Ganesh Housing Q1 FY27 Results (NSE: GANESHHOU)
Signal: Margin pressure
The read
Consolidated revenue surged +85.6% YoY to ₹279.93 Cr, reversing 3 quarters of decline, driven by large inventory liquidation (change in inventories ₹135.61 Cr vs -₹4.38 Cr YoY). However, OPM compressed -1100bps to 38.1% as cost of materials consumed rose to 4.6% of revenue (vs 0.2% YoY). PAT at ₹41.96 Cr (+351.2% YoY) looks high but is off a very low base (Q1FY26 PAT ₹9.31 Cr) and EPS actually fell -54.9% to ₹5.03 — a concerning divergence that may indicate prior-period adjustments or share count changes. Standalone revenue of ₹274.08 Cr dwarfs prior-year ₹4.08 Cr, suggesting project completion revenue was recognized in the parent entity. Quality of earnings is low: the top-line revival is inventory-liquidation-driven, margins are contracting, and finance cost jumped +278% YoY. The Gatil Properties scheme is progressing with no adverse observations from stock exchanges, but no financial impact recorded yet.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹279.93 Cr | +85.6% | +194.5% |
| EBIT | ₹109.19 Cr | +321.2% | |
| Net profit | ₹41.96 Cr | +351.2% | |
| EPS | ₹5.03 | -54.9% | |
| EBIT margin | 38.1% |
P&L walk
Consolidated revenue surged +85.6% YoY to ₹279.93 Cr, reversing 3 quarters of decline, driven by large inventory liquidation (change in inventories of ₹135.61 Cr vs -₹4.38 Cr in Q1FY26). However, cost of materials consumed jumped to ₹12.91 Cr (4.6% of revenue vs 0.2% YoY), compressing OPM by 1100bps to 38.1%. PAT rose +351.2% to ₹41.96 Cr, but EPS fell -54.9% to ₹5.03 due to the share count being held constant — the PAT growth is off a very low base (Q1FY26 PAT was ₹9.31 Cr).
Segments
Single real estate segment drives all revenue; no material standalone-vs-consolidated divergence reported.
Key positives
- Consolidated revenue surged +85.6% YoY to ₹279.93 Cr, reversing 3 quarters of consecutive decline.
- Consolidated PAT of ₹41.96 Cr is +351.2% YoY, off a very low prior base, but still positive absolute.
- Change in inventories of ₹135.61 Cr indicates strong project completion and inventory liquidation in the quarter.
- The Gatil Properties scheme of arrangement received no adverse observations from BSE/NSE, clearing a regulatory milestone.
Key concerns
- OPM compressed -1100bps YoY to 38.1%, as cost of materials consumed rose to 4.6% of revenue vs 0.2% YoY — margin quality deteriorated.
- EPS fell -54.9% to ₹5.03 despite PAT growing +351.2% YoY — a significant divergence requiring investigation (share count unchanged).
- Finance cost jumped +278.1% YoY to ₹3.85 Cr, indicating higher borrowing activity.
- Revenue growth is off a very low base (Q1FY26 revenue ₹150.81 Cr was already depressed; Q1FY25 revenue was ₹214 Cr). The YoY jump is optically large but may not be sustainable if inventory liquidation was a one-time event.
- Standalone revenue of ₹274.08 Cr vs consolidated ₹279.93 Cr implies minimal subsidiary contribution; standalone swung from -₹10.42 Cr loss to ₹45.69 Cr PAT, but quality is inventory-driven.
- The company reported 'no adverse observations' on Gatil Properties scheme but no financial integration has occurred yet — execution risk remains.
Research and educational content only. Not investment advice.