Q1 2027 Ajmera Realty & Infra India Ltd Earnings Call

August 4, 2026

Speaker #1: Ladies and gentlemen, you have been connected for the Ajmera Realty and Infra India Limited Conference Call. Please stay connected; the call will begin shortly. Ladies and gentlemen, you have been connected for the Ajmera Realty and Infra India Limited Conference Call.

Operator: Ladies and gentlemen, you have been connected for Ajmera Realty & Infra India Limited Conference Call. Please stay connected. The call will begin shortly. Ladies and gentlemen, you have been connected for Ajmera Realty and Infra India Limited conference call. Please stay connected. The call will begin shortly. Ladies and gentlemen, good day and welcome to the Ajmera Realty and Infra India Limited Q1 FY 2027 earnings conference call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions at the end of today's presentation.

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 touch-tone 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.

Operator: Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I would now like to hand the conferenc`e 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 Chotalia, Lead, Investor Relations. Thank you, and over to you, sir.

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.

Gaurang Chotalia: Good evening, everyone, 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: The call will commence with opening remarks by our Director of Corporate Affairs, Mr. Jawal Ajmera, and will be followed by the Business Performance Discussion by our CFO, Mr. Nitin Vasithi. 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 made 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.

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. Jawal Ajmera. Thank you, and over to you, sir.

Speaker #3: Good evening, everyone. Thank you very much. I hope everyone is doing fine, and I would just like to begin the conference by giving you sector updates, followed by the company update. The numbers will then be reviewed 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, and 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, and 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: 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, I would say it 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 continued 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. Although 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 capability. 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 the credibility of the developer.

Speaker #3: Speaking about the residential market, we 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. The competitive advantages of established developers with proven capabilities are evident. On the commercial front, healthy office leasing activity has been driven by 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 which are coming.

Dhaval Ajmera: We are pleased to announce that in this quarter, we have received an 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 sector's long-term perspective, continued policy support and 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, along with the ongoing consolidation in the industry, are expected to strengthen the position of the organized developers.

Speaker #3: We believe that the modern witnessed 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 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 continuing in finishing and MEP works.

Dhaval Ajmera: Speaking about our company and the progress of our ongoing projects, our flagship luxury development, Ajmera Manhattan One, has achieved around 93% sales, with progress in finishing and MEP work. Ajmera Manhattan Two, 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 Infinity, A and B, has recorded 94% sale and is also fast, steadily moving towards completion and getting occupation certificate soon. Ajmera Vihara in Bhandup has received 81% sales with RCC work in progress. Rehab wings have already been almost completed, and the sales wing has also seen good amount of progress in Wing D and Wing E, the 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 their 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, with fourth floor and fourth 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 Bandra 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 this project. Our Luxury Collective item, which has been launched last quarter, One 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 its inventory has been sold while the piling and the shoring progress is going on, and we are looking at faster execution at these projects.

Speaker #3: And our luxury collective item, which has been launched last quarter, Ajmera One by Ajmera in Warsaw, we are seeing good progress in terms of its work and also inventory has been slowly and steadily moving, with 3% of its inventory being sold as of today.

Speaker #3: In Bangalore our mid micro market housing portfolio is also continues to perform strongly whereas Ajmera Iris has been 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 to second slab at the basements are done at the second floor slab work is in progress.

Dhaval Ajmera: 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 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 to second slab, where the basements are done and the second-floor slab work is in progress. Looking ahead at our near-term growth trajectory will be spearheaded by unlocking immense the remaining potential of the strategic Wadala land bank, which holds an estimated GDV of around INR 18,000 crores, including the boutique office phase I, coupled with FY27 launch pipeline of in the range of around INR 3,000 crores, which is giving us a massive GDV opportunity of almost INR 21,000 crores in this entire pipeline.

Speaker #3: Looking ahead at our near-term growth trajectory, it will be spearheaded by unlocking the immense remaining potential of the strategic Vadala land bank, which holds an estimated GDV of around ₹1,800 crore, including the boutique office phase one, coupled with the FY27 launch pipeline in the range of around ₹3,000 crore. This is giving us a massive GDV opportunity of almost ₹2,100 crore in this entire pipeline.

Speaker #3: During the quarter, we rid an asset-light project in Bangalore with an estimated GDV of approximately ₹400 crore, further strengthening our development pipeline while maintaining our disciplined growth strategy.

Dhaval Ajmera: During the quarter, we added an asset-light project in Bangalore with an estimated GDV of INR 400 crores 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 asset area of about 43,000-plus sq ft 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 out and collections being at around ₹173 crore for the quarter.

Speaker #1: Coming to the financial performance, total revenue for quarter one FY27 stood at around ₹320 crore, which is up 23% year-on-year from ₹260 crore in quarter one FY26, driven by continued project execution.

Speaker #1: EBITDA grew at 18% by a while to 94 crore from 79 crore in quarter one FY26 with EBITDA margin at around 29%. PET at 45 crore which is also a 14% by a while growth over 39 crore in quarter one FY26 with margins stood 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. 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 680 crore as on 30 June 2026. As a result, we achieved the debt equity ratio of 0.47x as on 30 June 2026.

Speaker #1: Additionally, Ajmera Solids became qualified for revenue recognition for the first time during this particular quarter due to its faster 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 of 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, which is at 11.01% in Quarter 1 FY26, highlighting our enhanced credit profile and disciplined financial management.

Nitin Bavisi: Moreover, our weighted average cost of debt also came down and 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 remains strong.

Speaker #1: Stands at ₹3,846 crore, comprising ₹1,661 crore from committed sales and ₹2,185 crore from available inventory to sell. Upon the sales, 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, providing a very solid foundation for sustained growth as we move forward on 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-tax 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 touchtone 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 and 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 the line of Dixit Doshi from 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 your question.

Operator: Yes, sir.

Dixit Doshi: Hello.

Operator: We can hear you. Please go ahead with the question.

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. By when can we expect something about that?

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 standing right now and last quarter you have mentioned that we are planning some strategic tie up or even we are open for you know outright sale for a seven acre plot to generate cash flows and also it will unlock the value.

Speaker #4: So where are we in that have we finalized or anything we can expect in near term and also the status of the land conversion.

Speaker #4: So, I think the deadline is December. By when can we expect something?

Speaker #3: So we are, you know, working very aggressively on the land conversion process, but yes, there is a, you know, it's a regulatory process which involves the government as well as other processes which we need to do.

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 happen, 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 thing is taking place. That's how we are moving in terms of all the strategic requirements.

Dhaval Ajmera: 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 happen, 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 thing is taking place. That's how we are moving in terms of all the strategic requirements.

Speaker #3: 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 #3: We are very confident that it will definitely happen before the December deadline, as we are aware of the situation. And as far as the strategic type is concerned, yes, we are in active talks with a few parties, and discussions are already going on. Site visits are happening, preliminary discussions are on, but we and them have, in principle, agreed that we will only conclude once the conversion is taking place.

Speaker #3: So, that's how we are moving in terms of all the strategic requirements. So both things are moving in parallel on Thursday.

Nitin Bavisi: Both things are moving parallelly on those ends.

Dhaval Ajmera: 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-up we finalize?

Speaker #3: Yes. Because that's how.

Nitin Bavisi: Yes. Because that's how better value.

Dhaval Ajmera: Yes. Because that's how better value.

Speaker #4: Okay. And that will be like—like whatever you are saying, that site visits are happening and all. So is it for an outright, or are we doing some joint JDA type?

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?

Nitin Bavisi: Both. Once a few are outright, few are JV.

Dhaval Ajmera: Both. Once a few are outright, few are JV.

Speaker #3: Both. Once a few are outright, your JD.

Speaker #4: For seven acre only.

Dixit Doshi: For seven acre only?

Speaker #3: Yeah.

Nitin Bavisi: Yeah.

Dhaval Ajmera: Yeah.

Speaker #4: Okay. So seven acres will not be a single deal. It may be a couple, two deals, or something like that.

Dixit Doshi: Okay. seven acre will not be a one single deal. It may be a couple, two deal or something like that.

Speaker #3: It will be a single deal. Some of those are asking for an outright exit, and some are asking for a JV.

Nitin Bavisi: It will be a one single deal.

Dhaval Ajmera: It will be a one single deal.

Dixit Doshi: Okay.

Nitin Bavisi: Few of those are asking for an outright exit and some are asking for JV. That evaluation is going on.

Dhaval Ajmera: Few of those are asking for an outright exit and some are asking for JV. That evaluation is going on.

Speaker #3: So, that evaluation is going on.

Speaker #4: Okay, okay. Understood. So, but 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 2, 3 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 #3: Yeah, yeah. No, no, no, we are, while in the background, completely working on the progress in terms of the approval processes, which are ongoing. But as far as the other things that are required for, you know, faster execution once the conversion is done, we have already been keeping things ready as far as some tax implication matters are concerned, or, you know, transfer of land, or other legalities—whatever needs to be ironed out.

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 implication matters are concerned or transfer of land or other legalities, whatever needs to be ironed out. All that is parallelly being worked on so that we don't waste time there and get faster things executed.

Speaker #3: All that is being worked on in parallel so that we don't, you know, waste time then and can get things executed faster.

Speaker #4: Okay. And, in parallel, any update on the 55 acres? Because we are also planning for launch in FY28.

Dixit Doshi: Parallelly, any update on the 55 acres? Because that also we are planning for launch in FY2028.

Speaker #3: So yeah, that work in terms of master planning has been frozen. Now we have moved to phase two of all the technical evaluation and all that. As far as the infrastructural work is concerned, that work is also being planned, and we should be able to start that pretty soon. So by next year, FY28, when we launch, everything will be in order.

Dhaval Ajmera: Yeah, that work in terms of master planning has been frozen. Now we have moved to phase 2 of all the technical evaluation and all that. As far as also the infrastructure work is concerned, that work has also been planned up, and we should be able to start that pretty soon. By the next year, FY2028, 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 percent is the boutique office.

Dixit Doshi: Okay. Now, coming to this year's 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 this 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 an 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 Lodha, 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 is.

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? Do you feel that, considering the current demand environment, it may be postponed? And the related question is, you know, earlier a year back we were planning a ₹1,800 crore launch for the boutique office.

Speaker #4: Now we are doing it in a single phase, around ₹3,600 crore. I think this will be the largest project not only in commercial, but even completely in ventilation. We have not done any single such big launch.

Speaker #4: How confident are you that you know the demand and also the launch issue?

Speaker #2: Sorry to interrupt you, Dixit. Your voice is breaking.

Operator: Sorry to interrupt you, Dixit. Your voice is breaking.

Speaker #3: No, we got—yeah, we 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-odd square feet of FSI which has loaded in our Vadala project.

Dhaval Ajmera: We 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 FSI, 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, and also now with data centers evolving in a larger way outside of the city and 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 #3: By virtue of which we've got another three odd 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 in outside of the city and 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 you know strategic connectivity all across in Mumbai.

Speaker #3: 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, 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. Hence, we are confident and that is why we are launching. Earlier, we were doing about 45 lakh square feet of office space launch. Now we are going to do about eight to eight and a half lakh square feet of office space launch. That is why we are seeing this larger number coming in. 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 #3: 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 launches; now, we are going to do about eight to eight and a half lakh square feet of office space launches.

Speaker #3: And that is why we are seeing this larger number coming in, 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 will be able to launch? Because I think we have moved some of the timelines. Like, Bhori Valley moved from Q3 to Q4; even Pune moved from Q1 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? Because 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: So, is it a regulatory issue, or just a demand scenario?

Speaker #3: No some are regulatory issue 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 we in fact even we've got the RERA number also but we will only launch this once once we reach be a 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 but 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 first quarter to the last quarter.

Dhaval Ajmera: No. Some are regulatory issues, I mean, most of them are regulatory issues which have come in, and we have actually commenced the work at Pune. We, in fact, even have 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 moved from Q1 to Q4.

Speaker #4: Okay. Okay. I have a few more questions; I'll join back in.

Dixit Doshi: Okay. I have few more questions. I'll join back then.

Speaker #3: 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 Joshi from Whitestone Financial Advisors. Please go ahead.

Dixit Doshi: Yeah. Thanks for the opportunity again. My next question is regarding the project in Ajmera One. I mean, this quarter, we were not able to sell any flats there. How do you see it? It looks like the demand is not there for that project. If you can give your some thought over there.

Speaker #4: Yeah thanks for the opportunity again. So my next question is regarding the project in one Ajmera one I mean this quarter we were not able to sell any flat bed so how do you see you know because I it looks like you know the demand is not there for that projects which is in give your some thought over there.

Speaker #3: 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, and we are evaluating all of that.

Nitin Bavisi: 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 go to see, there is demand which is coming for larger areas and smaller areas, and 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 are probably being come up to an RCC's 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 do you call, at 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 #3: 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 level where they can actually see the buildings coming up. 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 you would call a desperate sale to come in.

Speaker #3: 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 as the building progresses.

Speaker #3: So obviously building progress has started. It will take, because it is two basements and a plinth and podiums to come in, so 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. That about one year or so will go. We will see subdued sales this quarter, this financial year for this project. 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 #3: 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 results, our interest cost on a quarter-on-quarter basis at a consolidated level has gone up from Rs 21 crore to almost Rs 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 consolidated has gone up from INR 21 crore to almost INR 30 crore. Any particular reason for this?

Speaker #4: So, is there any particular reason for this?

Speaker #3: Yeah, certainly. So, it is like, you know, the Solids project, which is entered as—or qualified for—the revenue recognition for the first time.

Nitin Bavisi: Yeah, certainly. It is like the Solis project, which is entered or the qualified for the revenue recognition first time. The entire accumulated cost pool, which is dedicated 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 co-participated into whence the project got revenue recognized qualified for this quarter.

Speaker #3: So the entire accumulated cost pool which is debited to the PNL and significant part of the cost has been you know interest cost on this particular project and that's how on the consolidated numbers you see the numbers that of the finance cost and happy to bring the fact the real reason for this because of the you know 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 track and repaid significantly from our cash sales collection kind of a thing and that's the reason that you know that particular IRR servicing is the finance cost and which is called participated into when the project got revenue recognized qualified for this quarter.

Speaker #4: So, from next quarter onwards, this Rs 30 crore will come back to normalize, like the Rs 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 in this year.

Speaker #3: 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 once that particular component starts coming into the outstanding loan the weighted average cost and hence the you know overall cost finance cost amount also will come down gradually.

Nitin Bavisi: Absolutely. As you see that 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. 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 #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 #3: It is actually the financial asset which was classified into the balance sheet. So, it's a balance sheet transaction between the cost that we incurred and the financials or the advances which we have made 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 incur 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 #3: So, it's completely a cash flow transaction. ₹89 crore, which we have realized out of the ₹330 crore guidance which we have been giving about the asset monetization.

Speaker #3: So 89 crore which we have unlocked out of that.

Speaker #4: Okay. So, nothing has come from PNL regarding this.

Dixit Doshi: Okay. Nothing has come from to P&L regarding this.

Speaker #3: 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 HP Concrete Bandra project from our upcoming launch.

Dixit Doshi: 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 #3: So that particular has got swept with the white field, which is the project line item six in my launch pipeline, and which is the business development which we have done in this quarter and which is, you know, against the 1,800 crore guidance of BD.

Nitin Bavisi: That particular has got swapped with the Whitefield, which is the project line item six 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 Whitefield, and which is also we are aspiring to bring in into the Q4 FY27. That is the swap between SV Concrete and Whitefield project.

Speaker #3: It is ₹389 crore, which is the white field. And this is also what we are aspiring to bring in during the last quarter of FY27.

Speaker #3: So, that is the swap between SV Concrete and White Field project.

Speaker #4: But SV concrete will come next year or that project is no longer with us.

Dixit Doshi: SV Concrete will come next year or that project is no longer with us?

Speaker #3: No it will no longer be there.

Nitin Bavisi: No, it will no longer be there.

Speaker #4: Okay. Okay. Any particular reason I mean we we put in a plan launch and then the project itself is not.

Dixit Doshi: Okay. Any particular reason? I mean, we launch and then the project itself is not-

Speaker #2: Sorry to interrupt you Dixit. Your voice broken between.

Operator: Sorry to interrupt you, Dixit. Your voice broke in between.

Speaker #4: Sorry. So, I was asking, is there any particular reason we have put it in our planned launch and now the project is not with us?

Dixit Doshi: Sorry. I was asking, so any particular reason, like we have put it in our planned launch and now the project is not with us?

Speaker #3: 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 and very bring it up to the stage where we can confidently look at it.

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 eyed, and we have ring-fenced that particular transaction, and which is the part of the launches now.

Speaker #3: 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 #3: And the new project which we have eyed, and we have, you know, ring-fenced that particular transaction, and which is part of the launch, is now.

Speaker #4: Okay. Exactly.

Dixit Doshi: Okay. Thank you.

Speaker #2: Thank you. We have a next question from line of Devang and individual investor. Please go ahead.

Operator: Thank you. We have our next question from line of Dewang, an individual investor. Please go ahead.

Speaker #4: Yeah. Good evening all. Just wanted to check one thing that currently the debt equity ratio is around debt ratio is 0.7 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 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 a short term and a medium term?

[Shareholder] (Private Investor): Good evening all. Just wanted to check one thing, that currently the debt 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 a short term and a medium term?

Speaker #4: So, what is going to be the expectation, on a realistic number, 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 #3: 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-sales 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 are 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 #3: But as you can appreciate that you know we have the deep launch pipeline and few of the projects which require a pre-data kind of a capital.

Speaker #3: 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 #3: But yeah, there would be about a quarter or two whereby, you know, this kind of a situation is going to be there. And that's the reason we gave the guidance of FY27 to 1X.

Speaker #3: But with this asset monetization and another also deal absolutely you know sealed out kind of a thing. We are now you know seeing a much livered a lower livered 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.

[Shareholder] (Private Investor): Okay.

Speaker #3: Okay. For the real estate outlook, I would invite Mr. Devant. You know, the real estate outlook is—at least if I have to talk generally—it is looking positive.

Nitin Bavisi: Real estate outlook, I would invite Mr. Ajmera.

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, 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. At least for the sustained projects where we are continuing to have, we are seeing sales happening across every site.

Speaker #3: 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.

Speaker #3: 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 midland luxury market.

Speaker #3: So the the segments where we operate even if I have to look at our sales numbers you know 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 you know 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?

[Shareholder] (Private Investor): 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 #3: Yeah in fact out of 330 crore but 89 crore is already has happened and we made the another disclosure regarding the our stake sale for the one of our joint venture company and that is what we are going to report in quarter two because we just seen the deal in the month of first week of July 2026.

Nitin Bavisi: 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. That is going to be a further acceleration to the cash flow realization out of this INR 330 crore.

Speaker #3: 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 #3: Out of this 330 crore.

Speaker #4: Okay. Great. Thank you.

[Company Representative]: Okay, great. Thank you.

[Shareholder] (Private Investor): Okay, great. Thank you.

Speaker #3: 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 touchtone 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 #3: Thank you everybody for participating 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 interactions and stay safe until we connect next time. Thank you.

Speaker #3: Thank you. 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 rights.

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.

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Q1 2027 Ajmera Realty & Infra India Ltd Earnings Call

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