Arihant Superstructures Ltd

- As of the call, Arihant Superstructures Limited currently has net debt of around INR 685 crores and is comfortable with increasing this to around INR 750-800 crores in the near future. - Out of this, INR 300 crores are unsecured loans payable flexibly, and secured debt is INR 385 crores, with comfort to sustain secured debt up to INR 500 crores. - Future debt raising will mostly be for annuity assets like the Gymkhana and the hotel. - There are no significant land acquisitions planned for FY '26, so limited need for fresh fundraising. - The company prefers to fund expansions through internal accruals and manageable debt rather than equity. - No immediate plans for equity fundraising were mentioned.

- Target capex for construction in FY '26 is around INR 650 crores. - Limited new land acquisitions planned in FY '26; company feels it has sufficient land bank for projects over next 2-3 years. - New debt primarily to be utilized for annuity assets such as the Gymkhana and the 5-star hotel linked with the World Villas project. - Marketing spend for World Villas will continue at similar levels as last year to maintain visibility. - No major fundraising planned; preference is to manage with existing debt capacity (comfortable up to INR 750-800 crores net debt). - Focus on execution and completion of recently acquired projects with healthy margins rather than aggressive expansion or acquisitions this year.

- The company targets a conservative growth of 20% to 25% in sales/revenue for FY '26 and beyond. - Growth drivers include new project launches such as Arihant Avanti (third tower), Arihant Aspire Panvel (launch anticipated by Q2/Q3 FY '26), Arihant Aloki Kharghar (last two towers), and Arihant Anmol Badlapur (two buildings). - Sustainable EBITDA margins of around 24%-25% are expected for FY '26, improving to 26%-27% as newer higher-margin projects contribute. - Sales for premium projects are expected to increase, with average realization per sq. ft. rising from around INR 6,084 in FY '25 to INR 6,500–6,700 in FY '26. - Land acquisitions will be limited in FY '26, focusing on execution of existing land bank (~307 acres+). - Environmental clearance issues currently delaying some projects (World Villas, Arihant Anaika, etc.) are expected to resolve by Q3 FY '26, enabling revenue recognition to resume by Q4 FY '26. - Ongoing marketing spends will continue to boost visibility, especially for flagship projects like World Villas.

- The company expects to sustain EBITDA margins around 24-25% in the coming quarters as new projects acquired over the last 2 years start contributing. - EBITDA margins are projected to grow to around 26-27% once these projects fully contribute to revenue. - Arihant Superstructures aims for a sales growth of 20-25% in FY '26, maintaining a conservative yet optimistic outlook. - The guidance of 20-25% CAGR growth across presales, revenue, EBITDA, and PAT is being maintained for the coming year. - Delay in growth last year was mainly due to environmental clearance issues causing halted construction and delayed revenue recognition. - Interest costs and employee expenses increased, impacting margins in the recent year, but these are expected to normalize as new projects generate cash flow. - New project launches and ongoing projects, especially in affordable housing and premium segments, are expected to drive future earnings.

- The company’s total Gross Development Value (GDV) impacted by environmental clearance stays is approximately INR 2,600 crores. - Sales bookings for FY 2025 stood at INR 889 crores with 1,568 units sold. - New project launches planned in FY 2026 include phases at Arihant Avanti (Shilphata), Arihant Aspire (Panvel), Arihant Aloki (Kharghar), and Arihant Anmol (Badlapur). - Construction halted on some projects like World Villas due to pending environmental clearances but sales continue. - Expectation to resume construction for World Villas by Q2-Q3 FY 2026 with revenue recognition from Q4 FY 2026. - No major land acquisitions planned for FY 2026; focus is on executing existing land bank of over 307 acres. - Capex target for FY 2026 is approximately INR 650 crores for construction activities.