Arihant Superstructures targets ₹700 cr revenue on back of unit deliveries
The developer expects to turn free cash flow positive within two years after four consecutive years of cash burn.
What's new with Arihant Superstructures Ltd.
- Management guides for revenue to exceed ₹700 cr this year.
- Targeting 2,000+ unit deliveries by FY27 after 1,721 in the last fiscal.
- Company aims to reach free cash flow positive status by FY26.
Why this matters for Arihant Superstructures Ltd.
The company has run negative operating cash flow for four years. The transition to a positive cash profile is the primary test for the developer's growth plans.
What we're watching
- Whether the World Villa pricing power holds amid planned construction spend.
- Consistency in hitting delivery targets as scale increases.
- Actual realization of the targeted margin range.
The full read
Arihant Superstructures plans to break a four-year streak of negative operating cash flow within the next two years. Management expects to cross ₹700 crore in revenue this year. This rests on a delivery pipeline that grew from 344 units last year to 1,721 units by March 31. The firm set a target of 2,000 deliveries for FY27. Profitability targets are ambitious, with the company guiding for EBITDA margins of 25-27%. Execution is the main variable. The developer plans to spend ₹400 crore on construction this year. It has already raised prices at its World Villa project by ₹1 crore per unit. Whether these price hikes help the bottom line while the company shifts its cash flow status will determine if the current margin outlook is realistic. The next test is cash generation.