ABREL returns to operating profit, but reported net profit needs reconciliation
Revenue growth outpaced expense growth, lifting operating margin by 48.61 percentage points sequentially; other income was 19.78% of pre-tax profit.
Filed 26 Oct 2026, 12:52 IST · Aditya Birla Real Estate Ltd (ABREL)
Key takeaways
- Consolidated operating margin improved to 19.32% from -29.29% sequentially as revenue grew faster than expenses.
- Reported consolidated net profit of Rs 918.7 cr does not reconcile with profit before tax of Rs 173.79 cr and tax of Rs 30.48 cr.
- Q2FY27 bookings were Rs 298 cr, while management identified a FY27 launch pipeline of Rs 4,728 cr of economic GDV.
Price around the results
Operating recovery accelerates in Q2FY27
Consolidated revenue grew 336.87% sequentially and 743.24% year on year, while expenses rose less quickly at 172.62% and 296.38%, respectively. That operating leverage moved the company from an operating loss in both comparison periods to a 19.32% operating margin. The margin improved for a second straight quarter, from -193.81% in Q4FY26 to -29.29% in Q1FY27 and then 19.32%.
Profit quality is clouded by the reported net-profit figure
Interest expense fell 100.00% from both comparison periods, while the tax rate declined by 1.79 percentage points sequentially and 2.86 percentage points year on year. Other income contributed 19.78% of pre-tax profit, making it a material part of the reported result. More importantly, reported net profit of Rs 918.7 cr is far above pre-tax profit of Rs 173.79 cr after tax of Rs 30.48 cr, so the profit bridge and EPS of Rs 77.51 require reconciliation.
Margin beats the reported Consumer Discretionary peer median
ABREL's 19.32% operating margin was 6.90 percentage points above the 12.42% median among 48 Consumer Discretionary peers that had reported the quarter. The year-on-year comparison is especially large because Q2FY26 had a -71.64% operating margin. The sequential improvement was also substantial, with margin up 48.61 percentage points from Q1FY27.
Bookings and launch pipeline provide the business context
Management said Q2FY27 booking value was Rs 298 cr, led by Birla Taranya and Birla Niyaara in the Mumbai Metropolitan Region; Birla Taranya contributed Rs 123 cr through sustenance sales. The company told analysts that its FY27 project launch pipeline totals Rs 4,728 cr of economic GDV across 2.6 Mn sq ft of estimated saleable area. Management also said ongoing projects have Rs 6,619 cr of sustenance sales potential, including Rs 1,416 cr from Birla Evara.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹825 cr | ₹189 cr | +336.87% | +743.24% |
| Other income | ₹34 cr | ₹15 cr | +121.95% | +193.34% |
| Expenses | ₹666 cr | ₹244 cr | +172.62% | +296.38% |
| Operating profit | ₹159 cr | ₹-55 cr | — | — |
| Operating margin (%) | 19.32% | -29.29% | — | — |
| Interest | ₹0 cr | ₹26 cr | -100.00% | -100.00% |
| Depreciation | ₹20 cr | ₹17 cr | +15.16% | +27.02% |
| Profit before tax | ₹174 cr | ₹-83 cr | — | — |
| Tax | ₹30 cr | ₹-16 cr | — | — |
| Net profit | ₹919 cr | ₹-35 cr | — | — |
| EPS (₹) | ₹77.51 | ₹-3.48 | — | — |
Operating margin of 19.32% compares with a Consumer Discretionary sector median of 12.42% across 48 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.60% | +0.62% |
Volume on the results session was 0.98× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company recorded booking value of ₹298 Cr in Q2 FY27, led by Birla Taranya and Birla Niyaara in MMR.
- Birla Taranya generated booking value of ₹123 Cr in Q2 FY27 through strong sustenance momentum.
Guidance & outlook
- The FY27 project launch pipeline totals ₹4,728 Cr of economic GDV and 2.6 Mn sq ft of estimated saleable area.
- Ongoing projects have total sustenance sales potential of ₹6,619 Cr, including ₹1,416 Cr from Birla Evara.
- The redesigned Birla Niyaara Tower C is planned for launch in FY28.
Expansion
- The company announced a JDA for a 5.6-acre residential land parcel in Hinjewadi Phase 1, Pune, with GDV of about ₹1,650 Cr.
- Birla Niyaara Tower C adds approximately ₹1,900 Cr of net GDV upfront through its revised plan.
- The FY27 project launch pipeline has an estimated saleable area of 2.6 Mn sq ft.
New initiatives
- The company is redesigning Tower C at Birla Niyaara to unlock its full potential and improve profitability.
What to watch
- Whether consolidated operating margin holds above 19.32% after its 48.61-percentage-point sequential improvement.
- Whether quarterly booking value builds from Rs 298 cr, including sustenance contribution from Birla Taranya.
- Whether the company reconciles reported net profit of Rs 918.7 cr with pre-tax profit of Rs 173.79 cr and tax of Rs 30.48 cr.