Revenue and Profitability Trends
Over the seven-year period ending March 2025, Arihant Super. has seen its net sales rise from ₹239.27 crores in 2019 to ₹498.83 crores in 2025, reflecting a more than doubling of top-line revenue. The company experienced a sharp increase in sales particularly between 2021 and 2023, with net sales jumping from ₹270.13 crores in 2021 to ₹389.44 crores in 2023, before stabilising around the ₹500 crore mark in the subsequent years.
Operating profit (PBDIT) excluding other income also followed an upward trend, growing from ₹53.37 crores in 2019 to ₹104.26 crores in 2025. Despite a slight dip in operating profit margin from 22.31% in 2019 to 20.9% in 2025, the company maintained a healthy margin profile, with margins peaking at 22.18% in 2024. Profit after tax (PAT) similarly increased from ₹18.33 crores in 2019 to ₹54.68 crores in 2025, with PAT margins improving from 7.66% to nearly 11% over the same period.
Strong fundamentals, steady climb upward! This Large Cap from Telecommunication sector earned its Reliable Performer badge through consistent execution. Safety meets solid returns here!
- - Reliable Performer certified
- - Consistent execution proven
- - Large Cap safety pick
Cost Structure and Margins
The company’s raw material costs have risen substantially, from ₹195.49 crores in 2019 to ₹450.63 crores in 2025, reflecting the scale of operations. However, the increase in raw material costs was partially offset by a significant negative change in stock levels, which improved the working capital efficiency. Employee costs also increased steadily, reaching ₹31.75 crores in 2025 from ₹13.81 crores in 2019, indicating investment in human resources to support growth.
Other expenses rose in tandem with business expansion, reaching ₹78.54 crores in 2025. Despite these rising costs, the company managed to sustain a gross profit margin above 13% in recent years, a notable improvement from single-digit margins in 2020 and 2021.
Balance Sheet and Financial Position
Arihant Super.’s total assets expanded from ₹688.71 crores in 2021 to ₹1,585.44 crores in 2025, driven by growth in both current and non-current assets. Inventories surged to ₹728.47 crores in 2025 from ₹354.71 crores in 2021, signalling increased stockholding to meet demand. Sundry debtors and other current assets also rose significantly, supporting higher sales volumes.
On the liabilities side, total debt increased markedly from ₹295.52 crores in 2021 to ₹738.37 crores in 2025, with long-term borrowings more than doubling in the same period. Shareholders’ funds strengthened from ₹138.70 crores in 2021 to ₹309.17 crores in 2025, reflecting retained earnings and reserves growth. The book value per share improved from ₹33.7 in 2021 to ₹72.83 in 2025, underscoring enhanced net asset value for shareholders.
Cash Flow Dynamics
Cash flow from operating activities has been under pressure in recent years, with negative cash flows recorded in 2024 and 2025 at ₹-120 crores and ₹-177 crores respectively. This was largely due to significant increases in working capital requirements, particularly inventory build-up. Investing activities saw a notable outflow of ₹79 crores in 2025, reflecting capital expenditure and asset acquisitions. Financing activities provided substantial inflows, with ₹260 crores raised in 2025 to support expansion and working capital needs. Despite these challenges, the company maintained a stable closing cash balance of ₹18 crores in 2025.
Considering Arihant Super.? Wait! SwitchER has found potentially better options in Realty and beyond. Compare this Smallcap with top-rated alternatives now!
- - Better options discovered
- - Realty + beyond scope
- - Top-rated alternatives ready
Summary and Outlook
In summary, Arihant Super. has exhibited robust growth in revenue and profitability over the past several years, supported by expanding operational scale and improving margins. The company’s balance sheet has strengthened with rising net worth, though accompanied by increased leverage to finance growth initiatives. Cash flow management remains an area to watch, given the recent negative operating cash flows driven by working capital demands.
Investors should note the company’s consistent earnings growth and improving book value per share, which signal value creation. However, the rising debt levels and cash flow pressures warrant careful monitoring. Overall, Arihant Super.’s historical performance reflects a company in expansion mode, balancing growth with financial discipline.
Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →
