Affordable Robotic & Automation Limited — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Affordable Robotic & Automation Limited reported a strong Q3 FY26, marking a significant turnaround to profitability with consolidated revenue of 68 crores and PAT of 2.18 crores. The company achieved substantial cost reductions and secured new orders, contributing to a closing order book of 130 crores. Humro, the mobile robotics subsidiary, commenced revenue generation in the US and plans aggressive deployment, though past funding challenges for order fulfillment were noted.

Highlights

  • Consolidated Q3 FY26 revenue reached 68 crores, with PAT at 2.18 crores.

  • Nine-month standalone PAT turned positive at 94 lakhs, a significant turnaround from previous negative figures.

  • Achieved 30% reduction in material cost and employee cost, leading to 28% total expense reduction.

  • Secured 52 crores in new orders from new customers, accounting for 40% of total order bookings.

  • Humro delivered its first Atlas AC-2000 autonomous forklifts order to a large US-based logistics firm, with revenue already started.

Concerns

  • Past inability to fulfill a significant order (21 crores) due to funding issues and material supply delays.

  • Analyst concern regarding the slow scaling of the Indian business despite a large market.

  • Uncertainty around the timeline for revenue booking from the autonomy stack, despite a new investment.

Key financials

  1. Consolidated Q3 Revenue ₹68 Cr
  2. Consolidated Q3 EBITDA ₹7.33 Cr
  3. Consolidated Q3 PAT ₹2.18 Cr +116%YoY
  4. Consolidated Q3 Margin 10.7%
  5. Standalone 9M Revenue ₹60 Cr
  6. Standalone 9M PAT ₹0.94 Cr +127%YoY

What they filed

Q1 FY27: revenue down 51.5%, net profit down 33.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue41 35 84 19 24 −41%16 −54%50 −40%9 −52%
EBITDA-5 6 14 -2 4 +183%2 −66%10 −26%-3 −62%
Net profit-8 4 9 -4 4 +153%0 −92%6 −36%-5 −33%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹130 Cr

as of 2025-12-31 quantified

Composition

  • Humro Mobile Robots (Lease) (product) ₹8 Cr 6.2%

Cancellations & deferrals

  • cancelled: An order of 21 crores for robots was not fulfilled due to funding issues and inability to supply material on time.
The company's closing order book as of December 31, 2025, is 130 crores, with 52 crores from new customers. Humro has an additional 8 crores in lease agreements.

Source: Prepared remarks

Capital allocation

high confidence
  • M&A ARAPL Ras Private Limited (Humro) Investment · Announced · Consideration ₹[object Object] (preferential route)

    Strategic investment in autonomous vehicles and green energy sector, leveraging ARAPL's autonomy stack.

    Investment will increase ARAPL's shareholding in Humro and is intended to support Humro's growth and inventory needs.

    Sai Green is a very big company and they are into power plants and green energy. They have a large portfolio of investments in green energy and green sector and they have a lot of other investments in autonomous vehicles. They are investing 15 crores through preferential route; that's what we declared and their whole interest is in autonomous and green energy sector. ... So it will be for Ras. ... ARPL Ras Private Limited is currently 83% so by putting more 15 crore more our shareholding will increase.

Guidance & targets

Revenue

  • Indian Business Top Line Growth Revenue · next year onwards · Medium confidence 20-30%
    Quantifying number – top line we expect to grow by around 20 to 30% in the Indian business.

    — Milind Padole

  • Humro Monthly Revenue per Machine Revenue · ongoing · High confidence $2,500
    Ballpark, you can assume every equipment will give you around 2,500 dollars in monthly revenue.

    — Robinson

  • Humro Total Monthly Revenue Revenue · by March 2027 · High confidence $562,000
    So if I do 2500 into 225 that's around 562000 a month right at the end of the financial year that's correct.

    — Unknown Speaker C

  • Q4 FY26 Revenue (Standalone) Revenue · Q4 FY26 · Medium confidence 74-76 crores
    [Discussion in Hindi on historic Q3/Q4 numbers and confirmation that Q4 this year will be in similar range as historic 74-76 crores standalone and approximately 84 crores consolidated.]

    — Raj

  • Q4 FY26 Revenue (Consolidated) Revenue · Q4 FY26 · Medium confidence approximately 84 crores

    — Raj

Deployment

  • Humro Machine Deployment Deployment · by March 2027 · High confidence 200-225 machines
    We plan to deploy by March 2027 around 200-225 machines approximately.

    — Milind Padole

Profitability

  • Humro IRR Profitability · ongoing · High confidence 71%
    We are working on a 71% IRR when you look at unit economics. Details I don't have with me now, but we are working on a 71% IRR.

    — Robinson

  • Bottom Line Improvement Profitability · Q4 FY26 · High confidence improvement
    On revenue we will be at par or on the level of last year, but you can see improvement on the bottom line. Definitely there will be improvement on the bottom line.

    — Murthy

Market Share

  • Humro North America Forklift Market Share Market Share · next five years · Medium confidence 1-2%
    In the US market, forklifts sold annually are about 750,000 units. That is the North America market. We want to take 1-2% share in the next five years to start with.

    — Milind Padole

POC Conversion

  • Humro POC Conversion Rate POC Conversion · from here on · Medium confidence around 50%

    Previously 20-25% → around 50%

    POC converting into an order I would say is 20-25% as of now, but from here on POC converting into orders should be around 50%.

    — Robinson

Margin

  • IP's Recurring Charges Margin · ongoing · Medium confidence 10-15%
    So it will be approximately 10 to 15% yeah and it will keep increasing as and how we kind of progress there and as and how the credibility our credibility is established in the market as of now we have kept it very very minimal yeah but the benchmark is around 20 to 25% we have started with 10% now yeah for for all those outright purchases but eventually in a year's

    — Unknown Speaker B

What to watch in Q4 FY26

Humro Fundraising Progress

Next quarter
Current Talking to interested parties, closing in for funding for robot deployment.
Target Announcement of successful fundraise or clear funding plan.

Why it matters

Essential for deploying 200-225 robots by March 2027 and achieving revenue targets, addressing past funding-related order fulfillment issues.

We will you want me to take that up minute Yeah yeah yeah okay so yes we will raise the money and like I said we may not be able to get 100% of all the answers but the idea is to raise money definitely we have talk spoken to some interested parties and we will raise those money soon the the the investment could also come in the form of you know like a semi banker some investor taking up the role of a banker and all those stuff so yes as as on date we are talking to a couple of guys we are closing in and we should be able to hear something soon.

Risks & concerns

  • Funding for Robot Deployment and Inventory

    high

    The company previously failed to fulfill a 21 crore order due to funding and material supply issues. Future deployment of 200-225 Humro robots requires significant capital, and fundraising is ongoing, posing a risk to achieving deployment targets if not secured timely.

    Management acknowledged

  • Slow Scaling of Indian Business

    medium

    Analysts questioned the company's ability to scale revenue in the Indian market despite its size. Management attributed this to a strategic shift towards profitability and operational efficiency over volume in the short term, implying slower growth in this segment.

    Analyst acknowledged

  • Adoption Rate of Robotics Technology

    medium

    Management noted that even in the US, the penetration of sophisticated robotics is low (5-7%) due to 'change management' challenges, indicating a slower-than-expected market adoption which necessitates lease models to drive uptake.

    Management acknowledged

Q&A highlights

5 direct
Sai Green Investment Transparency and Potential Partial
Sai Green is a very big company and they are into power plants and green energy. They have a large portfolio of investments in green energy and green sector and they have a lot of other investments in autonomous vehicles. They are investing 15 crores through preferential route; that's what we declared and their whole interest is in autonomous and green energy sector.

Analyst questioned the background of Sai Green, its recent incorporation, and the rationale for its 15 crore investment, seeking transparency on the strategic alignment and potential impact.

Asked by Analyst (MSPL Capital)

Humro Market Opportunity and Scale Direct
In the US market, forklifts sold annually are about 750,000 units. That is the North America market. We want to take 1-2% share in the next five years to start with. So that's the potential and that's our aspiration – that we should be able to sell close to 1-2% of that market share.

Analyst pushed for quantifiable targets for Humro's business, and management provided a specific market share aspiration in the US forklift market.

Asked by Analyst (MSPL Capital)

Funding for Humro Robot Deployment Partial
We will you want me to take that up minute Yeah yeah yeah okay so yes we will raise the money and like I said we may not be able to get 100% of all the answers but the idea is to raise money definitely we have talk spoken to some interested parties and we will raise those money soon the the the investment could also come in the form of you know like a semi banker some investor taking up the role of a banker and all those stuff so yes as as on date we are talking to a couple of guys we are closing in and we should be able to hear something soon.

Analyst questioned the funding strategy for deploying 225 robots by March 2027, highlighting a critical capital requirement for future growth, to which management indicated ongoing fundraising efforts.

Asked by Unknown Speaker A

Indian Business Scaling Challenges Direct
This year we have made operations very light and profitable so that we can take larger volume in a more efficient way. We were restructuring this year and sharpening our operational efficiency so we can take future orders in a more sharper way.

Analyst challenged management on the inability to scale revenue in the Indian business despite the large market, prompting management to explain their strategic shift towards profitability and operational efficiency.

Asked by Pawan Kumar

Past Order Fulfillment Failure Direct
that was a order book for one person where we were not able to supply the material because of the fund raise and so we were not able to fulfill that order.

Analyst inquired about a specific 21 crore order that was not fulfilled, revealing past operational and funding challenges that led to the loss of a significant order.

Asked by Unknown Speaker G

Q4 FY26 Revenue Guidance Partial
On revenue we will be at par or on the level of last year, but you can see improvement on the bottom line. Definitely there will be improvement on the bottom line.

Analyst pressed for specific Q4 revenue guidance, which management provided qualitatively (similar to last year) but emphasized bottom-line improvement, indicating a focus shift.

Asked by Pawan Kumar

Humro Total Order Value Direct
Humro we have around 8 crores orders which are in a lease agreement for two years.

Clarified the specific value and nature (lease agreement) of Humro's current order book, providing a key metric for the subsidiary.

Asked by Jaydeep (Investor)

Order Book Discrepancy Direct
Total order book is 190 crores from which we have already delivered around 59 crores, so balance order in hand is around 130 crores.

Clarified the calculation of the total order book, resolving a potential confusion between gross orders and the net balance in hand.

Asked by Hardik Jain

3 min read 7 chapters

Detailed narrative

Company Overview and Strategic Journey

Affordable Robotic & Automation Limited (ARAPL) is a pioneer in Indian robotics, being the first listed company in the sector with 20 years of experience. The company boasts a 3.5 lakh sq ft facility, over 7,000 robot installations, and 14,000 car parks. Its journey includes establishing Global Sourcing in 2005, forming the mobile robotics subsidiary Humro in 2021, and migrating to the main board of BSE and NSE in 2024, reflecting a continuous growth trajectory.

Strong Financial Turnaround in Q3 & 9M FY26

The company achieved a significant turnaround to profitability in Q3 FY26. Consolidated Q3 revenue stood at 68 crores, with EBITDA of 7.33 crores and PAT of 2.18 crores, marking a 116% PAT growth year-on-year for the same nine-month period. For the nine months FY26 (standalone), turnover was 60 crores, EBITDA 6 crores, and PAT 94 lakhs, with PAT margin expanding to 9.8% from 0.8% previously, demonstrating robust financial recovery.

Enhanced Operational Efficiency and Cost Control

Improved financial performance was driven by strong operational efficiency, including a 30% reduction in material cost and employee cost. This was achieved by converting fixed employee costs to semi-variable, leading to an overall 28% reduction in total expenses. This strategic restructuring, tight cost control, and improved execution have set a stronger base for future growth, with a current focus on securing only profitable orders.

Robust Order Book and New Customer Acquisition

As of December 31, 2025, the company's closing order book was 130 crores. This includes an opening order book of 57 crores, 132 crores in new orders booked during the year, and 59 crores delivered. Notably, 52 crores of new orders were secured from new customers, accounting for 40% of the total new order bookings, indicating strong market acceptance and expansion.

Humro's Progress in Mobile Robotics and US Market Entry

Humro, the 83% owned mobile robotics subsidiary, has made significant strides, delivering its first Atlas AC-2000 autonomous forklifts to a large US-based logistics firm, with revenue already commencing. Humro has a confirmed order book of 8 crores for six mobile robots under a two-year lease agreement, expected to generate 35-40 lakhs per month. The subsidiary aims to deploy 200-225 machines by March 2027, targeting $2,500 monthly revenue per machine and a 71% IRR.

Strategic Investment and Autonomy Stack Monetization

Sai Green, a company with interests in green energy and autonomous vehicles, is investing 15 crores in ARAPL Ras Private Limited (Humro) via a preferential route. This strategic investment is aimed at leveraging ARAPL's developed autonomy tech stack, which the company plans to monetize as a product across various applications like autonomous vehicles, AGVs, and AMRs, both domestically and internationally. The company believes its cost advantage in India will be a key differentiator.

Challenges and Future Growth Outlook

The company acknowledged past challenges, including the inability to fulfill a 21 crore order due to funding and material supply issues. While the Indian business has faced scaling challenges, management is focused on profitable growth, targeting 20-30% top-line growth. For Humro, the slow adoption of robotics even in the US (5-7% penetration) necessitates lease models to drive market entry. The company is actively seeking funding for its planned robot deployments to ensure future growth.

This is an AI-generated summary of a publicly available earnings call transcript.
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