Narendra Properties PAT up 114% in FY26; ₹1 dividend recommended
- PAT surged 114% YoY to ₹197.32 lakh in FY26, driven by higher other income
- Revenue from operations fell 13% to ₹637.84 lakh due to lower sales
- Board recommends ₹1 per share dividend (10% of face value) for FY26
- AGM scheduled for September 29, 2026, to approve financials and director reappointments
- Cash reserves increased five-fold to ₹106.33 lakh as inventories declined
*this image is generated using AI for illustrative purposes only.
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.
| Metric | FY26 (₹ lakh) | FY25 (₹ lakh) | Change |
|---|---|---|---|
| Revenue from Operations | 637.84 | 736.09 | -13.3% |
| Other Income | 350.84 | 166.18 | +111.1% |
| Total Income | 988.68 | 902.27 | +9.6% |
| Profit After Tax | 197.32 | 92.35 | +113.7% |
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.
Historical Stock Returns for Narendra Properties
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.52% | -12.52% | -14.50% | -9.09% | -22.62% | +48.06% |
How sustainable is the 114% profit growth given that core operating revenue declined by 13.3%, and what strategies are in place to reverse the trend in construction sales?
With the board seeking authorization for investments and loans up to ₹50 crore, what specific projects or assets is Narendra Properties planning to acquire or develop?
Given the sharp rise in cash equivalents to ₹106.33 lakh and a debt-free status, will the company prioritize debt repayment, expansion, or increasing dividend payouts in the near term?
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