ARC Insulation & Ins balance sheet is weak and might have solvency issues

Yes, The net debt of ARC Insulation & Ins is increasing.
Latest net debt of ARC Insulation & Ins is ₹5.11 Crs as of Mar-25.
This is greater than Mar-24 when it was ₹1.35 Crs.

Yes, profit is increasing.
The profit of ARC Insulation & Ins is ₹8.57 Crs for Mar 2025, ₹6.1 Crs for Mar 2024 and ₹2.64 Crs for Mar 2023

The company seems to be paying a very low dividend.
Investors need to see where the company is allocating its profits.
ARC Insulation & Ins latest dividend payout ratio is 0% and 3yr average dividend payout ratio is 0%

Companies resources are allocated to majorly productive assets like Plant & Machinery and unproductive assets like Accounts Receivable