GANESH HOUSING LIMITED — Q2 FY26 earnings call

Call held 10 Nov 2025

Management summary

Ganesh Housing Limited reported a strong sequential performance in Q2 FY26, driven by renewed momentum in the Ahmedabad real estate market. The company achieved ₹174 crores in revenue and ₹108 crores in PAT, with robust EBITDA margins. Strategic corporate updates include a name change and subsidiary amalgamation. While project execution is progressing, the FY26 PAT growth guidance was revised downwards, reflecting a muted market for part of the year, though management remains confident in future growth and debt-free operations.

Highlights

  • Revenue for Q2 FY26 stood at ₹174 crores, reflecting a 15% sequential growth from Q1 FY26.

  • EBITDA for Q2 FY26 was ₹148 crores, growing 16% quarter-on-quarter, with EBITDA margins maintained at around 85%.

  • Profit After Tax (PAT) for Q2 FY26 reached ₹108 crores, an increase from ₹93 crores in Q1 FY26.

  • PAT margins expanded by 40 basis points sequentially, though year-on-year PAT was lower by about 30% due to FY25 being an exceptional year.

  • The company formally transitioned from Ganesh Housing Corporation Limited to Ganesh Housing Limited.

  • The Board approved the amalgamation of wholly-owned subsidiary, GatIL, with Ganesh Housing Limited to simplify corporate structure and enhance financial flexibility.

  • FY26 PAT growth guidance was revised from 25-30% YoY to maintaining last year's numbers (approximately ₹600 crores).

Key financials

  1. Revenue ₹174 Cr +15%QoQ
  2. EBITDA ₹148 Cr +16%QoQ
  3. EBITDA Margin 85%
  4. PAT ₹108 Cr -30%YoY
  5. PAT Margin Expansion 40 bps

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

  • PAT Growth Profitability · FY26 · Medium confidence maintain last year's numbers (approx ₹600 crores)

    Previously 25-30% YoY growth → maintain last year's numbers (approx ₹600 crores)

    Definitely for FY26, this growth of 20%-30% does not look possible. I think we may be able to give a clearer picture after Q2, but I think we will maintain the profit of the last year, which was a very astronomical year, as you know, having almost 600 crores of profits.

    — B. Ravi

Project Completion

  • Million Minds SEZ Phase-1 Completion Project Completion · Q4 FY26 · High confidence Q4 FY26
    This is expected to be completed by Q4 of FY26.

    — B. Ravi

Annuity Income

  • Million Minds SEZ Phase-1 Lease Rentals Commencement Annuity Income · Q1 FY27 · High confidence latest by Q1 FY27
    This will pave the way for lease rentals to commence latest by Q1 of FY27.

    — B. Ravi

  • Million Minds SEZ Phase-1 Annual Rental Income Annuity Income · annual · High confidence around ₹72-80 crores
    You guided around 72 crores of annual rental income from Million Minds Phase-1.

    — Deepesh J Sancheti

  • Million Minds SEZ Total Lease Income (all phases) Annuity Income · per annum (all phases) · Medium confidence ₹500 crores or more per annum
    all phases put together, what we had earlier told would be around 500 crores or more of lease income.

    — B. Ravi

  • Rental Escalations Annuity Income · ongoing · High confidence 7% to 10% (yearly or three-yearly); annual ~5%, after 3 years ~15%
    it continues to be in the variation of 7% to 10% is either yearly in some cases or three yearly in the other cases. ... If it is annually, it will be roughly about 5%. If it is after rest of three years, it will be 15%.

    — B. Ravi

  • Rental Finalization Annuity Income · by March 31, 2026 · High confidence major part of entire rentals and escalation part frozen
    By 31st March 2026, I think we would have frozen a major part of the entire rentals and the escalation part of it.

    — B. Ravi

Project Timeline

  • Million Minds SEZ Total Development Timeline Project Timeline · total development · Medium confidence five to seven years
    But put together, if you see, it could take five to seven years.

    — B. Ravi

Project Launch

  • 191 Thaltej Commercial Development Construction Commencement Project Launch · H2 FY26 · High confidence shortly in H2 FY26
    construction is set to commence shortly in H2 FY26.

    — B. Ravi

Revenue Potential

  • 191 Thaltej Commercial Development Potential Lifetime Revenue Revenue Potential · lifetime · High confidence ₹2100 crores
    With a potential lifetime revenue of 2100 crores, it will be our flagship commercial development over the next 3-4 years.

    — B. Ravi

Land Monetization

  • Godavari Phase-1 Remaining Monetization (17 acres) Land Monetization · Q3/Q4 FY26 · High confidence in these quarters itself
    the balance 17 should be done in these quarters itself.

    — B. Ravi

Land Bank

  • Land Bank Acquisition Land Bank · ongoing · High confidence 5-10% of existing land bank
    it could be about 5%-10% of the existing land bank is something which we've always been adding.

    — B. Ravi

Debt

  • Debt Status Debt · FY26 or FY27 · High confidence debt-free
    we may not be needing to take any more debt and we will continue to be debt free even in FY 26 or FY27.

    — B. Ravi

Project Cost & Annuity

  • SEZ Total Development Cost vs. Annuity Project Cost & Annuity · across all SEZ development · Medium confidence spend ₹1600-1700 crores for an annuity of ₹500-600 crores per annum
    So, we probably spend 1600 crores to 1700 crores and that could get us an annuity of about 500 crores to 600 crores per annum across all the entire development on the SEZ part.

    — Henil Bagadia

Risks & concerns

  • Revision of FY26 PAT Growth Guidance

    medium

    Management revised FY26 PAT growth guidance downwards from 25-30% YoY to maintaining last year's numbers (approx ₹600 crores), citing a muted real estate market.

    Management acknowledged

  • Muted Real Estate Market

    medium

    The real estate market remained muted for almost nine months of the calendar year, impacting land deals and overall performance, though demand is now picking up.

    Management acknowledged

  • Project Delivery Delays

    low

    Analysts noted consistent extensions in planned project timelines, which management attributed to strategic timing and market conditions for optimal launch.

    Analyst acknowledged

Areas of evasion (2)

  • exact acquisition cost of new land parcels
  • precise Q3/Q4 revenue/profit targets beyond 'muted'

Q&A highlights

2 direct
Project Timelines and Delays Partial
Not all the planned projects have been extended. Actually, all the planned projects, two of them, whether it is the Retreat or whether it is the SEZ, have been on stream and they'd be also completed before. Also, the Godavari, what we have talked about Phase-1, 50 acres, that's been absolutely on stream... The only thing which has really been extended, I can say, is the 191 Thaltej Commercial Project, wherein I think it's all for the good because the kind of traction, which is now being seen in the commercial space, has really risen in the last 6-8 months.

Analyst questioned consistent project delays and revised cash flow expectations, prompting management to clarify which projects are on track versus those with minor delays.

Asked by Siddhesh Dharmadharkari

Company Strategy: Land Trader vs. Real Estate Developer Direct
Let me tell you, we are a real estate company with various verticals... we are developing various projects. For example, we are developing the SEZ 64 acres... What you see as land is the other vertical of ours. Whenever the development of this is not good to go ahead with... we continue to make cash flows from monetizing a large opportunity that we have in terms of the land bank... So, I would want to make a small correction. We are a real estate development project and not that we are going to be.

Analyst challenged the market perception of the company as a 'land trader,' leading management to articulate their strategy as a diversified real estate developer leveraging land monetization for cash flow.

Asked by Aaditya Agrawal

Million Minds SEZ Rental Income and Total Potential Direct
I can always say that it's not going to be limited only within 70 crores or 80 crores of rentals. Because even Phase-2 and others we have planned is going to be of a similar lease out area... all phases put together, what we had earlier told would be around 500 crores or more of lease income. And that, at that point in time, will become a significant portion of EBITDA.

Question clarified the expected annuity income from Million Minds SEZ Phase-1 (₹72-80 crores) and the significant long-term potential of ₹500-600 crores from all phases, which is crucial for future EBITDA contribution.

Asked by Deepesh J Sancheti

3 min read 6 chapters

Detailed narrative

Q2 FY26 Financial Performance Overview

Ganesh Housing Limited demonstrated a strong sequential recovery in Q2 FY26, with revenue reaching ₹174 crores, marking a 15% quarter-on-quarter increase. EBITDA also saw a significant 16% QoQ growth to ₹148 crores, maintaining robust margins of approximately 85%. Profit After Tax (PAT) improved to ₹108 crores from ₹93 crores in Q1 FY26, with PAT margins expanding by 40 basis points sequentially. However, year-on-year PAT was lower by about 30%, attributed to FY25 being an exceptional year and a muted real estate market for the initial nine months of the calendar year.

Corporate Restructuring and Identity Refresh

The company announced a formal transition from Ganesh Housing Corporation Limited to Ganesh Housing Limited, reflecting a refreshed identity and simplified brand architecture. Additionally, the Board approved the amalgamation of its wholly-owned subsidiary, GatIL, with Ganesh Housing Limited. This strategic move aims to streamline governance, enhance transparency, and unify the management structure, consolidating assets and liabilities to improve financial flexibility and potentially eliminate holding company discounts in valuation.

Ahmedabad Real Estate Market Dynamics

Ahmedabad is highlighted as India's most affordable and high-growth real estate market, with an EMI to income ratio of 18%. The city's selection as a host for the 2030 Commonwealth Games and major infrastructure upgrades like Metro Phase-2 and GIFT City expansion are driving a strong investment cycle. Property values are expected to appreciate by 10-15% annually, fueled by end-user demand, investor inflows, and corporate leasing. Ahmedabad now accounts for nearly 42% of Gujarat's total real estate investments.

Key Project Updates and Progress

Malabar Retreat, a premium residential project, is ahead of schedule and has crossed the halfway mark, with 35-40% of bookings either done or under consideration. Million Minds SEZ Phase-1, a flagship commercial development, is progressing steadily, with 50% of leasable area under LOIs and expected completion by Q4 FY26, with lease rentals commencing by Q1 FY27. The 191 Thaltej commercial development, with a potential lifetime revenue of ₹2100 crores, is set to commence construction in H2 FY26. Godavari area cluster development continues as an anchor land monetization engine, with 33 of 50 acres in Phase-1 already sold, exceeding initial realization estimates.

Revised Financial Outlook and Future Guidance

Management revised its FY26 PAT growth guidance, stating that the earlier target of 25-30% year-on-year growth is unlikely. Instead, they aim to maintain last year's PAT numbers, approximately ₹600 crores. For Million Minds SEZ Phase-1, an annual rental income of ₹72-80 crores is expected, with a total potential of ₹500-600 crores per annum from all phases over 5-7 years. The company plans to add 5-10% to its existing 524-acre land bank and expects to remain debt-free through FY26 and FY27.

Land Bank Strategy and Debt-Free Commitment

Ganesh Housing maintains a substantial land bank of approximately 524 acres, diversified across key corridors. The strategy involves monetizing land where future developments are not planned to generate cash flow, while simultaneously pursuing various developmental projects. The company emphasized its commitment to remaining debt-free, stating that current cash flow and project-linked collections are sufficient to fund ongoing and upcoming construction, including the 191 Thaltej project, without needing additional debt in FY26 or FY27.

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