Arihant Capital Markets Q2 profit rises 60% to Rs 20.9019 crore

Arihant Capital Markets Limited reported consolidated net profit of Rs 20.9019 crore for the quarter ended September 30, 2026, up 59.75% from Rs 13.0837 crore a year earlier. Revenue from operations rose 33.05% to Rs 75.8181 crore, supported by broking-related activity and net fair-value gains of Rs 17.216 crore.

How did ACML's Q2 profit change?

ACML's consolidated profit after tax rose to Rs 20.9019 crore in the quarter ended September 30, 2026, from Rs 13.0837 crore in the quarter ended September 30, 2025. Profit before tax increased to Rs 27.9272 crore from Rs 16.9856 crore, while total income rose to Rs 76.1298 crore from Rs 57.3007 crore. There were no exceptional items in either quarter.

The profit increase exceeded the rise in total income because expenditure grew at a slower rate than revenue. Total expenditure increased to Rs 48.4148 crore from Rs 40.0964 crore, leaving profit before the associate share, tax and exceptional items at Rs 27.715 crore, compared with Rs 17.2043 crore. The associate contribution changed to a profit of Rs 0.2122 crore from a loss of Rs 0.2187 crore.

Sequentially, ACML's net profit declined 2.27% from Rs 21.4894 crore in the June 2026 quarter. Total income was also below Rs 78.0481 crore in the preceding quarter, while profit before tax was Rs 27.9272 crore against Rs 28.1554 crore. Basic earnings per share were Rs 1.91, compared with Rs 1.26 a year earlier, while diluted earnings per share were Rs 1.91 against Rs 1.20.

What drove ACML's revenue growth?

ACML's revenue growth was led by broking and related activities, whose segment revenue rose 34.35% year on year to Rs 75.6614 crore in the September 2026 quarter. Financing activities recorded segment revenue of Rs 1.3931 crore, down from Rs 1.6389 crore a year earlier. Total segment revenue was Rs 77.0545 crore before elimination of Rs 0.7906 crore of inter-segment revenue.

Within revenue from operations, fees and commission income reached Rs 34.8648 crore, compared with Rs 33.3407 crore in the September 2025 quarter. Net gain on fair-value changes increased to Rs 17.216 crore from Rs 3.2546 crore, while interest income rose to Rs 23.4792 crore from Rs 20.1659 crore. Dividend income was Rs 0.2581 crore, compared with Rs 0.2219 crore.

The quarter-on-quarter trend was different across income lines. Fees and commission income was below Rs 40.1045 crore in the June 2026 quarter, while net fair-value gains fell from Rs 15.092 crore. Interest income rose from Rs 22.7056 crore in the June quarter, but revenue from operations declined to Rs 75.8181 crore from Rs 77.914 crore.

Which costs and segments affected ACML's earnings?

ACML's broking and related activities generated segment profit before finance costs, exceptional items and tax of Rs 34.5195 crore, up from Rs 22.1381 crore a year earlier. Financing activities generated Rs 0.58 crore, down from Rs 1.3183 crore. The segment figures show that the year-on-year rise in group earnings came from broking and related activities rather than financing.

Fees and commission expenses increased to Rs 18.8164 crore from Rs 14.6348 crore, employee benefit expenses rose to Rs 12.007 crore from Rs 9.492 crore, and finance costs increased to Rs 7.3844 crore from Rs 6.2521 crore. Administrative and other expenditure was Rs 9.2966 crore, compared with Rs 8.8264 crore, while depreciation and amortisation was Rs 0.9201 crore against Rs 0.8868 crore.

Tax expense increased to Rs 7.0253 crore from Rs 3.9019 crore, comprising current tax of Rs 6.742 crore and deferred tax of Rs 0.2833 crore. For the half year ended September 30, 2026, net profit was Rs 42.3912 crore, compared with Rs 25.7861 crore in the corresponding prior-year period. Half-year revenue from operations rose to Rs 153.7322 crore from Rs 107.7513 crore.

What changed in ACML's balance sheet and cash flow?

ACML's consolidated assets stood at Rs 1,140.8449 crore on September 30, 2026, compared with Rs 1,098.1785 crore on March 31, 2026. Loans increased to Rs 354.2433 crore from Rs 298.4965 crore, while securities for trade rose to Rs 106.7506 crore from Rs 86.149 crore. Bank balances other than cash and cash equivalents declined to Rs 465.5354 crore from Rs 480.1379 crore.

Borrowings other than debt securities increased to Rs 263.81 crore at September 30 from Rs 215.2122 crore at March 31. Debt securities declined to Rs 7.43 crore from Rs 23.93 crore. Other equity rose to Rs 472.4358 crore from Rs 430.0125 crore, taking total equity to Rs 483.3971 crore from Rs 440.9738 crore.

Consolidated operating cash outflow narrowed in the half year ended September 30, 2026. Net cash used in operating activities was Rs 20.0281 crore, compared with Rs 103.823 crore used a year earlier. The change included a Rs 55.7468 crore increase in loans, compared with a Rs 141.3054 crore increase in the prior-year period, while trade payables decreased by Rs 31.8409 crore.

Conclusion

ACML's September-quarter results show a 59.75% increase in consolidated net profit to Rs 20.9019 crore, supported by higher broking-related revenue, interest income and Rs 17.216 crore of fair-value gains. Financing revenue and segment profit declined year on year, while higher commission, employee and finance costs absorbed part of the revenue increase.

The disclosed matter to watch is the composite scheme of arrangement approved by ACML's board on August 26, 2025. The scheme involving Arihant Financial Services Limited, Arihant Elite Financial Solutions Limited, Arihant Investment Banking Services Limited and Arihant Money Marvel Wealth Management Limited remains subject to statutory and regulatory approvals, including from the National Company Law Tribunal.