Novaland (NVL) Q1/2026 Net Profit Hits 860B VND, Reversing Year-Ago Loss

Overview

Novaland Group (NVL) reported a net profit of 860 billion VND for the first quarter of 2026, reversing a loss of 476 billion VND in the same period last year. Revenue doubled to 3,587 billion VND, driven by a 111% increase in property transfer revenue from key projects such as Aqua City, NovaWorld Phan Thiet, and NovaWorld Ho Tram. The company has already achieved 46% of its full-year profit target of 1,852 billion VND.

Key Facts

• Q1/2026 net profit: 860 billion VND, compared to a loss of 476 billion VND in Q1/2025.
• Revenue: 3,587 billion VND, up 100% year-on-year, the highest in five quarters.
• Property transfer revenue: 3,452 billion VND, up 111% year-on-year.
• Gross profit: 1,889 billion VND, up 2.9 times year-on-year.
• Full-year 2026 target: revenue of 22,715 billion VND (3.2x 2025) and net profit of 1,852 billion VND.
• Q1 completion rate: 16% of revenue target and 46% of profit target.
• Total assets as of March 31, 2026: 253,145 billion VND; debt: 193,308 billion VND, with bond debt down 5% to 23,800 billion VND.
• Chairman Bui Thanh Nhon’s quarterly compensation: 300 million VND (unchanged); CEO Duong Van Bac received 1.2 billion VND.

What Happened

Novaland Group released its consolidated financial statements for the first quarter of 2026, reporting a strong turnaround from a loss to a profit. The company’s revenue doubled to 3,587 billion VND, primarily from property transfers at projects including Sunrise Riverside, Aqua City, NovaWorld Phan Thiet, and NovaWorld Ho Tram. The gross profit margin improved as cost of goods sold grew slower than revenue, resulting in gross profit of 1,889 billion VND, nearly three times the prior year.

Financial income also rose 58% to 816 billion VND. The company noted that key projects are being actively developed, with new amenities such as pickleball courts, restaurants, and sports complexes being opened. In Ho Chi Minh City, two projects, Victoria Village and The Grand Manhattan, are in the final stages and expected to be handed over from Q2/2026 and within 2026, respectively.

Market Context

NVL shares closed at 18,000 VND on April 15, 2026, up 2.63% with high volume of 35.9 million shares. The stock has been recovering from a prolonged downturn, and the strong Q1 results could support further upside. The real estate sector on HOSE has seen mixed performance, with developers focusing on project deliveries and debt reduction. Novaland’s bond debt declined nearly 5% to 23,800 billion VND, indicating progress in deleveraging.

Strategic Significance

Novaland’s Q1 results demonstrate that its strategy of accelerating project handovers and monetizing land rights is gaining traction. The company’s ability to achieve nearly half of its full-year profit target in one quarter suggests strong operational momentum. The reduction in bond debt and stable compensation for leadership indicate a focus on financial discipline. However, the high inventory of 154,608 billion VND and total debt of 193,308 billion VND remain key risks. The company’s success in delivering projects in HCMC and tourist destinations will be critical for sustaining profitability.

What to Watch

• Q2/2026 earnings release for continued profit momentum and revenue growth.
• Progress on handover of Victoria Village and The Grand Manhattan projects.
• Updates on debt reduction, particularly bond debt and bank loan repayments.
• Any changes in compensation for top executives as a signal of governance alignment.
• Market reception of NVL shares post-earnings, including foreign investor flows.