Arihant Superstructures Limited — Q3 FY26
Arihant Superstructures reported a weak Q3 FY26 with consolidated revenue of INR 126 crore, down 16% YoY, and EBITDA of INR 29 crore, down 32% YoY.
neutral
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
80%Questions answered1Evaded / deflected10Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Investment outlay, IRR, payback for hotel and gymkhana; construction timeline; operator partner.
Asked by Ji
Provided investment outlay and payback but did not give IRR or operator name.
IRR not providedoperator not finalized
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Question
what is the investment number one what is the investment outlay expected I IR and payback period for the hotel or gym kana... have you finalized the hotel operator brand partner
Management (not named)
total investment in the Jim Khana is envisaged at 25 odd crores and for the hotel it will be 225 crores. So total investment outlay will be 350 crores... break even time expected for both these assets to break even will be around 8 years.
Evasive
High priority
Target debt-equity range and average cost of borrowing; interest cost doubled YoY.
Asked by Amit Aija, Edji Havan Company
Did not answer target debt-equity or cost of borrowing; only mentioned future debt increase.
no target debt-equity range givenno blended cost given
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Question
What is the targeted debt equity range and average blended cost of borrowing like because I think so this has doubled compared to the last quarter.
Management (not named)
debt we'll be increasing the debt by say another 150 odd crores... we are very comfortable on that because these are long-term debts
Answered
Medium priority
Impact of IT sector slowdown on real estate demand.
Asked by Amit Aija, Edji Havan Company
Directly answered that demand is diversified and not overly dependent on IT.
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Question
do you see like because of this geopolitical situations and AI... the IT sector might get affected... will the bookings continue because most of the real estate are being booked by IT employees.
Management (not named)
in Mumbai now it's not only the IT sector which is dominating the real estate sales. There are many other industries... I don't see real estate demand being largely affected because of the dip in the IT sector
Answered
Low priority
Marketing cost as percentage of revenue.
Asked by Amit Aija, Edji Havan Company
Provided specific percentage for marketing cost.
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Question
can you also share the what is the marketing cost like compared to the revenue in percentage terms
Management (not named)
direct marketing cost goes to around 1 and a half% average.
Answered
Medium priority
Why is absorption slow for Advika project despite connectivity?
Asked by Shivani
Explained slow absorption due to construction stage and now improving as project nears completion.
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Question
projects like Advika which is in Vashi so are 72% complete but only 35% has been sold. So why is the absorption flow despite the excellent connectivity?
Management (not named)
when we started the project in 2022 we were able to sell about 10% of the inventory but between the stage of the plinth till the RCC completion we did not witness great sales... now since the product is ready... sales are picking up
Answered
Medium priority
Terms of new JV: area sharing ratio, capital commitment, profit share.
Asked by Shivani
Clearly explained JV structure as area sharing without capital or profit commitment.
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Question
what are the terms of this new JV area sharing ratio, your capital commitment and the profit plate as well?
Management (not named)
an area sharing JV. We have to give a certain number of units to the land owner. There's no capital commitment or profit commitment.
Answered
Medium priority
Plan to increase asset-light projects to reduce capital intensity and debt.
Asked by Shivani
Provided specific target range for asset-light share increase.
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Question
are you planning to increase a share of asset like projects to reduce capital intensity and debt?
Management (not named)
we are open but it will not happen significantly because majority of the projects that we do are where we purchase the land... the proportion of the asset light model can increase from 19% and increase to upwards of around 25%
Answered
Low priority
Margin comparison between JV and wholly-owned projects.
Asked by Shivani
Directly stated margins are similar.
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Question
how do JV projects compare on margins versus wholly own projects?
Management (not named)
margins are similar on a revenue P&L basis. Only the capital infusion is the difference in a JV versus a outright purchase project.
Partial answer
High priority
Pre-sales for 9 months and full year; EBITDA margin guidance; update on villa projects.
Asked by Amish, Novite Investment
Provided 9-month pre-sales and margin improvement range but did not give full year guidance or blended pipeline margin.
full year pre-sales guidance not givenblended pipeline margin not quantified
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Question
what is the pre-sales that we had for this year 9 month and what is likely for say this year one... our evida margins is moving in the range of 25%... if you can give us some sense of a blended abida margin of the pipeline... update on the VA projects
Management (not named)
for 9 months the total sales we achieved was 664 cr rupees in value... evida margins which are around 23 25% today which should increase to 28 29% in the coming quarters... world vas already launched... town villas launch expected in next financial year
Answered
Medium priority
Revenue recognition method for villa projects.
Asked by Amish, Novite Investment
Clearly explained percentage completion method and when revenue recognition will begin.
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Question
how will we recognize the sales here? Because my guess is the total project can elongate up to as long as 7 8 years... is it possible to recognize the revenue as we go forward
Management (not named)
we don't follow project completion method we follow percentage completion method. So once we cross the 10% project completion threshold we start recognizing revenue... So maybe in a quarter or two world villas will also start contributing to the revenues.
Answered
Medium priority
Average selling price trend and cost increase; any slowdown?
Asked by Amit Agra, Edgihava
Provided specific cost increase and ASP figures.
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Question
what is the average selling price trend that you're seeing and the cost is also increasing... you can please share the view on this.
Management (not named)
cost is increased marginally by 200 rupees per square foot... this quarter we sold more units in the premium luxury segment which contributed and helped us achieve a average selling price of 7,500 which used to be usually averaging at around 6,200 to 6,500 in the previous quarters.
Answered
High priority
Capital allocation priority: land acquisition, annuity assets, or deleveraging?
Asked by Raman
Clearly prioritized annuity assets, then land acquisition, then debt reduction.
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Question
over the next two years, will capital be prioritized towards new land acquisition, the annuality assets creation or you know deleveraging the balance sheet?
Management (not named)
in the main listed entity the focus is on developing the annuity assets first. Second will be to expand the business by adding more lands and third would be the debt reduction... all subsidiaries become debt free in the next two years.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| 9-month pre-sales value of 664 crores. | ₹664 cr | ₹126 cr | Overstated vs filing |
| Current EBITDA margin 23-25%, expected to increase to 28-29%. | 25% | 22.94% | Overstated vs filing |
| Villa projects expected EBITDA margin of 45%. | 45% | 22.94% | Overstated vs filing |
| Apartment projects expected EBITDA margin of 30-33%. | 33% | 22.94% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.