📌 At a Glance
Arihant Superstructures Ltd (CMP ₹365.00) reported ₹4,988 Cr revenue in FY25, down 2.2% YoY, and PAT at ₹547 Cr, also down 21%. Why? Because the Navi Mumbai realty major is stuffing its pipeline like a property hoarder: ₹301 Cr invested in land in FY24–25 alone, expanding total GDV from ₹6,500 Cr → ₹12,500 Cr. But that inventory hasn’t turned into cash yet. Meanwhile, debt is up, margins are down, and PAT margins shrunk to 10.97% from 13.57%. Real estate goldmine or just a pre-launch brochure empire?
🏢 About the Company
| Metric | Value |
|---|---|
| Name | Arihant Superstructures Ltd (ASL) |
| Sector | Real Estate (Residential, Affordable + Premium) |
| CMP | ₹365.00 |
| 52W High/Low | ₹555 / ₹263.9 |
| Market Cap | ₹1,661 Cr |
| Promoter Holding | 74.71% |
| Geography | Navi Mumbai, MMR, Jodhpur |
| Projects Delivered | 62+ |
| Units Delivered | 12,000+ |
| Ongoing Projects | 19 |
| Future Units (Pre-launch) | 8,948 |
🧑💼 Key Management
- Ashok Chhajer – CMD (Visionary land-buyer + Real estate romantic)
- Parth Chhajer – WTD (ex-CLSA, shaping product and finance)
- Nimish Shah – WTD (construction boss)
- Dhiraj Jopat – CFO (quadruple-qualified finance ninja)
📊 Financial Highlights – FY25
| Metric | FY25 | FY24 | YoY |
|---|---|---|---|
| Revenue | ₹4,988 Mn | ₹5,101 Mn | 🔻 -2.2% |
| EBITDA | ₹1,043 Mn | ₹1,132 Mn | 🔻 -7.9% |
| EBITDA Margin | 20.91% | 22.19% | 🔻 -128 bps |
| PAT | ₹547 Mn | ₹692 Mn | 🔻 -21.0% |
| PAT Margin | 10.97% | 13.57% | 🔻 -260 bps |
| EPS | ₹10.02 | ₹10.91 | 🔻 -8.2% |
| Net Debt | ₹6,859 Mn | ₹4,774 Mn | 🔺 +43.7% |
| Net Worth | ₹3,778 Mn | ₹3,234 Mn | ⬆️ +16.8% |
So the story is:
🔺 More land, more inventory, more vision
🔻 Less profit, more debt, and a waiting game
💥 Q4 FY25 Highlights
| Metric | Q4 FY25 | Q4 FY24 | YoY |
|---|---|---|---|
| Revenue | ₹1,526 Mn | ₹1,610 Mn | 🔻 -5.2% |
| EBITDA | ₹222 Mn | ₹354 Mn | 🔻 -37.3% |
| EBITDA Margin | 14.55% | 21.99% | 🔻 -744 bps |
| PAT | ₹113 Mn | ₹254 Mn | 🔻 -55.5% |
| PAT Margin | 7.40% | 15.77% | 🔻 -837 bps |
This quarter hit the brakes hard. Margins halved. Collections slowed. But ASL says it’s “investing in the future” — aka building stuff that will sell in FY26–27.
🏘️ What’s in the Pipeline?
📦 Ongoing Projects
- Total Saleable Area: 6.89 Mn sq ft
- Total Units: 7,491
- Units Booked: 3,829
- Sales Value: ₹23,978 Mn booked | ₹16,982 Mn collected
- Revenue Potential Left: ₹31,304 Mn
🌱 Forthcoming Projects
- Total Units: 8,948
- Total Area: 9.87 Mn sq ft
- Estimated GDV: ₹71,292 Mn
📊 Total GDV (Ongoing + Upcoming) = ₹12,500+ Cr
🛒 But only ~50% inventory sold
They’ve built the shelf. Now they need to stock and sell.
🛏️ Flagship Projects to Watch
- Arihant Aspire (₹10,000 Mn revenue potential) – Completion: Phase 1: 94%, rest lagging
- Arihant Aalishan (₹8,000 Mn GDV) – Premium Kharghar project
- Arihant Advika (₹7,000 Mn) – Mid-income Taloja project
- World Villas, Chowk – 88 acres for 390 villas + 5-star hotel + gymkhana
They even started a hospitality annuity vertical — IRR expected at 15%. So it’s a realty company with gaming ambitions.
🧠 EduInvesting Take
“ASL bought all the land in Navi Mumbai — but forgot to sell homes fast enough.”
They’ve gone all-in on real estate’s golden rule:
📍 Buy cheap land near upcoming infrastructure and wait.
Except… buyers may be waiting longer than expected.
FY25 revenue dipped despite booming real estate demand — because new launches were stuck behind environmental clearance delays.
Meanwhile:
- Debt jumped
- PAT shrank
- Collections flattened
This isn’t mismanagement. It’s strategic hibernation.
They’re prepping a tsunami of inventory for FY26 and FY27. If the real estate cycle cooperates, expect fireworks. If not — interest costs will eat them alive.
🧮 Forward-Looking Fair Value (FV)
Let’s forecast based on FY26 assumptions:
- PAT = ₹800 Mn (project ramp-up, margin normalization)
- Shares = 54.6 Mn
- EPS ≈ ₹14.6
- Apply P/E of 20x (real estate avg)
👉 Fair Value = ₹14.6 × 20 = ₹292
📍CMP = ₹365
➡️ CMP is ahead of fundamentals right now — driven by land bank optimism and future GDV hype.
✅ Positives
- 🛒 ₹12,500 Cr GDV in pipeline
- 🏗️ 88-acre luxury villa + hotel project = long-term moat
- 🧾 Low land acquisition cost (< ₹500/sq ft avg)
- 💰 Strong brand in Navi Mumbai + MMR micro-markets
- 🧠 “Right place, right time” projects near metro, airport
⚠️ Risks & Red Flags
- 🔻 PAT down 21%, margins compressing
- 💳 Debt rising (Net D/E now at 1.02x)
- 🚫 Launch delays due to EC issues
- 🛠️ Large unsold inventory = working capital crunch risk
- 🏘️ Low traction in newly launched premium segment
- 💡 Capex on villas/hotels may stretch balance sheet further
🔍 FY26 Outlook
- Clearance issues resolved = Launches resume
- Execution uptick in Aspire, World Villas, Aalishan
- Debt expected to plateau as sales catch up
- 400+ villa project + gymkhana + hotel = New revenue vertical
- Target: ₹6,500–₹7,000 Cr sales and ₹800+ Cr PAT by FY26–27
🧾 Final Word
Arihant Superstructures is not a broken stock — it’s a coiled spring.
But FY25 was a holding pattern:
Buy land ✅ Build pipeline ✅ Wait for clearances ✅ Hold margins ✅
CMP ₹365 reflects optimism for FY26–27 — not the weak FY25 PAT.
So the question is:
Will Arihant convert its ₹12,500 Cr GDV into actual cash, or will it stay stuck in the pre-launch matrix?
As always in real estate: Location matters. Timing matters more.
🗓️ Published: May 26, 2025
✍️ By: Prashant Marathe
Tags: Arihant Superstructures FY25, GDV pipeline, Navi Mumbai real estate, World Villas Chowk, MMR affordable housing, CREDAI award winners, NSE ARIHANTSUP, EduInvesting
