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ARC Insulation & Ins Overview

1. Business Overview

ARC Insulation & Insulators Ltd. (ARCIIL) is engaged in the manufacturing and sale of insulation products, primarily utilizing plastic-based materials. As a company in the "Plastic Products" sector, its core business model revolves around producing various types of insulation (e.g., thermal, acoustic) for applications across residential, commercial, and industrial sectors. The company generates revenue by supplying these insulation materials to builders, contractors, industrial clients, and potentially directly to consumers, catering to the growing demand for energy-efficient and comfortable living/working environments.

2. Key Segments / Revenue Mix

Given the company name and industry, ARCIIL's primary business segment is the production and sale of insulation materials. While specific revenue breakdowns are not available, potential internal segmentation could be by product type (e.g., specialized thermal insulation, acoustic panels), raw material used (e.g., EPS, XPS, PUF foams), or application area (e.g., building envelope insulation, HVAC insulation, industrial process insulation).

3. Industry & Positioning

ARCIIL operates within the competitive Indian insulation market, which is a sub-segment of the broader building materials and plastic products industries. This market is characterized by increasing demand driven by urbanization, infrastructure development, and growing awareness of energy efficiency. The industry includes both organized players offering specialized products and a fragmented unorganized sector. Without specific market share data, ARCIIL's positioning cannot be definitively determined; it could range from a niche specialist to a regional market player, competing on factors such as product quality, price, distribution reach, and technical support against domestic and international peers.

4. Competitive Advantage (Moat)

Without specific company details, potential competitive advantages (moats) for ARCIIL could include:

Cost Efficiency: Achieving lower production costs through efficient manufacturing processes, economies of scale, or favorable raw material procurement.

Product Specialization/Quality: Developing differentiated or superior-performing insulation products that cater to specific market needs or standards.

Distribution Network: A well-established and robust network that ensures wide availability and timely delivery of products, particularly in the fragmented Indian market.

Brand Recognition: Building a trusted brand name among architects, builders, and industrial clients for reliability and performance.

Concrete evidence for any of these moats would require further information.

5. Growth Drivers

Key factors that can drive growth for ARCIIL over the next 3-5 years include:

Infrastructure & Construction Boom: Continued government spending on infrastructure and robust growth in residential and commercial construction across India.

Energy Efficiency Norms: Stricter implementation and increasing awareness of energy conservation building codes (e.g., ECBC) driving demand for high-performance insulation.

Urbanization & Affordability: Rapid urbanization leading to more construction projects, coupled with increasing disposable incomes allowing for better building quality.

Industrial Expansion: Growth in various manufacturing sectors requiring insulation for process efficiency and energy conservation.

Climate Awareness: Increasing focus on reducing carbon footprint and improving indoor comfort, boosting demand for effective insulation.

6. Risks

Raw Material Price Volatility: Prices of plastic polymers, derived from petrochemicals, are subject to global oil price fluctuations, impacting production costs and margins.

Intense Competition: Competition from domestic organized and unorganized players, as well as potential imports, can exert pressure on pricing and market share.

Economic Slowdown: A downturn in the broader Indian economy could adversely affect construction activity and industrial demand for insulation products.

Regulatory Changes: New environmental regulations regarding plastic production, disposal, or building material standards could necessitate costly adjustments.

Technological Obsolescence: Emergence of new, more efficient, or environmentally friendly insulation materials could displace existing product lines.

7. Management & Ownership

As is common for many Indian companies, ARCIIL is likely to be promoter-driven, with the founding family or individuals holding a significant ownership stake and playing a key role in management. Without specific public records, details regarding the quality of management, board structure, or exact ownership percentages cannot be determined.

8. Outlook

The outlook for ARCIIL is influenced by a combination of tailwinds and potential headwinds. On the bull side, India's robust construction sector, increasing emphasis on energy efficiency, and ongoing infrastructure development provide a strong growth runway for insulation products. Regulatory pushes for sustainable building practices could also significantly boost demand for ARCIIL's offerings. However, the company operates in a competitive market where raw material price volatility, particularly for plastic derivatives, can impact profitability. An economic slowdown could dampen demand, and continuous innovation is required to fend off competitive threats and adapt to evolving building standards. ARCIIL's ability to manage input costs, innovate effectively, and maintain a strong distribution network will be crucial for sustained performance.

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ARC Insulation & Ins Key Financials

Market Cap ₹60 Cr.

Stock P/E 7

P/B 0.9

Current Price ₹58.2

Book Value ₹ 64.2

Face Value 10

52W High ₹145

Dividend Yield 0%

52W Low ₹ 38.6

ARC Insulation & Ins Share Price

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Volume
Price

ARC Insulation & Ins Quarterly Price

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ARC Insulation & Ins Peer Comparison

ARC Insulation & Ins Quarterly Results

#(Fig in Cr.)
Net Sales
Other Income
Total Income
Total Expenditure
Operating Profit
Interest
Depreciation
Exceptional Income / Expenses
Profit Before Tax
Provision for Tax
Profit After Tax
Adjustments
Profit After Adjustments
Adjusted Earnings Per Share

ARC Insulation & Ins Profit & Loss

#(Fig in Cr.) Mar 2022 Mar 2023 Mar 2024 Mar 2025 TTM
Net Sales 12 24 28 33
Other Income 0 0 0 0
Total Income 12 24 29 33
Total Expenditure 10 20 19 20
Operating Profit 1 5 9 13
Interest 0 1 0 1
Depreciation 1 1 1 1
Exceptional Income / Expenses -0 0 0 0
Profit Before Tax 0 4 8 12
Provision for Tax 0 1 2 3
Profit After Tax 0 3 6 9
Adjustments 0 0 0 0
Profit After Adjustments 0 3 6 9
Adjusted Earnings Per Share 0.3 3.9 8.9 11.8

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR 18% 40% 0% 0%
Operating Profit CAGR 44% 135% 0% 0%
PAT CAGR 50% 0% 0% 0%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR NA% NA% NA% NA%
ROE Average 45% 54% 42% 42%
ROCE Average 53% 53% 42% 42%

ARC Insulation & Ins Balance Sheet

#(Fig in Cr.) Mar 2022 Mar 2023 Mar 2024 Mar 2025
Shareholder's Funds 4 6 12 25
Minority's Interest 0 0 0 0
Borrowings 2 3 2 3
Other Non-Current Liabilities -0 0 0 0
Total Current Liabilities 6 9 8 11
Total Liabilities 12 18 22 39
Fixed Assets 5 5 6 13
Other Non-Current Assets 1 1 4 4
Total Current Assets 7 12 12 22
Total Assets 12 18 22 39

ARC Insulation & Ins Cash Flow

#(Fig in Cr.) Mar 2022 Mar 2023 Mar 2024 Mar 2025
Opening Cash & Cash Equivalents 0 0 0 1
Cash Flow from Operating Activities 2 1 9 0
Cash Flow from Investing Activities -1 -2 -5 -7
Cash Flow from Financing Activities -1 1 -3 7
Net Cash Inflow / Outflow 0 -0 1 -0
Closing Cash & Cash Equivalent 0 0 1 1

ARC Insulation & Ins Ratios

# Mar 2022 Mar 2023 Mar 2024 Mar 2025
Earnings Per Share (Rs) 0.35 3.85 8.91 11.81
CEPS(Rs) 1.21 4.91 10.16 13.1
DPS(Rs) 0 0 0 0
Book NAV/Share(Rs) 5.42 9.27 18.17 34.78
Core EBITDA Margin(%) 11.17 17.9 31.83 38.87
EBIT Margin(%) 6.69 16.96 30.14 37.35
Pre Tax Margin(%) 2.48 14.71 28.67 35.41
PAT Margin (%) 2.07 11 21.45 26.18
Cash Profit Margin (%) 7.2 14.02 24.48 29.04
ROA(%) 1.97 17.47 30.23 27.9
ROE(%) 6.43 52.45 64.93 45.47
ROCE(%) 9.9 41.83 63.81 52.65
Receivable days 67.09 65.75 70.46 92.23
Inventory Days 103.92 57.77 63.44 74.15
Payable days 163.01 89.35 113.38 134.12
PER(x) 0 0 0 0
Price/Book(x) 0 0 0 0
Dividend Yield(%) 0 0 0 0
EV/Net Sales(x) 0.5 0.29 0.13 0.38
EV/Core EBITDA(x) 3.89 1.45 0.39 0.95
Net Sales Growth(%) 0 107.79 18.65 14.98
EBIT Growth(%) 0 426.62 110.82 42.49
PAT Growth(%) 0 1006.12 131.38 40.33
EPS Growth(%) 0 1006.03 131.38 32.58
Debt/Equity(x) 1.1 0.83 0.22 0.24
Current Ratio(x) 1.12 1.34 1.4 2.04
Quick Ratio(x) 0.59 0.86 0.72 1.32
Interest Cover(x) 1.59 7.52 20.58 19.27
Total Debt/Mcap(x) 0 0 0 0

ARC Insulation & Ins Shareholding Pattern

# Sep 2025 Mar 2026
Promoter 64.11 64.51
FII 2.33 1.52
DII 9.12 3.93
Public 24.44 30.05
Others 0 0
Total 100 100

ARC Insulation & Ins News

ARC Insulation & Ins Pros & Cons

Pros

  • Stock is trading at 0.9 times its book value
  • Company has a good return on equity (ROE) track record: 3 Years ROE 54%
  • Company is almost debt free.

Cons

  • Debtor days have increased from 113.38 to 134.12days.
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