Arihant's Q2 profit rises 6% as margin slips to 21%
Revenue grew, but thinner margins and a 21.4% fall in half-year profit will keep investors focused on earnings quality.
Key points
- Consolidated net profit for July–September 2026 was ₹10.55 crore, up 6.0% from ₹9.96 crore a year earlier.
- Revenue from operations rose 8.62% to ₹133.22 crore; EBITDA margin fell to 21.0% from 24.42%.
- Reported profit after tax for April–September 2026 was ₹20.33 crore, down 21.4%.
- Board approved a hotel management deal via a subsidiary, a succession framework and a final FY26 dividend of ₹0.25 per share.
Navi Mumbai-based Arihant Superstructures reported a consolidated net profit of ₹10.55 crore for the quarter ended 30 September 2026, up 6.0% from ₹9.96 crore in the same quarter a year earlier. The board approved the unaudited standalone and consolidated accounts for the quarter and half year at a meeting on 3 November 2026 at its registered office in Navi Mumbai, the company said in a stock exchange filing. The meeting ran from 12 noon to 3 pm.
Revenue from operations was ₹133.22 crore, up 8.62% from ₹122.65 crore. Total income rose 9.1% to ₹134.69 crore from ₹123.43 crore. Profit attributable to the owners of the company was ₹6.77 crore, against ₹6.11 crore a year earlier.
Margin is the weak spot
Profit grew more slowly than revenue. Consolidated EBITDA was ₹28.0 crore, down from ₹29.9 crore, and the EBITDA margin declined to 21.0% from 24.42%. In its Q1 FY27 results, the company had linked a similar margin squeeze to rising input costs. The filing for the latest quarter does not give a fresh reason for the decline.
The longer view is weaker. Reported profit after tax for April–September 2026 was ₹20.33 crore, down 21.4% year on year. The first quarter alone showed a consolidated net profit of ₹9.78 crore, down 38.5% from ₹15.91 crore, with EBITDA margin at 20.94%. Pre-sales in the first quarter grew 15% to ₹173 crore.
Hotel deal and board changes
The board also took several governance and business decisions in the same filing. Dwellcons Ltd, a 100% subsidiary, signed a hotel management agreement with ITC Hotels Ltd for the Mementos luxury brand. The five-star property, at World Villas Chowk in Mumbai 3.0, will have 227 rooms, including 44 suites. The company has not disclosed an opening date.
- Succession framework: a rotating four-year chairmanship among three primary promoter equity holders, with a professional evaluation matrix.
- Stop-loss: new business investment is capped at 10% of implied fair value, calculated by discounted cash flow.
- Independent director: Pradeep Mehta, a chartered accountant and former CFO (2017–2019), was appointed effective 23 October 2026 by circular resolution.
- Joint Managing Directors: Parth Chhajer and Bhavik Chhajer were named for five-year terms, subject to shareholder approval.
- Postal ballot: a draft notice was approved; its resolutions were not disclosed in the filing.
- Dividend: a final dividend of ₹0.25 per share was recommended for FY26. The promoter group has waived its entitlement.
The company's 2023 release said its land bank would exceed 335 acres after a 118-acre township at Chowk was added. The Chowk site lies about 500 metres from Chowk railway station on the Panvel–Karjat corridor, and the company has described a 25-minute drive to the upcoming Navi Mumbai International Airport.
What investors will watch
The company will hold its earnings conference call on 5 November 2026 at 10:30 am IST to discuss the Q2 and half-year results. Investors are likely to focus on whether the margin decline continues, since profit growth has lagged revenue growth in this quarter and the first quarter. The shareholder vote on the Joint MD appointments and the postal ballot resolutions are the next formal steps. The company has not yet announced a date for its Q3 FY27 results.
Spotted an error? Tell our editors · Corrections policy