Aurum PropTech Limited (AURUM) Q1 2027 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to the Q1 FY27 earnings conference call of Auram PropTech Ltd. 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. Please note that this conference is being recorded. I now hand the conference over to Mr. Shivang Bagla from MK Global. Thank you and over to you.

Thank you, Pranali. Good afternoon, everyone, and welcome to the Q1FI27 Earnings Conference Call of Aurum PropTech Ltd, hosted by MK Global Financial Services. We are joined by Mr. Ashish Degh, Non-Executive Chairman of Aurum PropTech, Mr. Onkar Shettyay, Executive Director, Mr. Kunal Karan, CFO, Mr. Shrikant Jakthap, Deputy CFO, and Mr. Rehan Shah, Lead Strategy and Investor Relations. Before we begin, I would like to remind you that certain statements made you in this call may be forward-looking in nature and are subject to risks and uncertainties as detailed in the annual report and other investor disclosures available on the website. With that, I would now like to hand this call over to Mr. Ashish for opening the amounts.

Thank you. Thank you. And good afternoon, everyone. It is my privilege to welcome you to the 21st earnings call of Aurum PropTech. I'm pleased to share with you our performance for the first quarter of financial year 26-27. As a context, since 2021, we have been building towards a simple but ambitious idea that every stage of a property's life, from the moment someone starts searching for a home to the moment they become a buyer again, should run on one connected, intelligent operating system. Q1 of FY2627 is the quarter that has made this possible. I would like to walk you through three defining developments in this quarter. First, our unit economics continue to improve and profitability is structural. Q1 of FY27 is our third constitutive profitable quarter. This is a very important milestone for us because it reaffirms our shift to profitability and makes it structural and enduring. Despite Q1 being the industry's softest quarter, our margins improved by 1,000-plus basis points. It gives us strong confidence that over the coming years, our unit economics will continue to strengthen and that the company will keep Keep improving profitability. Second. We are going deeper on AI. Our AI stack is now deployed across the value chain, from lead qualification and sales conversion to customer obsession. AI is now spreading across all five layers of our business, whether it's discovery, intelligence, transaction, financing, or living. The immediate outcome of AI deployment is to optimize business value and constantly improve efficiency. Early gains are already visible in this quarter in productivity, with revenue per team member emerging as a key success metric across all our functions. We expect that this metric to improve further as AI adoption expands across every role in the organization. For the medium term, we are continuing to develop what we call Aurem's Unified Brain, a single intelligence layer that activates monetization opportunities across the ecosystem. Third, and a very special one, is Housing.com joins Aurem. Housing.com is one of India's most recognized digital real estate platforms and the starting point of the property journey for millions of consumers every month. We see the integration of housing with Auram's ecosystem as value-accretive across all our products and services. As the industry leader, we are cognizant that listing platforms in Indian real estate have historically not been profitable. However, Auram and housing teams have developed an integration plan to make housing look up in becoming profitable within four to six quarters. Driving profitability in Housing.com in a time-bound manner will require product innovation, business synergies, AI-led efficiencies across functions, and relentless execution. We at Aurum have turned around and demonstrated profitable unit economics in difficult scenarios in the past. Learning from Nest Away, PropTiger, and other similar case studies, we believe we will reach our goal to make housing profitable before the stipulated time frame. Further, we believe that Aurum's acquisition of Housing.com marks the start of industry-wide consolidation in Indian PropTech, and at Aurum, we intend to lead it. I would also like to use this opportunity to thank REA's management for taking a strategic long-term view on the Indian PropTech sector by becoming a significant shareholder in our company. I also want to thank REA Group's leadership as we continue to learn and look up to them. Furthermore, I would like to acknowledge and thank the lawyers and advisors on both sides who made this possible. Five years ago, we were the first company to build prop tech in public domain. In the years since, we built the first integrated prop tech ecosystem in the country. Last year, we became a profitable company. This year, we are becoming an AI first Thank you. And we believe this positions us to become India's leading AI-native real estate operating system in the near future. To conclude, our priorities for the rest of F527 are clear. Consistent improvement in financial metrics every quarter, continued progress on AI every week, and full integration of housing.com synergies across the group as soon as possible. With that, I now hand over the call to Oankar. Thank you very much. Thank you, Mr. Devra.

Q1FI27 marks an important inflection point in Auram PropTech's journey. This quarter demonstrates that disciplined execution, strategic transformation, And technology innovation can coexist. We delivered a total income of 121 crores, up 57% year-on-year, alongside our third consecutive quarter of positive adjusted EBITDA. Three themes defined our quarter. First, execution. Second, platform expansion. And third, AI-native transformation. On execution, our execution has been our defining priority since inception. Our objective has been simple, to improve unit economics quarter on quarter, strengthen operating discipline, and build scalable technology platforms capable of delivering sustainable profitability. PBT margins expanded by 1590 basis points, while adjusted EBITDA margins improved by 1320 basis points, reflecting the operating leverage beginning to emerge across the platform. Importantly, these improvements are not the result of one-off cost actions. They are being driven by stronger business fundamentals, improving productivity, and disciplined capital allocation. Our rental business delivered 56 crores of revenue, maintaining 81% occupancy, while operating across a scale of 21 cities, spanning across student housing, co-living, and family rentals. Customer satisfaction remains strong with an average rating of 4.3, while our focus continued to be on occupancy, tenant experience, and operational efficiency, rather than simply expanding inventory. Most importantly, both our rental businesses achieved EBITDA profitability, validating the operating discipline and scale we have built over the last several quarters. Our developer and distribution business also delivered 56 crores of revenue, continuing to strengthen its leadership across analytics, developer technology, and transaction services. Today, we enable over 1,200 developers across 1.5 lakh projects in 440 plus cities. Creating one of the country's largest integrated technology platforms serving developers. Rather than relying on one or two businesses to drive profitability, we are increasingly benefiting from multiple operating platforms working together. Every major business across the group has now either achieved profitability or crossed important profitability milestones, creating a strong and more resilient earnings profile. Our second theme has been platform expansion. The announced acquisition of Housing.com is not simply the addition of another business. It fundamentally expands Aurum PropTech's addressable market, strengthens our competitive position, and significantly increases our long-term monetization opportunity. India witnesses approximately 2.5 crore property transactions every year. Of which nearly 1.2 crore transactions are expected to become digitally addressable. Today, however, only 7 to 10 lakh residential transactions are actively intermediated through online portals, highlighting how early digital penetration remains. Across the markets, India's annual residential transaction value exceeds 15 lakh crore, Amongst developers, brokers, banks, and homeowners, collectively spending approximately 38,000 crores every year on property marketing and mortgages. Yet, online portals currently capture only a 1,200 crore market, representing less than 5% of the total penetration. Housing.com Ordity commands approximately 24% of India's online portal market, supported by one of our country's strongest consumer brands, attracting over 58 million average monthly visits and 12 million monthly active users on its app. However, for Aurum, the opportunity extends well beyond portal monetization. Traditionally, property portals monetize listings and advertising. Our monetization begins where the portals end. Housing.com captures consumer intent or monetizes that intent through developer technology, transaction fulfillment, rentals, financing opportunities, and AI-enabled services across the entire consumer journey. This significantly expands our consumer lifetime value while allowing us to participate in a much larger share of economics generated by every real estate transaction across the country. The third theme has been AI Native Transformation. The opportunity to build India's largest property portal with Housing.com and Aurum's fulfillment and transaction management capabilities is viewed with our AI-native transformation initiatives. Across the industry, AI is often deployed as a productivity layer sitting on top of existing software. Our approach is fundamentally different. We are embedding AI into the core operating fabric of every business across the ORMS ecosystem. Today, AI supports lead generation, customer engagement, sales conversation, transaction workflows, customer service, and developer operations. We are building India's AI-native operating system for real estate, one intelligent platform connecting consumers, developers, brokers, lenders, landlords, property managers, and bankers across the entire real estate life cycle. Looking ahead, our priorities are clear. First, execute a disciplined integration of Housing.com. Second, continue embedding AI across every operating platform. Third, maintain our focus on profitable capital-efficient growth. I will now hand over to Shrikam Jakhtar to take you through financial performance in greater detail.

Thank you, Onkar. Thank you, everyone, for joining today's call. The results for the quarter ended June 30, 2026 are as follows. First, the result for the quarter as compared to previous quarter. The revenue from operations INR 111.84 crores compared to INR 123.85 crores in the previous quarter. The total income INR 119.01 crores compared to INR 132.03 crores in the previous quarter. The profit before tax INR 2.31 crores compares to INR 3.69 crores in the previous quarter. PBT is at 2.1% compared to 2.9% in the previous quarter. With this, the company has reported profit for three consecutive quarters. The result for the quarter as compared to the corresponding quarter previous year. The revenue from operations INR 111.84 crores compared to INR 65.44 crores in the quarter ended June 25, an increase of 70.9%. Total income INR 119.01 crore compared to INR 73.88 crores in the quarter ended June 25, an increase of 61.09%. The profit before tax INR 2.31 crore compared to loss before tax of INR 10.81 crores in the quarter ended June 25, an increase of 121.37%, profit before tax 2.1% compared to loss before tax of 16.52% in the quarter ended June 25. Now the segment results for the quarter. The results for the quarter as compared to the previous quarter. The revenue from rental segments INR 54.35 crore compared to INR 52.70 crores in the previous quarter. Distribution segment INR 55.94 crore compared to INR 66.87 crore. In the previous quarter, capital segment revenue INR 1.55 crore compared to INR 4.28 crore in previous quarter. The rental and distribution segment reported profit of INR 0.63 crore and INR 7.97 crore, respectively, while the capital segment made a loss of INR 0.05 crore during the quarter. During the quarter, the company closed the transaction related to sale of building owned by the company at 112 crore and recognized other income from discontinued operations of INR 52.38 crore during the quarter, in addition to INR 17.78 crores in the previous quarter. The total revenue from discontinued operations is at INR 54.14 crores during the current quarter and INR 20.28 crores from the previous quarter. The profit before tax from the discontinued operation is INR 52.40 crores and INR 17.44 crores in the previous quarter. I will now hand over the call to Yesha Shree to take it forward. Thank you.

Thank you very much. We will now begin the question and answer session. To ask a question, please click on the raise hand icon tab available on your toolbar or on the QA tab available on your screen. Kindly turn on your microphone when the operator announces your name. You may also post your text questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We'll take our first question from Ajit Sethi from Ico Quantum Solutions. Please go ahead.

Am I audible?

Yes.

Thank you for the opportunity. My question is on how I will.

I'm sorry you're audible, but it is not very clear. Ajit.

Am I audible now?

A little better. Please go ahead.

Please go ahead. Yeah. So my question is on housing.com. So with housing.com now inside Aurum, alongside Nestor, where Hello World Cell do. So what specific gap in the existing ecosystem does housing.com fill? And is there a risk of internal cannibalization between housing.com organic listing traffic and Aurum Analytica paid lead generation model for the same developer client?

Thank you so much, Ajit Ji, and thank you for your question. So what Auram, you know, as a platform was, was India's largest tech-enabled transaction platforms, where we were covering lead generation, lead management, transactions, and managed living, which was through our rental portfolio. Housing.com just adds into a vertical integration strategy where the entire audience, demand, and intent flows into this entire transaction platform and becomes one end-to-end solution for any of our customers. By customers, I mean developers, partners, and consumers as a whole. So for their end-to-end life cycle, from discovery to transactions to living and the management of this entire cycle can be done at one channel itself. We don't see a cannibalization as a matter of fact. What we see is there is a strong synergy to have end-to-end solutions from listings to advertising to lead generation. To transaction as a platform to be provided to all our partners and customers.

And so, as you mentioned in opening remarks that Housing.com had around 24% market share. So, with the integration of Horem, other products, so where do you see that market share moving over the next two to three years?

So, there are two parts to this. One is that we don't see housing as a standalone intent monetization platform. We do see opportunities to expand its horizon beyond intent to taking it into transactions and capturing the larger time that the transaction pool provides to us. Having said that, our goal and objective is to make sure that we are able to upsell within the housing cohort of consumers more products, more SKUs, and keep on increasing that market share. We firmly believe that the app leadership position that housing has taken over the other property portals is something that has to be capitalized on, where we already have the pole position in that space and increase our not just revenue, but also our production order.

So, given the company's carry-forward tax losses, so what effective tax rates should be modeled over the next two to three years, and how much runway of tax loss carry forward even before our home starts paying tax and the full statutory rate?

So presently, the team is evaluating and understanding the financial and tax structures of the business together with housing's existing finance and operating team. We will be able to articulate our clear positions in Q3, starting H2, when we are able to look at our long-term goals on the financial metrics of this business.

And so, if possible, can you share revenue and EBITDA margin guidance for next two to three years for company?

So, one, you'd like to reiterate that this is the third consequent quarter that we have hit profitability metrics at Aurem PropTech, and that has come after a lot of disciplined execution. We would also like to reiterate that we recently acquired PropTiger from the same group, REA, which was loss-making, which we were able to quickly turn around and deliver the first quarter of the profitability at PropTiger. We have used a similar playbook for all our other businesses, including Hello World, including Nest Away, where we have been able to quickly restructure the businesses and not just increase the revenue pool, but also bring operational efficiencies to reduce the costs and get them profitable. We will apply the similar playbook at housing.com. And within three to four quarters, we are looking to restructure the business and again hit levers of profitability. But again, it's early days. We see a lot of ancillary revenue that is coming from autumn proctect into housing and also housing benefiting us at various subsidiary businesses. And as the flywheel keeps on getting us more consumers on the platform, we do anticipate that our definite projections will be surpassed.

Does that answer your question? Are you through with your question, Najeeat? Thank you. Thank you. Next question is from Ishan Khushwaha from Mr. Ajay Agarwal Family Office. Please go ahead.

Hi, am I audible?

Yes.

Yeah. Hi, team. Congratulations on a great set of results as well as for the housing team. So could you please help us understand the unit economics of the housing.com business model? And, you know, what are the key factors behind the current losses? And, you know, what are the main steps we will be taking to, you know, improve the overall profitability?

Sure. Hi, Shan, and thank you so much. This is Rehen here. For housing.com, effectively their business model is around three types of consumers. One, developers, second, channel partners, and third is DIY consumers in itself. From a unit economics point of view, it operates on a marketplace model where you have demand and supply being matched. Currently the structure of housing.com is based on that marketplace model. Once we approach more towards the closing, we'll refine our thought process and also be able to give better numbers in terms of unit economics to hash out in each segments how do we see the unit economics flowing up and how our roadmap towards that profitability is building in the next three or four quarters.

Okay, okay. So like earlier, the focus was on to like, you know, achieving 1000 crores of ARR target. So after the housing acquisition, how should we, you know, think about the target now?

So, Ishan, the 1000 crore ARR target, you know, we feel that we're going to achieve that a lot faster with housing.com transaction and surpass it a lot more. I think over the next years, we'll see great amount of synergies coming from existing business plus housing.com as an entire platform. I think it's going to be the most unique blend in Indian prop tech space where you have listing and marketplace as one segment and transaction enablement as second segment coming together in terms of entire end-to-end platform. While I'll not be able to give you an exact guidance in terms of what do we see in numbers, but I think the growth is what we have showcased over the last five years. We're going to go beyond that growth trajectory as well.

Okay, great, great. And for sell.do business, for F526, what was the gross churn?

Sorry, by gross churn, what do you mean exactly?

Like when we are saying that client retention rate, something like that. The gross churn when we are saying that client is, you know, leaving that software or license, leaving.

So overall, Cell.do has an extremely high customer retention ratio. The churn at a gross level was 7%, but Cell.do has been growing in terms of licenses as well as number of developers that are onboarded onto the platform. Cell.do has now cross-crossed 1,000 developers onboarded onto the platform with 11,800 plus active licenses that are there currently.

Okay, thanks a lot.

Thank you.

Thank you. Give me a moment, please. Next question is from the line of Rahul Jain from Dalawad Capital. Please go ahead.

Yeah, thank you. Thanks for the opportunity and congratulations on a last transaction. So I have this two-part question. One thing on the housing side of it, of course, you have said few things in terms of you would like to see how it plays out and you would be in a better situation to talk about. But as of now, the number that we could see, it clearly tells you that the current operation need a significant amount of optimization before it could get streamlined into a more profitable thought process. So if you could highlight the first top three priority that you have set up in this integration that you could solve for to ensure that once it gets... Consolidated on an annual basis, we are not going to take a hit from the current operational costs, which are significantly higher than the revenues out there.

So, Raoul, thanks for your question. You're right. We do also see this from an opportunity standpoint. Our first goal is to make sure that we increase the revenue pool and address a larger TAM, where this stop of monetization at intent at housing is converted into addressing a larger revenue pool available with the transaction model. model across all three developers, brokers, and also DIY. So that's one.

On the revenue side, the second lever for us is to

ensure that how do we increase the existing product build and upsell within the housing SKUs. We do see that there's good take enablement in terms of the product SKUs that housing has built. But in terms of utilization, there has been minimal utilization of those product SKUs. The idea is to increase that revenue pool as a second instance. The third is that we see opportunities between ancillary businesses, which is, you know, a combination of housing and PropTiger, a combination of housing and Seldo, a combination of housing and Nestleway slash Hello World, where we are able to do consumer cohorts and again increase the revenue pool. The second part is on the cost side, where we have a classic playbook of understanding internationally invested and corporately governed, or sorry, corporately managed, not governed, corporately managed businesses do provide for efficiencies. Typically, these become management heavy, top heavy. We have some case studies on this from our existing execution playbooks. Second is we do realize that at times businesses that are built by tech teams, by tech companies, do lack that understanding on the real estate practice side, which our team comes in very handy. And because we understand the real estate side of this business also, we are able to plug in the gaps of what exactly the consumer needs. And are we over-providing there in terms of costs? For example, one piece that we are looking at is, are the sales team heavy in terms of their build on the broker side and also on the developer side? And are there opportunities to streamline that? We are also looking at opportunities in our distribution business, where between Analytica and Seldo, which has got access to 1,000 developers and also has a very solid enterprise team, is able to to extend their learnings and also build some efficiency in the in the housing business. So that's that's on the. One key thing that we have probably identified as an industry is that there seems to be a gap in integration of intent that is captured on the platforms and then the revenue monetization of that. We have close to 54 million users coming on the platform as traffic, and our goal is to ensure that we do provide monetization streams across this traffic. We also find opportunities on the cost side, again, on the marketing front, where probably with tactical levers, with meta and other social media platforms, if we can do an efficient... Performance marketing expenditure, brand expenditure, and also SEO expenditure on these platforms. So there are opportunities that present to us on the revenue and cost side both, which is why the team feels confident from the opportunities we see and the execution playbook that we have demonstrated successfully to bring this quickly under control in the next three, four quarters and then lead it back onto the growth at profit. Thank you very much, everyone, and thank you very much for joining us today.

This is Ashish, to add to what Ongar said. Look, we bought PropTiger in last July, exactly one year ago. And since then, we have been looking at housing. Housing is the largest, one of the largest consumer brands in India, and definitely the biggest consumer real estate brand, right? And you have, over a few years, tracked how we have done transaction business and how we have grown that. So now our challenge is not getting one plus one, two, and making that profitable. Our challenge really is how to make one plus one, three. And that is what we are working on. And in last month, month and a half or two, the teams have really worked on the integration plan. Now, the question is how quickly and how relentlessly can we execute that? And that is something that we are here for. So, I mean, it's the largest brand combining with another largest transaction platform, and the synergies are supposed to kind of start unlocking immediately, and definitely become profitable at the earliest.

Yeah, thanks for the color. That's very assuring, and I think... The right value-add as identified by OMCAR also is the consumer behavior and understanding that we have from the actual real estate business that we bring into that's a value-add and also on the cost-efficient side. And we have seen most other transactions in the past that you have worked around 12 months have been a good time period for them to, at least on the cost side of it, work around. So I think similar timeline is what one should be expecting out here as well.

Yeah, it's four quarters. Our internal target is three to four quarters. We are today saying four to six quarters. Housing is larger scale, a lot more synergy opportunities, larger brand, and it's the marketplace. So that is why we are factoring in one or two extra quarters. Our internal target is, like the other companies, to kind of make it profitable within three to four quarters. But yeah, for this call, let's take it four to six quarters.

Sure. Thanks for the call, and congratulations once again.

Thank you. Next question is from Deepesh Mehta from MK Global. Please go ahead.

Thanks for the opportunity and congrats for the steady execution as well as housing transaction. A couple of questions. First, with housing transaction, do you expect our overall offering portfolio is largely completed now, which we might have envisaged, let's say, when we started the journey? Or do you think still some gap exists, which you would like to fill in the next couple of years? So that is question one, just to understand overall broad vision and where we are in terms of offering perspective. Second question is about the PropTiger. Now we completed a year. What are the learnings, let's say, where we find revenue cost synergies and how some of those learnings we can implement in housing because this is a relatively larger transaction. If you can give broad thought process around it. Thank you.

So based on your first point, we feel that, you know, we had The journey from lead to transactions was already there with Aurum Proptake ecosystem. Now we go to a much larger scale where we have the entire audience coming in, which is what Housing.com fulfills from audience to leads to management to transactions and also managed living then. We feel that we have the entire ecosystem from end to end journey and I think housing acquisition is going to be a pivotal stage. The stage of Auram PropTech, where we're going to become one platform, one operating system for Indian real estate as it holds. It's not going to be segmental going ahead in terms of different products or services together. And which is what we're trying to do with, you know, how post housing acquisition that how do we streamline everything into one platform, one ecosystem, and one operating system for Indian real estate. Coming on to the second point which you had with respect to, you know, PropTiger. See, when the prop tiger and housing both as businesses for HR driven operational, you know, businesses, and we see a lot of drivers over there to ensure that there's efficiency into the system. Tech is being utilized at every stage to automate operations and ensure that, overall, we call this out as the key metric that we keep on tracking across all our companies, which is revenue per team member. How do we get, how do we increase that revenue per team member across the businesses is something that we have seen during this prop tag or transaction and getting to this last individual contributor in every team size, and increasing their productivity is going to be something which will ensure that our learnings from PropTiger will be embedded into a housing transaction as well.

Dipeshji, just to add one more point to what Rahen only said is that if you look at the Thank you. From a revenue standpoint, from a product standpoint, we did have that capability in place by the way of Analytica, which does a much larger pool of revenue in the enterprise side of housing. We also service the brokers between Seldo and Analytica and some parts at Nestorway. However, what we didn't have is the intent at the earliest stage of property discovery, which only two internet, I would say, internet platforms get. One is, of course, the likes of Google, who learn it first. As in, when is the consumer starting his purchase or rental journey or real estate consumption journey? And second is, of course, marketplace platforms like housing, which get this signal. And the idea was that what made it compelling is that this signal identification in a way jettisons us from an ecosystem to a marketplace enabled with transaction that operates at a much larger time. And has a larger stickiness in terms of our offerings to all the five stakeholders now, from the developer to the broker to the buyer to the consumer and also banker. That is what made housing extremely compelling. And with this, of course, we feel that now everything that has to be built around can be built internally and then offered at the housing business.

Perfect. Thank you.

Thank you. Next question is from Neil Chabra from Resight Ventures. Please go ahead.

Hi, everyone. So, like, my question is largely on, like, we have been talking about building the complete ecosystem in the PropTech space. And if you look at our last acquisition in terms of PropTiger and Housing.com, while they make a strategic fit and strategic sense in completing the portfolio, but they have come at a serious cost of dilution. So, as a management, how do you think about per share value creation? And another metric that we have been talking about is of ecosystem revenue. So like if a customer you acquire through Nest Away or now from housing.com, what percentage would go on to transact on PropTiger or take a loan through Kuberx or generate data through Analytica? So how do you think these piece moving forward in the next two, three years, the ecosystem revenue part, and how you think about the per share value creation?

I mean, this is Ashish here, and I'm taking the first question and then I'll request my colleagues to the second one. Look, on dilution, we think through this very, very, very, very strongly because From a long-term roadmap of the company, the dilution is very important. As a promoter of the company, the dilution affects us, affects me personally the most. So we think about this very, very deeply every time that we have to do something. But both times that we have done the dilution, you know, we have diluted to the largest prop tech group in the world, which is REA, right? And that is, that is, in turn, owned by Newscott, right? So what we have effectively done, we have today on our cap table, 24.9% shareholder, which is probably the largest prop tech group in the world and one of the biggest media groups in the world. So what it does is it just opens up a lot more opportunities to learn from these companies, learn from their global experience. And that's one big intangible when we dilute. If it was just any other investor, then we would have thought twice. And that is why in the earlier avatars, earlier acquisitions, we never diluted, but we diluted to REA. This is more to the credit of REA than to our sort of thought process. So, that is one part. Second, So both PropTiger and Housing were very, very valuable brands, are very, very valuable companies, right? I mean, marketplaces are listed at 4.5x in India. That is the valuation that we have seen in some of the marketplaces. In another marketplace, we have seen the valuation to be 10x of their revenue. And what we have done now is we have acquired at 1.5x of the revenue. And the reason behind that is because there is a long-term goal that we are aligned with RIA Group. That is what our belief is. And that is why even for them, it is not an exit which is only fetching them 458 crores or whatever value that has come out of the equity. They have now 24.9% in the largest proctech company in the country. So it's a bit of both, right? You're getting the right valuation, you're getting the right partner, and everything comes together. And only in those special scenarios are we looking at dilution. I hope that answers your question on that issue. Yeah.

Neil, I'll take your second question, which is with respect to ecosystem customer or cross-selling customers across the entire ecosystem. This is something that we've been trying to build at Aurum PropTech since last couple of quarters. However, when we understood the journey of a consumer, we understood that it starts at the top of the funnel where the consumer showcases the first intent. May it be a consumer who is going from co-living to rental or a consumer going from rental to buying an apartment. And that top layer or funnel was missing in our entire portfolio, which now gets stitched through housing.com. So effectively, now with housing, the opportunity is to cross sell or slash upsell at a B2B end to developers as well as partners, as well as from a B2C point of view increases exponentially, and we're able to ensure that every consumer who comes and leaves a footprint on the platform has something that we can offer to them. And constantly ensure that he's having his entire real estate life cycle with Aurum PropTech as an entire platform.

Thank you for explaining. And Ashish, you have exactly alluded, marketplace is a very high quality business model. And if you look at even REA's core operations in the Australian business, they are making like 60-70% operating margin. If you look at Rightmove in UK, they are also making 70% operating margins. If you look at Hemnet in Sweden, they're also operating at 15% operating margin. So, directionally, what are the steady-state operating metrics that you envisage for Aurum, like, let's say, in the next three, five years?

You are benchmarking with the companies that we have been benchmarking and interacting very, very closely with. We look at every single product, every single feature, every single release that they come out with, whether it is on media, on social media, or on product. Um, we believe, um, that, uh, The consolidation in Indian PropTech has started with housing and Auram coming together. And the reason we say that is because, as my colleagues were talking earlier, that there was no hand-holding between discovery slash listing to the transaction. And if you are able to integrate that well, then you will see very healthy unit economics, you will see very healthy EBITDA numbers going forward. And the moment as an industry leader, we are able to demonstrate that it will make sense for other companies also to collaborate or come together to do that. And the thesis that you are talking about, Neil, is exactly our thesis as well, that nothing stops Indian prop tech companies to have similar profitability metrics, what you have in Australia or what you have in UK or what you have in Brazil, right? There are smaller markets. In India, the real estate purchase is an emotional purchase, so it's even more important to have the right journey mapped. And I think we are on path to do that.

All right. Thank you so much. All the best.

Thank you.

Thank you. Next question is from Amit Chandra from HDFC Securities. Please go ahead.

Hello, am I audible?

Yes, Amit, please go ahead.

Thanks for the opportunity, sir. Sorry, I actually joined a bit late. So maybe if this question is a repetition, please forgive me. But in terms of the acquisition, it appears to be very exciting, a new journey. So in terms of housing.com, obviously, we have a revenue of around 300 crores. So in terms of profitability, Like what is the loss as of now and in terms of the journey to achieve like break-even, what are the timelines that we should see in terms of achieving the break-even and what are the low-hanging fruits in terms of achieving their break-even and what are the timelines also and also see in terms of the competition that is there in the market, like the largest competitor which is 99 acres. They have been trying since many years and spending a lot, but still they have achieved the breakeven level and they have been operating at a loss for many years. So how do we see the long-term profitability happening in Housing.com?

So, Amit, thanks for your question, and you're right. There has been certain package in the industry where losses have shown up on listing business models, and that is where we feel the opportunity lies for us in converting this, I would say, stopping at intent monetization and taking it to transaction between the listings business model And the fulfillment of the transaction business model. And which is where housing and auto-prop-text combination becomes very compelling for all stakeholders. Having said that, if we look at the FI25 revenue from operations at housing.com, between the listing services and various other packages, 343 crores was the was the revenue as of FI 25. They have discontinued certain services, and of course, they have exited one business to us, which is Proctiger. On the expense side, between the employee benefits, other expenses, which comprises of advertising, payment gateways, and software data, the expenditure at housing as of FI 25 was $5.31. That we understand as of FY26, and these numbers are being audited presently. They follow a July to June calendar, the Australian ASX calendar. These are being audited presently, and they will be very soon public for our consumption and estimation in the next few quarters. On the expense side, in the earlier question, we did iterate there are opportunities we see on the marketing segment where we can look at efficiencies on expenditure, where we do better utilization of credits on various social media platforms and also search and discovery platforms like Google using efficient working capital management. To ensure that expenditures are managed within their limits. And the other one is, of course, an internationally invested, corporately managed business does have some opportunities for efficiency because it typically becomes a top-heavy, management-heavy. Whereas we at Aurum have typically believed in a lean org structure with largely frontline empowerment towards the revenue side, which is where a large opportunity also presents to us in terms of cost optimization. We also reiterated in the previous question that we We are looking at. Optimistically, getting this under control anywhere between four to six quarters as a trait of our applying our playbook on restructuring and turning around businesses.

Okay. Okay, sir. Thank you.

Thank you. Next question is from Faisal Hawa from HG Hawa and Company. Please go ahead.

What is the reason that our quarter and quarter revenue has gone down quite a bit? And secondly, can you give some figures as to how much housing.com would have spent on marketing, advertising, and branding alone on the last seven to eight years? Because they have been rather very, very, you know, visible in various media channels. And also, can you share that what was the highest valuation that Housing.com was diluted at during its various rounds? And what was the lowest valuation also before we acquired them? And, you know, they have had several mercurial founders and even entrepreneurs who have let them, but no one has been really able to control this company, and they have burnt money a lot. So, to change the culture would be very difficult, as opposed to the many smaller acquisitions that we have done so far. So, what are your comments on that?

I feel my head is always a UI. We're leading our mind on with some of your some of the points that you are making. So first on how much money has been invested in housing till date in various avatars, in various forms by various investors in past, right? So in the last 14 to 15 years, we believe 2,200 crores has been invested, out of which it is safe to assume that 1,000 crores got spent on the brand, right? It is the number one real estate brand, right? So that is one reason why it is a very, very attractive marketplace. We have already talked about the traffic numbers, 50 plus million traffic numbers, 5 crore people visit every month, might not be unique, but still 5 crore engagements every month on the platform, which is, to our mind, very, very valuable. Many founders, yes. It was started by a founder, and then for the last few years, it has been stabilized by REA Group. So Aria Group is a very stable and very highly governed Australian publicly traded company. So they have, in a way, whatever happened in the earlier, you used the word mercurial founders, that has all in the past and last few years, it has been in very stable hands of Aria. Our endeavor is to kind of bring profitability, as you know us. We have learned this in Nestaway as well, where the losses were very high. In terms of revenue to losses, the proportion was even worse in Nestaway, but we turned that around. We believe that we can turn around, turn around housing as well. Because in housing, we have an additional lever, which is to bring synergies to our own transaction platform. And that is something that will create, create a larger revenue base and create a larger, larger profitability. So that is that is where that is where we are taking this.

And what is the burn rate of housing.com per month just now?

So, as of right now, you know, the business as is, it's doing 200 crores of burn analyzed basis. This, of course, you know, once we close and we start our operations, the idea is to streamline the costs and bring it to a break-even point in four to six quarters.

And we are on record saying that the promoters will also subscribe to some shares. So where exactly would that capital be deployed for or is it like insurance so that if the bond is not controlled, then we have enough funds?

Yes, it is like a war chest for the company because we thought that it's just good to have funds in the company and promoter subscribing at these levels just kind of created more confidence with the board and with the REA as well to say, okay, look, there is investment in the company more than what we already have currently. So yes, you will have 200-odd crores of war chest for housing, but I don't envisage to use this.

And we will be expanding equity to the tune of 25% with all the dilutions.

20%, right? Because around 5% was already with REA group due to the PropTiger acquisition, which we had bought at 1x if you recall. We had issued shares worth 84 crores, and the business that we are doing now in PropTiger makes that at almost 0.5x of the dilution. So yeah, they already own 5%, RE already own 5%, and now another 20% by virtue of swapping Housing.com.

Sir, if you could just answer why our quarter-and-quarter revenue has gone down in this particular June quarter.

Yeah. Faisal Bhai, particularly there is one category of the revenue which get crystallized based on the slaps, percentage slaps of achievements of the target. And that got crystallized in the last quarter of FY26. Now, in this quarter, The slabs, which will, as and when we move further to the year, these slabs will get achieved and that revenue also will get crystallized probably at the last quarter of this financial year. So there was one particular revenue which got recognized in the last quarter, which will build for the year in this year. And that is a moment which...

So, Faisal, just continuing on to Srikant's point, you know, this is specifically for the PropTiger business where we have annual operating plans signed with the developers, which is for the financial year. Even in this financial year, we have annual operating plans signed with, you know, all the developers that PropTiger works with. And it is based on the total amount of gross transactions that we do with the developers. As and when we hit those slabs, we unlock additional brokerage slabs which PropTiger can then charge. As we start the year, we are at the first couple of slabs initially when the value unlocking generally happens in the second part of the financial year, which is why you see that drop. It's more seasonal rather than, you know, it's not a one-time impact, it's the way the cycle works in PropTiger as such.

I really appreciate your answering my questions. Thank you.

Thank you. We'll take our last question from Yajit Shah from Family Office. Please go ahead.

Hi. All my questions were answered. I just wanted to know one last thing. So we are currently at 10% EBITDA adjusted. Good morning, everyone. So, with the housing.com integration, in four quarters, we plan to be profitable. But can we be profitable on company basis by the next two or three quarters? Thank you.

Thank you, Yajan, for your question. Yes, we do see the potential to be profitable at a company level because our existing businesses are already profitable. May it be in the distribution segment, which always was profitable, and now the rental segment is also breakeven at an adjusted EBITDA basis. We do see that potential over there. We'll be able to give you better guidance on this once the housing transaction has been closed and are... Quarter-on-quarter roadmap has been defined to scale housing and control the expenses to reach housing as well as on a standalone basis. As, you know, called out by Ashish sir and Unkar earlier, while our internal target is to reach break-even in housing itself within three to four quarters, we see for this call, we're saying that we'll for sure do it in the four to six quarter timeframe.

Okay. Thank you so much.

Thank you. Ladies and gentlemen, due to paucity of time, we'll take that as the last question for today. I now hand the conference over to Ms. Pranali Desle for closing comments. Over to you.

Thank you, Yashishri, and thank you, everyone, for joining us today. FY27Q1 marks another significant step forward in Auram PropTech's journey. Building on the momentum of the past few quarters, we have continued to strengthen our operating performance, deliver profitable growth and execute our strategic priorities with discipline across our businesses. We sincerely appreciate your continued support, trust and engagement as we work forward. Towards creating long term value for all our stakeholders. Should you have any other questions? Please feel free to reach out to our investor relations team and we will be happy to address them offline. Thank you once again for your time and continued support. We look forward to engaging with you again next quarter. Have a wonderful day.

Thank you, members of the management. On behalf of Aurum PropTech Limited, that concludes this conference. Thank you all for joining us. You may now exit the meeting.