Detailed Narrative
Q2 FY26 Performance Highlights and Profitability Milestone
Aurum PropTech achieved its first profitable quarter on an adjusted EBITDA basis in Q2 FY26, improving by 700 basis points to +3% from -4% in Q2 FY25. Revenue grew 30% year-on-year to INR 82.50 crores, while PBT margin improved by nearly 1000 basis points. The company's total income for the quarter grew 30% YoY to INR 87.66 crores, reflecting disciplined growth and operational efficiency.
Strategic Acquisition of PropTiger and Distribution Vertical Growth
The company successfully completed the acquisition of 100% equity in PropTiger Marketing Services Private Limited for INR 86.45 crores, settled via equity share swap, resulting in REA Group holding 5.5% of Aurum PropTech. This acquisition is expected to significantly boost the distribution vertical, which already saw a 62% year-on-year revenue increase to INR 27 crores. Management targets the distribution vertical to soon deliver INR 200 crores ARR, contributing to a total company ARR target of INR 500 crores by Q4 FY26.
Rental Business Momentum and International Expansion
The rental business maintained strong growth, with revenue reaching INR 54.11 crores, up 25% year-on-year, and achieving an ARR of INR 200 crores. The managed portfolio expanded to 258 properties with over 19,100 beds, maintaining 73% overall occupancy. Notably, the company launched 'Nestr' in Dubai during Q2 FY26, marking its first international foray into the Middle East rental ecosystem, with substantial revenue expected in the next two quarters.
Technology and AI-led Product Innovation
Aurum Analytica sold 95,900 leads, a 53% growth year-on-year, and Sell.Do CRM scaled with 170+ enterprise deals and 1,400 new licenses. AI-led product stack delivered 35% engineering efficiency gains, adding features like Call Transcripts, Translation, and AI Insights. The company initiated the MVP for its Next Generation Analytica Platform, integrating AISEO capabilities to boost organic rankings and expand reach in Tier-2 markets.
Capital Vertical and SM REIT Progress
AMSA Investments, a subsidiary, is progressing with its SM-REIT following SEBI approval. The company is evaluating a robust pipeline of Grade-A, income-generating commercial real estate assets and plans a prudent approach before launching the inaugural scheme. Management is observing the slow uptake in the broader SM REIT market and will launch when investor traction builds, aiming to become the largest SM REIT player in India.
Past Strategic Challenges and Learnings
Management identified student living as a 'dampener' due to macroeconomic headwinds🌐, leading to a shift in resources. Rental SaaS growth stagnated, and the fractional ownership segment faced challenges due to early entry before SM REIT regulations. Conversely, Aurum Analytica's growth and HelloWorld's profitable momentum were highlighted as unexpected successes, demonstrating the company's ability to adapt and execute.
Financial Position and Debt Reduction
As of September 30, 2025, total assets stood at INR 905.84 crores, with total liabilities at INR 413.9 crores. The company successfully reduced its total borrowing to INR 61.82 crores from INR 81.01 crores as of March 31, 2025. Cash and cash equivalents were INR 153.89 crores, indicating a healthy liquidity position to support future growth initiatives.