Arihant's Securities Q1 Results: Net profit falls to ₹8.56 lakh
Arihant's Securities Ltd posted a Q1FY26 net profit of ₹8.56 lakh, down from ₹10.36 lakh YoY. While operational revenue rose to ₹2.60 lakh, total income fell due to lower other operating income. The company swung back to profitability from a loss in Q4FY26. Statutory auditors N R Krishnamoorthy & Co reviewed the results.
*this image is generated using AI for illustrative purposes only.
Arihant's Securities reported a net profit of ₹8.56 lakh for the quarter ended June 30, 2026 (Q1FY26), compared to ₹10.36 lakh in the same quarter of FY25. The decline was primarily driven by a reduction in other operating income, which fell to ₹26.38 lakh from ₹29.24 lakh year-on-year. Total revenue for the quarter was ₹28.99 lakh, comprising ₹2.60 lakh from operations and ₹26.38 lakh from other income. This marks a shift from the previous quarter (Q4FY26), where the company recorded a net loss of ₹28.95 lakh.
The Board of Directors approved the unaudited financial results during a meeting held on July 30, 2026. The results were reviewed by N R Krishnamoorthy & Co, the statutory auditors, who issued a limited review report confirming that the statement complies with Regulation 33 and Regulation 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The financials were prepared in accordance with Ind AS 34, except for Ind AS 109 Financial Instruments.
Financial Performance Overview
Revenue from operations increased to ₹2.60 lakh in Q1FY26 from ₹1.16 lakh in Q1FY25, largely due to dividend income rising to ₹2.46 lakh from ₹1.16 lakh. However, this growth was offset by higher employee benefit expenses, which rose to ₹2.73 lakh from ₹4.34 lakh in the prior year quarter, though they decreased significantly from ₹8.02 lakh in the immediate preceding quarter. Other expenses also saw an uptick to ₹13.80 lakh compared to ₹12.25 lakh in Q1FY25.
| Particulars | Q1FY26 (₹ in lakhs) | Q4FY26 (₹ in lakhs) | Q1FY25 (₹ in lakhs) |
|---|---|---|---|
| Revenue from Operations | 2.60 | 1.68 | 1.16 |
| Other Income | 26.38 | (21.05) | 29.24 |
| Total Revenue | 28.99 | (19.37) | 30.41 |
| Total Expenses | 17.57 | 19.23 | 16.60 |
| Profit Before Tax | 11.41 | (38.60) | 13.81 |
| Net Profit | 8.56 | (28.95) | 10.36 |
What the Numbers Show
The company’s profitability remains heavily dependent on non-operating income. In Q1FY26, other operating income accounted for approximately 91% of the total revenue, while core operational revenue contributed only 9%. This structural dependency highlights that the firm’s earnings are not primarily driven by its core securities business operations but rather by incidental or investment-related gains. Furthermore, the swing from a net loss of ₹28.95 lakh in Q4FY26 to a profit in Q1FY26 is attributable to a reversal in other income, which turned positive after being negative in the previous quarter.
The company disclosed a contingent liability regarding an income tax demand of ₹19,17,040 for Assessment Year 2012-13, which is currently pending appeal proceedings. There were no exceptional or extraordinary items reported for the quarter. The paid-up equity share capital remained unchanged at ₹5 crore.
Historical Stock Returns for Arihants Securities
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.11% | -2.11% | +3.66% | -13.06% | -21.89% | +95.47% |
How might Arihant's Securities plan to diversify its revenue streams to reduce the heavy 91% dependency on non-operating income?
What is the current status of the pending income tax appeal for Assessment Year 2012-13, and what potential financial impact could a negative ruling have on future quarters?
Given the volatility in other operating income, what risk management strategies is the company implementing to stabilize quarterly profitability?
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