11th February 2025; Mumbai: Arihant Capital reported its third-quarter results for the financial year 2025 with revenue at INR 517.8 million down 32.2% QoQ and 28.72% YoY. However, the revenue for 9 months ending 31 December 2024 jumped 17.24% YoY. The drop has been mainly due to tighter regulations in the derivatives segment, falling markets that resulted in a drop in overall volumes, and lower participation of retail investors.

On profitability, the company reported a profit after tax (PAT) of INR 122.5 million down 38.54% QoQ and 37.44% YoY. Despite this, the company achieved an 11.13% growth in its 9-month profit, totaling INR 2,009.77 million by December 2024. Interest income for Q3FY2025 increased by 21.97% YoY to INR 199.4 million, though it saw a sequential decrease of 16.1%.

The company said its total expenses fell 15.06% YoY and 22.27% QoQ to INR 407.15 million.

With 30+ years of legacy, Arihant Capital is continuously focusing on growing business verticals pan India in Tier 2 & Tier 3 cities. Amongst the segments, there are a lot of growth opportunities and the company is continuously working towards expansion their focus remains on diversifying revenue streams through portfolio management services, and alternative investment funds along with catering to institutional & retail clients.

During the quarter company expanded its offline presence with 11 new branch openings and also hired over 60 new employees to expand its digital and offline business.

For verticals, it is strengthening & expanding both its Institutional & retail broking business by building customer relationships & providing them services to participate in its annual conference, roadshows, etc. They are serving over 120+ institutional clients including top banks, insurance companies, pension funds, and AMCs, and ~2.5 lakh+ retail customers. Also, Arihant remains focused on expanding its client base for retail segments and expanding its B2B business.

On the digital journey, their Mobile app ‘ArihantPlus’ has been well received by the customers and is simple to use and is a user-friendly interface packed with pro tools for advanced traders and investors has led to over 5.5 lacs total downloads. It has a consistent 99% uptime.

For Merchant Banking, the company managed rights issues, and open offers during the quarter, including Vardman Polytex INR 490 million rights issue. For FY25, management remains positive for the growth of its Merchant Banking Division as they have signed mandates for upcoming IPO (including mainboard and 16 SMEs). Additionally, they have tied up with fa ew wealth & private banking players to provide merchant banking services to their small and medium-sized corporate clients.

Further, Arihant Capital is looking for expansion in alternative investment funds (AIF) and this strategic move will enable them to diversify their product offerings for HNI clients and help them to deliver comprehensive and tailored investment solutions.

In all, their top priority is to enhance and safeguard the financial well-being of corporate and institutional clients as well as individual customers. So, their focus will be on deepening relationships with existing customers and attracting new ones, recruiting and retaining the right talent, diversifying revenue streams, and continuously upgrading technology.