Prozone Realty Q2 FY27 results: net profit ₹567.74 crore vs ₹3.42 crore, revenue down 31.0%

How did Prozone Realty perform in Q2 FY27?

Prozone Realty's consolidated revenue for the July–September 2026 quarter was ₹31.88 crore, lower than ₹46.19 crore in the year-ago quarter and higher than ₹15.24 crore in Q1 FY27. Total income was ₹36.27 crore, down from ₹49.12 crore a year earlier and up from ₹15.76 crore in the previous quarter. EBITDA was ₹9.93 crore, with a margin of -31.1%, against ₹17.48 crore and 37.8% in Q2 FY26.

Profit before tax was a loss of ₹28.93 crore, compared with a profit of ₹5.67 crore in Q2 FY26 and a loss of ₹7.04 crore in Q1 FY27. Tax expense was ₹8.92 crore, and the company reported a net profit of ₹567.74 crore, with ₹567.92 crore attributable to owners. Basic EPS was ₹37.22, against ₹0.1 a year ago and ₹0.09 in the previous quarter.

What changed in Prozone Realty's costs and profit?

Total expenses rose ₹3.96 crore to ₹47.41 crore from ₹43.45 crore in Q2 FY26. Cost of materials was up ₹21.58 crore at ₹37.41 crore, employee cost was up ₹0.88 crore at ₹2.46 crore, while finance costs fell ₹5.07 crore to ₹3.76 crore and depreciation fell ₹4.07 crore to ₹1.84 crore. Other expenses fell ₹2.13 crore to ₹11.04 crore.

Other income rose ₹1.45 crore to ₹4.39 crore from ₹2.94 crore in the year-ago quarter, and tax expense was higher by ₹6.45 crore at ₹8.92 crore against ₹2.47 crore. The company recorded an exceptional item of ₹17.79 crore as a charge in Q2 FY27, while there was no exceptional item in Q2 FY26 or Q1 FY27.

Against the previous quarter, total expenses rose ₹24.62 crore, cost of materials rose ₹25.37 crore, other expenses rose ₹5.37 crore, finance costs rose ₹2.35 crore and depreciation rose ₹1.12 crore. Other income was up ₹3.88 crore and tax expense was up ₹8.91 crore. The filings did not state the reasons for the change in cost of materials.

What do the balance sheet and cash flow show?

Total assets stood at ₹1,435.44 crore at 30 September 2026, up from ₹1,418.28 crore at 31 March 2026. Total equity rose to ₹1,104.59 crore from ₹488.44 crore, while borrowings fell to ₹59.06 crore from ₹654.92 crore and cash declined to ₹20.37 crore from ₹71.29 crore.

Inventories increased to ₹409.88 crore from ₹402.28 crore, trade receivables fell to ₹5.66 crore from ₹16.45 crore, and trade payables rose to ₹25.19 crore from ₹18.86 crore. In H1 FY27, operating cash flow was ₹51.39 crore against ₹34.3 crore in H1 FY26, investing cash flow was ₹4.78 crore against -₹5.0 crore, and financing cash flow was -₹46.97 crore against -₹16.45 crore.

Capital expenditure in H1 FY27 was ₹1.04 crore, compared with ₹3.27 crore in H1 FY26. Management said the company ended the half with ₹6,669.1 mn of net cash, while the balance-sheet cash figure stood at ₹20.37 crore.

How has Prozone Realty done over the last 8 quarters?

Revenue over the last eight quarters moved between a low of ₹15.24 crore in Q1 FY27 and a high of ₹58.23 crore in Q3 FY26, with Q2 FY27 at ₹31.88 crore. Profit after tax reached a low of -₹52.95 crore in Q4 FY25 and a high of ₹567.74 crore in Q2 FY27, the latest quarter.

EBITDA margin peaked at 48.0% in Q1 FY26 and fell to 11.5% in Q4 FY25, before turning negative at -35.6% in Q1 FY27 and easing to -31.1% in Q2 FY27. Revenue in the latest quarter was higher than Q1 FY27 but remained below ₹52.57 crore recorded in Q4 FY26.

Which businesses drove the quarter?

Outright Sales from continuing operations reported revenue of ₹31.88 crore for Q2 FY27 and EBIT of -₹26.85 crore, an EBIT margin of -84.2%. No comparable revenue or EBIT figures for the year-ago quarter were given for this segment.

Leasing from discontinued operations reported revenue of ₹57.37 crore and EBIT of ₹629.04 crore, an EBIT margin of 1096.5%. The segment note referred to in the filing relates to the mall disposal, and no prior-year segment comparison was provided.

What else did the company announce?

Prozone Realty filed with the exchanges on 5 November 2026 that Chief Financial Officer Anurag Garg had resigned with effect from the close of business hours on 30 November 2026. Garg said he was leaving to pursue other professional opportunities after an association of over 12 years, and the board had taken note of the resignation.

The company also informed the exchanges that independent director Dipa Hetal Hakani had resigned with effect from the end of 15 January 2027, citing other precommitments and professional engagements. The board had approved both resignations, and Hakani confirmed there was no other material reason. The company separately filed an investor communication titled 'Q2 FY27: mall sale boosts liquidity while residential sales continue'.

What did Prozone Realty's management say?

Management said the company completed the August 2026 sale of its Coimbatore and Chh. Sambhaji Nagar malls to the K Raheja group, shifting from a retail-annuity model to land monetisation and development-led growth. It said 351 homes were handed over in H1 FY27 and that ₹3,579 mn of ₹4,797 mn booked residential sales had been collected by 30 September 2026.

Management expects the hive-off of balance land to PRL next quarter, and said it would fund development and monetisation of land retained by the company while keeping a resilient capital structure with adequate liquidity headroom. It also said it would selectively add Mumbai projects that fit the development-led strategy.

Management said capital expenditure plans include transferring the retained Coimbatore and Chh. Sambhaji Nagar land parcels to PRL, with transfers in progress, developing four later-phase towers at Coimbatore and planning the future and residential parcels at Chh. Sambhaji Nagar. At Nagpur, it said it would pursue further 0.39 mn sq ft of development potential and 0.5 mn sq ft of retail space in an advanced stage of approvals.

Management identified risks including continuing operations remaining loss-making before the mall-disposal gain, ₹1,218 mn of booked sales remaining uncollected, 266 unsold units and plots in launched phases, and exposure to economic conditions, real-estate demand and pricing, regulatory approvals, construction costs and interest rates. It noted the presentation was internally inconsistent, with highlights showing Q2 PAT after minority interest of ₹5,677.44 mn while the annexure showed ₹5,665.57 mn for Q2.

How did Prozone Realty shares react?

The filing appeared after market hours, and the stock's price was 0.3% lower five minutes after it appeared, 0.4% lower after 15 minutes and 1.9% lower after 30 minutes, from a base price of ₹55.0 against a previous close of ₹54.13. The reaction-day close, next-day and five-day moves were not available, and the median move for the other real estate related services stocks on the reaction day was 1.0%.

Earlier results-day moves were mixed: the stock fell 4.4% on 29 May 2026, rose 5.5% on 7 February 2026, fell 2.0% on 12 November 2025 and rose 5.3% on 14 August 2025. It also moved 0.1% on 28 May 2025, fell 2.0% on 11 February 2025, moved 0.1% on 14 November 2024 and fell 3.8% on 13 August 2024.