Narendra Properties profit falls 32% as operating revenue stays nil

Narendra Properties Limited reported standalone profit after tax of Rs 27.27 lakh for the quarter ended 30 September 2026, down 32% from Rs 40.26 lakh a year earlier, while revenue from operations remained Rs 0. The company recorded Rs 72.25 lakh of other income, which accounted for all its total income during the quarter.

Why did Narendra Properties report no operating revenue?

Narendra Properties reported Rs 0 of standalone revenue from operations for the September 2026 quarter, unchanged from the June 2026 quarter and the September 2025 quarter. Its total income of Rs 72.25 lakh therefore came entirely from other income of the same amount. The filing identifies construction and property development as the company’s primary business segment and says there are no separate reportable segments.

The first-half comparison shows a larger change in the income mix. Revenue from operations was Rs 0 for the six months ended 30 September 2026, compared with Rs 2.75 crore in the corresponding 2025 period. Other income increased to Rs 1.96 crore from Rs 1.56 crore, but total income still declined to Rs 1.96 crore from Rs 4.31 crore because the prior-year half included operating revenue.

The half-year cash-flow statement identifies Rs 1.93 crore of interest income recognised in profit or loss and Rs 3 lakh of rental income from leased property. Together, those lines broadly correspond to the reported Rs 1.96 crore of other income for the six-month period. The filing does not separately break down September-quarter other income of Rs 72.25 lakh.

How did Narendra Properties’ September-quarter profit change?

Narendra Properties’ standalone profit after tax fell to Rs 27.27 lakh in the quarter ended 30 September 2026 from Rs 40.26 lakh in the year-earlier quarter. Profit before tax declined to Rs 27.20 lakh from Rs 39.70 lakh. Basic and diluted earnings per share were Rs 0.38, compared with Rs 0.57, and the company said quarterly earnings per share are not annualised.

Sequentially, profit after tax was lower than Rs 88.48 lakh in the quarter ended 30 June 2026. Other income fell to Rs 72.25 lakh from Rs 1.24 crore over those quarters, while total expenses rose to Rs 45.05 lakh from Rs 35.53 lakh. The standalone results show no exceptional or extraordinary items in either quarter.

For the six months ended 30 September 2026, profit after tax was Rs 1.16 crore, compared with Rs 1.17 crore in the corresponding prior-year period. Profit before tax was Rs 1.16 crore against Rs 1.17 crore. The narrower half-year profit movement compared with the revenue decline reflects the increase in other income and lower reported expenses.

Which expenses changed in the September 2026 quarter?

Narendra Properties reported total standalone expenses of Rs 45.05 lakh in the September 2026 quarter, compared with Rs 35.53 lakh a year earlier. Employee benefits expense increased to Rs 21.46 lakh from Rs 14.73 lakh, depreciation and amortisation rose to Rs 2.30 lakh from Rs 1.71 lakh, and other expenses increased to Rs 21.29 lakh from Rs 19.09 lakh.

Materials consumed were Rs 3.32 lakh, against Rs 54.60 lakh a year earlier, while changes in inventories were negative Rs 3.32 lakh, compared with negative Rs 54.60 lakh. Those two lines offset each other in both quarterly periods. Finance costs were Rs 0 in the September 2026 and September 2025 quarters.

For the half year, total expenses fell to Rs 80.58 lakh from Rs 3.14 crore. Materials consumed declined to Rs 8.31 lakh from Rs 1.67 crore, while inventory changes moved to negative Rs 8.31 lakh from a positive Rs 76.65 lakh. Employee benefits expense nevertheless rose to Rs 35.93 lakh from Rs 28.91 lakh, and other expenses increased to Rs 40.10 lakh from Rs 38.64 lakh.

What changed in Narendra Properties’ balance sheet and cash flow?

Narendra Properties reported standalone total assets of Rs 40.20 crore at 30 September 2026, up from Rs 39.08 crore at 31 March 2026. Total equity increased to Rs 40.04 crore from Rs 38.88 crore, while total liabilities declined to Rs 16.27 lakh from Rs 19.65 lakh. Current assets decreased to Rs 26.36 crore from Rs 31.58 crore.

Cash and cash equivalents fell to Rs 8.33 lakh at 30 September 2026 from Rs 1.06 crore at 31 March 2026. Operating activities generated Rs 1.78 crore during the half year, compared with Rs 15.64 lakh in the corresponding 2025 period. Investing activities used Rs 2.76 crore, versus generating Rs 4.53 crore a year earlier, leaving a net decrease in cash and cash equivalents of Rs 97.99 lakh.

The investing cash flow included a Rs 7.50 crore capital contribution to limited liability partnerships, or LLPs. The balance sheet consequently showed Rs 7.50 crore of non-current investments at 30 September 2026, compared with Rs 0 at 31 March 2026. Current loans declined to Rs 13.77 crore from Rs 16.20 crore, while inventories increased to Rs 10.67 crore from Rs 10.58 crore.

What are Narendra Properties’ new LLP investments?

Narendra Properties made capital contributions of Rs 3.75 crore each to Sugal Earthen Spaces Developers LLP and Solidus Developers LLP, effective 5 August 2026. Each LLP agreement gave the company a 35% profit-sharing ratio. The company said it exercises significant influence over both entities, which are treated as associates from their respective effective dates.

The investments are accounted for at cost in the standalone financial statements under Indian Accounting Standard 27, or Ind AS 27, on separate financial statements. In consolidated financial results, the associates will be accounted for under the equity method prescribed by Ind AS 28, which covers investments in associates and joint ventures. The consolidated results included Rs 1,000 as the group’s share of net profit after tax from the two associates for both the quarter and half year.

The statutory auditor drew attention to the investments in its standalone limited-review report but did not modify its conclusion. The auditor stated that nothing had come to its attention indicating that the unaudited standalone statement failed to disclose required information or contained a material misstatement. Narendra Properties’ board approved the results on 5 November 2026.

Conclusion

Narendra Properties’ September 2026 standalone result combined Rs 0 operating revenue with Rs 72.25 lakh of other income and Rs 27.27 lakh of profit after tax. Profit declined from both Rs 40.26 lakh a year earlier and Rs 88.48 lakh in the preceding quarter, while the first-half comparison shows that other income partly offset the absence of the Rs 2.75 crore of prior-year operating revenue.

The next results will show whether revenue from operations resumes after remaining at Rs 0 for the first half of fiscal 2027. They will also show the financial contribution of the two LLP associates following Narendra Properties’ Rs 7.50 crore aggregate investment and 35% profit-sharing ratio in each from 5 August 2026.