According to reports from Business Standard, Garnet Construction reported a standalone net loss of ₹1.04 crore in the quarter ended June 2026, marking a significant reversal from the net profit of ₹18.21 crore recorded in the corresponding quarter of the previous year. This represents a complete turnaround in the company's financial performance compared to the same period last year. The company's revenue declined substantially to ₹-0.13 crore in Q1 FY27, compared to ₹40.39 crore in the corresponding quarter of the previous financial year, indicating minimal or no sales during the quarter.
According to the latest financial data, the company's operating profit margin (OPM) declined to 56.92% in Q1 FY27 from 60.98% in the same quarter of the previous year. Additionally, PBDT (Profit Before Depreciation and Tax) turned negative at ₹-0.91 crore compared to a positive ₹2.45 crore in Q1 FY26, while PBT (Profit Before Tax) also remained in negative territory at ₹-1.07 crore versus a positive ₹2.44 crore in the corresponding quarter last year. The company's operating profit margin has shown volatility over recent years, ranging from negative 69% in Q1 FY22 to positive 61% in Q1 FY25, indicating ongoing operational challenges.
As reported by Business Standard, the financial results were announced for the quarter ended June 2026, representing the first quarter of the current financial year. Garnet Construction Ltd is a Mumbai-based real estate development company incorporated in 1992 that focuses on residential, commercial, retail, and mass housing projects. The company has a market capitalization of ₹86.7 crore and is currently trading at ₹0.56 times its book value. Despite reporting repeated profits, the company is not paying out dividends to shareholders, while maintaining a promoter holding of 61.3%.
According to the latest financial statements, Garnet Construction faces working capital challenges with debtor days of 300 days, indicating extended payment cycles. The company's cash conversion cycle stands at 6,326 days, reflecting the time it takes to convert cash from operations to cash available for operations. The company has delivered good profit growth of 25.6% CAGR over the last 5 years, though it continues to face operational efficiency challenges. ROCE (Return on Capital Employed) remains at 5%, suggesting room for improvement in capital efficiency.
