Umiya Buildcon Q4 FY26: A ₹168 Crore Company Reporting ₹40 Crore Profit at 4x P/E — Cheap Treasure or Accounting Mirage?

There are cheap stocks, and then there are stocks so statistically odd they make you suspect either the market is asleep or something in the numbers is doing gymnastics.

Umiya Buildcon sits in that second category.

A company trading at roughly 4.2 times earnings, 1.46x book, showing 42% ROE, 29% ROCE, and posting 574% profit growth, usually does not sit quietly in microcap obscurity. Markets generally do not hand out these combinations for free.

Which raises the first serious question:

Why is this still cheap?

Because either:

Market is mispricing a hidden compounder.
Earnings quality is questionable.
This is one of those weird transition stories where old labels no longer fit the business.

And Umiya looks suspiciously like option three.

This is no longer the sleepy MRO-TEK many investors remember. It is morphing into a strange hybrid:

telecom equipment manufacturer
system integrator
rental-yield real estate player
land developer
quasi defence-tech aspirant
and now even drone/UAV partnerships.

When one company tries being landlord, router maker and real-estate developer at once, either genius is brewing… or confusion.

That makes it interesting.

1. At a Glance — This Quarter Was Not Normal

Metric	Q4 FY26	Q4 FY25	YoY
Revenue	₹20.88 Cr	₹12.80 Cr	+63%
Operating Profit	₹5.15 Cr	₹3.31 Cr	+56%
PAT	₹0.63 Cr	₹0.33 Cr	+91%
EPS	₹0.30	₹0.18	+67%

But quarterly numbers almost understate the story.

Full-year FY26:

Metric	FY26	FY25	Growth
Revenue	₹72 Cr	₹49 Cr	+48%
PAT	₹42 Cr	₹6 Cr	Massive
EPS	₹21.49	₹3.13	Explosion

That is not ordinary growth.

That is event-driven distortion.

And management itself tells you why.

₹40.4 crore profit on Electronic City property sale sat inside other income. That matters.

Without that, valuation changes.

Without that, P/E may not be 4.

Without that, “cheap” may be less cheap.

This is where lazy screens fail.

Question for readers:

Are you buying an operating telecom business…

or a one-off land monetisation event dressed as operating earnings?

That distinction decides everything.

2. Business Model — What Do They Even Do?

This company almost looks stitched together by three different promoters after a long lunch.

Telecom Products

Routers, switches, secure firmware gear, carrier products.

Notably:

DoT Trusted Source
TEC certified
Defence-linked TDMoIP device
Railways/enterprise carrier routers
Make-in-India push

Recent CORNUS 1G switch launch with >65% local content is not trivial.

India wants telecom indigenisation.

That tailwind is real.

Solutions

Managed network projects.

~1200 links under management.

BSNL order.

Network operation centres.

This is sticky revenue.

Less glamorous.

Often more valuable.

Real Estate

And then suddenly…

Hebbal rental asset generating ₹15.36 crore annual lease rental.

Goa land.

North Bengaluru ultra luxury project with possible ₹200 crore development value.

Electronic City property monetised.

This part behaves less like telecom and more like mini developer.

Frankly this segment may be hiding more optionality than telecom.

So what is it really?

Maybe not telecom.

Maybe not real estate.

Maybe asset-backed special situation.

Different beast.

And markets often misprice things they cannot neatly classify.

3. Financial Overview — Strong Numbers, But Read Footnotes

Annualised EPS (Q4 means use full-year EPS only):

EPS = ₹21.49

At ₹90 stock price:

P/E = 90 / 21.49 = 4.19

Ridiculous.

But normalized?

Maybe much higher.

Quality of earnings issue

Other income:

FY25: ₹3 Cr

FY26: ₹43 Cr

That is your giant elephant.

If you strip property gains, earnings normalize sharply.

Important.

Very important.

Balance Sheet

Item	FY25	FY26
Assets	248	267
Net Worth	75	115
Borrowings	129	127
Other Liabilities	44	24

Interesting:

Debt flat.

Net worth jumps.

Leverage improved.

That is not bad.

Three observations:

Debt did not balloon despite expansion.
Equity grew much faster than liabilities.
For a microcap, balance sheet looks less drunk than expected.

4. Cash Flow — Sab Number Game Hai

And here

To Read Full 16 Point

Join 10,000+ investors who read this every week.