Prozone Realty Limited, a prominent player in the real estate sector, has announced robust financial results for the first quarter, along with plans to expand its business through the incorporation of two new wholly-owned subsidiaries.

Financial Highlights

The company's consolidated financial results for Q1 show significant improvement compared to the same period last year:

• Total income from operations surged to Rs 3,823.52 crore, up 18.80% from Rs 3,219.19 crore in the previous year's Q1.
• Net profit after tax turned positive at Rs 378.26 crore, compared to a loss of Rs 568.50 crore in the corresponding quarter last year.
• Earnings per share (EPS) improved to Rs 0.05, up from a loss of Rs 0.30 per share in the same quarter last year.

Segment Performance

Prozone Realty's business segments showed mixed results:

New Subsidiaries

In a strategic move to expand its operations, Prozone Realty's Board of Directors has approved the incorporation of two wholly-owned subsidiaries:

1. Prozone Dream Realtors Pvt Ltd
2. Prozone Horizons Pvt Ltd

Both entities will focus on the construction and real estate sectors, with Prozone Realty holding 100% shareholding in each company. The incorporation is subject to approval from the Ministry of Corporate Affairs.

Investment Details

• Prozone Realty will invest Rs 1,00,000 in each subsidiary for 10,000 equity shares at a par value of Rs 10 per share.
• The company stated that no additional sectoral approvals are required from government or regulatory bodies for these incorporations.

Management Commentary

Nikhil Chaturvedi, Managing Director of Prozone Realty Limited, commented on the results, stating, "Our Q1 performance demonstrates the resilience and growth potential of our business model. The significant improvement in our financial metrics, particularly the turnaround to profitability, is encouraging. The decision to incorporate two new subsidiaries aligns with our strategy to strengthen our presence in the real estate sector and capitalize on emerging opportunities."

Outlook

With a strong start and plans for expansion through new subsidiaries, Prozone Realty appears well-positioned for growth. The company's focus on both leasing and outright sales segments, coupled with its strategic initiatives, suggests a positive outlook for the future.

Investors and stakeholders will be watching closely to see how these new subsidiaries contribute to the company's overall performance and whether the positive momentum in financial results can be sustained.

Prozone Realty Limited (formerly Prozone Intu Properties Limited) has announced its financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company reported a consolidated net profit amidst ongoing challenges with its Nagpur residential project.

Financial Highlights

For Q1 FY26, Prozone Realty reported:

The company's revenue streams were primarily divided between leasing (Rs. 3,082.42 crore) and outright sales (Rs. 741.10 crore).

Segment Performance

Prozone Realty's business is segmented into two main categories:

1. Leasing: This segment showed strong performance with a profit before tax and interest of Rs. 1,700.00 crore.
2. Outright Sales: This segment reported a loss of Rs. 213.55 crore before tax and interest.

Nagpur Project Update

Hagwood Commercial Developers Private Limited, a subsidiary of Prozone Realty, is facing ongoing challenges with its residential project in Nagpur. The project has been embroiled in a dispute over aviation clearance:

• The subsidiary is contesting the cancellation of its No Objection Certificate (NOC) by the Airport Authority of India, Nagpur (AAIN).
• The Bombay High Court at Nagpur has directed the Airport Authority of India (AAI) to conduct fresh aeronautical and CNS simulation studies within six months.
• As of June 30, 2025, occupancy certificates have been received for 242 out of 264 flats up to the 11th floor, with possession handed over for 193 units.
• The company maintains that no adjustments are necessary to the inventory value of the 12th to 14th floors, which amounts to Rs. 6,818.25 crore.

Management Changes

The company faced a setback regarding its leadership:

• The Ministry of Corporate Affairs rejected Prozone Realty's application for the re-appointment of its Deputy Managing Director.
• In compliance with the order, the director's designation was changed to Non-Executive Director.
• The company is evaluating legal options and determining a course of action regarding Rs. 682.00 crore in remuneration and salary advances paid to the director since February 27, 2020.

Outlook

While Prozone Realty has shown profitability this quarter, the ongoing issues with the Nagpur project and management changes present challenges. The company's performance in the coming quarters may be influenced by the resolution of these matters, particularly the outcome of the aviation clearance studies for the Nagpur residential project.