Indiabulls Q4 FY26: A post-merger reset with real estate at the centre

Indiabulls Limited reported a sharp profit profile in FY26, its first full year following the group consolidation and rebranding. For FY26, the company disclosed revenue of 880.7 crore and profit after tax of 346.1 crore, implying a 39.3 percent profit margin. In Q4 FY26, revenue rose to 418.3 crore with PAT of 194.2 crore, a margin of 46.4 percent.

The quarter also marked a key accounting inflection point. Management stated Q4 FY26 was the first quarter of real estate revenue recognition in the company’s books, and that future earnings will be driven by a project pipeline that is already signed and moving through approvals and execution.

FY26 in numbers, and what changed after the merger

The company described FY26 as a transformational year after the merger of Dhani Services Limited and Indiabulls Enterprises Limited into Yaari Digital Integrated Services Limited, which was subsequently renamed Indiabulls Limited. Management stated the earlier pivot into digital consumer lending and e-commerce was exited due to structurally weak unit economics and underwriting and collection challenges. The group restructuring consolidated multiple entities and was positioned as a clean-up of operations and capital allocation.

Management also highlighted a net cash position and stated the group has no debt, citing cash and cash equivalents of about 750 crore as of the call date. In addition, management stated the company has an inherited tax shield of about 3,000 crore, suggesting that profit before tax and profit after tax may remain similar while the shield is utilised.

Real estate: pipeline visibility is the core investment case

Indiabulls is positioning real estate as the dominant earnings driver over the medium term. The investor presentation disclosed a total project portfolio GDV of 21,366 crore across launched projects, FY27 planned launches, and future pipeline, backed by 110.52 lakh square feet of saleable area.

The portfolio is heavily skewed to NCR. By square feet, the geographic mix disclosed was NCR at 86 percent, Mumbai at 11 percent, and Ludhiana at 2 percent. Segment mix was disclosed as 70 percent residential, 15 percent commercial, 12 percent mixed development, and 3 percent plotted land.

Operationally, as of 31 March 2026, Indiabulls reported 21.6 lakh square feet sold, 909 units sold, sales booked of 2,752 crore, and collections of 400 crore. The company also provided a revenue recognition snapshot from FY26 launched projects, indicating 259 crore of revenue recognised from sales booked, with 2,493 crore as balance revenue to be recognised from those sales.

Management clarified that real estate revenues are recognised on a percentage completion basis. That approach can produce a sustained earnings stream as construction progresses, but it also means investors need to track execution pace and collections discipline closely.

Pipeline build-up disclosed by the company

Management also stated the GDV includes joint venture projects and mentioned a rough benchmark of around 20 percent for the JV element.

A notable long-duration asset in the portfolio is Indiabulls Tower, Prabhadevi, Mumbai, which is planned as a leased commercial property. During the call, management indicated construction has started, a 3 to 4 year completion timeline, and capex of about 600 crore. The transcript also included a correction to a rent statement, clarifying expected annual rent of 100 to 120 crore based on market rates.

Financial services: broking and ARC provide a capital-light base

Alongside real estate, Indiabulls runs a financial services stack that includes stock broking and an asset reconstruction company.

In broking, the investor presentation disclosed FY26 revenue of 124.4 crore, compared to 131 crore in FY25. However, Q4 FY26 showed momentum with revenue of 34 crore versus 27 crore in Q4 FY25. Client additions rose sharply to 28,000 in Q4 FY26 from 3,016 in Q4 FY25, which management attributed to a push into digital and discount broking.

The company disclosed engagement metrics including over 9 lakh broking clients, 1.73 lakh demat accounts, 1,12,422 active accounts, and client assets of over 68,000 crore. Management also stated the broking business generated about 28 crore of profit before tax in FY26, largely from the offline branch model.

In ARC, Indiabulls disclosed fee-paying AUM of 622 crore and assets under collection of 3,794 crore, with recoveries of 288 crore for FY26. The ARC disclosed net worth of 533 crore and capital adequacy of 97.92 percent as of 31 March 2026. Management emphasised a diversified portfolio sourced from multiple banks and NBFCs and highlighted a large in-house recovery set-up with about 2,200 collection professionals.

On the NBFC side, management stated the existing loan book is being run down with no fresh disbursements planned, and that the NBFC has no debt. Management also indicated the loan book could generate roughly 120 crore of interest income over a year.

Separately, Indiabulls described its US SMB platform exposure as a strategic investment in Spring Cash LLC. The presentation cited 150 plus businesses onboarded and 102 million dollars funded. Management stated Indiabulls invested at a valuation of 30 million dollars and described it as an investment rather than a current P and L contributor.

What investors should track next

Management’s key forward statements were centred on real estate. It stated real estate is expected to contribute nearly 80 percent of group profit and that real estate profits in FY27 could grow at least 2x versus current levels, and FY28 at least 3x. Management also spoke of longer-range potential, suggesting a path to 1,000 to 1,500 crore of PAT in five to seven years, while acknowledging the difficulty of quarter-to-quarter guidance in real estate.

The next phase therefore comes down to execution proof points: launch cadence in FY27, construction progress that drives percentage-completion revenue recognition, and collections discipline. In parallel, the company’s financial services businesses should be evaluated on whether the digital broking build-out translates into sustained revenue growth, and whether ARC recoveries convert into profit as portfolios season.

Indiabulls has positioned itself as a simplified group with a real estate-led earnings engine and supporting financial services platforms. FY26 delivered strong reported profitability. The market’s next question will be whether the disclosed pipeline and timelines consistently convert into reported cash flows and earnings through FY27 and beyond.