ARC Insulation  IPO GMP & Subscription status

Core Business & Overview

Incorporated: September 10, 2008, in Bishnupur, West Bengal

Arc Insulation & Insulators Limited specializes in manufacturing Glass Fiber Reinforced Polymer (GFRP) and Fiber Reinforced Polymer (FRP) composite products. These materials include rebars, tubes, sheets, grating walkways, fencing, pipes, and other industrial-grade FRP solutions.

These high-performance, corrosion-resistant alternatives to steel rebars serve sectors such as infrastructure, energy, power, chemical, and marine industries.

Strengths

1. Strong Growth Trajectory: Exceptional year-over-year increases in both revenue (108.86%) and profitability (210.23%) in FY 2023, highlighting operational momentum.
2. High-Quality Product Portfolio: Offering corrosion-resistant, high-strength GFRP/FRP products suitable for demanding infrastructure and industrial applications.
3. Firm Financial Position: Healthy EBITDA margin (~29%), and robust net worth growth (~18%), indicative of improving operational efficiency and asset utilization.

Risks

1. Significant Borrowing / Open Charges:
   • Substantial open charges (~₹18.29 crore) could impact liquidity or credit standing.
   • Major lender: State Bank of India; the debt exposure is material relative to capital base.
2. Market Concentration & Client Base Uncertainty:
   • Lack of clarity around its client concentration or diversification.
   • Dependence on GFRP/FRP niche markets could expose the company to sector-specific cyclical risks.
3. Unlisted Status & Limited Disclosure:

The company remains unlisted, which may limit its access to capital markets and reduce transparency for investors or creditors

Financial Performance Overview (₹ in Crore)

Fiscal Year	Revenue	Profit	Assets
FY 2023	23.98	2.64	18.27
FY 2024	28.45	6.10	22.42
FY 2025	32.72	8.56	39.29

Revenue

• FY 2023: ₹23.98 Cr → FY 2025: ₹32.72 Cr

Growth shows strong demand and expanding business operations.

Profit

• FY 2023: ₹2.64 Cr → FY 2025: ₹8.56 Cr

Profit has tripled in 3 years, showing better efficiency and cost management.

Assets

• FY 2023: ₹18.27 Cr → FY 2025: ₹39.29 Cr

Assets more than doubled, meaning the company is investing heavily in expansion and strengthening its base.

✅ Pros

• Strong revenue and profit growth over the last 3 years.
• Expanding assets, indicating business scale-up.
• Specialized product portfolio (FRP/GFRP) with growing demand.
• Healthy EBITDA margins (~29%) reflect operational efficiency.
• IPO proceeds to reduce debt and fund expansion.

❌ Cons

• High debt exposure with open charges of ~₹18 Cr.
• Limited disclosure as an unlisted SME company.
• Market niche concentration may limit diversification.
• Dependency on infrastructure and industrial cycles.
• Smaller scale compared to listed industry peers.