Madhusudan Kela Portfolio Stock Up Over 200% Is Now Targeting to Double Its Real Estate Profits in FY27

Synopsis: A legacy Indian conglomerate, freshly restructured after a three-year overhaul, is now betting big on real estate to drive profits – with its first full year of consolidated earnings already done and a target to double real estate profits in FY27.

Few turnaround stories in Indian markets have played out as sharply as this one. A company that spent nearly three years quietly merging 17 entities, cleaning up its balance sheet, and exiting failed businesses has suddenly found itself back in the spotlight – and not just for the restructuring. The real estate machine it built during that period is now beginning to generate revenue, and the numbers from its first full year under the revived Indiabulls brand are turning heads.

Madhusudan Kela Spotted the Opportunity Early

When ace investor Madhusudan Kela first disclosed a fresh stake in Indiabulls Limited through the March 2026 shareholding pattern, the stock was trading at around ₹9. Since then, it has surged to nearly ₹28 – a return of more than 200% in just a few months. For retail investors who missed the early entry, the obvious question now is whether the business fundamentals justify what lies ahead. The answer, at least according to management, lies squarely in real estate.

FY26: The First Year That Actually Counted

Indiabulls Limited – formerly Yaari Digital Integrated Services Limited – was listed in December 2025 following the court-approved merger of 17 group entities, including Dhani Services and Indiabulls Enterprises. FY26 became, in effect, the first real operating year of the consolidated entity.

For the full year, the company reported revenue of ₹880.78 crores and a profit after tax of ₹346 crores. The fourth quarter alone delivered revenue of ₹418.39 crores and PAT of ₹194.26 crores – making Q4 FY26 the first quarter in which real estate revenue was formally recognised in the company’s books.

Management was clear on the earnings call that this is not a one-time event. The company sold approximately 21.6 lakh square feet of real estate during FY26, and the revenue recognition cycle has only just begun.

Real Estate: The Engine That Will Drive the Next Few Years

The company’s real estate pipeline is substantial. It has a total gross development value (GDV) potential of over ₹21,000 crores, spanning residential, commercial, plotted, and mixed-use projects across Gurugram, Mumbai, and Ludhiana.

In FY26, major project launches included Indiabulls Estate and Club in Sector 104, where over 75% of inventory has already been sold, and Indiabulls Heights in Sector 104, which was nearly 100% sold within a week of launch. For FY27, the company plans to launch approximately 40 lakh square feet with a GDV of over ₹6,000 crores, with an additional pipeline of 42 lakh square feet valued at ₹11,900-plus crores sitting behind that.

On profit guidance, management was direct: real estate profits in FY27 are expected to at least double from FY26 levels, and FY28 is targeted at 3x. Revenue is recognised on a percentage-completion basis, so profits will keep flowing as construction progresses.

There is also an annuity income story building quietly. The Indiabulls Tower in Prabhadevi, Mumbai – a commercial asset being developed for leasing – is expected to generate annual rental income of ₹100-120 crores once ready, roughly three to four years from now, at a capex of approximately ₹600 crores.

Financial Services: Small but Profitable

Beyond real estate, the company runs a broking business, an asset reconstruction company (ARC), and holds a stake in SpringCash, a US-based SMB lending platform. The broking business contributed ₹28 crores of PBT in FY26, entirely from its offline branch model, while the online discount broking platform is still being scaled.

The ARC business – which manages fee-paying AUM of ₹622 crores and assets under allocation of ₹3,794 crores – is in its collection phase and is expected to start contributing meaningfully to profits from FY27. The company has around 2,200 collection professionals on its payroll to manage recoveries.

Balance Sheet: The Other Reason Investors Are Paying Attention

The group carries no debt across any of its businesses. As of the earnings call, cash and equivalents stood at approximately ₹750 crores. The NBFC loan book of roughly ₹1,000 crores – a legacy portfolio from earlier consumer lending operations – is being wound down, with no fresh disbursements planned. It is expected to generate approximately ₹120 crores of top-line interest income over the year as it runs off.

Crucially, the company also inherited a tax shield of approximately ₹3,000 crores during the merger, meaning PBT and PAT will remain identical until that shield is exhausted. Management has guided for PAT of ₹1,000-1,500 crores in five to seven years.

About the Company

Indiabulls Limited (formerly Yaari Digital Integrated Services Limited) is a listed Indian conglomerate operating across real estate, stockbroking, asset reconstruction, and financial services. The company was formed through the merger of 17 group entities and was listed in December 2025. It operates real estate projects across Gurugram, Mumbai, and Ludhiana, with a total GDV pipeline exceeding ₹21,000 crores.

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