Ashiana Housing (523716) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw steady operational progress with strong cash flow and a sharp rise in PAT to INR 27.54 crores, despite lower revenue and bookings compared to Q1, driven by higher-margin sales and project recoveries.

• Value of area booked in Q2 was INR 303.43 crores, down from INR 430.97 crores in Q1 and INR 672.54 crores in Q2FY25.

• Equivalent area constructed increased by 18% sequentially to 7.25 lakh sq ft in Q2; H1FY26 area constructed rose 22.96% YoY to 13.44 lakh sq ft.

• Major launches included Ashiana Aravali, Tarang Phase 6, and Swarang Phase 2; handovers began for several project phases.

• Unaudited standalone and consolidated financial results for the quarter and half-year ended 30th September 2025 were reviewed and approved by the Board on 12th November 2025.

Financial highlights

• Total revenue for Q2 FY26 was INR 176.18 crores, down from INR 302.72 crores in Q1 but up from INR 59.53 crores in Q2FY25; H1FY26 revenue was INR 478.90 crores.

• PAT for Q2 stood at INR 27.54 crores, up from INR 12.72 crores in Q1 and a loss of INR 7.55 crores in Q2FY25; H1FY26 PAT was INR 40.26 crores.

• Pre-tax operating cash flow in Q2FY26 was INR 122.62 crores, up from INR 108.10 crores in Q1 and INR 78.18 crores in Q2FY25.

• EBITDA margin in Q2FY26 improved to 22.55% from 7.20% in Q1 and -11.32% in Q2FY25; net profit margin in Q2FY26 was 15.63%.

• Standalone net profit for Q2 FY26 was ₹3,220 lakhs, up from a loss of ₹701 lakhs in Q2 FY25; consolidated net profit was ₹2,754 lakhs, up from a loss of ₹755 lakhs year-over-year.

Outlook and guidance

• FY26 pre-sales target is INR 2,000 crores, with significant dependence on the successful launch of Amarah and Aaroham projects in Q4.

• Revenue of INR 4,758.27 crores is locked in over the next 3-4 years from ongoing projects, with an additional INR 1,113.15 crores expected from unsold inventory.

• Net profit margins are expected to reach low double digits (~10-11%) for the full year, with further improvement anticipated in FY28 as the project mix shifts to higher-margin developments.

• By FY28, net profit margins are projected to be in the mid-to-high teens, and ROE is expected to cross 20% if current plans are met.

• Future projects pipeline includes 51.78 lakh sq ft saleable area across multiple cities; land bank for future development stands at 57 lakh sq ft.