Revenue plunged 88.76% QoQ, but operating margin rose to 43.27%
Interest costs rose 70.28% sequentially, while a lower tax rate cushioned the sharper fall in profit before tax.
Filed 30 Oct 2026, 17:27 IST · after market close · Ganesh Housing Ltd (GANESHHOU)
Key takeaways
- Standalone revenue fell -88.76% quarter-on-quarter to Rs 30.8 cr, while operating margin improved by 2.29 percentage points.
- Net profit declined -86.67% to Rs 6.09 cr as interest expense rose +70.28% and the tax rate fell 45.33 percentage points.
- Operating margin at 43.27% was 30.65 percentage points above the 12.62% median for 120 reporting Consumer Discretionary peers.
Price around the results
Revenue dropped sharply after Q1’s high base
Ganesh Housing’s standalone revenue fell -88.76% quarter-on-quarter in Q2FY27, and operating profit declined -88.13%. The fall was broadly in line with the -89.20% decline in expenses, so operating margin nevertheless widened by 2.29 percentage points to 43.27%. Other income contributed only 0.57% of profit before tax, making it immaterial to the quarter’s result.
Higher interest costs weakened profit conversion
Interest expense rose +70.28% sequentially, while depreciation increased +15.91%, pushing profit before tax down -93.58%, a steeper decline than operating profit. The tax rate fell by 45.33 percentage points to 12.52%, which cushioned the fall in net profit to -86.67%. EPS therefore declined -86.68% to Rs 0.73.
Margin remains well above the peer median
The company’s 43.27% operating margin was 30.65 percentage points above the 12.62% median among 120 Consumer Discretionary peers that had reported the quarter. Sequentially, margin improved despite the sharp revenue contraction, but the available trend covers only the prior quarter and does not establish a multi-quarter direction.
Management points to Million Minds leasing activity
Management said around 70% of Million Minds IT SEZ Phase 1’s leasable area was tied up, mainly with GCCs, hybrid workspace providers and technology firms. It also said lease rentals are expected to commence by Q4FY27, while a 1.5 million square foot Phase 2 is planned and its Bhumi Pujan is scheduled for Q3FY27. The presentation also records the acquisition of 10 acres during Q2FY27 and a planned project area of approximately 28.8 million square feet.
Results were filed after market close
The results were filed after market close on 30 October 2026, so there is no market reaction to assess yet. The next reported reaction will need to be read against the company’s post-results trading history once that history is available.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹31 cr | ₹274 cr | -88.76% |
| Other income | ₹0 cr | ₹0 cr | -84.00% |
| Expenses | ₹17 cr | ₹162 cr | -89.20% |
| Operating profit | ₹13 cr | ₹112 cr | -88.13% |
| Operating margin (%) | 43.27% | 40.98% | — |
| Interest | ₹5 cr | ₹3 cr | +70.28% |
| Depreciation | ₹2 cr | ₹1 cr | +15.91% |
| Profit before tax | ₹7 cr | ₹108 cr | -93.58% |
| Tax | ₹1 cr | ₹63 cr | -98.61% |
| Net profit | ₹6 cr | ₹46 cr | -86.67% |
| EPS (₹) | ₹0.73 | ₹5.48 | -86.68% |
Operating margin of 43.27% compares with a Consumer Discretionary sector median of 12.62% across 120 peers that have reported Q2FY27.
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 70% of Million Minds IT SEZ Phase 1’s leasable area was tied up, mainly with GCCs, hybrid workspace providers and technology firms.
- Beautification and landscaping work for Million Minds IT SEZ Phase 1 was underway.
Guidance & outlook
- Lease rentals for Million Minds IT SEZ Phase 1 are expected to commence by Q4 FY27.
- The company has a planned project area of approximately 28.8 million square feet, with expected completion from September 2026 to October 2040.
- Property values in Gujarat’s real estate market are expected to appreciate by 10–15% annually.
Planned next quarter
- The Bhumi Pujan for Million Minds IT SEZ Phase 2 is scheduled during Q3 FY27.
Expansion
- Million Minds IT SEZ Phase 2 is planned as a 1.5 million square foot development with 6.6 lakh square feet of carpet area.
- The company acquired 10 acres of land during Q2 FY27.
- Four projects are planned, covering approximately 28.8 million square feet.
New orders
- New letters of intent were executed with Airtel, Conga Software, Flagler Health and iBase-T.
New initiatives
- Million Minds IT SEZ Phase 1 is an ESG-certified Platinum project with sustainable design and infrastructure.
- The company is enhancing its brand through strategic partnerships with global players including Tishman Speyer.
What to watch
- Whether operating margin holds above 43.27% in the next reported quarter.
- Whether interest expense reverses from its +70.28% quarter-on-quarter increase.
- Whether the roughly 70% lease-up of Million Minds IT SEZ Phase 1 rises as management works toward lease rentals by Q4FY27.