Aditya Birla Real Estate Limited (ABREL) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Aditya Virla Real Estate Limited Q2FY27 Earnings Call. As a reminder, all participants' line will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand over the conference to Mr. Karan Khanna from Ambit Capital, Private Limited. Thank you and over to you.

Thank you, Ikra. Good evening, everybody. On behalf of Ambit Capital, I would like to welcome you all to the Q2 and H1FI27 earnings conference call of Aditya Birla Real Estate. From the management team, we have with us today Mr. R.K. Dalmia, Managing Director, Aditya Birla Real Estate, Mr. K.T. Chitindran, MD and CEO, Birla Estates, and Mr. K.O. Shah, CFO, Aditya Birla Real Estate. I will now hand over the call to the management team for the opening remarks, post which we will have the forum open for Q&A. Thank you, and over to you, gentlemen.

Thank you, Karan. I'm Arkel Almeyar. A very good evening to you all. India's economy maintained strong momentum in Q2 FY27, supported by resilient domestic demand and investment activity. Q1 FI27 GDP growth stood at 7.8%, ahead of the RBI's earlier students, with healthy PMI readings and GST collections. Reflecting this resilience, the RBI revised its FI27 GDP growth forecast upward to 7.1%. The external environment continued to face handwits from geopolitical tension, elevated energy prices, and tighter financial conditions. Headline CTI inflation rose to 4.45% in July to 5.4% in September. Nevertheless, the domestic growth demand remains supportive of the real estate sector. MMR remains the largest residential market, with sales of approximately Rs. 59,500 crores, up to 11% YOY. Pune and Bengaluru also maintain healthy momentum, and with absorption growing 3% YOY, and prices increased 3% in Pune and 8% in Bengaluru. Together, MMR, Bengaluru, Pune, and NCR accounted for around 65% of Pan-India sales by value. The commercial office segment remained strong, with Q2 a 527, leasing of approximately 21 million square feet, up to 6% YOY, taking 9-month leasing to a record 66.4 million square feet. ECCS remained the key demand driver, accounting for around 41% of using alongside robust demand for Gray-A and Green-certified assets. Against this backdrop, we delivered a strong H1-FI27 performance. A total income increased 309% YOY to 355 CR, including 268 CR in Q2, 155% YOY. Collection increased 39% YOY to 1465 CR in H1 FY27 with Q2 collections of P752 crores of 47% YOY. We also crossed the landmark milestone of 10,000 crores in cumulative collection across our project. Our profitability, Villa Tisya recognized EBITDA of Rs. 181 crore at a 28% EBITDA margin, while Villa Navia contributed to P. 39 crore at 35% EBITDA margin. Our financial position also strengthened. The CARE improving BPL credit outlook from AA stable to AA positive. Q2FI27 booking value stood at 298 crore, with Villa Karanea and Villa Nyara in MMA being the largest contributors, supported by sustenance across our key market. Our business development, in October 26, we announced JDE of 5.6 acres prime residential land parcel. In January phase 1, Pune, the GDP potential of around approximately 1,650 crores further strengthening our Pune portfolio and future development pipeline. At our flexible early development, we have chosen to redesign Tower C to unlock its full potential. The revised plan had approximately Rs. 1900 crores of net GDP and expected to be highly accretive, while the resultant deferment of the launch to the next financial year may enter current pre-sales. This reflects our disciplined focus on long-term shareholder values over near-term loss timeline. We continue to strengthen our redevelopment portfolio and are in active discussion to create additional opportunities across high-demand MMR micro-markets. This remains an important revenue of growth supported by trusted partnership and disciplined capital allocation. ESG remains integral of our operation. In 2026 GRE ESG assessment, BILA shared 95.9 out of 100 and a five-star rating for standing investments and 100 out of 100 for development. We were recognized as a global factor leader in both match marks and ranked first in Asia for management score. We remained focused on disciplined growth and consistent execution supported by strong balancing and a robust opportunity pipeline. Our priorities are to expand selectively across key markets, deliver high-quality development, strengthen our portfolio through business development and redevelopment, and create sustainable long-term value for all stakeholders. Thank you. We will now open the floor for QA.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Jainam Shah from Aquarius Securities. Please go ahead.

Hello, everyone.

Yes, sir.

Yes. Hi, sir. So, my question would be firstly on the pre-sales. So, we did around three in this year of pre-sales. What would be the cancellation during this particular quarter across the projects and what would be on gross pre-sales for the particular quarter?

I think we are really talking about net sales only. So we don't track the growth. So I think, suffice to say that, you know, the focus is clearly on net sales. The net sales has been about 300 crores to 98 crores. Even our current inventory, I think, is steady. And once the launches start kicking in, I think we'll really accelerate.

Got it, sir. One more thing, sir, I just wanted to understand one more thing, which is like our collection is largely lined with our construction, like we have all the collection linked with the construction. Is this understanding correct?

Yeah, yeah. Largely. Okay. Yeah, collection is very strong.

Got it, sir. Sir, what could be our, let's say, largely unbridged EBITDA margin that we generally see at the project level, any broader number at events just for the same?

The broader EBITDA margins you are talking about?

At the project level.

Yeah, our EBITDA for every project is ranging from 25% to 30%. Yeah, it's broadly our EBITDA margin.

Good. Just two more things onto this. So, if you see our cash flow that you started giving over last two quarters, in that particular thing, when we see our collection versus our construction cost as well as other project related outflow and corporate cost, if we combine everything, then we are not making any major margin if we exclude the leaving inflow as well as our construction and collection has been largely in the similar line, then how this collection and construction related outflow differs from the margin that we provide. And also, on the slide number 27, the cash flow that we are giving about the remaining estimated project cost, that also suggests that for the launch project, our margin post-launch is somewhat of around 25 odd percentage, which excludes the land, stand-duty, and approval cost. So, we just wanted to check on these two parts for the 25% odd amount of the margin number at the previous level.

So, see, the cash flow which we have given, this is what we have collected and less what are the construction spend and the other spend we have got. We also charge off all the sales, marketing, and all expenses are charged off to the, you know, P&L, including for projects, you know, which are yet to be launched. So, you know, all the expenses which are overheads are charged off to the P&L. Only the direct, you know, liaison or operations related expenses are inventorized. So, in a way, it's not like to like. The collections are only for the launch projects. But the expenses which I incur are for the entire portfolio. So, that's the way one needs to, you know, look at it. Now, coming to slide number 27, where you talk about the future potential, we have the cost, including the unsold inventory, and thereafter the surplus cash.

You have this 12,963 CR amount, which is a meaning estimated cost of the project. Does this include the admin and overheads and the corporate cost into it, or it will be excluding those?

So, it includes all the costs, the entire cost, approval, mainly approval costs, everything. All the costs related to the projects which have been launched.

So, just one thing, sir, if you see, the total sales that we have done for all the launch projects combined is somewhat of 24,500 odd CR. And our collection is almost around 900 odd CR, which suggests that around, you can say, 35% odd collection has been done, whereas 65% collection is running across the portfolio. If I upload is similar to the construction cost as well, the 35% construction cost would have incurred all the cost, and then 65% would have been left out, then our construction cost on its estimated project cost would be around 2,000 CR odd number versus 3,000 CR of total launched inventory, which also suggests we are making some 35% odd margin, and this is all the cost which we are going to incur moving forward. So, anything that I am missing of this also gives me the 35% odd number over here.

Jamin, let's take this offline. I mean, we have the other participants also waiting in queue. As I mentioned, the $12,000, which we have considered for the estimated project cost, includes all the projects, all the entire project costs of the launched inventory and not necessarily of the sold inventory. We take the balance questions offline.

Thank you. So, we have received some additional area. What has led to this new area flowing through and what is the consideration paid? Because even if I see the PPT, it says a net GDV addition of 1,900 crores. But if I take the difference of GDV between the Q1 and Q2 presentation, it indicates that the GDV addition is close to 3,000 crores. So, where am I missing?

So, essentially, Hash, what we have done is that, you know, Niyara first that we acquired later from the Wadiya, we have been able to amalgamate both of them. And we have been able to use some of those SSI from the other plot. We have been able to load it on to the current Tower C. So, actually, we are bringing forward what we otherwise would have launched at a later date. And we are now creating and optimizing this product Tower C. And therefore, we are increasing the GDV of Tower C by 3,000 crores. So, partly of that is coming from the adjacent plots, which we have now been able to amalgamate. So, therefore, now this being a very vantage location, we are redesigning the product to better configuration and optimizing it. And with that, we are pretty confident that we are able to attain much better value, which is resulting in a net increase of GDP by 1,900 crores.

Understood. So in our entire world land parcel, we should see that the entire GDP goes up by 1,900 crores.

Yeah, the GDP goes up by 1,900 crores, but for Tawar C, the GDP goes up by 3,000 crores.

Understood. And when can we now expect the launch happening in FY28?

Yeah, we're trying to do it as quickly as possible. With this redesign, I think we should be ready to come into the market by Q2.

Understood. And which are the other projects that we are planning from the pipeline for FY28 and also wanted to check when are we launching this Khar project in the current year?

Yeah, Khar should be coming sometime in Jan 5th, the coming year, but we have Vashi, new faces of Punya, also now finally, so that also.

Understood. Just wanted to check on this Injewadi project. What is our share in this project and what considerations have we paid towards this?

So, yeah, it's been a pretty attractive deal for us. The top line is about 1,650 crores. It's a rev share of 75% to us and 25% to the partner and the…

Understood, 50 crores. Okay. And in Niara, have we paid some consideration to load the additional FSI?

No, no, no. It's just a reconfiguration of the FSI.

My last question is on the NCR projects. So, for both Villa Arica and Prawa, we have seen some cancellations happening. So, Arica, this quarter also, we have seen some 114 crores of cancellations. Both the quarters put together, it's 120 crores. Even in Villa Prawa, we have seen some 7 crores of cancellations. So, wanted to check what is happening at this project and how do you see the NCR sales panning out? Because even we have Birla Lavya project to be launched this year in H2. So, how do you see the demand in NCR per se?

Yeah. So, Birla, Pravath, as you know, we had sold out the entire inventory of about 1850 crores. There have been three cancellations since all of them have been rebooked at higher prices. Because, you know, the first phase, we have sold about 3,000 crores. And in the second phase, we sold another about 1,700, 1,800 crores. Together, we have done about 4,700 crores or so, which is basically 323 apartments plus 151 apartments, so about 475 apartments. So, we had about 11 cancellations. Some of them, they canceled. So, this has been a 50-50 situation in our case. The good news is that about six of these apartments we have resold at least about Rs. 2000 per square feet higher. Sometimes this market of NCR continues to be very resilient and very strong and we are very positive and optimistic about it. And we are looking for many more projects to launch in this market.

I understood. Thanks a lot, Katie, for taking my questions. Thanks.

Thank you. The next question is from the line of Biblap Devarma from MK Global. Please go ahead.

So my first question is on the, you know, you have removed Niyara from the launch pipeline of this financial year. So, we have limited inventory to sell. And even if we sell well, there is a high chance of our pre-sales number falling short of, you know, last year's pre-sales number. So, looks like we will be doing something 7,000 crore this year. So, is my assumption correct? Do you see or you see our this year's pre-sales doing like last year's pre-sales?

This is exactly what I tell you when I refrain from giving guidance at a short-term guidance. It's very difficult because there are so many ways it could go. Happy giving a long-term guidance. Meeting the guidance, I don't want to compromise the value that clearly we can add. Continue to add more value to our investors, stockholders, to the project, et cetera, and continue to optimize and improve the GDP and the value. So, yeah, I mean, it is not 8,000 for sure for this year, but as I mentioned, we will refrain from giving a clear guidance, and rather I would be happy giving you a long-term guidance.

That's okay, sir. Second question is, you know, we have done revenue recognition in TCR and some in NCR projects, but what is the expected revenue recognition for the remainder of this financial year, and what kind of revenue recognition can we expect next financial year in FI20?

So, Mitra, most of the revenue has already been recognized. So, very few apartments, the revenue is yet to be recognized. So, the forthcoming revenue recognition is not going to be substantial.

In the financial year. And what about next year?

Next year, we'll have other projects. Currently, we have fully considered whatever we have in our portfolio.

Mitra, I also wanted to add and tell you that, you know, so we have been We've been able to recognize this revenue about four months ahead of schedule. We were supposed to do it last week, but we have delivered this project about four or five months ahead of the data timeline and what we've committed to our customers. The project has come out very well with an NPS score of 95%. So we're very happy to come out and customers are very delighted and, you know, a lot about our execution focus and capability. And this will continue to happen in all of our projects.

One final question is on the business development. We have done, I correct me if I am wrong, 2 GB of 4200 crore around. So our guidance is 10 to 15,000 crore. So are we on track to that kind of...

So, if you look at the last few months, of course, as you very rightly mentioned, we did 2,600 crores of Bashi, 1,500 crores from Kinjavadi. In March, we did about 1,600 crores again from the Khar project. We also added about 1,900 crores of extra value from now Niara Tower C. So, overall, you look at it, we have added worth about 8,000 crores in the last few months. If you look particularly at this year, you know, including Niyara, we have added about 6,200 crores. In a six-month time, as I mentioned, we are guided for about 10,000, so we have already achieved 6,000 crores in a way. But I'm pretty confident that we should be able to cross the 10,000 crores.

Thank you. The next question is from the line of Akash Gupta from Nomura. Please go ahead.

Hi, am I audible?

Yes, sir.

Yes, I'll go ahead. Hi, sir. So my question is on the sustainment sales. I mean, we have $19 billion of inventory in Burley. We have $10 billion of inventory in Thane. $3 billion of sustainment sales on a quarterly basis, it's lower than our expectations. So just wanted to understand your thoughts as to how the update is going on. Is it like in your projects, is it in line with your expectations? So that's my first question.

Yeah. So, Akash, if you look at our inventory, overall 78% is already sold. What is left is only 22%. And if you look at Niara, et cetera, I mean, I would say we have done well because there's whole six apartments in Niara combined of Tavari. How much inventory left? This number varies from project to project. We can't generalize it. We have also done reasonably well in Taranya. As you mentioned, we did about 250 crores of sales in Taranya. I think considering the kind of strong momentum we have been able to attain during the launches and whatever the balance inventory does, we are doing in a pretty steady state. In Sardanya, we did more than 1,000 crores, which is one of the highest selling launch projects. In momentum was snatched during the, whatever is a balance, it will go at a steady state. Two projects like Birla Mrida, which is not fire, we need to now, you know, there's been some negative sales also, which was again because of, you know...

My second question is on the share price. The share has corrected from 3,000 levels to roughly 1,000 right now. Now, there is definitely a mismatch between how investors are thinking about your stock and how we are thinking about our strategy. Even FY27 pre-sales, I think, from $80 billion is now going down to roughly $50-$60 billion because Nyara, which was expected to launch this year, has now been moved. So just wanted to understand how we are thinking about our long-term pre-sales guidance Because I think we were expecting roughly 15,000 crores in FY28. Now we are taking it probably to FY29. So there is definitely a mismatch. I just wanted for you to address the question. How should investors think about the company?

I think the investors should very clearly see this as a long-term investment, not a short-term, you know, linear sort of a sale company. We are continuously working for improving the long-term value of our investors. We stand firm to our commitment of reaching pre-sale for 15,000 crores by 529. We're also, as you know, continuously adding projects, new projects. We have increased our GDP value by almost 7,000 crores or 8,000 crores in the last few months. We're also trying to, you know, the GDP is going up by almost 3,000 crores. We are bringing in what would have happened in Yara 2 forward by putting it more into Tower C. So, each of these actions of ours are very carefully thought out and planned to not just pre-sales. Pre-sales is only one part of it. When we do add projects in business development, we are extremely careful how each of these projects are going to add long-term value. How is the framework turning out? Are we taking the right risk or are we speculating too much? And also in execution, we are razor sharp. We are razor focused. Execution is growing in a well-executed plan. We are delivering projects ahead of us.

Understood, sir. That were my two questions. Thank you so much.

Thank you. The next question is from the line of Pritesh Zaid from Access Capital. Please go ahead.

Yeah, thanks for the opportunity. Just, you know, continuing on the sustenance sales part question from the U.S. participants. So, I mean, Yara, we used to sell, like, 15, 20 apartments or 20, 25 apartments a year. You know, first half, you saw, like, we have sold six odd units. I know, I mean, inventory is, you know, one side of the story. But, you know, is there also, you know, some slowdown in terms of sales because of the competition around? Or you would purely attribute it to the kind of inventory that we are now left with?

So, Pratish, see, I had, you know, about four cancellations here. And each of these flats got sold. Together, the four flats, we got 15 crores of extra revenue. So, I think the demand is very strong. The brand, Vinla Nihara, has been built very strong. There is, you know, pretty strong, you know, demand, positive demand for these projects, both Tower A and Tower B. The only issue is that lack of inventory. So it will take its time. I think we have sold bulk of the inventory. We have sold a 401 out of 413 in Tower A, 119 out of 148 in Tower B. So I really don't know, I don't see any need for any rush. I think we are looking for value now. We have to get cash positive. Construction is going well. We're well capitalized. So, I mean, it will take its time. I mean, really, there's no need to rush, you know, the balance inventory as the value is continuously going up. So, we are sitting pretty in, I mean, there's no cause for any worry as far as Nihara is concerned. And now with Tawasi, we are even adding more in a very positive light.

Sure, sure. And just, yeah, and just second question, you know, see, while I think, you know, this year, Anyways, we have not guided for any pre-sales per se on a yearly basis, but, you know, declining in a year, you know, doesn't, you know, go well with, you know, how investors perceive about our business. So, in that case, you know, we have one more tower in Arika, you know, wouldn't have been a prudent, you know, to prepone some of the launches which we have kept for future, you know, to this year. Just to ensure that there is a steadiness in terms of the business rather than, you know, being lumpy of having a one very great year and then, you know, two years of, you know, flattish to decline kind of growth. So what's your thought on that?

I think we can, you know, extricate much higher value by launching Arica at a later date. We want some construction progress to happen on the other, you know, launched, you know, structures. And I think there's huge value to be unlocked at the last hour of Areca. The immediate reaction and strategy is doing well.

Sure, sure. That's helpful. And just one final two questions. If you can just provide an update on, you know, Vashi launch, will it happen this year? I know it's not there in the pipeline, but any big chance of doing it this year or most likely it should be next year?

That will be next year, not this year.

Sure. And on the business element, we spent like some 260-odd crores this quarter for land. So was it for like new acquisitions and, you know, how should we think about the spend for the rest of the, you know, two quarters in the year?

So, we've made some payment for the Thana land also. Deferred payment. Yeah, it's a deferred payment. So, we've paid some deposit for the...

And how should we look at the rest of the year in terms of, you know, spends for this 10,000 crore plus kind of BD that you're guiding?

Yeah, yeah. We are firmly, you know, positive about it. We should be able to meet that guidance.

Okay, thanks. That's it from my side. All the best.

Thank you. Hello. The next question is from the line of Abhinav Sinha from Jefferies. Please go ahead.

Hi. A couple of questions. Firstly, on the debt trajectory, and now, you know, with the inflows in from the paper business sale, what are you thinking about it over the next few years? So that's one. And secondly, if you could also include commentary on how the commercial build-out is being planned from here on in the medium term. Thank you.

So, Avina, in terms of our balance sheet is very, very well capitalized. We have cash balance mutual funds for funding the acquisition. As Katie mentioned, we've done almost 7,000 crores of GDA edition in the last six to seven months. We are very confident we should be able to do around another 3,000 to 5,000 crores of addition. Our target is 10 to 15. So we are on track for that. And broadly, what we have been doing in the past, it has been around 15 to 17% of the GDB value which we are doing. So you can accordingly assume the utilization of the cash in that manner.

The commercial part, I think, as I mentioned, also about 1.3 million square feet of a new commercial building. We are in the planning stage, starting commercial on that. I think we want to be, you know, the markets...

Kedithav, just putting these two things, are you, like, willing to now run mostly a net cash balance sheet, or we can still see gearing go back to, say, 0.5 or 1x over the medium term?

So, we are not averse to carrying the balance sheet. So, I mean, today we are netbed zero. So, we are open to that. It depends on the acquisition of it. But again, to repeat what Katie mentioned, we will be very careful in what the BDV will do, and we will be prudent. And we have a strong pipeline, and we feel confident that we will achieve the BD guidance which we have given.

Thanks, Anald Abbas.

Thank you. The next question is from the line of Ran Tawa from Jain Investments. Please go ahead.

Hi, thank you. Can you all hear me? Yes. Okay. So, I just joined late, but I'm not sure if the question has been already asked or not. Yes, that means that it has been asked already. So, I just want this case one, the next financial is the RERA rate, right? May 28th, March 28th. Yeah, that's right. Yeah, so I just want to understand that there is a 3,000 crore top line pertaining to phase one year, how much does it translate into the EBITDA? Because I'm very new to this revenue recognition model of this previous day, and I want to understand the revenue recognition path and how much it will translate into the EBITDA I'm not sure whether there's been some part of the revenue is already recognized, and some part of EBITDA is already taken. Can you just throw some light on that?

So, we have not recognized any EBITDA for Niara Tower A. Yes, the RERA date is March 28th. So, we will start handing over, and as and when the customers take possession, that's how we'll be able to recognize the revenue on the project. So, some of it will come in March 28th, and some of it will come in March 29th. It depends on how the customers take the possession. Roddy, the margins.

Assume that there's a 3,000 crore revenue realization happened, peddling to Niyara, and 80% position happened. So, that will, let us say, translate to 2,500. So, 40% of 2,500, around 1,000 crore, the books will be there. I mean, EBITDA will be there in the books for next year, right?

Yeah, something like that.

Oh, okay.

It will be split, yeah. As you mentioned, that's what is at 80%.

Sorry, I didn't catch you.

It will be split between next year and the forthcoming year. That's what I mentioned.

Okay, but March 28th is a position date, right? By the time everyone has to, on an error date, everyone should have taken the position by March 28th, or there will be spillover happens to the following year as well?

No, the project is on schedule. The revenue recognition happens when you hand over the possession to the customer. So that's why we say that it will be partly in March 20 and partly in March 29.

So based on the current situation, how much it may have in the next financial year and then the subsequent year, what we have sold roughly, based on the value of our experience?

It's difficult to predict now. It depends on how customers take possession, how they pay off quickly. It's all completely there to make the payment. All of them will do it, but maybe half of them will do it. We don't know.

Yeah, I understood. And from EBITDA to net profit, based on the depreciation or anything, how much percentage it may go up, any rough estimates, interest, or…

We don't give those estimates. As of now, we're at net debt zero, so in that sense, you can estimate it accordingly.

Okay. Got it.

Thank you. Ladies and gentlemen, you are requested to restrict your question to one per participant. The next question is from the line of Bhavin Modi from Anandrathi Share and Talk Brokers. Please go ahead.

Yeah, thanks for providing the opportunity. Sir, I just wanted to ask two questions. One is, you know, sir, how should we see the mix of composition from Niyara CE? Would it be, you know, somewhere, you know, maximum units would be somewhere between the 2,500 to 5,000 square feet, you know, being, you know, the, you know, configuration being the sweet spot, you know, to that micro market? And the second question is more bookkeeping related. The finance cost, you know, is being soon as a nil. But I do understand we do have, you know, LRD, so we may have incurred some, you know, finance cost. So am I missing out on something on that part?

FSI, which we are launching, we are still in the process of, you know, on the higher floors. In the inventorized, as to the interest in the console books, yes, in the standalone books also, there is an interest which is there. And what happens is the utilization, the allocation of the interest depends on its utilization, And significant proportion is being inventorized. That's why there is no interest charge in the books.

Got it. Thanks a lot.

Thank you. The next question is from the line of Haman K, an individual investor. Please go ahead.

Sir, I just wanted to get a better idea on Vidla, Anayu, and Mrita. So, both of these projects, I think, are targeted for March 29, and we've, I think, sold less than half of the inventory in Anayu and Mrida is much lesser. So, just wanted to understand how the business development is ongoing at these two projects.

So, Amal, Anayu, I think your understanding is not correct, because there was only eight apartments, five of them are already sold. Rida, yes, that is a plotted development in March of this year, where, of course, there has been some kind of, it has been impacted. So, we are trying ways to improve the reach, etc., create a strong investment product, improve the sales. So, having said that, we have sold almost 160 plots, and I think, you know, we will find a way to push it.

And sir, as you mentioned that the lot of factors that are affecting the demand right now, whether it's in terms of interest rates or global bonds rates or just the geopolitical issue, is it a pressure that's being seen in a particular segment of the market? Or is it something that's been across all segments? Like, is luxury the only one that's insulated as of right now?

Yeah, the premium and luxury market continues to grow, strong demand. Geographically, also, you look at Bangalore, Bombay, Pune, NCR continues to be very resilient. Strong market prices are increasing. Absorption is also increasing. So, you know, I think any market above one crore is still showing very strong potential. The market below that is kind of contracting, showing time for businesses, etc. But otherwise, all the markets above, OnePro still showing very strong resilience, largely led by launchers. Launchers are showing great momentum in each of these segments.

Got it, sir. And just the last question in terms of GDP edition that you guided that the 3,000, 4,000 that will be targeted till the end of the year, or is it going to be primarily MMR? Okay.

Thank you.

Thank you.

The next question is from the line of Hamit Sanghvi, an individual investor. Please go ahead. The person you are speaking with has put your call on hold. We'll move to our next speaker. The next question is from the line of Jainam Shah. It is a follow-up question. Please go ahead.

Yeah, thanks for the opportunity again. Just one thing, like during the last call, we were mentioning that we are going ahead with the approvals for the Nihara 3 and we will be launching it by made of Q3. So what exactly, you can say, a moment wherein we changed the plan to increase the JDB by around 2000 CR and what kind of design changes or something material that has eventually came up to change this altogether because we were going ahead with it and we were about to launch it in Q3. So, just if you can give a broader sense on this particular thing.

So, Jainal Shah, I have already, you know, spoken about it. We did amalgamation of both the plots, the original Niyara plot and the one we acquired from the Wadiya Slater. And suddenly we saw there is a good potential to, you know, just because the sheer location of Tawar Sea, we could add more and bring forward the FSI we were planning to launch at a later date. So suddenly we saw that scope to design the product because the way the tower C was oriented was far more advantageous than where the location of the other towers would have been eventually when the plot number B would have not developed. So why not take the advantage of adding more value to this? That was precisely the idea of this. And it so came out with design, it has come out wonderfully well. We are able to increase the GDP by 3,000 crores. Something which is very valuable, and therefore, we decided to take this call.

You got it, sir. This commercial would be in line with the Neera 3? Like, we were, you can say, expected to start it in the Q3, and probably the launch, or you can say the rental would have been four years from that particular date. So, it would be also, you can say, maybe, go over by one year or so.

Yeah, commercial, we already started planning for it, and the design stage.

Thank you.

The next question is again a follow-up question from Harsh Pathak from Motilal Oswal Financial Services Ltd. Please go ahead.

Yeah, thanks for the follow. I wanted to check on two things. One is what is the construction cost that we are envisaged for the current year? And for the annuity assets, Katie, like you mentioned that we are in the planning stage. So when do we expect the capex to start? And what is the total capex that we think that we will be incurring?

Hajj, the construction costs that you're expecting for the entire financial year would be around 1,300-odd crores.

CapEx, I mean, we start in cutting CapEx from this year itself. We start designing and also, you know, applying for approval, getting the premium paid for FSI, etc. The total, it's for commercials.

Yeah, so a combination of debt and equity, I mean, which we like to put on. 1,500 crores. 1,500 crores.

1,500 crores over a period of next 3-4 years? And lastly, on the Pune project, the Hengewadi project, what are the margins that we have based on? What interests that we have underwritten the project?

About 30%.

Okay, sure. Thanks a lot for taking my program.

Thank you. We'll take the last question from the line of Sahil Vaidya from Seqman Capital. Please go ahead.

Good evening, sir. So, previously you mentioned your rentals will go from 150 to 1,500 crores. So, is it possible, can you give the break? Because if you see, 150 is for your operational commercials, And 800 will be coming from the 1.3. So, the rest will be coming from the 2.3 million square feet.

So, this 150 itself, you know, over a period of time, I'm hoping we'll go, you know, beyond 200 crores as, you know, rentals keep, you know, the premium rentals. So, Century Bhavan's redevelopment is another thing in the offering. We are constantly looking and participating in auctions and for the right, you know, mixed-use parcels and also focused land parcels in both Mumbai and NCR in prime locations. With that together, I think we should be able to build a portfolio beyond 1,500 crores.

Okay, so this 1,500 crores of rental does not include the 2.3 worldly plot.

Worley plot? 2.3 is which one?

The 2.3, the 10-acre one, the Vardia, that you acquired from Vardia groups.

No, no, no, that's part of it, no, that is American made it, it's part of that.

Okay, so that total will be, okay, okay. No, no, I'm saying that 1,500 rental will include that 2.3 million square feet also.

Yeah, yeah, since now that is separate, so see, what we have estimated for early is, we have around 1.3 commercial development, and the new plot, which was, We will start with 1.3 commercial development. This is on slide number 14.

Yeah, that doesn't include this 2.3, absolutely. So, it is clearly laid out in this chart.

Yeah, okay. Thank you. Thank you.

Ladies and gentlemen, that was the last question. I would now like to hand the conference over to the management for closing comments. Over to you, sir.

Thank you, everyone, for taking out time and joining us today's call. We are very excited for the time to come, and we remain focused for executing our strategic discipline, strengthening our portfolio, and delivering sustainable long-term value for our stakeholders. Thank you for your time and support to our business. Thank you so much.

Thank you. On behalf of Ambit Capital Private Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.