Summary
Ganesh Housing Limited - Q3 FY26 Earnings Call Summary Monday, February 09, 2026 2:00 PM
Event Participants
Executives 3 B. Ravi (Corporate and Financial Advisor), Neeraj Kalawatia (Vice President, Finance), Rajendra Shah (Chief Financial Officer)
Analysts 5 Aaditya P. (Individual Investor), Arvind Mahadevan (Equiventure Capital Advisors), Bhargavi Patel (Avinash Mentor Research), Henil Bagadia (Equicorp), Krish Bhatia (Anand Rathi Shares and Stock Brokers Limited)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹92 crores | -81.3% YoY; decline due to timing of milestone-driven land monetization compared to high base in FY25. |
| EBITDA | ₹72 crores | -83.6% YoY; reflects reduced volumes in land sales during the quarter. |
| EBITDA Margin | 82.3% | Still higher than sector averages; driven by low-cost land bank and low operational overheads. |
| PAT | ₹54 crores | -81.3% YoY; tracking the decline in top-line revenue. |
| PAT Margin | 58.7% | Maintained strong profitability despite lower scale. |
| 9M FY26 Revenue | ₹417 crores | Cumulative performance remains execution-led following an exceptional FY25. |
| 9M FY26 PAT | ₹255 crores | Reflects inherent asset strength and disciplined capital allocation. |
| Net Debt | ₹0 (Debt-Free) | Company has remained debt-free for over 3 years, funded by internal accruals. |
Geographic & Segment Commentary
- Ahmedabad Market: The city remains India’s most affordable large market with an 18% EMI-to-income ratio. Management expects structural growth from GIFT City expansion, Metro Phase 2, and infrastructure preparation for the 2030 Commonwealth Games.
- Commercial (Million Minds): Phase 1 building is 100% complete (13.5 lakh sq. ft. total area) with a leasable carpet area of 7.25 lakh sq. ft. LOIs have been received for 4 lakh sq. ft. (60%) at rentals exceeding ₹100 per sq. ft., with full leasing expected by March 2026.
- Residential (Malabar Retreat): Premium residential project is 74% complete with structural work at 100%. Total sales value is projected at ₹450+ crores, with ₹155-₹160 crores (approx. 35-40%) already booked as of Q3 FY26.
Company-Specific & Strategic Commentary
- Land Monetization (Godhavi): Strategic monetization of the 400+ acre land bank continues; 38 acres sold to date (28 acres in current year) at an average realization of ₹14.5 crores per acre.
- Annuity Income Shift: Transitioning from a purely development/land model to include recurring revenue; Million Minds Phase 1 is expected to generate ~₹70 crores in annual lease income starting FY27.
- New Launches: “One 91 Thaltej,” a 2 million sq. ft. premium office/retail project, is awaiting final statutory approvals with a planned launch in March 2026.
- Regulatory Gains: Management anticipates being a major beneficiary of AUDA’s proposed FSI increase (from 4 to 4.5) in Western Ahmedabad transit zones where their land banks are concentrated.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| FY26 Revenue | Lower than FY25 | FY25 was an exceptional year for large land deals; FY26 is more transition-oriented towards project execution. |
| FY27 Revenue | Significant Growth | Driven by Malabar Retreat completions, Million Minds lease income, and One 91 Thaltej sales. |
| Million Minds Leasing | 100% by March 2026 | Based on current LOI pipeline and ongoing final negotiations for balance 40% area. |
| One 91 Thaltej Launch | March 2026 | Contingent on receiving statutory approvals expected within 30 days. |
Risks & Constraints
| Risk | Context |
|---|---|
| Revenue Volatility | Financials remain milestone-driven and “uneven” across quarters due to the timing of BU (Occupancy) certificates and land monetization deals. |
| Execution Timelines | Significant future revenue depends on the 3-4 year completion cycle of One 91 Thaltej and Million Minds Phase 2. |
| Market Timing | Management is “deliberately slow” on certain land sales in Godhavi to wait for better price discovery linked to Commonwealth Games 2030 infrastructure. |
Q&A Highlights
Godhavi Land Monetization
- Question: How much land is left to monetize in the current phase? (Arvind Mahadevan)
- Answer: Out of the initial 50-acre target, 38 acres are done, leaving 12 acres. However, the total Godhavi bank is ~418 acres, allowing for much larger future monetization (B. Ravi).
Margin Sustainability
- Question: Will margins drop to 30% when shifting from land sales to project sales? (Janak Shah)
- Answer: Developer margins have historically been higher than 30-40%. While not 80% like land, the future blend of high-margin development and low-cost land monetization will keep margins robust (B. Ravi).
Cash Flow & Financing
- Question: How will the company fund multiple large projects like One 91 Thaltej and Million Minds Phase 2? (Henil Bagadia)
- Answer: The company is debt-free with strong internal accruals. Management can also utilize Lease Rental Discounting (LRD) on the 95% tied-up Million Minds Phase 1 to boost liquidity without corporate debt stress (Neeraj Kalawatia).
Competition with GIFT City
- Question: Will GIFT City attract IT tenants away from Million Minds? (Krish Bhatia)
- Answer: GIFT City focuses on financial services and tax-holiday-driven entities, whereas Million Minds is a pure IT/ITeS play. The two are complementary, positioning Ahmedabad as a dual-hub for finance and technology (B. Ravi).
Key Takeaway
Ganesh Housing reported a transitionary Q3 FY26, with revenue of ₹92 crores and PAT of ₹54 crores representing a decline from the high-base, land-monetization-heavy FY25. Despite the lower YoY numbers, the company maintained an exceptional EBITDA margin of 82.3% and remains debt-free. Strategically, the firm is pivoting toward a balanced model of land monetization, residential sales (Malabar Retreat is 74% complete), and stable annuity income, with Million Minds Phase 1 expected to generate ₹70 crores in lease rentals starting FY27. Management is deliberately timing land sales in the 418-acre Godhavi tract to capitalize on infrastructure appreciation from the 2030 Commonwealth Games. Looking ahead, the launch of the 2-million sq. ft. “One 91 Thaltej” project in March 2026 and the commencement of rental income mark a shift toward more predictable, high-value earnings in FY27.
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