Veegaland Developers Limited (VEEGALAND) Q2 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Q2 and H1 FY27 Conference Call of Veegaland Developers Limited. As a reminder, all participant lines 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 the conference call, please signal an operator by pressing star and zero on your touch-tone phone. We are pleased to have with us the senior management team led by our Chairman, Mr. George Joseph; and our Chief Financial Officer, Mr. Varun S. Kumar, who will share his perspective on the company's performance for the quarter and the key business development during the period. Before we begin, I would like to remind everyone that certain statements made during this call may be forward-looking in nature. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. I now hand the conference over to the management. Thank you, and over to you.

George Joseph:

Thank you very much. Good morning and Happy Diwali to all participants. Thank you for joining us for the Veegaland Developers First earnings Call as a listed company. It's a pleasure to welcome our shareholders, investors, and analysts as we share our performance and progress for the second quarter and first half of financial year '27. This is an important milestone for the company. This marks the beginning of a new phase in Veegaland's journey with greater visibility, accountability, and engagement with the investor community. We look forward to building on the trust that our customers have placed in us and creating sustainable long-term value for all our stakeholders. Let me now begin with a brief overview of our business. Veegaland developers is a part of the broader V-Guard Group, a business group with a legacy dating back to 1977. Since commencing our real estate operations, we have focused on the developing focused on developing quality residential communities across Kerala. Today, our presence extends across four key markets - namely Kochi, Thiruvananthapuram, Kozhikode, and Thrissur. Our portfolio spans multiple customer segments from mid-premium and premium housing to our luxe offering. This allows us to address the broad range of homebuyer requirement while remaining focused on the Kerala residential market. Our approach has always been centered on the understanding local customer preferences, selecting appropriate locations, and delivering homes that combine quality, functionality, and thoughtful design. One of the key differentiators of Veegaland is our concept of biophilic urban homes. We believe that homes should offer more than just living space, they should provide an environment that promotes well-being and brings residents closer to nature even within the urban city. This philosophy is reflected in the way we approach our projects through landscaped green spaces, natural light, ventilation, and incorporation of suitable features such as rainwater

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Veegaland Developers Limited November 09, 2026 harvesting, solar-powered common areas, and responsible waste management. For us, biophilic design is not simply an aesthetic feature, it is an integral part of how we think about residential development and the experience we want to create for our customers. Coming to our operational performance for the quarter, we have seen continued momentum in our customer demand and collections. Our pre-sales grew by 37.6% year-on-year in value terms, while the area booked increased by 19.6%. This indicates sustained traction across our project portfolio. The growth in the pre-sales value alongside an improvement in our average realization also reflects the contribution of our product mix and the value proposition we are offering to homebuyers. Gross collections increased by 88.2% year-on-year. We remain focused on converting this demand into timely project delivery, maintaining customer confidence, and ensuring disciplined execution across our developments. Our project portfolio and execution capabilities provide a foundation for this growth. We have a portfolio of completed, ongoing, and upcoming projects across our key markets. Our completed developments provide a track record of delivery, while our ongoing projects and upcoming launches offer opportunities to sustain business momentum. We place considerable emphasis on planning, construction quality, cost discipline, and monitoring project progress. In residential real estate, execution is central to the customer proposition; timely delivery, quality standards, and consistent customer engagement are therefore important priorities. Looking ahead, our growth strategy will remain focused on strengthening our presence in the market. We intend to build our understanding of this micro-market and pursue opportunities where we see sustainable demand and project feasibility. Our upcoming projects in Kochi and Kozhikode are part of this pipeline and will support our presence in these markets. At the same time, we will continue to evaluate opportunities with a disciplined approach to land acquisition, project selection, and capital deployment. As we grow, our priorities will remain consistent, that is strengthening our brand, improving customer engagement, leveraging technology across business processes, and maintaining a disciplined approach to project execution. Friends, to conclude, Q2 and H1 of financial year '27 have been engaging periods for Veegaland. We have delivered growth across key operating parameters, improved our financial performance, and continued to build on our project pipeline. More importantly, we remain focused on the fundamentals of our business, understanding your customers, choosing right markets, delivering quality homes, and managing growth responsibly. As a newly listed company, we recognize the importance of maintaining transparency, strong governance, and consistent communication with our investors. We are committed to building Veegaland into a stronger and more enduring residential real estate platform in Kerala.

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Veegaland Developers Limited November 09, 2026 With that, I would like to hand over this to our Chief Financial Officer, Mr. Varun S. Kumar, who will take you through the financial performance of Q2 and H1 of financial year '27 in greater detail. Thank you all. All the best. Varun S. Kumar:

Thank you, sir. Good morning, everyone. I'll be taking you through the financial performance for the second quarter of FY27. Starting with Q2 of FY27, the quarter reported very high strong growth in both revenue and profitability metrics. Our revenue from operations increased to INR106.34 crores from INR82.66 crores for the corresponding period in the previous fiscal, which is a 28.66% increase year-on-year. EBITDA, including other income, increased to INR22.78 crores, which is an increase of 77% from INR12.82 crores in Q2 of FY26. EBITDA margins also improved by 550 basis points to 20.90% from 15.40% in Q2 of FY26. Q2 of FY27 saw a PAT reporting of INR15.99 crores, which is an increase of 92%, INR8.31 crores for the same period in the previous fiscal. PAT margin also saw an improvement of 470 basis points to 14.70% from 10% for the corresponding period in the previous fiscal. Moving on to H1 performance in FY27, the strong growth trends continued in line with the quarter performance. The revenue from operations for the first half of FY27 stood at INR180.66 crores, which is an increase of 45% from INR124.16 crores in the previous fiscal. EBITDA including other income, stood at INR37.09 crores, which was an increase of 96% from INR18.92 crores in the previous fiscal. H1 FY27 saw an EBITDA margin of 20.10%, which is a 500 basis-point increase from 15.10% in H1 of FY26. PAT grew by 123% to INR25.71 crores from INR11.53 crores for FY26. PAT margins also improved by 490 basis points to 14.20% in H1 FY27 as against 9.30% in H1 of FY26. During the quarter, the company also successfully completed its initial public offering of its equity shares, and the company's equity shares have been listed on 18th of September 2026. The company raised INR210 crores from the issue. The proceeds of the issue are to be utilized for funding the development of ongoing projects, which are earmarked specifically in the prospectus, along with planned acquisitions and general corporate purposes. We would like to thank at this point all the investors who subscribed to this issue and also made the issue a success, and who have decided to join us in our growth journey moving forward. We are also happy to report that the growth story and growth improvements are reported across all key financial metrics and performance, including revenue, EBITDA, PAT, and other profitability margins as well. Going forward, our focus remains on sustaining the growth momentum, maintaining margin discipline, and also aligning our operations to meet our long-term operational and growth objectives. With this, I conclude my remarks and we are happy to answer any questions or queries that you may have in relation to the results or our business. Thank you.

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Veegaland Developers Limited November 09, 2026 Moderator:

Thank you, sir. We will now begin the question-and-answer session. The first question comes from the line of Sabin Joy, an Individual Investor. Please go ahead.

Sabin Joy:

Hi, team. Congrats on the results and the successful IPO that went through. I just had a question on if we had any plans to have any projects outside of Kerala in the future?

Varun S. Kumar:

Thank you for your question. So, we are constantly evaluating opportunities to expand our operations. We see immense potential in the State of Kerala itself for growth, especially in the markets of Kochi and Trivandrum. But at the same time, we are evaluating options of new geographies in the neighboring areas as well. But currently, we are not in a position to state a specific location or specific geography because we would like to make announcements once the plans are finalized and we have an action plan ready for it. So, at this point in time, we are evaluating all geographies where we can expand to. Thank you.

Sabin Joy:

Sounds good. Thank you.

Moderator:

Thank you. The next question comes from the line of Shravan Modi with Syndicate Family Office. Please go ahead.

Shravan Modi:

Good morning, sir. Am I audible?

Varun S. Kumar:

Yes, you are. Good morning.

Shravan Modi:

Yes. Good morning, sir. Thank you so much for the opportunity. Sir, my first question is regarding what is your expected launch timeline for the projects Sarovar, Fortune, and East Port as well?

Varun S. Kumar:

As we speak, as on date, Fortune project has already been approved by RERA and it has already been launched. So that project is currently an ongoing project as we speak right now, but as of 30th September, it remained to be an upcoming project. The other two projects are scheduled to be launched in Q3 of FY27 it is, the current quarter, the running quarter.

Shravan Modi:

Okay, fair. So…

Varun S. Kumar:

Thank you.

Shravan Modi:

The three upcoming projects which we have estimated GDV of INR450 crores what period is the management expecting this potential to translate into pre-sales and revenue?

Varun S. Kumar:

So, we are not intending to make any projections or predictions into the pre-sales momentum, but we can just comment on the performance of the company wherein I think in the investor deck also, we have communicated how the previous project launch, the Amora project in Kochi, was received by the market. Already 68% of the units have been booked, the pre-sales have been completed as of 30th September.

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Veegaland Developers Limited November 09, 2026 So, we are confident about this project as well. These projects are also in key locations and in prime real estate. So, we expect to have such strong momentum as well, but we cannot predict as to exactly as to how the projections would pan out as it is a forward-looking statement. Shravan Modi:

Got it. Yes. Thank you very much, sir. Thank you for the insights. Wish you all the very best.

Varun S. Kumar:

Thank you.

Moderator:

Thank you. The next question comes from the line of Aditya Deorah with Divisha Investments. Please go ahead.

Aditya Deorah:

Good morning, sir.

Varun S. Kumar:

Good morning.

Aditya Deorah:

Sir, my query is that two years back it was more of a promoter-funded entity. Now, it being listed and the company having raised quite a bit of capital from the primary markets, what would be the use of cash flows going ahead? Would we change our model to maybe buying more land or maybe doing a bit more number of projects? What is the idea now going ahead with respect to the company of using the cash flows?

Varun S. Kumar:

So as per the prospectus, the IPO funds are earmarked for utilization into the ongoing projects and also general corporate purposes. So, we will be utilizing this as per the objects of the issue. But along with that, the company expects to have higher liquidity out of the existing operations of the company. The plan is to deploy these into new developments, into new markets and new geographies as well as we move forward. So effectively, there will be an increase in the number of projects that the company is undertaking at a given point of time moving forward.

Aditya Deorah:

And so, both the number of projects as well as maybe an increase in the number of geographies we are present in?

Varun S. Kumar:

Yes. We are evaluating geographies as we speak, but the number of projects is definitely there.

Aditya Deorah:

Perfect. Thank you.

Varun S. Kumar:

Thank you.

Moderator:

Thank you. The next question comes from the line of Jimit Mehta with Mehta Investments. Please go ahead.

Jimit Mehta:

Hi, sir, good morning. Am I audible?

Varun S. Kumar:

Yes, good morning. You're audible.

Jimit Mehta:

Okay, sir. Thanks for the opportunity. My first question is on the target customer segment, and how does the management see the demand evolving across mid-premium, premium, and luxury housing categories?

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Veegaland Developers Limited November 09, 2026 Varun S. Kumar:

Our target segment is on the premium side of the market as we speak. When we say premium also, it is slightly more than the affordable segment that generally is available in the market in Kerala. So, our target customers are mostly professionals and business individuals who have the liquidity to purchase or credit availability to acquire home loans for purchasing such high-value apartments. So, between the segments, we see strong demand across all segments, I mean premium and luxe series products, wherein the premium has a high-volume business with lower ticket sizes is how the business works in that segment, whereas Luxe series is a high-margin and low-volume business, that is how it pans out. But there is demand across all these units, all these segments, and we see strong growth potential in all of them.

George Joseph:

So actually, to supplement Mr. Varun, as you are aware, Mr. Mehta, if you analyze the market where we operate. If you look at the entire NRI remittances of the country, last year, it was about INR1,55,000 crores, and out of that, 20% of the NRI funds come to Kerala. So, if you look at our projects, mostly around 48% to 50% come from NRI sales, and naturally, NRIs would like to have apartments in premium to luxe apartments. They may not even refer to a bank loan because they have funds. So, there is a huge demand from the NRI community and the markets like Kochi and Trivandrum, the IT Park, the InfoPark, and the TechnoPark. They're going for additions , and there is a great demand. And from the investment I mean, business community in Thrissur as well as in Kozhikode, we have a great demand. So we have demand from all sections, I mean, ranging from mid-premium to luxe series, and the realization is also going up. Thank you.

Jimit Mehta:

Okay, sir. Understood. And about the like premium, so like, as we know the demand is growing, okay? So we know the revenue will be growing, okay? But on the margin side, so do you see the margins going up as well from this point?

Varun S. Kumar:

So as you can see from the reported numbers, the margins have been improving over the past quarters consistently. It is a factor of two things because as we said, luxe series products are the high-margin, low-volume kind of products. These were launched towards the second half, H2 of FY26. So those revenues are getting booked currently, and the margins have seen this impact there. On a margin,on a forward-looking basis, we are confident that we'll be able to maintain constant, stable margins in the market. Yes, the material prices are something that we have a close eye on given the current economic scenario, but as of now, we are not in a situation where any of our margins have squeezed because of such kind of a material price issues.

Jimit Mehta:

Okay, sir. I understood. So we can assume that these, the margins can be sustainable going forward as well as, if there is something like increasing cost, there can be some effect on the margins, no or correct?

George Joseph:

Correct. If you look at selling price, the selling price in June, it was like INR8,500 average selling price was INR8,539; and in September, it has gone to…

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Veegaland Developers Limited November 09, 2026 Varun S. Kumar:

INR9,000.

George Joseph:

INR9,286. So there’s a -- I mean, if you look at, I mean, ‘13-‘14, we were selling for INR4,000. Now it has gone to INR9,200. And our selling price compared to the, I mean, all India players like Sobha, Prestige, and all that is lesser than and we offer better facilities for the same price than these players. So there is great demand for our products because of the – our, I mean, credibility of the promoters, the quality, and the biophilic,I mean, that is our specialty biophilic, I mean, properties, and all the all the quality, timely delivery, etcetera. So we have great demand, and we are able to command a price in the market.

Jimit Mehta:

Okay, sir. Understood. Thanks for answering my questions, and all the best for the future.

Varun S. Kumar:

Thank you.

Moderator:

Thank you. The next question comes from the line of Shriram R., an Individual Investor. Please go ahead.

Shriram R.:

Thank you for the opportunity. Sir, can you provide a macro overview of the Kerala housing market, like how many organized developers are there and what is actually fueling the demand for urban housing in Kerala? And also as a follow-up, if you can provide a mix between the purchase for consumption versus investment, that will be useful.

Varun S. Kumar:

To answer the first part of your question, the Kerala market is increasing in terms of the number of sales happening in the organized sector. By organized sector, we have a very strong regulatory body called RERA in Kerala, which is very effective in implementing the rules laid down by the government. So RERA-registered builders or RERA-registered developers are increasing their market share as we speak. I do not have the exact numbers on how much sales have happened among the competition in that segment or the unorganized segment as it may be, but the overall trend is that the demand is increasing at a macro level. And the drivers towards, as George sir just mentioned, is one aspect is the development in the IT and techno parks in both Kochi and Trivandrum, also with the Vizhinjam port development in Trivandrum, which is in Kollam, but the event,the logistic hub and logistics belt trans to Trivandrum, and the economic activity in the district of Trivandrum has improved tremendously over the past 1 year or so. And we are also seeing commensurate demand in the real estate sector along with realization increases in terms of the rate. The second aspect is, as sir rightly pointed out, 48% to 50% of our demand comes from NRI. NRI demand, we would like to clarify that remains strong during such geopolitical tensions which are currently going on in the Middle East.

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Veegaland Developers Limited November 09, 2026 Actually, we are seeing a trend where Malayalis who have,who are residents of the Middle East are now opting to have at least one residence in Kerala because of the uncertainties in the geography there. So that is where the macroeconomic growth is driving the business in the current scenario, and we expect that to continue in the mid to long term as well. Shriram R.:

Okay. Got it. And the follow-up…

George Joseph:

And if you look at our offerings - as you see, our recent offering, Amora, within 4 months, 68% of the flats are sold within 4 months. So that is the demand. And we our location selection of location, the nearness to the metro and all those facilities and all that, our selection is excellent, and our quality of construction and credibility in the market enable us to see traction going forward.

Shriram R.:

Okay. And sir, can you just break up your land bank into different cities?

Varun S. Kumar:

I don't have the exact numbers right now. The current total land bank is around 6.4 acres, and I can -- since I do not have the exact numbers, our team you can reach out to our team, and they will give you the exact numbers, but it’s around the majority is in Kochi and with some locations in Kozhikode as well were not the exact numbers.

George Joseph:

Yes. We have 12 ongoing projects and 3 upcoming projects. We have 2 projects in Thrissur, two in Calicut, that is Kozhikode, and 3 in Trivandrum. The rest of the projects are all in Kochi.

Varun S. Kumar:

So I think -- specifically, I think you were asking for the land bank question, that is in the 6.4 acres and that is across Kochi and Kozhikode.

Shriram R.:

Okay. And nothing in Trivandrum at the moment, right?

Varun S. Kumar:

Trivandrum, at the moment, we are not holding any land because recently we launched the project called Lluvia Gardens, which is a very large project with 163 units. So currently, we have sufficient inventory there, but we are in discussions for acquisition of the next plot of land to supplement once that project nears its sales cycle.

Shriram R.:

Okay. Thanks, sir. Thank you so much.

Moderator:

Thank you. The next question comes from the line of Lakshminarayanan with Tunga Investments. Please go ahead.

Lakshminarayanan:

Yes. Hope I'm audible. I think my first question is that land bank which you have, what is the timeline of that land bank getting monetized, and what kind of potential GDV you can actually expect from there? That is my first question. The second question is that in terms of your collections or your revenues or your pre-sales, how in general the first half and second half, is it -- if you can just help me on those two aspects, it will be helpful.

Varun S. Kumar:

Okay. So on the first question, thank you for your question. In terms of the land bank, the current the GDV is going to be timeline for launch, it would range somewhere between 6 months to 9

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Veegaland Developers Limited November 09, 2026 months depending on the size and complexity of the project that we are planning there, because each project has a different level of approval required with the municipalities or other regulatory bodies, which we have to go through. So we expect to monitor launch these projects in 6 months to 9 months. And as you already know, we already discussed on the sales speed that we may be able to expect on the projects once they are launched. So the launch timeline would be around 6 months to 9 months. On the second part of the question, on the GDV aspect, we are not at this stage in a position to give you exact GDV expectations on this, because it depends on widely it will vary on the number of units that we are developing, the segment that we are developing that land for, or the pricing that we will be able to fetch based on A and B, I just mentioned right now. On the second question, in terms of the seasonality of collection and pre-sales, pre-sales to some extent, we see some seasonality between -- wherein Q2 and Q3 are faster-selling quarters, with Q1 and Q4 being slower quarters in general trend every year. But this year was an exception with Q1 having higher sales because of which we believe is because of the Middle East conflictdriven demand. But generally, the trend is Q1 is lower -- Q1and Q4; Q2 and Q3 are the fastest-selling quarters. The reason that we have identified over past experience is that Q2 and Q3 is when NRIs choose to travel down to their hometowns to during vacations or for festival season here. And mostly, they will finalize their final demand their final choice when they are physically present in the location. In terms of collection, we do not see a seasonality because collection is milestone-based billing and the billing will happen as the project develops into the milestones that you stated into RERA. So there is no seasonality trend that is expected from the collections. It is a function of how many, what is the order value and where the project execution level is at each given point in time. Lakshminarayanan:

Got it. And in terms of the three upcoming named projects which you've already done, that you said it will get launched between Q3 and Q4. The new land bank which you have, which is unnamed, that will happen again, the launch would happen in FY28 is something which is possible or the launch of all of this?

Varun S. Kumar:

So to answer the first part of the question, I would like to differentiate between what we call as an upcoming project and what we call as land reserves. Upcoming project is a project wherein the approvals are being applied for, have already been applied for with the government departments and we are waiting for the clearance thereof, which are the three projects listed in the investor presentation that we have shared. These projects will get launched in Q3 of fiscal 27 itself, this coming quarter or maybe early Q4 of FY27. The remaining project is what I touched upon on the first point, the first question of yours, wherein we are expecting those to be launched between 6 to 9 months is the launch time.

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Veegaland Developers Limited November 09, 2026 So most of it will, almost all of it which we have done will get launched by the Financial year 28. So in a matter of 6 to 9 months, the projects should be starting. Lakshminarayanan:

Got it. Sir, also, what is your, you know, because we see that apartments are actually profitable ones are the ones where many apartments are constructed and also it is vertically up. So in our sense, we are more vertical-focused or we actually want to have like a larger space in how the markets in Trivandrum, Kochi are all. They are more towards 70 to 150 units or is it even more? And which is the area which we like to operate, optimizing on both our scalability as well as the project viability point of view?

Varun S. Kumar:

In terms of the size of projects that we operate in – we operate in something what we call a boutique apartment segment, wherein the number of units would be an average of around 75 to 150 units usually. We are not operating in large township kind of models. To answer your question on what the customer preference is, before looking into what kind of configuration or what number of units is there in the project, the first key aspect of real estate is location. If you have the right location, the customers have the demand for those units. So in that sense, that is the first primary driver wherein the location and the proximity to key transport hubs and other amenities or other utilities that they want to use is what the customer would first look at. So in our experience, once that criteria is met, the project is meant to be a success. I think on the second part of the question, in relation to how this vertical is stacking or larger projects that we would like to do, our focus is to have locations – first have key locations covered and then we have a project which is very quick in deliverable timeline. So we would prefer to have an area of around 1 acre or 1.25 acres, wherein the project launch timeline is lower. So the capital deployment before the revenue recognition would be shorter, so that we can optimize further return on equity and return on capital employed. Whereas the larger projects like townships would take a longer period of gestation before the project can actually start. So we generally prefer to keep it that way in key locations, with quick-turnaround projects is what we are focusing on.

Lakshminarayanan:

Got it. Sir as an organization you intend to do apartment development or in addition to it you also like to go for a lease-rental kind of a model where you want to construct commercial properties or how do you do that? That's one question. The second question is that while you have land reserves to grow in the next 1 year or in FY28 and FY29, what is the strategy of the company? Do you have every year, you have a target that X number of acres is something which I need to acquire? How does it work? Because we need to be perpetually we need to keep acquiring land. and as you become bigger and bigger, the availability of the land also becomes tougher and tougher because you need to grow in a larger size. So how do you strategize and think for adding land bank? What is the kind of target you have in mind, maybe on a year or rolling 3-year or a rolling 5-year? How does the organization think about it?

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Veegaland Developers Limited November 09, 2026 Varun S. Kumar:

Yes, to answer the first part of your question, we are currently focused on residential apartment construction only, because that is where our current market is and is doing very well for us and we are still seeing growth potential as we already mentioned. In that segment, we are not into the leasing business and we do not have a specific outlined plan as yet. We would -- but however, as I said with geographies we would still evaluate the opportunities as it comes in terms of the yield that these businesses may provide us with and if found viable, maybe once we have a solid plan is only when we can make a comment on that. In terms of the growth pipeline with land acquisition, as George sir had mentioned in his initial remarks as well. We have a very disciplined approach towards land acquisition wherein we have a business plan wherein we place projects and conceptualize these projects well in advance to achieve the numbers and matrixes that we are planning to hit and based on which we are on constant scouting of land across the geographies that we operate in. And so that we are able to get these lands acquired in time to be able to launch them in time to get the projects launched and the business operations ongoing. So basically, it is a back work of business plans work like if we want to reach a certain level in FY29, for example, or how many projects we'll need and where all these projects have to be and based on that, as we speak, we'll be looking at we are scouting lands to fund or to support such projects in that future. That is how this operation is currently being operated.

Lakshminarayanan:

So the current level of GDV of the three projects which you have named and also current ongoing unfinished, there are more collections to be done for all the sales you have done, right? And third, you also have land bank. So all these three things will kind of safely take you through how many years, I think from a visibility point of view, you have visibility of revenues till which Financial year, you have some amount of visibility in terms of revenues? Not asking the number, but I'm just trying to understand both momentum point of view?

Varun S. Kumar:

I can give you the numbers specifically. In the investor presentation also, we stated that around INR1,080-odd crores of our order value is sitting in our books right now, but only around INR500-odd crores of that is recognized as revenue. The remaining INR500 crores is our future visibility into the future without making any single further additional sales. So that is the current visibility we have. But naturally, you are seeing very strong pre-sales going forward as well. But even without that, we have a INR500 crores visibility forward. But the timeline, if you ask me will span across the project life cycle of all these projects and this will lead up to FY31 or '30-'31 is where the last revenue recognition of these INR500 crores could fall. But with a pre-sales of around INR174 crores this quarter, we intend to maintain such presales, which keep adding to the INR1,080 crores of order book and it will continue flowing up, fuelling our revenues for the future.

Lakshminarayanan:

Got it. Sir, from a capital structure point of view, what kind of debt-equity do you like to keep over a long period of time? Is there a number you have in mind? And second, I mean, I think

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Veegaland Developers Limited November 09, 2026 around INR180 crores of cash is what you have on the books. Is it -- can you just help me with these two numbers? Varun S. Kumar:

So in terms of the debt-equity, as we speak, we have a very low debt ratio of 0.15%, especially as soon after the public issue. We could continue to raise project loans for our ongoing projects and our operations to have some leverage on the books, but we do not intend to increase the debt to a significantly high level especially in the mid to at least in the short to mid-term, because we have sufficient liquidity at this point of time, we do not want to leverage the business too much. In terms of the second part of the question, we have, as you rightly said, INR180 crores in unencumbered cash as on, yes, and that figure is primarily on account of the IPO that happened towards the end of September. It was September 18 that we had listed and the funds have come in. And also, we have funds lying in escrow accounts, which are RERA linked accounts, wherein we can only utilize those funds as the project progresses.

Lakshminarayanan:

So, this INR180 crores is unencumbered cash, right?

Varun S. Kumar:

Yes.

Lakshminarayanan:

Okay. And what is the carrying value of the land assets?

Moderator:

Sorry to interrupt Mr. Lakshminarayanan, I would request you to please come back in the queue for further questions.

Lakshminarayanan:

Okay.

Moderator:

Yes. Thank you so much. The next question comes from the line of [Jenil Patel - Aavya Advisors Please go ahead.

Janil Patel:

Yes, hi, sir. Am I audible to you?

Varun S. Kumar:

Yes. Good morning.

Janil Patel:

Thanks for the opportunity, sir. Sir, my first question is, our revenue has grown by around 29%, but if you see our profitability, like the EBITDA, which has grown by 78% almost, and PAT grown by 92%. So, I just wanted to understand what are the key factors for this type of growth in our profitability, sir?

Varun S. Kumar:

Yes, sure. I believe you're referring to the Y-o-Y numbers, Q2 versus Q2…

Janil Patel:

Q2, yes.

Varun S. Kumar:

So, there are two contributors to this factor. One is an improvement in our gross margin from 26% to 30.9% over the year from Q2 FY26 to Q2 FY27. This is primarily driven by two aspects, which I already touched upon, wherein we had launched the luxe series projects, which are higher-value, higher-premium projects in the second half of FY26, which are high-margin

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Veegaland Developers Limited November 09, 2026 projects. And these margins have started to be recognized in this P&L as per the revenue recognition policy of the company during this fiscal. That is one aspect of it. Second is a couple of projects which are nearing completion, we are having a reassessment of the estimates. As we near completion of projects, we have found some we have been able to obtain some cost efficiencies in some projects which have improved their margins as well. The combined effect of that is what we see as a higher margin for this period. So, it's the product mix and cost efficiencies. And also, if you see on a quarter-on-quarter basis also, the margins have been improving over the past three, four quarters. Secondly, there is also a treasury aspect to it because if you see the other income also has increased over the quarter and half year. So, the other income is contributed by treasury aspects of FD fund. So as per RERA, we are supposed to maintain, utilize some funds on a restricted manner only on utilizing those Janil Patel:

Okay.

Varun S. Kumar:

Funds for the project. So in the meantime, where it is not utilized, RERA last year gave us the permission to have FDs opened. So, we are able to park those funds in FDs right now, and that is also contributed to the additional income. Both put together is what contributes to the EBITDA increase. We are also having some efficiencies of scale also because of the increase in the volume, but the indirect expenses have not really kept up or increased to that extent as well. So, all these factors put together, the EBITDA margins have improved, and the corresponding impact has come to the PAT margins as well.

George Joseph:

So, if we look at our input cost, material cost steel, in fact, it was 71,000 per ton in April, it has come down to 68,000 per ton in September of course, it has slightly gone up to 71,310 or 71,400 in September. But all other inputs like cables and wires, CP items, CP and sanitary, PVC, of course, it has slightly gone up. But otherwise, all because there is not much cost escalation in steel, that we could save on the steel price, right? But at the same time, there is an increase in selling price because of the market and market demand. So that is also contributing to the business. If you look at our profit, I mean, when we envisage a project, we work out our cost on aI mean, scale offor example, cement, cement will work out at around INR360 per bag. But actual requirement, I mean the cost is much less. So that at the end of the project, there is a the project cost or execution, I mean at the time of completion, it's much less than the projected cost. So, by that, there is a cost efficiency throughout the project, and in addition to that, our I mean the project management expertise, all that is adding to the profitability.

Janil Patel:

Okay. So, my next question is like in terms of our margin sustainability, like if you see out of our total projects, how many projects are basically higher-margin projects? And second thing is how sustainable these margins are, sir? We did one of the great margins this quarter as well. So how sustainable this is? Can we go to our previous margins of FY23 of around 23%-21%, if I'm not wrong? So, what are the expectations on the margin front as well, sir?

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Veegaland Developers Limited November 09, 2026 Varun S. Kumar:

So, as we discussed, the improvement in margin is an increase during the product mix and also that resulting in the average realization overall of the company being higher. So, we would not be touching upon the specific margins of project-level, but at the segment level, we can say that luxe series projects are generally more sort of higher-margin projects than premium and midpremium. And as you see, these luxe series projects are increasing in the number of increasing in the composition in our product mix. We currently have two projects in luxe series and the project that is as stated in the presentation, Fortune, is also a luxe project, which as we speak has already been launched. So that is the key driver to increasing the margins. And in terms of sustainability, we intend to keep the product mix similar going forward, and we believe we can sustain the same margins going forward as well.

Janil Patel:

Okay, got it. Got it, sir. And can you also throw some light on our cash flow generation, sir, how we are generating cash flow from our completed projects, that would be much helpful.

Varun S. Kumar:

In terms of the cash flow generation, the cash flow is generated as the project is progressing, because the customers are paying upfront based on milestones of the company of the progress of the project. And so, it is at you mentioned since you said completed projects, we do not have any inventory in completed projects currently. And so, all cash flows generated from the projects are as the cash, as the projects are progressing and the construction is happening. So net cash flow is what comes to the balance sheet at any given point in time. So, to give you a sense of how the cash flows flow in a normal project, let's say a project like Amora, which has sold very well like 58% in four months, the order book is already set for the entire project to obviously cover the cost of the project as well. So, the cash flows would come in as the project is pending, and the initial investment in the land also would get recouped as the project is progressing, maybe around halfway through the project itself, that investment is recovered. That is how the cash flow works.

Janil Patel:

Okay. Got it.

Varun S. Kumar:

Yes.

Janil Patel:

And also sir, out of our INR501 crores of unrecognized revenue, so what is the amount expected to be recognized in next 1 to 2 years, sir?

Varun S. Kumar:

We would not be commenting on the projected numbers, but out of -- as we already answered to another question, this INR500 crores unrecognized revenue is stated to be recognized over the period of the project, which would span as much as FY30-'31 as well. But that depends on the project life cycle. That depends on the project cycle. So, it will not be like INR500 crores by 5 years, no. So, the majority of the projects are, let's say, FY27 and '28 completion are the larger chunks. So, those projects' revenue would naturally get recognized in those periods quickly. But it is not a linear function, as such. But basically it gives us a visibility, how this number is to be looked at

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Veegaland Developers Limited November 09, 2026 is, without making a single additional sale, the company already has INR500 crores of revenue, already contracted but yet to be recognized. Janil Patel:

Okay. Got it, sir.

Varun S. Kumar:

Thank you.

Janil Patel:

Thank you for such a great detailed explanation, sir, and best of luck for the future, sir, and Happy Diwali.

Varun S. Kumar:

Thank you. Happy Diwali to you too.

Moderator:

Thank you. The next question comes from the line of [Shradha with Oracle Investments Please go ahead.

Shradha:

Hello. Hi, sir. Hope I'm audible. The numbers look quite promising. So, good luck on that. And my first question to you was, does the company in any way see a need for incremental borrowing requirements to support, say, ongoing projects or even future projects for that matter?

Varun S. Kumar:

Can you just come again? You are saying incremental borrowing requirements, right?

Shradha:

Yes. Do we see any incremental borrowing requirements for our ongoing or probably projects that are in the pipeline?

Varun S. Kumar:

So, on a liquidity standpoint, specifically, if you look at it, we may not require additional borrowings from a balance sheet standpoint. But as a matter of financial discipline, we ensure that we have a certain portion of the project cost being sanctioned as project loans by Scheduled Commercial Banks. This is a matter of financial discipline wherein we ensure that some amount of leverage is maintained on the books and that also helps us with home loan approval for the project by other banks as well. So that is how it is so for all ongoing projects also, we have the plan to have project loans availed, which are term loans based on the progress of the project. So that is there. But on a balance sheet level, as we commented on the previous question as well, we don't intend to increase the leverage of the balance sheet in total, maybe beyond 0.5:1 in the mid-term anyway.

Shradha:

Okay, sir. Thank you. My another question was, what are our priorities regarding cash flow management and working capital efficiency? What are the, how are we prioritizing it?

Varun S. Kumar:

So, in terms of working capital management, our priority is naturally to deliver on our promises with our customers to deliver the projects. So, that is. So, our key driver is to focus on the collections and get the receivables realized as soon as they are raised without additional delinquencies or any delays in that matter. We do not face any such challenges at this point in time.

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Veegaland Developers Limited November 09, 2026 And just because I commented on that, I would like to point out that we do not have a risk of non-payment because the title of the project or the product is not transferred until every rupee is paid by him or her. So in that scenario, we do not have such a risk. But in terms of the timing of collection, we are constantly following up with both the customers and their bankers who are funding the particular home loan. So that is our key focus in terms of collections and realization. And the working capital management primarily is to ensure on the outflow side is to ensure that the project progress is on time and all operations are getting unencumbered. In that regard, we are, as you very well know, RERA compliant, and every rupee is certified by a chartered accountant, engineer, and architect on what we are spending on the project. And we have separate bank accounts for each project collection, which is a RERA requirement, but we religiously follow that activity, and we are very strict on those aspects. So, these are the key aspects in terms of working capital. And the next aspect is on additional inventory acquisition, that is land. So, as we already discussed, we have a robust plan in place where we have an idea of where we need projects at what point of time, and the cash flow planning and the cash flow management is also done aligned with that plan. So we ensure that we have sufficient capital to redeploy into inventory of land wherein to sustain the growth and sales momentum that we currently have. Shradha:

Okay. That answers my question. Thank you so much, sir. Thank you, and good luck for the future.

Varun S. Kumar:

Thank you so much. Thank you.

Moderator:

Thank you. The next question comes from the line of Madhav Das with Mehta Investments. Please go ahead.

Madhav Das:

Thank you for the opportunity. So sir, I have two questions. First being, what is the current cancellation rate and how is it trending over the past few years for us?

Varun S. Kumar:

I will not have the specific numbers with me, but I can give you the trend on this. So cancellations happen at two points of time. One is where the customer has booked the apartment, and before the agreement itself, they will cancel. And the second is after the agreement, if the customer will cancel. So from a financial standpoint, the key aspect is after the agreement, because only after the agreement will we start recognizing revenue and recognizing real receivables or assets, any amounts to be recovered from them. And so from a financial standpoint, after the agreement, there are very few cancellations that happen in our projects, because our customers are all almost 100% end-users. So they are buying their apartments for their own consumption or some consumption of their family members as it may be, and it is not for resale as we speak. So that risk is very, very low. There are very few cancellations that happen after the agreement execution. Before the agreement execution, after booking, there would be cancellations that happen, which are on a higher number because of personal choices, or they might book the apartment before

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Veegaland Developers Limited November 09, 2026 seeing the apartment. Once they see the apartment, they might want to have their personal preferences and may not have a unit that they specifically prefer. They would want direction or where the bedrooms are and all those things. So cancellations can happen as part of this business. But wherein the financial aspect kicks in, that's after the agreement execution, there are very few cancellations. George Joseph:

Again, coming on, we had a few cancellations. But I mean I should tell you that these cancelled apartments, we were able to sell at a higher price than what is already contracted. So we are not losing anything. In fact, we are making higher profit on a quarter's cancellations.

Madhav Das:

Okay, sure. Thank you, sir. And another question that I have is, how does the company plan to maintain the sales momentum amid our changing interest rates and the competitive market conditions that are going on?

Varun S. Kumar:

So we are confident that we will be able to maintain sales momentum based on our past experience as well because during the previous cycle of interest rate hikes also, we were able to maintain very good sales momentum. As we speak, we have a significant, a substantial amount of customers who are availing home loans. But the fact is that since we operate in premium and luxe-series segments, they are not very as sensitive to interest rate hikes as the affordable segment may be, because they have the liquidity to afford slight interest increases. And after the RBI's regulation on charging of prepayment penalties for fixed-term loans, almost all loans which are given by any NBFC or banks for that matter are floating-rate loans. So every customer who acquires this thing, the apartment, and takes a loan for it is very well aware that he is susceptible to such economic changes moving forward. And it's a 30-year, 20year loan, and they are bound to go through at least one or two cycles of interest rates based on the economic aspects of the country. And so we do not expect a sudden disruption in sale or slowdown in the sales momentum just because of the interest rate hikes, because the 25 basis point hike is not something that would hurt our customers who are slightly more of the upper layer of the economic strata .

George Joseph:

As I mentioned earlier, the NRI customers most of them do not go for a bank loan, they have their own funds. And again, coming to the marketing part of it, we have a very strong marketing team. Our digital marketing is very, very strong. We generate about 10,000 leads in a month. Out of that, immediately these leads are contacted, and we convert them to visits and then sales. So the marketing is, I mean, an ongoing project, and the team is, I mean, fortified with additional staff and with more training and all that. So the digital marketing, and we have different segments of events, they say like, I mean we have exhibitions. We have started exhibitions now in Gulf countries. In upcoming markets, we conduct exhibitions, and we have tie-ups with main channel partners.

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Veegaland Developers Limited November 09, 2026 Then we have referrals, then also the institutional sale like banks and institutions. We launch a scheme, and we have institutions. These segments are all catching up, and the traction is getting better. Madhav Das:

So thank you so much for answering the questions in such great detail and patiently.

George Joseph:

Thank you.

Moderator:

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

George Joseph:

Thank you, participants. We have very insightful questions which will help us going forward. And I repeat that our company is a credible organization built on values and ethics and strong business tradition dating back to 1977. The company is well accepted in the market. We are able to launch ,where ever we launch, we are able to have good sales within a very short time. And we believe in quality, timely delivery, and after-sales service, and our customers are extremely happy. We are able to sell our product by referrals and direct contact, and we are able to see the traction going forward. And I think the company has a great future. So thank you very much for the participation and the insightful questions which will take us going forward. Thank you very much.

Varun S. Kumar:

Thank you, and Happy Diwali.

Moderator:

Thank you sir. On behalf of Veegaland Developers Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.

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