87.19% operating margin puts Ganesh Housing far above sector median
A 59.99% tax rate limited net-profit conversion, while management said Million Minds lease rentals are expected to start by Q3 FY27.
Filed 24 Jul 2026, 15:47 IST · after market close · Ganesh Housing Ltd (GANESHHOU)
Key takeaways
- Consolidated operating margin was 87.19%, or 71.05 percentage points above the 16.14% median for 22 Consumer Discretionary peers.
- Net profit of Rs 41.96 cr was constrained by a 59.99% tax rate on profit before tax of Rs 104.86 cr.
- Management said lease rentals from Million Minds IT SEZ Phase 1 are expected to commence by Q3 FY27, with 55% of leasable area under discussions, LOIs or EOIs.
Price around the results
High operating conversion, but lower profit after tax
In consolidated Q1FY27, revenue of Rs 279.93 cr was accompanied by expenses of Rs 35.86 cr, producing an 87.19% operating margin. Profit before tax was Rs 104.86 cr, while net profit was Rs 41.96 cr after Rs 62.90 cr of tax. Other income was only Rs 0.25 cr, so it was not a material disclosed contributor to reported profit before tax.
Tax was the main drag on earnings conversion
The 59.99% tax rate absorbed a large portion of profit before tax and explains why net profit was much lower than operating profit. Interest of Rs 3.85 cr and depreciation of Rs 1.32 cr were additional deductions, but the tax charge was the larger disclosed constraint on earnings conversion.
Margin stands well above the reported peer median
Ganesh Housing's 87.19% operating margin was 71.05 percentage points above the 16.14% median among 22 Consumer Discretionary companies that had reported the quarter. No sequential or year-on-year comparison is available here, so the sector comparison is the clearest benchmark for this release.
Million Minds is nearing its leasing milestone
Management said Million Minds IT SEZ Phase 1, with approximately 1.4 million square feet of total development and 0.85 million square feet of leasable area, was expected to be completed in July 2026. The company said lease rentals are expected to commence by Q3 FY27, while about 55% of leasable area was already under discussions, LOIs or EOIs. Management also said the project may not require additional debt for its balance construction work.
Results were filed after market close
The consolidated results were filed at 15:47 IST on 24 July 2026, after market close. That timing leaves no same-session stock reaction to assess against the company's past results.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹280 cr |
| Other income | ₹0 cr |
| Expenses | ₹36 cr |
| Operating profit | ₹244 cr |
| Operating margin (%) | 87.19% |
| Interest | ₹4 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹105 cr |
| Tax | ₹63 cr |
| Net profit | ₹42 cr |
| EPS (₹) | ₹5.03 |
Operating margin of 87.19% compares with a Consumer Discretionary sector median of 16.14% across 22 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Approximately 55% of Million Minds Phase 1's leasable area was under active discussions, LOIs or EOIs.
Guidance & outlook
- Lease rentals for Million Minds IT SEZ Phase 1 are expected to commence by Q3 FY27.
- The company says Million Minds Phase 1 may not require additional debt for balance construction work.
- Property values in Gujarat's real estate market are expected to appreciate by 10–15% annually.
- Connectivity and investment appetite are continuing to support demand for residential and commercial projects.
Expansion
- Million Minds IT SEZ Phase 1 has approximately 1.4 million square feet of total development and 0.85 million square feet of leasable area.
- Million Minds IT SEZ Phase 1 was expected to be completed in July 2026.
- The company holds approximately 518 acres of fully paid land reserves.
- New land parcels were under negotiation or acquisition during Q4, with partial payments already made.
New initiatives
- Favourable market conditions led to a strategic shift toward land monetisation to generate upfront cash and improve cash-flow realisation.
- Million Minds Phase 1 is an ESG-certified Platinum project with sustainable design and infrastructure.
What to watch
- Whether Million Minds Phase 1 lease rentals commence by Q3 FY27, as management said.
- Whether operating margin remains near 87.19% in the next reported quarter.
- Whether the tax rate moves below 59.99% and improves net-profit conversion.