Ganesh Infraworld Q2 profit falls 50% despite revenue growth

Ganesh Infraworld Limited reported consolidated net profit of Rs 8.9632 crore for the quarter ended September 30, 2026, 50.4% below Rs 18.0605 crore a year earlier, despite revenue from operations rising 49.9% to Rs 314.8279 crore. Higher finance costs, depreciation and employee expenses accompanied the revenue increase and reduced profit before tax.

What were Ganesh Infraworld's Q2 2026 consolidated results?

Ganesh Infraworld reported revenue from operations of Rs 314.8279 crore for the quarter ended September 30, 2026, compared with Rs 209.9742 crore in the September 2025 quarter. Other income was Rs 1.4444 crore, taking total income to Rs 316.2723 crore, while total expenses rose to Rs 303.3557 crore from Rs 186.5082 crore a year earlier.

Profit before tax declined to Rs 12.9166 crore from Rs 24.1543 crore, and net profit after tax fell to Rs 8.9632 crore from Rs 18.0605 crore. Profit attributable to owners of the parent was Rs 6.9771 crore, versus Rs 18.0839 crore, while non-controlling interests received Rs 1.9861 crore after recording a Rs 0.0233 crore loss in the prior-year quarter. Basic and diluted earnings per share were Rs 1.61, against Rs 4.23.

Why did Ganesh Infraworld's profit fall while revenue increased?

Ganesh Infraworld's finance costs and depreciation rose sharply in the September 2026 quarter. Finance costs increased to Rs 15.6201 crore from Rs 1.4059 crore, while depreciation and amortisation expense rose to Rs 18.6795 crore from Rs 0.8634 crore. Together, these charges were Rs 34.2996 crore, compared with Rs 2.2693 crore in the September 2025 quarter.

Construction and other direct expenses increased to Rs 252.8761 crore from Rs 179.1785 crore, a slower rise than revenue, but employee benefit expenses increased to Rs 7.7623 crore from Rs 1.3378 crore. Other expenses were Rs 8.4177 crore, compared with Rs 3.7226 crore. Tax expense fell to Rs 3.9534 crore from Rs 6.0938 crore, but this did not offset the Rs 11.2377 crore reduction in profit before tax.

The September quarter was also below the June 2026 quarter, when revenue from operations was Rs 378.7661 crore and profit before tax was Rs 39.5617 crore. Net profit after tax declined from Rs 29.7144 crore in June to Rs 8.9632 crore in September, while finance costs increased from Rs 12.963 crore to Rs 15.6201 crore.

Which Ganesh Infraworld segments drove September-quarter revenue?

Ganesh Infraworld's mining development operations generated the largest September-quarter revenue at Rs 118.5845 crore, followed by water infrastructure at Rs 89.1573 crore. Mining development operations increased from Rs 35.214 crore in the September 2025 quarter, while water infrastructure rose from Rs 62.2557 crore.

Civil and electrical infrastructure revenue declined to Rs 52.5164 crore from Rs 106.4151 crore a year earlier. Civic utilities contributed Rs 9.5308 crore, compared with Rs 6.0894 crore, while transportation generated Rs 42.8784 crore and equipment rental and leasing contributed Rs 2.1605 crore. The latter two segments had no revenue reported in the September 2025 comparative quarter.

Mining development operations also had the largest segment result before finance costs, depreciation and tax, or EBITDA, at Rs 21.1214 crore. Water infrastructure reported EBITDA of Rs 16.015 crore and civil and electrical infrastructure reported Rs 6.6526 crore. Equipment rental and leasing reported EBITDA of Rs 2.1605 crore but a segment loss before finance costs and tax of Rs 6.395 crore after depreciation.

What do Ganesh Infraworld's half-year cash flows show?

Ganesh Infraworld used Rs 81.8618 crore in operating activities in the half year ended September 30, 2026, compared with an outflow of Rs 29.6832 crore in the corresponding 2025 half year. Operating profit before working-capital changes was Rs 106.7843 crore, but trade receivables increased by Rs 42.0615 crore and short-term loans and advances increased by Rs 75.7259 crore.

Inventories increased by Rs 27.2286 crore, while other current assets increased by Rs 17.4012 crore during the half year. Cash generated from operations was negative Rs 68.9531 crore, and income taxes paid were Rs 12.9087 crore. These reported working-capital movements resulted in the operating cash outflow despite the pre-working-capital operating profit.

Financing activities generated Rs 81.8412 crore, including net proceeds of Rs 58.8053 crore from short-term borrowings and Rs 33.1867 crore from long-term borrowings. Cash and bank balances declined to Rs 3.1654 crore at September 30, 2026 from Rs 11.6973 crore at March 31, 2026. The cash-flow statement also records fixed assets acquired on credit of Rs 117.6899 crore during the half year.

How did Ganesh Infraworld's capital and borrowings change?

Ganesh Infraworld reported short-term borrowings of Rs 407.131 crore at September 30, 2026, compared with Rs 348.3257 crore at March 31, 2026. Long-term borrowings rose to Rs 179.271 crore from Rs 146.0843 crore, taking reported borrowings to Rs 586.402 crore at September 30. Trade receivables were Rs 379.5403 crore, compared with Rs 337.4788 crore at the March year-end.

Paid-up equity share capital was Rs 21.8855 crore at September 30, 2026, compared with Rs 21.3607 crore at March 31, 2026. The board allotted 52.328 lakh fully convertible warrants to non-promoter persons on July 14, 2026 at Rs 90 per warrant, with an upfront subscription of Rs 22.50 per warrant. It allotted 10.496 lakh equity shares following warrant conversion on August 11, 2026, leaving 41.832 lakh warrants outstanding at September 30.

The consolidated results include Tykoon Mines GK Limited, in which Ganesh Infraworld holds a 60% equity interest, Ganesh Netsoft JV Networks, in which it holds a 60% partnership interest, and Trivanta Resources Private Limited, in which it holds a 51% equity interest. The statutory auditor's limited review dated November 13, 2026 stated that nothing had come to its attention indicating a material misstatement in the consolidated statement.

Conclusion

Ganesh Infraworld's September 2026 quarter combined a Rs 104.8537 crore year-on-year increase in revenue with a Rs 9.0973 crore decline in net profit after tax. Mining development operations and water infrastructure supplied the largest revenue contributions, but increased finance costs and depreciation reduced the consolidated profit outcome.

The next disclosures to watch include movements in borrowings of Rs 586.402 crore, receivables of Rs 379.5403 crore and the working-capital items behind the Rs 81.8618 crore half-year operating cash outflow. Further conversion of the 41.832 lakh outstanding warrants is also a disclosed matter that could change the equity share count.