Aditya Birla Real Estate Limited (ABREL) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Aditya Birla Real Estate Q4FY26 Earnings Conference Call hosted by HDFC Securities. As a reminder, all bias bin 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, then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jay Shah from HDSC Securities. Thank you and over to you, Mr. Shah.

Hi. Good morning, everyone. On behalf of SDS Securities, I would like to welcome you all to the full QF526 and full year F526 earnings conference call of Aritabilla Real Estate. Joining us today from the management are Mr. R.K. Dalmia, MD, Aritabilla Real Estate, Mr. K.T. Jitandran, MD and CEO of Aritabilla Real Estate, and Mr. K.U. Shah, CFO of Aritabilla Real Estate. We will begin the call with opening remarks from the management, following which we will open the floor for question and answer session. I would like you to hand over the call to the management for opening remarks. Thank you, and over to you, sir.

Thank you, sir. I'm R.K. Dalmia. Good morning, everyone, and thank you for joining us for our Q4 FI26 admins call. India's economy remained resilient in the quarter ended, March 2026, Q4 FY26. In FY26, GDP growth estimated at 7.6% and FY27 projections of 6.9%. It reinforces its position among the fastest growing major economies globally. Supported by strong domestic bank, a stable policy environment, and continued investment activity, despite of some global factors, including geopolitical tensions in West Asia and potential energy price pressures. Inflation has remained under control at around 3.2 to 3.4 percent in early 2026 and projections of 4.6 percent. The real estate sector continues to benefit from this largely supportive condition, strengthening sector's long-term growth trajectory. In terms of industry performance, the resignation demand remained stable in Q4-FI26. However, premium and luxury segments continue to outperform, while affordable and mid-income demands soften. Tier 2 city supply showed a moderate dip, with a growth absorption for over 526. MMR remained resilient, with a moderate growth in both absorption and supply over the years. Market dynamics in Bengaluru remained strong and favorable, and it witnessed growth in both absorption and supply by delivering a healthy increase in price growth worldwide. NCR has witnessed decrease in supply by Y, but growth in absorption coupled with increase in price growth. Pune has seen relatively sharper moderation in activity in transport supply. Pricing has shown a healthy growth across all the four regions, YY growth MMR 7.4%, Bangalore 13.9%, NCR 8.5%, and Pune 6%. Overall, regional trends continue to refresh premiumization and more selective buying behavior. Industry players are responding to this. This evolving demand environment through calibrated launches, disciplined pricing strategy, and flexible payment plan to support a job set. On the commercial front, the market continues to witness storm-leasing activity supported by GCC and demand for grade-A assets, resulting in a tightening vacancy level and a continued rental upcycle across key markets. The regional sector is stable with increasing emphasis on execution, brand strength, and product depreciation. I am pleased to share that we have delivered exceptional close to FI26. Q4 FI26 has been one of our strongest quarters to date. We achieved pre-sales of Rs.4,288 crores, reflecting a robust 69% QOQ increase. The lecture for Q4, FI20, remain healthy. We had Rs.994 crores, and we recorded area sales of 3 million square feet, making an impressive 75% QoQ growth. These momentum are fueled by the outstanding response to our new launches across regions. Villa Areca phase 2 in NCR continued this... Long trajectory with 97% of large inventory sold in the large quarter itself, contributing Rs. 1,600 crores. In MMR, Villa Taranya witnessed increasing demand, delivering Rs. 952 crores in sales. Our Bengaluru large Villa Trimaya Phase 4 continued to build on the success of Earlier phases, 110 rupees 649 crores. And in Pune, Villa Punya phase 2 added Rs. 250 crore to the quarter, reinforcing our presence in Pune micro-market. For the full year FY26, we closed with the free sales of Rs. 8,136 crores, collections of Rs. 3,341 crores. An area sold to 5.5 million square feet, reflecting the depth, resilience, and stability of our building. Our redevelopment front, we announced our maiden redevelopment project in Khar, with a GDP potential of Rs. 1700 crores. Discussions with several more societies are progressing well, and we remain optimistic about concluding additional partnerships in the months ahead. This segment will further contribute to our growth going forward. Operationally, our construction progress remains firmly on track across projects. Safety and sustainability continue to be at the heart of our execution approach. Our rigorous safety practices were recognized by the British Safety Council, which conferred upon us the precious sword of honor along with the five golden star ratings. Our commitment to forcing an inclusive, diverse, and equitable workplace is stronger than ever. We are proud to share that Birla State was recognized as one of the best organizations for women in 2026 at the sixth edition of ETNOW. Our ESG leadership was further acknowledged by British hold, which ran EBRF among India's The most sustainable company and number two in the real estate and REITs category. As we look ahead, our commitment remains unwavering. We continue to prioritize designs, excellence, customer-centricity, and the highest standards of safety and quality. We are building not just homes, but superior experience, creating long-term sustainable value for our shareholders. Thank you. Thank you so much.

Thank you, sir. Sir, should we open the floor for the Q&A?

Please go ahead.

Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions, may please press star and 1 on their touchstone phone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use only 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 Karan Khanna from Ambit Capital. Please go ahead.

Yeah, hi. Good morning and thanks for the opportunity. Just a couple of questions from my side. Firstly, KT's sustainment sales seem quite healthy for the fourth quarter, almost at 20%. For the 7,300 crores of inventory that you have remaining, what kind of sustain in sales do you foresee going into FI27? Yes, J.P., we can hear you now.

Yeah, so as a sustenance, yeah, so we had a very good traction in our Bangalore project, which is largely sustenance-led, and also in Niyara. Otherwise, the bulk of it was from, you know, new launches. So we're not giving a clear guidance for the next year. All I want to tell you that, I mean, for the current year. We have got about 9,000-plus crores of new launches and 7,000 crores of sustenance sales coming up, but we are refraining from giving any guidance because it's very difficult to actually predict what kind of sales we can estimate. So that's why I'm not giving any guidance.

No, that's fine. Just following up, you know, on the Mumbai market, if you could just talk a bit about the overall market, given that, you know, you've seen 1% growth in absorption and 2% growth in supply, and yet your existing inventory in Mumbai is at about 4,000 crores, and the pipeline inventory for FI27 is also very much concentrated in Mumbai, especially worldly. So, how are you looking at the luxury market in MMR overall, and how do you plan to manage launch timelines to allow for ample response to the launches, and also on the launch pipeline, if you can talk a bit about at what stages of approval are all these projects currently at, and I'm just trying to understand the downside risk in terms of launch delays that one can build in these projects.

Yeah, so I think we had a fairly good year last year with respect to Mumbai. Yes, the launches came at the very fag end of Q4. Thane Virla Taranya did extremely well. We did about 960 crores or so of bookings in the few days that was left for us in Q4, and the momentum continues. And Nihara also, with whatever left of the inventory was there, I think they had a healthy strike rate, but at least two to three flats per month last year. And with the new launch, I think it will really pick up. That's a different product, and we expect a very strong response on the market. Already, we have a reasonably strong queue lined up for this project. Thank you. We also signed a new project in a car, which we are really working overtime to make it launch ready. But hopeful that we'll be able to make it. And it's a very exciting market, very strong demand, coming up with a unique product. So pretty excited about that. Our launch in Boiser also, again, it was a very far end, but we did clock over 80, 90 crores there. We are expecting to sell it out completely this year. So, I think from the micromarkets where we are in, especially, you know, the Thane, Nabi Mumbai, Junction Market, Worli, especially with our brand and Niara, which has been created very strongly, and the new micromarket in Western suburbs, we are pretty excited, and I expect a very strong response for us in this coming this year. As far as the launch for Birla, Niara Tower C is concerned, it's really touch and go. We are pursuing very hard to get the approvals. It could be touch and go. We're expecting first half of H1, but it's quite possible that by the time we take the launch, it may spill over to Q3 also. So fingers crossed about that. But overall, I think we have enough time for us to do very strong numbers in Bombay this year.

Sure. And just lastly, on Bangalore, given that this has been the strongest market for you and also the strongest response, and yet you don't have any major launches slated for FI27. So how should we think about the BD that you're targeting in this market going into FI27?

Yes, yes. Good question. I think we have had a wonderful response in all of our five projects. We have handed over one, and we are in the process of taking over another one this year. So we'll be left with Rimaya, Ujatsui, and Iwara. We are expecting very strong sustenance sales from both Trumaya and Iwara, and we are also very aggressively looking at BDs. We have quite a good sort of, you know, medium-sized proposals, which are working very hard. Largely, our total focus this year will be concentrated on building our BD portfolio, and we are quite optimistic about that.

Great. Thank you, and all the best, Kiti. Thank you.

Thank you, sir. We'll take the next question from the line of Jaish Shah from HDFC Securities. Please go ahead.

Hi. Can you hear me now? Yeah, Jaish. Hi, sir. So, can you quantify the launch timing like in terms of H1 and H2, FI27, which approvals remain key dependencies? And also, like we are seeing that like in Worley, there is quite a good supply now. So how are you, like, do you see any slowdown in luxury absorption or pricing resistance given the increase in South Mumbai supply, like, amongst the peers?

Okay. Thank you, Jay, for your question. So, first, in terms of timelines, as I mentioned about Tawar C, Birla, Niyaram, I mean, the brand has come very strongly in that micro market, and we are still commanding a good premium and demand, and we expect Tawar C to really accelerate that demand, considering the initial response that sort of, you know, we are building up. Of course, we haven't launched it, but, you know, discussions with channel partners, etc. The only challenge is that we are working very hard to get the approval. So, it may be, you know, we may just get RERA at the end of Q2 and we may launch it either in Q2 or maybe early Q3. But we want to make sure that we are completely ready in all terms when we launch it. So, that is Q2 slash Q3. There will be a new phase that will happen in Q3. which is the Thane second phase. Once we sort of exhaust our, you know, current phase substantially. Then we have got a new project which is a science redevelopment project in Khar, which we are working overtime to make it launch ready in this year itself. So definitely that will be Q4. Then Birla Navya, the last phase. That should be in, again, Q3, and then Villa Evam in Manjari, it's in Q4, Pune again. So this is largely the timelines.

Okay, thank you. And also, one more question on BD. So, like, can you share the current active BD discussions, like, by geography, which is MMR, NCR, Bangalore, and Pune, and the preferred asset light versus outright acquisition?

Yeah, I mean, I can't just share. Thank you in great detail, but I can generally give you the trend that we are looking aggressively at Noida, sort of an outright, Gurgaon, JDA, Mumbai, JDA, and outright both, but lots on redevelopment, at least four or five projects, Pune, outright, and Bangalore, JDA, and outright.

Okay, but can you, like, quantify, like, the amount of GDV?

So, overall, I could say roughly about, yeah, roughly about 60,000 crores of projects we are at this point of kind of pursuing. We are trying our best to maximize what we can do.

Okay, and what would be the mix for MMR in terms of, like, in the 60,000?

MMR will be about 35.

Okay. So, and, uh, so, and, uh, lastly on, uh, so just wanted to know, like, uh, what are we seeing in terms of target steady, uh, steady state, operating cash flows, conversion from pre-sales over the next couple of years?

Sorry, what are you exactly asking? Uh, in terms of your, uh, uh, customer, uh, collections, are we talking about that? Correct. Correct. Customer collections, Jayesh, we are largely, most of it is linked to construction progress, barring a few of them, but mostly we attempt to collect at least 65 to 70 percent by the time we finish the structure of the building. So, there was a little bit of flexibility here and there, but largely that's how we're looking at. So far, we have been doing very strong in customer collections. We grew by more than 23% from last year's, last to last year's collection to last year. We are looking at a very healthy growth this year also from that number.

Okay. Okay. Thank you so much.

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

Yeah, thanks for the opportunity. So just first one, again, to be very specific on Bangalore launches, which Kanand earlier asked for. I don't see a last phase of Srimaya coming this year. You know, any specific reason, right? Because we don't have too much of inventory there, almost 150 odd goods only.

Hi, Pritesh. Yeah, I think we are now focusing on execution. We have a lot of, you know, sold inventory. We are building it, and I think we can get a healthy margin. I think we'll wait and, you know, really maximize the last phase. Prices have really gone up there and every launch has been at a higher price. I think we really would like to now maximize the revenue from our final phase. As you mentioned, it's not much, but it's worth waiting for also. This is a project which has taken about five, six years just because it has been a 52-acre project. So it helps us to really plan the launch of the last one in a big way in terms of if there are any kind of cost escalations or anything. I want to just keep that inventory as a hedge because there is enough of done, enough of positive cash flow is there. So we're really focusing on now really maximizing on the last phase. So that's why there's no hurry to launch that.

In terms of, let's say, any business development we sign off from here on, We have a car getting added to the FY27 launch pipeline, and we signed that project just in March or April. So any of the potential business development opportunities you think can be launched this year by Q3, Q4, or for this year, we are, you know, this 10,000 crore, roughly 10,000 crore kind of launch guidance should be the number to look at.

Pritesh, I would really refrain from giving any kind of guidance. You know better than that's how indeterminate it is, whatever guidance you may give. I'm only happy to say that we did give, finally, in the Q3 last year, guidance that will exceed, and we did manage to exceed that. We're pretty happy about it, but it is like that also happened without the launch of our fee. We couldn't launch it. So any guidance that I give could be misplaced because of the very sheer uncertainty of when these launches can take place, largely dependent on the approval schedule. Approvals are largely based on two things. One is the environmental and the NGT. So those are pretty indeterminate things. So we do our best in estimating them. I don't really want to, you know, give any sort of clear estimates. Having said that, our whole attempt would be to, you know, launch as quickly as possible all of our projects. Because that's where we try to, you know, put all our efforts in, since we pay full price for the land. I would love to be in a situation where I can grab a project which has all the approvals and launch it immediately. But it's quite unlikely, because it's very, very difficult to get that sort of project and also to our standards. So that seems a little too far-fetched, but I won't lose hope on that.

Sir, sir, got it.

I'm sorry to interrupt you, sir. I would request you to kindly rejoin the queue. There are others who are waiting. Thank you so much. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to only two per participant. Should you have a follow-up question, please rejoin the queue. We'll take the next question from the line of Akshay Thakur from Helios Kapiti. Please go ahead.

Hello. Hi, sir. Thanks for the opportunity. So, my question is pertaining to your land in Talagao and Kalyan. So, we have a huge chunk of land in Talagao. From what I got a sense from a previous meet that you plan to do a senior living project there and that area is getting more projects in similar manner. So, can you give any guidance on the GDB potential or what is the plan in terms of numbers for Tarlegaon and for Kalyan as well?

Hi, Asher. Yeah. So, as regards these two parcels of land, this belongs to our historical land parcel that the century had in its kitty. Also, we must remember that Talagam land is an agricultural land. It needs to be converted, etc. So, it's in a very preliminary stage. It's not part of the Pune development scheme as of yet. So, the entire process of conversion, etc., is expected. It has not happened because the region has not come still under the MRDA, etc. So, it's about 45 acres of land. So, we have plans, we have aspirations for that. Nothing is really clearly laid out as of now. Why we thought senior living is because, of course, the climate is proximity to the Addis Abirla Hospital. And also, the government is coming up with some friendly schemes for senior living, even if it is not a converted zone. So, we are exploring from those point of view, but too early to give any kind of clear details and numbers on this. Similarly, in Kalyan, we don't have, as of now, any land which is ready for development for the next few years. Whatever we had, it's all exhausted now. The large plant, century rayon and all, is too far-fetched, and it will take a lot of time because of production going on with more than 7,000 workers, etc. So that's not in the offing right now. So that's the update on Thaligao and Kalyan.

Thank you for that. One more question. On Thanefront, you had previously guided that there would be some sort of commercial projects also coming up. Could you share an update on that?

Yeah, so we have this, you know, Birla Taranya, which is land bought. We have a portfolio there of about 5 lakhs. So we are in the process of designing that. But it would be either fully leased out or maybe partly, maybe one tower we may look at strata sales, faster cash flow and more demand and more frontal sales. So we are in the process of finalizing that. Once we get a clear picture on that ourselves as a team, then we'll be happy to disclose that. But definitely, there are plans to create at least about 5 last square feet of commercial.

In Dhane?

Yes, in Virla, Dharanya.

Okay, okay. Thank you so much, sir.

Thank you.

Thank you. The next question is from the line of Varun Jula Surya from 361 Capiti. Please go ahead.

Yeah, hi, sir. Sir, first of all, could you just update us on the cash from the ITC deal? When is it expected? And what is the current statistics on that?

Sir, the ITC transaction, the discussion with ITC are progressing well. As you are aware, we received a key regulatory approval, which is the Competition Commission of India. That application was made by ITC and government granted that approval. Now certain state-level approvals are pending, and we expect to conclude the transaction in this quarter. So it's moving, progressing well, and our estimation and expectation is that it should get completed in this quarter.

And, sir, on the construction spend, sir, how is it looking like for the FI27, and how much CAPEX do we plan to spend on the BDs this year, sir?

So, from a CAPEX point of view, construction spend this year in 27 should be close to 1,000 Yeah, the construction spend this year, pure construction spend, would be around 1,000 crores. As regards to CAPEX for land acquisition, we have a very strong... Cash flow is positive. We have almost 1,000 crores of mutual fund balances at a console level, and we also have almost 1,300 crores of cash and RERA balances. So from a CapEx point of view, we have the adequate cash to make acquisitions. Further, we also have demonstrated partnerships with leading global players. So in case of any large acquisition, we have the ability to bring on partners. As and when required for making capex land acquisition.

For the construction spend, you mentioned 1,000 crore, right? Because this will be done 31.

So, see, 31 includes, you know, all expenses. It's the pure, I'm mentioning to you the pure construction spend. Because the project development outflow, which we've shown, 3.1.3.1, includes, you know, operations, expenses, that's around 920 crores for the current year. I stand corrected for the FI 27, it should be 1,200 crores. This also includes other items like, you know, approval costs, design costs. You know, any, you know, deposit paid for the deal which we announced recently. So, it's a combination of all of that. So, 3131, which is there in the cash flow, that also includes NDS or accounting adjustments whereby for revenue share. So, that's what we have put in the cash flow. So, in that sense, last year, we spent 924 crores on construction. This year, we should be spending 1200 and odd crores for construction.

And sir, on the BD front, since this year we have not done any significant BD, is it the IRR or the expectation that is not allowing us to approve the BD or is it, you know, the land title or there is another some other issue which is being holding up?

Hi, Varun. Yeah, no, no, it's a combination of IRRs, of course. We look for healthy IRRs because, you know, this is a multi-year project. You know, multi-situations come up, you know, cost escalations and all that. So we provide for all of that in our business plan. And we also look for a reasonable, you know, strong hurdle rate in terms of IRRs. For outright, we look at at least 16%, and if it is a GDA, upwards of 18-19%. So, but that's not really the hurdle, you know, because there are enough and more proposals coming. The only thing is that, you know, due diligence is very particular about what kind of risk we take. So, some of them happen, some of them doesn't happen. But I think it's always space to be careful and prudent because, as I mentioned, the business goes through cycles. The business goes through different economic cycles also and real estate sentiment cycles. So, we don't want to be caught, you know, hanging in any part, you know, oh, this week risk we didn't consider, and, you know, therefore, it will come and kind of, you know, bite us back and put us back by a few years. It has happened. It happens in real estate all the time. We have to be careful to the extent possible while doing BD. But that's not the real case. See, BD is not something which we can keep on saying every quarter we can do so much because it's an exploratory thing with so many risks up there. As I mentioned, if the right combination of risk and return comes at any particular point, it's possible that we may do multiple projects in a single quarter or we may not do anything for a few quarters. So I think that we have also demonstrated that this happened in the last two years for us. We are pretty confident, given our pipeline and the kind of projects we are pursuing, that we will be very soon announcing of them. The timing we can, of course, predict very accurately. It's all estimated. But it's very probable that now that we have swung from the other side of the pendulum, suddenly we may announce quite a few deals together. So, it's not lack of resources or lack of taking calculated risks. It is just the timing. All of these things should come together. So, we are not really worried about that.

Okay, this is the last question.

Mr. Varun, I'm sorry to interrupt you, sir. I would request you to kindly rejoin for follow-up. Thank you so much. We'll take the next question from the line of Biplab Devarma from MK Global. Please go ahead.

Good morning, everyone. Sir, first question. Good morning, Biplab. Good morning. Sir, I don't see, I don't see, you have explained. I also don't see Arica or Mothra Road. So, Arika, I think there is one tower left, and you have sold everything, excellent response, and congratulations on that. So, just wondering what happened to Arika, and what is the status of Madhura?

Yeah, hi, Viplav. So, Arika, I think, you know, of the, all the towers, seven towers, you have sold now, six towers, with almost, you know, 100% performance. I would really like to do something extraordinary on the last hour, and I would like to wait and, you know, time it better, you know, in a much more market, because in that market, and I've explained it to you in the past also, there's absolutely no supply, and this project has come out so well, come out designed well, to really do something extraordinary on this. And I think, you know, we can improve our pricing, you know, considerably from what we have done today, because the very unique positioning that project has attained in that micro market on the back of the Aditya Vila brand name. So, I just want to kind of, you know, maximize the returns for that. Mathura Road, as you mentioned, in Delhi, we have been struggling with the approval thing. I think now we have found a way we can, you know, we are making progress there in getting approvals. But I don't want to take a chance and, you know, declare that it will happen this year, but I'm quite confident that it will happen early next year.

And my second question is on your, you know, beginning of last year, you gave some guidance of doing 15,000 crore of, around that number in FI 28, and so for that, we need to have enough GDP in our portfolio. So do you think this, I mean, I know you will be doing a lot of business development this year. I'm really optimistic. So, do you stick to that number, and would you be able to do enough BD to reach that number?

The club, I think, you know, yeah, you are very absolutely, you know, correct in saying that it's not just doing BD, but also the timing of BD is very critical in finding out which year, how much, you know, sales booking will be done. Looking at this kind of... of trajectory that we're having today. It's quite possible that 15,000 instead of FI28 may kind of slip over to FI29. There is a definitive possibility of that. We'll be trying our level best to do this, but I think it's quite likely that it can move up from FI28 to FI29, precisely for the reasons that you mentioned. But our attempt will be to continuously stack up our BD pipeline and to deliver on those.

The next question is from the line of Pritesh Seth from Access Capital. Please go ahead.

Yeah, I have two questions. Yeah, hi. So, a couple of follow-ups. First, if you can highlight the status of the commercial projects that we are planning in Worley, the century in phase 2 and redevelopment of century 1.

So, Pritesh, our attempts are on to, you know, start these projects as quickly as possible. We are in the design stage, you know, planning the layout, etc. You know, it has to integrate with the rest of the planning location. So, we have already started doing that. We'll try a level best to actually start the construction from this year onwards. That's our attempt. Again, sorry? For both of them or just one each? I would start with one of them at least, whichever goes off the thing, and we'll have to kind of plan our investments and who our partner is, etc. We should take both of them together or we should plan one after the other. How should we stagger it? That is still under consideration. It also depends on how we get a partner for our projects. But whether we get a partner or not, we'll definitely start the, commence the construction this year.

Got it. And second question on the cash flows. So, we club, you know, the land spends, construction overheads in one line called project development costs. Maybe, K.U., if you can help me with the split of this 3,100 crores that we have spent on project development costs, how much of it was for, you know, the land acquisition, how much it was for Pure construction and how much for owners, that would be helpful.

So, maybe we can take that, because there are a lot of items, we can take that offline.

Okay, okay, okay, no worries. Thank you.

Next question is from the line of Fenil Brahmabach from Choice Institutional Equities. Please go ahead.

Hello. I'm audible now?

Yes.

Yes. So, good morning, everyone. My first question is on this other expenditure, which you have reported for Q4FI26, that is around 152 crore. So, I just want to know what is the components of those other expenditures, and this is like one-off, or we can expect this in coming period?

We have an exceptional item in the call. So, there is a share of loss which we have from the joint venture because the sales, marketing expenses, etc. are not to be inventorized. And the other exceptional item is due to the labor code and also, you know, a provision we have made for one of the joint ventures in the textile business which we've had. So, that is the exceptional item. So, both combined put together is around 39 crores.

Okay, okay. So, okay, and so out of this 152 crore, you are saying 39 is the one-off related to labor code and the other, this paper and pulp business?

Yes, sir. The amounts are, they are in millions.

The amounts are 152. Okay, okay. Yes. And, and, yeah, and also checking on this car development project. So, have you signed DEA for this project or is it just under the process?

No, Mr. Bram, but we have signed the DA. We have started the process of, yeah, we started a demolition process and all that.

Again, the last question related to collections. So, our collection dips in this quarter, YY21Q. So, any specific reasons like because of delay in construction or getting approvals or like we haven't had any delivery during this quarter. So, can you highlight any specific reason behind this?

No, so our collections have been very strong for the financial year. In fact, we did almost 1,000 crores of collections. We are slightly lower than last year because we had major launches in March. This has a 98% collection efficiency. So whatever bookings we have done, those collections would come in the Q1 of this year, and April collections also have been very strong. So to that extent, that is the reason why there is a, you know, the way the collections pan out.

Okay, got it. Thanks. Thank you. Thank you so much.

Thank you. The next question is from the line of Murali Krishnan from Sundaram Mutual Fund. Please go ahead.

Yeah, thanks for taking the question. I just wanted to understand, so you are indicating that we are holding a few towers, Erica and other towers, but whenever we launch a project, those are almost like getting sold out. So, what is our strategy, sales strategy, well, you know, for a particular, for a large project? So, yeah, and we are seeing that we are launching in phases also. So, just wanted to understand the sales strategy.

Yeah, thanks. So, hi, Murali Krishnan. See, the sales strategy, of course, you know, is, you know, we try to launch a certain number of towers, apartments, units, etc., creating a market assessment. of that particular micro market, how much is the demand that can be absorbed, what kind of strong velocity can we command, and what kind of ticket sizes we can, you know, deliver or we can launch in that market, which will get absorbed. So, if you launch too much, then, you know, and you're not selling, then, of course, there will be a cash flow mismatch, because construction has to be done even if you sell one square So, we try to match, to the extent, the best of our estimate, how much demand is the market having, and we should at least try to get about more than 50% of the product launched at sales. Also, and we try to hedge and manage the entire business plan cash flow by, you know, dividing the entire project into reasonable sizes of phases. If it is a large enough project, if it is not a large enough project, then we may do it in single phase. Also, depending on which micro market it is. Now, our aim constantly in sales is to get as quickly cash positive or cash neutral as possible. Once we have achieved that and we see that the project is now completely in cash positive area, we will try to maximize the margin, the EBITDA margins. But IRRs, return on capital, return on capital employed is the first goal. So, to that extent, we go after velocity. And once we achieve that, then we look at also, you know, maximizing the EBITDA margins. So that's largely which we...

Next question is from the line of Chetan Sharma from Systematic Shares and Stocks Limited. Please go ahead.

Am I already good?

Yes, Chetan. Yes, please. Yeah. Thanks for the opportunity, sir. And my question is regarding the land bank. What's the land bank we are having now and what's the expected GDB?

I think we have sort of, you know, delineated it in our presentation, the kind of, you know, we have about 70, 72,000 crores of GDP today, of which about how much is launched, about I think it's all laid out in our presentation. 31,000 we have launched. The balance is our land bank. And of this, we have sold about 70-75%. But all the details are there in our, you know, presentation, investor presentation. You should check on to slide number 19.

Thank you.

So, I see that you have a BD potential, BD pipeline of 60,000 crores. Could you just throw some more light on this as to what part of this could get converted in this year? What projects are we looking at? Some more details on this.

See, at this juncture, this is confidential and not able to give more color on this. I wish that we can convert all of them. You know, that would be our attempt. But depending on how the due diligence progresses, you know, if the due diligence goes well, then, you know, perhaps we can grab all of that. But quite likely that, you know, we may do about a percentage of it. Now, how much percentage, I'm not in a position to disclose.

Like, no indicative number of what project are there. You can't. You really can't. Yeah, it's very difficult to predict.

Yeah, very difficult to predict, Sashika.

And also, I had a question. We were almost, like, on the verge of closing a 10,000 crore worth of BD project. Any update on that? We don't seem to have converted that. We are progressing.

We are progressing. We are progressing on that.

And I think that is a part of the 60,000 crore pipeline.

Yes, it is. Of course it is. Of course it is, yeah. All right. All right.

That's it for me. Thank you.

Thank you.

Thank you. The next question is from the line of Dixit Doshi from Whitestone Financial Advisors, Private Limited. Please go ahead.

Yeah, thank you for the opportunity, sir. Sir. We've been invested in this company since the last three, four years, and the one big reason is that our vision of becoming, you know, top three or top five real estate player in the country. But when we see our business development pipeline, so all the projects that we launch, we get a very good response. We have created a very good product. Our sales team is fine. We are getting good response. But when we see business development pipeline and we... See our competitors' business development, what they do. People think we can become a number 3 or number 5 player in the country because our competitors are doing a BDA of say 20,000, 30,000, 40,000 crores. And we have done just 1,600 crore last year. So in terms of, you know, because until we do that, our sales pipeline will always remain lumpy.

I think it's a very good question, Dixit. One of the reasons I would strongly attribute to the outstanding success we had in our sales and launches is because of the way we choose our BD. If we had been casual about our BD selections, then I don't think we would have got such incredible success in our launches and the way we priced it, the kind of margins we are commanding. Having said that, of course, you know, there's no question that, you know, we have to improve our BD. We have, you know, we are working on it. Again, as I mentioned in the past, it's not absolutely possible to do BD in a systematic quarterly basis, depending on the risk and the kind of... The proposals we get, the kind of rigor of due diligence we conduct, some of them fail, some of them fall through, some of them move ahead. So, there are several factors to come together. So, our attempt is there on that. And I wouldn't really hesitate to compare ourselves with anybody else. Each one has their own risk profiles. It's very clear positioning with very clear strategy, and in that segment, we are very clear how we are doing our BD. Not get distracted by what competition is doing. However, we are aware that, you know, if there are any chinks in our armor, we would like to obviously, you know, buck up and not be defensive about it. And we are also very sure that we would like to be among the top real estate companies in India, but not just by size, but also by reputation. It has to go both together, reputation and size. Just by size is not something that we are going after. I hope I've been able to explain myself a little bit, Dishit.

Yeah, sure, sir. Thank you. And just a couple of small questions. How many units we would have sold totally in Niara 2?

Niara Tower B, I think we sold about netnet of 119 out of 148.

So, regarding commercial projects, Avi, you mentioned something about the Worli and any other commercial projects.

We are looking outside also. We are looking outside of Worli also. We are having a strategy to really do premium commercial spaces across regions. Yeah.

The next question is from the line of Vedant Rani from Unify Capital, IMA. Please go ahead.

Hello, sir. Hi, sir. Good morning, and thank you for the opportunity. I would just like to ask one question on MMR. We have launched two projects here, and as a percentage of booking, as a percentage of GDV, we can see that we are less than 50%. And in other regions, that is NCR and Bangalore, we have been able to achieve greater than 95% of the GDV. So is there any specific reason for that, like demand or supply, or were the launches in the late of March, at the end of March? And we can see in Q1.

So, hi, Vedant. I think you have asked the question and answered it yourself precisely that because we just launched at the FAG end of March. I'm hoping that the whole thing will skew this year. This year, I think, because of the, you know, Tower Sea launch and also a renewed focus on Saranya and Hane and Ghosar Birla Amrida, I think we will see a very strong skew in favor of Mumbai region, MMR region this year.

Okay, sir. Got it. And regarding the Pune market, what's the situation there? Like, there also, I can see that it's around 35-40% of our GDP.

Yeah, Pune is a steady market. It has its limitations also and strengths also. I think it's a good market to be there. There's steady demand. Not too much of a price, right? But because of the very nature of, you know, the commercial and the demand in that market. And, of course, from, you know, spillover from Mumbai and NRI demand, etc. I think it's a very good, strong market to be there. And, you know, we can't expect a Gurgaon happening there, but I think steady, strong velocity is what we expect there.

Okay, got it. Thank you so much.

Thank you. The next question is from the line of Varun Jula Surya from 361 Capital. Please go ahead.

Thank you for the follow-up, sir. Sir, just wondering, like this quarter we offered quite a few like payment plans. So, just wondering how much of the proportion like from 4300, how much was through these payment plans and how much was construction in plan?

See, largely almost the bulk of our proposals are all on construction link plan, and even if there is a payment link plan, largely we try to ensure that by the time we finish the structure of the building, we try to get up to 60-65% of the money. So, just barring here and there, depending on what that market trend is, very strong trend, depending on what the others are doing in that market. And strong demand from, you know, the market forces there. We may have to, at some point of time, given some sort of flexibility in payment. But again, the overall asking, Prama is a policy that we would like to collect at least 65% by the time we finish the structure of the building.

Does this imply a bit of a slowdown in the velocity, you know, across the market, or is it more to do with, you know, competitors, you know, upring it?

More to do with SofitBot. If you look at our launches, we did about nine launches last year. A bulk of them came in the last quarter because of, you know, because of the approval process. But if you look at our... The response has been outstanding. We have done 97%, 100% of launch sales. So I really can't blame that there is a slowdown, not in any of our projects. We have been exceptionally well. Take it Bangalore, Kirstenens, take it Burgaon launches, take it Hanem, any of these markets you look at. So I really can't point a finger to any of our launches. There has been a slowdown. That is not yet reflected in any of our launches.

You know, that's what we were thinking, you know, why the statement plans are often when we were already copying...

Market forces, and there has been this geopolitical development which happened in the last quarter. People are not able to really take money, get money quickly into the market. You know, all these things happened in the last quarter. So that's one reason why people found it really, you know... They're desperate for making bookings, but the cash flow, liquidity was a huge problem because the developments and the war scenario in Middle East and all that. So that generally impacted. So that's why we had to do some extensions in that market. Otherwise, and all of them have come back very strongly this quarter with their payment plans. So... Yeah, so there is, this is largely because of these recent developments.

Lastly, sir, on the construction material, are we seeing any issue in sourcing and how much cost and escalation we, you know, we factor in for this year, like, given that almost everything has gone up?

Yeah, so because of, you know, oil prices and, you know, disruption in supply chains, there has been an impact on costs. But, being a very prudent planner, we have already taken it in our, you know, contingency measures, etc. So, as of now, we don't see any of them, but it's quite likely that if these situations continue, there could be an impact. But, we have been prudent enough to take, you know, reasonable contingencies and escalations in our business plans. But, if the current situation continues or deteriorates further, then, of course, there will be an impact.

But availability is not an issue, right?

Availability is not an issue, but transportation, a bit of delay has impacted slightly.

Thank you. The next question is from the line of Sinclair, from Lalkar Securities. Please go ahead.

Can you be a little louder, please?

Yeah.

Is this better?

Yeah. I just wanted to know, what is the potential for the senior living for you all, basically?

Senior living by itself is a huge, explosive market potential in India, huge demand. As you all know, India, the aspirational population is growing. They have become wealthy, comparatively much more wealthier than what they were in the past decade. They can afford a lot of things. They're looking for good convenience and luxury. And there's a lot of people in India who can afford it. And a huge part of it is, you know, people who are done well in life, and, you know, many of them want independent living, luxury living, and a big part of it is in senior living. And they are all looking for the same amount of comfort which they can afford, and they always also want to be independent. I think there's a massive market for it. We have to find the right sizing and, you know, location for that. We see a huge opportunity in exploiting that, and we are looking very, very aggressively in that market.

So, any idea what would be the revenue potential?

It's too early to predict at this point of time, but I'm sure it'll be very healthy and very strong. Got it, Father. Thank you.

Thank you. The next question is from the line of Murali Krishnan from Sundaram Mutual Fund. Please go ahead. Mr. Murali Krishnan, I have unmuted your line. Please proceed, sir. Sir, the participants left the queue. We will move on to the next question from the line of Biplab Debarma from NK Global. Please go ahead.

Thank you. Sir, just two small clarification. One is the commercial development world-y. How many towers and total area is 1.3 million square feet, and what would be the estimated cost? for capex cost to be incurred for this project.

Yeah, I mean, I think we are looking at least about one single tower, roughly about 1.3 million, 1 to 1.3 million, yeah, in the process of designing that. Cost is too early at this point to estimate, we'll have to come back to you on that, depending on where we are in the process of design, and then we, you know, do all the MEP and structures and all that, which is very early stages at this point of time. Yeah, it's one tower that we are looking at, it's in a range, it could be approximately about 1.3. It can vary a little bit here and there, yeah.

And the second question is on the, you know, your launch pipeline. In terms of GDB, it appears broadly similar to what you had in FY26, in terms of launches GDB. And in FI27, pipeline also includes Niara, where the expected absorption may be relatively lower compared to, say, Arika, Trimaya, or even Karenya. So, considering these factors, I'm assuming these factors are correct, considering these factors, it appears challenging to expect, I mean, The pre-says in FY27 could be similar in the similar 8,000 crore or maybe slightly lower than FY26 drivers. How do you see this assessment?

I don't want to comment on that because, as I said, it's very difficult to give, you know, in other words, you're asking for, you know, guidance. Which I can't at this point of time give you. I only know that we have so much of inventory here, and we have to.

Ladies and gentlemen, we will take that as the last question for today. I would now hand the conference over to the management for closing comments. Thank you.

Thank you, everyone, for taking out time to attend today's call. We are very excited for the times to come and hope to come to you with a lot of more, lot of news in the next call. Thank you very much for an interest in our company. Thank you. See you soon.

Thank you, members of the management. On behalf of HTSC Securities, that concludes this conference. We thank you for joining us and you may now disconnect your lines. Thank you.