Arrow Greentech Limited (ARROWGREEN) AI Stock Analysis

• Market Cap: ₹6.00B
• Dividend Yield: 0.78%
• Average Volume (3M): 4.96K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 1.20
• Revenue Growth: 4.16%
• EPS Growth: -5.39%
• Country: IN
• Employees: 108
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Packaging & Containers
• EPS (TTM): 8.82
• Shares Outstanding: 15,087,938
• 10 Day Avg. Volume: 1,528
• 30 Day Avg. Volume: 4,960
• PEG Ratio: 0.11
• Price to Book (P/B): 4.36
• Price to Sales (P/S): 3.37
• P/FCF Ratio: 13.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ₹456.00 ▼(-9.91% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is supported primarily by strong financial performance (rapid growth, improved margins, low leverage, and solid free cash flow). This is partially offset by weak technicals (price below key moving averages with bearish momentum). Valuation is reasonable (P/E 12.27) with only a modest dividend yield (~0.97%).

Positive Factors

Sustained Multi-year Revenue Growth

Multi-year revenue expansion (2020–2025) demonstrates durable product-market fit and scalable commercial execution. A ~59% CAGR reflects successful market penetration of polymer offerings, creating a larger base that smooths short-term volatility and supports longer-term growth investments.

Material Margin Improvement

Sustained improvement to high gross and net margins signals pricing power, differentiated product mix, and operational efficiency. Elevated margins create margin cushion versus input swings, enable reinvestment in R&D or capacity, and support durable profitability even if top-line growth moderates.

Strong Cash Generation & Low Leverage

Robust positive free cash flow coupled with minimal financial debt provides financial flexibility for capex, R&D, or M&A without stressing the balance sheet. Extremely low leverage and a high equity ratio reduce refinancing risk and increase resilience across business cycles.

Negative Factors

Recent Revenue Deceleration

Despite multi-year expansion, recent reported revenue growth turned negative, signaling a near-term demand or execution pullback. If this deceleration persists over the next several quarters it could test operating leverage and slow reinvestment plans tied to prior growth assumptions.

Earnings Contraction

Reported EPS contraction indicates recent pressure on bottom-line performance, which may reflect margin compression, one-off costs, or pricing pressure. Continued EPS declines would erode retained earnings and limit internal funding for growth initiatives and strategic programs.

Rising Total Liabilities

Although leverage remains very low, the upward trend in total liabilities raises working-capital and liquidity risks if growth stalls. Increasing liabilities can strain cash conversion and force reliance on external funding or slower investment pacing if not reined in.

Arrow Greentech Limited Business Overview & Revenue Model

Company Description

Arrow Greentech Limited, together with its subsidiaries, manufactures, sells, and exports cast water soluble films and security films worldwide. It offers packaging films for packaging agro chemicals, cement/dyes/enzymes, liquid detergents, fish bait, seed tapes, laundry bags, toilet blocks, and powder detergents. The company also provides embroidery films, water soluble soap strips, mold release films, and water transfer printing films for decoration of a range of products. In addition, it offers plasticizer-free thermoplastic and transparent materials. Further, the company provides security based products; and pharmaceutical products, as well as intellectual property and based products. The company was formerly known as Arrow Coated Products Limited and changed its name to Arrow Greentech Limited in May 2016. Arrow Greentech Limited was incorporated in 1992 and is based in Mumbai, India.

How the Company Makes Money

Arrow Greentech Limited generates revenue through multiple key streams. Primarily, the company earns income from the sale of its green technology products, which include energy-efficient systems and sustainable materials. Additionally, ARROWGREEN engages in consulting services for businesses seeking to implement sustainable practices, charging fees for expertise in areas such as energy management and waste reduction. The company also benefits from strategic partnerships with governments and private organizations that support renewable energy projects, allowing ARROWGREEN to secure grants and subsidies that contribute to its earnings. Furthermore, the company may generate recurring revenue through maintenance contracts and service agreements with clients utilizing its technologies.

Arrow Greentech Limited Financial Statement Overview

Summary

Strong multi-year revenue growth and materially improved profitability (gross margin up to 54% and net margin up to 26%). Balance sheet leverage is very conservative (debt-to-equity ~0.004) with a high equity ratio (~90%), while rising liabilities are a watch item. Cash generation is robust with positive and growing free cash flow (607.8M in 2025).

Income Statement

Arrow Greentech Limited has demonstrated significant revenue growth, increasing from 222.6M in 2020 to 2.43B in 2025, representing a CAGR of approximately 59%. The gross profit margin has improved consistently, reaching 54% in 2025. Net profit margin improved to 26% in 2025 from past negative margins, indicating enhanced profitability. The company has shown strong EBIT and EBITDA margins, reflecting efficient operations and cost management.

Balance Sheet

The company's debt-to-equity ratio remains low at 0.004, indicating conservative leverage. Stockholders' equity has grown significantly, showing financial robustness. However, total liabilities have increased over the years, which could pose potential risks if not managed carefully. The equity ratio stands at a healthy 90.3%, reflecting strong financial health and stability.

Cash Flow

Operating cash flow has grown substantially, enhancing liquidity. Free cash flow has turned positive, reaching 607.8M in 2025, indicating effective capital management. The ratio of operating cash flow to net income is favorable, suggesting strong cash-generating capability relative to net profits. This robust cash flow position supports potential reinvestment and debt servicing.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.19B	2.43B	1.49B	1.09B	335.60M	523.13M
Gross Profit	1.12B	1.31B	883.70M	544.80M	137.20M	223.49M
EBITDA	789.10M	936.10M	488.10M	254.60M	-54.88M	109.10M
Net Income	538.60M	631.30M	295.10M	122.80M	-93.27M	64.09M
Balance Sheet
Total Assets	0.00	2.08B	1.45B	1.21B	886.53M	990.34M
Cash, Cash Equivalents and Short-Term Investments	911.70M	911.70M	209.40M	254.40M	103.97M	133.92M
Total Debt	0.00	6.70M	12.40M	34.50M	47.27M	52.36M
Total Liabilities	-1.90B	183.70M	165.90M	211.80M	118.58M	124.47M
Stockholders Equity	1.90B	1.88B	1.27B	982.00M	746.92M	845.47M
Cash Flow
Free Cash Flow	0.00	607.80M	79.40M	-10.00M	-62.91M	-41.25M
Operating Cash Flow	0.00	675.70M	183.80M	29.80M	24.02M	7.12M
Investing Cash Flow	0.00	-545.80M	-129.90M	-141.40M	-22.47M	23.23M
Financing Cash Flow	0.00	-39.20M	-42.80M	84.00M	-16.19M	-16.01M

Arrow Greentech Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 506.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ARROWGREEN, the sentiment is Negative. The current price of 506.15 is above the 20-day moving average (MA) of 432.41, above the 50-day MA of 463.38, and below the 200-day MA of 568.46, indicating a bearish trend. The MACD of -14.32 indicates Positive momentum. The RSI at 36.19 is Neutral, neither overbought nor oversold. The STOCH value of 3.77 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ARROWGREEN.

Arrow Greentech Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LINC	73 Outperform	₹6.17B	18.71	―	1.35%	3.76%	<0.01%
ARROWGREEN	71 Outperform	₹6.00B	11.85	―	0.78%	4.16%	-5.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ROHLTD	61 Neutral	₹9.52B	26.55	―	0.61%	10.77%	-4.40%
SNOWMAN	50 Neutral	₹6.48B	398.09	―	2.44%	9.91%	-66.86%
REPRO	49 Neutral	₹5.52B	-26.36	―	―	2.88%	-828.14%
PAKKA	44 Neutral	₹3.93B	24.52	―	―	-11.28%	-62.38%

Arrow Greentech Limited Corporate Events

Arrow Greentech Schedules One-on-One Analyst and Investor Meet for 26 February 2026

Arrow Greentech Limited has announced that its officials will hold a one-on-one meeting with analysts and institutional investors on Thursday, 26 February 2026, from 3:30 p.m. to 4:30 p.m. IST. The interaction will be limited to publicly available information, signaling ongoing engagement with the investment community while noting that the schedule may change due to exigencies for the host or the company.