Arihant's Securities half-year profit drops 59% to Rs 17.22 lakh

Arihant's Securities Limited reported profit after tax of Rs 17.22 lakh for the half year ended 30 September 2026, down 59% from Rs 41.73 lakh a year earlier, as other operating income fell by Rs 34.97 lakh to Rs 41.09 lakh despite a Rs 4.84 lakh increase in dividend income.

Why did Arihant's Securities' half-year profit decline?

Arihant's Securities' half-year profit declined because total income dropped 36% year on year to Rs 53.43 lakh in the half year ended 30 September 2026, while total expenses increased to Rs 30.46 lakh from Rs 27.78 lakh. Profit before tax consequently fell to Rs 22.96 lakh from Rs 55.63 lakh, and total tax expense was Rs 5.74 lakh.

Other operating income was the main source of the income movement. It decreased 46% to Rs 41.09 lakh from Rs 76.06 lakh in the comparable half year. Dividend income moved in the opposite direction, rising 66% to Rs 12.20 lakh from Rs 7.36 lakh, while Arihant's Securities also recorded Rs 0.14 lakh of interest on income-tax refund, against none in the previous-year half.

Employee-benefit expense fell to Rs 6.66 lakh from Rs 7.39 lakh, but other expenses rose to Rs 22.76 lakh from Rs 20.39 lakh. The 2026 half-year expenses also included Rs 1.05 lakh of donations, whereas the corresponding 2025 period showed no donation expense. Arihant's Securities reported no finance cost, depreciation, bad-debt charge or non-performing asset provision in either half-year comparison.

How did Arihant's Securities perform in the September quarter?

Arihant's Securities reported quarterly profit after tax of Rs 8.66 lakh for the quarter ended 30 September 2026, compared with Rs 31.37 lakh in the quarter ended 30 September 2025. Quarterly total income declined to Rs 24.44 lakh from Rs 53.01 lakh, while profit before tax decreased to Rs 11.55 lakh from Rs 41.82 lakh.

The September-quarter result was marginally higher than the Rs 8.56 lakh profit after tax reported in the quarter ended 30 June 2026. Total income, however, fell from Rs 28.99 lakh in the June quarter to Rs 24.44 lakh in the September quarter. Other operating income declined to Rs 14.70 lakh from Rs 26.38 lakh sequentially, while dividend income increased to Rs 9.74 lakh from Rs 2.46 lakh.

Quarterly expenses were Rs 12.89 lakh in September 2026, against Rs 11.19 lakh a year earlier and Rs 17.57 lakh in June 2026. Employee-benefit expense rose to Rs 3.93 lakh from Rs 3.05 lakh year on year, and other expenses increased to Rs 8.96 lakh from Rs 8.13 lakh. Total tax expense was Rs 2.89 lakh, compared with Rs 10.46 lakh in the September 2025 quarter.

What does Arihant's Securities' balance sheet show?

Arihant's Securities had total assets of Rs 38.90 crore as at 30 September 2026, compared with Rs 38.69 crore at 31 March 2026. Current investments accounted for Rs 36.95 crore, or most of the reported asset base, and increased by Rs 34.61 lakh from Rs 36.61 crore over the six-month period.

Long-term loans and advances rose to Rs 1.44 crore from Rs 1.37 crore, while trade receivables declined to Rs 9.06 lakh from Rs 23.31 lakh. Cash and cash equivalents fell to Rs 4.17 lakh from Rs 5.13 lakh, and other current assets decreased to Rs 27.89 lakh from Rs 33.63 lakh. The filing listed Rs 9 lakh of non-current investments and Rs 0.06 lakh of deferred-tax assets at both balance-sheet dates.

Equity, comprising Rs 5 crore of paid-up share capital and reserves and surplus, stood at Rs 36.86 crore on 30 September 2026, against Rs 36.69 crore on 31 March 2026. Non-current provisions increased to Rs 1.55 crore from Rs 1.47 crore, while current liabilities decreased to Rs 48.16 lakh from Rs 52.60 lakh. Trade payables were Rs 6.93 lakh and current provisions were Rs 41.23 lakh at the September date.

What do Arihant's Securities' cash flow and disclosures indicate?

Arihant's Securities used Rs 0.96 lakh in operating activities during the half year ended 30 September 2026, after reporting profit before tax of Rs 22.96 lakh and an operating loss after working-capital changes of Rs 18.18 lakh. The indirect-method cash-flow statement included a Rs 5.74 lakh provision for current tax.

The filing's cash-flow comparison is for the full year ended 31 March 2026, when net cash used in operating activities was Rs 12.02 lakh. Cash and cash equivalents were Rs 4.17 lakh at the end of the September 2026 half year, down from Rs 5.13 lakh at its beginning. Arihant's Securities did not report cash flows from investing or financing activities for either period shown in that statement.

Arihant's Securities also disclosed a contingent income-tax liability of Rs 19.17 lakh for assessment year 2012-13, with appeal proceedings pending. The results were prepared under applicable Indian Accounting Standards, except Indian Accounting Standard 109 on financial instruments, according to the notes. N R Krishnamoorthy & Co's limited review, dated 14 November 2026, said nothing had come to its attention suggesting a material misstatement in the unaudited results.

Conclusion

Arihant's Securities' first-half earnings were lower primarily because the Rs 34.97 lakh fall in other operating income was much larger than the Rs 4.84 lakh increase in dividend income. Total income fell by Rs 29.99 lakh, while expenses rose by Rs 2.68 lakh, producing a Rs 24.51 lakh decline in profit after tax from the comparable 2025 half year.

The next reported milestones are the movement in other operating income, dividend income and the Rs 36.95 crore current-investment balance after 30 September 2026. Investors can also watch for any development in the pending Rs 19.17 lakh income-tax appeal, which the filing identifies as a contingent liability rather than a booked liability.