Release Date: July 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Ganesh Housing Corp Ltd (BOM:526367, Financial) reported a strong EBITDA margin increase from 71% to 85%, indicating improved operational efficiency.
- The Malabar Retreat project is progressing ahead of schedule, with 43% of construction completed, and has seen an uptick in footfalls since opening show units.
- Ahmedabad continues to be a strong market for Ganesh Housing Corp Ltd (BOM:526367), accounting for 42% of real estate investments in Gujarat.
- The company maintains a strong cash position and negligible gross debt, providing financial flexibility for future projects.
- The Godhavi township project is progressing well, with significant land sales contributing to Q1 income and a hybrid monetization strategy in place.
Negative Points
- Revenue in Q1 FY26 dropped by 30% year-over-year, indicating a challenging quarter for Ganesh Housing Corp Ltd (BOM:526367).
- The company has faced delays in project timelines, which have been extended due to market conditions and strategic decisions.
- There is cautious sentiment in the real estate market, particularly in the housing sector, affecting new project launches.
- The company's cash expectations have been revised downwards, impacting financial projections.
- The first quarter's performance was muted, with a significant portion of income reliant on land sales rather than diversified revenue streams.
Q & A Highlights
Q: The timeline of planned projects has been extended, and cash expectations revised downwards. Can we expect projects to progress timely?
A: Yes, the delays were strategic, aligning with market demand to avoid inventory buildup. Projects like Malabar Retreat and Million Minds are progressing well, with higher-than-expected realizations. We are confident in timely project completion with slight delays.
Q: What is the current inventory status for Malabar Retreat?
A: Malabar Retreat has approximately INR280 crore of inventory under construction. Bookings are ongoing, and the inventory consists of unbooked units.
Q: Should we expect land sales to remain a significant contributor in FY25?
A: No, the majority of income this quarter is from the Godhavi township project. We are focusing on project sales rather than land sales as a primary income source.
Q: How are rental yields expected to perform given recent interest rate changes?
A: Rental yields are expected to remain strong, around 6-7%, despite interest rate changes. The commercial market in Ahmedabad is robust, and we anticipate higher-than-estimated rentals.
Q: What is the expected cash flow potential over the next three years?
A: We expect around INR3,100 crore in cash flow from residential phases of IT SEZ and commercial projects over the next three years, contributing significantly to our financial performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
