Binny books ₹36.65 crore from first-half SPR settlement

Binny Limited recognised ₹36.65 crore under its Second Amended and Reinstated Joint Development Agreement in the half year ended September 30, 2026, accounting for nearly all of its ₹36.69 crore revenue from operations. The agreement with SPR Construction Pvt Ltd divides the project between a Phase I cash settlement and a Phase II area-sharing model.

How much SPR agreement revenue did Binny recognise?

Binny recognised ₹36.65 crore under the joint development agreement dated August 6, 2025, against total first-half revenue from operations of ₹36.69 crore. The agreement-related amount was ₹3.83 lakh below total operating revenue, according to the September 30, 2026 financial-results notes.

Binny operates in one segment, real estate business, and reported operating revenue of ₹36.69 crore for the half year ended September 30, 2026, compared with ₹23.84 crore a year earlier. Total income rose to ₹36.72 crore from ₹25.35 crore, even as other income fell to ₹3.39 lakh from ₹1.51 crore; the increase in total income therefore came from revenue from operations.

The September 2026 quarter contributed ₹14.74 crore of operating revenue after ₹21.95 crore in the June 2026 quarter. Profit for the September quarter was ₹8.43 crore, compared with ₹13.35 crore in the preceding quarter, while first-half earnings per share were ₹9.76 versus ₹6.13 in the year-earlier half year.

What are the Phase I and Phase II SPR settlement terms?

Binny said Phase I covers up to 53.18 lakh square feet of saleable area and will be settled through a lump-sum payment after adjustment for payments made under the original joint development agreement. A Board-appointed special committee headed by retired Justice Bhaskar obtained valuations from two independent valuers before the development area was divided into the two phases.

For Phase I, SPR Construction Pvt Ltd is to settle a further ₹300 crore in addition to ₹623.5195 crore identified as Binny’s share. Binny said the settlement values were calculated by discounting future cash flows to present value using the discounted cash flow, or DCF, method; the filing gives no timetable for the further ₹300 crore payment.

Phase II covers the balance saleable area within the project’s total contemplated 120 lakh square feet, including premium floor space index, or FSI. It will be developed under an area-sharing model, rather than the Phase I lump-sum mechanism, leaving Phase II’s value realisation dependent on development under that arrangement.

How did the settlement affect Binny’s earnings and cash flow?

Binny reported first-half profit before tax of ₹29.61 crore and profit for the period of ₹21.78 crore, compared with ₹19.84 crore and ₹13.69 crore, respectively, in the prior-year half. Total expenses rose to ₹7.11 crore from ₹5.51 crore, while current tax increased to ₹7.48 crore from ₹4.42 crore.

Net cash generated from operating activities was ₹6.93 lakh for the half year ended September 30, 2026, after ₹13.99 crore of income-tax adjustments. Cash generated from operations before those tax adjustments was ₹14.05 crore, while cash and cash equivalents increased to ₹57.27 lakh at September 30 from ₹56.23 lakh at March 31, 2026.

The cash-flow statement uses the indirect method, starting with profit before tax and adjusting for non-cash items and changes in assets and liabilities. It reported a ₹28.3175 crore increase in other financial assets and other current assets, a ₹4.4389 crore inventory movement, and a ₹8.1434 crore increase in other financial liabilities, other liabilities and provisions; the filing does not allocate these movements specifically to the SPR agreement.

What did the auditor qualify in Binny’s results?

The independent auditor issued a qualified conclusion on Binny’s unaudited standalone results for the quarter and half year ended September 30, 2026. One qualification concerned an advance of ₹29.1805 crore to RRB Energy Limited, for which the auditor said it had not received sufficient appropriate evidence of recoverability or a balance confirmation, and no impairment had been recognised.

Binny said it had initiated action under the Insolvency and Bankruptcy Code to recover the ₹29.1805 crore principal plus simple interest at 24% a year, aggregating to ₹60.6105 crore. The National Company Law Tribunal, New Delhi admitted Binny’s application after a February 19, 2026 hearing and fixed November 27, 2026 as the next hearing date.

The auditor also referred to a ₹19.12 crore receivable relating to construction activities and said the cost of the related land included in inventory was not ascertainable. It said it could not comment on the completeness and appropriateness of revenue recognition, compliance with Indian Accounting Standard 115, or the correctness and recoverability of the receivable balance.

What other property and settlement matters did Binny disclose?

Binny said 800 of 850 acres of windmill land obtained from Mohan Breweries and Distilleries Limited for ₹27 crore had been sold for ₹31 crore, with the proceeds received in its bank accounts. The balance 50 acres remained under sale, as part of the status update on the settlement scheme approved by public shareholders on October 9, 2021.

For 112.72 acres at Chengalpattu, Binny said sale deeds for the entire land had been executed for ₹222.0567 crore following directions related to a Securities Appellate Tribunal matter and a July 31, 2024 Securities and Exchange Board of India order. Binny said it filed an affidavit before the tribunal stating that the settlement scheme stood fully implemented, while the hearing remains in progress.

Binny also disclosed a joint development agreement with Osian Construction Pvt Ltd for 12.43 acres at Valasaravakkam. Management estimated total revenue from that separate project at ₹1,486 crore and Binny’s share at about ₹693 crore; these are estimates, not revenue recognised in the September 2026 half-year results.

Conclusion

Binny’s first-half operating revenue was substantially derived from ₹36.65 crore recognised under the amended SPR agreement, lifting revenue from operations to ₹36.69 crore and profit for the period to ₹21.78 crore. The arrangement separates a Phase I settlement for up to 53.18 lakh square feet from a Phase II area-sharing model across the balance of the contemplated 120 lakh square feet.

The next disclosed events to watch are the timing of the further ₹300 crore Phase I settlement, progress on the Phase II area-sharing development, and the November 27, 2026 National Company Law Tribunal hearing on the ₹60.6105 crore RRB Energy claim. Binny also said it will execute the Sanklecha Infra Projects Private Limited sale deed and recognise the related ₹19.12 crore revenue only after receiving the outstanding consideration.