Narendra Properties reported a Profit After Tax (PAT) of ₹197.32 lakh for the financial year ended March 31, 2026, marking a significant increase from ₹92.35 lakh in the previous year.

The Chennai-based real estate developer also recorded a total income of ₹988.68 lakh, up from ₹902.27 lakh in FY25. The company attributed this improved profitability to focused project execution, monetization of completed inventory, and prudent cost management.

Financial Performance Overview

The company's financial results for FY26 reflect strong bottom-line growth despite moderate top-line expansion. The following table summarizes the key financial metrics:

Dividend Declaration

The Board of Directors has proposed a dividend of ₹1 per equity share (face value ₹10), representing a 10% payout ratio. This resolution was placed before members at the 31st Annual General Meeting (AGM) held on September 29, 2026, for approval.

Market Outlook and Business Environment

During the AGM, Chairman Mahendra K Maher highlighted that the Indian real estate sector remained resilient in FY26, supported by urbanization and infrastructure development. Chennai specifically offered encouraging opportunities driven by investments in technology, manufacturing, and Global Capability Centres.

However, the management noted challenges such as rising construction and financing costs. Consequently, the company maintains a cautious outlook, focusing on selective project launches with disciplined capital deployment to ensure sustainable growth.

What the Numbers Show

A significant divergence exists between revenue growth and profit growth. While total income expanded by approximately 9.6%, the PAT more than doubled, rising by over 113%. This suggests substantial margin expansion or effective cost control measures during the period, as profit growth significantly outpaced revenue growth.

Governance Updates

The AGM addressed several governance matters through ordinary and special resolutions:

• Reappointment of Mr. Nishank Sakariya as a director retiring by rotation.
• Reappointment of Ms. Kavita Patel as an Independent Director for a second five-year term ending December 26, 2031.
• Authorization for investments, loans, guarantees, or securities under Section 186 of the Companies Act, 2013.

The statutory auditors, M/s Sanjiv Shah & Associates LLP, issued an unmodified report on the financial statements for FY26.

Narendra Properties reported a 114% year-on-year increase in profit after tax (PAT) to ₹197.32 lakh for FY26, driven primarily by a surge in other income. The company’s total income rose 10% to ₹988.68 lakh, while operating revenue from sales declined 13% to ₹637.84 lakh.

The board of directors has recommended a final dividend of ₹1 per equity share of face value ₹10 each, constituting 10% of the fully paid-up value. This payout is subject to shareholder approval at the 31st Annual General Meeting (AGM) scheduled for September 29, 2026.

Financial Performance

The company’s financial results for the year ended March 31, 2026, reflect a significant shift in income composition. While revenue from operations fell, other income more than doubled, offsetting the decline in core sales.

Other income for FY26 included interest income of ₹345.48 lakh and rental income of ₹2.25 lakh. In contrast, interest income in FY25 stood at ₹166.17 lakh. Total expenses decreased by 7% to ₹723.47 lakh from ₹778.73 lakh in the previous year, aided by lower cost of development which fell to ₹206.47 lakh from ₹329.54 lakh.

What the Numbers Show

The profitability surge is heavily dependent on non-operating gains. Other income accounted for 35.5% of total income in FY26, up from 18.4% in FY25. Consequently, while operational revenue contracted, the bottom line expanded significantly due to higher interest accruals and other non-recurring items such as liabilities written off (₹3.11 lakh). This divergence highlights a reliance on financial assets rather than core construction sales for current period profits.

AGM and Corporate Actions

The 31st AGM will be held via video conferencing on September 29, 2026, at 9:00 am. Key agenda items include:

• Adoption of audited financial statements for FY26.
• Declaration of the ₹1 per share dividend.
• Reappointment of Mr. Nishank Sakariya as a director retiring by rotation.
• Reappointment of Ms. Kavita Patel as an Independent Director for a second term (2026–2031).
• Approval of remuneration for Mr. Nishank Sakariya as a consultant (up to ₹2.5 lakh per month for Jan–Dec 2027).
• Authorization for investments/loans/guarantees up to ₹50 crore under Section 186 of the Companies Act, 2013.

Remote e-voting will be facilitated by Central Depository Services (India) Limited (CDSL). The voting window opens on September 26, 2026, at 10:00 am and closes on September 28, 2026, at 5:00 pm. Shareholders must hold shares as on the cut-off date of September 22, 2026, to vote. Eligible shareholders for the dividend are those recorded as on September 18, 2026.

Balance Sheet Highlights

As of March 31, 2026, the company reported total assets of ₹3,907.53 lakh, an increase from ₹3,792.76 lakh in FY25. Cash and cash equivalents rose sharply to ₹106.33 lakh from ₹18.43 lakh. Inventories (construction work-in-progress) decreased to ₹1,058.19 lakh from ₹1,415.13 lakh, indicating progress in project completion or sales recognition. The company has no outstanding term loans and maintains a debt-free balance sheet with respect to bank borrowings.