasised that the core near-term focus remains scaling distribution and brand presence in India.

Brand spend and marketing: ₹10-₹12 crore over two years

Arham plans to onboard a celebrity ambassador and allocate approximately ₹10-₹12 crore over the next two years for branding and marketing. Management linked this spend to accelerating market penetration for Starshine and supporting the targeted scale-up to ₹300 crore revenue by 2028.

The company also said it intends to reinforce consumer trust through longer warranties and a stronger service network, aligning product strategy to what it described as mass-premium demand.

Utilisation and operating model: from 30% to 80% by FY28

Arham disclosed that current plant utilisation is around 30% for televisions and fans. It is targeting 80% utilisation by FY28 by leveraging existing infrastructure without significant additional capex, framing this as a capital-light, output-heavy approach.

It also mentioned tighter working-capital discipline and an improving cash conversion cycle as operational priorities while it scales volumes.

Fundraise, subsidy and capital planning

In January 2025, the board approved raising ₹43 crore through a rights issue, signalling capacity expansion and product development plans. Arham also secured a ₹0.65 crore subsidy (₹65 lakh) from the Chhattisgarh government under the Fixed Capital Subsidy Scheme to support diversification at its Raipur plant, with the amount expected to be credited by H1 FY26.

The company’s commentary during the period also referenced a “successful fundraise” supporting capex, backward integration, and brand initiatives.

Stock reaction and investor focus points

A market note in the provided material said Arham shares jumped about 7% during a Thursday trading session after the company outlined plans to scale revenue to ₹300 crore by FY28 and invest over ₹30 crore in backward integration facilities. The same note highlighted the utilisation ramp plan from 30% to 80% by FY28.

For investors, the near-term monitorables from the disclosures include execution of the capex program, rollout of new product lines (including BLDC fans), distribution expansion in new states, and progress on export contribution.

Key numbers at a glance

Additional financial context from annual highlights and recent halves

In another set of financial highlights shared in the material, Arham reported standalone gross revenue of ₹65.16 crore and consolidated gross revenue of ₹69.89 crore for the referenced year. The same highlights reported standalone net profit after tax of ₹5.95 crore and consolidated net profit after tax of ₹7.28 crore.

The company also disclosed that revenue from operations rose from ₹27.6 crore in H2 FY24 to ₹37.4 crore in H2 FY25, while net profit increased from ₹3.2 crore to ₹4.6 crore over the same period.

Analysis: why this earnings call mattered

Arham’s first earnings call mattered for two reasons. One, it tied strong H1 FY26 profitability to a defined operating playbook that relies on product mix, cost controls, and manufacturing integration. Two, it gave a time-bound scale ambition of ₹300 crore by FY28, backed by specific levers such as capex in sheet metal and injection moulding, higher utilisation targets, and higher brand spend.

The disclosures also clarified priorities. Arham said it has placed its earlier EV entry plan on hold, citing the evolving dynamics of the EV sector and a near-to-midterm expansion roadmap that it believes offers better opportunities. This indicates a sharper allocation of management attention and capital to the consumer electronics platform.

Conclusion

Arham Technologies closed H1 FY26 with ₹45.63 crore revenue from operations and a 123.48% rise in PAT to ₹5.90 crore, alongside improved margins. Management is now focused on backward integration, wider distribution, and a stepped-up brand strategy to support its ₹300 crore revenue ambition by FY28. The next checkpoints will be execution of announced capex, utilisation ramp-up, and progress in new markets, including early export avenues.