1. At a Glance
Arihant Foundations & Housing Ltd (AFHL) — Chennai’s own real estate phoenix that has resurrected itself more times than a daily soap hero — just reported a blockbuster Q2FY26 with revenue of ₹90.09 crore and PAT of ₹20.05 crore, marking a YoY jump of nearly 90% in profit. The stock is flexing at ₹1,156 per share, giving it a market cap of ₹1,152 crore, a P/E of 19.5, and ROE of 16.5%.
Once a debt-heavy struggler, Arihant now seems like that kid from your school who suddenly returned from a break with six-pack abs and a joint venture with Prestige Estates Projects Ltd. The company’s three-year profit CAGR is a jaw-dropping 233%, and its sales growth over five years stands at 35%.
But before we pop the champagne, remember — this is a Chennai real estate play. Drama is included in the price. The firm now boasts an EV/EBITDA of 15.1, debt of ₹301 crore, and a debt-to-equity ratio of 0.88. No dividends, no nonsense — just pure development hustle.
So what’s happening inside this ₹1,100 crore machine that builds luxury condos, IT parks, and your retirement dreams (senior living, mind you)? Let’s crack open this foundation brick by brick.
2. Introduction
Once upon a time, in the land of filter coffee and coastal humidity, a small builder named Arihant Foundations decided that “building homes” wasn’t dramatic enough. So they added a few IT parks, commercial towers, and senior-living communities to the recipe. Fast forward to FY26, and this 1992-born real estate veteran from Chennai has turned itself into a corporate success story, starring joint developments, new land banks, and a big fat cheque from Madhusudan Kela’s Lotus Family Trust.
Arihant isn’t just building homes anymore — it’s building partnerships. The recent agreement with Prestige Estates Projects Ltd for co-developing Chennai projects sent the message loud and clear: the Lunawaths (yes, the promoter family) are done playing in the kiddie pool. They’re now swimming with the sharks.
And just when the market thought Chennai’s property scene had gone cold, Arihant dropped FY24 sales of ₹290 crore, a profit of ₹59 crore, and an operating margin of nearly 28%. This isn’t a builder — it’s a spreadsheet in beast mode.
So if you ever thought “real estate is boring,” welcome to Arihant Foundations — where each quarter reads like a soap opera of funding, acquisitions, and floor space index.
3. Business Model – WTF Do They Even Do?
Let’s simplify. Arihant Foundations is basically a real estate developer that doesn’t like spending its own money. About 95% of all projects are joint developments, meaning Arihant brings the brand, project management, and construction chops — while the landowners bring the dirt (literally).
Its projects range across residential, commercial, and senior living segments. Chennai remains the core playground, but there’s now an ambitious ₹650 crore expansion plan targeting Chennai and Bengaluru.
Completed projects include Viceroy Guindy, Ega Trade Centre, Nitco Park,
and Insight Ambattur — all solid names for anyone who’s ever been stuck in Chennai traffic. Upcoming jewels include Vanya Vilaspurusawalkam, Vipassanasri Nagar, Melange Saligramam, and a Hilton-adjacent commercial project worth ₹500 crore.
Arihant earns revenue mainly from property sales (86%), but interestingly also reports 9% income from interest, likely from its labyrinth of subsidiaries and JDA receivables.
So in summary:
They don’t own much land. They don’t build without partners. And they don’t miss a chance to join hands with whoever’s big enough to help them unlock a new PIN code. It’s capital-light real estate — a dream business if you can manage the egos, the regulators, and the cement bills.
4. Financials Overview
| Metric (₹ Cr) | Sep Q2FY26 (Latest) | Sep Q2FY25 (YoY) | Jun Q1FY26 (QoQ) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 90.09 | 48.0 | 83.0 | 87.7% | 8.5% |
| EBITDA | 24.0 | 16.0 | 22.0 | 50.0% | 9.1% |
| PAT | 20.05 | 11.0 | 16.4 | 82.3% | 22.3% |
| EPS (₹) | 20.12 | 12.28 | 16.41 | 63.8% | 22.6% |
Annualized EPS: ₹20.12 × 4 = ₹80.48
P/E (based on CMP ₹1,156): 14.36
That’s cheaper than DLF, Lodha, or Godrej — and yet, Arihant’s quarterly growth curve looks like it was drawn with Red Bull in hand. The company’s operating profit margins remain a strong 27%, suggesting management has finally discovered how to make money from cement, something half of Indian builders still can’t.
5. Valuation Discussion – Fair Value Range
Let’s calculate fair value using three simple models.
(a) P/E Method
Annualized EPS = ₹80.48
Industry average P/E = ~35 (per Screener)
Arihant’s current P/E = 14.36
Even with a conservative discount (say, 30% lower than industry for smallcap risk), a justified range =
= ₹80.48 × (25–35) = ₹2,012 – ₹2,817 per share
(b) EV/EBITDA Method
EV = ₹1,418 Cr
EBITDA (FY25) = ₹80 Cr
EV/EBITDA = 17.7x
If we value fair range at 12x–18x,
Fair Enterprise Value = ₹960 – ₹1,440 Cr
Subtract debt (₹301 Cr) → Equity Value = ₹659 – ₹1,139 Cr
Per share value (assuming 1 Cr shares) = ₹659 – ₹1,139 per share
(c) DCF (simplified, assuming ₹59 Cr FY25 PAT, 12% growth, 12% discount rate, 5-year horizon)
Fair equity value = ₹1,000 – ₹1,300
