Q1 2027 Ajmera Realty & Infra India Ltd Earnings Call
Speaker #1: Ladies and gentlemen, you have been connected for the Ajmera Realty & Infra India Limited conference call. Please stay connected. The call will begin shortly. Ladies and gentlemen, you have been connected for the Ajmera Realty & Infra India Limited conference call.
Speaker #1: Please stay connected. The call will begin shortly. Ladies and gentlemen, good day and welcome to the Ajmera Realty & Infra India Limited Q1 FY27 earnings conference call.
Speaker #1: As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions at the end of today's presentation.
Speaker #1: 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.
Operator: 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 would now like to hand the conference over to Mr. Gaurang Chotalia, Lead Investor Relations. Thank you, and over to you, sir.
Speaker #1: I would now like to hand the conference over to Mr. Goran Choudhalia, Lead, Investor Relations. Thank you, and over to you, sir.
Gaurang Chotalia: Good evening, everyone, and a warm welcome to you all. On behalf of the company, I would like to thank you all for participating in Ajmera Realty and Infra India Limited's earnings call for the quarter ended 30 June 2026. The call will commence with opening remarks by our Director of Corporate Affairs, Mr. Dhaval Ajmera, and will be followed by the business performance discussion by our CFO, Mr. Nitin Bavisi. We have already shared the operational updates of the quarter in the second week of July 2026. The investor presentation and the press release based on the financial adopted by the board have been uploaded on the stock exchange website and can be downloaded from our company website as well.
Speaker #2: Good evening, everyone, and a warm welcome to you all. On behalf of the company, I would like to thank you all for participating in Ajmera Realty & Infra India Limited's earnings call for the quarter ended 30th June 2026.
Speaker #2: The call will commence with opening remarks by our Director of Corporate Affairs, Mr. Zaval Ajmera, and will be followed by the business performance discussion by our CFO, Mr. Nitin Bhavisi. We have already shared the operational updates of the quarter in the second week of July 2026.
Speaker #2: The investor presentation and the press release, based on the financials adopted by the Board, have been uploaded on the Stock Exchange website and can be downloaded from our company website as well.
Speaker #2: Please note that some of the statements in today's discussion may be forward-looking in nature. These reflect the company's outlook and may involve certain risks and uncertainties that the company may face.
Gaurang Chotalia: Please do note that some of the statements in today's discussion may be forward-looking in nature, reflecting the company's outlook, and may involve certain risks and uncertainties that the company may face. I would now like to hand over the call to our Director of Corporate Affairs, Mr. Dhaval Ajmera. Thank you, and over to you, sir.
Speaker #2: I would now like to hand over the call to our Director of Corporate Affairs, Mr. Zaval Ajmera. Thank you, and over to you, sir.
Speaker #3: Good evening, everyone. Thank you very much. I hope everyone is doing fine. I would just like to begin the conference by giving you sector updates, followed by company updates. The numbers will then be run through by our CFO.
Dhaval Ajmera: Good evening, everyone. Thank you very much. Hope everyone is doing fine. I just want to begin the entire conference with giving a sector update and thereby the company update. The numbers will be then run through by our CFO. Q1 FY27, we all know that the global economic environment continued to shape whereby the geopolitical tensions, new trade policies, and persistent macroeconomic uncertainty. Despite these external challenges, India remained relatively resilient, supported by strong domestic demand, stable macroeconomic fundamentals, stable inflation, and supportive policy environment. Against this backdrop, Indian real estate continued to exhibit strong structural fundamentals while the industry witnessed a seasonally softer quarter, which I would say was more cautious, with sequential moderation in pre-sales and collections following a robust Q4 FY26. The underlying demand environment remains healthy.
Speaker #3: In the first quarter of FY27, we all know that the global economic environment continued to be shaped by geopolitical tensions, new trade policies, and persistent macroeconomic uncertainty.
Speaker #3: Despite these external challenges, India remained relatively resilient, supported by strong domestic demand, stable macroeconomic fundamentals, and stable inflation and a supportive policy environment. Against this backdrop, Indian real estate continued to exhibit strong structural fundamentals, while the industry witnessed a seasonally softer quarter, which I would say was more cautious, with sequential moderation in pre-sales and collections following a robust Q4 FY26.
Speaker #3: The underlying demand environment remains healthy. Infrastructure-led development, improving connectivity, rapid urbanization, and a sustained preference for home ownership continued to support the momentum.
Dhaval Ajmera: Infrastructure-led development, improving connectivity, rapid urbanization, and a sustained preference for homeownership continue to support the momentum. At the same time, the sector is evolving to be more mature and organized, with home buyers increasingly prioritizing quality, transparency, timely delivery, and credibility of the developer. Speaking about the residential market, we've witnessed structural shifts. Over this entire quarter, we've seen lifestyle and premium development seeing good demand coming across all sectors. Customers are increasingly seeking projects to offer superior amenities, stronger connectivity, and long-term value creation, with competitive advantages of established developers with proven capabilities. On the commercial front, healthy office leasing activity also has been driven by the GCCs, the flexible workspace operators, and expanding enterprise continues to strengthen Indian real estate ecosystem, while supporting residential demand across key employment corridors.
Speaker #3: At the same time, the sector is evolving to be more mature and organized, with home buyers increasingly prioritizing quality, transparency, timely delivery, and credibility of the developer.
Speaker #3: Speaking about the residential market, we've witnessed a structural shift. Although, over this entire quarter, we've seen lifestyle and premium developments seeing good demand coming across all sectors.
Speaker #3: Customers are increasingly seeking projects that offer superior amenities, stronger connectivity, and long-term value creation, with the competitive advantages of established developers with proven capability. On the commercial front, healthy office leasing activity is also being driven by the GCCs, flexible workspace operators, and expanding enterprises, which continue to strengthen the Indian real estate ecosystem.
Speaker #3: While supporting residential demand across key employment corridors, we are pleased to announce that in this quarter, we have received ₹89 crore towards our share of investment and profit from a property sale out of the ₹330 crore, which we had mentioned in our potential cash flows that are forthcoming.
Dhaval Ajmera: We are pleased to announce that in this quarter, we have received INR 89 crore towards our share of investment and profit from a property sale out of the INR 330 crore, which we had mentioned in our potential cash flows, which were coming. Looking ahead, we remain optimistic about the sector's long-term perspective. Continued policy support, infrastructure investment, and a stable interest rate environment continues with the ongoing consolidation in the industry, are expected to strengthen the position of the organized developers. We believe that the moderation witnessed across the quarter reflects normal industry seasonality rather than structural slowdown. As India continues its journey towards becoming a developed economy, we remain confident that disciplined execution, prudent capital allocation, and customer trust will remain the key drivers of the sustainable growth and long-term value creation.
Speaker #3: Looking ahead, we remain optimistic about the sector's long-term perspective. Continued policy support, infrastructure investment, and a stable interest rate environment, together with the ongoing consolidation in the industry, are expected to strengthen the position of the organized developers.
Speaker #3: We believe that the moderation witnessed across the quarter reflects normal industry seasonality, rather than a structural slowdown, as India continues its journey towards becoming a developed economy.
Speaker #3: We remain confident that disciplined execution, prudent capital allocation, and customer trust will remain the key drivers of sustainable growth and long-term value creation.
Speaker #3: Speaking about our company and our ongoing projects, our flagship luxury development, Ajmera Manhattan One, has achieved around 93% sales, with progress in finishing and MEP work.
Dhaval Ajmera: Speaking about our company and the projects of our ongoing projects, our flagship luxury development, Ajmera Manhattan 1, has achieved around 93% sales with progress in finishing and MEP work. Ajmera Manhattan 2, other project in Wadala, has also witnessed an encouraging customer response with more than about 50% of its inventory sold, while the excavation work is in progress. The next phase of Ajmera Greenfinity A and B has recorded 94% sales and is also steadily moving towards completion and getting occupation certificate soon. Ajmera Vihara in Bhandup has received 81% sales, with RCC works in progress. Rehab wings have already been almost completed. The sales wing has also seen good amount of progress in Wing D and Wing E at fourth floor and first floor, respectively.
Speaker #3: Manhattan Ajmera Manhattan and two other projects in Vadala have also witnessed an encouraging customer response, with more than about 50% of the inventory sold, while the excavation work is in progress.
Speaker #3: The next phase of Ajmera Greenfinity A and B has recorded 94% sales and is also steadily moving towards completion and getting occupation certificates soon.
Speaker #3: Ajmera Vihara and Bhandup have received 81% sales with RCC works in progress. We have wings that have already been almost completed, and the sales wing is also seeing a good amount of progress in Wing D and Wing E, on the fourth floor and first floor, respectively.
Speaker #3: Ajmera Solid, our hero for the last quarter, has seen good demand, enabling us to achieve 86% of its inventory being absorbed, while the excavation work has just commenced and is progressing steadily.
Dhaval Ajmera: Ajmera Solace, our hero for the last quarter, has seen good demand, enabling us to achieve 86% of its inventory being absorbed while the excavation work has just commenced and it is progressing steadily. Our commercial project at Ajmera 33 Fifteen has also seen a steady transition in terms of its inventory, where 91.9% of its inventory has been sold, while the piling and the shoring progress is going on. We are looking at faster execution at these projects. Our Luxury Collective item, which has been launched last quarter, Vann By Ajmera in Versova. We are seeing good progress in terms of its work, and also inventory is being slowly and steadily moving, with 3% of its inventory being sold as of today.
Speaker #3: Our commercial project at Bandra 3315 has also seen a steady transition in terms of its inventory, where 19% of the inventory has been sold. Meanwhile, the piling and the shoring work is progressing, and we are looking at faster execution at these projects.
Speaker #3: And our luxury collective item, which is being launched last quarter, Ajmera One by Ajmera in Versova, we are seeing good progress in terms of its work, and also inventory is being slowly and steadily moved, with 3% of its inventory being sold as of today.
Speaker #3: In Bangalore, our mid-micro market housing portfolio also continues to perform strongly, whereas Ajmera Iris has seen 90% of its sales happening and also is steadily progressing towards the occupation certificate, with finishing work in progress. Ajmera Marina has also seen 69% sales in its entire portfolio, and the work has commenced up to the second slab; the basements are done and the second floor slab work is in progress.
Dhaval Ajmera: In Bangalore, our mid micro-market housing portfolios also continues to perform strongly, whereas Ajmera Iris has seen 90% of its sales happening and also that is steadily progressing towards occupation certificate, where finishing work is in progress. While Ajmera Marina has also seen a 69% sales in its entire portfolio, whereas the work has commenced up till second slab and the basements are done, and the second-floor slab work is in progress. Looking ahead at our near-term growth trajectory, we'll be spearheaded by unlocking immense remaining potential of the strategic Wadala land bank, which holds an estimated GDV of around INR 18,000 crore, including the boutique office phase I, coupled with FY27 launch pipeline of in the range of around INR 3,000 crore, which is giving us a massive GDV opportunity of almost INR 21,000 crore in this entire pipeline.
Speaker #3: Looking ahead, a near-term growth trajectory will be spearheaded by unlocking the immense remaining potential of the strategic Vadala Land Bank, which holds an estimated GDV of around ₹18,000 crore, including the boutique office Phase One. This is coupled with an FY27 launch pipeline in the range of around ₹3,000 crore, which gives us a massive GDV opportunity of almost ₹21,000 crore in this entire pipeline.
Speaker #3: During the quarter, we've added an asset-like project in Bangalore with an estimated GDP of approximately ₹400 crores, further strengthening our development pipeline while maintaining our disciplined growth strategy.
Dhaval Ajmera: During the quarter, we've added an asset-light project in Bangalore with an estimated GDV of INR 400 crore approximately, further strengthening our development pipeline while maintaining our disciplined growth strategy. With this, I would now like to hand over to our CFO, Mr. Nitin Bavisi, who will take you over to the financial and operational highlights. Thank you very much.
Speaker #3: With this, I would now like to hand over to our CFO, Mr. Nitin Bavisi, who will take you through the financial and operational highlights.
Speaker #3: Thank you very much.
Speaker #1: Great, good evening to you all, and thank you for joining us for this conference call for Q1 FY27. Before we move on to the Q&A session, allow me to summarize the consistent operational and financial performance that we have delivered.
Nitin Bavisi: Good evening, you all, and thank you for joining us for this conference call for Q1 FY27. Before we move on to the Q&A session, allow me to summarize the consistent operational and financial performance, what we have delivered. Coming to the operational performance first, Ajmera Realty delivered steady start to FY27, reporting sales value of INR 146 crore with a sales area of about 43,000+ square feet sold out and collections being at around INR 173 crore for the quarter. Coming to the financial performance, total revenue for Q1 FY27 at around INR 320 crore, which is up 23% YOY from INR 265 crore Q1 FY26, driven by continuous project execution.
Speaker #1: Coming to the operational performance first, Ajmera Realty delivered a steady start to FY27, reporting sales value of ₹146 crore with a sales area of about 43,000-plus square feet sold, and collections being at around ₹173 crore for the quarter.
Speaker #1: Coming to the financial performance, total revenue for Q1 FY27 was around ₹320 crore, which is up 23% year-on-year from ₹260 crore in Q1 FY26, driven by continued project execution.
Speaker #1: EBITDA grew at 18% year-on-year to ₹94 crore from ₹79 crore in Q1 FY26, with EBITDA margin at around 29%. PAT at ₹45 crore, which is also a 14% year-on-year growth over ₹39 crore in Q1 FY26, with margins at 14%.
Nitin Bavisi: EBITDA grew at 18% YOY to INR 94 crore from INR 79 crore in Q1 FY26, with EBITDA margin at around 29%. PAT at INR 45 crore, which is also a 14% YOY growth over INR 39 crore in Q1 FY26, with margins stood at 14%. Additionally, Ajmera Solis, which became the first time qualified for the revenue recognition during this particular quarter due to its faster execution and as well the exceptional customer response since its launch. On the back of the strong collection and asset monetization, we have reduced our debt by INR 57 crore in this particular quarter from INR 737 crore, which stood at around 31 March 2026 to INR 685 crore as on 30 June 2026. As a result, we achieved the net equity ratio of 0.47x as on 30 June 2026.
Speaker #1: Additionally, Ajmera Solid, which became the first time they qualified for revenue recognition during this particular quarter due to its fast-track execution as well as the exceptional customer response since its launch.
Speaker #1: On the back of the strong collection and asset monetization, we have reduced our debt by ₹57 crore in this particular quarter, from ₹737 crore as on 31st March 2026 to ₹680 crore as on 30th June 2026.
Speaker #1: As a result, we achieved a debt-equity ratio of 0.47x as on 30th June 2026. Moreover, our weighted average cost of debt also came down and is at 11.01% in Q1 FY26, highlighting our enhanced credit profile and disciplined financial management.
Nitin Bavisi: Moreover, our weighted average cost of debt also came down, which is at 11.01% in Q1 FY26, highlighting our enhanced credit profile and disciplined financial management. Our revenue visibility remained very healthy, supported by strong sales from recent launches and steady progress across ongoing and OC-received projects. Revenue visibility from these projects stands at INR 3,846 crore, comprising of INR 1,661 crore from committed sales and INR 2,185 crore from available inventory to sell. Upon the sale, the revenue gets recognized and recorded into the income statement. In addition, our upcoming launch pipeline is expected to contribute at about INR 6,500 plus crores, taking our overall revenue visibility to INR 10,000 plus crores, providing a very solid foundation for sustained growth as we move forward on our ongoing and launch portfolio.
Speaker #1: Our revenue visibility remained very healthy, supported by strong sales from recent launches and steady progress across ongoing and OC-received projects. Revenue visibility from these projects stands at ₹3,846 crore, comprising ₹1,661 crore from committed sales and ₹2,185 crore from available inventory to sell. Upon the sale, the revenue gets recognized and recorded into the income statement.
Speaker #1: In addition, our upcoming launch pipeline is expected to contribute about ₹6,500 crore, taking our overall revenue visibility to over ₹10,000 crore. This provides a very solid foundation for sustained growth as we move forward with our ongoing and launch portfolio.
Speaker #1: The estimated cash flow potential, pre-tax and post-debt, on ongoing projects, upcoming projects, and other revenues is estimated to be about ₹3,380 crore over the life cycle of the projects.
Nitin Bavisi: The estimated cash flow potential pre-tax and post-debt on ongoing projects, upcoming projects, and other revenues is estimated to about INR 3,380 crore over the life cycle of the projects. With this concise summary of business highlights and financial performance, I now invite your questions and look forward to further interaction. Thank you.
Speaker #1: With this concise summary of business highlights and financial performance, I now invite your questions and look forward to further interaction. Thank you.
Speaker #2: Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone.
Operator: Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. We have our first question from the line of Dixit Doshi from Whitestone Financial Advisors. Please go ahead.
Speaker #2: If you wish to remove yourself from the question queue, you may press star two. Participants are requested to use handsets while asking a question.
Speaker #2: Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have our first question from Dixit Doshi of Whitestone Financial Advisors. Please go ahead.
Speaker #4: Yeah, thanks for the opportunity. Can you hear me?
Dixit Doshi: Yeah, thanks for the opportunity. Can you hear me?
Speaker #2: Yes, we can hear you. Please go ahead with the question.
Operator: Yes, sir.
Dixit Doshi: Hello.
Operator: We can hear you. Please go ahead with the question.
Speaker #4: Yeah, yeah. Thank you for the opportunity. So my first question is relating to the Kanchur Mark. So if you can update that where are we spending right now and last quarter you have mentioned that we are planning some strategic tie up or even we are open for outright sale for a seven acre plot to generate cash flows.
Dixit Doshi: Yeah. Thank you for the opportunity. My first question is relating to the Kanjurmarg. If you can update that where are we standing right now? The last quarter, you have mentioned that we are planning some strategic tie-ups or even we are open for outright sale for a seven-acre plot to generate cash flows, and also it will unlock the value. Where are we in that? Have we finalized or anything we can expect in near term? Also, the status of the land conversion. I think the deadline is December, so by when can we expect something about that?
Speaker #4: And also, it will unlock the value. So, where are we in that? Have we finalized, or is there anything we can expect in the near term? And also, the status of the land conversion.
Speaker #4: So, I think the deadline is December. So by when can we expect something over there?
Speaker #1: So, we are working very aggressively on the land conversion process. But yes, it is a regulatory process, and we've involved the government as well as other processes that we need to undertake.
Nitin Bavisi: We are working very aggressively on the land conversion process. Yes, it's a regulatory process which involves the government as well as the other processes which we need to do. We are working on that. Hopefully, our target is we should be able to achieve that very soon, hopefully in the next two to three months' time. We are very confident that it will definitely happen before the December deadline, as we are aware of the same. As far as the strategic tie-up is concerned, yes, we are in active talks with a few and discussions are already going on. Site visits are happening. Preliminary discussions are on. We and them principally have agreed that we will only conclude once the conversion is taking place. That's how we are moving in terms of all the strategic requirements.
Speaker #1: So we are working on that. Hopefully, our target is that we should be able to achieve that very soon, hopefully in the next two to three months' time.
Speaker #1: We are very confident that it will definitely happen before the December deadline, as we are aware of the same. And as far as the strategic type is concerned, yes, we are in active talks with a few.
Speaker #1: And discussions are already going on. Site visits are happening, preliminary discussions are on. But we and they have principally agreed that we will only conclude once the conversion is taking place.
Speaker #1: So that's how we are moving in terms of all the strategic requirements. Both things are moving in parallel on those fronts.
Nitin Bavisi: Both things are moving parallelly on those ends.
Speaker #4: Okay. So you are saying that the land conversion has to happen before any tie-up we finalize.
Dixit Doshi: Okay, you are saying that the land conversion has to happen before any tie-ups we finalize?
Speaker #1: Yes. Because that's how.
Nitin Bavisi: Yes. Because that's how value.
Speaker #4: Okay. And regarding what you are saying about site visits happening and all, is that for an outright purchase, or are we doing some joint development agreement (JDA) type of deal?
Dixit Doshi: Okay. That will be like whatever you are saying that site visits are happening and all. Is it for outright or we are doing some joint JDA type?
Speaker #1: Both. Once a few are out, it's your JD.
Nitin Bavisi: Both. Once a few are outright, few are JDA.
Speaker #4: For seven acre only.
Dixit Doshi: For 7 acres only?
Speaker #1: Yeah.
Dhaval Ajmera: Yeah.
Speaker #4: Okay. So seven acres will not be a single deal. It may be a couple of deals or something like that.
Dixit Doshi: Okay. 7 acres will not be a one single deal. It may be a couple, two deal or something like that.
Speaker #1: It will be a single deal. Some of those are asking for an outright exit, and some are asking for JD, so that evaluation is going on.
Dhaval Ajmera: It will be a one single deal.
Dixit Doshi: Okay.
Dhaval Ajmera: A few of those are asking for an outright exit, and some are asking for a JV. That evaluation is going on.
Speaker #4: Okay, okay. Understood. So, you feel confident that at least in two to three months, the conversion thing should get resolved? Because it's been long pending since we moved something in Kanchur Mark.
Dixit Doshi: Okay. Understood. Do you feel confident that at least in two, three months, the conversion thing should get resolved? Because it's been a long pending since we moved something in Kanjurmarg, just your thoughts on that.
Speaker #4: So, just your thoughts on that.
Speaker #1: Yeah, yeah. No, no, no. We are, in the background, completely working on the progress in terms of the approval processes which are ongoing.
Dhaval Ajmera: Yeah. No, we are, while at the background, completely working on the progress in terms of while the approval processes which are on, but as far as the other things which are required for faster execution once the conversion is done, we have already been keeping things ready, as far as some tax replication matters are concerned or transfer of land or other legalities, whatever needs to be ironed out. All that is parallely being worked on so that we don't waste time then, and get faster things executed.
Speaker #1: But as far as the other things which are required for faster execution, once the conversion is done, we have already been keeping things ready as far as some tax implication matters are concerned, or transfer of land, or other legalities—whatever needs to be ironed out.
Speaker #1: All that is being worked on in parallel so that we don't waste time then and can execute things faster.
Speaker #4: Okay. And, parallelly, any update on the 55-acre? Because that's also something we are planning to launch in FY28.
Dixit Doshi: Okay. Parallely, any update on the 55 acres? Because that also we are planning for launch in FY28.
Speaker #1: So, yeah, that work in terms of master planning has been frozen. Now, we have moved to phase two, with all the technical evaluation and all that.
Dhaval Ajmera: Yeah, that work in terms of master planning has been frozen. Now we have moved to the phase two of all the technical evaluation and all that. As far as also the infrastructure work is concerned, that work is also being planned out, and we should be able to start that pretty soon. By the next year, FY28, when we launch, everything will be in order.
Speaker #1: As far as the infrastructure work is concerned, that work is also being planned, and we should be able to start that pretty soon.
Speaker #1: So by next year, FY28, when we launch, everything will be in order.
Speaker #4: Okay. Now coming to the this year launch. So you know for this year we are targeting six and a half thousand crore launches. Out of which let's say 50% is the boutique office.
Dixit Doshi: Okay. Now coming to this year launch. For this year, we are targeting INR 6,500 crore launches, out of which let's say 50% is the boutique office. I had a question over there that firstly, whether we are confident of launching that in Q3 and how confident, or do you feel that, considering the current demand environment, you feel that may be postponed? The related question is, earlier, a year back, we were planning INR 1,800 crore launch for boutique office. Now we are doing it in a single space around INR 3,600 crore. I think this will be the largest project of Ajmera Realty. Not only in commercial but even considering residential, we have not done any single such big launch. How confident are you in the demand and also the launch in.
Speaker #4: Now I have a question over there: firstly, are we confident of launching that in the third quarter, and how confident are we? Or do you feel that, considering the current demand environment, it may be postponed?
Speaker #4: And the related question is, you know, earlier—a year back—we were planning an ₹1,800 crore launch for the boutique office. Now we are doing it in a single phase, around ₹3,600 crore.
Speaker #4: I think this will be the largest project, not only in commercial, but even considering ventilation, we have not done any single such big launch.
Speaker #4: So, how confident are you on demand and also the launch?
Speaker #2: Sorry to interrupt you, Dixit. Your voice is breaking.
Operator: Sorry to interrupt you, Dixit. Your voice is breaking.
Speaker #1: So we've got the, we've got the gist of the question. So, you know, Mr. Dixit, we are, if we, we had informed last time only that there have been some approval changes, and that is where we've got an additional million square feet of FSI which has loaded in our Vadala project.
Dhaval Ajmera: No, we've got the gist of the question. Mr. Dixit, we had informed last time only that there has been some approval changes, and that is where we've got an additional million odd square feet of SSI, which has loaded in our Wadala project, by virtue of which we've got another INR 3,000 crores of GDV increase. What we see over the last so many years with the growth story of India, the GCC growth has also been significantly higher. Also now with data centers evolving in a larger way in outside of the city, other GCCs also erupting in a bigger way and larger way, there has been a good demand for commercial premises all across Mumbai, because of its strategic connectivity all across in Mumbai.
Speaker #1: By virtue of which we've got another three or four thousand crores of GDV increase. And what we see over the last, you know, so many years with the growth story of India, the GCC growth has also been significantly higher. And also now, with data centers evolving in a larger way outside of the city, and other GCCs also erupting in a bigger and larger way, there has been a good demand for commercial premises all across Mumbai because of its, you know, strategic connectivity all across Mumbai.
Speaker #1: And Vadala, being enjoying this strategic connectivity, we are seeing a great demand coming for commercial spaces in this particular micro market because of its connectivity to the new airport and BKC.
Dhaval Ajmera: Wadala enjoying this strategic connectivity, we are seeing a great demand coming for commercial spaces in this particular micro market because of its connectivity to the new airport and DMIC. Hence, we are confident, and that is why we are launching. Earlier, we were doing about 4 to 5 lakh square feet of office space launch. Now we are going to do about 8 to 8.5 lakh square feet of office space launch. That is why we are seeing this larger number coming. While we internally speak to our customers, our brokers, and other people, they are very confident about a good turnaround coming in this space.
Speaker #1: So, hence, we are confident, and that is why we are launching. Earlier, we were doing about four to five lakh square feet of office space launch.
Speaker #1: Now we are going to do about 800,000 to 850,000 square feet of office space launch, and that is why we are seeing this larger number coming. And then, while we internally speak to our customers, our brokers, and other people, they are very confident about a good turnaround coming in this space.
Speaker #4: Okay. And last question—in terms of other projects that we have planned for this year, do you feel that most of them we will be able to launch? Because I think we have moved some of the timelines, like Bori Valley moved from Q3 to Q4.
Dixit Doshi: Okay. Last question, in terms of other projects, what we have planned for this year, do you feel that most of it we will be able to launch? I think we have moved some of the timelines, like Borivali moved from Q3 to Q4. Even Pune moved from Q1 to Q4. Is there any regulatory issue or just a demand scenario?
Speaker #4: Even Pune moved from Q1 to Q4. So, is it any regulatory issue or just a demand scenario?
Speaker #1: No. Some are regulatory issues. Some are—you know, I mean, most of them are regulatory issues which have come in, and we have actually commenced the work at Pune.
Dhaval Ajmera: No. Some are regulatory issues. Most of them are regulatory issues which have come in, and we have actually commenced the work at Pune. We in fact even got the RERA number also. We will only launch this once we reach. We have strategically decided that we will not launch this at a, what do you call it, an execution or a ground level stage, or on the excavation stage. We will launch this at a stage where we will be able to create a better demand and pricing, which will come during the plinth level, and hence we've moved from Q1 to Q4.
Speaker #1: We in fact even we've got the RERA number also. But we will only launch this once once we reach the strategically decided that we will not launch this at a what do you call at an execution or a ground level stage or like on the excavation stage.
Speaker #1: But we will launch this at a stage where we will be able to create better demand and pricing, which will come during the plinth level.
Speaker #1: And hence, we've moved from the first quarter to the last quarter.
Speaker #4: Okay, okay. I have a few more questions. I'll join back.
Dixit Doshi: Okay. I have few more questions. I'll join back.
Speaker #1: Sure.
Dhaval Ajmera: Sure.
Speaker #2: Thank you. A reminder to all participants: if you wish to ask any questions, you may press star and one. Anyone who wishes to ask a question may press star and one.
Operator: Thank you. A reminder to all participants. If you wish to ask any questions, you may press star and one. Anyone who wishes to ask a question may press star and one. We have a follow-up question from the line of Dixit Doshi from Whitestone Financial Advisors. Please go ahead.
Speaker #2: We have a follow-up question from Dixit Doshi of Whitestone Financial Advisors. Please go ahead.
Speaker #4: Yeah, thanks for the opportunity again. So my next question is regarding the project One Ajmera. So, I mean, this quarter we were not able to sell any flats there.
Dixit Doshi: Yeah, thanks for the opportunity again. My next question is regarding the project in One, Ajmera One. I mean, this quarter, we were not able to sell any flats there. How do you see it? Because it looks like the demand is not there for that project. If you can give some thought over there.
Speaker #4: So, how do you see, you know, because it looks like the demand is not there for that project, which is in... Give your some thought over there.
Speaker #1: No, it's not like that. We are very cautious in our sales. We have brought this as a luxury collective. In fact, if you see, there is demand coming for larger areas rather than smaller areas.
Nitin Bavisi: No, it's not like that. We are very cautious in our sales. We have got this as a Luxury Collective. In fact, if you go to see, there is demand which is coming for larger areas and smaller areas, we are evaluating all of that. We are speaking to the required brokers, and this micro-market sees a demand for such larger apartments only once they have probably come up to an RCC level where they can actually see the buildings coming up. Right now, we are under an excavation stage. We are mindful of that, and we are aware of this. We are not pushing, what you call, a desperate sale to come in. We are very confident, and even the channel partners and our investors, whoever has across, they all are very confident about getting good numbers coming as the building progresses.
Speaker #1: And we are evaluating all of that. We are speaking to the, you know, required brokers. And this micro market sees a demand for such larger apartments only once they are probably being come up to an RCC's level, where they can actually see the buildings coming up.
Speaker #1: And right now, we are under an excavation stage. So we are mindful of that and we are aware of this. So we are not pushing, you know, what do you call, a desperate sale to come in.
Speaker #1: We are very confident, and even the, you know, the channel partners and our, you know, investors, whoever are across, they all are very confident about getting good numbers coming and the building is progressive.
Speaker #1: So obviously, building progress has started. It will take, because it is two basements and a plinth and podiums to come in. So that, about a year or so will go.
Nitin Bavisi: Obviously, building progress has started. It will take, because it is 2 basements and a plinth and a podium to come in, so that about one year or so will go. We will see subdued sales this financial year for this project, but over the time and next year, when the progress of the superstructure is happening, we will start seeing traction coming in a faster way.
Speaker #1: We will see subdued sales for this financial year for this project. But over time, and next year, when the progress of the superstructure is happening, we will start seeing traction coming in a faster way.
Speaker #4: Okay. My next question is: you know, we have reduced our consolidated debt, but if you see this quarter's result, our interest cost on a quarter-on-quarter basis, on a consolidated level, has gone up from ₹21 crore to almost ₹30 crore.
Dixit Doshi: Okay. My next question is, we have reduced our consolidated debt, but if you see this quarter result, our interest cost on a quarter-on-quarter on a console has gone up from INR 21 crore to almost INR 30 crore. Any particular reason for this?
Speaker #4: So, any particular reason for this?
Speaker #1: Yes, certainly. So, it is like, you know, the solid project which is entered as or qualified for revenue recognition for the first time.
Nitin Bavisi: Yeah, certainly. It is like the Solace project, which is entered as a, or qualified for the revenue recognition first time. The entire accumulated cost pool, which is debited to the P&L, and significant part of the cost has been interest cost on this particular project. That's how on the consolidated numbers, you see the numbers that of the finance cost. Happy to bring the fact the real reason for this, because of the high cost debt in this particular project, which was through private equity deal, which was supported for the acquisition one, which we have fast-tracked and repaid significantly from our cash sales collection kind of a thing. That's the reason that particular IRR servicing is the finance cost, and which is got participated into, whence the project got revenue recognized, qualified for this quarter.
Speaker #1: So, the entire accumulated cost pool, which is debited to the P&L, and a significant part of the cost has been, you know, interest cost on this particular project.
Speaker #1: And that's how, on the consolidated numbers, you see the numbers of the finance cost. And I'm happy to bring up the fact that the real reason for this is because of the high-cost debt in this particular project, which was through a private equity deal that was supported for Acquisition One, which we have fast-tracked and repaid significantly from our cash sales collection and similar activities.
Speaker #1: And that's the reason that, you know, that particular IRR servicing is the finance cost, and which got participated into when the project got revenue recognized, qualified for this quarter.
Speaker #4: So, from next quarter onwards, this ₹30 crore will come back to normalize, like the ₹20 crore we used to have around.
Dixit Doshi: From next quarter onwards, this INR 30 crore will come back to normalize, like INR 20 crore with this year.
Nitin Bavisi: Absolutely. As you see that, my weighted average cost also coming down very gradually, kind of a thing, the marginal loans, which are at a much lower than the weighted average cost. Once that particular component starts coming into the outstanding loan, the weighted average cost, and hence the overall finance cost amount also will come down gradually.
Speaker #1: Absolutely. As you see that you know my weighted average cost also coming down very gradually kind of a thing. And the marginal loans which are at a much much lower than the weighted average cost.
Speaker #1: Once that particular component starts coming into the outstanding loan, the weighted average cost and hence the overall finance cost amount will also come down gradually.
Speaker #4: Okay. And in terms of this ₹89 crore asset monetization, was there any profit or something in this P&L?
Dixit Doshi: Okay. In terms of this INR 89 crore asset monetization, was there any profit or something in this P&L?
Speaker #1: It is actually as a financial asset, which was classified into the balance sheet. So it's a balance sheet transaction between the cost that we incurred and, as well, the financial—or the advances—which we have done for this particular project.
Nitin Bavisi: It is actually the financial asset which was classified into the balance sheet. It's a balance sheet transaction between the cost with what we incurred and as well the financial or the advances which we have done for this particular project. It's a completely a cash flow transaction, INR 89 crore, which we have realized out of INR 330 crore, the guidance which we have been giving about the asset monetization. INR 89 crore, which we have unlocked out of that.
Speaker #1: So, it's completely a cash flow transaction. Rs. 89 crore, which we have realized out of the Rs. 330 crore guidance which we have been giving about the asset monetization.
Speaker #1: So 89 crore which we have unlocked out of that.
Speaker #4: Okay. So nothing has come from the PNL regarding this.
Dixit Doshi: Okay. Nothing has come from to P&L regarding this.
Speaker #1: No. As I explained it is a financial asset. So it is a balance sheet transaction.
Nitin Bavisi: No, as I explained, it is a financial asset, so it is a balance sheet transaction.
Speaker #4: Okay. Okay. And my last question is you know from last quarter's presentation we have removed the south SP concrete Bangalore project. From our you know upcoming launch.
Dixit Doshi: Okay. My last question is, from last quarter's presentation, we have removed the South SV Concrete Bangalore project from our upcoming launch. Any particular reason?
Speaker #4: So any particular reason?
Speaker #1: So that particular one has got swapped with Whitefield, which is the project line item six in my launch pipeline, and which is the business development that we have done in this quarter.
Nitin Bavisi: That particular has got swapped with Widefield, which is the project line item 6 in my launch pipeline, and which is the business development which we have done in this quarter, and which is against the INR 1,800 crore guidance of BD. It is INR 389 crore, which is the Widefield, and which is also we are aspiring to bring in into the Q4 FY27. That is the swap between SV Concrete and Widefield project.
Speaker #1: And which is you know against the 1800 crore guidance of BD. It is 389 crore which is the Whitefield. And which is also we are aspiring to bring in into the last quarter of FY27.
Speaker #1: So that is the swap between SV concrete and Whitefield project.
Speaker #4: But SV Concrete will come next year, or is that project no longer with us?
Dixit Doshi: SV Concrete will come next year or that project is no longer with us?
Speaker #1: No. It will no longer be there.
Nitin Bavisi: No, it will no longer be there.
Speaker #4: Okay. Okay. So any particular reason? I mean, we launched and the project itself is not—
Dixit Doshi: Okay. Any particular reason? I mean, we completely upload launch and then the project itself is not-
Speaker #2: Sorry to interrupt you Dixit. Your voice broke in between.
Operator: Sorry to interrupt you, Dixit. Your voice broke in between.
Speaker #4: Sorry. So I was asking, is there any particular reason why we included it in our planned launch, and now the project is not with us?
Dixit Doshi: Sorry. I was asking, any particular reason, like we have put it in our planned launch and now the project is not with us?
Speaker #1: So typically it is like you know the Bangalore location always been a very asset light kind of a thing. We have been evaluating the proposal.
Nitin Bavisi: Typically, it is like the Bangalore location always been a very asset-light kind of a thing. We have been evaluating the proposal and bring it up to the stage where we can confidently look at it. This is a solitary position that this particular project is not now turning out to be a project to come and launch. The new project which we have added and we have ring-fenced that particular transaction and which is the part of the launches now.
Speaker #1: And very bring it up to the stage where we can confidently look at it. This is a solidary position that you know the this particular project is not now turning out to be a project to come and launch.
Speaker #1: And the new project which we have eyed and we have you know ring fence that particular transaction. And which is the part of the launches now.
Speaker #4: Okay. Fine. Thank you so much.
Dixit Doshi: Okay, thank you. That's it from me.
Speaker #2: Thank you. We have our next question from the line of Devang, an individual investor. Please go ahead.
Operator: Thank you. We have our next question from the line of Dewang, an individual investor. Please go ahead.
Speaker #4: Yeah. Good evening all. Just wanted to check one thing: currently the debt-equity ratio, or debt ratio, is around 0.47, and our expectation by end of the year is 1x.
[Company Representative]: Good evening all. Just wanted to check one thing, that currently the debt equity ratio is 0.47, and our expectation by end of the year is 1x. What is going to be the expectation on a realistic number by financial year-end? That's my first question. The second question is, in current uncertain economic environment, what is the outlook on the real estate sector in the short term and the medium term?
Speaker #4: So, what is going to be the expectation on realistic numbers by financial year end? That's my first question. And the second question is, in the current uncertain economic environment, what is the outlook on the real estate sector in the short term and the medium term?
Speaker #1: So I'll answer your first question regarding the debt the debt equity ratio 0.47. Yes. We have been very successful in managing the debt and reducing the debt equity.
Nitin Bavisi: I'll answer your first question regarding the debt-equity ratio of 0.47. Yes, we have been very successful in managing the debt and reducing the debt-equity. As you can appreciate that we have the deep launch pipeline and few of the projects which require a pre-RERA kind of a capital, which is going to create some kind of a requirement for the debt. As we come near to the launch and then sales velocity on launches, we are confident that those working capital loans will start coming and we can start coming back to the deleveraging. Yeah, there would be about a quarter or two whereby this kind of a situation is going to be there. That's the reason we gave the guidance of FY27 to 1x. With this asset monetization and another also deal absolutely sealed out kind of a thing.
Speaker #1: But as you can appreciate, you know we have the deep launch pipeline and a few of the projects which require a pre-RERA kind of capital.
Speaker #1: Which is, you know, going to create some kind of a requirement for the debt. But as we come near to the launch, and then sales velocity on launches, we are confident that, you know, those working capital loans will start coming, and, you know, we can start coming back to the, you know, deal averaging.
Speaker #1: But yeah there would be a about a quarter or two whereby you know this kind of a situation are going to be there. And that's the reason we gave the guidance of FY27 to 1X.
Speaker #1: But with this asset monetization and another deal also absolutely, you know, sealed out, kind of a thing, we are now seeing a much lower position as we go forward, kind of a thing.
Nitin Bavisi: We are now seeing a much lower levered position as we go forward, kind of a thing.
Speaker #4: Okay. Okay.
[Company Representative]: Okay.
Speaker #1: Okay. For the real estate outlook, I would invite Mr. Daval back.
Nitin Bavisi: Real estate outlook, I would invite Mr. Dhaval.
Speaker #4: You know, the real estate outlook is, at least if I have to particularly talk generally, it is looking positive. We have not seen—even if you look at the numbers, you know, all across other developers and their companies also, numbers have, you know, been okay.
Dhaval Ajmera: The real estate outlook is, at least if I have to particularly talk generally, it is looking positive. We have not seen, even if you look at the numbers all across other developers and their companies also, numbers have been okay. The sales have been good wherever launches have happened. I think there is still a good demand for real estate. People have become cautious. I would not say they have not become cautious, but with this cautiousness, we are still seeing a good uptake in the luxury market and in the mid-end luxury market. The segments where we operate, even if I have to look at our sales numbers, although they may be a little subdued because we didn't have larger launches coming in, but at least for the sustained projects where we are continuing to have, we are seeing sales happening across every site.
Speaker #4: The sales have been good wherever launches have happened. I think there is still good demand for real estate. People have become cautious. I would not say they have not become cautious.
Speaker #4: But with this cautiousness, we are still seeing a good uptake in the luxury market and in the midland luxury market. So, the segments where we operate, even if I have to look at our sales numbers, you know, although they may be a little subdued.
Speaker #4: Because we didn't have larger launches coming in. But at least for the sustained projects, where we are continuing to have, we are seeing sales happening across every site.
Speaker #4: Okay. Great. And then last one more question. That under presentation we see certain cash flow still coming from asset monetization. So any expectation during this financial year?
[Company Representative]: Okay, great. Last one more question. Under presentation, we see certain cash flow still coming from asset monetization. Any expectation during this financial year for the cash flow?
Speaker #4: For the cash flow.
Speaker #1: Yeah. In fact out of 330 crore 89 crore is already has happened. And we met the another disclosure regarding the R stake sale for the one of our joint venture company.
Nitin Bavisi: Yeah. In fact, out of INR 330 crore, INR 89 crore already has happened. We made another disclosure regarding our stake sale for one of our joint venture company, and that is what we are going to report in Q2 because we just sealed the deal in the first week of July 2026. That is going to be reported in Q2 as the matter of cash flow. But yeah, that is going to be a further acceleration to the cash flow realization out of this INR 330 crore.
Speaker #1: And that is what we are going to report in quarter two because we just sealed the deal in the month of first week of July 2026.
Speaker #1: So that is going to be reported in Q2 as a matter of cash flow. But yes, that is going to be a further acceleration to the cash flow realization.
Speaker #1: Out of this 330 crore.
Speaker #4: Okay. Great. Thank you.
[Company Representative]: Okay, great. Thank you.
Speaker #1: Thanks.
Nitin Bavisi: Thanks.
Speaker #2: Thank you. A reminder to all participants. If you wish to ask any questions you may press star and one. Anyone who wishes to ask a question may press star and one on the touch tone telephone.
Operator: Thank you. A reminder to all participants, if you wish to ask any questions, you may press star and one. Anyone who wishes to ask a question may press star and one on their touchtone telephone. As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Speaker #2: As there are no further questions I would now like to hand the conference over to the management for closing comments.
Speaker #1: Thank you everybody for participating in the call and you know about the company credentials and the progress on the project portfolio. Keep interactions and stay safe until we connect next time.
Nitin Bavisi: Thank you everybody for participating in the call and about the company credentials and the progress on the project portfolio. Keep interacting and stay safe until we connect next time. Thank you.
Speaker #1: Thank you.
Speaker #4: Thank you.
Dhaval Ajmera: Thank you.
Speaker #2: Thank you. On behalf of. Ajmera Reality and Infra India Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.
Operator: Thank you. On behalf of Ajmera Realty & Infra India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
