Prozone Realty Q2 Net Profit Surges to ₹56,644 Lakh

Key Financial Figures - Standalone (Rs. in lakhs)

Quarterly Performance (Q2 FY2026 vs Q2 FY2025):

Revenue from operations: 171.20 (vs 219.89 in Q2 FY2025)
Other income: 2,841.79 (vs 257.05 in Q2 FY2025)
Total income: 3,012.99 (vs 476.94 in Q2 FY2025)
Total expenses: 1,024.53 (vs 462.15 in Q2 FY2025)
Profit before tax: 1,988.46 (vs 14.79 in Q2 FY2025)
Tax expense: (151.76) (vs 9.41 in Q2 FY2025)
Net profit: 2,140.22 (vs 5.38 in Q2 FY2025)
Other comprehensive income: 43,095.57 (fair value gain on financial assets)
Total comprehensive income: 43,253.64 (vs (131.80) in Q2 FY2025)
EPS: ₹1.40 (vs ₹0.00 in Q2 FY2025)

Half-Yearly Performance (H1 FY2026 vs H1 FY2025):

Revenue from operations: 1,010.75 (vs 437.02 in H1 FY2025)
Other income: 3,499.26 (vs 518.15 in H1 FY2025)
Total income: 4,510.01 (vs 955.17 in H1 FY2025)
Total expenses: 2,318.65 (vs 872.51 in H1 FY2025)
Profit before tax: 2,191.36 (vs 82.66 in H1 FY2025)
Tax expense: (107.33) (vs 27.31 in H1 FY2025)
Net profit: 2,298.69 (vs 55.35 in H1 FY2025)
Total comprehensive income: 43,411.04 (vs (81.47) in H1 FY2025)
EPS: ₹1.51 (vs ₹0.04 in H1 FY2025)

Key Financial Figures - Consolidated (Rs. in lakhs)

Quarterly Performance (Q2 FY2026):

Revenue from operations: 1,663.55 (Outright Sales)
Other income: 387.57
Total income: 2,051.12
Total expenses: 2,462.14
Loss before tax from continuing operations: (411.02)
Share of loss from joint ventures: (82.86)
Loss before exceptional item: (493.88)
Exceptional item (write-off): 1,778.77
Loss before tax from continuing operations: (2,272.65)
Profit before tax from discontinued operations: 314.72
Exceptional gain on divestment: 61,514.49
Tax expense: 890.96 (continuing) + 2,021.68 (discontinued)
Net profit: 56,643.92
EPS from continuing operations: (₹2.07)
EPS from discontinued operations: ₹39.19
Total EPS: ₹37.13

Half-Yearly Performance (H1 FY2026):

Revenue from operations: 3,187.79 (Outright Sales)
Other income: 439.00
Total income: 3,626.79
Total expenses: 4,741.47
Loss before tax from continuing operations: (1,114.68)
Share of loss from joint ventures: (61.91)
Loss before exceptional item: (1,176.59)
Exceptional item (write-off): 1,778.77
Loss before tax from continuing operations: (2,955.36)
Profit before tax from discontinued operations: 1,389.81
Exceptional gain on divestment: 61,514.49
Tax expense: 891.81 (continuing) + 2,282.73 (discontinued)
Net profit: 56,774.40
EPS from continuing operations: (₹2.51)
EPS from discontinued operations: ₹39.73
Total EPS: ₹37.22

Significant Events and Transactions

Subsidiary Divestment:

On April 28, 2026, the Board approved the sale of the company's entire shareholding in three subsidiaries (Kruti Realtors and Developers Private Limited, Alliance Mall Developers Co. Private Limited, and Empire Mall Private Limited) to Inorbit Malls (India) Private Limited. Shareholders approved the transaction via postal ballot on May 29, 2026. The transaction was completed on August 24, 2026, with the divested subsidiaries ceasing to be subsidiaries from that date.

Base consideration: ₹1,24,250.00 lakhs

Amount received on completion: ₹66,990.63 lakhs (net of adjustments)

Fair value of further consideration receivable: ₹2,815.00 lakhs

Gain on sale of investments: ₹5,175.10 lakhs (included in Other Comprehensive Income)

Non-mall assets were excluded from the sale and are being transferred to Prozone Horizons Private Limited and Hagwood Commercial Developers Private Limited. Control of these assets passed to the transferees on August 24, 2026, under interim agreements.

Legal Matter - Airport Authority of India (AAI):

Hagwood Commercial Developers Private Limited (subsidiary) is contesting cancellation and seeking revalidation of the original No Objection Certificate from AAI, Nagpur regarding maximum permissible height of four towers at its Nagpur residential project. The matter involves:

Original NOC obtained in March 2012 permitting construction up to 48 meters
NOC arbitrarily cancelled by AAI in August 2017
Multiple legal proceedings, including writ petitions to Bombay High Court
Honorable High Court order dated July 08, 2025, quashing rejection order and directing AAI to conduct aeronautical studies
AAI filed Special Leave Petition before Supreme Court on August 07, 2026, which issued stay on High Court order on August 21, 2026

Management believes chances of revalidation are high. No adjustments made to carrying value of inventory (₹6,818.25 lakhs for floors 12-14 of four towers) and no provision for expected demolition cost, rehabilitation cost, or interest payable to customers.

Capital Reduction Approval:

Board gave in-principle approval for capital reduction of Prozone Liberty International Limited, Singapore (wholly owned subsidiary) in accordance with Singapore law. Expected to be completed during current financial year.

Management Remuneration Matter:

Following MCA Order dated September 10, 2024, disallowing reappointment of Mr. Salil Chaturvedi as Deputy Managing Director, shareholders on September 6, 2026, approved waiver of recovery of remuneration amounting to ₹512.37 lakhs paid during his tenure. Salary advance of ₹169.63 lakhs is yet to be refunded.

Asset and Liability Position (Standalone as at September 30, 2026)

Total assets: ₹1,75,464.38 lakhs (vs ₹1,64,347.64 lakhs as at March 31, 2026)
Total equity: ₹1,59,684.95 lakhs (vs ₹1,16,273.91 lakhs as at March 31, 2026)
Investments: ₹96,894.85 lakhs (non-current) + ₹64,867.99 lakhs (current)
Loans: ₹3,902.00 lakhs (non-current) + ₹3,906.74 lakhs (current)

Cash Flow (Standalone H1 FY2026)

Net cash used in operating activities: (₹169.83) lakhs
Net cash from investing activities: ₹33,078.43 lakhs
Net cash used in financing activities: (₹32,962.74) lakhs
Net decrease in cash: (₹54.14) lakhs

Segment Information

Business segments identified: Outright Sales (continuing operations) and Leasing (discontinued operations).