Arrow Greentech's Q1 FY26: Margins Rise Amid Revenue Adjustments 📈
Hey there, finance enthusiasts! Let’s dive into the latest financial update from Arrow Greentech Limited (ARROWGREEN), a company known for its innovative solutions in water-soluble films, security products, and even pharmaceuticals through its Mouth Dissolving Strips (MDS) segment. The company has just shared its business performance for the first quarter of fiscal year 2026 (Q1 FY26), covering the period ending June 2025.
While the company saw some adjustments in its top-line figures compared to previous quarters, the good news lies in its improved profitability margins. Let’s break down the numbers:
Q1 FY26 Performance Snapshot
Arrow Greentech reported a revenue from operations of Rs. 416 Million for Q1 FY26. This marks a decrease of 27% compared to the previous quarter (Q4 FY25, which saw Rs. 573 Million) and a more significant 37% drop year-over-year (compared to Q1 FY25’s Rs. 661 Million). Despite this, the company showed strong control over its costs, which led to a healthier margin profile.
Here’s a quick look at the key financials:
| Particulars (Rs. Mn) | Q1 FY26 | Q4 FY25 | Q-o-Q Change | Q1 FY25 | Y-o-Y Change | FY25 (Annual) |
|---|---|---|---|---|---|---|
| Revenue from Operations | 416 | 573 | -27% | 661 | -37% | 2434 |
| Total Revenue | 416 | 573 | -27% | 661 | -37% | 2434 |
| Gross Profit | 236 | 282 | -16% | 380 | -38% | 1313 |
| Gross Profit Margin (%) | 56.8% | 49.1% | 57.5% | 54.0% | ||
| EBITDA | 142 | 160 | -11% | 281 | -49% | 883 |
| EBITDA Margin (%) | 34.2% | 28.0% | 42.4% | 36.3% | ||
| Profit before Tax | 143 | 157 | -9% | 271 | -47% | 860 |
| Profit After Tax | 109 | 114 | -4% | 202 | -46% | 630 |
| PAT Margin (%) | 25.1% | 19.3% | 30.1% | 25.3% | ||
| EPS (As per Profit after Tax) | 7.21 | 7.58 | 13.36 | 41.83 |
Segment Performance: A Closer Look
The Hightech Product segment, which includes security products, saw a revenue of Rs. 344 Million in Q1 FY26. This is a 32% quarter-on-quarter (QoQ) decline from Rs. 503 Million in Q4 FY25 and a 45% year-on-year (YoY) decline from Rs. 621 Million in Q1 FY25. On the other hand, the Green Products segment showed resilience, increasing its revenue by 3% QoQ to Rs. 72 Million (from Rs. 70 Million in Q4 FY25) and impressively grew by 80% YoY from Rs. 40 Million in Q1 FY25. This indicates a strong momentum in their environmentally friendly offerings.
Mr. Shilpan Patel, Chairman & MD, highlighted the company’s focus on high-tech security products and innovative solutions, along with the steady growth in their Green Product business. He emphasized their R&D capabilities and commitment to sustainability as core pillars for long-term vision.
Arrow Greentech’s Core Business & Outlook
Arrow Greentech is recognized as the largest manufacturer of Water Soluble Films (WSF) in India, a crucial component for eco-friendly packaging and various industrial applications. The global WSF market is projected to reach $5,586 Million by 2029, growing at a CAGR of 5.8% (Source: General market data on WSF, often cited in industry reports). This growth trend bodes well for Arrow Greentech’s core business.
Beyond films, the company holds a strong portfolio of 27 granted patents across the globe and 40 registered trademarks, underscoring its commitment to intellectual property and innovation in areas like health (Mouth Dissolving Strips), hygiene, packaging, security, and printing. Their venture into Mouth Dissolving Strips via Avery Pharmaceuticals, which began commercial production in August 2022, is a key growth area with long-term contracts for export markets.
While Q1 FY26 saw some revenue recalibration, the notable improvement in profit margins (PAT margin climbed to 25.1% from 19.3% QoQ) and strategic focus on high-growth areas like Green Products and Mouth Dissolving Strips demonstrates Arrow Greentech’s adaptive strategy. Investors will be keen to watch how these strategic initiatives translate into sustained growth in the coming quarters. ✨
Stay tuned for more updates on market movers! 👇
source: Corporate Announcement
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