Behsaz Kashaneh Tehran (Sabhesaz) Under the Lens: A 74% Gross Margin and 1,877 Billion Toman Profit; How Much Is Value Creation, and How Much Is Cashing In Inflation? (Sunday, 19 July 2026)

Behsaz Kashaneh Tehran, trading as Sabhesaz on the main board of the Tehran Stock Exchange, is one of the most heavily traded names in the real-estate group, and it closed its fiscal year ending 30 Azar 1404 (21 December 2025) with striking numbers: a gross margin near 74% and audited net profit of about 1,877 billion tomans. In this report, in the tradition of Sahmino's fundamental analyses, we go behind that dreamlike margin: where this profit comes from, how much of it is "value creation," and how much is cashing in the inflation accumulated in land and property. This analysis is not buy or sell advice.

The company at a glance

Behsaz Kashaneh Tehran is a property developer and seller: it holds land and projects in various parts of the country (historically concentrated in Tehran), mostly builds residential and office projects through partnership arrangements, and recognizes revenue from selling property and transferring projects. Per the company's last annual general meeting report (as cited by market media), its projects nationwide were stated at around 218,000 square meters. A key point for reading this scorecard: the company's fiscal year ends 30 Azar (21 December), so its "1404" covers December 2024 to December 2025, and the high-risk developments of the first half of 1405, including the July war, fall outside this scorecard.

Market snapshot of the symbol

The data below refers to the last trading session recorded in the reporting window, Wednesday 24 Tir 1405 (15 July 2026); the bourse is closed Thursday and Friday. The latest price tracked on Sahmino's own feed on the morning of Sunday 28 Tir 1405 (19 July 2026) was about 1,395 rials, meaning the stock has stayed under pressure since. Live detail is on the Sabhesaz price page in Sahmino's prices section.

One meaningful observation: in the 15 July session, when the overall index (TEDPIX) fell 0.63%, Sabhesaz dropped about 2% and touched the daily floor intraday. In wartime, the market sees housing transactions at risk of stagnation, and that worry spreads straight to real-estate stocks. This is only an observation, not a signal.

FY 1404 versus 1403 (both audited)

Figures for both years are drawn from audited financial statements (all amounts in million rials):

Earnings per share for both years are computed on the old capital, because the capital increase was registered after the fiscal year ended; we turn to its effect below.

The mechanism: where does a 74% margin come from?

This table tells a clear story. Revenue grew only 15% while cost of goods sold stayed roughly flat; the result was gross margin jumping from 69.6% to 73.7%. A margin like that in construction does not come from "efficiency"; it comes from historical-cost accounting. Behsaz sells property that has sat on its books for years at far lower prices, and in Iran's chronic inflation the gap between the day's sale price and the book cost widens every year. In Sahmino's terms, much of this profit is "cashing in the inflation accumulated in land and property," not new value created in that same year, the same separation of nominal from real return we lay out in our framework for asset allocation in Iran's inflationary economy.

The other side of the coin is a warning. Revenue growth of 15% in a year when average inflation reached 57.7% by the central bank's reading (Khordad 1405, June 2026; 83.1% year-on-year) means the company's "real" sales at constant prices clearly fell, whether from housing-market stagnation or the lumpy timing of project sales. The 35% net-profit growth came more from margin expansion and from a 62% drop in the tax expense (effective rate falling from 12.2% to 3.8%) than from selling more; and even that 35% nominal growth trails the inflation rate, meaning real profit did not grow either. A third point: finance costs tripled; the figure is still small relative to profit, but the direction is worth watching.

The 100% capital increase and its effect on EPS

The company's extraordinary general meeting approved a 100% capital increase from retained earnings, and its registration notice was published on 15 Ordibehesht 1405 (5 May 2026); capital rose from 20,130.8 to 40,261.6 billion rials. The arithmetic for a shareholder: the 933-rial FY 1404 EPS is diluted to about 466 rials on the new capital. The data source's 413-rial estimate is lower still, probably reflecting a trailing twelve-month profit; we report both figures as they are. The perennial lesson: in years of a capital change, the comparison metric is "net-profit growth," not "EPS growth." As for the FY 1404 dividend, the meeting's resolution is on record but the amount was not verifiable in the sources available to us; for reference, the FY 1403 dividend was 340 rials (close to half of that year's profit), and the company has a history of paying out over 50%.

The Vanak case: a fresh asset catalyst

The company's most important event this year is the official disclosure of 5 Khordad 1405 (26 May 2026): "final court ruling on the Vanak property in the company's favor." The Vanak project was for years the subject of a legal dispute with a partnership counterparty and had repeatedly come up at recent general meetings around its rescission and offset. The ruling becoming final in Behsaz's favor settles the status of one of the company's most valuable assets in one of Tehran's priciest districts, though the financial scale of the ruling, its execution timeline, and how it will be reflected in the financial statements still await further disclosure and were not verified in this report. Alongside it, several related-party transaction disclosures (Article 129) were recorded in Ordibehesht 1405 (May 2026), whose details a retail shareholder can follow.

Risks

First, housing-market stagnation amid the war and shrinking household income; for a company whose engine is "selling property," lower transaction volume means directly fewer or later sales, and the real drop in sales in this very FY 1404 shows the risk was already active. Second, the lumpy nature of revenue: each year's profit is tied to which property sells in which quarter and is not simply extrapolated. Third, the margin's dependence on historical cost: the more new projects (at today's costs) make up sales, the more the 74% margin naturally compresses. Fourth, legal and related-party risks: despite the positive Vanak ruling, enforcing property judgments in Iran is slow, and Article 129 transactions need monitoring. Fifth, policy risk (property and capital-gains taxes, construction levies). Sixth, the broad market backdrop: the divergence between the bourse and parallel markets continues, and Sabhesaz, roughly 50% below its yearly high, is itself evidence of that pressure.

Valuation in context: observation, not advice

At the 1,438-rial close of 15 July 2026, Sabhesaz's market cap is about 5,790 billion tomans, that is, about 3.1 times its audited FY 1404 net profit (and 3.5 times on the data source's trailing estimate), against the real-estate group's 7.12. This deep discount can be explained by three factors: the market's doubt about the repeatability of asset-sale-driven profits, housing stagnation in a wartime setting, and the fact that for real-estate companies the important complementary metric is net asset value (the current-day value of the property portfolio), which this report did not verify and without which any judgment on "cheapness" stays incomplete. We saw the same logic in analyzing a real-estate peer, Separdis and its discount to net asset value. On the other side, that same discount plus very high liquidity, a 30% free float, the Vanak ruling, and a dividend tradition are the reasons buyers of this stock usually cite. These are all "observation"; none is a recommendation to buy, hold, or sell.

What to watch

• Monthly activity reports: the amount and floor area of monthly sales, a thermometer of the company's stagnation or recovery amid the war.
• FY 1405 interim statements: the real path of profit after the capital increase.
• Further Vanak disclosures: the financial scale of the ruling and its execution timeline.
• The exact approved FY 1404 dividend and its payment schedule.
• The trend in finance costs and the status of the company's ijarah sukuk.
• Official Tehran housing-transaction data and real-estate tax policy; related bourse events on the Sahmino calendar.

Bottom line

Sabhesaz is a textbook Iranian "asset stock": a 74% gross margin and audited profit of 1,877 billion tomans whose main root is selling property carried at historical cost in an economy with inflation above 50%. Nominal profit growth (35%) is striking but below inflation, and revenue growth (15%) at constant prices means lower real sales. The 100% capital increase from retained earnings has diluted EPS to about half, and the final Vanak ruling is a real but not-yet-quantified asset catalyst. With a price-to-earnings ratio of about 3 against the group's 7, the market has priced in both these risks and wartime housing stagnation; a fuller verdict needs a reliable current-day value for the property portfolio and a look at first-half 1405 sales. This analysis is not buy or sell advice and is merely a framework for understanding this symbol better.