IRSA Inversiones y Representaciones reported first‑quarter fiscal 2026 revenue of ARS 129.259 billion, a 9 % year‑over‑year increase, and a net gain of ARS 163.438 billion—turning a Q1 FY 2025 loss of ARS 143.662 billion into a profit. The turnaround is largely attributable to a favorable revaluation of investment properties, which generated a gain of ARS 219.935 million in fair‑value adjustments versus a loss of ARS 225.499 million in the prior year. This one‑time valuation gain lifted the company’s earnings and offset the operating losses that had plagued the previous quarter.
The operating profit for the quarter turned positive, although the company did not disclose the exact figure. The net gain of ARS 163.438 billion reflects both the fair‑value uplift and a modest improvement in core rental operations. Adjusted EBITDA from the rental segment grew 3.5 % YoY to ARS 64.256 million, driven by a 6.6 % rise in shopping‑mall revenue and a 4.1 % increase in office‑segment EBITDA. However, real tenant sales in shopping malls fell 7.0 %, indicating that while overall rental income expanded, consumer spending in retail locations remains under pressure.
Net debt rose to ARS 1.888 trillion from ARS 1.791 trillion, a modest increase that keeps the company’s leverage comfortably low relative to its asset base. The balance‑sheet strength is reinforced by a market capitalization of roughly USD 915 million, positioning IRSA as a leading player in the Argentine real‑estate market amid a recovering economy.
The earnings beat is clear: basic earnings per share rose to ARS 204.04 from a loss of ARS 192.26 in the same quarter last year, while diluted EPS improved to ARS 188.31. The beat is driven by the fair‑value gain and disciplined cost management, which allowed the company to maintain profitability despite the decline in real tenant sales. Management’s focus on maintaining full‑occupancy in premium office spaces and the continued growth of its shopping‑mall portfolio suggest a resilient core business that can weather short‑term retail headwinds.
Overall, IRSA’s Q1 FY 2026 results demonstrate a strong rebound from the previous year’s losses, underpinned by a significant fair‑value adjustment and steady rental‑segment performance. The company’s low net‑debt profile and solid market position provide a solid foundation for continued growth as the Argentine economy recovers.
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