💰 Financial Performance

Revenue Growth by Segment

Real Estate Development is the sole segment. Standalone revenue from operations grew 80.4% YoY to INR 76.70 Cr in FY25, while consolidated total revenue grew 36.1% YoY to INR 135.16 Cr.

Geographic Revenue Split

100% of revenue is generated within India, exposing the company entirely to domestic economic cycles and regulatory changes.

Profitability Margins

Net profit margin improved from -123.73% in FY24 to -93.40% in FY25. Despite the improvement, the company remains deeply loss-making with a consolidated net loss of INR 126.24 Cr.

EBITDA Margin

Consolidated EBITDA margin improved significantly from -72% in FY24 to -24% in FY25, reflecting a 48 percentage point improvement in core operational efficiency.

Capital Expenditure

Standalone Property, Plant and Equipment (PPE) stood at INR 2.18 Cr as of March 31, 2025, a decrease from INR 2.61 Cr in the previous year.

Credit Rating & Borrowing

Not disclosed in available documents; however, standalone finance costs reached INR 112.32 Cr in FY25, an 18.8% increase YoY.

⚙️ Operational Drivers

Raw Materials

Construction materials (implied under Project Expenses) such as steel, cement, and bricks; specific percentage breakdown per material is not disclosed.

Capacity Expansion

The company leverages its project pipeline represented by an inventory of INR 1,011.21 Cr as of March 31, 2025, up 8.6% from INR 931.07 Cr in FY24.

Raw Material Costs

Project expenses stood at INR 151.05 Cr in FY25, representing 111.7% of consolidated total revenue, which is a primary driver of the net loss.

Manufacturing Efficiency

Not applicable for real estate; however, the inventory turnover ratio is low at 0.07, indicating a long project lifecycle and high capital lock-up.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company aims to leverage its existing project pipeline and market presence in the residential sector, driven by urbanization and housing needs in India.

Products & Services

Residential and commercial units, specifically flats and plots.

Brand Portfolio

Emami Realty.

Market Expansion

Focus on leveraging market presence within India; specific new regions or timelines are not disclosed.

Strategic Alliances

Subsidiaries include Sneha Ashiana, New Age Realty, and Delta PV; Associates include Roseview Developers, Bengal Emami Housing, and Swan Housing.

🌍 External Factors

Industry Trends

The Indian real estate industry is seeing a shift towards organized players and continued demand in the residential sector, growing alongside urbanization.

Competitive Moat

The 'Emami' brand provides a durable trust-based moat in a fragmented market; sustainability depends on timely project delivery and maintaining quality standards.

Macro Economic Sensitivity

Highly sensitive to urbanization trends and housing demand; also sensitive to interest rate cycles affecting home loan affordability for customers.

Consumer Behavior

Increasing preference for urban housing and residential units driven by changing lifestyle needs and urbanization.

Geopolitical Risks

Limited direct impact due to domestic focus, though global commodity price spikes (steel/fuel) indirectly raise construction costs.

⚖️ Regulatory & Governance

Industry Regulations

Strict compliance with Ind AS 115 for revenue recognition and RERA for project approvals and customer protection is required.

Taxation Policy Impact

The company has a Deferred Tax Asset (Net) of INR 99.35 Cr as of March 31, 2025, which can be used to offset future taxable profits.

Legal Contingencies

The company reports zero pending litigations as of the audit date (May 22, 2025), which is a significant operational advantage.

⚠️ Risk Analysis

Key Uncertainties

The negative interest coverage ratio of -0.19 and negative equity position pose a significant risk to the company's status as a going concern.

Geographic Concentration Risk

100% of revenue is concentrated in India, leaving the company vulnerable to country-specific regulatory and economic shifts.

Third Party Dependencies

Dependency on external contractors for construction and related parties for financial support and project execution.

Technology Obsolescence Risk

Low risk in physical construction, but the company must adopt digital sales and project management tools to remain competitive.

Credit & Counterparty Risk

High risk indicated by the INR 55.88 Cr impairment on loans given in H1 FY26, suggesting potential non-recovery of financial assets.