Max Estates Limited (MAXESTATES) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day, and welcome to Mass Estates Ltd. Q4-FI26 Earnings Conference Call. As a reminder, all parties of the lines will mean the lesson only more, 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 touch-down phone. Please note that this conference is being recorded. Also, this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risk and uncertainties that are difficult to predict. And now in the conference, with Mr. Sian Vachani, MD and Vice Chairman of Max Estates Limited, thank you and over to you, sir.

Thank you, and good morning, everyone. Welcome to Max Estates Q4 and the Full Financial Year 26 Earnings Conference Call. Joining me today are my colleagues Nitin Kansal, our Chief Financial Officer, and Archit Goyal, Head of IR and Corporate Finance, as also our Investor Relations Advisors at SGA. The investor presentation and press release has been filed with the stock exchanges and are available on our website. I hope you've had an opportunity to go through them before this call. Let me start with a brief overview of the market context before moving into a performance and closing with an outlook for the future. Delhi NCR's residential market moderated in 2026, particularly over the last six months amid global uncertainties and overall a cautious sentiment. Having said that, Max Estate still crossed 5,300 crores in pre-sales for the second consecutive year, affirming our strength of our platform and the trust that our clients and our stakeholders place in us. On the commercial side, office leasing hit approximately $2.8 million in Q4, which was 36% up quarter-on-quarter, with the national capital region recording the highest rental growth amongst major Indian cities at about 15% year-on-year. For the first time in both, I think, NCR and Bangalore, average rents have crossed 100 rupees a square foot, and vacancy rates continue to compress. Obviously, the macroeconomic development worth flagging is the escalation of the West Asia conflict, and that has introduced some near-term caution into not only the residential sentiment on the demand side, but also pressure on the supply side in terms of costs. However, India's market today, we believe, is significantly more end-user-driven than in previous cycles, and that, I think, is particularly true for NCR as well. For MaxS8 specifically, with a predominantly domestic NCR-focused Firebase, we believe that we are well-positioned. Our launch plans and long-term conviction remain very much intact. Just to give you an update on the FY26 performance in terms of headline numbers on the residential business, the full-year pre-sales came in at 5,305 crores, the second consecutive year that we've crossed the 5,000 crore pre-sales milestone. Our three-year pre-sales CAGR from FY24 stands at 70%. Importantly, in Q4 FY26, we recorded 3,300 crores of bookings, driven by two major launches, Estate 105 in NOIDA and Max 1 in Sector 16B in NOIDA as well, making Q4 by far our strongest quarterly performance ever. Collections for the year stood at 1,578 crores, which is up 61% year-on-year. This is an important operating metric because it directly reflects our ability to fund construction. Our payment plans are structured to generate engine collections in the range of 20% to 25% of the sales booking, and also this reflects a strong quality of sales that we continue to do. And obviously, as the book has grown, the collection engine has strengthened meaningfully. Average realizations continue to move up 18,000 rupees a square foot in FY24 to 20,000 rupees approximately in FY25 and 23,000 rupees in FY26. That's a 29% increase in two years, a combination of better micro market positioning and improved product quality and genuine brand power. Cancellations remain very, very negligible, a strong reflection of our strong buyer commitment and the end user nature of our buyer base. I now want to spend a moment on something that our reported P&L doesn't fully capture, but which I think is one of the most important dimensions as to how one can think about MACS stage today. Total revenue from launch projects yet to be recognized in our income statement stands at 16,310 crores. Of this, 12,500 crores is already sold, contracted, and locked in. Waiting for the completion of the project milestone to trigger the revenue recognition. The embedded Profit Before Tax, PBT, from these launched projects is estimated at between 4,200 to 4,900 crores. This is a critical distinction. A substantial majority of our future reported revenues already contracted, derisking the earnings trajectory materially. Looking ahead, our residential pipeline stands at over 17,200 crores. In FY27, we've already launched the Terraces in May 26th as the newest precinct within Estate 361, offering 1.5 and 2-bedroom smart homes and duplex loft residences. The project has a development value of about 1,200 crores and is part of Estate 361. We also plan to launch our Sector 59 project on golf course extension in Gurgaon with an estimated GDV of about 3,900 crores. Estate 105 has been strategically repositioned, driven by a strong market response with a revised mix of residential and service departments. This calibration has doubled the project GDV from 3,000 to 6,000 crores. Phase 2 is planned in FY27. We continue to target adding approximately 2 million square feet of residential development and 1 million square feet of commercial space annually, building the platform to a de-risk and a steady approach. On the commercial side, all our three assets continue to operate at 100% occupancy, which is perhaps the single most important data point for our commercial business. It validates the quality of the product, the strength of the tenant demand, and then the micro markets that we operate. As far as our under-construction pipeline is concerned, which is basically max square two, max district, and max one, progressively as we look to achieve occupancy over the next few years, our rental income is estimated to scale 700 crores at peak occupancy. We have a clear strategic ambition to add a million square feet of commercial real estate as well, expanding our annuity business alongside our residential business. As this portfolio matures, it will provide macro estates with a growing high margin and recurring income stream that meaningfully diversifies and stabilizes the overall earnings profile of the company. I'll now hand over to my colleague, Nitin, who will take you through the project level details and our financial highlights. Thank you.

Thank you, Sahil, and good morning, everyone. Let me take you through the operational and financial highlights for quarter four and financial year 2526. In our residential portfolio, Estate 361, Guru Gram, we recorded pre-sales of 1,700 crores in the year. This is India's first forest anchor intergenerational residential community. It had a very strong year. Phase 1 recorded a pre-sale of approximately 1,700 crores during the financial year, representing over 68% absorption of the launched inventory. Average realizations of approximately 22,000 rupees per square foot also reflected the project's clear differentiation within the micro market. Construction is on track and progressing well. Estate 128 in NOIDA is a fully sold-out project with a cumulative pre-sales of 2,700 crores. Collections are on track at Rs. 1,100 crore. Received till date. We are on track for delivery in Calendria 2027. Phase 1 is currently progressing at the 35th and 36th floor slab level, and Phase 2 is at the 3rd floor slab level. In Gurgam Estate 360, cumulative pre-sales stood at Rs. 4,800 crores with a collection of Rs. 1,600 crores. Construction is progressing well across all the towers, and the ground floor is complete for Towers 1 and 2, and the first floor slab for Towers 3 and 5, and the second floor slab for Towers 4 and 6. Mixed Use Portfolio. Talking about Estate 105, this was launched on 20th March, 2026, and has achieved sales of approximately 1,800 crores within just 10 days of the launch. MAX 1 in sector 16B, again in order, has been a long-stalled project, now which has gotten into live, active-selling residential community within months of acquisition. Following RERA approval in March of 2026, the project contributed 1,400 crores to FY26 pre-sales. The development spans approximately 2.5 million square feet with an estimated GDV of over 3,200 crores and an annuity income potential of approximately 140 crores from the commercial component. This transaction exemplifies a disciplined approach to value-occurative acquisitions in NCR market. Now coming to our commercial real estate portfolio. Our three operational commercial assets, Max Towers, Max House Phase 1 and Phase 2, and Max Square, continue to be running at full occupancy. Aggregate lease area as of 31st March stood at 1.2 million square feet, and a lease rental income grew 40% year-on-year to Rs. 150 crore in FY26. The asset level breakdown stands as under Max Tower generated Rs. 53 crore, followed by Max House at Rs. 45 crore, and Max Square at Rs. 60 crore annual lease rent. Coming to the pre-leasing, we had two notable leasing milestones in FI26. At max district in sector 65, Guru Gram, we signed an LOI for approximately 2 lakh square feet for a long-term pre-leasing. Three years ahead of projected completion, securing gross centers of rupees in excess of rupees to 70 crores over the lease period. This is at a 35% premium to the prevailing micro market. That transaction validates both the quality of the asset and the depth of the tenant demand in that call too. On other project, Max Square 2 in Sector 129 Noida, we have pleased approximately 80,000 square feet securing raw centers in excess of 95 crores. We are maintaining a very strong leasing pipeline at both aspects. On the under-construction pipeline, max-squared-2 with an approximately 1 million square feet of leasable area is expected to receive its occupant certificate in quarter 2 FI-28. It will add another 125 crores to our annual annual annual income upon stabilization. Max-squared-2 with approximately 1.6 million square feet will be delivered across two cases, first in quarter 2 FI-28 and quarter 3 FI-29, and will add approximately 225 crores to our annual annual income. Together, these assets alone will add 350 quotes plus to the annuity portfolio upon full completion. A total 5-annuity potential across delivered, under construction, and pipeline assets stand in excess of up to 700 crores on 100% basis. They continue to target adding approximately 1 million square feet of commercial space every year. Now, coming to the financial highlights. The console revenue for FY26 stood at Rs. 200 crores and EBITDA at Rs. 24 crores and PBT at Rs. 23 crores. Max Access Services contributed 88 crores in the revenue. On the balance sheet side, the total debt as of 31st March stood at Rs. 1,850 crores, of which 970 crores represents legal rental discounting, borrowing against our operational commercial assets. These are essentially asset-backed, cash flow-backed facilities. Cash equivalents were at Rs. 1,750 crores, living and leaving a net debt position of approximately 100 crores. For a company with our scale of pipeline, that presents a very lean and healthy balance sheet. Now I'd like to hand over to Nido for opening the question-and-answer session. Thank you.

Thank you very much. We'll now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and 1 on detached on 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.

Participants, you must press star in 1 to ask the question. First question is from the line of Moed Agarwal from IISL.

Please go ahead.

Good morning, everyone, and thanks for the opportunity. My first question is, you know, Sahil, so you've not given an explicit guidance in the presentation on how you're looking at FY27. So if you could give some color on, you know, both launches and pre-sales. Launches, you've mentioned some, but I think apart from terraces, we could give some color on what is the launch pipeline for this year in terms of GDVN project and also pre-sales, what is the expectation?

Yeah, so, you know, we are not shedding a pre-sale guidance as of now, Mohit, as you will understand and appreciate that we're in a very evolving macroeconomic. And we are very conscious about meeting every commitment that we share, not just with our customers, but also with our largest stakeholders. And obviously, the investor community is a very important component of that. So it's very difficult at this stage to give a guidance for how things will turn out. Having said that, from a launch perspective, we can share that there is almost about 17,000 crores of GDB that are yet to come to the market. And obviously, we will calibrate it and launch it in a phased manner. One is obviously the terrific, and in my comments earlier, I also mentioned about our golf course extension project. So definitely those are two very large components of it, in addition to, you know, some of the products that we already have and that we will keep bringing to the market. So at MaxOne and at Estate 105, et cetera. So I hope that, you know, kind of gives you a flavor, you know, how we are thinking about it.

So, 105 Phase 2, you mentioned, will be in 28, right?

Yes, but there is almost about 1,200 crores of inventory from Phase 1 as well.

And Phase 2 of 361, is that planned in this year?

Yes, yes, some part of it will come in this year.

Okay. Directionally, do you think pre-sales could be flattish or there could be a moderate high single-digit, low double-digit kind of growth?

You know, I might as well just share the guidance in that case, but I think, you know, like I said, I think the situation is evolving, and I think for the health of the long-term nature of the good health of Max Estates, you know, we want to be able to continue to make very, very high-quality sales that we've done, so I would refrain from commenting on that at this time, Mohit. Hope you understand. Thank you.

Understood. So, second question is, basically, you know, you had an interesting quarter, like last three months, you launched Terraces, and you've also launched Max 1. Both sit on the, you know, the extreme end of your spectrum from your regular launches. So, if you could run through what has been the experience, let's say with the Terraces, you know, two and a half crore ticket size on one end, and then, you know, Max 1, their probably ticket sizes would be 20, 25 crore plus. And how would you then look at these demand across these three pockets, you know, 2.5 crore ticket size, you know, 6 to 8 crore ticket size, and the 20-25 crore ticket size?

Yeah, I think, you know, in general, there is a cautious, sentimental approach that is flowing across all the segments, if I can share that, from all three across the terraces, across what we call the luxury and ultra-luxury segment. I think there's cautious, but I would not say that there is no demand. I think there is still a good level of demand. And what we are pleased about is that there is more about end-user demand that's coming through. And, yes, it is taking a longer period for people to consider. And as I said, they are very cautious in their decision-making. So we are seeing a lot of cautiousness. We are not seeing a complete, you know, slowdown or that sense of sales.

Okay. And the last question from my side is, you've been mentioning about moderation in the last six months. Has that reflected in the expectations of the landowner when you sit across the table for business development?

Yes, absolutely.

Okay. So, is that an opportunity that you think you'll be able to tap in? Like, you could say more aggressive business development? Okay.

Absolutely. I think we will be looking at business development very keenly, and we feel that the fundamental nature of long-term demand in the NCR continues to remain very, very strong. And yes, I think for the right parcel, we will be very focused on business development.

Great. Those were my questions. Thanks a lot and all the best. Thank you, Mohit.

Thank you very much. Participants, you may press star and one to ask a question. Next question is from the line of Parishit Gupta from Fair Value Capital. Please, go ahead.

Thank you very much for the opportunity and congratulations for a good set of results. My first question is on the rental income. So while the Q4 FY26 rental income has increased significantly by about 43%, the total leased area and the rents... Across each of our four commercial projects have not increased as meaningfully. So can you please help us understand what contributed to this increase? Was it back-ended rental increases or something else, please?

Hi, Parishal. Good morning. This is Nitin Kansal. Our rental agreements are structured in a form and fashion of 3 plus 3 plus 3. During the course of year, once the rental agreement, the rents are reset, we see a corresponding income getting reflected in the balance sheet. This is how the incomes have been reflecting. If you see currently, in the current year, we have reported a rental income of close to 155 odd crores. This is a reflection of all the three assets, max square, max house, and max style. If you see our portfolio, in the next five years basis, the peak occupancy of the same set of assets, they would be in the range of 210 crores of rental income, and we would have an incremental revenue of close to 500 crores coming from the new assets which will come online.

Understood. Let me just rephrase my question. So, in the presentation where we have mentioned the commercial projects and operations, there is a weighted average rental information given across the project. So, does that number not reflect what the current rentals are or is there something missing from my understanding?

So, Pariksit, what happened in the quarter four primarily is due to accounting adjustment, there is an NDS rental equalization adjustment wherein after the operational rent fee, the rentals start recognizing from an accounting standpoint. While there has not been any significant per se change other than the escalations, which, as Nathan mentioned, 15% every three years, Primarily, increase between 386 to 392 was on account of the accounting NDF adjustment on revenue equalization.

I understand. This is very helpful. My second question on sector 59. Can you please help me with the RERA status for this project? And just on top of this. We have seen that the GD has been upped by 30%. And in the press release, you have mentioned due to the pricing across the micro markets. But has there been any strategic change in the structure or the offerings of the project as well, which gives us the confidence that we will be able to overachieve the initial estimates of our pricing?

Yeah. So, firstly, you know, we have not yet filed for RERA for this project. On the second question, with respect to the GDV, yes, you know, the micro market, we believe that at the price that we are assuming is a fair price for the micro market, A. B, we've also spec'd up the product in line with the demand that is coming in from that micro market. So from both of these aspects, we feel that the revised GDB is a fair estimate.

Understood. My final question, if I may, before I rejoin the queue. So, we know that there has been a new TOD rule for projects in Delhi, affecting the ability of high-rises across the metro lines. Does this help us get more projects? Can you share a couple of your views on this change in policy?

Yes, we are evaluating a couple of projects from a business development perspective on these lines. The policy has various nuances, which is A, a mix of various end uses, residential and commercial. B is around sizes of units. So we are currently evaluating a few opportunities in this, but have not yet acquired anything in Delhi yet from a TOD perspective.

So, just a quick follow-up on this. So, then the growth pipeline, there is a, you know, 4.1 million square feet project, which is under the regulatory approval. Is this maybe in the Najafgad area or something else? Yes, correct.

That's part of the land pooling policy.

Understood. All right. Thank you very much for answering my questions. I will rejoin you.

Thank you.

Thank you very much. Ladies and gentlemen, You may press star in 1 to ask a question. Participants, you may press star and one to ask the question. Next question is from the line of Reshit Shah from Axis Capital. Please go ahead.

Yes, thanks for the opportunity, sir. Two questions. So firstly, on the collections or maybe the payment plans for the two new projects that we have launched, is it similar to what we have been doing?

Good morning. Yes, exactly. What we do is a distributed payment plan and distributed over the life cycle of the project. So, we have a 20 cross 5 payment plan across the X. Okay, so both the projects.

Okay, so in that relation itself, how do you look at the collections and operating cash flows for next year?

So, in the next year, what we have is we will have the

collection we're expecting on two lines for the project that's already sold in the previous quarter. We're expecting a collection in the range of 1,200 to 1,500 crores to come from them, and we expect another 1,200 to 1,500 crores to come from the new launches, some new sales which we're expecting to do in the next year. All told together, we can expect collections to be ranging in the range of 2,500 to 3,000 crores going across the project. And what we are expecting on the project deployment is that we expect a deployment of close to 1,500 crores, 1,500 to 1,800 crores to go on the project, resulting in an operating cash flow also revealing to us.

Right. Perfect. Makes sense. And secondly, you kind of alluded to the launches. Would you like to add some quarterly kind of timeline value? For which quarters do you see the two launches that you're going to?

So, you know, the launches for the terraces we've already done in Q1, which is the current quarter. Obviously, we'll give an update on this at the end of this quarter. And we anticipate to launch our second project in Gulf Coast Extension Road in quarter three. That's the plan so far for some of the big launches. And there'll be a few other launches of Estate 105 and MAX 1 that will be between Q2 and Q3 as well.

Okay, and the remaining part of 361?

Yeah, that will be, like I said, around Q3 as well. Okay, perfect, perfect. Thank you so much.

Just adding over here, we have got an inventory of close to 3,800 crores from the existing launches, which we have done in the previous year, which will also be available to us in addition to the launches that you plan to do in the current year.

Right, sure.

Thank you. Next question is from the line of summer, Khandilwal from ICICI Securities.

Please go ahead. Some of my requests are on media line and proceed with your question. Do you know a response?

Am I audible now?

Yes, go ahead.

Yes, thank you for the opportunity. I wanted to ask, I understand about the project next one that we have taken over. The basically is pitch flat. We have hold 1,400 crores of vehicles left here, and out of which 1,200 crores is from there. So, if you could elaborate on this, it will be really helpful.

Thank you. Samad, just to give context, daily one as a project had a total sellable area in the range of 2.5 million square feet, of which close to 1.4 million square feet was already monetized by the erstwhile developer. So, when we talk about the new shares getting recognized, the corresponding revenue of that 1.4 million square feet got recognized, post we got a red approval. Then we had to enter fresh contracts with a set of buyers, and the entire income, profit and loss statement of the shares will be reflected in the books of accounts. For the remaining 1.1 million square feet, we intend to monetize it through annuity portfolio and also residential income. What we expect is to have a residential income in the range of close to 2,000 crores to come to us from the new shares and an annuity income of close to 140-odd crores come to our way from the annuity portfolio.

Right. So, under 1.4 million, that was already monetized by the erstwhile, what will we receive in call it, and how much, like, we have, how should we receive it as a net cash flow?

So, out of this 1221, we are expected to receive an incremental sum in the range of 550 to 600 crores to come to our way. The remaining capital was already received by the erstwhile developers. So, if you see from a cost of construction perspective, we would not like to distinguish between what we are spending on what the erstwhile developer has sold and what we are selling. It's about the entire project as a whole.

Right, understood. Thank you.

Thank you. Next question is from the line of Ritwik Saeed. From one of Financial, please go ahead.

Hi, good morning, sir. A couple of questions from my end. Sir, firstly, what was the OCF in FY26?

Hi, Ritwik, good morning. This is Ritwik. What we had in OCF of close to 450 to 500 crores in the previous year in FY26?

Okay, 450 to 500 crores. Okay, and that probably could move to 800 to 1,000 crores in the previous participant hours, it looks like.

So, it's gradually progressing, this is the collections from the previous, the already sold and the new sales, which we do. So, we are very bullish on the OCF in the coming years.

Got it. Got it. Sure. And sorry, a couple of questions were asked on the launches, but just one clarification. Sector 359, we are looking to launch this at one go or it will be in phases?

So, just to correct what will happen, we have got two projects. We have got Estate 361, and we have got another project in Sector 59, Gurugrama. So, Estate 361, so we have already launched a portion of it in the last year, and we have also launched one of the sections of it called the Terraces in the first quarter of the current year. Estate 59, which is a potential GDP of close to 3,900 crores, we are expecting to launch in the quarter three of the current financial.

Okay, and that will be completely 3,900 crores.

We will figure it out depending on how the market is pushing at that point of time. We may choose to phase it out and do it one shot.

Right, right. So, terraces, which has already been launched, then another potential phase of sector 361 coming in, and then sector 59 at Gurgaon, depending on, you know, the market conditions, you will look to learn, and plus the 4,000 crores of unsold inventory that we have.

Yes, exactly. It just comes in very nicely.

Yeah, okay, yeah, yeah, okay. And so what is a BD target in terms of, you know, allocating capital for FI 27 and 28?

Yeah, so we've already shared that we are aspiring to add between 2 million square feet of residential and 1 million square feet of commercial every year. So we continue to hold ourselves to those targets. And as we shared earlier, we'll continue to explore opportunities around combination of outright acquisition as well as joint development, both.

Right. Okay. So, similar figure what? For what we've done in the last one, two years? Yes.

Exactly. Exactly. So, we'll continue to keep on that.

Great. Great. Okay. Thank you and all the best, sir.

Thank you. Thank you so much, Itwik.

Thank you.

Participants, you may press star and one to ask the question. Ladies and gentlemen, EMF star and one to ask the question.

Next question is from the line of secret party from my side. Please go ahead.

Good morning, everybody. I have two questions. The first question to Mr. Sahil is, what type of strategic levers is mass estate prioritizing over the next 6 to 12 months? To strengthen its position in commercial and residential real estate while managing the risks from interest rate movements, regulatory changes, and competitive pressure.

That's my first question. I'll ask my second question after this. Thank you. I think, you know, if you go through our presentation, you'll be able to get a very good handle on it and an understanding of it. We are very focused on the philosophy of live well for our residential communities and work well for our office communities. We are very focused in terms of the national capital region. We are very clear about the segments that we are operating in, whether it be studio homes or luxury residential or senior housing as well under the Antara brand. And so I think if you go through the presentation, you get a very clear perspective of what is the clear strategy with which we are following. From a risk perspective, I'm very pleased to share with you that our balance sheet continues to be extremely strong. We are at a net debt of about 100 crores, and as I said, we have about 4,500 crores of profit to be bought in the books. And so from that perspective, I think we are in a very de-risk perspective and in a very strong, very strong balance sheet. So I hope that addresses your question.

My second question to Mr. Kansal is, what type of financial frameworks have been applied in FY2027 to align debt maturity, refinancing schedules, and project-level cash cash flows so that the funding remains efficient and predictable?

Thank you. This is a very interesting question. We have a different strategy in terms of when we talk about our commercial assets and we talk about residential assets. But the overarching principle is that we strictly avoid acquiring land from debt. So, the principle that remains is from the internal accruals, only we would like to acquire fresh assets. If you look at our assets in distinct business divisions, in terms of residential basis, on the back of the strong residential collections, we have got a surplus of close to 1,200 crore rupees lying in a rarer account itself, which are good enough to take care of the construction, and we don't foresee any debt to be taken on the project. Secondly, on the commercial assets, what we have done is currently, we have achieved the equity financing has already been done on the stock, and we have also tied up construction finance, which is to be taken out once the building is completely leased out to an LRD. So, that is still some time to go, and all our lease rental discountings, which is the debt on our operating assets, is very well financed through the cash flow coming from the lease rentals, which is running at 100% occupancy without any delinquency. So, in terms of having a cash flow mismatch, that looks a little bit remote at this point of time.

Thank you. Next question is from the line of Pratigiri from Shublab Research. Please, go ahead.

Hi, thank you for the opportunity. Sahil, I just wanted to understand the cautious statement, which probably, you know, has come from you. Just wanted to understand the longevity of it. Is it primarily because of the current geopolitical scenario? And can it, you know, wane off if things normalize or are you sensing some fundamental shift or change in the demand scenario in Delhi NCR that is leading to this cautious comment?

So, actually, I think my point of view was that in relative to the last couple of years, yes, things are a little slower, and therefore, you are sensing a certain cautiousness. But if you also see what I said is that we are continuing to see good levels of demand, right? It may not be the levels of demand that was in the last one or two years, but we are still continuing to see very robust end-user demand. From that perspective. We remain extremely optimistic about the medium-term and long-term potential for residential and commercial real estate in NCR. If you look at it from a commercial side, we've shared 100% occupancy. We've shared pre-leasing that we've done on the residential side. In spite of launching in the middle of a war, we've done 5,000 crores of sales in two consecutive years. We've done 3,000 plus crores of pre-sales in one quarter, which was practically in the middle of a war. So, I think the... We are cautiously optimistic, and as you said, yes, it's primarily driven by the macroeconomic scenario, and we are hopeful that if things settle, you know, things continue to be very optimistic in the future.

I understood. Very helpful. My second question is to Mr. Kansal. So, we are seeing some inflationary winds in most of the commodities we use. So, I just wanted to get, I know you have guided for the margins in the presentation very clearly, but if you wanted to get some sense on, you know, this inflation mitigation strategies we have for us.

Right. So, good morning. So, just to give perspective, when we do our budgeting for the projects, because end of the day, if you say we have a particular industry whereby we end up committing to the customer at day one, and the product is delivered over the period of next three to five years, which leads us to the vagaries of the market, which can be our internal made up, also external, which is the current case. So what we have, what we have experienced in the past during the COVID and also during what we have done in the budgets, we keep sufficient margins in the form of escalation and contingency. So what we feel is currently till now, whatever the impact of inflation is very big then. But just to add in case these kind of geopolitical issues continue to strain for a longer period of time, we would have to figure out how much impact does it have on inflation.

Understood, Mr. Kansal. So, probably the band which is given for the margins will ultimately be achieved.

Yeah, this is what we aspire to achieve, and the band in which we have mentioned in the presentation.

Got it. Very helpful. Thanks a lot.

Thank you. Next question is from the line of research from Access Capital. Please go ahead.

Yeah, thank you for the follow-up, sir. So, just one question, would you like to share some early trends on the terraces as to how the velocity has been, what are you seeing on ground, what's the investor versus maybe in user mix, and maybe the pricing versus the previous phase of 360.

Yeah, so the pricing is at a premium to our previous phase, A. B, we've got a very positive response, and we are very encouraged. And I think there's a lot of credit to the brand, the product, and our increasing depth and strength of distribution. So we remain very optimistic and encouraged with the continuing and growing brand presence for MACSA states in the national capital region. So at this stage, I can share that we're very happy with the outcome.

Sure, and just follow up, would, I mean, would the end user versus investor mix be different in this project, or is it more ergonomic?

This one is a combination of both end users and investors, whereas in our estate 105 and in the luxury residences of 361, we are seeing a much higher percentage of end users per se. But on this one, it's mixed because it is a lower ticket investment, good investment opportunity product.

Sure. Thank you so much.

Thank you.

Thank you. As there are no further questions, I'll now hand the conference over to the management for closing comments.

Thank you, and look forward to speaking with all of you next quarter. Thank you so much.

Thank you very much. On behalf of Max Estates Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.