💰 Financial Performance

Revenue Growth by Segment

Total revenue declined by 50.38% YoY from INR 528 Cr in FY24 to INR 262 Cr in FY25. The Real Estate (RE) segment saw a significant decline in scale due to lower sales and delays in receiving Occupation Certificates (OC), which continued into H1FY26.

Geographic Revenue Split

Not disclosed in available documents; however, the company is headquartered in Mumbai and operates the Peninsula Business Park in Lower Parel.

Profitability Margins

The company shifted from a Net Profit of INR 94 Cr in FY24 to a Net Loss of INR 25 Cr in FY25. Net losses continued in H1FY26 at INR 23.98 Cr due to higher operating expenses and legal costs.

EBITDA Margin

EBIDTA fell 75% from INR 140 Cr in FY24 to INR 35 Cr in FY25. The PBILDT margin declined from 22% in FY24 to 8.48% in FY25 due to delayed revenue recognition from real estate inventory.

Capital Expenditure

The company raised INR 150 Cr through optionally convertible debentures (OCDs) in Q1 FY25 to fund upcoming real estate projects and joint ventures.

Credit Rating & Borrowing

Long-term bank facilities of INR 300 Cr were downgraded to CARE BB+; Stable from CARE BBB-; Stable in November 2025. Interest costs were revised downward by ~110 bps in April 2025, but interest coverage fell to 0.56x in H1FY26.

⚙️ Operational Drivers

Raw Materials

Construction materials (steel, cement) and labor; specific percentage of total cost for each is not disclosed.

Capacity Expansion

The company is expanding through a Real Estate Platform JV with strategic partners; market transaction volumes in the office sector reached 10.4 million square feet, a 40% increase YoY.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but identified as a key factor that could impact operations and margins.

Manufacturing Efficiency

Revenue is recognized via the Completed Contract Method (CCM); efficiency is tied to the timely receipt of Occupation Certificates (OC).

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is targeted through a Real Estate Platform set up in joint venture with strategic partners, utilizing private equity, debt involvement, and institutional funding to add new projects to the portfolio over the next 2-3 years.

Products & Services

Residential real estate projects, commercial real estate projects, and leased office spaces.

Brand Portfolio

Peninsula Land, Peninsula Business Park.

New Products/Services

New real estate projects via JV platforms; expected revenue contribution not specifically quantified.

Market Expansion

Focusing on the Indian real estate sector with an emphasis on office space expansion and hybrid working trends.

Strategic Alliances

Joint Venture (JV) agreement with two partners for RE projects supported by INR 150 Cr in OCDs.

🌍 External Factors

Industry Trends

Positive demand momentum in office space with a 40% increase in transaction volumes; shift toward next-gen logistics and hybrid working models.

Competitive Landscape

Large institutional players are increasing supply via JVs, REITs, and brownfield investments.

Competitive Moat

Moat includes a 50-year track record of leasing to government tenants and the strategic location of Peninsula Business Park; sustainability is challenged by high debt gearing of 2.51x.

Macro Economic Sensitivity

Highly sensitive to economic development in India, government regulations, and tax regimes.

Consumer Behavior

Occupier appetite for physical office space remains strong despite hybrid working trends.

⚖️ Regulatory & Governance

Industry Regulations

Operations are heavily dependent on RERA-related approvals and the receipt of Occupation Certificates (OC) from local authorities.

Taxation Policy Impact

Subject to changes in government tax regimes as noted in cautionary statements.

Legal Contingencies

Ongoing legal cases have resulted in significant legal expenses and impairments, contributing to the H1FY26 net loss of INR 23.98 Cr.

⚠️ Risk Analysis

Key Uncertainties

Redemption of INR 150 Cr OCDs due in December 2025 is highly likely as the share price is below the exercise price, which may exhaust the INR 30 Cr liquidity buffer.

Geographic Concentration Risk

Primary assets and operations are concentrated in the Mumbai real estate market.

Third Party Dependencies

High dependency on two government tenants for 100% of lease rental income.

Technology Obsolescence Risk

Digital retail brand partnerships are accelerating, requiring traditional real estate to adapt to tech-driven leasing drivers.

Credit & Counterparty Risk

Counterparty risk is mitigated by the 'government company' status of major tenants, though they have shown an increase in the intensity of rental payment delays.