Why Did Ajmera Realty's Q2 Profit Decline by 14%?
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Synopsis
Ajmera Realty and Infra faces a significant setback as their Q2 FY26 profit sees a 14% drop. Despite increased revenue and successful project launches, the decline raises questions about future strategies. Dive into the details of their financial performance and upcoming initiatives.
Key Takeaways
- Q2 FY26 profit of Ajmera Realty fell by **14%** to **Rs 30.37 crore**.
- Operational revenue increased by **10% YoY** to **Rs 219 crore**.
- Debt-to-equity ratio is strong at **0.55 times**.
- Two major projects launched with a combined GDV of **Rs 2,100 crore**.
- Future projects in **Wadala** projected to exceed **Rs 12,000 crore** in sales.
Mumbai, Nov 6 (NationPress) Ajmera Realty and Infra announced a year-on-year (YoY) decline of over 14% in its consolidated net profit for the second quarter of this fiscal year (Q2 FY26), amounting to Rs 30.37 crore. In the corresponding quarter last year (Q2 FY25), the firm had reported a profit of Rs 35.35 crore.
The company’s operational revenue for the quarter was recorded at Rs 219 crore, reflecting a 10% YoY increase from Rs 199.9 crore. However, there was a 15% decline from Rs 258.4 crore sequentially, with net profit dropping by 21% from Rs 38.28 crore in the previous quarter (Q1 FY26).
Ajmera Realty's total expenditure for Q2 FY26 decreased by Rs 6.85 crore YoY, coming down from Rs 94.44 crore, and by over Rs 27 crore QoQ from Rs 114.79 crore.
In the first half of FY26 (H1 FY26), the company’s revenue increased by 20% YoY, reaching Rs 480.55 crore, up from Rs 400 crore during the same period last year.
“The performance in Q2 and H1FY26 underscores our commitment to disciplined growth, timely execution, and careful financial management. We successfully launched two significant projects — Ajmera Manhattan 2 and Thirty3.15, boasting a combined GDV of Rs 2,100 crore, both of which have garnered positive market feedback,” stated Dhaval Ajmera, Director - Corporate Affairs.
“Our balance sheet remains strong, with a healthy debt-to-equity ratio of 0.55 times, bolstered by solid sales momentum and effective collections, leading to a well-structured debt framework,” he added.
“With a robust project pipeline valued at Rs 4,357 crore across seven projects and strong demand visibility, we are dedicated to sustaining this growth through strategic launches, a solid pipeline, operational excellence, and a balanced financial approach,” Ajmera further commented.
As per the company’s exchange filing, the development potential in Wadala looks promising, with a projected topline sales value exceeding Rs 12,000 crore.
“In H2FY26, we aim to introduce a boutique office space covering over 6 lakh sq. ft with an estimated GDV of Rs 1800 crore,” added Dhaval Ajmera.
Point of View
Ajmera Realty's reported decline in profit is noteworthy, yet it reflects broader market dynamics in the real estate sector. As the company continues to navigate these challenges, its strategic focus on growth and project development will be crucial for maintaining investor confidence and market presence.
NationPress
06/11/2025
Frequently Asked Questions
What caused Ajmera Realty's profit decline?
The decline in Ajmera Realty's profit is attributed to various factors, including higher operational costs and market conditions impacting revenue.
What are Ajmera Realty's upcoming projects?
Ajmera Realty plans to launch several projects, including a boutique office space and two major residential developments.
How has Ajmera Realty's revenue changed?
Ajmera Realty reported a **10% increase** in operational revenue YoY, despite the profit decline.
What is Ajmera Realty's debt-to-equity ratio?
The company's debt-to-equity ratio stands at **0.55 times**, indicating a healthy financial structure.
What is the outlook for Ajmera Realty in Wadala?
The outlook for Ajmera Realty's projects in Wadala is robust, with a projected topline sales value exceeding **Rs 12,000 crore**.
