Ashiana Housing Kept at 'Hold' as Q1 FY27 Revenue Falls and Sector 78 Senior Living Deal Is Signed

What the 'Hold' rating says

The note dated 2 November 2026 grades Ashiana Housing's quality as solid and its valuation as expensive, but justifiable. It describes near-term financial trends as flat and technical indicators as mildly bullish. The proprietary score is 60.0, which the note treats as moderate confidence in the stock's near-term prospects.

The advice in the note is to maintain existing holdings and monitor developments closely. Under the same rating, new positions are not recommended to be built aggressively, but existing holdings are not advised to be sold unless fundamentals or market conditions deteriorate significantly.

An earlier valuation note dated 22 September 2026 put the price-to-earnings ratio at about 34 and the PEG ratio at about 0.17. That note said much of the expected earnings growth appears to be priced in, which leaves limited upside if growth falls short.

Q1 FY27 results: lower revenue, steady profit

For the quarter ended 30 June 2026 (Q1 FY27), consolidated revenue from operations was ₹107.44 crore. That is sharply lower than the previous quarter and the same quarter last year. Consolidated net profit was ₹13.11 crore, a small rise on a year earlier.

EBITDA was ₹7.54 crore, an EBITDA margin of 7.02%, compared with ₹11.84 crore a year earlier. Pre-tax operating cash flow was ₹121 crore, up from ₹108 crore in Q1 FY26 but down from ₹167 crore in Q4 FY26.

Collections were ₹409 crore in the quarter, and average realisation improved to ₹9,923 per sq ft. Bookings were 3.61 lakh sq ft across 234 units, with a booking value of ₹357.80 crore. June 2026 alone accounted for ₹130.37 crore of booking value.

The company attributed the weaker quarter partly to the timing of project completions. Delivery timelines for Amarah Phase 1 and Anmol Phase 3 were moved from Q1 FY27 to Q2 FY27.

Credit rating upgraded to CARE A+

CARE Edge upgraded the issuer rating and six non-convertible debenture (NCD) ratings from CARE A to CARE A+, with a Stable outlook. The action took effect on 26 October 2026 and is based on FY26 audited figures and Q1 FY27 unaudited figures.

The company has also opted to withdraw ₹26.75 crore from a proposed issuance under ISIN INE365D08083. In the first quarter it commenced redemption of NCDs issued to ICICI Prudential, redeeming ₹31.25 crore, with the balance of ₹93.75 crore scheduled over the next three financial years.

Sector 78 Senior Living joint development agreement

On 29 October 2026, the company disclosed under Regulation 30 of the SEBI LODR Regulations that it has entered into a Joint Development Agreement for a Senior Living project on about 4.4125 acres in Sector 78, Gurugram, Haryana. The company estimates sales potential of about ₹1,300 crore and a saleable area of about 7.25 lakh sq ft on completion. The disclosure was made by Company Secretary Nitin Sharma.

A joint development model generally lets a developer bring a project forward without paying the full cost of buying the land outright. The company is now moving from the agreement stage into planning and approval.

Balance sheet and FY26

For the full year FY26, the company reported revenue of ₹1,143 crore and profit after tax of ₹118 crore, a PAT margin of 9.93% and a return on equity of 15%. Net cash rose to ₹785 crore at the end of the fiscal year, up from ₹445 crore in FY25.

In Q1 FY27 the company raised ₹43.25 crore through unsecured, rated, listed NCDs for the new Senior Living acquisition.

What comes next

• 4 November 2026: Board meeting to approve unaudited results for the quarter and half-year ended 30 September 2026.
• 5 November 2026, 4:00 PM IST: Management conference call.
• FY27 guidance: Management has kept its full-year target of about ₹2,200 crore in pre-sales and about ₹2,000 crore in revenue, and has said first-half pre-sales could reach about ₹1,050 to ₹1,100 crore, aided by the July launch of Ashiana Oma.
• Q2 revenue: Two large projects, Ambience Stage 3 and Ashiana Amara Phase 1, received occupancy certificates in mid-July. The company expects these to add about ₹532 crore to Q2 FY27 revenue.
• Sector 78: The company is moving the Senior Living project from agreement to planning and approval stages.

Earlier rating changes

On 27 April 2026 the same research service downgraded the stock from 'Buy' to 'Hold', as its valuation moved from expensive to very expensive. On 22 September 2026 it kept the 'Hold' rating with a score of 65.0, after a weekly gain of 9.82%. On 9 October 2026 the valuation grade moved from very expensive back to expensive.