1. At a Glance – Blink and You’ll Miss the Twist
Prozone Realty Ltd is one of those real estate companies that looks boring until you zoom in, and then suddenly it starts behaving like a Netflix thriller with too many subplots. Market cap of ~₹816 Cr, stock price hovering around ₹53, and a balance sheet that says “mall developer” but a P&L that screams “other income doing cardio.”
Q3 FY26 numbers? Quarterly sales came in at ~₹58 Cr with PAT of ~₹6.8 Cr. Sounds decent until you remember this company has been around since 2007, owns malls, residential townships, and sits on a 15.54 million sq. ft. fully paid-up land bank. ROCE is a sleepy ~2.8%, ROE is still negative on longer-term averages, and debt is sitting around ₹425 Cr.
The stock has rallied hard over the last year (~50%), promoters suddenly woke up and increased holding post the Apax Trust entry, and the market is now asking: Is this a genuine turnaround story… or just real estate déjà vu with better PowerPoint slides?
2. Introduction – Real Estate, But Make It Complicated
Prozone Realty is not your typical “build flats, sell flats, disappear” developer. It plays a hybrid game:
- ~75% Build & Sell (residential + commercial)
- ~25% Build & Lease (retail malls – the cash-cow dream)
In theory, this is smart. Build malls, lease them to Zara-loving Indians, use steady rental income to fund residential launches, and look respectable in investor decks. In practice? Execution has been patchy, cash flows have mood swings, and profitability has been allergic to consistency.
But here’s the twist: malls in Tier-2 cities like Aurangabad, Nagpur, Coimbatore are no longer dead assets. Footfalls are back, leasing metrics are improving, and suddenly Prozone doesn’t look as outdated as it did five years ago.
So the real question is not what Prozone does — it’s whether it can finally monetise what it already owns without issuing
one more “strategic restructuring” press release.
3. Business Model – WTF Do They Even Do?
Imagine Prozone as a landlord who also moonlights as a real estate flipper.
Retail (Build & Lease – The Mall Game)
- Owns and operates regional malls in Aurangabad, Nagpur, Coimbatore
- Anchors include H&M, Reliance Trends, Zudio, Croma, Inox
- Leasing contributes ~59% of FY23 revenue
Malls are long-gestation assets. They burn cash early, look ugly on ROCE, but once stabilised, they quietly mint money. Prozone is somewhere in between — not bleeding, not minting, just… existing.
Residential (Build & Sell – The Quick Cash Hustle)
- Large land parcels developed in phases
- Nagpur township (~43.5 acres)
- Coimbatore residential (~1.9 mn sq ft, 1,152 apartments)
Residential brings lumpy cash flows. One quarter looks great, the next looks like someone unplugged the sales office.
Question for you: Would you rather own a boring mall that prints rent slowly or gamble on apartment launches every festive season?
4. Financials Overview – The Numbers Don’t Lie, But They Do Smirk
Quarterly Comparison (₹ Cr)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 58.2 | 44.9 | 46.2 | ~30% | ~26% |
| EBITDA | 22.8 | 17.4 | 17.5 | ~31% | ~30% |
| PAT | 6.8 | 3.9 | 3.4 | ~74% | ~100% |
| EPS (₹) | 0.12 | 0.05 | 0.10 | — | — |
Witty takeaway: Revenue is jogging, EBITDA is sprinting, and PAT looks like it just discovered protein shakes. But don’t forget — real estate profits are seasonal liars.
5. Valuation Discussion
