Arihant Capital Markets reported a standalone net profit of ₹1,892.32 lakh for the quarter ended June 30, 2026, marking a sharp 55.4% year-on-year increase from ₹1,217.69 lakh in Q1FY25. The surge was primarily driven by a substantial rise in fees and commission income, which climbed to ₹4,010.45 lakh from ₹2,561.29 lakh in the corresponding period last year, alongside robust net gains on fair value changes. Consolidated net profit also expanded significantly to ₹2,148.94 lakh, up from ₹1,270.25 lakh in Q1FY25, reflecting broad-based strength across its broking and financing segments.

The Board of Directors, meeting on July 24, 2026, approved the unaudited standalone and consolidated financial results for Q1FY26 pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, Arora Banthia & Tulsiyan, in accordance with Regulation 33 of the same regulations. Chairman & Managing Director Ashok Kumar Jain certified the financial statements, confirming compliance with Indian Accounting Standard 34 (Ind AS 34).

Financial Performance Highlights

Standalone revenue from operations grew by 50.1% to ₹7,513.46 lakh, compared to ₹5,003.56 lakh in Q1FY25. Interest income contributed ₹2,157.95 lakh, while dividend income remained minimal at ₹1.19 lakh. Total expenditure rose to ₹5,023.13 lakh from ₹3,443.67 lakh, largely due to higher fees and commission expenses of ₹2,411.83 lakh and increased finance costs of ₹706.32 lakh.

On a consolidated basis, revenue from operations stood at ₹7,791.40 lakh, driven by broking and related activities which accounted for ₹7,695.13 lakh of segment revenue. Financing activities contributed ₹131.90 lakh. The consolidated net profit before tax was ₹2,815.54 lakh, after accounting for a share of profit from associates of ₹95.85 lakh.

Segment and Operational Insights

The Broking & Related Activities segment delivered a pre-tax profit of ₹3,371.24 lakh, a significant improvement from ₹1,849.00 lakh in Q1FY25. This underscores the company's core competency in brokerage services as the primary profit engine. The Financing Activities segment reported a modest pre-tax profit of ₹88.52 lakh, slightly down from ₹99.38 lakh in the prior year quarter, indicating stable but less dynamic performance in lending operations.

What the Numbers Show

The disproportionate growth in net gains on fair value changes—up 86.3% to ₹1,343.87 lakh—suggests that trading book performance played a critical role in boosting margins beyond operational fee income. While fees and commission income grew healthily by 56.6%, the volatility inherent in fair value gains implies that future profitability may remain sensitive to market conditions. Additionally, the consolidated results include the impact of a Composite Scheme of Arrangement approved in August 2025, involving Arihant Financial Services Limited and other group entities, which is pending regulatory approvals from the National Company Law Tribunal under Sections 230 and 232 of the Companies Act, 2013.

Arihant Capital Markets Ltd received 'no adverse observations' from BSE Limited and 'no objection' from the National Stock Exchange of India Limited on June 25, 2026, for its composite scheme of arrangement. The exchanges issued observation letters enabling the company to proceed with filing the draft scheme with the National Company Law Tribunal (NCLT), subject to compliance with specific conditions. The scheme involves Arihant Financial Services Limited, Arihant Capital Markets Limited, Arihant Elite Financial Solutions Limited, Arihant Investment Banking Services Limited, and Arihant Money Marvel Wealth Management Limited.

The observation letters from both exchanges outline mandatory compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company must ensure the scheme adheres to Regulation 11 of the LODR Regulations and discloses all details of ongoing adjudication, recovery proceedings, and enforcement actions against the company, its promoters, and directors to the NCLT and shareholders. Additionally, any changes to the draft scheme require specific written consent from SEBI.

Regulatory Conditions and Disclosures

The exchanges have stipulated comprehensive disclosure requirements to be included in the explanatory statement sent to shareholders. These disclosures are intended to enable informed decision-making and include:

• A small explanation of the scheme, the rationale, synergies, and a cost-benefit analysis.
• Details of the Registered Valuer and Merchant Banker, along with the summary of methods used to determine the share-swap ratio.
• Latest financials of all involved companies not older than six months from the date of the stock exchange's No Objection Certificate (NOC).
• Pre and post-scheme shareholding patterns and capital build-up for the last three years.
• Quantitative details of the impact on reserves for all entities involved.

Listing and Operational Requirements

Arihant Elite Financial Solutions Limited (AEFSL) is advised to complete the listing of its securities and commence trading within sixty days of receiving the NCLT order. The validity of the observation letters is six months from June 25, 2026, within which the scheme must be submitted to the NCLT. The exchanges reserve the right to withdraw their observations if any information provided is found to be incomplete or misleading.