Image Source: APN News
Omaxe Ltd has revealed its consolidated financial results for the first quarter of FY26, ending June 30, 2025, highlighting a period of mixed outcomes for the Delhi-based realty major. While the quarter saw a notable recovery in revenues, the company’s net loss ballooned, weighed down by escalating expenses and persistent industry headwinds.
Omaxe Ltd, a leading name in India’s real estate sector with footprints across Delhi-NCR, Punjab, Haryana, and Uttar Pradesh, released its Q1 FY26 earnings today. The results paint a picture of robust operational growth undermined by cost pressures that have persisted over the recent quarters.
Key Highlights from Q1 FY26
-
Consolidated revenue from operations climbed to Rs2.82billion, signaling an upbeat quarter for topline growth (as per today's announcement).
-
The company reported a consolidated net loss of Rs1.86billion, marking its fourth consecutive quarter of losses, and underscoring ongoing profitability challenges.
Revenue Surge, Expense Pressure
Omaxe’s revenue growth reflects better sales momentum and improved real estate demand. The company’s total income for the quarter rose sharply, but this positive movement was eclipsed by a rise in costs. Total expenses for Q1 FY26 surged due to higher land acquisition charges, increased consumption of construction material, and other project-related overheads. This cost inflation resulted in an operational loss that deepened the company’s net deficit compared to previous quarters.
Loss Profile and Margin Dynamics
This quarter’s net loss of Rs1.86billion (Rs186crore) is a significant escalation from earlier periods, largely attributed to cost overruns and interest outlays. Key margins remained under pressure:
-
Net Profit Margin: Negative, reflecting ongoing losses and cost overruns.
-
EBIT Margin: Narrowed further compared to industry benchmarks.
Other Performance Indicators
The company’s pipeline for projects remains active, with ongoing developments chiefly in the NCR region and expansion plans in Punjab and Haryana.
Employee expenses and finance costs accounted for sizeable portions of total outlays, contributing to the margin squeeze.
Omaxe did not declare any interim dividend for shareholders in this quarter, owing to the negative earnings trajectory.
Operational and Strategic Updates
In parallel to the results, Omaxe advanced its land bank, recently acquiring 260 acres in Amritsar for a new township project. This move is expected to boost the company’s project pipeline and consolidate its market presence in Punjab.
Despite the widening losses, the management highlighted continued demand in select geographies, particularly in commercial real estate assets and townships.
Industry Outlook and Company Stance
The company attributed the revenue boost to an improved environment in urban real estate, enhanced liquidity for finished stock, and successful launches. However, Omaxe cautioned investors about lingering input cost volatility, tough financing conditions, and competitive pressure from peer developers.
Q1 FY26 at a Glance
-
Revenue from Operations: Rs2.82billion (Q1 FY26)
-
Consolidated Net Loss: Rs1.86billion (Q1 FY26)
-
Major Expense Drivers: Land acquisition, material costs, interest expense
-
Expansion: New projects in NCR, Punjab, Haryana; ongoing township in Amritsar
-
Strategic Focus: Commercial, mixed-use, and affordable housing segments
-
No dividend declared for Q1 FY26
Looking Forward
Management emphasized its commitment to cost optimization, prudent capital allocation, and leveraging the revived demand in Tier-2 and Tier-3 cities. Omaxe maintains cautious optimism for the coming quarters, aiming to reverse the loss trajectory as new projects go live and revenue streams diversify.
Source: Economic Times, Moneycontrol, Business Standard, NDTV Profit
Advertisement
Advertisement
