PROZONER - Prozone Realty

📊 NSE: PROZONER 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 11:19

💰 Financial Performance

Revenue Growth by Segment

Lease Rental and Related Income grew by 7.49% to INR 120.38 Cr (FY25), while Real Estate Project revenue declined by 19.56% to INR 58.34 Cr (FY25).

Geographic Revenue Split

Not disclosed in available documents; operations are focused on India's fast-growing urban centers.

Profitability Margins

Net Profit Ratio declined from 1.55% in FY24 to -30.42% in FY25, primarily due to a one-time tax remeasurement expense of INR 52.11 Cr.

EBITDA Margin

EBITDA margin stood at 30.13% (INR 57.62 Cr) in FY25, a decrease from 35.82% (INR 72.41 Cr) in FY24 due to lower contributions from real estate projects.

Capital Expenditure

In H1 FY26, the company invested INR 3.27 Cr in property, plant, and equipment and INR 1.58 Cr in investment property under construction.

Credit Rating & Borrowing

The Debt-Equity ratio is 0.9x as of FY25. Total consolidated borrowings are INR 421.89 Cr, comprising INR 379.72 Cr in non-current and INR 42.17 Cr in current borrowings.

⚙️ Operational Drivers

Raw Materials

Land (fully paid-up land bank of 15.33 million sq. ft.) and construction materials (steel, cement, and aggregates for development).

Import Sources

Not disclosed in available documents; typically sourced from domestic Indian markets for real estate development.

Capacity Expansion

Current developed area is 2.10 million sq. ft., with 13.23 million sq. ft. at various stages of development across the land bank.

Raw Material Costs

Not disclosed as a specific % of revenue; however, total consolidated expenditure was INR 194.27 Cr in FY25.

Manufacturing Efficiency

Not applicable; real estate efficiency is measured by an Inventory Turnover of 0.45x and Trade Receivables Turnover of 13.99x.

📈 Strategic Growth

Growth Strategy

The company follows an 'Anchor Asset' model where 1/3 of land is developed as retail centers for annuity income and 2/3 for residential/commercial sales. Growth is driven by developing the 13.23 million sq. ft. land bank and incorporating new subsidiaries for expansion.

Products & Services

Lease rentals from retail malls, residential apartment sales, and commercial office space development.

Brand Portfolio

Prozone Realty, Prozone Mall.

New Products/Services

The Board approved the incorporation of a new wholly-owned subsidiary on November 12, 2025, to explore new business avenues.

Market Expansion

Actively exploring geographic diversification and new revenue streams to reduce dependency on single economic drivers.

Strategic Alliances

Strategic partnerships with Intu Properties (UK), Old Mutual (South Africa), and Lewis Trust Group (UK).

🌍 External Factors

Industry Trends

Shift toward mixed-use developments and 'Build & Long-Term Lease' models to ensure stable annuity income amidst volatile real estate sales cycles.

Competitive Landscape

Operates in a highly regulated and competitive retail and residential sector in urban India.

Competitive Moat

Moat is built on a 100% paid-up land bank of 15.33 million sq. ft., low leverage (0.9x D/E), and strong global pedigree with UK and South African investors.