Arrow Greentech Limited Earnings Summary — Q4 FY2026
Arrow Greentech Reports Q4 Profit Softness Amidst Falling Operating Margins and Lower Sales Volume
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 110.2% sequentially in Q1 FY2027.
- Revenue of ₹88 Cr is 111.2% higher year-on-year.
- Revenue has compounded at 27.8% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹27 Cr is 151.2% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 55.6% annualised across the period.
- Operating margin stands at 40.9% in Q1 FY2027.
- Operating margin expanded by 665 bps year-on-year.
- Over the last two years operating margin has contracted by 154 bps.
- PBT margin is 41.3%.
- Expense growth of 89.8% remained below revenue growth of 111.2%.
- Operating profit of ₹36 Cr is 152.1% higher year-on-year.
- Operating leverage continues to improve.
- 3 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 80/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Accelerating | 88 | 42 | 56 | 61 | 42 | 57 | 55 | 65 | 66 | 51 |
| Expenses | Improving | 52 | 31 | 37 | 40 | 27 | 41 | 37 | 39 | 38 | 35 |
| Operating Profit | Volatile | 36 | 10 | 19 | 21 | 14 | 16 | 18 | 26 | 28 | 16 |
| Operating Margin | Improving | 40.9% | 24.8% | 34.3% | 34.0% | 34.3% | 28.0% | 32.5% | 40.6% | 42.4% | 30.9% |
| Other Income | Strong Uptrend | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 1 | 1 | 1 |
| Interest | Volatile | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | Stable | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 |
| Profit Before Tax | Volatile | 36 | 11 | 19 | 21 | 14 | 16 | 18 | 26 | 27 | 14 |
| Tax | Volatile | 9 | 3 | 6 | 5 | 3 | 4 | 5 | 7 | 7 | 4 |
| Net Profit | Volatile | 27 | 7 | 13 | 16 | 11 | 11 | 13 | 19 | 20 | 10 |
| Net Margin | Improving | 31.2% | 17.7% | 23.7% | 25.8% | 26.2% | 20.0% | 23.3% | 28.8% | 30.5% | 20.0% |
Key Takeaways
- Revenue for Q4 FY2026 saw a sharp decline of 27% YoY, dropping from 57.29 Cr to 41.78 Cr.
- Operating Profit Margins (OPM) compressed significantly to 24.82%, the lowest level seen in over two years.
- Net Profit followed the downward trend, falling 34.7% YoY as operating headwinds outweighed higher other income.
- Other income remained a significant contributor to the bottom line, rising to 2.38 Cr in the latest quarter.
- The balance sheet remains exceptionally strong with negligible borrowings of only 2 Cr against a net worth of over 230 Cr.
- Despite the quarterly dip, the company maintains a high long-term profit CAGR of 51% over the last 5 years.
- Promoter holding has witnessed a gradual reduction from approximately 70% to 64.8% over the recent years.
Management Guidance
Management is focusing on high-margin, technology-intensive green solutions and R&D for pharmaceutical mouth-dissolving strips.
Sentiment Shift
Deteriorating
The transition from a record-breaking FY25 to a sluggish Q4 FY2026 indicates a loss of momentum in sales and significant margin pressure.
Outlook
The company faces short-term headwinds as evidenced by the revenue decline in the TTM period, but its niche position in patented water-soluble films provides a defensive moat for long-term green packaging demand.
From the Annual Report (Key Quotes)
“Arrow Greentech is India's largest manufacturer of water-soluble films (PVA/PVOH).”
“The vision is clearly anchored in high-margin, technology-intensive green solutions.”
“Leadership focuses heavily on R&D and intellectual property, evidenced by the tracking of patent grants.”
Official Quarterly Documents
This summary is AI-generated from Arrow Greentech Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.