Below is a structured extraction and summary of the relevant and actionable financial information from the submitted results filing of Valor Estate Limited (formerly D B Realty Limited) for the quarter ended June 30, 2025.
1. Auditor’s Note
- Type of report: Limited Review Report on unaudited standalone and consolidated quarterly financial results.
- Conclusion:
- Unmodified opinion with no qualifications or adverse remarks.
- Emphasis of Matter:
- Uncertainty related to pending litigations/regulatory actions (Note 4). No adjustments made pending final outcome.
- Reliance on management estimates and independent valuers for fair valuation of investments, loans, inventories, security deposits, and project advances (Note 3). Management believes carrying values are appropriate.
- For consolidated results, additional emphasis on advances of Rs. 5,662 lakhs to land aggregators with monitoring and contingency plans in place.
- Other matters:
- Share of profit/loss from certain LLPs and partnership firms included based on unaudited or unreviewed financials; considered not material.
- No modifications to the audit conclusion.
2. Financial Performance
Standalone Financials (Rs. in lakhs)
| Particulars | Q1 FY26 (Jun 30, 2025) | Q4 FY25 (Mar 31, 2025) | Q1 FY25 (Jun 30, 2024) | FY25 (Apr 24-Mar 25) Audited |
|---|---|---|---|---|
| Revenue from operations | 0 | 0 | 0 | 0 |
| Other income | 695.16 | 1,357.38 | 1,280.38 | 4,161.00 |
| Total income | 695.16 | 1,357.38 | 1,280.38 | 4,161.00 |
| Project expenses | 127.20 | 335.79 | 1,850.24 | 3,089.53 |
| Changes in inventories | (127.20) | (333.29) | (1,850.24) | (1,194.58) |
| Employee benefits expense | 299.04 | 295.85 | 326.86 | 1,243.59 |
| Finance costs | 240.49 | 213.07 | 205.57 | 839.92 |
| Depreciation & amortisation | 3.11 | 3.04 | 2.96 | 12.17 |
| Impairment & expected credit loss | 209.40 | 8,795.90 | 1,994.52 | 17,489.13 |
| Other expenses | 487.27 | (254.43) | 564.18 | 1,209.97 |
| Total expenses | 1,239.31 | 9,055.93 | 3,094.09 | 22,689.73 |
| Profit/(Loss) before tax | (544.15) | (7,698.54) | (1,813.71) | (18,528.73) |
| Tax expense (net) | 77.20 | 17.21 | (41.13) | 270.59 |
| Profit/(Loss) after tax | (621.35) | (7,715.75) | (1,772.58) | (18,799.32) |
| Profit/(Loss) after tax (incl. discontinued ops) | (621.35) | (7,715.21) | (1,772.58) | (18,797.63) |
| Basic EPS (Rs.) | (0.12) | (1.43) | (0.33) | (3.49) |
| Diluted EPS (Rs.) | (0.12) | (1.43) | (0.33) | (3.49) |
Notes:
- No revenue from operations in standalone results (likely due to real estate project accounting or demerger).
- Large impairment and expected credit loss charges in Q4 FY25 and FY25 (Rs. 8,795.90 lakhs and Rs. 17,489.13 lakhs respectively) impacting profitability.
- Negative profitability continues but loss narrowed in Q1 FY26 compared to previous quarters.
Consolidated Financials (Rs. in lakhs)
| Particulars | Q1 FY26 (Jun 30, 2025) | Q4 FY25 (Mar 31, 2025) | Q1 FY25 (Jun 30, 2024) | FY25 (Apr 24-Mar 25) Audited |
|---|---|---|---|---|
| Revenue from operations | 84,032.51 | 53,709.21 | 679.31 | 76,657.84 |
| Other income (incl. fair value gains) | 5,827.49 | 1,223.09 | 1,349.21 | 4,413.47 |
| Total income | 89,859.99 | 54,932.29 | 2,028.52 | 81,071.31 |
| Project expenses | 11,876.41 | 15,746.89 | 7,406.80 | 40,097.83 |
| Changes in inventories | 71,364.29 | 36,640.08 | (7,110.12) | 57,423.73 |
| Employee benefits expense | 505.23 | 563.23 | 553.43 | 2,419.73 |
| Depreciation & amortisation | 47.11 | 46.87 | 47.73 | 192.09 |
| Finance costs (net) | 1,829.10 | 1,249.65 | 1,483.68 | 3,164.12 |
| Impairment & expected credit loss | 209.40 | 2,157.08 | - | (3,362.11) |
| Other expenses | 2,062.64 | 865.56 | 568.26 | 2,865.51 |
| Total expenses | 87,894.18 | 57,269.37 | 2,949.77 | 1,02,800.91 |
| Profit/(Loss) before exceptional items and share of JV/associate | 1,965.81 | (2,337.08) | (921.25) | (21,729.60) |
| Exceptional items | 1,697.63 | - | - | - |
| Share of profit/(loss) of JV & associates (net) | (1,008.43) | 260.87 | (97.22) | 419.89 |
| Profit/(Loss) before tax | 2,655.01 | (2,076.21) | (1,018.48) | (21,309.71) |
| Tax expense (net) | 1,283.66 | 48.39 | 22.31 | (5,038.55) |
| Profit/(Loss) after tax (continuing ops) | 1,371.35 | (2,124.60) | (1,040.78) | (16,271.16) |
| Profit/(Loss) after tax (discontinued ops) | - | 1,971.17 | (278.05) | 4,468.06 |
| Profit/(Loss) after tax (total) | 1,371.35 | (153.43) | (1,318.83) | (11,803.10) |
| Basic EPS (Rs.) (continuing ops) | 0.23 | (0.40) | (0.19) | (3.09) |
| Diluted EPS (Rs.) (continuing ops) | 0.23 | (0.40) | (0.19) | (3.08) |
| Basic EPS (Rs.) (total) | 0.23 | (0.04) | (0.25) | (2.33) |
| Diluted EPS (Rs.) (total) | 0.23 | (0.04) | (0.25) | (2.33) |
Notes:
- Significant increase in revenue and total income in Q1 FY26 compared to Q1 FY25 and Q4 FY25, driven by real estate operations.
- Exceptional income of Rs. 1,697.63 lakhs in Q1 FY26 related to non-compete fees from sale of dairy business assets (SADPL).
- Profitability turned positive in Q1 FY26 after losses in previous quarters and year.
- Tax expense increased significantly in Q1 FY26.
- EPS positive in Q1 FY26 (Rs. 0.23 basic and diluted) compared to losses previously.
- Discontinued operations relate to hospitality business demerged effective April 1, 2025.
3. Detailed Notes / Management Commentary
- Accounting changes:
- Amalgamation of Esteem Properties Private Limited accounted using pooling of interests method retrospectively from April 1, 2024.
- Demerger of hospitality business effective April 1, 2025; hospitality results presented as discontinued operations.
- Impairment and provisions:
- Impairment provisions recognized on loans, investments, inventories, security deposits, and project advances based on fair valuation and expected credit loss models under Ind AS 109, 36, and 2.
- Litigations and regulatory matters:
- Pending litigations exist with uncertainties; no adjustments made pending outcomes.
- Specific legal cases:
- Subsidiary’s revised project plans under UDCPR 2020 challenged; Supreme Court hearing scheduled Sept 9, 2025; management confident of favorable outcome.
- Demand for development charges of Rs. 6,044.93 lakhs plus interest Rs. 5,250.21 lakhs raised by MHADA; contested and pending Supreme Court decision; development charges paid, interest not accounted; management confident no further liability.
- Land acquisition advances:
- Two subsidiaries advanced Rs. 5,662 lakhs to land aggregators for leasehold land rights; counterparties progressing with obligations; management monitoring closely with contingency plans.
- ESOPs:
- 7.39 lakh shares allotted during Q1 FY26 under ESOP 2022 at Rs. 41.45 per share. ESOP impact anti-dilutive except for Q1 FY26.
- Corporate actions:
- Composite Scheme of Amalgamation and Arrangement sanctioned by NCLT on June 12, 2025; effective July 1, 2025.
- Shareholders allotted shares in Advent Hotels International Private Limited (AHIL) post demerger.
- Acquisition of remaining stake in Sahyadri Agro and Dairy Private Limited (SADPL), making it wholly owned; sale of dairy assets resulted in exceptional gain of Rs. 6,901.20 lakhs and non-compete fees of Rs. 1,697.63 lakhs.
- Deferred tax assets:
- Not recognized on unabsorbed depreciation and carry forward losses on prudence basis unless reasonable certainty of utilization exists.
4. Segment Information
- Post-demerger, the Company is engaged solely in the real estate business, which is the only reportable segment.
- Hospitality business results reclassified as discontinued operations.
- No segment-wise financials provided for current period due to single segment focus.
5. Capex, Projects, and Corporate Activity
- Capital expenditure: Not explicitly detailed in the filing.
- Projects:
- Ongoing real estate projects with related project expenses and inventory changes reflected in consolidated results.
- Advances to land aggregators (Rs. 5,662 lakhs) for leasehold land acquisition under monitoring.
- Writedowns/Impairments:
- Significant impairment and expected credit loss charges in standalone and consolidated results, reflecting cautious asset valuation.
- Acquisitions/Disposals:
- Amalgamation of Esteem Properties Private Limited (wholly owned subsidiary).
- Demerger of hospitality business into AHIL effective April 1, 2025.
- Acquisition of remaining stake in SADPL; sale of dairy business assets with exceptional gain.
- Restructuring/Strategic shifts:
- Demerger of hospitality business to focus solely on real estate.
- Disposal of non-core dairy business.
6. Standalone vs Consolidated
| Aspect | Standalone | Consolidated |
|---|---|---|
| Revenue from operations | Nil | Rs. 84,032.51 lakhs (Q1 FY26) |
| Profit/(Loss) after tax | Loss of Rs. (621.35) lakhs (Q1 FY26) | Profit of Rs. 1,371.35 lakhs (Q1 FY26) |
| EPS (Basic) | (0.12) Rs. (Q1 FY26) | 0.23 Rs. (Q1 FY26) |
| Segment focus | Real estate only (post demerger) | Real estate only (post demerger) |
| Impairment charges | Significant (Rs. 209.40 lakhs in Q1 FY26) | Rs. 209.40 lakhs in Q1 FY26 |
| Exceptional items | Nil | Rs. 1,697.63 lakhs (non-compete fees) |
Summary for Investment Analysis Team
- Auditor’s report: Clean limited review with emphasis on pending litigations and management estimates; no qualifications.
- Standalone results: No operational revenue; losses continue but reduced in Q1 FY26; large impairments impacting profitability.
- Consolidated results: Strong revenue growth in Q1 FY26 (Rs. 84,032.51 lakhs) vs prior periods; return to profitability with Rs. 1,371.35 lakhs PAT; exceptional income from disposal of non-core dairy business.
- Corporate restructuring: Demerger of hospitality business effective April 1, 2025; focus now solely on real estate.
- Legal and regulatory risks: Ongoing litigations with management confident of favorable outcomes; significant contingent liabilities related to development charges and project approvals.
- Asset quality: Impairment provisions and expected credit losses recognized prudently; advances to land aggregators monitored with contingency plans.
- Capital structure: ESOP shares issued in Q1 FY26; no major changes in equity capital.
- Segment: Single segment real estate business post-demerger; no segment reporting required.
- Outlook considerations: Positive turnaround in consolidated profitability and revenue in Q1 FY26; watch legal outcomes and realization of advances for risk assessment.
Please advise if you require detailed ratio analysis or further drill-down on specific subsidiaries or joint ventures.