Arihant Capital Markets Limited Business Intelligence Report
Arihant Capital Markets Limited Business Intelligence Report
Quality Scores
Latest Quarterly Earnings Summary
Loading latest quarter…
AI Summary
Arihant Capital Markets Limited is a mid-tier financial services firm that has shown significant volatility in its business performance over the last decade. While the company has grown its net worth from ₹100 Cr in FY17 to ₹441 Cr in FY26, the underlying business quality is marred by inconsistent profitability and deteriorating cash flow metrics. Revenue growth has slowed to a 5-year CAGR of 10.1%, while net profit growth lags at 7.3%. Recent quarterly data suggests a severe margin squeeze, with Q4 FY26 net margins collapsing to 1% before a sharp rebound in Q1 FY27. The business remains…
Key Changes in FY2026
The business has evolved from a traditional stockbroking firm incorporated in 1992 into a diversified financial services provider. Over the last decade, Arihant has expanded into Portfolio Management Services (PMS), Insurance Broking, and Real Estate financial services, moving up the value chain. A significant shift toward digital platforms is evident, with the company tracking 'Total App Installs' and NSE active clients as primary growth drivers. The geographic reach has expanded through investment centers, transitioning from a localized player to a national participant. The revenue base has scaled from ₹87 Cr in FY17 to a peak of ₹247 Cr in FY25, reflecting a successful transition from pure brokerage to a broader wealth management and credit-support (MTF) model.
Management Commentary
Management execution has been inconsistent, struggling to navigate the competitive landscape of the Indian broking industry. While they have successfully diversified into PMS and Insurance Broking, these segments have not yet provided the necessary earnings stability to offset core broking cyclicality. The recent transition in the CFO role and the decline in promoter holding by 6.44% over the last three years are noteworthy governance monitorables. Transparency regarding the sharp margin fluctuations in FY26 is limited, and the business evolution from a regional player to a digital-first entity is progressing slower than larger tech-led competitors.
Financial Highlights
The business exhibits highly inconsistent financial health with a clear downward trend in efficiency ratios. ROCE has plummeted from a peak of 40% in FY17 to just 9.3% in FY26, indicating that incremental capital is not generating historical rates of return. Net profit has been erratic, falling from ₹71 Cr in FY24 to ₹31 Cr in FY26. While the balance sheet shows growth in net worth, the corresponding earnings yield of 4.9% is relatively low for a business with such high operational volatility. The recent spike in borrowing to ₹239 Cr suggests increasing leverage to support business operations or the MTF book.
Major Opportunities
- 10-year Revenue CAGR of 14% shows long-term business resilience
- Robust Net Worth growth from ₹100 Cr to ₹441 Cr over 10 years
- Diversified service suite including PMS, Insurance, and Real Estate
Major Risks
- Negative Free Cash Flow in 7 out of the last 10 years
- Severe ROE compression from 21.9% in FY24 to 7.1% in FY26
- Working capital cycle remains long with 174 debtor days
About Arihant Capital Markets Limited's Annual Report & Financial Performance
The latest Arihant Capital Markets Limited annual report (FY2026) is the company's flagship annual disclosure, filed with NSE / BSE. It covers the full-year business review, management discussion & analysis, audited financial statements, the director's report, the corporate governance and auditor's reports, risk factors, capital allocation, subsidiaries, related-party transactions and ESG initiatives. This Business Intelligence Hub consolidates the official filings with AI-generated financial analysis so investors can see how revenue, operating margin, cash flow quality, capex, dividends, net debt and management outlook have changed — without reading the entire filing.
What this Arihant Capital Markets Limited research covers
- Fundamental & business analysis
- Financial statements & performance
- Management commentary & discussion
- Corporate governance & auditor report
- Cash flow analysis & capital allocation
- Valuation analysis & business quality
- Growth analysis & competitive position
- Risk, SWOT & moat analysis
- Quarterly earnings & conference-call summary
- Sector, industry & peer comparison
- Latest official company filings
- Business outlook & long-term growth
Arihant Capital Markets Limited — Frequently Asked Questions
Explore more Arihant Capital Markets Limited research
AI Top Insights — Premium
Unlock deeper AI Top Insights, advanced comparisons, downloadable reports and premium features.