Affordable Robotic & Automation Ltd (ARAPL) was incorporated in 2009 and holds the distinction of being India's first robotic company listed on the BSE. The company specializes in providing turnkey automation solutions tailored for industrial automation needs. Based in Pune, Maharashtra, ARAPL primarily serves clients across the automotive, non-automotive, general industries, and government sectors.
ARAPL delivers comprehensive automation solutions, including the design and integration of robotic systems for welding lines, along with material handling automation services. The company has also ventured into automated car parking systems. Its extensive product portfolio encompasses line automation, assembly line solutions, conveyor systems, robotic inspection stations, pick and place systems, gantry systems, auto assembly stations, robotic welding cells and lines, various welding fixtures, SPMs (Special Purpose Machines) for welding, pneumatic and hydraulic systems, and jigs, gauges, and fixtures.
The company has demonstrated significant operational scale, having installed over 5,000 robots and 10,000 car parking systems over the past decade. ARAPL has cultivated a diverse customer base that extends across India, China, and other regions in Asia, indicating a growing international presence.
ARAPL operates from a 8,442 square meter assembly facility that houses its in-house software development, technology hubs, machinery spares, and employee amenities. In FY 2017-18, the company expanded its service offerings to include secondary packaging solutions, specifically targeting the FMCG industry with automated container packaging systems.
As of recent market data, ARAPL has a market capitalization of approximately ₹556 crores. It's important to note that market cap figures can vary across different sources, with some reporting figures around ₹438 crores as of April 17, 2025.
ARAPL's recent financial performance has presented a mixed picture. For the full fiscal year ended March 2025, the company reported a net loss of ₹11.65 crores. This contrasts with a net profit of ₹6.43 crores recorded in the previous fiscal year. Sales experienced a marginal decline of 0.33%, amounting to ₹162.56 crores for FY25, down from ₹163.10 crores in FY24.
In Q4 FY25, the company's net profit saw a substantial decrease of 90.73%, falling to ₹2.30 crores compared to ₹24.82 crores in the corresponding quarter of the previous year. Sales for Q4 FY25 also decreased by 20.46% to ₹84.42 crores from ₹106.13 crores in Q4 FY24.
However, there were positive developments in Q3 FY25, where the company reported a significant 38% increase in net sales to ₹78.70 crores. Revenue grew from ₹43.96 crores in Q2 FY25 to ₹78.70 crores in Q3 FY25, reflecting an average quarterly increase of 44.1%. Despite this revenue growth in Q3 FY25, the company still incurred a net loss of ₹13.95 crores.
- Revenue (TTM): ₹269.61 crores
- Current Share Price: Trading in the range of ₹400-450 (based on recent data)
- 52-week High: ₹845.80
- 52-week Low: ₹350
- P/E Ratio: -42.69 (Negative due to reported losses)
- P/B Ratio: 4.42
- Promoter Holding: 55.6%
The company has secured a robust order book valued at USD 4 million and is actively pursuing expansion into European markets as a core component of its long-term growth strategy. Recent FY25 results highlighted strategic expansion plans within the US, including the development of capacity for 300 robots and a planned entry into European markets.
ARAPL's subsidiary, ARAPL RaaS, has commenced deliveries of autonomous electric vehicles to US warehousing clients. This initiative targets a substantial market share within the estimated $300 billion warehousing sector.
ARAPL's subsidiary, ARAPL RaaS, has successfully developed driverless electric forklifts and pallet jacks, representing significant advancements in automation technology. Recent corporate developments include the signing of an MOU with Mold-Tek for collaborative engineering, manufacturing, and marketing activities across the USA, Europe, and India. Furthermore, the subsidiary ARAPL RaaS has adopted 'Humro' as its brand name and initiated the trademark registration process for this new identity.
ARAPL presents a scenario with mixed fundamentals. While the company has shown a 0% annual revenue growth, a pre-tax margin of -6%, and a Return on Equity (ROE) of -11%, it maintains a reasonable debt-to-equity ratio of 20%, suggesting a generally healthy balance sheet structure.
Key challenges identified include a low interest coverage ratio, a low Return on Equity (ROE) of -1.07% over the last three years, and high debtor days, averaging 191 days. Additionally, promoter holding has seen a decrease of 5.83% over the past three years.
Despite current profitability challenges, the company's strategic focus on international expansion, its commitment to innovation in automation technology, and its established market position within industrial automation offer potential avenues for future growth. The increasing demand for automation solutions across various industries, coupled with ARAPL's experience in robotic systems, could support its future growth trajectory. However, potential investors should conduct thorough due diligence, carefully considering the company's current financial performance and operational challenges.
