💰 Financial Performance

Revenue Growth by Segment

Total Operating Income (TOI) remained stable at INR 17.68 Cr in FY25, a marginal 0.23% increase from INR 17.64 Cr in FY24. Segmental revenue for FY25 was driven by Interest & Dividend income (47% of TOI), Rental income (36% of TOI), and Hydro Power/Other income (17% of TOI). This compares to FY24 where Interest & Dividend was 48%, Rental was 37%, and Hydro was 15%.

Geographic Revenue Split

Revenue is primarily generated from India, with key assets including the Global Business Park in Gurgaon (100% occupancy), Birla Textiles in New Delhi (4% occupancy as of April 2024), and a 3 MW Mini Hydro Power project in Neora, Darjeeling, West Bengal.

Profitability Margins

Net profitability was severely impacted in FY25, reporting a loss of INR 8.56 Cr compared to a PAT of INR 3.57 Cr in FY24 (a 340% decrease). This was primarily due to a one-time deferred tax expense of INR 12.71 Cr resulting from Budget 2024 changes removing indexation benefits on long-term capital gains. FY23 PAT margin was 19.11% compared to 6.64% in FY22.

EBITDA Margin

PBILDT margin improved to 38.67% in FY25 from 36.76% in FY24, driven by lower operating overheads. In FY23, the margin was 39.31% compared to 16.83% in FY22, reflecting improved cost efficiencies in the rental business where maintenance costs are largely borne by tenants.

Capital Expenditure

The company is involved in the Jade Grove Phase II project and the Kamlanagar, Delhi real estate project. Management has stated they will not avail debt for the development, construction, or marketing of these projects, intending to fund them through internal accruals. Purchase of Property, Plant and Equipment amounted to INR 4.62 Cr in FY25 compared to INR 4.04 Cr in FY24.

Credit Rating & Borrowing

CARE reaffirmed a 'CARE BBB+; Stable' rating for INR 21.26 Cr of long-term bank facilities in July 2025. Borrowing costs are supported by an escrow mechanism where monthly lease rentals of INR 0.31 Cr cover debt obligations of INR 0.28 Cr (1.1x cushion).

⚙️ Operational Drivers

Raw Materials

As a holding and real estate company, primary 'inputs' include Land (for development) and Water (for the 3 MW hydro project). Maintenance costs for leased properties are 100% borne by tenants in the rental business.

Import Sources

Not disclosed in available documents as the company operates in services, power generation, and real estate development within India.

Key Suppliers

Not disclosed in available documents; however, the company has a Joint Development Agreement (JDA) with Oro Bloom Developments Private Limited for real estate projects.

Capacity Expansion

Current power capacity is 3 MW from the Neora Mini Hydro Power project. Real estate capacity is expanding through the Jade Grove Phase II project and the Kamlanagar project in Delhi. Global Business Park occupancy reached 100% in May 2025 from 75% in April 2024.

Raw Material Costs

Operating overheads are minimal in the rental segment as tenants bear maintenance costs. Hydro power costs are primarily related to operation and maintenance of the 3 MW plant.

Manufacturing Efficiency

Hydro power efficiency is linked to the 3 MW capacity at Neora. Real estate efficiency is measured by occupancy: Gurgaon is at 100%, while Delhi (Birla Textiles) saw a significant drop to 4% occupancy in 2024 from 71% previously.

Logistics & Distribution

Not applicable; revenue is derived from fixed assets (rentals) and grid-connected power sales.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is targeted through the development of the Jade Grove Phase II project via a JDA with Oro Bloom Developments. The company aims to leverage its healthy investment profile (INR 230.38 Cr in mutual funds) to fund real estate projects without new debt, while maintaining 100% occupancy in core rental assets like Global Business Park.

Products & Services

Leased commercial and residential spaces, 3 MW hydroelectric power, and financial returns from strategic equity and mutual fund investments.

Brand Portfolio

Texmaco, Global Business Park, Jade Grove, Adventz Group.

New Products/Services

Development of Jade Grove Phase II and the Kamlanagar real estate project are the primary new revenue drivers.

Market Expansion

Focus remains on the Delhi-NCR region for real estate and West Bengal for hydro power.

Strategic Alliances

Joint Development Agreement (JDA) with Oro Bloom Developments Private Limited for the Jade Grove Phase II project.

🌍 External Factors

Industry Trends

The real estate sector is evolving with stricter regulatory oversight. The company is positioning itself by using JDAs to develop land banks without taking on project-level debt, maintaining a conservative 0.02x gearing.

Competitive Landscape

Competes with other commercial real estate developers in the NCR region and independent power producers in the renewable energy space.

Competitive Moat

The company's moat is its debt-free land bank and high-quality strategic investment portfolio in group companies, providing a steady stream of dividend and interest income (47% of TOI) that cushions against real estate volatility.

Macro Economic Sensitivity

Real estate projects are highly sensitive to local, state, and national regulations. Failure to comply can lead to project delays or closure, risking invested capital.

Consumer Behavior

Shift in corporate demand for Grade-A office space is reflected in the 100% occupancy of the Gurgaon property versus the decline in older Delhi assets.

Geopolitical Risks

Minimal direct impact as assets are located within India, though macro-economic stability affects the real estate and financial markets where the company holds INR 489.70 Cr in quoted equities.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by RERA for real estate and state electricity board norms for the Neora hydro project. The company must comply with land acquisition and construction laws which vary by state.

Environmental Compliance

Operates a 3 MW 'Mini' Hydro project, which typically falls under green energy categories with lower ESG risk profiles.

Taxation Policy Impact

The company faces a 25-30% effective tax rate, but FY25 was impacted by a specific INR 12.71 Cr deferred tax charge due to the removal of LTCG indexation benefits in the 2024 Union Budget.

Legal Contingencies

Two step-down subsidiaries have negative net worth and have not commenced commercial operations, creating 'material uncertainty' regarding their status as a going concern. Deferred tax liabilities stood at INR 26.93 Cr as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the successful execution of the Jade Grove Phase II project and the re-leasing of the Delhi property where occupancy fell to 4%. Regulatory delays in real estate could impact capital recovery.

Geographic Concentration Risk

High concentration in the NCR region (Gurgaon/Delhi) for rental income and West Bengal for hydro power.

Third Party Dependencies

Dependent on Oro Bloom Developments for the execution of the JDA real estate project.

Technology Obsolescence Risk

The company has implemented audit trail (edit log) features in its accounting software to comply with statutory requirements, mitigating digital governance risks.

Credit & Counterparty Risk

Low risk in rentals due to 100% collection efficiency and escrow mechanisms. Investment risk is mitigated by holding quoted equity in major group companies.