How has been the historical performance of Arman Holdings?

Revenue and Operating Performance

Over the past seven years, Arman Holdings’ net sales have demonstrated inconsistency, peaking at ₹4.39 crores in March 2024 before declining to ₹3.67 crores in March 2025. The company’s total operating income closely mirrors net sales, as there has been no other operating income reported during this period. Notably, the fiscal year 2021 saw a significant dip in sales to ₹1.57 crores, contrasting sharply with other years where sales hovered around ₹4 crores.

Cost management reveals that the purchase of finished goods constitutes the largest expenditure, with figures ranging from ₹1.44 crores in 2021 to ₹5.40 crores in 2025. The company’s inventory adjustments have fluctuated, with a notable decrease in stocks in 2025 amounting to ₹1.91 crores, which may indicate efforts to optimise working capital. Employee costs have remained stable at approximately ₹0.06 to ₹0.08 crores annually, reflecting controlled overheads.

Operating profit margins have been thin, with the company reporting marginal operating profits in most years except for a slight operating loss in 2025. The operating profit margin excluding other income declined to negative 0.27% in the latest fiscal year, down from a peak of 0.96% in 2023. Profit after tax margins have similarly been modest, with a negative margin of 0.54% in 2025 following positive margins around 0.46% to 0.80% in prior years.

Balance Sheet and Financial Stability

Arman Holdings maintains a consistent equity capital base of ₹5.21 crores with a face value of ₹10 per share throughout the analysed period. Shareholders’ funds have shown a gradual increase from ₹6.27 crores in 2020 to ₹6.28 crores in 2025, supported by reserves that fluctuated but generally increased from ₹1.03 crores in 2019 to ₹1.07 crores in 2025.

The company’s total liabilities have decreased slightly from ₹6.50 crores in 2021 to ₹6.07 crores in 2025, with no long-term or short-term borrowings reported, indicating a debt-free status. Deferred tax liabilities have been negative, reflecting deferred tax assets that have marginally increased over time.

On the asset side, total assets have remained relatively stable, around ₹6.07 to ₹6.52 crores, with non-current investments constituting a significant portion, ranging from ₹1.65 crores to ₹2.60 crores. Current assets have varied, with inventories showing a notable decline from ₹3.59 crores in 2021 to ₹2.03 crores in 2025, while sundry debtors have fluctuated considerably, peaking at ₹4.48 crores in 2024 before falling to ₹1.78 crores in 2025.

Cash and bank balances have remained minimal, consistently below ₹0.10 crores, and the company has reported no cash flow from operating, investing, or financing activities during the period, indicating limited liquidity movement.

Profitability and Earnings Per Share

Profit after tax has been marginal, with the company posting a loss of ₹0.02 crores in 2025 after several years of small profits ranging between ₹0.02 crores and ₹0.03 crores. Earnings per share (EPS) have mirrored this trend, declining to a negative ₹0.04 in 2025 from positive EPS of ₹0.04 to ₹0.06 in previous years. Diluted EPS figures show some variability, with a notable spike to ₹0.43 in 2025, which may be influenced by changes in share dilution or accounting adjustments.

Operating profit margins have remained under pressure, with the latest fiscal year showing a negative margin, reflecting the challenges in maintaining profitability amid fluctuating sales and rising costs. The company’s gross profit margin has also declined from over 1% in earlier years to a negative margin in 2025, underscoring the need for operational improvements.

Despite these challenges, Arman Holdings has maintained a stable book value per share, which stood at ₹12.05 in 2025, indicating a relatively steady net asset value for shareholders.

Outlook and Considerations

Arman Holdings’ historical performance reveals a company navigating through fluctuating revenues and tight profit margins while maintaining a conservative financial structure free of debt. The absence of cash flow activity suggests limited operational expansion or investment during the period, which may impact growth prospects. Investors should weigh the company’s stable equity base and asset quality against its modest profitability and sales volatility when considering its future potential.

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