Aditya Birla Real Estate Plummets on Q2 Net Loss

Aditya Birla Real Estate's shares dropped 4.31% to Rs 1,679.40 after the company reported a significant consolidated net loss in Q2 FY26, highlighting a challenging period for the real estate giant.

Aditya Birla Real EstateQ2 Fy26Net LossReal EstateFinancial PerformanceReal EstateOct 28, 2025

Aditya Birla Real Estate Plummets on Q2 Net Loss
Real Estate:Aditya Birla Real Estate's shares experienced a significant decline, dropping 4.31% to Rs 1,679.40, following the company's announcement of a consolidated net loss of Rs 15.74 crore in the second quarter of fiscal year 2026 (Q2 FY26). This is a stark contrast to the net profit of Rs 2.58 crore reported in the corresponding quarter of the previous fiscal year (Q2 FY25).

Total income for the quarter ended 30 September 2025 saw a substantial decrease of 58.94% year on year (YoY) to Rs 113.23 crore. This decline in revenue is a reflection of the challenging market conditions and the company's ongoing efforts to navigate through them.

Total expenses for the quarter also saw a reduction, falling 25.60% YoY to Rs 201.39 crore. The cost of land, construction, and other related real estate development costs decreased by 70.64% to Rs 43.29 crore. However, employee benefits expenses increased by 37.39% to Rs 59.67 crore, indicating a focus on maintaining a strong workforce despite the financial downturn.

The pre-tax loss for the quarter was Rs 91.83 crore, a significant shift from the profit before tax of Rs 5.13 crore reported in Q2 FY25. This highlights the financial strain the company is under and the need for strategic adjustments to improve performance.

On the segmental front, revenue from real estate income dropped 66.59% YoY to Rs 83.14 crore, while revenue from other sources fell 6.73% to Rs 13.79 crore. These figures underscore the need for Aditya Birla Real Estate to diversify its revenue streams and explore new opportunities to bolster its financial health.

Aditya Birla Real Estate, formerly known as Century Textiles and Industries, was established in 1897. The company has a diversified portfolio with a presence in the cotton textiles, pulp & paper, and real estate sectors. Despite the current challenges, the company remains committed to its long-term growth and development strategies.

Frequently Asked Questions

What was Aditya Birla Real Estate's net loss in Q2 FY26?

Aditya Birla Real Estate reported a consolidated net loss of Rs 15.74 crore in Q2 FY26.

How much did Aditya Birla Real Estate's total income decline in Q2 FY26?

Total income for Aditya Birla Real Estate declined by 58.94% YoY to Rs 113.23 crore in Q2 FY26.

What was the pre-tax loss for Aditya Birla Real Estate in Q2 FY26?

The pre-tax loss for Aditya Birla Real Estate in Q2 FY26 was Rs 91.83 crore.

How much did the cost of land, construction, and other real estate development costs decrease in Q2 FY26?

The cost of land, construction, and other real estate development costs decreased by 70.64% to Rs 43.29 crore in Q2 FY26.

What sectors does Aditya Birla Real Estate operate in?

Aditya Birla Real Estate operates in the cotton textiles, pulp & paper, and real estate sectors.

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