BSE: 531694
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. AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. Real estate development and sale. Asset-heavy, highly geared residential and commercial real estate developer
Exhibit 1: Financial summary, FY26–FY26 (all audited; no estimate years)
| ₹ crore · consolidated | FY26 |
|---|---|
| Revenue | 167 |
| EBITDA (ex other income) | 47 |
| margin % | 28.1 |
| Owners' profit | 0 |
| EPS, as reported (₹) | 1.43 |
| ROE % · ROCE % | 8.1 · 20.8 |
| Debt / equity (x) | 5.50 |
| Cash from operations | (24) |
| Capex | (0) |
Exhibit 2: Quarterly performance, last 1 quarters
| ₹ crore | Q4 FY26 |
|---|---|
| Revenue | 43 |
| Profit before tax | 6 |
| Net profit | 4 |
| EPS (₹) | 0.79 |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| KESAR INDIA LIMITED | 3,089 | 82.0 | 12.40 | 67.0 | 12.0 | 15.2 | — | 26.9 |
| MEGHNA INFRACON INFRA L | 1,460 | 215.4 | 54.28 | 143.3 | 20.8 | 33.9 | — | 15.3 |
| India Homes Limited | 1,015 | — | 27.41 | — | (31.0) | (17.8) | — | — |
| B-RIGHT REALESTATE LIMITED | 954 | 26.6 | — | — | — | 19.2 | — | — |
| SHRADDHA PRIME PROJECTS L | 666 | 11.9 | 4.88 | 11.3 | 39.1 | 20.2 | — | 16.1 |
| YOGI LTD. | 656 | 31.5 | 4.61 | 25.6 | 14.9 | 15.6 | — | 5.1 |
| HAZOOR MULTI PROJECTS LTD | 409 | 5.5 | 0.66 | 3.1 | 6.8 | 5.8 | — | 86.5 |
| RDB INFRASTRUCTURE AND POWER L | 340 | 17.3 | 1.28 | 21.5 | 4.7 | 5.7 | 16.3 | 23.7 |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 38.6 | 17.4 | 43 of 61 | 30% |
| P/B | 1.7 | 1.1 | 45 of 70 | 36% |
| ROCE | 4.5 | 1.9 | 29 of 88 | 68% |
| ROE | 8.2 | 1.6 | 15 of 73 | 81% |
| Debt / Equity | 5.5 | 0.3 | 71 of 73 | 3% |
| EBITDA margin | 37.8 | 15.3 | 18 of 59 | 71% |
| Market cap | 151 | 30 | 18 of 88 | 81% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 14 Oct 2026 · Routine compliance filing for share dematerialization for Q2 FY26 | compliance | minimal | — | — |
| 1 Oct 2026 · Trading window closed for Q2 FY27 results period | compliance | minimal | — | — |
| 30 Sept 2026 · Nitesh Jain appointed ED and CFO; Varsha Paun joins as Independent Director | management changes | high | — | — |
| 30 Sept 2026 · All 9 resolutions passed at Rainbow Foundations 32nd AGM | board shareholder meetings | low | — | — |
| 30 Sept 2026 · AGM approves results, new ED and CFO appointment and director remuneration | management changes | high | — | — |
| 30 Sept 2026 · 32nd AGM held; 9 resolutions passed including director appointments and remuneration | board shareholder meetings | low | — | — |
| 19 Sept 2026 · Board meeting scheduled for 21 September 2026 | board shareholder meetings | low | — | — |
| 9 Sept 2026 · 32nd AGM notice and e-voting details published in newspapers | compliance | minimal | — | — |
| 8 Sept 2026 · Rainbow Foundations submits FY26 Annual Report; 32nd AGM on Sept 30 via VC | compliance | minimal | — | — |
| 8 Sept 2026 · Newspaper notice of 32nd AGM via video conferencing on September 30, 2026 | compliance | minimal | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.