Shradha Realty Ltd Q3 FY26: ₹28.34 Cr Revenue, ₹4.91 Cr PAT, 12.31% OPM – Debt ₹185 Cr vs Market Cap ₹306 Cr… Nagpur’s Mini-Developer or Leverage Lover?
1. At a Glance – The ₹37.8 Puzzle
Shradha Realty Ltd (earlier Shradha Infraprojects) is sitting at a market cap of ₹306 Cr with a stock price of ₹37.8. In the last 3 months, the stock is down 13.3%. One-year return? A bruising -28%. Yet the company trades at a P/E of 14.6 — almost half the industry P/E of 28.1.
Sounds like a bargain, right? Slow down, Sherlock.
Q3 FY26 revenue came in at ₹28.34 Cr, up 25.5% YoY. Net profit stood at ₹4.91 Cr, up 29.6% YoY. ROE is 12.7%, ROCE 9.54%. Dividend yield? 1.32%. Debt? ₹185 Cr.
Yes, you read that right. Debt of ₹185 Cr versus annual sales of ₹116 Cr.
The PEG ratio is 0.10. Which looks sexy. But earnings growth TTM is -1%.
So the big question is:
Is this a lean Nagpur-focused real estate story quietly compounding… or a small-cap builder juggling debt, rights issues, and intercompany loans?
Let’s investigate.
2. Introduction – Welcome to Nagpur’s Realty Chessboard
Shradha Realty Ltd is not Mumbai. Not Gurgaon. Not Bangalore.
It is a Nagpur-focused real estate and infrastructure player operating in residential, commercial, and lease development.
This is not a flashy pan-India giant like DLF. This is a city-focused developer trying to punch above its weight.
And here’s what makes it interesting:
Sales growth over 3 years: 290%
Profit growth over 3 years: 147%
Promoter holding: 75%
Pledged shares: 0%
But then comes the plot twist.
Debtor days: 208 days
Debt to equity: 1.15
Operating cash flow FY25: -₹22 Cr
Real estate companies often look profitable on paper. Cash flow? That’s where truth lives.
And here’s another spicy line: earnings include ₹14.4 Cr other income.
Are we seeing core business strength or financial engineering gymnastics?
Let’s decode.
3. Business Model – WTF Do They Even Do?
Shradha Realty is a real estate infrastructure development company.
They operate in two main divisions:
1. Development Business
They develop and sell residential and commercial properties.
