Arihant Capital's margin rises despite lower revenue, but profit slips
Expenses fell faster than revenue, but a higher tax rate pulled net profit down 2.75% sequentially.
Filed 30 Oct 2026, 19:33 IST · after market close · Arihant Capital Markets Ltd (ARIHANTCAP)
Key takeaways
- Consolidated operating margin rose 1.71 percentage points QoQ to 47.1% as expenses fell 5.73% while revenue declined 2.68%.
- Net profit fell 2.75% QoQ as the tax rate rose 1.48 percentage points to 25.16%.
- Arihant’s operating margin was 10.2 percentage points below the 57.3% median for 66 reported Financial Services peers.
Price around the results
Lower costs lift margin despite softer revenue
Arihant Capital Markets’ consolidated revenue declined 2.68% QoQ, but expenses fell faster, by 5.73%. That drove a 0.96% rise in operating profit and lifted operating margin by 1.71 percentage points to 47.1%. Interest expense also edged down 0.27%, offering limited additional support.
Higher tax rate offsets operating improvement
Profit before tax declined 0.82% QoQ, while net profit fell 2.75% as the tax rate increased by 1.48 percentage points to 25.16%. Other income accounted for only 1.86% of pre-tax profit, so the quarter’s earnings were not materially supported by that line.
Margin improves for a second straight quarter
Operating margin rose from 16.62% in Q4FY26 to 45.39% in Q1FY27 and 47.1% in Q2FY27, marking a second consecutive quarterly improvement. Even after that recovery, Arihant’s margin was 10.2 percentage points below the 57.3% median among 66 Financial Services peers that had reported.
Results filed after market close
The consolidated results were filed after market close on 30 October 2026. The stock’s post-results reaction is therefore not part of this readout.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹76 cr | ₹78 cr | -2.68% |
| Other income | ₹1 cr | ₹1 cr | -52.29% |
| Expenses | ₹40 cr | ₹43 cr | -5.73% |
| Operating profit | ₹36 cr | ₹35 cr | +0.96% |
| Operating margin (%) | 47.10% | 45.39% | — |
| Interest | ₹7 cr | ₹7 cr | -0.27% |
| Depreciation | ₹1 cr | ₹1 cr | +2.22% |
| Profit before tax | ₹28 cr | ₹28 cr | -0.82% |
| Tax | ₹7 cr | ₹7 cr | +5.40% |
| Net profit | ₹21 cr | ₹21 cr | -2.75% |
| EPS (₹) | ₹1.91 | ₹1.96 | -2.55% |
Operating margin of 47.10% compares with a Financial Services sector median of 57.30% across 66 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 47.1% after its second consecutive quarterly improvement.
- Whether revenue recovers from the 2.68% QoQ decline.
- Whether the tax rate moves below 25.16% after rising 1.48 percentage points QoQ.