Kalpataru Limited , a prominent player in the Indian real estate sector, has disclosed impressive operational updates for the second quarter and first half of fiscal year 2026, showcasing strong year-over-year growth across key metrics.

Q2 FY26 Performance Highlights

The company's performance in the second quarter of FY26 demonstrated significant improvement:

Kalpataru Limited's pre-sales reached ₹1,329.00 crore in Q2 FY26, marking a substantial 19.00% increase from ₹1,117.00 crore in the same quarter of the previous fiscal year. Collections saw an even more impressive growth, surging by 37.00% to ₹1,162.00 crore compared to ₹849.00 crore in Q2 FY25.

H1 FY26 Performance Overview

The company's performance for the first half of FY26 showed even stronger growth:

For H1 FY26, Kalpataru Limited reported a remarkable 43.00% surge in pre-sales, reaching ₹2,577.00 crore compared to ₹1,799.00 crore in H1 FY25. Collections for the same period increased by 37.00%, rising to ₹2,308.00 crore from ₹1,687.00 crore in the previous year.

Key Takeaways

1. Consistent Growth: The company has demonstrated strong growth in both pre-sales and collections across quarterly and half-yearly periods.
2. Market Confidence: The significant increase in pre-sales may indicate growing market confidence in Kalpataru Limited's projects and offerings.
3. Improved Liquidity: The substantial rise in collections suggests improved cash flow management and potentially stronger financial health for the company.

It's important to note that these figures are provisional and subject to limited review, as stated by the company in its disclosure to the stock exchanges.

The robust performance in pre-sales and collections may reflect positively on Kalpataru Limited's market position and could potentially indicate a broader recovery or growth trend in the Indian real estate sector. However, investors and market watchers should await the full financial results for a comprehensive understanding of the company's performance.

Kalpataru Projects International Ltd , a prominent player in the infrastructure and real estate sector, is facing a significant tax challenge through its wholly-owned subsidiary, Azure Tree Lands Private Limited (ATLPL). The company has disclosed that ATLPL has received a substantial tax demand of ₹24.01 crore, raising concerns about potential financial implications for both the subsidiary and its parent company.

Tax Assessment Details

According to the latest disclosure made by Kalpataru under SEBI regulations, Azure Tree Lands Private Limited received an Assessment Order from the Income Tax Department. The order, issued under section 143(3) read with section 144B of the Income Tax Act, 1961, pertains to the income tax return filed for the Assessment Year 2023-24.

The tax authorities have made certain additions and disallowances to the returned income, resulting in a tax demand of ₹24.01 crore, which includes interest. Additionally, the Assessing Officer has issued a show cause notice for penalty under section 274 read with section 270A of the Income Tax Act, 1961.

Company's Response

ATLPL maintains that the tax demand is not justified and plans to contest the order. The company has stated that it is in the process of filing an appeal against the Assessment Order. This move indicates that ATLPL is confident in its tax position and is prepared to challenge the tax department's findings.

Potential Impact

While the full extent of the impact on Kalpataru Projects International Ltd is yet to be determined, the tax demand of ₹24.01 crore is significant enough to affect the subsidiary's financial position. This situation may, in turn, have repercussions on the parent company's overall financial performance.

The development underscores the ongoing challenges faced by companies in the real estate and infrastructure sectors, particularly in matters of tax compliance and assessments. It also highlights the importance of robust financial management and tax planning strategies for corporate entities and their subsidiaries.

As the situation unfolds, investors and stakeholders will be closely monitoring how Kalpataru Projects International Ltd and its subsidiary, Azure Tree Lands, navigate this tax challenge and its potential implications on their financial health and future operations.