GANESHHOU

Ganesh Housing reported a muted Q1 FY26, with revenue at INR151 crores, a 30% year-on-year decline. Despite this, EBITDA margins expanded significantly to 85% from 71% YoY, leading to an EBITDA of INR128 crores (-18% YoY). PAT stood at INR93 crores, down from INR114 crores YoY, with PAT margins widening to 61.6% from 51.6%. Management expressed optimism for the upcoming quarters, expecting improved performance to compensate for the Q1 slowdown.

The Malabar Retreat project is ahead of schedule with 43% construction complete and 30% of units booked, though sales are not yet recognized. Million Minds SEZ Phase 1 is 80% leased or under discussion, with lease income anticipated by Q3-Q4 FY26 at 70-75 Rs per square feet, projecting an annual rental of INR72 crores. The One Thaltej commercial project (1.8 million sq ft) is in final approval stages, with construction expected to commence later this quarter, targeting INR2,100 crores in lifetime revenue.

The Godhavi Township, a 450-acre integrated development, was the sole contributor to Q1 FY26 project sales, with 10 acres (41,000 sq meters) sold at an average realization of INR30,000 per square feet. Management projects an estimated sales potential of over INR5,000 crores from Godhavi over the next 7-10 years, employing a hybrid monetization strategy of plotting schemes and bulk sales. This project is expected to contribute 80-90% of FY26 profitability from projects.

Ganesh Housing maintains its guidance for a 30% CAGR on the bottom line. For the next three years, the company targets INR3,100 crores in sales from two residential phases of IT SEZ and the One Thaltej commercial project. The company emphasizes its strong cash position and negligible gross debt, providing flexibility to execute projects at scale and fund construction from internal sources without additional debt.

The Ahmedabad real estate market experienced a cautious sentiment in April and May, attributed to macro indicators and geopolitical factors. However, a distinct pickup in activity was observed in June. Management clarified that project delays were a conscious strategic decision to align launches with market demand, rather than a lack of planning, aiming to prevent inventory build-up and optimize realizations. They anticipate a mid-year turn in buyer sentiment and stronger momentum from Q2 onwards.

The company's total land bank stands at 525 acres, which is 100% unencumbered. The Godhavi Township accounts for approximately 422 acres of the balance land. Management noted that the Olympic sports city development near Godhavi is on government land and does not involve their private land parcels. Discussions around increasing intercity TDRs are seen as potentially positive for developer profitability, with Ganesh Housing being well-positioned to benefit.