Arihant Capital profits halve as CFO resigns
Annual earnings drop **46.4%** on weak fee income, while Q4 net profit collapses to just **₹0.50 crore**.
What's new with Arihant Capital Markets Ltd.
- FY26 profit fell **46.4%** as broking fee income dropped and the firm incurred fair value losses.
- Q4 net profit plunged **93.5%** year-over-year to **₹0.50 crore**.
- CFO Uttam Maheshwari resigned effective May 31.
Why this matters for Arihant Capital Markets Ltd.
The company's core brokerage business is struggling against a double-whammy of falling fee income and mark-to-market losses. The simultaneous loss of its CFO at this juncture creates a leadership vacuum during a period of poor financial performance.
What we're watching
- Any communication regarding the search for a new CFO.
- Whether Q1 performance shows any stabilization in fee income.
- The trajectory of fair value losses in the coming quarters.
The full read
Arihant Capital Markets finished **FY26** with a **46.4%** decline in consolidated net profit, which fell to **₹31.5 crore** from **₹58.7 crore** the prior year. The momentum worsened significantly in the final three months of the year, where net profit collapsed to **₹0.50 crore**—a **93.5%** drop compared to the **₹7.7 crore** recorded in the same quarter last year. Beyond the financials, the company must now manage a leadership transition following the resignation of CFO Uttam Maheshwari, effective May 31. The board opted for stability on the payout front, keeping the dividend at **₹0.50** per share. The combination of shrinking margins in its core brokerage operations and a departing finance chief makes the next few quarters critical for the firm's credibility.
Questions answered
- What is happening with the dividend?
- The board maintained the dividend at **₹0.50** per share, unchanged from the previous year.
- Why did the profit decline so sharply?
- The decline stems from reduced fee and commission income combined with net fair value losses reported by the broking firm.