🔍 At a Glance

Affordable Robotic & Automation Ltd (ARAPL) posted 7% standalone revenue growth in FY25, with EBITDA up 12% despite a minor dip in PAT due to higher finance costs.
But wait — consolidated results showed a loss of ₹11.64 Cr due to planned investment burn at its RaaS subsidiary.

💡 Key Highlights:

• ✅ ₹160 Cr standalone revenue (↑7%)
• ✅ ₹14.4 Cr standalone EBITDA (↑12%)
• ✅ ₹5.98 Cr standalone PAT
• 🔻 ₹11.64 Cr consolidated loss (vs ₹6.42 Cr PAT last year)
• 🚀 30 robots exported to the US (RaaS model)
• 🌍 Europe expansion begins post USD 10–20M milestone in US

CMP: ₹420. Is this the start of India’s own automation-export boom… or an overengineered story?

🏭 About the Company

• Name: Affordable Robotic and Automation Ltd (ARAPL)
• Founded: 2010
• Listed Since: 2018
• Business Lines:
  • Automated Car Parking Systems
  • Automotive Assembly Line Automation
  • Warehouse & RaaS Robotics
• Geographies: India, USA, EU (soon)

🧑‍💼 Key Managerial Personnel

• Chairman & MD: Prashant K. Shinde
• Company Secretary: Ruchika Shinde
• Group Entity: ARAPL RaaS Pvt. Ltd – subsidiary focused on Robotics-as-a-Service (RaaS)

📊 Standalone FY25 Financials

📉 Slight drop in PAT due to higher finance costs — investments were made in working capital & capex.

📉 Consolidated FY25 Financials

❗ The consolidated loss is due to the RaaS subsidiary’s investment-heavy phase, which management says is deliberate and strategic.

🤖 RaaS Update: Robots-as-a-Service

• 15 robots shipped to USA; 15 more ready for dispatch
• 17 US clients signed pay-per-use contracts
• Annual capacity for 300 robots now in place
• Manufacturing setup: Fully established for in-house batch production
• European Expansion: Awaiting certifications by Dec 2025

🧪 The POC (proof of concept) phase is mostly done. Now begins scale-up in the US.

🏗️ Order Book

• 📦 ₹80 Cr confirmed orders
• 📑 ₹20 Cr in advanced pipeline

Verticals showing strong traction:

• Automotive line building
• Smart warehousing
• MLCP (Multilevel Car Parking Systems)

🚗 Urban infra demand = tailwind. Government smart city projects = catalyst?

🧾 Margin Management Strategy

• Raw materials up (₹110 Cr+ vs ₹98 Cr last year)
• Employee costs & expenses trimmed on standalone level
• Gross margin pressures being absorbed to maintain market share
• Long-term goal: improve margins via:
  • Value engineering
  • Better sourcing
  • Internal automation

🧠 EduInvesting Take

ARAPL’s two identities are clashing right now:

1. Cashflow-positive, hardware-integrator India business — predictable, stable, boring (but profitable).
2. Bold moonshot into the US with Robotics-as-a-Service — cash burning, high-stakes, globally scalable.

The consolidated losses will spook the uninitiated. But look closer, and this is a classic “loss today, margin tomorrow” story.

🔍 The startup-ish RaaS biz may unlock operating leverage if:

• Unit economics work in the US
• Funding round closes in June
• Europe opens up post-certification

But if they fail to secure market share before competition steps in, this could become a 🚧 warehouse of broken dreams.

📈 Forward-Looking Valuation (FV)

Let’s play with numbers (standalone only):

• FY26 expected revenue: ₹185 Cr
• EBITDA margin target: 10% → EBITDA = ₹18.5 Cr
• Multiple: 12x (smallcap auto/infra hybrid)
• Enterprise Value (EV): ₹222 Cr
• Net debt: ~₹25 Cr (assumed post capex)
• Equity Value: ₹197 Cr
• Shares: ~0.75 Cr

👉 FV = ₹197 Cr / 0.75 Cr = ₹262 per share

😬 CMP = ₹420 — already factoring in full RaaS success + global traction.

⚠️ Risks & Red Flags

• 🧨 High burn rate at RaaS; profitability uncertain
• 🚦 Regulatory hurdles for EU entry
• 💸 Currency risk (exports in USD)
• 🕓 Long B2B sales cycles; receivables could rise
• 🔋 Robotics segment needs capital before it returns cash

Tags: ARAPL FY25 Results, Affordable Robotic stock, warehouse automation India, RaaS robotics, FY25 consolidated loss, ARAPL RaaS Pvt Ltd, car parking automation India, automation stocks India

🗓️ Published: May 28, 2025
✍️ By: Prashant Marathe