Arihant Superstructures Limited

Arihant Superstructures reported Q4 FY26 operating revenue of Rs. 181 crores, marking an 18.5% YoY increase and a 43% sequential growth from Q3 FY26. Full-year FY26 operating revenue reached Rs. 551 crores, reflecting a 10.5% YoY growth. EBITDA for Q4 stood at Rs. 30 crores (up 37% YoY) with a margin of 16.7%, while full-year EBITDA was Rs. 127 crores (up 21% YoY) with a margin of 23%, an improvement of 200 basis points. PAT for Q4 was INR 12 crores (6.58% margin) and for FY26 was Rs. 46 crores (8.35% margin), with net worth at Rs. 450 crores as of March 31, 2026.

The company achieved Q4 FY26 sales bookings of Rs. 313 crores, representing 395 units and 3.98 lakh square feet, with an average price of Rs. 7,870 per sq ft (up 5.5% YoY). For the full year FY26, sales bookings totaled Rs. 977 crores (1,155 units, 12.58 lakh sq ft), a 10% increase YoY. A significant highlight was the 27% YoY increase in average price per square foot for FY26, reaching Rs. 7,769 from Rs. 6,082 in FY25, primarily driven by a higher contribution from premium and mid-income product categories.

FY26 marked a landmark year for project deliveries, with 1,721 units delivered, a substantial increase over previous years. This included the delivery of 657 units (approximately 7,37,000 sq ft) from two towers in Arihant Aspire Phase-I. Management emphasized the company's strong execution capability and anticipates a larger delivery cycle from FY27 onwards, with expectations of delivering over 2,000 units in the upcoming financial year.

The company's Gross Development Value (GDV) has increased to approximately Rs. 14,000 crores from Rs. 12,000 crores last year. This growth is largely attributed to improved realizations across ongoing projects, spurred by significant infrastructure development around Navi Mumbai, and the addition of new land parcels, such as 20 acres in the Town Villa project last fiscal year. A new tower, 'Benita,' with 3,82,000 sq ft of saleable area, was launched in Arihant Aspire at Panvel, and further new launches are planned for FY27 in Arihant Aspire, Arihant Avanti at Shilphata, and Town Villas.

The company reported secured debt of Rs. 453 crores, with a blended cost of debt at 12.75% (unsecured at 13-13.5%, secured at 12.5%). Debt is project-specific, with the Arihant Aspire loan from Tata Capital reducing from Rs. 82 crores to Rs. 40 crores by March end, with full repayment expected in FY27. For FY27, a CAPEX of Rs. 75 crores is planned for gymkhana and hotel developments, contributing to a total construction CAPEX of Rs. 400 crores across all projects, funded by a mix of internal accruals and debt.

Management noted a strategic shift and better performance in the mid-income and luxury housing segments, although affordable housing continues to contribute significantly by transaction volume. This focus on higher-ticket products has driven the increase in average realization per square foot. The company is confident in its ability to increase selling prices for balance inventory to offset potential 3-5% increases in construction costs due to geopolitical factors and rupee weakness, ensuring margin protection.

Progress on hospitality ventures includes the five-star hotel project within World Villas at Panvel, where brand finalization is expected by Q1 FY27, with first revenues anticipated in 3-3.5 years. Additionally, a four-star hotel in Khopoli, involving an investment of Rs. 60 crores, is currently under approval and is projected to generate revenues in 3 years. These projects are key to creating long-term annuity income streams for the company.