Garnet Construction reported a standalone net loss of ₹103.8 lakh for the quarter ended June 30, 2026, marking a sharp reversal from the net profit of ₹1,821.1 lakh recorded in the corresponding quarter of FY25. The company’s revenue from operations turned negative, registering at -₹12.9 lakh, compared to ₹4,039.0 lakh in Q1FY25.

The Board of Directors approved the unaudited financial results on August 14, 2026. The figures were reviewed by statutory auditors Shankarlal Jain & Associates LLP pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

Total income for the quarter declined to -₹11.9 lakh from ₹4,043.3 lakh in the previous year. Other income contributed ₹1.0 lakh, down from ₹4.3 lakh in Q1FY25. Total expenses amounted to ₹95.3 lakh, a significant reduction from ₹1,602.4 lakh in the prior year period.

Operating costs stood at ₹114.9 lakh, down from ₹397.2 lakh in Q1FY25. Employee benefit expenses decreased to ₹54.8 lakh from ₹75.4 lakh. Finance costs rose slightly to ₹18.1 lakh from ₹16.4 lakh. Depreciation and amortization expenses increased to ₹15.5 lakh from ₹10.2 lakh.

What the Numbers Show

The negative revenue figure is primarily driven by a change in inventories of -₹202.3 lakh, contrasting with an increase of ₹1,059.8 lakh in the prior year. This inventory adjustment outweighs the operating costs and other expenses, leading to the negative top line and subsequent net loss. The company operates in a single segment: Real Estate Development.

Auditor Review

Shankarlal Jain & Associates LLP conducted a limited review of the interim financial information. The auditors stated that nothing came to their attention to cause them to believe that the statement has not disclosed the required information or contains material misstatement. The review was performed in accordance with Standard on Review Engagement (SRE) 2410 issued by the Institute of Chartered Accountants of India.

Garnet Construction reported a significant surge in financial performance for the financial year ended March 31, 2026, with net profit rising to ₹3,948.06 lakh. This marks a substantial increase from the ₹740.59 lakh net profit recorded in the previous year. Revenue from operations grew to ₹8,282.41 lakh, driven primarily by the company's real estate development activities, compared to ₹1,609.09 lakh in FY25.

The Board of Directors approved the audited standalone financial results at its meeting held on May 30, 2026. The statutory auditors, Shankarlal Jain & Associates LLP, reviewed the results and issued an unmodified audit opinion, confirming compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The financial statements are prepared in accordance with Indian Accounting Standards (Ind AS) prescribed under the Companies Act, 2013.

Total income for the year stood at ₹8,633.01 lakh, up from ₹1,941.19 lakh in the prior year. The company reported a profit before tax of ₹5,283.47 lakh for FY26, compared to ₹990.04 lakh in FY25. Total expenses for the period were ₹3,349.54 lakh, an increase from ₹951.15 lakh in the previous year. The company noted that due to the nature of the real estate business, profits do not necessarily accrue evenly over the period.

Financial Performance

The company's earnings per share (EPS) on a basic and diluted basis increased to ₹28.39 for FY26, up from ₹5.31 in the previous year. For the quarter ended March 31, 2026, the net profit was ₹472.31 lakh, with revenue from operations at ₹1,039.59 lakh. The company follows Ind AS 115 for revenue recognition, recognizing revenue on the delivery of units to customers.

Balance Sheet Highlights

The total assets of the company increased to ₹21,502.68 lakh as of March 31, 2026, from ₹17,552.17 lakh in the previous year. Equity share capital remained constant at ₹1,390.22 lakh, while other equity rose to ₹12,846.35 lakh from ₹8,899.46 lakh. Total liabilities stood at ₹7,266.12 lakh, slightly higher than the ₹7,262.49 lakh reported in the prior year.

Current assets, including inventories and trade receivables, constituted a significant portion of the balance sheet. Inventories decreased to ₹5,370.22 lakh from ₹6,500.07 lakh, while trade receivables increased substantially to ₹6,812.85 lakh from ₹2,953.91 lakh. Cash and cash equivalents improved to ₹13.81 lakh from ₹6.48 lakh at the end of the previous financial year.