Majestic Auto Limited , a prominent player in the real estate and management services sector, has announced its unaudited financial results for the quarter and half-year ended September 30, 2023, along with several significant corporate developments.

Financial Performance

The company reported a consolidated revenue from operations of ₹3,123.36 crore for the quarter ended September 30, 2023, compared to ₹1,463.00 crore in the same quarter last year, marking a substantial increase. The total income for the quarter stood at ₹2,782.82 crore, up from ₹2,476.12 crore in the corresponding quarter of the previous year.

Majestic Auto's profit before tax for Q2 2023 surged to ₹12,360.48 crore, a significant jump from ₹1,689.26 crore in Q2 2022. This exceptional increase was primarily due to the sale of its subsidiary, Emirates Technologies Private Limited.

Key Corporate Actions

Appointment of New Company Secretary

The company has appointed Mr. Nishant Sharma as the Company Secretary and Compliance Officer with immediate effect. Mr. Sharma, an Associate Member of the Institute of Company Secretaries of India (ICSI), brings experience in corporate secretarial matters, SEBI, MCA, RBI, and IRDA compliances.

Sale of Subsidiary

In a strategic move, Majestic Auto liquidated its entire investment in Emirates Technologies Private Limited. The company sold 1.60 crore equity shares at ₹122.50 per share, totaling ₹196.00 crore on September 4, 2023. This transaction resulted in Emirates Technologies ceasing to be a subsidiary of Majestic Auto.

Real Estate Transaction

The company received an advance payment of ₹8.00 crore from Cyrrus Manufacturing LLP during the quarter. This payment is part of a larger plot sale agreement worth ₹128.50 crore, involving plots situated at B-6, B-7, and B-9, Ecotech I Extension, Greater Noida.

Change in Registered Office

Majestic Auto has also changed its registered office address. The new address is 3rd Floor, 2A Mahindra Tower, District Centre, Bhikaji Cama Place, New Delhi-110066.

Board Meeting and Results Approval

The company's board of directors met on November 8, 2023, to review and approve these financial results. The meeting commenced at 1:00 PM and concluded at 03:00 PM.

Financial Highlights

These results reflect Majestic Auto's performance and strategic decisions in the real estate and management services sector. The company's move to divest its subsidiary may signal a shift in its operations.

Majestic Auto Limited, a prominent player in the automotive sector, has released its unaudited financial results for the second quarter of fiscal year 2026, ending September 30, 2025. The company's performance paints a mixed picture, with significant revenue growth offset by a net loss.

Financial Highlights

For the half-year period:

The company witnessed a substantial increase in revenue from operations, more than doubling year-over-year for the quarter. However, this growth was accompanied by a significant swing from profit to loss compared to the same quarter last year.

Key Developments

New Company Secretary

Majestic Auto has appointed Mr. Nishant Sharma as the Company Secretary and Compliance Officer with immediate effect.

Divestment of Subsidiary

The company has liquidated its entire investment in its subsidiary, Emirates Technologies Private Limited. This involved selling 1.60 crore equity shares at ₹122.50 per share, totaling ₹196 crore.

Leasing Agreement

Majestic Auto received an advance of ₹6.00 crore during the quarter as part of a plot leasing agreement with Cyrrus Manufacturing LLP.

Financial Analysis

Despite the robust top-line growth, the company's bottom line has been significantly impacted. The shift from a substantial profit in Q2 FY2025 to a loss in Q2 FY2026 suggests increased operational costs or one-time expenses that have affected profitability.

The half-yearly results show a similar trend, with strong revenue growth but a sharp decline in net profit. This indicates that while the company has been successful in expanding its operations, it faces challenges in maintaining profitability.

The divestment of Emirates Technologies Private Limited represents a significant strategic move, potentially aimed at streamlining operations or reallocating capital. The proceeds from this sale could provide Majestic Auto with additional liquidity for future investments or debt reduction.

The leasing agreement with Cyrrus Manufacturing LLP, resulting in a ₹6.00 crore advance, suggests that the company is exploring additional revenue streams, possibly to diversify its income sources.

Investors and stakeholders will likely be keen to see how Majestic Auto plans to address the profitability challenges while maintaining its revenue growth momentum in the coming quarters. The appointment of a new Company Secretary may also bring fresh perspectives to the company's compliance and corporate governance practices.