Arihant Superstructures Ltd Q1 FY27 Earnings Analysis

- The company expects a 25%-30% CAGR growth in pre-sales for FY27. - Delivery volumes are projected to exceed 2,000 units in FY27, up from 1,721 units delivered in FY26. - Key projects contributing to deliveries in FY27 include Arihant Aalishan (Kharghar Phase-II), Arihant Aspire Della Tower, and Arihant Advika (Vashi). - New project launches planned for FY27: additional tower in Arihant Aspire, Arihant Avanti at Shilphata, and Town Villas by Q4. - Revenue growth expected from increased deliveries and project progress, shifting top line from Rs. 500-550 crores to around Rs. 700+ crores. - Margins anticipated to improve to 25%-27% EBITDA range in FY27, led by contributions from new projects. - Emphasis on maintaining price integrity, especially in World Villas, with price increases already implemented.

- FY27 CAPEX planned at around Rs. 400+ crores focusing on construction across projects, including new gymkhana and hotel assets (approx. Rs. 75 crores). - Revenues expected to jump from Rs. 500-550 crores to around Rs. 700+ crores this year due to progressing projects and deliveries. - EBITDA margin is projected to improve to 25%-27% in FY27 as newer, higher-margin projects contribute more. - PAT margins expected to benefit from margin improvement and debt reduction. - Delivery volumes are expected to exceed 2,000 units in FY27, supporting higher revenues and cash flows. - Pre-sales expected to grow at a 25%-30% CAGR, driving long-term business growth. - Free cash flow is anticipated to turn positive from FY27 onwards as project completion advances. - The company aims to maintain EBITDA margins of around 33% overall, with some projects like World Villas targeting 45%-47% margins due to low land cost.

- FY26-FY27 CAPEX guidance: Around Rs. 400 crores for construction across all projects. - Additional Rs. 75 crores CAPEX expected for gymkhana and hotel development this financial year. - Hotel development at Panvel underway: Excavation completed, brand finalization expected in Q1 FY27, with first revenues anticipated 3-3.5 years from now. - New hotel at Khopoli recently approved; total investment ~Rs. 60 crores; timeline approximately 3 years. - World Villas project involves capital investment of about Rs. 350 crores (3.5 billion); funding via mix of internal accruals and debt, no specific equity raise planned. - Acquisition of 20 additional acres of land last financial year for Town Villa project, increasing GDV. - New launches planned: Additional tower in Arihant Aspire, Arihant Avanti at Shilphata, and Town Villas expected by Q4 FY27.

- The company plans debt financing primarily for gymkhana and hotel development with an expected CAPEX of around Rs. 75 crores this financial year, adding to total CAPEX of around Rs. 400 crores. - Debt may increase by about Rs. 50 crores from current levels due to ongoing projects. - No specific equity raise is planned for funding the World Villas and hospitality CAPEX (~Rs. 350 crores); funding will come mainly from internal accruals and debt. - The company may consider equity fundraising at the company level at a later stage but not currently. - Debt repayment is expected as projects near completion, supporting deleveraging, with goals to reduce secured debt. - Overall, the financing strategy leans towards a mix of debt and internal accruals, with caution to avoid equity due to higher cost compared to debt.

- Arihant Superstructures reported a Gross Development Value (GDV) of projects at around Rs. 14,000 crores, up from Rs. 12,500 crores the previous year. - This increase is driven by new land acquisitions (20 acres added last year) and improved realizations across projects due to better infrastructure and airport developments. - The company has ongoing projects with significant saleable area, including the recently launched Benita Tower in Arihant Aspire (3.82 lakh sq. ft). - New launches planned for FY27 include Arihant Aspire (one more tower), Arihant Avanti at Shilphata, and Town Villas expected by Q4. - The company expects robust sales growth of 25%-30% CAGR for FY27, reflecting strong demand and an active order pipeline. - The World Villas project sales are ongoing, with about 55 units sold out of 180 and a sales target of 65-70 units in the current financial year.