Arihant Superstructures Q1 Results: Net Profit Falls 38%, EBITDA Margin Contracts to 20.94%
Arihant Superstructures reported a 38.5% YoY decline in consolidated net profit to ₹978.20 lakh for Q1, even as revenue from operations grew 8.8% to ₹13,159.38 lakh. EBITDA fell to ₹275M from ₹369M YoY, with EBITDA margin contracting sharply to 20.94% from 30.51%, reflecting rising construction and land costs. The Board approved results on August 07, 2026, and fixed the AGM for September 24, 2026.

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Arihant Superstructures Limited reported a consolidated net profit of ₹978.20 lakh for the quarter ended June 30, 2026, down 38.5% from ₹1,590.62 lakh in Q1FY26. While revenue from operations grew 8.8% to ₹13,159.38 lakh from ₹12,096.43 lakh year-ago, EBITDA declined to ₹275M from ₹369M, with EBITDA margin contracting sharply to 20.94% from 30.51%, underscoring significant margin pressure in the real estate development segment. The company's Board of Directors approved the unaudited standalone and consolidated financial results on August 07, 2026.
The statutory auditors, K J K & Associates, expressed an unmodified conclusion on the interim financial results pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were prepared in accordance with Indian Accounting Standards (Ind AS) and reviewed by the Audit Committee before board approval. Joint Managing Director Parth Chhajer signed off on the disclosure, which was submitted to BSE and NSE.
Financial Performance
Consolidated total revenue stood at ₹13,314.11 lakh, up from ₹12,294.71 lakh in Q1FY25. Other income contributed ₹154.73 lakh compared to ₹198.28 lakh previously. Total expenses increased to ₹12,029.53 lakh from ₹10,171.48 lakh, with cost of construction, land, and development expenses rising to ₹8,490.59 lakh from ₹10,949.27 lakh, offset partially by favorable changes in inventories of ₹325.37 lakh against ₹4,536.30 lakh in the prior year. The following table summarizes the key consolidated financial metrics for the quarter:
| Particulars: | Q1FY27 | Q1FY26 | Change: |
|---|---|---|---|
| Revenue from Operations: | ₹13,159.38 lakh | ₹12,096.43 lakh | +8.8% |
| EBITDA: | ₹275M | ₹369M | -25.47% |
| EBITDA Margin: | 20.94% | 30.51% | -9.57 pp |
| Total Expenses: | ₹12,029.53 lakh | ₹10,171.48 lakh | +18.3% |
| Profit Before Tax: | ₹1,284.58 lakh | ₹2,123.23 lakh | -39.5% |
| Net Profit After Tax: | ₹978.20 lakh | ₹1,590.62 lakh | -38.5% |
| EPS (Basic/Diluted): | ₹1.39 | ₹2.21 | -37.1% |
On a standalone basis, net profit was ₹32.18 lakh, up from ₹6.43 lakh in Q1FY26. Standalone revenue from operations was ₹2,223.77 lakh, significantly higher than ₹746.00 lakh in the previous year. Finance costs on a consolidated basis were ₹1,554.12 lakh, slightly lower than ₹1,702.93 lakh in Q1FY25.
What the Numbers Show
The divergence between revenue growth (8.8%) and expense growth (18.3%), combined with the sharp EBITDA margin contraction from 30.51% to 20.94%, indicates significantly contracting operating margins in the current quarter. While inventory write-downs provided some relief, the high absolute cost of construction and land expenses weighed on profitability. The non-controlling interest share of profit was ₹378.44 lakh, reducing the attributable comprehensive income to ₹599.76 lakh. This suggests that while top-line momentum exists, cost management remains a critical focus area for maintaining earnings stability.
Corporate Actions
The Board fixed the 43rd Annual General Meeting (AGM) for September 24, 2026, at 11:30 am at Ebony Ballroom, "The Regenza" Tunga, Vashi, Navi Mumbai. The record date for dividend payment purposes is set for September 11, 2026. No dividend was declared in this quarter's results. The company operates in a single reportable segment, real estate development, with operations confined to India.
Historical Stock Returns for Arihant Superstructures
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.67% | +2.67% | -1.99% | -6.63% | -36.39% | +116.03% |
What specific cost-control measures or pricing strategies will Arihant Superstructures implement to reverse the sharp EBITDA margin contraction from 30.51% to 20.94% in upcoming quarters?
How does the current rise in construction and land expenses compare to broader industry trends, and is this pressure expected to persist through FY27?
Given the 38.5% drop in net profit despite revenue growth, what is the management's outlook on the sustainability of top-line momentum versus bottom-line recovery?


































