Arihant Super.

Arihant Superstructures reported a Q4 FY25 operating revenue of INR 153 crores, a 5% decrease YoY from INR 161 crores in Q4 FY24. EBITDA for the quarter stood at INR 22 crores, down 37% from INR 35 crores in the prior year, resulting in an EBITDA margin of 14.55%. Despite this, the company achieved sales bookings of INR 186 crores from 2.49 lakh square feet, with the average price per square foot increasing 20% YoY to INR 7,462.

For the full financial year 2025, the company recorded an operating revenue of INR 499 crores and an EBITDA of INR 104 crores, with an EBITDA margin of 20.91%. Profit after tax for FY25 totaled INR 255 crores. Total sales bookings for the year reached INR 889 crores from 14.61 lakh square feet across 1,568 units. Collections for FY25 grew 8% YoY to INR 545 crores, demonstrating healthy cash flow.

A significant factor impacting the company's growth and revenue recognition in FY25 was the Supreme Court's stay on environmental clearances for projects within a 5-kilometer radius of eco-sensitive zones. This stay, in effect for about a year, has halted construction and revenue booking for key projects such as Arihant Anaika, Arihant World Villas, and Arihant Avanti. Management expects these clearances to be overturned within the next 2-3 months, with revenue recognition potentially resuming from Q4 FY26.

The company experienced margin compression in Q4 FY25, with EBITDA margin declining to 14.55%, primarily due to increased interest costs and higher employee expenses. Investments of approximately INR 300 crores in land over the past two years, funded through internal accruals and debt, contributed to the rise in interest costs. Additionally, the hiring of professionals for sales and engineering departments led to increased employee costs, impacting the profit after tax.

Arihant Superstructures maintains a positive outlook, targeting 20-25% growth in the coming financial years. The company holds a substantial land bank of over 307 acres, supporting future launches. Planned new phases for FY26 include the third tower at Arihant Avanti in Shilphata, launches at Arihant Aspire Panvel (pending August approvals), and the final towers for Arihant Aloki at Kharghar, alongside future phases for Arihant Anmol at Badlapur.

The company reported a net debt of approximately INR 685 crores, with INR 385 crores being secured debt. Management expressed comfort with net debt levels up to INR 750-800 crores. Future debt will primarily be utilized to fund annuity assets, specifically the development of the Gymkhana and a 5-star hotel, which are part of the World Villas project. The company plans a construction capex of around INR 650 crores for FY26.

The average price per square foot for Q4 FY25 reached INR 7,462, a 20% increase YoY, driven by strong sales at Arihant Advika. Management expects the blended average price per square foot to increase to INR 6,500-6,700 in the coming quarters and around INR 6,500 for FY26. Key micro-markets like Panvel (Arihant Aspire at INR 7,100/sq ft), Taloja (INR 4,800-5,200/sq ft), and Kharghar (INR 8,600/sq ft) are expected to see 5-7% price increases due to ongoing infrastructure development and proximity to the upcoming airport.