Company Overview
Arihant Foundations & Housing Limited reported strong financial performance for FY26 alongside significant corporate developments and the notice of its 33rd Annual General Meeting.
Financial Performance Highlights
Consolidated revenue surged 95% to ₹431.70 crore (from ₹221.44 crore in FY25) with profit after tax growing 38.1% to ₹58.97 crore. The company achieved pre-sales value of ₹513.70 crore (up 28% YoY) and area sold of 5,69,261 sq. ft. (up 72% YoY). Total assets stood at ₹1,017.81 crore while borrowings increased significantly to ₹476.95 crore from ₹146.96 crore in FY25.
AGM Details and Corporate Governance
The 33rd AGM is scheduled for September 30, 2026, via video conferencing with e-voting from September 26-29, 2026. Agenda items include adoption of financial statements, reappointment of directors, and special resolutions for borrowing limits up to ₹6,000 crore, related party transactions, and appointment of independent directors.
Strategic Developments and Capital Structure
Post-year-end, all 8,96,873 outstanding convertible warrants were converted into equity shares at ₹360 per warrant, raising ₹32.29 crore and increasing paid-up capital to ₹10.86 crore. The company completed one of Chennai's largest land transactions with an 18-acre acquisition and formed a strategic alliance with Prestige Estates Projects Limited.
Operational Portfolio and Market Position
The company has a portfolio under development of 8.11 million sq. ft. with Gross Development Value of ₹11,251 crore. Projects span commercial, luxury residential, plotted developments, and senior housing segments across Chennai. The Chennai real estate market showed strong growth with residential sales up 12% and new launches up 20%.
Auditor Observations and Compliance
Auditors highlighted key audit matters including revenue recognition under Ind AS 115, uncertain tax positions, and lack of balance confirmations from vendors and customers. The company has contingent liabilities including income tax cases pending before CIT Appeals (₹71.83 lakh) and cases before Madras High Court (₹720.16 lakh).
Corporate Structure and Subsidiaries
The group consists of 11 wholly-owned subsidiaries and 5 joint ventures. Key management includes Managing Director Kamal Lunawath, Whole-time Director & CFO Vimal Lunawath, and CEO Arun Rajan. CSR expenditure totaled ₹26.42 lakh on education and women empowerment programs.
Financing and Borrowings
The company secured ₹100 crore NCDs with ICICI Prudential AMC at 12.5% coupon and seeks approval for increased borrowing limits. Financial ratios showed a debt-equity ratio of 1.38 (up from 0.80) and return on equity of 10.65% (down from 11.48%).