Jamshri Realty’s record shows a company that has not reported a profit in at least six years, yet continues to convert most of its salary costs and all of its borrowing costs into assets on the balance sheet. The promoter family runs the company through repeated one-year appointments, borrows from itself, and has secured shareholder approval for a ₹10 crore promoter loan that can convert into equity at the lender’s option. Borrowing limits have been raised to ₹100 crore, with term loans secured against future receivables and rentals and backed by promoter-family guarantees.
Key findings
- Six years of losses while salary and borrowing costs become assets
Major- Jamshri Realty reported losses of ₹5.49 crore in FY22, ₹4.00 crore in FY23, ₹3.19 crore in FY24, ₹1.24 crore in FY25, and ₹0.14 crore in FY26. The company capitalised 92.22% of salary costs as Capital WIP in FY20 and FY21, 87.35% in FY22 and FY23, and 79.69% in FY24 and FY25, citing that more than 90% of space was under development. Borrowing cost of ₹2.19 crore was capitalised and reduced from finance costs during FY26, with ₹2.54 crore capitalised in FY25. - Director loans, rent, and revenue shares flow through related entities
Major- The company took loans from directors of ₹71,00,000 in FY2019-20, rising to ₹4,11,65,168 in FY2022-23 and ₹3,10,33,000 in FY2024-25. Shareholders approved a Special Resolution on 22 September 2025 authorising borrowing from directors and promoter companies up to ₹10,00,00,000 with an option to convert the loan into equity shares at the lender’s option. For FY2021-22, the company paid rent of ₹36,00,000 to a director, gave a deposit for rent of ₹8,40,00,000 to Bimla Holdings Company Private Limited, and paid a 35% revenue share of ₹22,08,502 to the same entity. - Borrowing limits raised to ₹100 crore, secured by future cash flows and promoter guarantees
Major- The Board resolved on 23rd July 2026 to increase borrowing limits from ₹75 crores to ₹100 crores and to create charges on properties up to ₹100 crores. A term loan from Axis Finance Limited was outstanding at ₹36.19 crore as at 31.03.2026, secured by immovable property and future receivables and rentals, with guarantees from Mr. Rajesh Damani, Mrs. Bimladevi Damani, and Mr. Ankit Damani. The borrowing limit was previously increased from ₹50 crores to ₹75 crores by special resolution at the AGM on 13th September 2023, with 53,070 votes in favour and none against. - Promoter family control runs through one-year reappointments and near-zero public votes
Major- Shri Rajesh Damani, son of Managing Director Premratan Damani, was re-appointed as Joint Managing Director for one-year terms in each of FY2020-21 through FY2025-26, with the latest term effective 1 October 2025 and a further re-appointment proposed for 1 October 2026. At the 23 September 2025 AGM, the resolution to appoint him received only 367,460 votes in favour, 5.2596% of outstanding shares, with the promoter group abstaining entirely. At the 1 October 2020 AGM, his re-appointment passed with 52,590 votes in favour, of which 52,390 votes came from the promoter group and only 200 from public non-institutions. - Property services now drive nearly all segment profit, with no credit loss ever booked
Minor- Property & Related Services revenue rose from ₹1.77 crore in FY23 to ₹4.86 crore in FY26, while its PBIT margin improved from -5.06% in FY23 to 44.28% in FY26. Hospitality Services PBIT margin was -58.72% in FY23, -80.58% in FY24, -46.20% in FY25, and -1.72% in FY26. The company has not recognised any loss allowance on trade receivables, expecting no credit loss, in each of FY20 through FY26. - Auditor rotation was routine, with no qualifications or adverse remarks
Clean- M/s ADV & Associates served as statutory auditors until their term expired at the 114th AGM in FY2021-22, when the Board recommended M/s Mittal & Associates for a five-year term. The FY2022-23 CARO report states that statutory auditors resigned during the year due to rotation, with no issues, objections, or concerns raised by the outgoing auditor. M/s Mittal & Associates continued as statutory auditors through FY2025-26, with the audit report dated 21st May 2026.
What to watch
- Solar power plant purchase from a related party. The FY2025-26 AGM notice includes Item 7, an Ordinary Resolution to approve purchase of a Solar Power Plant from Rampro Consultants Pvt Ltd, which may be construed as a Related Party.
- Conversion option on the ₹10 crore promoter loan. The Convertible Loan Agreement approved on 12 August 2025 allows the promoter or director lender to convert the loan into equity shares in whole or in part at the lender’s option.
- Further borrowing limit increases. The Board resolution dated 23rd July 2026 raised borrowing and charge-creation limits to ₹100 crores; any further increase would go to shareholders.
- Re-appointment of Shri Rajesh Damani. The Board approved his re-appointment as Joint Managing Director for one year effective 1 October 2026 on 23 July 2026, to be placed before shareholders.
- Renewal of joint development agreements. The Joint Development and Revenue Sharing Agreements with Bimla Holdings Company Private Limited and Vithoba Textiles Private Limited expire on 31 March 2029.
Bottom line: This is a disclosed record with a clean audit trail, but the economics are thin: six years of losses, salary and borrowing costs parked in capital work-in-progress, and a promoter family that finances, guarantees, and governs the company through related entities. The risk is one of opacity and control rather than hidden fraud. Watch whether the ₹10 crore convertible loan converts, whether the solar plant purchase from a related party proceeds, and whether borrowing limits rise again.