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ARIHANTCAP - Arihant Capital

📊 NSE: ARIHANTCAP 🏢 Finance & Investments 📅 Last Updated: 12/13/2025 18:30

📢 Recent Corporate Announcements

Arihant Capital Re-appoints Arpit Jain as JMD and Jitendra Jain as Independent Director

🟡 NEUTRAL ⭐ 4/10

MANAGEMENT 📅 09 Feb 2026, 09:19 PM

Arihant Capital Markets has approved the re-appointment of Mr. Arpit Jain as Joint Managing Director for a term of 4 years and 5 months, effective January 25, 2026. Additionally, Mr. Jitendra Jain has been re-appointed as an Independent Director for a second 5-year term starting June 14, 2026. Mr. Arpit Jain brings over 10 years of experience in fintech and wealth management, overseeing 2.5 lakh+ clients. These re-appointments ensure leadership continuity and are subject to shareholder approval.

Mr. Arpit Jain re-appointed as Joint Managing Director for a term of 4 years and 5 months starting Jan 25, 2026
Mr. Jitendra Jain re-appointed as Independent Director for a second 5-year term starting June 14, 2026
Mr. Arpit Jain manages a network of 2.5 lakh+ clients across 300+ cities and 800+ investment centers
Mr. Jitendra Jain brings 31 years of experience in Corporate Finance, Capital Markets, and M&A

💡 Investors should view this as a sign of management stability and continuity in the company's long-term strategy. No immediate action is required as these are re-appointments of existing leadership.

Arihant Capital Reports Zero Deviation in Utilization of ₹34.25 Cr Raised via Warrant Conversion

🟡 NEUTRAL ⭐ 4/10

REGULATORY 📅 09 Feb 2026, 08:56 PM

Arihant Capital Markets Limited has submitted its statement of deviation for the quarter ended December 31, 2025, confirming that funds raised through warrant conversions were used as intended. The company raised ₹34.25 crore on November 22, 2025, by allotting 5,000,000 equity shares. 100% of these proceeds have been deployed into money market instruments, bank deposits, and government securities. Both the Audit Committee and statutory auditors have reviewed the statement with no adverse comments or deviations reported.

Raised ₹34.25 crore through the conversion of 5,000,000 warrants into equity shares on November 22, 2025.
Confirmed zero deviation or variation in the utilization of proceeds for the quarter and nine months ended December 31, 2025.
100% of the raised funds (₹34.25 Cr) have been fully utilized towards the objects stated in the offer document.
Proceeds were invested in money market instruments, mutual funds, and deposits in scheduled commercial banks.

💡 No immediate action is required as the company is in full compliance with SEBI's fund utilization regulations. Investors should note the successful conversion of warrants which strengthens the company's capital base.

Arihant Capital Q3 Net Profit Drops 57.7% YoY to ₹5.18 Cr; Re-appoints Joint MD

🔴 NEGATIVE ⭐ 7/10

EARNINGS 📅 09 Feb 2026, 06:58 PM

Arihant Capital Markets reported a weak set of results for Q3 FY26, with consolidated net profit declining 57.7% YoY to ₹5.18 crore. Total revenue from operations contracted by 5.3% YoY to ₹49.17 crore, primarily due to a dip in fees and commission income. The company's core broking segment saw revenue fall to ₹48.17 crore from ₹51.09 crore in the same period last year. Additionally, the board approved the re-appointment of Mr. Arpit Jain as Joint Managing Director for a term of over four years.

Consolidated Net Profit fell 57.7% YoY to ₹517.80 Lacs in Q3 FY26 compared to ₹1,225.41 Lacs in Q3 FY25.
Total Revenue from Operations decreased 5.3% YoY to ₹4,904.57 Lacs from ₹5,178.82 Lacs.
Fees & Commission Income dropped to ₹2,863.56 Lacs from ₹2,989.07 Lacs in the year-ago quarter.
Basic Earnings Per Share (EPS) declined significantly to ₹0.49 from ₹1.18 YoY.
Board approved the re-appointment of Mr. Arpit Jain as Joint Managing Director for 4 years and 5 months.

💡 The sharp decline in both top-line and bottom-line performance suggests significant margin pressure in the broking business; investors should remain cautious. Monitor the progress of the proposed Composite Scheme of Arrangement for any potential structural impact on shareholder value.

Arihant Capital Q3 Net Profit Slumps 57.7% YoY to ₹5.18 Cr; Re-appoints JMD Arpit Jain

🔴 NEGATIVE ⭐ 8/10

EARNINGS 📅 09 Feb 2026, 06:53 PM

Arihant Capital Markets reported a weak set of numbers for Q3 FY26, with consolidated net profit falling 57.7% YoY to ₹5.18 crore. Total revenue from operations declined to ₹49.17 crore from ₹51.95 crore in the year-ago period, largely driven by a dip in fee and commission income. Profitability was further impacted by a sharp rise in administrative expenses and a one-time provision of ₹39.37 lakhs for new labour codes. Additionally, the board approved the re-appointment of Arpit Jain as Joint Managing Director for a term of over four years.

Consolidated Net Profit fell 57.7% YoY to ₹517.80 Lacs from ₹1,225.41 Lacs.
Total Revenue from operations decreased to ₹4,917.28 Lacs compared to ₹5,194.73 Lacs in Q3 FY25.
Fees & Commission income, the largest revenue segment, dropped to ₹2,863.56 Lacs from ₹2,989.07 Lacs YoY.
Administrative and other expenditures rose significantly to ₹1,076.32 Lacs from ₹828.56 Lacs YoY.
Board approved the re-appointment of Mr. Arpit Jain as Joint Managing Director for 4 years and 5 months.

💡 Investors should exercise caution given the significant decline in both top-line and bottom-line performance during the quarter. The focus should remain on the company's ability to stabilize core commission income and the eventual outcome of the pending Composite Scheme of Arrangement.

Arihant Capital Gets NSE/BSE Approval for 50 Lakh Shares via Warrant Conversion

🟢 POSITIVE ⭐ 7/10

FUNDRAISE 📅 07 Feb 2026, 12:07 PM

Arihant Capital Markets Limited has received in-principle approval from both BSE and NSE for the issuance of 50,00,000 equity shares. These shares are being issued to the promoter category following the conversion of warrants previously allotted on a preferential basis. The shares have a face value of Re. 1 each and will be listed upon confirmation of credit from the depositories. This move indicates a strengthening of the promoter's stake and long-term commitment to the company.

In-principle approval received for 50,00,000 equity shares from BSE and NSE.
Shares are being issued to the promoter category upon conversion of warrants.
The equity shares carry a face value of Re. 1 per share.
Distinctive numbers for the new shares range from 104612801 to 109612800.
Final listing is subject to credit confirmation from NSDL and CDSL.

💡 Promoter warrant conversion is generally a positive signal of confidence in the company's future. Investors should monitor the impact on Earnings Per Share (EPS) due to the increase in the total number of outstanding shares.

Arihant Capital Markets Submits SEBI Regulation 74(5) Compliance for Q3 FY26

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 13 Jan 2026, 06:00 PM

Arihant Capital Markets Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by the Registrar and Share Transfer Agent, Ankit Consultancy Private Limited, covers the quarter ended December 31, 2025. It confirms that all share certificates received for dematerialization were processed, mutilated, and cancelled as per regulatory requirements. The company also confirmed that the names of the depositories were substituted in the register of members within the mandated 15-day period.

Compliance certificate submitted for the quarter ended December 31, 2025
Registrar confirmed dematerialization requests were processed and confirmed to depositories
Security certificates were mutilated and cancelled after due verification
Register of members updated with depository names within 15 days of receipt
Filing confirms adherence to SEBI (Depositories and Participants) Regulations, 2018

💡 This is a routine regulatory filing with no direct impact on the company's financial performance or stock price. No specific action is required from investors.

Arihant Capital Markets to Close Trading Window from Jan 1, 2026 for Q3 Results

🟡 NEUTRAL ⭐ 2/10

ROUTINE 📅 26 Dec 2025, 01:10 PM

Arihant Capital Markets Limited has announced the closure of its trading window for all designated persons and their immediate relatives starting January 01, 2026. This routine regulatory measure is in compliance with SEBI (Prohibition of Insider Trading) Regulations ahead of the financial results for the quarter and nine months ending December 31, 2025. The trading window will remain closed until 48 hours after the unaudited financial results are declared to the stock exchanges. The specific date for the board meeting to approve these results will be communicated at a later date.

Trading window closure effective from January 01, 2026.
Closure pertains to the financial results for the quarter and nine months ending December 31, 2025.
Window to reopen 48 hours after the official declaration of results.
Restriction applies to all designated persons and their immediate relatives as per the company's Code of Conduct.

💡 This is a standard regulatory filing with no direct impact on public shareholders; investors should monitor for the upcoming Q3 earnings date.

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💰 Financial Performance

Revenue Growth by Segment

Total Income grew 5.5% to INR 242.05 Cr in FY25. Segment performance shows Merchant Banking fees grew 67% to INR 0.69 Cr, Interest Income rose 22% to INR 19.94 Cr, and Third-Party Distribution increased 40% to INR 1.46 Cr. However, Brokerage revenue declined 3% to INR 27.07 Cr and Net Gain on Fair Value changes plummeted 96% to INR 1.01 Cr due to market volatility.

Geographic Revenue Split

The company covers 11,880 pin codes across India, representing a wide national reach. While specific regional percentage splits are not disclosed, the company maintains 16+ branches and a significant presence in Indore (Registered Office) and Mumbai (Corporate Office).

Profitability Margins

Net Profit Margin (PAT Margin) stood at 21.8% for FY25, down from 28.7% in FY24. The decline is primarily attributed to a 22.6% increase in total expenses, which rose from INR 142.71 Cr to INR 175.03 Cr, and a sharp reduction in fair value gains.

EBITDA Margin

EBITDA grew 21% on a TTM basis according to investor presentations. However, for FY25, Profit Before Tax (PBT) margin was 29.1%, a decrease from 37.9% in FY24, reflecting higher operational costs and finance charges which rose 57% YoY.

Capital Expenditure

The company reported Property, Plant, and Equipment (PPE) and Intangible assets records are maintained, with depreciation/amortization of INR 3.01 Cr in FY25 compared to INR 2.37 Cr in FY24, indicating ongoing investment in infrastructure and technology.

Credit Rating & Borrowing

CRISIL previously assigned BBB-/Stable and A3 ratings, which were withdrawn in 2017 at the company's request. Finance costs increased 57% to INR 19.30 Cr in FY25, driven by higher interest paid on borrowings (INR 13.56 Cr) to fund the expanding Margin Trade Funding (MTF) book.

⚙️ Operational Drivers

Raw Materials

As a financial services firm, primary 'raw materials' are human capital and technology. Fees and commission expenses (payouts to partners) represent 31.4% of total revenue (INR 75.96 Cr). Employee benefit expenses account for 16.4% of revenue (INR 39.69 Cr).

Import Sources

Not applicable for financial services; sourcing is primarily domestic talent and technology infrastructure within India.

Key Suppliers

Key infrastructure and service providers include National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and technology vendors for the 'Arihant Plus' platform.

Capacity Expansion

Current capacity includes 2.5 lac+ clients and 700+ business partners. Expansion is focused on digital scaling, with 1.67 lac app installs and 40 lakh API requests served per day. The company is also expanding its MTF book through recent capital raises.

Raw Material Costs

Fees and commission expenses increased 10.9% to INR 75.96 Cr in FY25. Employee costs rose 29% to INR 39.69 Cr, reflecting investments in the 'Arihant Plus' engineering team and retail distribution expansion.

Manufacturing Efficiency

Digital vs. Offline mix is currently 47.8% to 52.2%. Increasing the digital share is a key efficiency goal to lower the cost of acquisition and service.

Logistics & Distribution

Distribution is handled through 700+ business partners and digital channels. Third-party distribution revenue grew 40% to INR 1.46 Cr, showing improved channel productivity.

📈 Strategic Growth

Expected Growth Rate

17%

Growth Strategy

The company plans to achieve growth by increasing the MTF book and receivables, intensifying cross-selling of third-party products (Mutual Funds, PMS, AIF), and pursuing strategic alliances/acquisitions. A recent preferential allotment raised INR 25.68 Cr from promoters to fund these capital-intensive growth areas.

Products & Services

Equity Broking, Wealth Management, Merchant Banking, Mutual Funds, Bonds, Portfolio Management Services (PMS), and Alternative Investment Funds (AIF).

Brand Portfolio

Arihant Capital, Arihant Plus (Digital Trading App).

New Products/Services

Expansion of the 'Arihant Plus' digital journey and increased focus on Merchant Banking (which saw a 67% revenue jump) are expected to contribute significantly to future fee-based income.

Market Expansion

Targeting new geographies through experience centers and digital marketing to cover more than the current 11,880 pin codes.

Strategic Alliances

The company is actively pursuing strategic alliances and acquisitions to broaden its geographic footprint and service portfolio.

🌍 External Factors

Industry Trends

The industry is shifting toward digital-first models (47.8% of Arihant's business). There is a growing trend of 'financial independence' among Indian retail investors, supporting the company's mission to offer diverse investment products.

Competitive Landscape

Competes with both traditional full-service brokers and new-age discount brokerage firms in the retail and institutional segments.

Competitive Moat

Moat is built on a 32-year history of profitability since inception and a 'client-first' value system. This trust-based moat is sustainable but faces competition from tech-heavy discount brokers.

Macro Economic Sensitivity

Highly sensitive to Indian capital market cycles and retail participation rates. GDP growth and financialization of savings directly drive the 40% growth seen in third-party distribution.

Consumer Behavior

Increasing preference for mobile-based trading (1.67 lac app installs) and demand for integrated wealth management services rather than just execution.

Geopolitical Risks

Indirect impact through global market volatility affecting domestic stock prices and the company's proprietary trading gains (INR 1.01 Cr in FY25 vs INR 43.98 Cr in FY24).

⚖️ Regulatory & Governance

Industry Regulations

Compliance with the Companies Act 2013 and Ind AS financial reporting. The company maintains an audit trail feature in its software as per Rule 3(1) of Companies (Accounts) Rules, 2024.

Environmental Compliance

Not applicable for financial services; CSR obligations are met with unspent amounts transferred to special accounts per Section 135(6).

Taxation Policy Impact

Effective tax rate for FY25 was 24.9% (Total Tax of INR 17.62 Cr on PBT of INR 70.60 Cr).

Legal Contingencies

Pending litigations exist as detailed in Note 40 of the financial statements; the company has made provisions for material foreseeable losses on long-term and derivative contracts.

⚠️ Risk Analysis

Key Uncertainties

Market risk is the primary uncertainty, evidenced by the 96% drop in fair value gains. Regulatory changes in brokerage commissions or MTF lending norms could impact 50%+ of revenue.