Arigato Universe Swings to Profit in FY26, But Cash Flow Concerns Linger

Arigato Universe reported a net profit of ₹2.27 crore for the financial year ended March 31, 2026. This marks a significant turnaround from a net loss of ₹3.30 crore in the previous fiscal year. Revenue from operations for FY26 stood at ₹28.60 crore, a substantial increase from ₹7.12 crore in FY25.

What just happened

Arigato Universe Limited (formerly Saboo Brothers Limited) announced its audited financial results for the fiscal year 2025-26. The company achieved a net profit of ₹2.27 crore, reversing the net loss of ₹3.30 crore recorded in FY25. Revenue from operations also saw a significant jump to ₹28.60 crore from ₹7.12 crore.

Why this matters

The turnaround in profitability is a positive sign for shareholders, indicating an improvement in the company's core business performance. The unmodified auditor's report adds credibility to these financial results.

The backstory

Arigato Universe, previously known as Saboo Brothers Limited, has been undergoing a financial transformation. The previous fiscal year (FY25) ended with a considerable net loss, making the current year's profit a key development.

What changes now

Investors will be looking for sustained profitability and operational efficiency. The key challenge remains converting these profits into tangible cash flow.

Risks to watch

Despite the profit, the company reported a negative operating cash flow of ₹6.43 crore for FY26, an increase from ₹6.00 crore in FY25. Furthermore, inventories ballooned to ₹18.81 crore as of March 31, 2026. High inventory levels can tie up working capital and pose a risk of obsolescence or slow sales.

Peer comparison

(No peer comparison data available in the filing)

Context metrics (time-bound)

• Revenue from operations (FY26): ₹28.60 crore (vs. ₹7.12 crore in FY25)
• Net Profit (FY26): ₹2.27 crore (vs. ₹-3.30 crore in FY25)
• Inventories (Mar 31, 2026): ₹18.81 crore
• Operating Cash Flow (FY26): ₹-6.43 crore

What to track next

Shareholders should closely monitor the company's ability to manage its inventory levels and improve its operating cash flow in the coming quarters. The effectiveness of strategies to convert sales into cash will be crucial.