Arihant Foundations & Housing Ltd Q2FY26 — Chennai’s Real Estate Comeback Kid Pulls a ₹90 Cr Quarter, ₹20 Cr Profit, and a Joint Venture Party with Prestige

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 blockbusterQ2FY26withrevenue of ₹90.09 croreandPAT of ₹20.05 crore, marking a YoY jump of nearly90%in profit. The stock is flexing at₹1,156 per share, giving it amarket cap of ₹1,152 crore, aP/E of 19.5, andROE 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’sthree-year profit CAGR is a jaw-dropping 233%, and itssales 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 boastsan EV/EBITDA of 15.1,debt of ₹301 crore, anda 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 toFY26, and this 1992-born real estate veteran from Chennai has turned itself into a corporate success story, starringjoint 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 recentagreement with Prestige Estates Projects Ltdfor 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, aprofit of ₹59 crore, and an operating margin of nearly28%. 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 areal estate developer that doesn’t like spending its own money. About95% 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 acrossresidential,commercial, andsenior livingsegments. Chennai remains the core playground, but there’s now an ambitious ₹650 crore expansion plan targetingChennai and Bengaluru.

Completed projects includeViceroy Guindy,Ega Trade Centre,Nitco Park, andInsight Ambattur— all solid names for anyone who’s ever been stuck in Chennai traffic. Upcoming jewels includeVanya Vilaspurusawalkam,Vipassanasri Nagar,Melange Saligramam, and aHilton-adjacent commercial project worth ₹500 crore.

Arihant earns revenue mainly from property sales (86%), but interestingly also reports9% 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

Annualized EPS:₹20.12 × 4 =₹80.48P/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