1. At a Glance
Crest Ventures Ltd (CVL) — a company that can’t decide if it’s a real estate developer, an NBFC, or an investment company — delivered yet another quarter that looks like a mathematical puzzle with luxury aesthetics. For Q2 FY26, Crest posted a profit before tax of ₹5.59 crore and net profit of ₹3.74 crore — a sharp nosedive of 78.3% QoQ from ₹17.89 crore in Q1 FY26. Sales also fell 16.5% QoQ to ₹29.54 crore. Investors might wonder: was this a financial quarter or a government monsoon forecast?
At ₹368 per share, the stock is down 17.8% YoY and 10.3% in six months, sporting a P/E of 20.5 and a price-to-book value of 0.83. Market cap stands at ₹1,047 crore — or roughly the same as one Mumbai luxury tower in their pipeline. The company maintains a humble debt-to-equity ratio of 0.16, a serene current ratio of 15.7, and an interest coverage of 4.78. Basically, Crest is that cautious friend who lends money to everyone else but checks your CIBIL before buying chai.
Operating profit margin (OPM) was a proud 39.6% in Q2 FY26, down from 64.2% in Q1 FY26 — proving once again that real estate plus finance equals volatility with better interiors.
2. Introduction
Founded in 1982, when Doordarshan was the only streaming service in India, Crest Ventures has since evolved into a “systemically important non-deposit taking NBFC” — basically, an NBFC that’s too serious to accept deposits but happy to lend to real estate projects and itself through a maze of subsidiaries.
If most NBFCs chase retail loans and vehicle financing, Crest went down the elite path — luxury apartments, Phoenix MarketCity malls, and a Rolodex of JVs that could give any lawyer insomnia.
With a 69.8% promoter holding and zero pledge, Crest maintains the posture of a sophisticated, family-run financial conglomerate — the kind that sends its balance sheet to art school. But look closely and you’ll see that revenue is more “project exit-based” than predictable. In FY24, 84% of revenue came not from interest or services, but from net gain on derecognition of financial instruments — a fancy way of saying “we sold something and booked a gain.”
So, while others are chasing consistent yield, Crest is chasing “event-based accounting euphoria.”
3. Business Model – WTF Do They Even Do?
Good question. Crest Ventures is technically an NBFC, but emotionally a real estate investment fund trapped in a holding company’s body.
1. Financial Services: Through various partnerships and JVs, Crest offers everything from investment banking to share registry, equity brokerage, and derivatives. It’s like a buffet — you may not know what you’re eating, but it’s definitely financial.
2. Real Estate: Crest builds luxury residential and commercial projects across Mumbai, Chennai, Raipur, and beyond. Projects like “One Crest” and “Crest Greens” sound like retirement destinations for successful auditors. The company claims to have delivered over 12 million sq. ft. of space — or roughly enough to host the entire SEBI staff in luxury.
3. Investments & Credit: Here comes the real plot twist. The investment
book in FY24 stood at ₹297 crore — 57% of which was exposure to group companies through equity and convertible debentures. That’s right — Crest invests heavily in its own cousins. Around 34% went into equities and PMS, 9% in AIFs, and 0.25% in mutual funds — the financial equivalent of ordering just one papad after a lavish thali.
Loan Book: ₹367 crore in FY24, up ~40% YoY. Clearly, the lending arm is not just alive — it’s thriving like a well-oiled credit engine.
So yes, Crest is a three-headed creature — part developer, part financier, part investor — all held together by fine print and family trust deeds.
4. Financials Overview
| Metric | Latest Qtr (Q2 FY26) | YoY Qtr (Q2 FY25) | Prev Qtr (Q1 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 29.54 | 35.38 | 47.56 | -16.5% | -37.9% |
| EBITDA (₹ Cr) | 11.69 | 25.54 | 20.22 | -54.2% | -42.2% |
| PAT (₹ Cr) | 3.74 | 17.89 | 7.91 | -79.1% | -52.7% |
| EPS (₹) | 1.31 | 6.02 | 2.72 | -78.2% | -51.8% |
Annualized EPS = ₹1.31 × 4 = ₹5.24; P/E = 368 / 5.24 = 70.2 (the reported 20.5 P/E likely uses trailing 12-month EPS).
Crest’s quarterly performance resembles a sine wave in financial calculus — every alternate quarter is either a champagne toast or a heartbreak. But hey, consistency is overrated when your EBITDA margins touch 87% one quarter and 39% the next.
5. Valuation Discussion – Fair Value Range Only
Let’s attempt some sober math before the sarcasm continues.
a) P/E Based Approach:
Industry P/E: ~21.2
Trailing EPS (FY25): ₹18.0
So, Fair Value Range (P/E) = ₹18 × (15–25) = ₹270–₹450
b) EV/EBITDA Approach:
EV = ₹1,116 crore
EBITDA (FY25): ₹96 crore
EV/EBITDA = 11.6×
Fair EV Range assuming sector 9×–13× = ₹864–₹1,248 crore
Equity Value Range = EV – Debt = ₹864–₹1,248 – ₹202 = ₹662–₹1,046 crore
Fair Price Range ≈ ₹360–₹570/share
c) DCF Style (Simplified):
Assume 10% annualized cash flow growth over 5 years, discount rate 12%.
Implied value aligns with ₹350–₹500 range.
Educational Fair Value Range: ₹350 – ₹500/share
Disclaimer: This fair value range is for educational purposes only and does not constitute investment advice.
6. What’s Cooking – News, Triggers, Drama
Crest’s management calendar this year could double
