Arihant Superstructures Limited (NSE: ARIHANTSUP) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Parth Chhajer — Whole-Time Director
Ashok Chhajer — Chairman & Managing Director
Udit Kasera — Chief Financial Officer
Analysts:
Unidentified Participant
Kunjal Agarwal — Analyst
Amit Mehendale — Analyst
Amit Agicha — Analyst
Suyash Bhave — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Arihan Superstructures Limited Q1FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Ms. Kunjal Agarwal from Aryan Capital Markets Limited. Thank you. And over to you, ma’. Am.
Kunjal Agarwal — Analyst
Hello and good afternoon to everyone. On behalf of Aryan Capital Markets, I thank you all for joining into the Q1FY26 earning conference call of Aryan Superstructure Limited today. From the management we have Mr. Ashok Chajir, the chairman and managing director. Mr. Pajal, the whole time director and Mr. Udit Kassera, the CFO of the company. So without any further delay I would hand over the call to the management for his opening remarks. Over to you, sir.
Parth Chhajer — Whole-Time Director
Thank you, Kunjal. Good afternoon everyone and thank you for taking time to join REM Superstructures Limited conference call to discuss Q1FY26 results and business updates. I believe you would have had the opportunity to review our financials and investor. Presentation which has been filed with the exchanges. I will now first introduce our new CFO Mr. Udit Kassera who shall brief you all about the financial highlights for the quarter.
Udit Kasera — Chief Financial Officer
Let me first start by briefing you on the financial highlights for the quarter under review. The consolidated operating revenue for Q1FY26 stood at INR121 crores against Rupees 84 crores in Q1FY25. This is an year on year increase of around 45%. The EBITDA for Q1FY26 stands at INR37 crores against INR11 crores in Q1FY25 which is an increase of 247% on a year. On year basis, the EBITDA margin for Q1FY26 stands at 30.5% versus 12.6% for the previous year. The profit before tax for Q1FY26 stands at 21.2 crores versus 2.6 crores for the previous year. The profit after tax for Q1FY26 stands at INR 15.9 crores against Rupees 2 crores in Q1FY25 which is a yoy increase of around 695%.
The net worth of the company has increased to INR 421.9 crores versus rupees 325.3 crores which is again an year on year increase of 29.6%. With this I hand over the call to Mr. Path Chad to talk about the operational highlights.
Parth Chhajer — Whole-Time Director
Yes. Now talking about the key operational highlights for the quarter, the company achieved sales bookings of 192 units which is equivalent to 2.01 lakh square feet of area amounting to 151 crores in value. The average price per square foot is around 7493 rupees per square foot versus 5063 rupees per square foot compared to the last year. So this is a price growth of 48%. This is due to major contribution coming in from the premium housing segment which has led to the increase in the average price for the quarter. The average price per unit stood at 78 lakhs.
The total collections for the quarter stood at 126 crores. In this quarter we also made significant delivery progress in the projects located at Kharger which is Aryan Dalishan and Aryanthanmol which is at Badlapur. So including the rental housing component we. Have handed over 803 units for the quarter which is spanning to 7,23,000 square feet. In terms of area, the unsold inventory now at the end of the quarter stands at 94 units which is valued at 21 crores. On the business development front, the company expanded its development footprint with the acquisition of additional 11 acres at Chowk Maniwali which is for the project Town Villas and the total project size has now. Increased to 88 acres.
Apart from this we also acquired additional 1.5 acres of land which will be utilized towards the 5 star hotel which is under the development in the wholly. Owned subsidiary Dwell Cons Private Limited. With this now the total hotel land will be at around 10 acres. And the total project land for the project World Villas including the Gymkhana and. The hotel and retail now stands at 90 acres.
In addition, we have also strengthened our capital base through the successful completion of the warrants issued back in 2023. Being fully converted to equity which has helped us raise 37.6 crores in total. So this has this utilization is also happening towards the business development in the current quarter. Looking ahead now talking about the markets, we believe overall in Mumbai MMR we see good amount of supply which has come in with many projects now starting to take off. And this may lead to. This will lead to High competition and. May lead to slightly lower margins. While at Ariant we operate at 12 different geographies, 12 different micro markets. A
nd in some of them we have taken the first mover advantage. Like World Villas and Town Villas at Chowk which is near Panvel. So in such micro markets our premium development villa offering is unique. And there is no peer level competition. As on date which is ensuring higher margins to us. Both these projects, Town Villas and World Villas will offer anywhere of around 1800 plus villa units which constitutes of 3750. Crores in terms of GDP. So which is over 25% of our total portfolio. So we believe we have safeguarded ourselves and moved slightly away from the highly competitive market. And over there we are also envisaging higher margins which will yield good results. To the company in the future.
Although the region of Navi Mumbai is poised for major growth. Due to the Navi Mumbai International Airport being expected to start operations by October 2025. And Atel C2 which has been a big game changer is already operational. And with the big infrastructure and industrial and corporate parks coming up, we envisage. 10 lakh new jobs to be created. In this region for the next decade. Which will fuel in lot of residential demand as well. So this part of the city continues to have good catchment and good livability. Regardless of the high competition that has come in. The entire Mumbai region and Arianes Land. Bank along with the upcoming launches are well positioned across these high opportunity corridors. And we remain committed to addressing the evolving aspirations of home buyers across the entire NMR spectrum.
So now with this I open the. Floor for question and answers. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one to ask on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Devesh Shah, an individual investor. Please go ahead.
Unidentified Participant
Thank you for taking a question. Can you hear me?
operator
So we can hear you but your voice is breaking. Could you go to a better reception area?
Unidentified Participant
Just a second. Is it better now?
operator
Better, sir.
Unidentified Participant
Yeah. Okay. Sir, so I would like to ask a question. So didn’t increase competition.
operator
Sorry to interrupt sir, but your voice is still speaking.
Unidentified Participant
I’ll rejoin in the queue. Okay. Just a second.
operator
Next. The next question is from the line of Path Patel, an individual investor. Please Go ahead.
Unidentified Participant
Good afternoon sir. Am I audible?
operator
Yes.
Unidentified Participant
Yeah sir, so what is the Plan capex for FY26 across categories and how does it align with the 125 billion GDG from the 1800 square feet under development?
Parth Chhajer
So the planned construction capex for FY26. Is around 450 crore with respect to. Construction this is towards the residential development. And towards the annuity aspects. We should be spending somewhere around 50 crores in this financial year.
Unidentified Participant
Okay so secondly given the 65 Q1 Q in Q1 after 26 what is, what are the operational levels such as procurement efficiencies or vendor negotiations contributed to this and how sustainable are they in this high competition market?
Parth Chhajer
We have been saying that we’ll be. Able to achieve around 30, 33 and. EBITDA margin and the in this quarter because Arian Talishran was completed. So the estimates had to be corrected. For the projected costs and that has. Resulted in better margins coming in this quarter.
Unidentified Participant
Okay sir. And sir could you discuss the impact of pricing labor and material cost on the estimated balance cost to complete the INR1 12 billion for the ongoing projects and are there any hedging mechanisms in clinics.
Parth Chhajer
We consider inflation in our pricing. With our construction estimates. And I mean in the last few months we’ve not seen any significant price rises with respect to construction or even labor contracts. And I think the total capex for our 12,500 crore GDV will be around. 6,300 crores with respect to the construction capex that is outlined.
Unidentified Participant
Okay and so my last question is that what is the strategy for the inventory management of unfold units valued at 24 like approximately 24 billion across the ongoing projects and how will the pricing adjustments be made in the competitive micro market like Kanwid and Karmia?
Parth Chhajer
With respect to the pricing strategy in Fargar and Pand we are selling similar to the levels that were happening in the last year. So not a significant price tight has been taken because our focus is to. Get more velocity for the next two. Three months and so that the projects. Are in a smooth phase of completion. Aryan Dalishan we have some ready inventory. Which is valued at around 7 and a half crores and in the next. Couple of quarters we’ll be able to. Sell that out as well. As a company we don’t have significant ready inventory. It’s hardly 21 crores in terms of value.
So we feel we are comfortable on that front when compared to the total GDV that we are executing under construction inventory. Like you highlighted around 3000 odd crores which is there. Our strategy is that we keep selling, take significant huge price rises but still stagnantly take a 5% 7% price rise. As per the market situations and yet not affect the velocity of the sales. So that’s the main goal for us as a company that we want to. Do more pre sales this year so that it helps us in the coming months.
Unidentified Participant
Thank you sir.
operator
Thank you. Participants who wish to ask a question may press Star and one now. To ask a question please press Star and one now. I repeat, participants who wish to ask a question may press star and one at this time. To ask a question please press Star and one now. The next question is from the line of Amit from Robocapital. Please go ahead.
Amit Mehendale
The target for FY26 and 27.
Parth Chhajer
Sorry I missed your first line. Can you repeat?
Amit Mehendale
Yeah, I was just looking to check. You know the sales target. You know what is our internal goal for sales for pre sales for FY26 and 27?
Parth Chhajer
Yeah. FY26 we are looking at around 1100 odd crores. With respect to pre sales we have good lineup of launches coming in. Q2, Q3, Q4, FY27 we will be looking at around 1500 crore of pre sales.
Amit Mehendale
And would you link similar margins as. In the past or.
Parth Chhajer
With respect to year on year basis margins will better. From the past years. If we look at it from a year on year basis. And because the new projects that have been taken are yet to. Some of them are yet to reach the threshold of revenue recognition and which have started contributing they are enabling us. To do better margins.
Amit Mehendale
Okay. And so last question is on the. Debt level how.
Parth Chhajer
The debt will increase in the coming one and a half years, two years. Because debt is majorly going towards the making of the annuity assets. So we expect an additional 150 crore. Of debt to increase because of the development of the Gymkhana and the hotel.
Amit Mehendale
That’s it for me.
operator
Thank you. Before we take the next question we would like to remind the participants to press star and one to ask a question. The next question is from the line of Devia Shah, an individual investor. Please go ahead. Hello sir. Your voice is still breaking, sir.
Unidentified Participant
Yeah. Okay. Now is it better?
Unidentified Participant
Yes sir. Yeah. So I would like to ask what. Is the realization in different projects and how much hike do we see? What is the general cost of construction?
Parth Chhajer
It varies. The cost of construction varies from the rise of the building. So like 7 storey will cost you somewhere around 18, 1900 rupees square foot. 15 storey will be around 2200 rupees square foot. And then like 25, 30 storey will. Be around 2600 rupees square foot. And any buildings which are 40 storey. And above will be costing 3000 rupees per square foot and upwards. So costing is majorly depending on the rise of the building and the amount. Of parking you’re making, the podiums etc. But with respect to the total selling price, our construction cost is all majorly. Around 50% of the total sale value. Your first question was with respect to micro market pricing if I’m not wrong.
Unidentified Participant
Yeah, yeah. So like what is the realization in different projects? Like how what the hike do we see in that?
Parth Chhajer
Right. So I mean it vary from project to project. Ariant Alisha. Right now we are trading at around 8 and a half thousand rupees a square foot. And we expect over there because the. Product is ready, phase one is delivered. Phase two also is almost nearing completion. And next year we should be completing that also with oc. So we expect that the price could. Increase to around 9,000 in that region. In another location like Advika for example. The current trading prices are around 13,400 rupees per square foot on saleable area. And with the nearing completion phase of this project also we expect it could. Increase to around 14,000, 14,200 rupees in the coming year.
So anywhere around 7, 10% price rises can be expected in mid income and. Premium luxury segment wherever the project is progressing at a good speed and nearing towards completion. So this is a typical scenario for. The general market and I think we are in line with the trends. Some areas may not see that level of price rise so majorly in affordable housing. Maybe your first sale versus last sale. In the span of three and a half four years may see a price rise of only 7 to 10% in a few locations. Maybe like a Badlapur or a Karjat. Or Titwala or Kopoli for example. So it varies from micro market to micro market. Sorry, your voice is breaking.
operator
Hello sir, are you there? No sir, your voice is still breaking.
Unidentified Participant
Is it?
operator
Yes sir. Yeah.
Unidentified Participant
What is the time to complete World Villa?
Parth Chhajer
We just started off with the World. Villas project like a few months ago. Full swing in construction and we expect. That project to take around four and a half to five years. Town Villa. We have expected that by April 2026. We’Ll start construction and it will take five to six years from there to complete it.
Unidentified Participant
That’s it. For me.
operator
Thank you. Participants who wish to ask a question may press star and one at this time. The next question is from the line of Amita Gija from HG Hawa Please go ahead.
Amit Agicha
Yeah. Good afternoon to everybody. Am I audible?
Parth Chhajer
Yes.
operator
Yes sir.
Amit Agicha
Thank you for the opportunity sir, what is the blended cost of borrowing Currently.
Parth Chhajer
Blended cost of borrowing is around 12. And a half percent.
Amit Agicha
Is there any scope for refinancing to reduce the interest burden?
Parth Chhajer
No, I mean most of our debt like from HTC bank or SBI is. Around 10% so there’s no scope of refinancing there and even the debt from. Tata Capital or STCI that is also. Around 1112 percent in the range of that so I mean there’s no big scope of refinancing in this situation and we don’t usually change just for improvement of 50 basis points we value the relationship with our lender Also.
Amit Agicha
What are the FY26 projections for operating cash flow? Post debt servicing in Capex.
Parth Chhajer
Debt will take somewhere around 70 odd crores of. Cash flow for this year so to. Answer your question we expect 600 crores. To come from customer receipts in the FY26 around 70 crore will go towards that servicing Then some amount will around. Maybe some will go towards repayment but then we’ll be adding on so that may be net off similar Then administration expenses would be around 45 odd crores. Marketing expenses will be around 25 crores odd and around 450 odd crores is what we expect towards construction.
Amit Agicha
Like can you share the market trend like what you are having? Like are you the leader or the second leader?
Parth Chhajer
No, I think we are one of. The front runners in this market we have great position we have the largest geographical presence we have the best in choice of inventories also like ranging from 20 likes to 4 crores in terms. Of value we have all the products. Right from 1, 2, 3, 4 BHK. To villas so the spread that we. Have, the portfolio that we are catering and the size in terms of the scale that we are operating on is at the top we compete with the best of the best who are our. Neighboring players and competitors and we are able to outage them also in certain. Locations and the micro markets with respect to pricing, with respect to sales, with respect to velocity as a company the. Coming years we see because of this position that we hold we’ll be able. To encash on the brand equity and on the value also for the company which will yield in good results in the coming months and years Ahead.
Amit Agicha
Do you see like our company again superstructure being Pan India?
Parth Chhajer
No. Our focus for last four, five years. And for the next coming four, five years also is in this MMR region. We don’t plan to expand outside of. MMR because given the capital in hand and the liquidity, we are able to. Comfortably deploy the same in mmr. We need not go outside to hunt. For any opportunities because the world is coming here. Every developer across India wants to have. One project at least in this location of Navi Mumbai and the vicinity of the airport area. And we are in the best phase of our company. We are in the best. We are present at the best locations. Like 75% of our portfolio is around. The airport where the big infra development. Is just about to take off and. Big jobs are going to be created. Over the next decade. Around 10 lakh jobs are envisaged to be created. So we want to be in this location. We want to have a great position. Going ahead also in this location and show our investors that we are capable of executing and delivering.
Amit Agicha
Are you comfortable with the labor availability and the raw material like the sourcing and the cost?
Parth Chhajer
Yeah, we are able to run the operations with no difficulty. Obviously during the month of April and. May there is a shortage of labor across the entire industry because major of them go back to their hometowns and villages. But our sites are back on track. From June onwards and execution is happening at good pace. So there’s no difficulty for us as. A company because we have our very. Old vendors and contractors who have been. With the company for the last two decades and we hold good relationship with them also which is working out very good for us.
Amit Agicha
What are your long term ROE ROCE targets and during policy.
Parth Chhajer
With respect to ROE, we. Like to be at 20, 25% of the total in terms of ROE. That’s the target.
Amit Agicha
It’s a dividend policy.
Parth Chhajer
Dividend last year was 15% on the face value.
Amit Agicha
Is there any plans to scale up the annuity income streams beyond hospitality at Gymkhana?
Parth Chhajer
As of now we are focused on hospitality in Gymkhana because the locations where we hold sizable land parcels are fit. For hospitality or this segment. We can’t be doing retail or offices in these locations today. So if any new opportunity comes, we. May look at it. But not big plans to enter into. Any office leasing model yet.
Amit Agicha
So would it be possible for you to share some more details about the hotel project which you’re seeing?
Parth Chhajer
We are in the phase of finalizing the agreement. Post finalization of the agreement, we’ll Be happy to come back to the markets and speak about it. The design is done. We’ve completed the approval process also. Work will start from October onwards and we expect the asset to be ready in three and a half to four years.
Amit Agicha
Your last question about redevelopment. Do you feel like you will be entering into.
Parth Chhajer
Yes, we are looking and scouting for. More redevelopment opportunities on asset light model. Like we highlighted in the last con call. This year we will not be doing. Huge acquisitions with respect to outright purchase of lands. But focus will be to enter into three to four or couple of them at least the redevelopment model projects. So we are in the phase of almost finalization with a couple of societies right now. So once done we’ll be happy to announce.
Amit Agicha
I appreciate answering all the questions, sir. Thank you. And all the best for the future.
Parth Chhajer
Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one at this time. To ask a question, please press star and one. Now the next question is from the line of Suyesh Bhave from Wealth Guardian. Please go ahead.
Suyash Bhave
Am I audible?
Parth Chhajer
Yes.
Suyash Bhave
Yeah. So regarding that environment clearance issue from the courts. What is the update on that while still hindering our operations?
Parth Chhajer
Yeah, so just like around last week. There was a very good positive update on environment clearance. The Supreme Court has now cleared the matter. And you know environmental clearance processes will. Start from this month end and we’ll. Wait for our turn in the queue. Which should come in the next two to four months depending on the project. So. So safely I think we can say by December we should be having all. The environmental clearances for the projects. Aryan T. Avanti at Sri Fata, Ariant 7, Anaika at Taloja. I mean before December 25th we should. Be having those environmental clearances and Q4. Onwards we’ll be able to start the. Construction for those projects which will then. Help us start recognizing revenues for the. Same from next financial year onwards.
Suyash Bhave
Okay, understood. And these two land buses that we recently purchased, what was the cost of acquisition for them?
Parth Chhajer
It’s around 300 crores for both.
Suyash Bhave
No, no, I mean the increment. The 11 acres and 1 1/2.
Parth Chhajer
Or the. The ones purchased which quarter?
Suyash Bhave
The 1 1/2 acres. Yeah .
Parth Chhajer
Yeah 1 1/2 acres which was the hotel land. That is somewhere around 4.8 crores.
Suyash Bhave
Okay.
Parth Chhajer
And the 11 acres will be around 35 crores I assume I’ll just. Yeah. Check on the number. But somewhere around this number.
Suyash Bhave
Oh, okay. Understood. Got. Got. Fair. Understood.
Parth Chhajer
No, sorry. 11 meters will be 1.5 average. That will be around 17, 18 crores. My bad.
Suyash Bhave
Okay. Okay, Understood. Thank you. Thank you for answering the question.
operator
Thank you. Participants who wish to ask a question may press star and one at this time. To ask a question, please press star and one now. I repeat, participants who wish to ask a question may press star and one now. To ask a question, please press star and one now. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to Ms. Kunjal Agarwal for closing comments.
Kunjal Agarwal
Thank you to the management and participants for joining the Q1FY26 conference call of Aryan Superstition Infrastructure Limited. I would hand over the call to the management for the closing remarks.
Parth Chhajer
Yes, thank you everyone for joining the earnings call. I hope you were able to get. The answers to all the questions to your satisfaction. If you have any further questions or would like to know more about the. Company, please feel free to reach out to our investor relations team at Valorum Advisors. Or you can contact our finance department. And our CFO and team will take it forward. We also thank Arian Capital for hosting. This call for us as well. Thank you very much.
operator
Thank you on behalf of arihant Capital Markets Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.