Land sales boost Eastern Housing's Q1 profit by 27pc

Eastern Housing declared a 27 per cent rise in profit to Tk 201.79 million for the first quarter through September of FY26 as revenue from land sales experienced a boost and finance income grew modestly.

The company witnessed higher growth in land sales compared to its apartment business in Q1 of FY26. Revenue from land sales was up 38 per cent year-on-year to Tk 480.83 million in the quarter through September, whereas income from selling apartments climbed 12 per cent year-on-year to Tk 89.86 million during the period.

Overall, revenue rose 33 per cent year-on-year to Tk 570.68 million in the quarter. A decline in the cost of sales also helped secure higher earnings.

Meanwhile, the real estate developer's finance income increased 5.74 per cent to Tk 111.06 million in the first quarter of FY26.

Eastern Housing, which started its business before the independence of the country, is involved in developing both residential and commercial properties, including shops, showrooms, office buildings, and apartments. It is immune to higher interest rates as it has no borrowings to pay off but has bank deposits.

The company has shown financial stability all along and remained consistent in dividend distributions to shareholders.

Despite higher profits, the company was unable to generate positive cash flow in the first quarter of FY26. Its cash flow slipped to Tk 0.59 in the negative per share in the quarter through September, while it was Tk 2.36 per share in the same quarter last year.

However, Eastern Housing's NAV improved to Tk 92.16 per share in September this year from Tk 89.99 in June this year.

Meanwhile, the share price of the company increased by 4.57 per cent to Tk 75.50 on Tuesday on the Dhaka Stock Exchange (DSE).

farhan.fardaus@gmail.com