Arih.Found.Hsg. Q1 FY27 Results (NSE: ARIHANT)
Signal: Growth decelerated
The read
The key inflection is a sharp sequential profitability recovery: revenue fell 14% QoQ to ₹135.67 crore as conversions slowed, but EBITDA rose 80% QoQ to ₹37.73 crore and margin expanded to 27.8% from 13.34%; the trajectory now depends on converting ₹168 crore of Q1 pre-sales and launching approved or near-approved projects during FY27.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹135.67 Cr | 60% | -14% |
| Net profit | ₹24.09 Cr | 47% | |
| EBIT margin | 27.8% |
P&L walk
Consolidated revenue was ₹135.67 crore, +60% YoY but -14% QoQ, while EBITDA increased 56% YoY to ₹37.73 crore and PAT rose 47% YoY to ₹24.09 crore; the sequential revenue decline reflected slower buyer conversions, but EBITDA margin remained high at 27.8%.
Key positives
- Pre-sales were ₹168 crore in Q1FY27 and exceeded reported revenue of ₹135.67 crore, while collections reached ₹69 crore, supporting future revenue conversion.
- EBITDA rose 56% YoY to ₹37.73 crore and 80% QoQ, with EBITDA margin at 27.8% versus 13.34% in Q4FY26.
- PAT increased 47% YoY to ₹24.09 crore and 462% QoQ, showing a substantial recovery from Q4FY26's ₹4.29 crore.
- The ongoing portfolio has ₹11,251 crore of GDV across approximately 8 million sq. ft., with multiple large residential projects approved or nearing final approval.
Key concerns
- Revenue declined 14% QoQ to ₹135.67 crore as buyer conversions slowed, making near-term revenue timing dependent on launches and customer decision-making.
- Area sold was 1.45 lakh sq. ft. against ₹168 crore of pre-sales, but the filing does not provide project-wise booking conversion, cancellation or launch details.
- EBITDA margin declined 0.7% YoY to 27.8%, indicating that the strong sequential margin recovery has not yet restored the prior-year margin level.
- Management attributed slower conversions to buyer caution around the broader geopolitical environment and Tamil Nadu state elections, highlighting execution and timing sensitivity.
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