| Established promoter experience and proven operational track record
The promoters of Arihant Superstructures Limited (ASL) have extensive experience and a well-established track record in the real estate industry. ASL is part of the Navi Mumbai–based Arihant Group, promoted by Mr. Ashokkumar Chhajer, Mr. Parth Chhajer and Mr. Nimish Shah, who collectively have nearly two decades of industry experience. The group has delivered projects across the luxury, mid-income and affordable housing segments in Navi Mumbai, Maharashtra, with a cumulative sold area exceeding 5 million sq. ft. The group’s established presence in the Navi Mumbai real estate market, which has witnessed strong growth in recent years, is expected to support the saleability of its ongoing and upcoming projects. Acuite believes that the promoters’ extensive experience, along with the group’s proven execution track record, will remain a key strength in the timely and successful completion of its projects.
Favourable location and integrated project amenities
Arihant World Villas is a platinum-category project spread across 77 acres of land at Chowk, located off the old Mumbai–Pune highway. The site is approximately a 40-minute drive from the upcoming Navi Mumbai International Airport and about 80–90 minutes from South Mumbai. In addition to 362 villas, ASL plans to develop a 221-key hotel on 9 acres and a sports club (gymkhana) on 10.5 acres. The gymkhana is expected to generate revenue through membership fees, supplemented by income from food and beverage sales, entertainment, and sports venue bookings. The hotel is envisioned to cater to wedding destinations, corporate events, and regular room bookings.
Above Average Financial Risk Profile
The group’s financial risk profile remains above average, characterised by a healthy net worth, high gearing, and moderate debt protection metrics. Net worth improved to Rs. 377.73 crore as on 31st March 2025 from Rs. 323.35 crore as on 31st March 2024, supported by profit accretion to reserves. As on 30th September 2025, the net worth further increased to Rs. 430 crore compared to Rs. 377 crore as on 31st March 2025, driven by an equity infusion of Rs. 2.09 crore and an addition of Rs. 30.04 crore to share premium reserves. The group’s gearing increased to 1.95 times as on 31st March 2025 against 1.48 times in the previous year, primarily due to an overall rise in debt levels. Debt protection indicators also moderated, reflected in an Interest Coverage Ratio (ICR) of 1.34 times and a Debt Service Coverage Ratio (DSCR) of 1.00 time as on 31st March 2025, compared to 1.88 times and 1.86 times, respectively, in FY24. The DSCR remained moderate as on 31st March 2025, as NCDs amounting to Rs. 52.03 crore were maturing in December 2024 and were subsequently repaid through the issuance of fresh NCDs totalling Rs. 72.41 crore.
Acuite expects the group’s financial risk profile to improve over the near to medium term, supported by strengthening net worth and planned capital infusion.
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| High demand risk albeit improving sales traction and low funding risk
The ongoing project “World Villas” has a total saleable area of 14,88,120 sq. ft., of which Phase 1 constitutes 9,21,531 sq. ft., out of which around 39 per cent of the inventory has been sold as on 30th September 2025. The project is planned to be executed in three phases, with Phase 1 comprising 181 villas, Phase 2 comprising 119 villas, and the balance forming Phase 3. The funding risk for the project remains low, as around 40 per cent of the total budgeted funds have been incurred. The total budgeted outlay stood at Rs. 533 crore, of which Rs. 217 crore had been incurred as on 30th September 2025. Project construction commenced in June 2024 and is scheduled for completion by March 2030. As on 30th September 2025, World Villas had sold area worth Rs. 318.71 crore and received customer advances of Rs. 34.85 crore. Out of the total budgeted cost of Rs. 533 crore for Phase 1 and Phase 2, the group had incurred Rs. 217 crore (40 per cent of total cost), funded through promoter’s contribution of Rs. 139 crore, bank debt of Rs. 43 crore, and customer advances of Rs. 35 crore. Construction progress for Phase 1 is in full swing, with around 36 per cent of the total budgeted cost incurred as on 30th September 2025, compared to 15 per cent as on 31st August 2024. However, any significant delay in project execution may lead to cost overruns, which will remain a key rating sensitivity. With around 64 per cent of the construction cost still pending, any escalation in costs may exert pressure on profitability and cash flows, potentially affecting the company's debt-servicing capability. Demand risk for the project is considered moderate, as around 39 per cent of the total inventory had been sold as on 30th September 2025, compared to 14 per cent during the previous review. The average selling price (ASP) has also improved significantly, rising by 77 per cent from Rs. 3,187/sq. ft. as on 31st August 2024 to Rs. 5,649/sq. ft. as on 30th September 2025, driven by a steep increase in land prices within the micro-market, which have tripled over the last 15 months. Acuite believes that timely disbursement of debt and steady inflow of customer advances will remain key monitorable going forward.
Risk associated with ongoing projects within the group
The Arihant group has a total of 25 ongoing projects, including World Villas – Phase 1, as on 30th September 2025. At the group level, the total units available for sale (developer’s share) stood at 8,121 units, of which 4,115 units have been sold, translating to about 51 per cent of the total saleable inventory. Additionally, the group’s total saleable area (developer’s share) amounted to 74,08,438 sq. ft., of which 39,48,489 sq. ft. has been sold, representing around 53 per cent. Of the 25 ongoing projects, 10 projects have achieved sales of up to 30 per cent, 11 projects fall in the 31–71 per cent sales range, and the remaining 4 projects have recorded sales of 76 per cent and above. Acuite believes that the group’s ability to maintain sales momentum and execute its ongoing projects in a timely manner will remain essential for mitigating project-related risks.
Susceptibility to Real Estate Cyclicality and Regulatory Risks
The Indian real estate sector is highly fragmented, with most developers operating within specific cities or regions. The industry is inherently cyclical, with performance closely linked to movements in property prices and interest rates. Any decline in prices or rise in borrowing costs can directly impact sales momentum and overall operational performance. Given the sector’s typically high leverage levels, the elevated cost of borrowing often limits developers’ ability to significantly reduce prices to stimulate demand. Additionally, the industry remains exposed to regulatory risks, particularly changes in stamp duty and registration charges, which have a direct bearing on buyer sentiment and consequently influence the operating performance of real estate players.
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