ARIHANTSUP - Arihant Super.

📊 NSE: ARIHANTSUP 🏢 Construction 📅 Last Updated: 12/13/2025 18:30

💰 Financial Performance

Revenue Growth by Segment

Operating Revenues for H1-FY26 reached INR 2,436 Mn, representing a 24.6% YoY growth compared to INR 1,955 Mn in H1-FY25. Q2-FY26 revenue was INR 1,227 Mn, up 9.7% YoY from INR 1,118 Mn. The growth is driven by a project mix consisting of Luxury (25%), Mid-Income (38%), and Affordable (37%) segments.

Geographic Revenue Split

The revenue mix of ongoing projects is heavily concentrated in the Mumbai Metropolitan Region (MMR), with Panvel (Airport Area) contributing 57%, followed by Jodhpur at 15%, Karjat at 11%, Khopoli at 6%, Taloja at 6%, and Badlapur at 5%.

Profitability Margins

H1-FY26 PAT margin improved to 10.63% from 9.21% YoY, a gain of 142 bps. However, Q2-FY26 PAT margin dropped significantly to 8.15% from 14.31% YoY, a decrease of 616 bps, primarily due to an 80.9% increase in interest expenses.

EBITDA Margin

H1-FY26 EBITDA margin stood at 27.42%, up 727 bps from 20.15% YoY. Q2-FY26 EBITDA margin was 24.37%, down 148 bps from 25.85% YoY, reflecting higher operating expenses which rose 11.9% YoY to INR 928 Mn.

Capital Expenditure

Non-current assets, including Property, Plant & Equipment, increased to INR 998 Mn in H1-FY26 from INR 835 Mn in FY25. The company is investing in massive asset creation through projects like Arihant World Villas to generate recurring annuity income.

Credit Rating & Borrowing

Adjusted Net Debt as of September 30, 2025, was INR 4,348 Mn against a Net Worth of INR 4,302 Mn. Borrowings are sourced from HDFC Bank, SBI, STCI Finance, ICICI Ventures, Tata Capital, and Bajaj Housing Finance. Interest costs for H1-FY26 surged 97.1% YoY to INR 341 Mn.

⚙️ Operational Drivers

Raw Materials

Construction materials including steel, cement, and finishing materials; specific percentage of total cost for each is not disclosed in available documents.

Capacity Expansion

The company has developed 12 mn sq. ft. in MMR and Jodhpur. It currently has a forthcoming project portfolio of 11.2 mn sq. ft. with a revenue potential of INR 75 Bn. Ongoing projects include Arihant Aspire (Panvel) with 1,210 units and Arihant World Villas (Chowk) with 390 luxury villas.

Raw Material Costs

Operating expenses for H1-FY26 were INR 1,768 Mn, up 13.3% YoY from INR 1,561 Mn, representing 72.5% of operating revenue.

Manufacturing Efficiency

Project completion status varies: Arihant 5 Anaika (82%), Arihant Advika (70%), and Arihant Aspire Phase 1 (96%). OC was received for Arihant Amisha Phase 2 (134 units) during Q2-FY26.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth will be achieved by scaling up in the MMR region, particularly around the Navi Mumbai Airport area (57% of project mix). The company is launching landmark projects like Arihant World Villas (GDV INR 12 Bn) and foraying into Sports & Hospitality to generate recurring annuity income. The forthcoming pipeline of 11.2 mn sq. ft. provides a revenue visibility of INR 75 Bn.

Products & Services

Residential apartments (Affordable, Mid-Income, Luxury), Platinum series luxury villas, and commercial/hospitality assets for annuity income.

Brand Portfolio

Arihant Superstructures, Arihant World Villas, Arihant Aspire, Arihant Aaradhya, Arihant Clan Aalishan.

New Products/Services

Arihant World Villas (390 luxury villas) and new mix-use projects designed to build an annuity income pool in the sports and hospitality segments.

Market Expansion

Expansion is focused on 12 micro-markets in MMR and Jodhpur. Recent business development includes acquiring 5 additional acres at Chowk Manivali for the Town Villas project (93 acres total).

Strategic Alliances

The company has a history of PPP schemes, such as the landmark project launched in Jodhpur. It maintains strong relationships with financial partners like ICICI Ventures and Tata Capital.

🌍 External Factors

Industry Trends

The Indian real estate industry is fragmented and cyclical. Current trends show a shift toward premiumization (Luxury segment) and demand for integrated townships with annuity-generating assets.

Competitive Landscape

Competes with other regional developers in MMR and Jodhpur; competitive advantage stems from integrated in-house execution and geographical focus on high-growth areas like Panvel.

Competitive Moat

The moat is built on a 30-year promoter track record, a trusted brand, and a diversified project mix that 'mirrors the population matrix,' providing resilience against demand stagnancy in any single income segment.

Macro Economic Sensitivity

Highly sensitive to interest rates and inflation in construction materials. Interest expenses rose to INR 341 Mn in H1-FY26, nearly doubling YoY.

Consumer Behavior

Shift toward luxury villas and mid-income housing in emerging micro-markets driven by infrastructure developments like the Navi Mumbai Airport.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to RERA compliance, stamp duty regulations, and local municipal approvals. The company recently received OC for Arihant Amisha Phase 2.