At a glance:
Arabian Petroleum Ltd (NSE: ARABIAN) just dropped its full-year FY25 results and boardroom decisions — and it’s a spicy cocktail of solid profit growth, multiple auditor appointments, and a ₹1,246 lakh cash bounce-back from the hellhole of negative flow last year. Revenue hit ₹285 Cr, net profit grew 34%, and the company added a UAE-based subsidiary in the mix. Also, new auditors everywhere. Secretarial? ✅ Internal? ✅ Cost? ✅ Someone call a CA-themed Avengers.
🔍 FY25 Financial Highlights – Standalone
| 📊 Particulars | FY25 (₹ in lakhs) | FY24 (₹ in lakhs) | YoY Growth |
|---|---|---|---|
| Revenue from Operations | 28,524.66 | 26,185.44 | ✅ +9% |
| EBITDA (approx, post adjustments) | ~1,644.41 | ~1,180.00 | ✅ +39% |
| Profit Before Tax (PBT) | 1,220.16 | 915.86 | ✅ +33% |
| Net Profit (PAT) | 912.43 | 680.50 | ✅ +34% |
| EPS (Basic & Diluted) | ₹9.06 | ₹8.24 | ✅ Up |
| Cash Flow from Operations | ₹1,246.29 | -₹905.88 | 🤯 Turnaround! |
✅ Exceptional Item: ₹74.39 lakh — possibly some write-off or one-time adjustment.
🧮 Consolidated FY25 Snapshot (Including Arzol Petroleum Trading FZE – UAE)
| 📊 Consolidated Metrics | FY25 (₹ in lakhs) | FY24 (₹ in lakhs) |
|---|---|---|
| Revenue | 28,627.60 | 26,275.92 |
| Profit Before Tax (PBT) | 1,216.16 | 915.86 |
| Net Profit | 908.44 | 680.50 |
| EPS (Consolidated) | ₹9.02 | ₹8.24 |
| Consolidated Cash Flow (Ops) | ₹1,234.66 | -₹905.88 |
🤝 The UAE subsidiary didn’t add much materially, but having “Petroleum Trading FZE” in your group structure does sound nice on a letterhead.
🏗️ Balance Sheet Review – FY25 vs FY24
| 🧾 Key Item | FY25 (₹ Cr) | FY24 (₹ Cr) | Commentary |
|---|---|---|---|
| Shareholder Equity | 58.16 | 49.08 | 💪 Reserves up ~₹9 Cr |
| Total Assets | 106.66 | 99.06 | 📈 7.7% asset expansion |
| Short-Term Borrowings | 27.28 | 33.67 | 🧾 Debt reduced by ₹6 Cr |
| Trade Receivables | 46.42 | 44.05 | 🧍 Working capital stretch |
| Inventory | 33.84 | 32.02 | 🛢️ Oil stockpiles building |
| Cash & Equivalents | 5.20 | 4.08 | 💸 Some liquidity buffer |
⚠️ Inventory + receivables = ₹80 Cr — big working capital lock-up, still manageable due to improved cash ops.
🔧 Key Boardroom Decisions (May 28 Meeting)
| 🪑 Agenda Item | Decision |
|---|---|
| FY25 Audited Financials | ✅ Approved |
| Secretarial Auditor (FY26–30) | Appointed: Vijay S. Tiwari & Assoc |
| Cost Auditor (FY26) | Appointed: Joshi Apte & Assoc |
| Internal Auditor (FY26) | Appointed: Akshay Parikh & Assoc |
| Trading Window | 🔒 Closed till 30 May, opens 31 May |
⏱️ Board meeting timing: 4:00 PM to 8:15 PM. That’s more hours than some auditor interns get sleep.
🧾 Cash Flow Highlights – From Nightmare to Nirvana
In FY24, the company posted negative cash from ops (-₹905 lakh). FY25 flipped the script to a positive ₹1,246 lakh — thanks to:
- Improved collections
- Lower inventory creep
- Tight cost management
| 🧮 Activity | FY25 (₹ in lakhs) | FY24 (₹ in lakhs) |
|---|---|---|
| Operating Cash Flow | 1,246.29 | -905.88 |
| Investing Cash Flow | -137.70 | -142.85 |
| Financing Cash Flow | -996.93 | +1,392.74 |
| Net Cash Movement | +111.65 | +344.01 |
💡 Company used operating surplus to repay debt. No equity dilution. Respect.
🧠 Auditor’s Take – No Red Flags, Just Green Lights
Both standalone and consolidated auditor reports by Viral Jain & Associates came with:
✅ Unmodified opinion
📣 “True and fair view”
📉 No mention of fraud, errors, or going concern worries
📦 Note: Arzol Petroleum Trading FZE’s results are unaudited, but auditor clarified they’re immaterial to group profitability.
🧪 EduInvesting Take
- Profit up 34%, EPS up, cash flow back from coma.
Arabian Petroleum might not be an oil baron, but it’s acting like one. - No sudden acquisitions, dilution, or drama.
Just good ol’ balance sheet improvement and grown-up auditing. - Working capital tightening needed.
Receivables + inventories still chewing cash, but FY25 shows the company’s learning. - UAE play? Minimal now, but could be a gateway later.
Let’s hope it’s not just a Dubai P.O. box.
❗Risks to Watch
- ⛽ Crude Price Volatility: Input costs are oil-linked.
- 💼 Receivables Risk: High trade debtors can turn sour.
- 💵 Short-Term Borrowing Still High: Though improved, interest costs can return if debt balloons.
🤔 Final Words
Arabian Petroleum isn’t a multibagger just yet. But if you like:
- EBITDA growth
- Positive cash flow reversals
- Zero auditor drama
Then this smallcap deserves a spot on your oil-stained watchlist.
🗓️ Published: May 29, 2025
✍️ By: Prashant Marathe
Tags: Arabian Petroleum FY25, Audited Results, Oil Stocks India, Board Meeting Decisions, Auditor Appointment, Cash Flow Turnaround, EduInvesting, NSE ARABIAN
