💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: 'Construction and Development of Building for sale and other Real Estate activities'. Total operating income grew by 8,881% from INR 1.01 Cr in FY2023 to INR 90.71 Cr in FY2024. For H1FY2025, revenue stood at INR 63.02 Cr, representing a strong run-rate compared to the previous full year.

Geographic Revenue Split

Revenue is highly concentrated in Gujarat, specifically around Ahmedabad and the GIFT City in Gandhinagar. 100% of the current flagship project 'VIDA' (4.25 lakh sq. ft.) is located in GIFT City, creating a significant regional dependency.

Profitability Margins

Net Profit Margin (PAT) was 7.46% in FY2024 (INR 6.77 Cr profit on INR 90.71 Cr revenue) and improved to 10.23% in H1FY2025 (INR 6.45 Cr profit on INR 63.02 Cr revenue). This trend indicates improved operational efficiency as projects reach advanced stages of completion.

EBITDA Margin

EBITDA (PBILDT) margin improved significantly from 12.28% in FY2024 (INR 11.14 Cr) to 22.45% in H1FY2025 (INR 14.15 Cr). This 82.8% relative increase in margin reflects better cost management and higher realization from the 'VIDA' project.

Capital Expenditure

The company invested INR 4.79 Cr in financial assets/investments as of September 2025, up from INR 3.07 Cr in March 2025. This includes a strategic 30% stake acquisition in VirtSpaces Private Limited to integrate virtual reality into property sales.

Credit Rating & Borrowing

The company was assigned a 'CARE BBB; Stable' issuer rating as of November 12, 2024. It maintains a debt-free status for construction funding, with an overall gearing ratio of 0.01x, ensuring minimal interest cost impact on the bottom line.

⚙️ Operational Drivers

Raw Materials

Primary materials include steel, cement, and sand, though specific percentage breakdowns per material are not disclosed in available documents. These typically constitute 60-70% of total construction costs in the real estate sector.

Import Sources

Not disclosed in available documents; however, procurement is typically localized within Gujarat to minimize logistics costs for Ahmedabad-based projects.

Capacity Expansion

Current development capacity is centered on the 'VIDA' project with 4.25 lakh square feet (lsf) of saleable area. The company is expanding its 'Prop-tech' capacity through the VisionX accelerator program and a 30% stake in VirtSpaces.

Raw Material Costs

Construction costs are funded through internal accruals and customer advances rather than debt. Inventory increased by 15.1% from INR 103.04 Cr in March 2025 to INR 118.63 Cr in September 2025, reflecting ongoing construction activity.

Manufacturing Efficiency

Inventory turnover ratio improved from 0.95 in FY2024 to 1.39 in FY2025. This indicates faster conversion of construction-in-progress into sales, reducing the capital lock-up period.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is driven by a shift from traditional affordable housing to high-tech residential projects in emerging hubs like GIFT City. The strategy involves leveraging the VisionX accelerator to invest in Prop-tech startups, which enhances the sales process and operational scalability.

Products & Services

Residential apartments (specifically the 'VIDA' project), affordable housing units, and virtual reality prop-tech solutions through its associate VirtSpaces.

Brand Portfolio

Nila Spaces, VIDA (GIFT City project), VisionX (Prop-tech Accelerator).

New Products/Services

The company is introducing immersive VR property exploration through its 30% stake in VirtSpaces, which is expected to reduce sales cycles and marketing costs.

Market Expansion

Expansion is focused on the GIFT City (Gandhinagar) region, capitalizing on the area's growth as a financial hub. The company is also targeting the 25 million unit affordable housing shortage expected by 2030.

Strategic Alliances

30% stake in VirtSpaces Private Limited; VisionX accelerator managed by Awfficacy Capital; Associate Megacity Cinemall Private Limited; Subsidiary Nila Urban Living Private Limited.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable development and Prop-tech integration. There is a current urban housing shortage of ~10 million units, with an additional 25 million affordable units required by 2030, positioning the company for long-term volume growth.

Competitive Landscape

Competes with other residential developers in the Ahmedabad and Gandhinagar regions, particularly those launching new housing projects in GIFT City.

Competitive Moat

The company's moat is built on its debt-free balance sheet and early-mover advantage in GIFT City. Being part of the established Sambhaav Group provides a proven track record that acts as a barrier to entry for new developers in the premium GIFT City segment.

Macro Economic Sensitivity

Highly sensitive to urban population growth and housing demand; India requires 5 houses per 1,000 people but currently builds only 3, indicating a massive structural demand gap.

Consumer Behavior

Shifting lifestyle preferences toward technology-integrated living and sustainable 'green' buildings are driving demand for the company's new project formats.

Geopolitical Risks

Minimal direct impact as operations are localized in Gujarat, though global private equity sentiment (expected $5 billion in FY2025 for India RE) affects overall sector liquidity.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by RERA (Real Estate Regulatory Authority) and local Ahmedabad/Gandhinagar municipal building codes. Compliance with Ind AS 108 for segment reporting and Ind AS 34 for interim financials is maintained.

Environmental Compliance

The company has proactively prepared a Business Responsibility & Sustainability Report (BRSR) to align with ESG principles, although it is not yet mandatory for them.

Taxation Policy Impact

Current tax liabilities increased from INR 1.55 Cr in March 2025 to INR 6.04 Cr in September 2025, reflecting higher taxable profits.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the cyclicality of the real estate sector and the risk of slower-than-envisaged bookings in upcoming projects, which could increase unsold inventory carrying costs.

Geographic Concentration Risk

100% of current major project revenue is derived from the Ahmedabad/Gandhinagar region, creating high vulnerability to local economic shifts.

Third Party Dependencies

Dependency on joint venture partners to share costs and risks; any partner default could increase the company's financial burden.

Technology Obsolescence Risk

The company is mitigating technology risks by proactively investing in Prop-tech (VirtSpaces) to ensure its sales and rendering tools remain competitive.

Credit & Counterparty Risk

Trade receivables turnover ratio declined from 162.63 to 33.84, suggesting that while sales are growing, the collection of receivables is slowing down relative to the pace of sales.