Ganesh Housing Q4 FY26: Transition-Year Numbers, but a Clear Pivot to Leasing-Led Growth

Ganesh Housing Limited closed Q4 FY26 with sequential improvement in reported profitability, but FY26 as a whole reflected a sharp step-down from FY25. The company reported Q4 FY26 revenue of INR 121.8 crore, EBITDA of INR 98.3 crore and PAT of INR 61.4 crore. On a quarter-on-quarter basis, revenue rose 33%, EBITDA rose 31%, and PAT rose 14%. However, for FY26, revenue declined to INR 538.5 crore from INR 993.5 crore in FY25, while PAT fell to INR 316.3 crore from INR 598.1 crore.

Management described FY26 as a transition year. In the earnings call, the company pointed to macro uncertainty and higher input costs, while also stressing that FY25 had been an unusually strong base year. The more important message was strategic: Ganesh Housing is preparing for the next leg of growth driven by a larger commercial pipeline and recurring lease income from its Million Minds Tech City project.

Q4 FY26 and FY26 performance: high margins, but lower scale

The headline feature of the results is that profitability margins remained unusually high even in a weaker year. Q4 FY26 EBITDA margin was 80.7% and PAT margin was 50.4%. For FY26, EBITDA margin stood at 83.5% and PAT margin at 58.7%. The company also declared that the Board recommended a dividend of 15%, translating to INR 1.5 per share.

That said, the year-on-year decline is large. FY26 revenue fell 46% YoY, and FY26 PAT fell 47% YoY. The earnings call also reinforced that revenue recognition for certain residential projects is tied to completion, which can make the income statement lumpy.

Million Minds Phase 1: moving from construction to annuity income

The core operational catalyst discussed in both the presentation and the call was Million Minds Tech City (IT SEZ) Phase 1. In the investor presentation, the company described Phase 1 as a commercial project with about 1.4 million sq ft total development and about 8.5 lakh sq ft gross leasable area. It also stated that fit-outs are progressing and that rentals are expected to commence by Q3 FY27.

On the call, management gave more detail on leasing and the annuity potential. It stated that roughly 60% to 65% of the leasable area is already leased or in the final stages, largely with tenant discussions spanning global capability centres, hybrid workspace providers, and technology firms. Management also said that post-inauguration, enquiries have increased significantly. It further guided that annual lease revenues from Phase 1, earlier discussed at around INR 72 crore, could exceed that and reach about INR 75 to 77 crore on a stabilized basis. It clarified FY27 may only see a partial-year contribution, while FY28 onwards would reflect a full-year run-rate.

This is strategically significant for Ganesh Housing because management explicitly framed Million Minds as the start of an annuity-led revenue stream that can complement development income and land monetisation. Management also mentioned that the building use certificate is a key gating item before lease agreements are fully executed, even though construction completion permissions were said to be in place.

Malabar Retreat: nearing completion, but revenue awaits handover

Another near-term swing factor is Malabar Retreat, a premium residential project. The presentation stated it is 79% complete. In the call, management added that the overall project value is about INR 450 crore, while bookings and sales commitments are about INR 175 crore and growing.

The accounting point is important. Management stated that revenue from Malabar Retreat has not been recognised yet and can be recognised only after completion. It reiterated that completion is targeted by the end of FY27. If that timeline holds, the project has the potential to cause a meaningful step-up in reported revenue in the year of completion, rather than being spread evenly during construction.

One 91 Thaltej and the next launch cycle: approvals remain the key variable

The investor presentation described One 91 Thaltej as a premium commercial project with 1.8 msf saleable area and revenue potential of INR 2,100 crore. It stated that the project is in the planning approval stage, with construction expected to start in the second quarter of FY27.

In the call, management said One 91 Thaltej is in an advanced stage of planning and design approvals and that it expects to share more specific details in Q1 FY27. It also gave cost context, stating the project sale value is about INR 2,100 crore and the cost is about INR 1,500 crore including land cost, with most of the land already paid. On funding, management said internal accruals should be adequate to develop the project, though it also reiterated that the company is open to modest borrowing for the right expansion opportunities.

Investors pressed management on repeated shifting timelines for launches and the lack of guidance. Management responded that it typically gives full-year guidance in Q1 and stated FY27 guidance would be provided with Q1 FY27 results. It also indicated that the configuration of large projects can change as the company optimises for profitability and market conditions.

Land bank and monetisation: a continuing pillar

Ganesh Housing continues to position its land bank as a competitive advantage. The investor presentation stated total land reserves of about 518 acres, fully paid. It also broke out the largest portion as about 411 acres at Godhavi Township and about 65 acres at Million Minds SEZ, with the balance in Thaltej and Malabar Retreat corridors.

On the call, management added that new parcels are under negotiation and not yet included in the 518-acre figure, with partial payments already made. It also mentioned that around 7 acres were acquired during the quarter. In discussing Godhavi monetisation, management said only about 46 acres have been monetised so far at average realisations of around INR 14.1 crore per acre, and it expects values to increase given infrastructure development.

The company also noted it has historically been flexible between monetising land outright and developing projects, depending on market opportunity. Management acknowledged that markets often prefer steady operational metrics, while Ganesh Housing has at times benefited materially from land monetisation.

Balance sheet: higher borrowings in FY26, but management frames it as tactical

The balance sheet table showed borrowings rose to INR 304.9 crore in FY26 from INR 27.4 crore in FY25. In Q&A, management explained that in the last week of FY26 it raised around INR 150 crore as an LRD-type facility based on LOIs signed for Million Minds. It also stated that certain short-term borrowings relate to unsecured loans from group entities. Despite the increase in borrowings, management continued to describe overall gearing as comfortable.

What investors should track into FY27

Ganesh Housing’s FY26 results are best read as a reset from an exceptionally strong FY25, with the company pushing towards a different earnings mix. The company’s confidence rests on three operational events: starting rentals at Million Minds Phase 1, completing and recognising Malabar Retreat, and moving the next project cycle forward including One 91 Thaltej and additional launches within the Million Minds land.

The next major checkpoint is Q1 FY27, when management has indicated it will provide clearer guidance and more specificity on One 91 Thaltej. FY27 will likely be judged less on Q4-style sequential growth and more on whether these operational milestones are delivered on schedule, particularly the commencement of leasing and the conversion of LOIs into signed tenants and cash flows.