Interest expense was a major drag on Arihant Superstructures’ operating profit
The company reported a 20.94% operating margin, but finance costs materially reduced the conversion of operating profit into pre-tax earnings.
Filed 07 Aug 2026, 15:03 IST · ARIHANTSUP (ARIHANTSUP)
Key takeaways
- Consolidated operating profit of Rs 27.56 cr came with a 20.94% operating margin, while interest cost was Rs 15.54 cr.
- Profit before tax was Rs 12.85 cr after Rs 1.55 cr of other income and Rs 15.54 cr of interest expense.
- Consolidated net profit was Rs 9.78 cr, with EPS of Rs 1.39 and a tax rate of 23.85%.
Operating profit faced a sizeable finance charge
Arihant Superstructures generated Rs 27.56 cr of operating profit from Rs 131.59 cr of revenue, giving a 20.94% operating margin. Interest expense of Rs 15.54 cr was a major charge against operating profit, limiting the amount that reached pre-tax profit.
Other income supported pre-tax earnings
Profit before tax was Rs 12.85 cr after depreciation of Rs 0.72 cr and interest expense of Rs 15.54 cr. Other income of Rs 1.55 cr also contributed to pre-tax earnings, while the 23.85% tax rate resulted in net profit of Rs 9.78 cr.
Net profit conversion remains the key read-through
The quarter produced consolidated EPS of Rs 1.39. With operating profit at Rs 27.56 cr and net profit at Rs 9.78 cr, the main earnings question is how effectively operating performance can offset the finance-cost burden.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹132 cr |
| Other income | ₹2 cr |
| Expenses | ₹104 cr |
| Operating profit | ₹28 cr |
| Operating margin (%) | 20.94% |
| Interest | ₹16 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹13 cr |
| Tax | ₹3 cr |
| Net profit | ₹10 cr |
| EPS (₹) | ₹1.39 |
What to watch
- Whether operating margin holds around 20.94%.
- Whether interest expense remains below Rs 15.54 cr.
- Whether net profit improves from Rs 9.78 cr without greater reliance on Rs 1.55 cr of other income.