Arihant debt reached Rs 872.9 crore as cash flow stayed negative

Arihant Superstructures Limited reported total debt of Rs 872.9 crore in FY26, up from Rs 299.3 crore in FY22, while operating cash flow was negative in each financial year from FY23 through FY26. Arihant recorded a Rs 10.8 crore operating cash inflow in H1 FY27, the first positive figure in the reported five-period cash-flow series.

Why did Arihant’s debt increase?

Arihant’s reported total debt increased by Rs 573.6 crore between FY22 and FY26, from Rs 299.3 crore to Rs 872.9 crore. The increase was concentrated after FY24, when debt was Rs 477.4 crore: it rose to Rs 738.4 crore in FY25 and then by a further Rs 134.5 crore in FY26. Operating revenue increased from Rs 330.9 crore in FY22 to Rs 551 crore in FY26 over the same period.

The balance sheet shows that non-current borrowings formed most of the funding. Non-current borrowings increased from Rs 314.2 crore in FY23 to Rs 758.6 crore in FY26, while current borrowings rose from Rs 17.7 crore to Rs 115.3 crore. At H1 FY27, non-current borrowings were Rs 795.4 crore and current borrowings were Rs 107.8 crore.

Arihant’s net worth also rose, but by Rs 246.9 crore between FY22 and FY26, less than the Rs 573.6 crore increase in reported total debt. The FY26 balance-sheet borrowing lines total Rs 873.9 crore, Rs 1 crore above the Rs 872.9 crore total-debt figure in the historical-performance table. The presentation does not explain that difference or provide the net-debt-to-equity ratio named in the table heading.

How did Arihant’s operating cash flow change?

Arihant reported negative cash flow from operations for four consecutive full financial years: an outflow of Rs 11.8 crore in FY23, Rs 120.7 crore in FY24, Rs 138.8 crore in FY25 and Rs 70.8 crore in FY26. The FY26 outflow was smaller than FY25’s by Rs 68 crore, but it remained negative despite a Rs 52.2 crore increase in FY26 operating revenue.

The H1 FY27 operating cash-flow figure was a Rs 10.8 crore inflow, compared with the Rs 70.8 crore FY26 full-year outflow. As a half-year figure, it is not comparable with a full financial year. H1 FY27 operating revenue was Rs 264.8 crore and profit after tax was Rs 20.3 crore, against Rs 551 crore and Rs 46 crore, respectively, for FY26.

Financing cash flow was positive in every full year from FY23 to FY26, including inflows of Rs 128.4 crore in FY24 and Rs 218.6 crore in FY25. It changed to a Rs 1.4 crore outflow in H1 FY27. Investing cash flow was also negative in all five reported periods, ranging from a Rs 70 lakh outflow in FY24 to a Rs 76.6 crore outflow in FY25, while closing cash and cash equivalents were Rs 17.3 crore at H1 FY27.

Which assets expanded alongside Arihant’s borrowings?

Arihant’s inventories increased from Rs 483.8 crore in FY23 to Rs 898 crore in FY26, before declining by Rs 6 crore to Rs 892 crore at H1 FY27. Land increased from Rs 293.2 crore in FY23 to Rs 482 crore in FY26 and then to Rs 504.6 crore at H1 FY27. Together, inventory and land rose from Rs 776 crore in FY23 to Rs 1,396.6 crore at H1 FY27.

Total assets increased from Rs 981.2 crore in FY23 to Rs 1,770.2 crore in FY26 and Rs 1,804.9 crore at H1 FY27. Current assets accounted for Rs 1,651.9 crore at H1 FY27, including Rs 87.6 crore of trade receivables, Rs 22.2 crore of cash and bank balances, and Rs 90.2 crore of other current assets. Non-current assets were Rs 153 crore.

The asset mix also changed in property, plant and equipment, which increased from Rs 10.3 crore in FY23 to Rs 109.9 crore in FY26 and Rs 117.3 crore at H1 FY27. Trade receivables rose to Rs 113.8 crore in FY25 before declining to Rs 100.4 crore in FY26 and Rs 87.6 crore at H1 FY27. Arihant’s inventory reduction in H1 FY27 occurred while land increased by Rs 22.6 crore from the FY26 level.

Did Arihant’s revenue growth translate into higher profit?

Arihant’s FY26 operating revenue of Rs 551 crore was the highest figure in the five-year series and was Rs 52.2 crore above FY25. Earnings before interest, tax, depreciation and amortisation increased by Rs 22 crore to Rs 126.6 crore, and its margin increased to 22.98% from 20.97%. Sales value increased to Rs 977.4 crore in FY26 from Rs 888.7 crore in FY25.

Profit after tax did not move in the same direction. It declined to Rs 46 crore in FY26 from Rs 54.7 crore in FY25 and Rs 69.2 crore in FY24, while the profit-after-tax margin declined to 8.36% from 10.97% in FY25. Interest expense increased by Rs 26.7 crore to Rs 67.7 crore in FY26, compared with Rs 41 crore in FY25.

The return measures reported by Arihant also declined from FY24. Return on equity was 11% in FY26, compared with 24% in FY24, and return on capital employed was 11%, compared with 16%. H1 FY27 reported an operating margin of 20.97%, lower than FY26’s 22.98%, while its profit-after-tax margin was 10.10%, above the FY26 level of 8.35% in the consolidated income-statement table.

Conclusion

Arihant’s historical accounts show that borrowings, inventory and land expanded alongside revenue, while cash generated from operations remained negative through FY26. Reported total debt rose to Rs 872.9 crore from Rs 299.3 crore in FY22, compared with net worth of Rs 449.9 crore in FY26. Revenue reached Rs 551 crore, but profit after tax fell to Rs 46 crore as interest expense rose to Rs 67.7 crore.

The next disclosed execution measure is delivery progress on about 5,855 units under execution. Arihant said Phase 1 of larger projects reached delivery stage in FY26, producing 1,721 delivered units after nil deliveries in FY24, and management expects remaining phases to reach delivery stage at regular intervals. The continuation of the Rs 10.8 crore H1 FY27 operating inflow over a full year is another disclosed financial outcome to watch.