Shervani Industrial Syndicate Ltd (526117)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Shervani Industrial's revenue was ₹5.6 Cr (-36.7% year on year, +275.8% on the previous quarter), and net profit ₹1.3 Cr (+291.2% year on year); the operating margin was 13.9%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹5.6 | -36.7% | +275.8% |
| Operating profit | ₹0.8 | — | from loss |
| Net profit | ₹1.3 | +291.2% | from loss |
| EPS (₹) | 5.14 | +289.4% | from loss |
| Operating margin | 13.9% | — | — |
📢 Recent Corporate Announcements
Shervani Industrial Syndicate has appointed Mr. Bal Krishna Misra as an Additional and Whole Time Director for a five-year term effective August 6, 2026. Mr. Misra, a Law Graduate and Company Secretary, has been with the company since 2004 and currently serves as General Manager (Finance & Accounts). This internal promotion aims to leverage his 22 years of experience in finance and corporate law to support the company's ongoing real estate projects, including the 6.95 lakh square feet 'Victory Tower'. The appointment is subject to shareholder approval at the upcoming Annual General Meeting.
- Appointment of Mr. Bal Krishna Misra as Executive Director for a 5-year term starting August 6, 2026
- Appointee brings over 22 years of experience in finance, accounts, and corporate laws
- Mr. Misra has been with the company for 22 years, having joined in 2004
- The company is currently executing the 'Victory Tower' project with a saleable area of ~6.95 lakh square feet
Shervani Industrial Syndicate returned to profitability in Q1 FY27 (ended June 30, 2026), reporting a consolidated net profit of ₹1.33 Cr compared to a loss of ₹0.83 Cr in the preceding quarter. Consolidated revenue from operations reached ₹5.60 Cr, with the Real Estate segment contributing ₹4.60 Cr (82% of operations) and the IT sector adding ₹1.00 Cr. The company also appointed Mr. Bal Krishna Misra as an Executive Director for a five-year term to strengthen leadership. Revenue recognition remains lumpy due to the 'completed contract method' used for accounting.
- Consolidated Net Profit of ₹1.33 Cr for Q1 FY27, a turnaround from the ₹0.83 Cr loss in Mar 2026.
- Real Estate segment revenue stood at ₹4.60 Cr, driven by the ongoing Victory Tower project in Prayagraj.
- IT Sector products contributed ₹1.00 Cr to consolidated revenue, diversifying the income stream.
- Basic and Diluted EPS improved significantly to ₹5.14 from a negative ₹3.36 in the previous quarter.
- Revenue includes ₹35 Lakhs withdrawn from capital reserves related to revaluation of land on executed flat sales.
Shervani Industrial Syndicate has appointed Mr. Bal Krishna Misra as an Additional and Whole-time Director (Executive Director) for a five-year term effective August 6, 2026. Mr. Misra, a qualified Company Secretary with 22 years of experience, has been with the company since 2004 and was previously the General Manager (F&A). This internal promotion occurs as the company manages a small TTM revenue of Rs 20 Cr and a net loss of Rs 1 Cr. The appointment is subject to shareholder ratification at the upcoming Annual General Meeting.
- Appointment of Mr. Bal Krishna Misra as Executive Director for a fixed term of 5 years starting August 6, 2026
- Mr. Misra brings over 22 years of experience in finance, accounts, and corporate laws to the board
- Internal promotion of an individual who has been with the company for 22 years (since 2004)
- Company is currently managing the 'Victory Tower' project with a saleable area of ~6.95 lakh square feet
- The appointment comes at a time when the company has a TTM OPM of -14.3% and a market cap of Rs 76 Cr
Shervani Industrial Syndicate reported a strong turnaround in Q1 FY27, with consolidated net profit rising to ₹1.33 Cr compared to ₹0.15 Cr in the same quarter last year. Total consolidated income grew 26.6% YoY to ₹6.95 Cr, driven by contributions from Real Estate (₹4.60 Cr) and IT sectors. The company also announced the appointment of Mr. Bal Krishna Misra as Executive Director for a five-year term. Despite the profit growth, the company remains heavily reliant on its 'Victory Tower' project in Prayagraj, which represents a significant portion of its asset base.
- Consolidated Net Profit surged to ₹1.33 Cr from ₹0.15 Cr in the year-ago quarter.
- Total Consolidated Income increased to ₹6.95 Cr, up from ₹5.49 Cr YoY.
- Real Estate segment contributed ₹4.60 Cr to standalone revenue for the quarter.
- Consolidated EPS improved significantly to ₹5.14 from ₹1.31 YoY.
- Appointment of Mr. Bal Krishna Misra as Whole-time Director for a 5-year term effective immediately.
Shervani Industrial Syndicate Ltd has scheduled its 345th board meeting for August 6, 2026, to approve standalone and consolidated unaudited financial results for the quarter ended June 30, 2026. This follows a volatile fiscal year where the company reported a net loss of Rs 0.83 Cr in the most recent quarter (March 2026) on a low revenue base of Rs 1.49 Cr. The company's performance is heavily tied to the execution of its 'Victory Tower' project, which features a saleable area of ~6.95 lakh square feet. The trading window for insiders has been closed since July 1, 2026.
- Board meeting scheduled for August 6, 2026, to review Q1 FY27 results
- Trading window for designated persons closed since July 1, 2026
- Company reported a TTM revenue of Rs 20 Cr against a market cap of Rs 74 Cr
- Previous quarter (March 2026) revenue stood at Rs 1.49 Cr with a net loss of Rs 0.83 Cr
- Ongoing 'Victory Tower' project remains the primary revenue driver with ~6.95 lsf saleable area
Financial Performance
Revenue Growth by Segment
The primary revenue driver is the Real Estate segment. The subsidiary Farco Foods Private Limited reported a turnover of INR 4.49 Cr (449.32 Lakhs) for FY25. The company also generates income from leasing vacant land following the discontinuation of its goat farming project.
Geographic Revenue Split
100% of the company's real estate operations and projects, including the ongoing Victory Tower, are concentrated in the Prayagraj (Uttar Pradesh) micro-market.
Profitability Margins
The company reported an average net profit of INR 10.59 Cr (1059.05 Lakhs) as per Section 135(5) for FY25. The subsidiary Farco Foods Private Limited reported a net loss of INR 0.1565 Cr (15.65 Lakhs).
Credit Rating & Borrowing
The company's long-term bank facilities of INR 77.00 Cr were reaffirmed at IVR BBB-/Stable (Triple B minus with Stable Outlook) in September 2025. Total debt as of March 31, 2025, was INR 51.38 Cr.
Operational Drivers
Raw Materials
Key raw materials for real estate development include steel, cement, bricks, and construction labor. Specific percentage of total cost for each is not disclosed.
Capacity Expansion
The company has developed ~7 lakh square feet (lsf) in the past. Current expansion is focused on the 'Victory Tower' project, which has a total saleable area of ~6.95 lsf.
Manufacturing Efficiency
The company demonstrated strong marketability by selling ~6 lsf or 86% of its past developed saleable area of 7 lsf.
Strategic Growth
Growth Strategy
Growth is driven by the execution of the 'Victory Tower' project (~6.95 lsf) and the strategic decision to lease out vacant land from the discontinued goat farming project to ensure effective property utilization and security.
Products & Services
Residential and commercial real estate units, and land leasing services.
Brand Portfolio
Shervani Industrial Syndicate Limited, Shervani Group, Victory Tower.
New Products/Services
The ongoing 'Victory Tower' project is the primary new product offering, contributing to future saleable area.
Market Expansion
The company is focused on deepening its presence in the Prayagraj real estate micro-market.
Strategic Alliances
The company holds a 46.33% stake in Youngtronics India Private Limited. It ceased to have an associate relationship with Star Hotels w.e.f. February 20, 2025.
External Factors
Industry Trends
The real estate industry in Prayagraj is evolving with a focus on high-rise residential/commercial developments like Victory Tower, supported by experienced local promoters.
Competitive Landscape
The company competes in the Prayagraj real estate micro-market against other local developers.
Competitive Moat
The company's moat is built on the Shervani Group's decade-long track record and established brand presence in the Prayagraj real estate market, which supports project marketability.
Consumer Behavior
Demand is driven by the marketability of projects in specific real estate micro-markets where the promoters have a proven track record.
Regulatory & Governance
Industry Regulations
Operations are governed by the Companies Act 2013, Securities Contracts (Regulation) Act 1956, SEBI (LODR) Regulations 2015, and the Maternity Benefit Act 1961.
Environmental Compliance
The company reports compliance with applicable environmental laws as part of its secretarial audit.
Legal Contingencies
The Statutory Auditors' Report for the year ended March 31, 2025, contained no qualifications, reservations, or adverse remarks.
Risk Analysis
Key Uncertainties
Key risks include construction delays leading to cost overruns, weaker sales performance, and any debt-driven capex that could deteriorate the gearing ratio (currently 0.44x).
Geographic Concentration Risk
100% of real estate operations are concentrated in Prayagraj, UP, making the company highly sensitive to local economic conditions.
Credit & Counterparty Risk
The company maintains a backloaded term loan repayment structure to manage liquidity against project collections.
