RAINBOW FOUNDATIONS LTD.

Develops and sells residential and commercial real estate, based in Chennai. FY26 revenue from operations stood at ₹166.75 crore, with reported net profit of ₹18.60 crore. The business earns mainly through purchase and sale of stock-in-trade, with revenue growth in recent quarters attributed by management to higher purchase of stock-in-trade. In February 2026, it incorporated a wholly owned subsidiary, Rainbow Foundations and Real Estates Pvt Ltd, which has not yet commenced operations and is expected to cover building, property development, construction, contracting and real estate brokering. Direct operating expenses are small as a share of revenue (employee cost 0.9%, other opex 1.4%, depreciation 0.2%), because most property costs sit in inventory rather than flowing through the P&L. The dominant cost line is finance cost — interest expense of ₹3,720 lakhs in FY26, up about 28% year-on-year — driven by long-term borrowings of ₹14,012.34 lakhs (versus ₹228.03 lakhs a year earlier) and current borrowings of ₹57,584.30 lakhs at H1 FY26. The company also booked a one-time exceptional item of ₹69.59 lakhs for gratuity provisions under the new Labour Codes notified in November 2025, and reported deeply negative operating cash flows.