Valor Estate , formerly known as D B Realty Limited, has reported a stellar performance for the first quarter, marking a significant turnaround in its operations. The company's financial results, released on August 14, showcase robust growth and strategic developments.

Record-Breaking Revenue

Valor Estate delivered an unprecedented quarterly revenue of ₹840.33 crore, representing a staggering 123-fold increase compared to ₹6.79 crore in the same quarter of the previous year. This remarkable surge was primarily driven by the company's 'Ten BKC' project, which contributed ₹836.36 crore following the receipt of a partial occupancy certificate.

Profitability and Financial Highlights

• EBITDA rose 8-fold to ₹45.00 crore, up from ₹5.00 crore in the same quarter last year.
• The company reported a profit after tax of ₹12.51 crore.
• Earnings per share (EPS) for the quarter stood at ₹0.23.

Strategic Developments

Hospitality Business Demerger

Valor Estate completed the demerger of its hospitality business, with NCLT approval received on June 18. As part of this process, 5.39 crore Advent Hotels International shares were allotted to Valor shareholders. The hospitality segment generated ₹80.43 crore in revenue with an EBITDA of ₹25.11 crore for the quarter.

Project Advances and Debt Management

The company received a significant project advance of ₹700.00 crore for its Malad East PAP project development. Valor Estate maintains a conservative debt-to-equity ratio of 0.21:1 in its real estate operations, positioning it as one of the least leveraged companies in the sector.

Management Commentary

Vinod Goenka, Chairman and Managing Director, commented on the results: "Our development strategy remains anchored on asset-light execution and collaborative partnerships, with a focus on delivering long-term value to our shareholders."

Shahid Balwa, Vice Chairman and Managing Director, added: "We remain focused on monetising our extensive land reserves and forging strategic partnerships to accelerate the scale-up of brownfield developments."

Corporate Governance and Leadership

The Board of Directors has approved the re-appointment of Vinod K. Goenka as Executive Chairman cum Managing Director for a three-year term starting September 1, subject to shareholder approval.

Employee Stock Option Plan

The company's Nomination & Remuneration Committee has approved the grant of 10,00,000 stock options to eligible employees under the 'Valor Estate Limited - Employee Stock Option Plan 2024' at an exercise price of ₹90.00 per option.

Valor Estate Limited continues to demonstrate strong growth potential in the real estate sector, with its strategic initiatives and robust financial performance positioning it for sustained success in the coming quarters.

Valor Estate Limited (VEL), formerly known as D B Realty Limited, has provided shareholders with crucial guidance on apportioning acquisition costs for equity shares following the demerger of its hospitality business into Advent Hotels International Limited (AHIL). This move comes in the wake of a significant corporate restructuring sanctioned by the National Company Law Tribunal.

Demerger Details

The composite scheme of amalgamation and arrangement, which became effective on July 1, 2025, involves the demerger, transfer, and vesting of VEL's hotel business into AHIL on a going concern basis. Under this arrangement, shareholders received 1 AHIL share for every 10 VEL shares held as of the record date, July 18, 2025.

Cost Apportionment Guidance

VEL has advised shareholders to apportion their original acquisition costs as follows:

• 81.47% attributed to VEL shares
• 18.53% attributed to AHIL shares

To illustrate this apportionment, the company provided an example:

Tax Implications

The scheme qualifies under the provisions of the Income Tax Act, 1961. Key points for shareholders to note include:

• The allotment of AHIL shares is not considered a transfer under Section 47(vid) of the Act.
• As per Explanation 1(i)(g) to Section 2(42A), the original acquisition date of VEL shares will be treated as the acquisition date for AHIL shares.

Shareholder Advisory

Jignesh Shah, Company Secretary of Valor Estate Limited, emphasized that this communication is intended solely for general guidance. Shareholders are strongly advised to consult their own tax advisors to understand the specific implications in their individual cases. The company has explicitly stated that it assumes no express or implied liability in relation to this guidance.

VEL has submitted this information to both the BSE Limited and the National Stock Exchange of India Limited, ensuring transparency and compliance with listing regulations.

As the real estate sector continues to evolve, this demerger represents a strategic move by Valor Estate Limited to potentially unlock value in its hospitality business. Shareholders and market watchers will be keen to observe how this restructuring impacts the company's focus and performance in the coming months.