Ganesh Housing Q2 PAT rises 59% despite 57% revenue fall

Ganesh Housing Limited reported profit after tax of Rs 66.9 crore in Q2 FY27, up 59% from Q1 FY27 despite revenue falling 57% to Rs 121.3 crore. Earnings before interest, tax, depreciation and amortisation margin rose to 80.7% from 39.3%, although revenue, EBITDA and profit before tax were lower sequentially.

How did Ganesh Housing's Q2 FY27 earnings change?

Ganesh Housing's Q2 FY27 profit after tax, or PAT, was Rs 66.9 crore, compared with Rs 42 crore in Q1 FY27 and Rs 108.1 crore in Q2 FY26. That was 59% sequential growth, according to the financial-performance table, but a 38% decline from the prior-year quarter. Earnings per share followed the same pattern, rising to Rs 8.02 from Rs 5.03 in Q1 FY27 but falling from Rs 12.96 a year earlier.

Revenue was Rs 121.3 crore in Q2 FY27, down from Rs 280.2 crore in Q1 FY27 and Rs 174.3 crore in Q2 FY26. The respective declines were 57% quarter on quarter and 30% year on year. EBITDA declined less sharply than revenue, falling 11% sequentially to Rs 97.9 crore and 34% year on year from Rs 148.1 crore.

Why did Ganesh Housing's margin increase as revenue declined?

Ganesh Housing's EBITDA margin increased by 41.4 percentage points sequentially to 80.7% in Q2 FY27 from 39.3% in Q1 FY27. Its PAT margin similarly increased by 40.1 percentage points to 55.1% from 15.0%. The reported figures show that EBITDA fell by less than revenue during the quarter, while PAT moved higher.

The presentation does not disclose a cost, tax, finance-cost or exceptional-item reconciliation for the divergence between Q2 FY27 PAT and other sequential measures. Profit before tax was Rs 89.4 crore, 15% below Rs 104.9 crore in Q1 FY27, while PAT increased from Rs 42 crore. Against Q2 FY26, EBITDA margin was 4.3 percentage points lower than 85.0%, while PAT margin was 6.9 percentage points below 62.0%.

What projects could affect Ganesh Housing's near-term execution?

Ganesh Housing said Malabar Retreat was 87% complete in Q2 FY27, with 50% booked, or 76 units. The company reported collections of Rs 132 crore and expected balance receivables of Rs 305 crore from booked and unbooked inventory. These project measures provide an operating backdrop to quarterly revenue of Rs 121.3 crore.

Million Minds IT SEZ Phase 1 has about 70% of its leasable area tied up, according to Ganesh Housing, and covers about 1.4 million square feet of total development with 6.2 lakh square feet of carpet area. The company named Airtel, Conga Software, Flagler Health and iBase-T as parties with new letters of intent. It said fit-outs and completion were approaching, with lease rentals expected to begin by Q4 FY27.

What does Ganesh Housing's development pipeline show?

Ganesh Housing reported 22 completed projects, two ongoing projects and four planned projects in its Q2 FY27 presentation. The ongoing portfolio, comprising Million Minds Phase 1 and Malabar Retreat, has 2.1 million square feet of area and expected sales value of Rs 1,500 crore. Expected free cash flow, or FCF, is Rs 600 crore, compared with approximately Rs 840 crore of actual FCF from completed projects.

The planned portfolio totals 28.8 million square feet, with expected sales value of about Rs 21,000 crore and expected FCF of about Rs 12,500 crore, including the capitalised value of SEZ commercial projects. Ganesh Housing also reported approximately 513 acres of fully paid land reserves, including about 405 acres at Godhavi Township and about 65 acres at Million Minds SEZ. It acquired 10 acres during Q2 FY27 and said some parcels remained under negotiation or acquisition.

When are Ganesh Housing's next project milestones?

Ganesh Housing said the Million Minds IT SEZ Phase 2 plan had been finalised and submitted for approval as of Q2 FY27. The commercial project is planned at about 1.5 million square feet of total development and 6.6 lakh square feet of carpet area. Management scheduled the Bhumi Pujan for Q3 FY27, making approval progress and the stated ceremony the next disclosed milestones.

The portfolio schedule places ongoing-project completion between July 2024 and June 2027, while planned projects are shown from September 2026 to October 2040. For the nearer term, management expects Million Minds Phase 1 lease rentals to start by Q4 FY27. The presentation describes Ganesh Housing's capital gearing ratio as low, but does not provide a numerical borrowing amount or gearing ratio for Q2 FY27.

Conclusion

Ganesh Housing's Q2 FY27 results show a mixed quarterly outcome: revenue fell Rs 158.9 crore from Q1 FY27, while PAT increased Rs 24.9 crore and EBITDA margin rose by 41.4 percentage points. However, Q2 FY27 was below Q2 FY26 on revenue, EBITDA, profit before tax and PAT, with PAT lower by Rs 41.2 crore year on year. The presentation reports the outcome but does not explain the accounting, tax or cost mechanisms behind the sequential PAT increase.

The next disclosed markers are the expected start of Million Minds Phase 1 rentals by Q4 FY27, the Q3 FY27 Bhumi Pujan planned for Million Minds Phase 2 and further construction at Malabar Retreat, which was 87% complete. Readers can also watch for approval progress on Phase 2 and whether the Rs 305 crore of stated Malabar Retreat balance receivables converts as the project advances.