Arihant Academy reported a 105% year-on-year increase in net profit to ₹91.06 crore for the financial year ended March 31, 2026, driven by a 56% rise in revenue from operations. The company’s board approved the audited standalone and consolidated financial results for FY26, recommended a final dividend of ₹2 per share, and appointed a new internal auditor.

Revenue from operations for the year stood at ₹634.31 crore, compared to ₹405.57 crore in the previous year. Total income increased to ₹649.38 crore from ₹425.78 crore. Profit before tax rose to ₹124.64 crore from ₹57.09 crore. Earnings per share (EPS) for the year increased to ₹15.04 from ₹7.34 in the prior year.

The board recommended a final dividend of 20%, or ₹2 per equity share, for FY26, aggregating to ₹121.10 lakh. This payout is subject to approval by shareholders at the ensuing Annual General Meeting. Additionally, the board appointed M/s. Bilimoria Mehta & Co., Chartered Accountants, as the internal auditor for the financial year 2026-27.

Financial Performance

The company’s total expenses for FY26 amounted to ₹524.73 crore, up from ₹368.69 crore in the previous year. Employee benefit expenses increased to ₹105.77 crore from ₹74.62 crore, while depreciation and amortization expenses rose to ₹31.02 crore from ₹18.72 crore. Other expenses also increased to ₹387.60 crore from ₹275.35 crore.

Strategic Developments

The board entered into a supplementary agreement dated May 20, 2026, to acquire an additional 25.50% stake in Zen Education and Learning, a partnership firm. This acquisition increases the company's total stake to 51.00%, making it a subsidiary effective from April 1, 2026. The statutory auditors, M/s. G.P. Kapadia & Co., issued an audit report with an unmodified opinion on the standalone and consolidated financial results.

Arihant Academy Limited has entered into a Supplementary Agreement with Zen Education and Learning (ZEAL) and its existing partners to modify the terms of the previous Master Agreement. This strategic move, effective April 1, 2026, significantly enhances the company's influence over the educational entity.

Increased Management Control

Under the terms of the Supplementary Agreement dated May 20, 2026, Arihant Academy has increased its profit sharing and voting rights in ZEAL. The stake has risen from 25.5% to 51%, marking a shift to majority control.

Revised Payment Structure

The balance consideration payable by the company will now be settled through a revised mechanism. Payments are structured as performance-linked annual tranches spread across FY 2026-27 to FY 2028-29. The valuation is directly tied to the financial performance of ZEAL.

All other terms and conditions of the Master Agreement dated October 24, 2024, remain unchanged. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.