PARSVNATH - Parsvnath Devl.

📊 NSE: PARSVNATH 🏢 Construction 📅 Last Updated: 12/14/2025 10:54

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment (Real Estate). Consolidated revenue from operations for H1 FY26 was INR 117.23 Cr, representing a 13.21% decline compared to INR 135.07 Cr in H1 FY25. For the full year FY25, revenue dropped 45.04% to INR 253.93 Cr from INR 462 Cr.

Geographic Revenue Split

Not disclosed in available documents, though operations are primarily centered in India with the corporate office in Delhi.

Profitability Margins

Profitability is severely impacted by high finance costs. Net loss for H1 FY26 (Consolidated) was INR 205.10 Cr. In FY25, the company reported a loss before exceptional items of INR 459.08 Cr, which was a 19.26% improvement over the previous year's loss.

EBITDA Margin

EBITDA remains negative as operating expenses and finance costs far exceed revenue. Finance costs for H1 FY26 were INR 236.52 Cr, which is approximately 201.7% of the total revenue from operations (INR 117.23 Cr).

Capital Expenditure

Consolidated impairment of Capital Work in Progress was noted in H1 FY26. Specific historical and planned CAPEX figures in INR Cr are not explicitly detailed beyond project-specific development costs.

Credit Rating & Borrowing

The company faces high borrowing costs, with H1 FY26 consolidated finance costs at INR 236.52 Cr. A significant exceptional gain of INR 120.65 Cr was recognized in FY25 due to interest and dues waivers from a lender settlement, indicating stressed credit conditions.

⚙️ Operational Drivers

Raw Materials

Key inputs include Land/Development Rights (1.38% of H1 FY26 revenue), Construction Materials (2.05% of H1 FY26 revenue), and Contract Labor/Other Charges (21.76% of H1 FY26 revenue).

Import Sources

Not disclosed in available documents; typically sourced locally within India for real estate projects.

Capacity Expansion

The company is focused on completing existing projects, including a BOT project with DMRC. Current capacity is measured by land bank and ongoing project square footage, though specific MT/units are not provided.

Raw Material Costs

Consolidated cost of land/development rights was INR 1.62 Cr in H1 FY26. Materials consumed were INR 2.40 Cr, and contract labor costs were INR 25.51 Cr. Total direct construction-related expenses decreased compared to previous periods as revenue declined.

Manufacturing Efficiency

Not applicable as a manufacturing metric; however, project efficiency is hampered by high interest-to-revenue ratios and liquidity constraints.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

The strategy focuses on debt restructuring and settlement with lenders to improve the balance sheet. The company is also working on resolving delays in its BOT project with DMRC to unlock value from existing infrastructure assets.

Products & Services

Residential apartments, commercial office spaces, retail malls, and Build-Operate-Transfer (BOT) infrastructure projects.

Brand Portfolio

Parsvnath

Market Expansion

Not disclosed in available documents; focus remains on existing North India projects.

Strategic Alliances

The company operates through numerous subsidiaries and LLPs, including Parsvnath Landmark Developers and Parsvnath Rail Land Project Private Limited.

🌍 External Factors

Industry Trends

The real estate industry is seeing a shift toward consolidation and debt reduction. Parsvnath is currently positioned in a recovery phase, attempting to settle liabilities to remain viable.

Competitive Landscape

Competes with other major Indian developers like DLF and Godrej Properties, though currently constrained by financial leverage.

Competitive Moat

The company's moat lies in its established brand and existing land bank/BOT contracts, but this is currently weakened by liquidity issues and high leverage.

Macro Economic Sensitivity

Highly sensitive to interest rate fluctuations due to the massive debt burden and finance costs representing over 200% of revenue.

Consumer Behavior

Demand for completed or near-completion projects is higher than new launches in the current market, influencing the company's focus on inventory liquidation.

Geopolitical Risks

Primarily domestic risks related to Indian regulatory changes and local real estate demand.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to RERA and local development authority norms. The BOT project is governed by a concession agreement with DMRC.

Taxation Policy Impact

The company recognized a deferred tax asset of INR 5.54 Cr and a prior period tax adjustment of INR 3.19 Cr in FY25.

Legal Contingencies

The company is involved in a dispute/delay regarding a BOT project with DMRC. Additionally, the auditors noted that financial results for certain subsidiaries were management-certified and not reviewed, though deemed non-material.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the ability to service debt and complete delayed projects. Finance costs exceeding revenue by 2x poses a significant going-concern risk.