Grovy India Limited has completed the allotment of 41,69,433 equity shares at an issue price of ₹36 per share, raising an aggregate amount of ₹15,00,99,588 through a preferential issue. The Preferential Issue Committee of the Board of Directors approved the allotment during a meeting held on August 04, 2026. The shares were allotted to investors belonging to the "Promoter & Promoter Group" and "Public" categories. This transaction increases the company’s paid-up equity share capital to ₹17,50,57,050, comprising 1,75,05,705 equity shares with a face value of ₹10 each.

The allotment was executed in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Preferential Issue Committee convened on Tuesday, August 04, 2026, commencing at 03:00 PM and concluding at 04:30 PM. Simran Rajput, Company Secretary and Compliance Officer, signed the disclosure submitted to BSE Limited. The issuance involves cash consideration for equity shares of face value ₹10 each, priced at ₹36 per share.

Allotment Details

The shares were distributed among four promoter entities and fifteen public category investors. Promoter group members received a combined total of 16,66,664 shares, while public investors received 25,02,769 shares. Girish Gulati (HUF) was the largest single allottee in the public category, receiving 8,05,555 shares.

Capital Structure Impact

Following this preferential allotment, the total number of equity shares outstanding for Grovy India Limited stands at 1,75,05,705. The increase in share count reflects the addition of 41,69,433 new shares to the existing base. The face value of each share remains ₹10, while the issue price of ₹36 indicates a premium over face value for the new issuances. The total proceeds from the issue amount to ₹15,00,99,588, which will be credited to the company’s capital reserves upon finalization of the allotment process as per regulatory requirements.

Grovy India Limited reported a net profit of ₹190.11 lakh for the first quarter ended June 30, 2026, marking a 73% increase from ₹109.69 lakh in the corresponding period of the previous year. This significant profitability improvement was driven by a robust surge in revenue from operations, which rose to ₹2,749.93 lakh from ₹825.36 lakh in Q1FY26, primarily due to strong performance in its Realty Division. The growth underscores effective project execution and heightened demand in the construction sector during the period, offering shareholders a clear signal of operational scalability in premium residential markets.

The Board of Directors approved the unaudited financial results at a meeting held on July 23, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Ajay Rattan & Co., the statutory auditors, issued a limited review report stating that nothing came to their attention to suggest the financial statements contained material misstatements or failed to comply with Ind AS 34. The figures for the quarter ended March 31, 2026, are balancing figures between audited full-year figures and unaudited year-to-date figures up to December 31, 2025.

Financial Performance

Revenue from the sale of constructed properties and other development activities rose sharply to ₹2,749.93 lakh from ₹825.36 lakh in Q1FY26. Other income increased slightly to ₹8.50 lakh from ₹4.29 lakh in the prior year quarter. Total expenses stood at ₹2,504.38 lakh, compared to ₹682.60 lakh in Q1FY26, largely due to higher cost of land and constructed properties offset by changes in inventory. Profit before tax reached ₹254.05 lakh, up from ₹147.06 lakh.

Earnings per share (basic) were ₹1.43, up from ₹0.82 in Q1FY26. Total comprehensive income for the period was ₹199.06 lakh, including a net gain of ₹8.95 lakh from other comprehensive income items such as fair value changes in FVOCI equity instruments.

Segment-wise Results

The Realty Division contributed ₹2,749.93 lakh to segment revenue, compared to ₹825.36 lakh in Q1FY26. The division’s earnings before interest and tax (EBIT) were ₹292.71 lakh, up from ₹168.15 lakh in the previous year. The Trading of Securities segment recorded no revenue in Q1FY27, having generated ₹4.04 lakh in Q1FY26.

Segment assets for the Realty Division increased to ₹8,579.55 lakh from ₹5,275.58 lakh in Q1FY26, reflecting ongoing project investments. Total segment liabilities rose to ₹6,171.98 lakh from ₹3,234.34 lakh in the same period last year.

Strategic Outlook and Sequential Growth

According to the investor presentation released alongside the results, Grovy India delivered strong sequential performance in Q1FY27. Revenue grew 249.40% quarter-on-quarter (QoQ) from ₹789.48 lakh in Q4FY26, while Profit After Tax (PAT) rose 114.02% QoQ from ₹88.82 lakh. EBITDA grew 80.84% QoQ to ₹277.23 lakh. Annualized Return on Equity (ROE) improved to 7.59% (+3.74 percentage points QoQ), and annualized Return on Capital Employed (ROCE) improved to 4.86% (+1.69 percentage points QoQ).

Chairman PC Jalan highlighted strong demand in the South Delhi real estate market, describing it as a resilient premium residential market with strong long-term potential. The company noted its strategic collaboration with Golden Growth Fund and believes it is well-positioned to achieve a 2-3x increase in project development over the next few years. Three new premium residential projects totaling approximately 50,000 sq. ft were acquired in Q1FY27 across South Delhi.

What the Numbers Show

The significant rise in revenue and profit is almost entirely attributable to the Realty Division, which accounted for over 99% of total revenue. The increase in segment assets and liabilities suggests active project development and potential leverage usage to fund these initiatives. While trading activities remained dormant, the core construction business demonstrated substantial growth momentum in Q1FY27. The strong sequential growth in PAT and EBITDA, coupled with improved ROCE, indicates enhanced capital efficiency and operational scalability as the company executes its pipeline in high-value micro-markets like Greater Kailash, Hauz Khas, and Defence Colony.