Arihant Q2 revenue rises 9% as EBITDA margin falls 338 bps

Arihant Superstructures Limited reported Q2-FY27 operating revenue of Rs 133.2 crore, up 8.62% year on year, but earnings before interest, tax, depreciation and amortisation (EBITDA) margin fell 338 basis points to 20.99% as operating expenses rose 13.59%. Profit after tax increased 6.00% to Rs 10.6 crore, while sales value and area sold remained below Q2-FY26 levels.

What did Arihant report in Q2-FY27?

Arihant reported higher revenue and profit in Q2-FY27, although EBITDA was lower than a year earlier. Operating revenue rose to Rs 133.2 crore from Rs 122.7 crore in Q2-FY26 and Rs 131.6 crore in Q1-FY27. EBITDA was Rs 28 crore, compared with Rs 29.9 crore a year earlier and Rs 27.6 crore in the preceding quarter.

Profit after tax (PAT) reached Rs 10.6 crore, against Rs 10 crore in Q2-FY26 and Rs 9.8 crore in Q1-FY27. Basic earnings per share (EPS) increased to Rs 1.56 from Rs 1.41 a year earlier and Rs 1.39 sequentially. The detailed financial table shows revenue growth of 8.62% year on year while EBITDA declined 6.63%.

Why did Arihant’s EBITDA margin decline year on year?

Arihant’s disclosed figures show that operating expenses rose faster than operating revenue, coinciding with the 338-basis-point year-on-year EBITDA-margin decline. Operating expenses increased 13.59% to Rs 105.3 crore in Q2-FY27 from Rs 92.8 crore in Q2-FY26, compared with 8.62% growth in operating revenue to Rs 133.2 crore. EBITDA margin consequently moved to 20.99% from 24.37% in the detailed financial table.

The presentation does not provide an expense-category breakdown or state a specific reason for the margin movement. Sequentially, EBITDA margin increased by 5 basis points from 20.94% in Q1-FY27, as EBITDA rose 1.48% to Rs 28 crore and revenue rose 1.24% to Rs 133.2 crore. PAT margin also improved sequentially by 49 basis points to 7.92%, though it was 23 basis points below the Q2-FY26 level of 8.15%.

The key-performance-indicator page and detailed financial table contain small differences in the Q2-FY26 comparison. The former lists revenue at Rs 123 crore and EBITDA margin at 24.48%, while the detailed table lists Rs 122.7 crore and 24.37%, respectively. The reported 338-basis-point year-on-year margin change is consistent with the detailed table’s 24.37% base.

How did Arihant’s sales and collections change in Q2-FY27?

Arihant’s Q2-FY27 sales value, units sold and area sold were below Q2-FY26, while collections were higher year on year. Value of sales was Rs 172.7 crore, down from Rs 235.8 crore in Q2-FY26 and marginally below Rs 173.1 crore in Q1-FY27. The company sold 236 units, compared with 280 a year earlier and 221 in the prior quarter.

Area sold was 2.21 lakh square feet, down from 2.89 lakh square feet in Q2-FY26 and 2.31 lakh square feet in Q1-FY27. The quarter’s 236 units represented a sequential improvement in unit count, but not in area sold or sales value. The presentation does not provide project-level pricing, product mix or cancellation data to explain the difference between the unit and area trends.

Collections stood at Rs 154.5 crore in Q2-FY27, compared with Rs 111 crore in Q2-FY26, an increase of Rs 43.5 crore. Collections were below the Rs 161.2 crore reported in Q1-FY27. Unsold inventory was 275 units valued at Rs 52.9 crore, while pre-sales were stated as Rs 172.7 crore for the quarter.

What does Arihant’s first-half performance show?

Arihant’s H1-FY27 operating revenue increased, but EBITDA and PAT declined from H1-FY26. Operating revenue for the first half was Rs 264.8 crore, up 8.70% from Rs 243.6 crore. Operating expenses rose 18.40% to Rs 209.3 crore from Rs 176.8 crore, resulting in EBITDA of Rs 55.5 crore, down 16.95% from Rs 66.8 crore.

The first-half EBITDA margin was 20.97%, down 647 basis points from 27.44% in H1-FY26. PAT declined 21.37% to Rs 20.3 crore from Rs 25.9 crore, and PAT margin fell 294 basis points to 7.68%. Basic EPS increased 5.80% to Rs 3.83 from Rs 3.62, according to the presentation.

Interest expense declined 10.90% in H1-FY27 to Rs 30.4 crore from Rs 34.1 crore, while depreciation increased 6.89% to Rs 1.4 crore. Profit before tax was Rs 26.8 crore, down 22.68% year on year. The lower interest cost did not offset the reduction in EBITDA over the six-month period.

How is Arihant building recurring-income assets?

Arihant’s management says it intends to complement real-estate development with annuity-generating assets, including Club 10 Gymkhana and a hospitality project. Management described Club 10 Gymkhana as a development asset intended to create a recurring-revenue stream. The presentation provides no revenue target, opening date or capital-spending figure for the project.

Dwellcons Limited, Arihant’s wholly owned subsidiary, has entered a hotel-management agreement with ITC Hotels Limited for a 227-room luxury hotel under the Mementos brand. The planned hotel includes 44 suites, more than 70,000 square feet of indoor banquet space and 100,000 square feet of outdoor event space. Management said the development targets leisure, meetings, incentives, conferences and exhibitions demand, and destination weddings along the Mumbai-Pune corridor.

Arihant also reported 21 million square feet under development across 19 projects and 12.7 million square feet developed in the Mumbai Metropolitan Region and Jodhpur. These development figures provide the operating base alongside the hospitality and club initiatives. The presentation does not quantify their expected contribution to revenue or EBITDA.

Conclusion

Arihant’s Q2-FY27 results combine 8.62% revenue growth and 6.00% PAT growth with a 338-basis-point year-on-year EBITDA-margin reduction. Operating expenses rose 13.59%, faster than operating revenue, while sales value fell to Rs 172.7 crore and area sold declined to 2.21 lakh square feet.

The next quarterly disclosures will indicate whether collections of Rs 154.5 crore, sequential unit-sales growth to 236, and the 5-basis-point sequential EBITDA-margin improvement continue. Arihant’s disclosed Club 10 Gymkhana recurring-income plan and the 227-room Mementos hotel project also remain matters to watch, as the presentation provides project features but no operating timetable or financial target.