Novaland (NVL) Projects 2026 Revenue to Triple to VND 22.7T, Profit Flat

Overview

Novaland (NVL) has announced its 2026 business plan, projecting revenue to surge to VND 22,715 billion, a more than threefold increase from its 2025 estimate of approximately VND 7,000 billion. However, net profit is expected to remain flat at VND 1,852 billion, as the company cited headwinds from high interest rates and rising construction material costs. This guidance highlights the margin pressures facing Vietnam’s real estate sector despite anticipated top-line growth.

Key Facts

• Novaland’s 2026 revenue target is VND 22,715 billion, representing growth of over 224.5% compared to the 2025 estimate of ~VND 7,000 billion.
• 2026 net profit is projected at VND 1,852 billion, essentially flat compared to 2025.
• The company stated that 2025 profit was largely driven by a provision reversal for the Lakeview City project in Ho Chi Minh City, not core operations.
• Novaland has reduced its retail bond debt by approximately 18% since the end of 2022, cutting over VND 3,324 billion in debt through share issuance for debt swaps and conversion of part of an international bond package.
• For retail bondholders, Novaland has resolved 30-40% of the outstanding debt and aims to settle about 90% by 2026 through asset sales, real estate product swaps, or share conversions.
• Total credit limits approved and expected for projects amount to nearly VND 30,500 billion, with disbursement following construction progress.
• Management cited significant increases in prices for bricks, stone, and sand, requiring the use of substantial provision funds to offset higher construction costs.

What Happened

During an information-sharing session, representatives of Công ty Cổ phần Tập đoàn Đầu tư Địa ốc Nova (Novaland) presented the company’s 2026 business plan, which is slated for submission to the Annual General Meeting of Shareholders. The plan forecasts revenue of VND 22,715 billion and net profit of VND 1,852 billion. Management explained that the flat profit projection, despite the substantial revenue growth, is due to a shift in profit composition: 2025 profit was primarily from a provision reversal related to the Lakeview City project, whereas 2026 targets reflect core business operations.

Novaland’s leadership attributed the cautious profit outlook to external pressures. They noted that global geopolitical instability, including U.S.-Iran tensions, forced a revision of earlier, more optimistic scenarios. Domestically, high interest rates are directly impacting market purchasing power, as most real estate buyers use financial leverage, and the company must also support customer interest rates, increasing costs. Additionally, sharp rises in construction material prices have elevated project expenses, necessitating the use of provision funds to cover the increases.

Market Context

Novaland (NVL) trades on the Ho Chi Minh City Stock Exchange (HOSE). The stock closed at VND 17,000 on April 14, 2026, down 1.16% on volume of nearly 22 million shares. This announcement comes as Vietnam’s real estate sector continues to navigate a challenging environment characterized by tight credit conditions and fluctuating demand. The flat profit guidance, despite robust revenue targets, may reflect investor concerns over margin sustainability in the current economic climate.

Strategic Significance

The 2026 plan underscores Novaland’s strategic pivot towards deleveraging and operational focus. By targeting significant revenue growth while managing profit expectations conservatively, the company is prioritizing debt resolution and project execution over aggressive earnings expansion. The progress on bond debt reduction, particularly through innovative mechanisms like debt-for-equity swaps, is a critical step in restoring financial stability and investor confidence. This approach aligns with broader sector trends where developers are balancing growth with risk mitigation amid macroeconomic uncertainties.

What to Watch

• Submission and approval of the 2026 business plan at the upcoming Annual General Meeting of Shareholders.
• Quarterly earnings reports, starting with Q1 2026, to monitor revenue trajectory and margin performance against the guidance.
• Updates on bond debt resolution, specifically the achievement of the 90% settlement target for retail bondholders by 2026.
• Disbursement progress of the nearly VND 30,500 billion in credit limits for projects.
• Trends in interest rates and construction material costs, as these are key variables affecting Novaland’s profitability.