Arihant's Securities net profit falls to ₹8.56 lakh in Q1FY27
Arihant's Securities posted a net profit of ₹8.56 lakh in Q1FY27, a decrease from ₹10.36 lakh in the same quarter last year. The drop was caused by a fall in other operating income to ₹26.38 lakh from ₹29.24 lakh. Despite this, core revenue increased to ₹2.60 lakh, and the company returned to profitability from a loss in the previous quarter.
*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 (Q1FY27), a decline from the ₹10.36 lakh profit recorded in the same quarter of FY26. The reduction in profitability was primarily driven by a drop in other operating income, which fell to ₹26.38 lakh from ₹29.24 lakh year-on-year. This result marks a return to profitability after the company posted a net loss of ₹28.95 lakh in the preceding quarter (Q4FY26). The Board of Directors approved the unaudited financial results during a meeting held on July 30, 2026.
The company’s total revenue for the quarter stood at ₹28.99 lakh, comprising ₹2.60 lakh from operations and ₹26.38 lakh from other income. While revenue from operations increased significantly to ₹2.60 lakh from ₹1.16 lakh in Q1FY26, largely due to dividend income rising to ₹2.46 lakh from ₹1.16 lakh, this growth was insufficient to offset the decline in other income. Total expenses decreased slightly to ₹17.57 lakh from ₹19.23 lakh in Q4FY26, with employee benefit expenses falling to ₹2.73 lakh from ₹8.02 lakh in the previous quarter.
Financial Performance Overview
The financial statement highlights a continued reliance on non-operating income for profitability. Other operating income accounted for approximately 91% of the total revenue in Q1FY27, while core operational revenue contributed only 9%. The swing from a net loss in Q4FY26 to a profit in Q1FY27 is attributable to other income turning positive after being negative at ₹(21.05) lakh in the prior quarter. Tax expenses for the current quarter were ₹2.85 lakh, compared to a tax benefit of ₹(9.65) lakh in Q4FY26.
| Particulars | Q1FY27 (₹ in lakhs) | Q4FY26 (₹ in lakhs) | Q1FY26 (₹ 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 earnings structure remains heavily skewed towards incidental gains rather than core securities business operations. In Q1FY27, other operating income constituted the vast majority of revenue, indicating that the firm’s financial health is currently dependent on investment-related or non-recurring items rather than stable operational cash flows. The reversal in other income from negative in Q4FY26 to positive in Q1FY27 was the primary driver behind the return to profitability. The company disclosed a contingent liability regarding an income tax demand of ₹19,17,040 for Assessment Year 2012-13, which remains pending appeal proceedings. The paid-up equity share capital remained unchanged at ₹5 crore. The results were reviewed by N R Krishnamoorthy & Co, the statutory auditors, confirming compliance with Regulation 33 and Regulation 52 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Historical Stock Returns for Arihants Securities
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.71% | +6.71% | +6.65% | -6.93% | -17.76% | +99.09% |
What strategic initiatives is Arihant's Securities implementing to increase the contribution of core operational revenue relative to non-operating income in upcoming quarters?
How might the resolution of the pending income tax appeal for Assessment Year 2012-13 impact the company's future cash flows and legal liabilities?
Given the heavy reliance on dividend income for operational revenue, how sensitive is Arihant's profitability to market volatility and changes in its investment portfolio performance?
20
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
