Emami Realty Limited narrows pre-tax loss to Rs 50.07 crore

Emami Realty narrowed its standalone loss before tax to Rs 50.07 crore in the six months ended September 30, 2026, from Rs 97.25 crore a year earlier, but operating revenue fell to Rs 11.34 crore and the cash-flow statement recorded Rs 41.03 crore of finance costs.

Did Emami Realty's first-half pre-tax loss widen?

No. Emami Realty's standalone cash-flow statement records a loss before tax of Rs 50.07 crore for the six months ended September 30, 2026, compared with a Rs 97.25 crore loss for the six months ended September 30, 2025. The disclosed loss therefore narrowed by Rs 47.18 crore year on year.

The consolidated cash-flow statement shows a loss before tax of Rs 30.04 crore for the September 2026 half year, against Rs 97.27 crore in the comparable 2025 period. The standalone result relates to Emami Realty, while the consolidated result includes its subsidiaries and associates; the board approved both sets of unaudited results on November 12, 2026.

Why did Emami Realty's first-half revenue fall?

Emami Realty's revenue from operations declined by Rs 3.68 crore to Rs 11.34 crore in the six months ended September 30, 2026, from Rs 15.02 crore a year earlier. Other income declined by Rs 7.79 crore to Rs 8.73 crore, taking total revenue down by Rs 11.47 crore to Rs 20.07 crore.

Operating revenue improved sequentially within the half year, rising to Rs 5.86 crore in the quarter ended September 30, 2026, from Rs 5.47 crore in the quarter ended June 30, 2026. However, September-quarter operating revenue remained below the Rs 9.17 crore reported for the quarter ended September 30, 2025.

Emami Realty reports a single business segment, real estate development, for the September 2026 results. The filing does not provide revenue by project, geography or property type, and does not identify a particular project as the cause of the Rs 3.68 crore reduction in first-half operating revenue.

Cost of inventories was Rs 7.08 crore in the September 2026 half year, compared with Rs 22.28 crore in the corresponding prior-year period. That lower cost recognition occurred alongside lower operating revenue, indicating that both reported sales and inventory-related cost recognition changed year on year.

How did finance costs and operating cash flow change?

Emami Realty's standalone cash-flow statement lists finance costs of Rs 41.03 crore for the six months ended September 30, 2026, compared with Rs 47.92 crore a year earlier. The charge declined by Rs 6.89 crore, but remained higher than the Rs 11.34 crore of operating revenue reported for the period.

Depreciation and amortisation expense was Rs 95.97 lakh in the September 2026 half year, up from Rs 67.46 lakh in the prior-year half. The cash-flow statement also records interest income of Rs 6.50 crore for the 2026 half year.

Net cash used in operating activities was Rs 86.58 crore for the September 2026 half year, compared with Rs 61.53 crore in the previous year's half. Inventory movement absorbed Rs 114.24 crore, versus Rs 101.78 crore a year earlier, making it the largest stated working-capital movement in the standalone cash-flow statement.

Net investing cash inflow rose to Rs 19.39 crore in the 2026 half year from Rs 2.69 crore a year earlier. Sales of mutual-fund units generated Rs 68.75 crore, purchases used Rs 27 crore and loans given totalled Rs 29.25 crore during the period.

What changed in Emami Realty's balance sheet and equity?

Emami Realty's standalone inventories increased to Rs 1,392.13 crore at September 30, 2026, from Rs 1,277.82 crore at March 31, 2026. Standalone loans rose to Rs 117.31 crore from Rs 88.06 crore, while cash and cash equivalents increased to Rs 10.75 crore from Rs 9.80 crore.

Non-current borrowings rose to Rs 800.84 crore at September 30, 2026, from Rs 753.18 crore at March 31, 2026. Current borrowings declined to Rs 1,218.04 crore from Rs 1,235.14 crore, leaving the two reported borrowing categories at a combined Rs 2,018.88 crore at the half-year date.

Emami Realty allotted 82 lakh equity shares on April 8, 2026, following conversion of convertible warrants. Each share had a face value of Rs 2 and was issued at a premium of Rs 126.50; paid-up equity share capital subsequently stood at Rs 10.41 crore, comprising 5,20,33,889 shares.

Net cash from financing activities was Rs 68.13 crore for the September 2026 half year, compared with Rs 59.94 crore a year earlier. The cash-flow statement records Rs 105.37 crore of proceeds from equity share capital and Rs 41.03 crore of interest paid in the period.

What remains unresolved in Emami Realty's reported results?

Emami Realty is a 10% profit partner in Lohitka Properties LLP, Mumbai, which is developing a real-estate project under construction. The auditor said the LLP's financial results were unavailable for incorporation in the consolidated results, so no effect of its profitability, if any, was included for the six months ended September 30, 2026.

The auditor also noted an unreviewed group share of net loss after tax of Rs 50.41 lakh from two associates for the September 2026 half year. It further said a Rs 3.25 crore group share of net profit after tax and total comprehensive income was not considered because the book value of investments in those two associates was nil.

Agrawal Tondon & Co conducted a limited review of the September 2026 results rather than an audit. Its November 12, 2026 conclusion stated that nothing had come to its attention suggesting the unaudited consolidated results failed to provide required disclosures, and it did not modify its conclusion for the associate-related matters.

Conclusion

Emami Realty's September 2026 half-year filing shows a narrower standalone pre-tax loss than a year earlier, but also lower operating revenue and a larger operating cash outflow. Finance costs of Rs 41.03 crore, inventories of Rs 1,392.13 crore and combined reported borrowings of Rs 2,018.88 crore remain key measures in the disclosed financial position.

The next reported quarter will show whether operating revenue, inventory movement and finance costs change after September 30, 2026. Investors can also watch for the eventual availability of Lohitka Properties LLP's results and any change in the accounting treatment of the two associates with nil investment book values.