Arihant Superstructures Limited — Q4 FY26 earnings call

Call held 18 May 2026

Management summary

Arihant Superstructures reported strong Q4 and FY26 operational performance, marked by significant revenue growth, increased sales bookings, and substantial project deliveries. The company's GDV expanded to Rs. 14,000 crores, driven by improved realizations and new land additions. While profitability was impacted by higher interest costs and initial project recognition expenses in Q4, management expressed confidence in future margin expansion and positive cash flow generation from FY27, supported by a healthy launch pipeline and strategic focus on mid-income and luxury segments.

Highlights

  • Q4 FY26 Operating Revenue of Rs. 181 crores, reflecting an increase of 18.5% YOY and sequential growth of about 43%.

  • FY26 Sales Bookings reached Rs. 977 crores, an increase of 10% from the previous year, with average price per square foot up 27% YOY to Rs. 7,769.

  • Delivered 1,721 units in FY26, a substantial increase, demonstrating strong execution capability.

  • Gross Development Value (GDV) increased to approximately Rs. 14,000 crores from around Rs. 12,000 crores last year.

  • EBITDA margin improved to 23% for FY26, up by roughly 200 basis points.

Concerns

  • PAT for Q4 FY26 stood at INR 12 crores with a PAT margin of 6.58%, lower than the full-year PAT margin of 8.35%.

  • Interest costs jumped 65% to Rs. 677 million for the financial year ended March 2026.

  • Operating cash flow has been negative for 4 consecutive years, though management expects it to turn positive from FY27.

Key financials

3 periods

Headline

  • Net Worth (as of March 31, 2026)
    ₹450 Cr

Q4 FY26

  • Operating Revenue
    ₹181 Cr
    YoY +18.5% QoQ +43%
  • EBITDA
    ₹30 Cr
    YoY +37% QoQ +4%
  • EBITDA Margin
    16.7%
  • PAT
    ₹12 Cr
  • PAT Margin
    6.6%

FY26

  • Operating Revenue
    ₹551 Cr
    YoY +10.5%
  • EBITDA
    ₹127 Cr
    YoY +21%
  • EBITDA Margin
    23%
  • PAT
    ₹46 Cr
  • PAT Margin
    8.3%

What they filed

Q1 FY27: revenue up 8.8%, net profit down 38.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue112 151 153 121 123 +10%126 −16%181 +18%132 +9%
EBITDA29 43 22 37 30 +4%29 −32%30 +37%28 −25%
Net profit16 25 11 16 10 −38%8 −68%12 +6%10 −39%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹977 Cr

as of 2026-03-31 quantified

10% YoY

Inflow this quarter

₹313 Cr

Execution

Expects larger delivery cycle from FY27 onwards, with over 2,000 units delivery in FY27.

Composition

Mix 10 others
  • Units Sold (FY26) 1,155 units 6.4%
  • Area Sold (FY26) 12.58 lakhs square feet 0.1%
  • Average Price per Square Foot (FY26) 7,769 Rs 43%
  • Average Price per Unit (FY26) ₹84.62 lakh 0.5%
  • Collections (FY26) ₹539 Cr 3%
  • Units Sold (Q4 FY26) 395 units 2.2%
  • Area Sold (Q4 FY26) 3.98 lakhs square feet 0%
  • Average Price per Square Foot (Q4 FY26) 7,870 Rs 43.5%
  • Average Price per Unit (Q4 FY26) ₹79 lakh 0.4%
  • Collections (Q4 FY26) ₹169 Cr 0.9%

Share of order book by other, derived from disclosed amounts

Pipeline

other

New tower 'Benita' in Arihant Aspire at Panvel, new tower in Arihant Aspire, Arihant Avanti at Shilphata, Town Villas (by Q4 FY27)

Strong sales traction and increasing delivery momentum demonstrate the ability to execute efficiently across various cycles, with a strategic shift towards mid-income and luxury segments.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹400 Cr Mix of internal accruals and debt, with debt specifically for gymkhana and hotel development.
    • Gymkhana and hotel development ₹75 Cr
    • Total construction across all projects ₹400 Cr
    So, debt will be taken for the gymkhana and the hotel development, which will, I mean, this financial year, we should do a CAPEX of around 75 crores for these two assets... CAPEX, we intend to spend around (+400) crores in construction this financial year across all the projects. So, that's our target for CAPEX.
  • Debt Gross ₹873 Cr · 1.8× EBITDA Cost 12.8%
    • Repayment Arihant Aspire loan from Tata Capital reduced from Rs. 82 crores to Rs. 40 crores by March end. ₹42 Cr
    So, unsecured is blended average at 13%-13.5%. And secured debt is today average at somewhere around 12.5%. So, the blended cost to the company is around 12.75% with respect to cost of debt... And my last question to you is that, are you considering any equity raise to fund the World Villas plus hospitality CAPEX of Rs. 3.5 billion or will this be entirely debt funded?

Guidance & targets

Pre-sales

  • Pre-sales Growth Pre-sales · FY27 · High confidence 25-30% CAGR
    So, we expect to grow by 25% to 30% CAGR.

    — Parth Chhajer

Volume

  • Delivery Volumes Volume · FY27 · High confidence Over 2,000 units
    It will go upwards of 2,000 very easily.

    — Parth Chhajer

Margin

  • EBITDA Margin Margin · FY27 · High confidence 25-27%
    However, we expect in this FY27 to increase our EBITDA margin and take it to 25%-27% range because the contribution from the new projects will add on to the P&L going further.

    — Parth Chhajer

Revenue

  • Revenue Revenue · FY27 · High confidence Around Rs. 700 crores

    Previously Rs. 500-550 crores → Around Rs. 700 crores

    And because of this, we will be able to jump forward from the 500-550 crores top line to around Rs. 700 crores this year.

    — Parth Chhajer

Sales

  • World Villa Phase-I Sales Sales · FY27 · High confidence 65-70 units
    This financial year, we expect sales of around 65-70 odd more units.

    — Parth Chhajer

Project Completion

  • World Villa Phase-I Completion Project Completion · October 2027 · High confidence October 2027
    For Phase-I, Phase-I is targeted at for completion by 2027 of October.

    — Parth Chhajer

  • World Villa Entire Project Completion Project Completion · 2030 · High confidence 2030
    And completion timeline for the entire project from today, it looks like it will go to 2030.

    — Parth Chhajer

Hospitality Revenue

  • Panvel Hotel First Revenues Hospitality Revenue · 3-3.5 years · High confidence 3-3.5 years from now
    And we will expect 3 to 3.5 years from now to start triggering the first revenues for this.

    — Parth Chhajer

  • Khopoli Hotel First Revenues Hospitality Revenue · 3 years · High confidence 3 years from now
    So, but the timeline for that also, since it's a smaller scale development, it will take about 3 years from now as well.

    — Parth Chhajer

Hospitality Project

  • Panvel Hotel Brand Finalization Hospitality Project · Q1 FY27 · High confidence By Q1 FY27
    So, for the hotel that we are developing at Panvel Chowk, which is inside the World Villa project, we should finalize our brand by this 1st Quarter

    — Parth Chhajer

What to watch in Q1 FY27

Panvel Hotel Brand Finalization

Q1 FY27
Current Excavation done, brand under discussion
Target Brand finalized and announced

Why it matters

Finalizing the brand is a key milestone for the hospitality project, which is expected to generate long-term annuity income.

So, for the hotel that we are developing at Panvel Chowk, which is inside the World Villa project, we should finalize our brand by this 1st Quarter

Risks & concerns

  • Rising Construction Costs

    medium

    Cost could increase by 3-5% due to geopolitical situation and rupee weakness, but management expects to recover this by increasing selling prices for balance units.

    Management acknowledged

  • Negative Operating Cash Flow

    medium

    Operating cash flow has been negative for 4 consecutive years, but management expects it to turn positive from FY27 onwards.

    Management acknowledged

Q&A highlights

8 direct
World Villas and Town Villas Saleable Area Increase Direct
So, to make it more easier to understand for all our investors and shareholders, we converted the RERA carpet area, which was existing in the World Villa and Town Villa project to saleable area so that the parameters for judgment for all the factors leading to the costs as well as the sales for any project can be compared more comfortably and easily, which is why the increment in area is being witnessed.

Clarifies a significant reported increase in saleable area, which could otherwise be misinterpreted as new land additions or aggressive accounting.

Asked by Anisha Agarwal

World Villas CAPEX Funding Strategy Direct
No. This is majorly going to happen through internal accruals from the project and debt. We are not considering any specific equity raised for World Villas project.

Indicates the company's preferred funding mix for large projects, prioritizing internal accruals and debt over specific equity raises for the World Villas project.

Asked by Anisha Agarwal

Impact of Construction Cost Inflation and Recovery Strategy Direct
Well, that is an appeal to the entire public in large that we hold as in the country. However, business cannot stop. So, there is a higher cost which we will have to bear from what we expected to 3% to 5%. And we will be able to recover the same by increasing the selling price for the balance units. So, there's no risk to the company as such.

Management acknowledges rising costs but expresses confidence in their pricing power to pass on increases to customers, mitigating margin risk.

Asked by Anisha Agarwal

Timeline to Become Free Cash Flow Positive Direct
I think next financial year onwards, we should turn free cash flow positive. Because right now, we have last 2-3 years, we have been, we raised money so that we could finish off our projects in time, which is also reflected in the deliveries that we have done in FY26. And it will continue and increase better in FY27 as well. So, I think next 2-3 years, definitely in 2 years, we will be cash flow positive from now on.

Addresses a key concern about sustained negative operating cash flow, providing a clear timeline for improvement and linking it to recent project deliveries.

Asked by Aditya Banerjee

Strategic Shift in Product Mix (Higher Ticket vs. Affordable) Direct
Well, see, we have all the things on the platter. But yes, last year, we saw better performance from mid-income and luxury segment housing. So, things are changing. And yet affordable housing is contributing at large even today with respect to the number of transactions. But the company's focus is now increasing also in the mid-income and luxury housing segment going further.

Confirms a strategic shift towards higher-value segments, explaining the observed trend of lower units sold but higher pre-sales value, which impacts future revenue and margin profiles.

Asked by Aditya Banerjee

Debt Reduction and Cost of Debt Direct
So, unsecured is blended average at 13%-13.5%. And secured debt is today average at somewhere around 12.5%. So, the blended cost to the company is around 12.75% with respect to cost of debt. And repayment for unsecured is, so the loan is from the promoters, it's payable when enabled. So, as the projects are nearing to completion, we should be able to repay back loans. But the first priority goes to the secured loan lenders. So, once that is done, then we repay the unsecured.

Provides clarity on the cost of secured vs. unsecured debt and the repayment strategy, prioritizing secured lenders and indicating that unsecured loans (from promoters) are flexible.

Asked by Aditya Banerjee

Drivers of GDV Increase Direct
The major increase in the GDV from Rs. 12,500 crores to Rs. 14,000 crores has come from across all the projects. So, due to the airport and the infrastructure development around it, we have projected better prices and we are already realizing higher prices now as well, compared to what was projected a year back.

Explains that the significant increase in GDV is primarily due to improved realizations across existing projects, driven by infrastructure development, rather than solely new land additions.

Asked by Roshni

Q4 Margin Decline and Future Margin Outlook Direct
So, in Q4, we started recognition our World Villas Projects. So, the margin declined for obviously due to the interest as well as because when the project gets recognized for the first time, all the pre-operating expenses are also recognized with that. So, by the load of the marketing expenses and etc. that we would have done have also participated in the cost for this quarter. Going further, obviously, we expect, this is for World Villas... So going forward obviously, margins will improve because now that the old backlog of the pre-operating as well as marketing expenses has already been incurred in the P&L. Going further, the new sales as well as the progress from construction will help us realize higher margins going ahead.

Clarifies the reasons for Q4 margin compression (initial project recognition, pre-operating expenses) and provides a positive outlook for margin improvement in FY27 as new sales and construction progress contribute.

Asked by Amish Kanani

3 min read 7 chapters

Detailed narrative

Q4 and Full Year FY26 Financial Performance Overview

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.

Robust Sales Bookings and Enhanced Realizations

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.

Landmark Project Deliveries and Execution Strength

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.

Expanding Gross Development Value and New Project Pipeline

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.

Debt Management and Capital Expenditure Strategy

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.

Strategic Focus on Mid-Income and Luxury Segments

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.

Hospitality Ventures Progress

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.

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