Oswal Greentech (OSWALGREEN) Q2 FY27 Profit Jumps 56% as Investment Income Masks Real Estate Slump
The company's Q2 FY27 profit rose sharply, but its core real estate revenue fell 19% as investment activities drove the bottom line.
Oswal Greentech reported a 56% jump in Q2 FY27 net profit to ₹8.56 crore. However, revenue from its core real estate operations declined 19% year-on-year, with a surge in other income from investments underpinning the profit growth.
For Oswal Greentech, the September quarter was a story of two businesses. The real estate developer saw its core sales shrink, while its in-house treasury operation delivered a windfall.
Revenue from operations fell 19% year-on-year to ₹13.88 crore. Yet, net profit jumped 56% to ₹8.56 crore, pushing the net profit margin to an exceptional 61.7%. This disconnect is captured in the recent trend.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
| Metric | CurrentQ2 FY27 (Sep 2026) | PreviousQ1 FY27 (Jun 2026) |
|---|---|---|
| Revenue (₹ Cr) | 13.88 | 4.71 |
| Profit (₹ Cr) | 8.56 | 8.42 |
| Net Margin (%) | 61.7 | – |
The investment engine driving profit
The profit surge was powered by other income, which more than doubled year-on-year to ₹13.81 crore. According to a report by ScanX, this non-operational income constituted nearly half of total income, nearly matching revenue from operations. The company lends surplus cash as inter-corporate deposits, and this investment activity was the primary catalyst for profit growth.
This masks a significant contraction in the core real estate business. Total income for the half-year fell 10%, dragged down by a 50% drop in revenue from operations. The company’s main projects are in Punjab, including the ‘Centra Greens’ complex in Ludhiana and a 57-acre development in Barnala.
A cautious outlook amid legal overhangs
Management, via an investor presentation cited by Arthneeti, expects to sustain EBITDA margins of 22-23%. The board has also approved setting up a subsidiary in Dubai, with a planned investment of AED 40 million. However, the company faces a major litigation overhang.
An arbitration award of ₹97.17 crore is currently being challenged in the Delhi High Court. The auditor’s report notes that the company has not charged further interest pending the judgment, understating assets by over ₹10 crore. This legal uncertainty is a key risk, alongside recent governance changes that saw four independent directors resign simultaneously in June.
Key Points
- Net profit grew 56% year-on-year to ₹8.56 crore, but revenue from core real estate operations declined 19%.
- The profit growth was almost entirely driven by a 110% surge in other income from investment activities.
- A significant legal dispute over a ₹97.17 crore arbitration award remains pending, creating balance sheet uncertainty.
- The company maintains a debt-free balance sheet and is planning international expansion with a new subsidiary in Dubai.
Hexa Perspective
The quarter highlights Oswal Greentech’s dual identity as a project-based developer and an internal treasury. The stellar margin is a function of high-margin investment income offsetting weak property sales, not operating leverage. For the profit momentum to be sustainable, the company needs a recovery in real estate revenue or consistent high returns from its lending book. The large legal dispute adds a layer of binary risk that investors must weigh against the clean, zero-debt balance sheet.
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