Ashiana Housing Q2 profit rises 85% as cash flow falls

Ashiana Housing Limited reported consolidated net profit of Rs 51.03 crore for the quarter ended 30 September 2026, up 85% from Rs 27.54 crore a year earlier, while net cash from operating activities for the six months fell 66% to Rs 35.04 crore from Rs 101.68 crore.

What did Ashiana Housing report for the September 2026 quarter?

Ashiana Housing reported a sharp increase in quarterly income and profit for the quarter ended 30 September 2026. Net sales and income from operations rose to Rs 575.48 crore from Rs 165.77 crore in the quarter ended 30 September 2025, while total income increased to Rs 588.32 crore from Rs 176.18 crore. Other income was Rs 12.63 crore, compared with Rs 10.80 crore a year earlier.

Profit before tax increased to Rs 68.96 crore from Rs 36.15 crore, and net profit rose to Rs 51.03 crore from Rs 27.54 crore. Tax expense was Rs 17.83 crore, versus Rs 8.62 crore in the comparable quarter. Basic and diluted earnings per share, which were not annualised, were Rs 5.09 each, compared with Rs 2.82 each a year earlier.

How did Ashiana Housing perform in the first half?

Ashiana Housing’s consolidated total income for the half-year ended 30 September 2026 rose to Rs 708.08 crore from Rs 478.90 crore in the corresponding half-year of 2025. Net sales and income from operations increased to Rs 662.93 crore from Rs 458.58 crore, while other income rose to Rs 24.95 crore from Rs 20.56 crore.

Half-year profit before tax increased to Rs 85.27 crore from Rs 54.20 crore, and net profit rose to Rs 54.14 crore from Rs 40.26 crore. Tax expense increased to Rs 21.13 crore from Rs 13.94 crore. Total comprehensive income was Rs 54.78 crore, compared with Rs 41.57 crore in the prior-year half.

The September quarter supplied most of the reported first-half profit. Its Rs 51.03 crore net profit was followed by Rs 13.11 crore in the quarter ended 30 June 2026, while the half-year total was Rs 54.14 crore. The difference reflects other comprehensive income and the period’s reported quarterly results rather than an even earnings pattern across the six months.

Why did Ashiana Housing’s operating cash flow fall?

Ashiana Housing’s net cash from operating activities fell to Rs 35.04 crore in the half-year ended 30 September 2026 from Rs 101.68 crore in the prior-year half. Cash generated from operations declined to Rs 82.11 crore from Rs 129.81 crore, while direct taxes paid or adjusted increased to Rs 47.08 crore from Rs 28.15 crore.

Working-capital items also changed materially between the two periods. Inventory and other inventory-related balances used Rs 211.33 crore of cash, lower than the Rs 283.06 crore outflow a year earlier. Customer advances added Rs 209.08 crore, but this was below the Rs 347.03 crore addition in the prior-year half, reducing the cash offset to inventory investment.

Non-financial assets used Rs 40.70 crore of cash in the 2026 half-year, compared with Rs 16.61 crore in the prior-year period. Other financial assets generated Rs 15.86 crore, versus Rs 9.67 crore a year earlier. These movements meant that the rise in reported half-year net profit to Rs 54.14 crore was not matched by operating cash flow, which was Rs 35.04 crore.

What changed in Ashiana Housing’s costs and margins?

Ashiana Housing’s total expenses in the half-year ended 30 September 2026 rose to Rs 622.82 crore from Rs 424.70 crore in the previous corresponding period. Project expenses increased to Rs 424.98 crore from Rs 382.02 crore, employee benefit expense rose to Rs 50.24 crore from Rs 43.64 crore, and other expenses increased to Rs 57.62 crore from Rs 44.35 crore.

Purchases of land and development rights were Rs 262.05 crore, compared with Rs 252.18 crore in the previous half-year. Changes in inventories were reported at negative Rs 210.10 crore, compared with negative Rs 28.57 crore a year earlier. The reported operating margin was 15.06% for the half-year, down from 17.68% in the comparable period.

Finance costs were Rs 0.56 crore in the half-year ended 30 September 2026, compared with Rs 0.65 crore a year earlier, while depreciation and amortisation were Rs 6.59 crore versus Rs 6.68 crore. The company reported only one business segment, development of real-estate property, and one geographical segment, India.

How does Ashiana Housing recognise real-estate revenue?

Ashiana Housing recognises real-estate revenue under Indian Accounting Standard 115 when it satisfies its performance obligation by transferring the promised asset and the customer obtains control. The filing states that this happens on possession or on issuance of a letter offering possession, whichever occurs earlier, subject to certainty of realisation.

This accounting policy links reported revenue to possession-related milestones. Net sales and income from operations were Rs 575.48 crore in the September 2026 quarter, compared with Rs 165.77 crore in the comparable quarter, while half-year sales were Rs 662.93 crore. The filing does not provide a project-level split for the quarterly revenue increase.

The consolidated results include five subsidiaries and five associates or joint ventures, including Ashiana Maintenance Services LLP, Ashiana Amar Developers and Kairav Developers Limited. The independent auditor conducted a limited review of the consolidated results for the quarter and half-year ended 30 September 2026 and stated that nothing had come to its attention indicating a material misstatement.

What else did Ashiana Housing disclose with the results?

Ashiana Housing’s audit committee reviewed the unaudited results on 4 November 2026, and the board approved them on the same date. The company reported paid-up equity share capital of Rs 20.10 crore as of 30 September 2026, unchanged from the comparative period. It also reported a debt-equity ratio of 0.33 for the half-year, compared with 0.42 in the comparable half-year.

Shareholders approved a dividend of Rs 1.50 per equity share at the annual general meeting on 29 September 2026, aggregating Rs 15.08 crore. Ashiana Housing said the dividend payment was completed in October 2026. During the September quarter, the company received 96 investor complaints, including 19 pending at the start of the quarter; it disposed of 89, and the remaining seven were resolved by the filing date.

Conclusion

Ashiana Housing’s September-quarter figures show substantially higher reported revenue and net profit, with quarterly net profit rising 85% to Rs 51.03 crore. The first-half comparison gives a different cash perspective: operating cash flow declined to Rs 35.04 crore as cash generated from operations fell, direct tax payments increased and customer-advance inflows were lower than a year earlier.

The next reported periods will show whether possession or offer-of-possession milestones support further revenue recognition under Ashiana Housing’s stated policy. Cash conversion will also remain a disclosed measure to watch after first-half customer advances of Rs 209.08 crore and inventory-related cash use of Rs 211.33 crore, while the Rs 15.08 crore dividend payment was completed in October 2026.