Shraddha Prime Projects Q2 profit rises to Rs 24.93 crore

Shraddha Prime Projects Limited reported consolidated profit after tax of Rs 24.93 crore for the quarter ended September 30, 2026, compared with Rs 8.08 crore in the restated year-earlier quarter, as operating margin rose to 30.83% from 8.74% despite a 1.7% decline in revenue from operations.

How did Shraddha Prime Projects perform in the September quarter?

Shraddha Prime Projects recorded Rs 24.93 crore of consolidated profit after tax in the quarter ended September 30, 2026, up from Rs 8.08 crore a year earlier. Profit before tax rose to Rs 31.76 crore from Rs 15.53 crore, while total income declined to Rs 136.01 crore from Rs 138.15 crore in the restated September 2025 quarter.

Revenue from operations was Rs 132.02 crore, compared with Rs 134.33 crore in the prior-year quarter. Other income increased to Rs 4.00 crore from Rs 3.81 crore, partially offsetting the Rs 2.32 crore reduction in operating revenue. The company reports real estate development and related construction as its single operating segment.

Profit attributable to owners was Rs 24.92 crore in the September 2026 quarter, while profit attributable to non-controlling interests was Rs 3.60 lakh. Total comprehensive income was Rs 24.89 crore, after other comprehensive expense of Rs 3.44 lakh. Basic and diluted earnings per share, not annualised, rose to Rs 6.17 from Rs 2.16.

Why did Shraddha Prime Projects’ profit margin rise?

Shraddha Prime Projects’ margin rose because total expenses fell by Rs 18.37 crore year on year, more than the Rs 2.32 crore reduction in revenue from operations. Cost of projects declined to Rs 96.93 crore in the September 2026 quarter from Rs 122.54 crore in the restated September 2025 quarter.

The filing reported operating margin of 30.83%, compared with 8.74% a year earlier. It defines operating margin as earnings before interest expenses, depreciation, tax and exceptional items, less other income, divided by revenue from operations. Net profit margin increased to 18.33% from 6.32%, based on profit after tax divided by total income.

Changes in inventories of finished goods, stock-in-trade and work-in-progress were an expense of Rs 3.48 crore, compared with an expense of Rs 8.02 crore a year earlier. Other expenses fell to Rs 1.39 crore from Rs 7.17 crore, while employee-benefit expense increased to Rs 1.27 crore from Rs 94.07 lakh.

Finance costs rose to Rs 66.96 lakh from Rs 13.44 lakh, and depreciation and amortisation increased to Rs 6.75 lakh from Rs 2.63 lakh. Tax expense was Rs 6.83 crore, compared with Rs 7.45 crore in the restated prior-year quarter; it included current tax of Rs 7.05 crore and deferred-tax credit of Rs 21.24 lakh.

What do the first-half results show?

Shraddha Prime Projects reported consolidated first-half profit after tax of Rs 44.31 crore for the half year ended September 30, 2026, compared with Rs 17.32 crore in the restated first half of 2025. First-half revenue from operations increased to Rs 265.55 crore from Rs 193.03 crore, lifting total income to Rs 272.77 crore from Rs 199.48 crore.

Total expenses increased to Rs 213.84 crore in the six months from Rs 170.72 crore a year earlier, but at a slower rate than income. As a result, profit before tax increased to Rs 58.93 crore from Rs 28.59 crore. The prior-year half included an exceptional item of Rs 17.35 lakh, while no exceptional item was reported for the half year ended September 2026.

Cash and cash equivalents stood at Rs 15.80 crore at September 30, 2026, compared with Rs 34.09 crore at March 31, 2026. The half-year cash-flow statement reported a Rs 18.29 crore net decrease in cash and cash equivalents, following cash used in operating and investing activities and cash generated from financing activities.

What group changes affected Shraddha Prime Projects’ reporting?

Shraddha Prime Projects included Shraddha Life Spaces Private Limited in its September 2026 consolidated results after concluding it had obtained full control, although share-transfer formalities and Registrar of Companies filings remained pending. The company paid Rs 10.37 crore to acquire 100% of Shraddha Life Spaces Private Limited, which was ultimately controlled by the same promoter group before and after the transaction.

The transaction was accounted for as a common-control business combination under Indian Accounting Standard 103 using the pooling-of-interests method. Shraddha Prime Projects included the acquired company’s financial information as if the combination had occurred on April 1, 2025, leading to restatement of the September 2025 quarter, September 2025 half year and year ended March 31, 2026 comparatives.

Shraddha Prime Projects also reduced its interest in Shraddha Sai Infra to 36% from 51% effective July 23, 2026. Shraddha Sai Infra consequently ceased to be a subsidiary and became an associate. On August 7, 2026, the company became a 75% profit-sharing partner in newly formed Shraddha City Spaces.

A proposed acquisition of 91% of Atharva Ventures Private Limited for no more than Rs 91,000 remained incomplete at September 30, 2026, with no consideration transferred and no consolidation. Separately, the company is in the initial stage of transferring about 4,132.95 square metres of Permanent Transit Camp units in the Shree Ganeshkrupa SRA CHS project to Shree Krishna Raul Developers; it said revenue recognition under the Percentage of Completion Method had not begun.

Conclusion

Shraddha Prime Projects delivered substantially higher September-quarter and first-half profit despite lower quarterly revenue, with reduced project costs and other expenses driving the rise in operating margin to 30.83%. The results also incorporate the common-control combination involving Shraddha Life Spaces Private Limited, requiring restated comparative periods.

The next reporting periods will show the effect of completing Shraddha Life Spaces Private Limited share-transfer formalities, the outcome of negotiations for the Atharva Ventures Private Limited acquisition, and progress on the 4,132.95-square-metre Permanent Transit Camp transaction. Revenue recognition for that project remains unresolved because it had not reached the required stage as of September 30, 2026.