Shree Salasar Q4 FY26 Results (BSE: 503635)
Signal: Earnings grew
The read
Q4FY26 consolidated PAT of ₹487 Lakh (after minority) was up 1,121% YoY as the real estate development business achieved major revenue recognition (₹2,968 Lakh, +81% YoY). Gross margin expanded 1090bps and operating leverage (employee cost almost flat) drove EBITDA margin to 22.4% from 4.6% a year ago. The FY26 full-year picture: revenue ₹11,237 Lakh (+153% YoY), PAT ₹1,844 Lakh (+653% YoY), EPS ₹26.45 (+692% YoY). The company has transformed from a tiny finance entity into a sizeable real estate developer, albeit with high project-level debt.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹29.68 Cr | 81.1% | -4.2% |
| EBIT | ₹6.64 Cr | 777.7% | |
| Net profit | ₹5.07 Cr | 1032.3% | |
| EPS | ₹7.27 | 1035.9% | |
| EBIT margin | 22.38% |
P&L walk
The consolidated P&L shows that the real estate development subsidiary drove a massive growth inflection: Q4 revenue ₹2,967.74 Lakh (+81% YoY) and EBITDA (derived) of ~666.4 Lakh, translating into an EBITDA margin of ~22.4% vs 4.6% in Q4 last year, a 1768bps expansion. This came on the back of strong operating leverage: employee costs grew only 0.2%, D&A grew 96% but from a tiny base; the dominant cost line was cost of materials consumed at ₹2,036 Lakh (68.6% of revenue, down from 79.5% in Q4FY25) — a 1090bps gross margin expansion suggesting a favourable project mix. Finance cost rose to ₹148 Lakh from ₹1.62 Lakh a year ago, reflecting increased project-level borrowings; pre-tax profit of ₹664 Lakh (+777% YoY) after charging this interest is a very high bar. PAT after minority (₹19.83 Lakh, minority up from ₹4.88 Lakh) was ₹487 Lakh — a 1,121% YoY surge. EPS for Q4 stood at ₹7.27 vs ₹0.64 YoY.
Segments
The consolidated results reflect a single operating segment (real estate development) — no formal segment note is provided; all revenue and profit stems from the subsidiary that develops and sells properties. The parent company is merely an investment vehicle.
Key positives
- Q4FY26 consolidated PAT of ₹507.06 Lakh (before minority) vs ₹44.77 Lakh YoY — growth of 1,032% YoY.
- Revenue from operations grew 81.1% YoY to ₹2,967.74 Lakh, driven by real estate project deliveries.
- Operating leverage is strong: employee cost grew only 0.2% YoY while revenue grew 81% — EBITDA margin expanded 1,768bps YoY to ~22.4%.
- FY26 full-year consolidated EPS of ₹26.45 (vs ₹3.34 in FY25) — a 692% increase — reflects the scale-up in the development pipeline.
Key concerns
- Finance cost soared to ₹148.19 Lakh in Q4 from ₹1.62 Lakh YoY; debt on the consolidated balance sheet is ₹9,243.54 Lakh (borrowings) vs net equity of ₹6,994.91 Lakh — debt/equity ~1.32x; coverage is adequate currently but elevated financing costs could compress margins if revenue slows.
- QoQ revenue declined 4.2% from Q3FY26 (₹3,099 Lakh to ₹2,967.74 Lakh) suggesting the quarterly trajectory may be lumpy, typical of project-based real estate.
- Minority interest (₹19.83 Lakh in Q4 vs ₹4.88 Lakh Q4FY25) rose, indicating higher profit share accruing to minority holders in the subsidiary; this dilutes the parent's share of net profit slightly.
- The standalone entity (the listed holding company) has minimal operations; the real value sits in a subsidiary — investors are exposed to minority holders' interests.
Research and educational content only. Not investment advice.