Arihant Capital Q1 FY27 Results (NSE: ARIHANTCAP)
Signal: Margin expansion
The read
Consolidated PAT ₹21.49 Cr (+69.2% YoY) — a sharp rebound from Q4FY26's subdued ₹0.50 Cr, driven by a 53.5% revenue surge and margin expansion. However, EPS growth (+60.7%) lags PAT due to share dilution (+5.3% YoY equity base). The broking segment is firing on all cylinders, while financing remains stagnant. Finance cost nearly doubled YoY, eating into operating gains. The scheme of arrangement is progressing (NSE/BSE no-objection received), a potential value-unlocking catalyst.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹77.91 Cr | +53.5% | +58.9% |
| EBIT | ₹27.2 Cr | +74.7% | |
| Net profit | ₹21.49 Cr | +69.2% | |
| EPS | ₹1.96 | +60.7% | |
| EBIT margin | 34.9% |
P&L walk
Revenue jumped 53.5% YoY to ₹7,791 lakh, driven by a sharp rebound in broking revenue (+54.2%) and a surge in net gains on fair value changes (+119%). Operating profit (before finance cost) grew 74.7% YoY, with EBITDA margin expanding 427bps to 34.9% — the 4th straight quarter of margin expansion on the PRIOR RESULTS SERIES. Higher finance cost (+89.1%) partially offset operating gains. PAT grew 69.2% YoY, aided also by a 37.8% rise in associate profit.
Segments
Broking & Related Activities is the dominant driver: segment revenue ₹7,695 lakh (+54.2% YoY) accounts for 98.8% of total revenue; segment result ₹3,371 lakh (+82.3% YoY), far outpacing total revenue growth, indicating operating leverage in the core broking business. Financing Activities segment is flat (revenue -0.7% YoY). Associate Electrum Capital contributed ₹95.85 lakh profit, up 37.8% YoY.
Key positives
- Consolidated revenue ₹77.91 Cr, +53.5% YoY — strongest growth in 8 quarters, reversing the declining trend of prior 4 quarters.
- Operating margin expanded 427bps YoY to 34.9% — 4th consecutive quarter of margin expansion (per PRIOR RESULTS SERIES).
- Broking segment revenue +54.2% YoY, segment result +82.3% — strong operating leverage.
- Associate profit contribution ₹95.85 lakh, +37.8% YoY — adds ₹0.87 EPS on a consolidated basis.
- Scheme of arrangement gained NSE/BSE no-objection — regulatory path clearing for corporate restructuring.
Key concerns
- Finance cost surged 89.1% YoY to ₹7.40 Cr — cost of funds rising faster than revenue growth.
- EPS growth (+60.7%) lagged PAT growth (+69.2%) — equity dilution from increased share count (5.3% YoY) trimmed per-share benefit.
- Financing activities segment revenue flat (-0.7% YoY) — no growth in the lending/ financing book.
- Impairment on financial instruments rose to ₹4.62 lakh (vs ₹0.27 lakh a year ago) — albeit small, trend warrants monitoring.
Research and educational content only. Not investment advice.