1. At a Glance – Blink and You’ll Miss the Madness
Arfin India Ltd is currently valued at ₹1,270 crore market cap, trading at ₹75, after delivering a 36.9% return in 3 months and a jaw-dropping 144% return in one year. Sounds sexy, right? Now pause. The P/E is ~150, ROE is 7.2%, and net margins are barely ~1.5%. Welcome to Indian mid-cap metallurgy, where hope trades at a premium and cash flows play hide and seek.
Latest Q3 FY26 numbers (Dec 2025) show ₹196 Cr revenue (+8.9% QoQ) and ₹4.82 Cr PAT (+59% QoQ). EPS for the quarter came in at ₹0.29, the best in recent history. Debt stands tall at ₹149 Cr, while interest coverage is a fragile 1.73×.
So what’s the market celebrating? Orders, expansion dreams, a Japanese strategic partner, and a belief that aluminium is the new gold. But is this a structural rerating story or just momentum doing bhangra? Let’s investigate.
2. Introduction – Aluminium, Ambition, and Audacity
Founded in 1992, Arfin India Ltd sits quietly in Gujarat, melting, alloying, casting, and supplying aluminium products to steelmakers, power utilities, and auto ancillaries. It is not Hindalco. It does not want to be Hindalco. It wants to be the Swiss Army knife of aluminium intermediates.
Over the last decade, Arfin has moved from being a low-margin trading-heavy entity to a more manufacturing-oriented, capacity-driven business. Revenue growth has been decent, profitability volatile, and cash flows… let’s call them “emotionally unstable.”
FY25 ended with ₹616 Cr revenue and ₹9 Cr PAT. Not blockbuster numbers, but respectable for a niche alloy player. Then Q3 FY26 happened — margins expanded, volumes surged, and the stock price went parabolic.
But remember: this is a commodity-linked business with
thin margins, heavy working capital, and debt-funded growth. So before lighting diyas for management, let’s understand what they actually do.
3. Business Model – WTF Do They Even Do?
Think of Arfin as a metal kitchen. Aluminium goes in. Specialised aluminium products come out.
Key Revenue Buckets:
- Aluminium Wire Rods (23%) – input for conductors and cables
- Aluminium Alloy Ingots (25%) – automotive & industrial use
- Aluminium Deoxidisers (21%) – steel plants’ oxygen killers
- Cored Wires (9%) – metallurgical additives
- Ferro Alloys & Inoculants (15%+) – niche, value-added chemistry
- Conductors & Cables (8%) – power transmission exposure
They operate 4 plants at Chhatral, Gujarat, with ~71,000 MTPA installed capacity. Customers include steel producers, power equipment companies, and export clients across Japan, Middle East, Vietnam, South America.
The catch?
- Top 5 clients = 54% of revenue
- Working capital heavy
- Margin depends on aluminium prices + operating leverage
It’s not glamorous. It’s industrial plumbing. But when volumes rise, profits jump disproportionately — exactly what Q3 showed.
4. Financials Overview – Numbers Don’t Lie, But They Smirk
Quarterly Comparison (Standalone, ₹ Cr)
| Metric | Q3 FY26 | Q3 FY25 | Q2 FY26 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 196.41 | 180.37 | 128.04 | +8.9% | +53.4% |
| EBITDA | 13.55 | 10.94 | 8.82 | +23.9% | +53.6% |
| PAT | 4.82 | 3.03 | 2.05 | +59.1% | +135% |
| EPS (₹) | 0.29 | 0.18 | 0.12 | +61% | +142% |
Result Type Detected: Quarterly Results
