GANESH HOUSING LIMITED — Q1 FY26 earnings call

Call held 21 Jul 2025

Management summary

Ganesh Housing reported a muted Q1 FY26 with a 30% YoY revenue decline to INR151 crores and PAT of INR93 crores. Despite the top-line dip, margins improved significantly. The Godhavi Township was the sole contributor to Q1 project sales, while key projects like Million Minds SEZ and One Thaltej are progressing well with strong future revenue potential. Management remains confident in achieving a 30% CAGR on the bottom line, anticipating stronger performance in subsequent quarters.

Highlights

  • Revenue for Q1 FY26 stood at INR151 crores, marking a 30% year-on-year drop.

  • EBITDA for Q1 FY26 was INR128 crores, an 18% year-on-year reduction.

  • EBITDA margins significantly widened to 85% in Q1 FY26 from 71% year-on-year.

  • PAT for Q1 FY26 was INR93 crores, down from INR114 crores year-on-year.

  • PAT margins expanded to 61.6% in Q1 FY26 from 51.6% year-on-year.

  • Godhavi Township contributed 100% of Q1 FY26 project sales, with 10 acres sold at an average realization of INR30,000 per square feet.

  • Million Minds SEZ Phase 1 is 80% leased or under active discussion, with lease income expected by Q3-Q4 FY26 at 70-75 Rs per square feet.

  • The One Thaltej commercial project (1.8 million sq ft) is expected to generate INR2,100 crores in lifetime revenue.

Key financials

  1. Revenue ₹151 Cr -30%YoY
  2. EBITDA ₹128 Cr -18%YoY
  3. EBITDA Margin 85%
  4. PAT ₹93 Cr
  5. PAT Margin 61.6%

What they filed

Q1 FY27: revenue up 6750.0%, net profit up 560.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue242 255 39 4 104 −57%0 −100%17 −56%274 +6750%
EBITDA209 211 17 -12 79 −62%-11 −105%1 −94%112 +1033%
Net profit155 156 11 -10 57 −63%-9 −106%-1 −109%46 +560%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Profitability

  • Bottom Line CAGR Profitability · FY26 · High confidence 30%
    We always have given a guidance for a 30% CAGR on the bottom line. I think in spite of this one quarter which is slightly lower, we do believe that the 30% increase CAGR year-on-year on the profit will be maintained.

    — B. Ravi

Commercial Income

  • Million Minds SEZ Phase 1 Lease Income Commencement Commercial Income · Q3-Q4 FY26 · High confidence Q3-Q4 FY26
    We are on track to commence lease income by Q3 Q4 FY26 latest with expectation of the rentals to be around 7% to 75% per square feet.

    — B. Ravi

  • Million Minds SEZ Phase 1 Rentals Commercial Income · Q3-Q4 FY26 · High confidence 70-75 Rs per square feet

    — B. Ravi

  • Million Minds SEZ Phase 1 Annual Rental Commercial Income · Annual · High confidence INR72 crores
    You've guided around INR72 crores annual rental from Million Minds Phase 1.

    — B. Ravi

Project Revenue

  • One Thaltej Lifetime Revenue Project Revenue · Lifetime · High confidence INR2,100 crores
    Once it is done, it will be generating about INR2,100 crores in the lifetime revenue.

    — B. Ravi

Project Sales Potential

  • Godhavi Township Estimated Sales Potential Project Sales Potential · next 7-10 years · High confidence over INR5,000 crores
    We believe that the way it is going, the estimated sales potential could be well over INR5,000 crores which we had initially envisaged. And this will be transforming Godhavi into a self-sustained urban micro market over the next seven to 10 years.

    — B. Ravi

Project Sales Target

  • Sales from IT SEZ Residential & One Thaltej Project Sales Target · next 3 years · High confidence INR3,100 crores
    We are planning two of the residential phases of IT SEZ, as well as one full commercial project that is 191 Thaltej. So this three project is being targeted for next 3 years... So INR1,000 crores around INR3100 crores. That means one third of this is what we are talking about, right?

    — Rajendra Shah, B. Ravi

Project Launch

  • One Thaltej Construction Commencement Project Launch · Q1 FY26 · High confidence later part of this quarter
    we do believe that the construction commencement could start towards the later part of this quarter.

    — B. Ravi

Bookings Momentum

  • Bookings Momentum Bookings Momentum · from Q2 onwards · Medium confidence stronger momentum
    Bookings in Q1 were steady and we expect much stronger momentum from Q2 onwards as the festive season approaches.

    — B. Ravi

Risks & concerns

  • Cautious market sentiment

    medium

    The real estate market in Ahmedabad saw a somewhat cautious sentiment in April and May, influenced by macro indicators, Indo-Pakistan challenge, and international tariff uncertainty.

    Management acknowledged

  • Inventory build-up in the market

    low

    Analyst noted a 74% spike in inventory in the INR1-5 crore range. Management stated this is typical of 'very short cycles' and specific to 'unorganized ones' or 'over ambitious' players, not an industry-wide phenomenon.

    Analyst downplayed

  • Increased competition from large developers

    low

    Analyst raised concerns about competition from large players like Godrej due to infrastructure development. Management stated competition hasn't impacted them, Godrej is concentrated, and 'good competition is always welcome' for home-grown brands.

    Analyst downplayed

Areas of evasion (2)

  • Specific tenant names for Million Minds SEZ Phase 1 (due to NDA)
  • Exact total expenditure for Million Minds SEZ Phase 1 (deferred until construction completion)

Q&A highlights

3 direct
Project delays and revised cash flow expectations Direct
Yes, Jahnvi. It's relevant at this point in time to mention that, yes, these projects have been delayed from whatever earlier timelines we have said. But that is very consciously done, not as a fact of getting delayed because of lack of planning. But looking to the market conditions, we are trying to develop the projects when there is a demand for it in the market and not when we are ready with it.

Addresses investor concerns about project execution timelines and cash flow, clarifying that delays are strategic rather than operational failures.

Asked by Jahnvi Shah

IT SEZ commercial vs. residential strategy and rental yields Direct
IT SEZ as you know, is the Phase 1 is all on lease where I had mentioned that about 80% of that is already being leased and probably looking to this faction the way we are giving out for fit outs next month itself. And we are going to have the leasing comes from maybe 3, 4 months thereafter. We may plan the commercial that is Phase 2 of million mines. That which was supposed to be later. We might do that right away residential.

Provides clarity on the company's strategy for its commercial IT SEZ project, including leasing progress and future phase plans, which are key for annuity income.

Asked by Henil Bagadia

Godhavi project sales in Q1 and profitability contribution Direct
So I'm saying that let's say you know Q1 we did 41, 000 square meter sales of Godhavi project. Because of that the profitability has come,, basically that's Q1 instead. So based on your understanding and estimate for full year FY '26 how much profitability would be contributed by projects like, let's say Godhavi... Almost like 80%, 90% is what we look at.

Identifies the primary revenue and profitability driver for the current quarter and provides an outlook on its contribution to full-year profitability.

Asked by Raj Shah

2 min read 6 chapters

Detailed narrative

Q1 FY26 Financial Performance and Outlook

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.

Key Project Updates and Progress

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.

Godhavi Township: A Major Revenue Driver

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.

Future Growth and Profitability Targets

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.

Market Dynamics and Strategic Project Delays

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.

Land Bank and Regulatory Environment

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.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Realty earnings calls