Arihant Foundations & Housing Limited Arihant Foundations & Housing delivered a significant improvement in profitability for the first quarter of FY27, with consolidated net profit rising 47% year-on-year to ₹24.09 crore. The Chennai-based real estate developer also saw its consolidated revenue jump 60% to ₹135.67 crore, reflecting strong operational momentum despite a cautious market environment.

The Board of Directors approved the unaudited standalone and consolidated financial results on August 14, 2026. The company’s performance was underpinned by robust pre-sales activity and efficient cost management, allowing it to maintain healthy margins even as revenue recognition faced temporary headwinds.

Consolidated Financial Performance

Consolidated EBITDA expanded by 56% year-on-year to ₹37.73 crore. However, the EBITDA margin contracted marginally by 0.7 percentage points to 27.8% from 28.5% in the corresponding quarter of the previous year. This slight compression occurred alongside a 60% surge in revenue, indicating that cost growth outpaced top-line expansion in absolute terms during the quarter.

On a quarterly basis, consolidated revenue declined 14% to ₹135.67 crore from ₹157.53 crore in Q4FY26. In contrast, EBITDA surged 80% quarter-on-quarter to ₹37.73 crore from ₹21.01 crore, driven by lower construction expenses and favorable inventory adjustments.

Standalone Results

Standalone revenue from operations fell 15% year-on-year to ₹45.75 crore (₹4,575 lakh) from ₹53.92 crore in Q1FY26. Standalone net profit declined 36% to ₹2.99 crore (₹299 lakh) from ₹4.69 crore in the same period last year. The decline in standalone profitability contrasts sharply with the consolidated growth, highlighting the significant contribution of subsidiaries to the group’s overall earnings.

What the Numbers Show

A notable divergence exists between the standalone and consolidated results. While standalone net profit fell 36% YoY, consolidated net profit rose 47%. This suggests that the group’s subsidiaries generated substantial incremental profits or benefited from different project recognition cycles compared to the parent entity. Additionally, other income in the standalone segment dropped significantly from ₹2.74 crore in Q1FY26 to ₹21.6 lakh in Q1FY27, contributing to the parent company’s lower bottom line despite stable operating expenses.

Operational Update

Management reported pre-sales of ₹168 crore during the quarter, representing a 69% year-on-year increase from ₹99 crore in Q1FY26. Area sold reached 1.45 lakh sq. ft., up 53% YoY. Collections stood at ₹69 crore. Managing Director Kamal Lunawath attributed the moderation in revenue conversions to buyer caution amid geopolitical uncertainties and the Tamil Nadu state elections, which concluded during the quarter with a new government in place.

The company highlighted strong momentum in its development pipeline, with multiple large residential projects receiving approvals or nearing final clearance. These projects are expected to launch in the current financial year, positioning the company for sustained growth in sales bookings and revenue.

Strategic Developments and Pipeline

The investor presentation underscored key strategic milestones driving future growth:

• Strategic Alliance: A partnership with Prestige Estates was marked as a transformational milestone unlocking the next growth phase.
• Land Acquisition: The company acquired 18 acres in the heart of Chennai in 2026, described as one of the largest transaction deals in the city in the last 15 years.
• Market Context: Tamil Nadu continues to be a structural growth engine, with TN GSDP growing at 11.19%, making it India's fastest-growing state. Chennai office leasing reached ~9.1 Mn Sq ft in CY2025, up 14% in H1 2025 YoY.

The total Gross Development Value (GDV) stands at ₹11,388 Cr (Arihant share ₹6,094 Cr), with 8.05 Mn Sq ft under development across residential, commercial, and senior living segments.

Capital Structure Changes

During the quarter, warrant holders exercised their option to convert all 8,96,873 outstanding convertible warrants into fully paid-up equity shares. The conversion involved tendering the balance 75% consideration of ₹360 per warrant, aggregating to ₹32.29 crore. Consequently, the paid-up equity share capital increased from ₹9.97 crore (99.66 lakh shares) as on March 31, 2026, to ₹10.86 crore (108.62 lakh shares) as on the date of the report.

arihant foundations & housing has acquired a prime land parcel measuring over half an acre on Anna Salai (Mount Road), Chennai, adjacent to Hyatt Regency Chennai. The company proposes to develop a boutique Grade A commercial office project on the site, with an estimated Gross Development Value (GDV) of approximately ₹300 crore. This strategic move aims to expand the company's commercial real estate portfolio through high-quality assets in prime, land-scarce micro-markets within the city.

The acquisition was disclosed to BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The site is situated in the heart of the city's central business district, an established commercial micro-market. The proposed development is intended to address demand for quality office space from corporates, global capability centres (GCCs), information technology, financial services, and engineering sectors.

This transaction follows a recent acquisition by the company of a land parcel of similar extent near Boat Club. These actions reflect a development model focused on acquiring well-located parcels in prime pockets of the city and developing them into boutique Grade A office buildings. The model prioritizes design-led, high-specification developments in central locations where large land parcels are rarely available.

Kamal Lunawath, Managing Director of Arihant Foundations & Housing Ltd, stated that Mount Road is Chennai's most prestigious commercial address and that demand for premium Grade A office space in the central business district continues to strengthen. He emphasized that this development is an important step in expanding their commercial portfolio and creating a landmark asset reflecting the company's four decades of experience.

Arihant Foundations & Housing Limited is a Chennai-based real estate company with over four decades of experience and a delivery track record exceeding 25 Million sq. ft. The company's ongoing project portfolio has a GDV of ₹11,251 Cr spanning approximately 8 Million sq. ft., covering luxury residential, commercial, senior living, and plotted developments.