Q1 2027 Ashiana Housing Ltd Earnings Call

Speaker #1: On behalf of Arvind Capital Markets Ltd., I thank you all for joining into Q1 of 2027, earning conference call of the management, we have Mr. Varun Gupta, the hold time director, and Mr. Vikash Dugar, the CFO of the company.

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Speaker #1: So, without any further delay, I would hand over the call to the management for their opening remarks. Over to you, sir.

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Speaker #2: Thank you. Good evening, everyone, and a warm welcome to all of you for joining our earnings conference call. For the first quarter of financial year 2027, the real estate sector entered FY27 on a more moderated note, after the strong momentum witnessed through FY26.

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Speaker #2: Residential demand across key markets softened, somewhat, during the quarter, weighed down by global economic uncertainty and a cautious wait-and-watch approach among some homebuyers; at the same time, developers continued to remain confident in the medium to long-term outlook, with new project launches holding firm and prices remaining resilient across most markets.

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Speaker #2: Premiumization continued to be defining trend, with VATs increasingly gravitating toward larger, well-designed homes, from established and financially disciplined developers reinforcing the ongoing shift toward organized and branded players.

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Speaker #2: The senior living segment continued to remain relatively insulated from these broader demand fluctuations, supported by structural demographic-led growth drivers changing family structures, rising urbanization, and a growing preference for community-based living among senior citizens continued to strengthen the long-term case for this segment.

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Speaker #2: With organized supply still limited relative to the size of India's aging population, the opportunity for established players in this space remained significant, and largely unaffected by short-term cyclicality in the broader housing market.

Speaker #2: I will now take you through our operating highlights for the quarter, followed by our financial performance. Starting with our operational performance for the quarter, the company recorded a booking value of Rs.

Speaker #2: 258 crores, during the quarter gone by, with 3.6 lakh square feet of area sold, across 234 units. While bookings moderated compared to the exceptionally strong preceding quarter, our corrections remained healthy at Rs.

Speaker #2: 409 crore, registering a 6% year-on-year growth. Reflecting sustained customer confidence and strong collection efficiency, average realization also improved significantly to Rs. 9,923 per square foot, representing a 37% year-on-year increase, driven by a favorable product mix and continued pricing resilience across our portfolio.

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Speaker #2: During the quarter, we made a significant investment toward our future growth pipeline through acquisition of 28.55 acres of land at Vadgaon, Mabal, in Pune, this is the largest ever land acquisition undertaken by the company for a senior living project.

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Speaker #2: With an estimated sellable area of approximately 20 lakh square feet and a potential sales value of around 80 million crores. On the execution front, we commenced handover for phase 1 of Ashiana Nitara in Jaipur, during the quarter, marking another important milestone in our project's delivery year.

Speaker #4: During the quarter, we made a significant investment towards our future growth pipeline through the acquisition of 28.55 acres of land at Vadgaon, Mavel in Pune. This is the largest-ever land acquisition undertaken by the company for a senior living project.

Speaker #4: With an estimated sellable area of approximately 20 lakh square feet and a potential sales value of around ₹1,800 crore. On the execution front, we commenced handover for Phase One of Ashiana Nitara in Jaipur during the quarter, marking another important milestone in our project delivery.

Speaker #2: Overall, we continue to make meaningful progress across the key pillars of our long-term growth strategy, by maintaining a diversified geographical presence, expanding our senior living portfolio, strengthening our development pipeline, and progressing steady on project execution.

Speaker #2: Coming to the financial performance, revenue from operations for the quarter stood at Rs. 107 crore, compared to Rs. 293 crores in Q1 FY26. Revenue recognition in Q1 FY27 was primarily driven by handovers at Ashiana Nitara in Jaipur, higher revenue in FY26 was attributable to more deliveries.

Speaker #4: Overall, we continue to make meaningful progress across the key pillars of our long-term growth strategy by maintaining a diversified geographical presence, expanding our senior living portfolio, strengthening our development pipeline, and progressing steadily on project execution.

Speaker #4: Coming to the financial performance, revenue from operations for the quarter stood at ₹107 crore, compared to ₹293 crore in Q1 FY26. Revenue recognition in Q1 FY27 was primarily driven by handovers at Ashiana Nitara in Jaipur.

Speaker #2: PAT for Q1 FY27 was lower vis-à-vis Q4 of FY26 due to lower deliveries. Importantly, our operating cash generation remained healthy during the quarter, at Rs.

Speaker #2: 121 crores, compared to Rs. 108 crores in same in same quarter last year. This reflects the strength of our collections, disciplined execution, and efficient working capital management despite lower reported revenues.

Speaker #4: Higher revenue in FY26 was attributable to more deliveries. Path for Q1 FY27 was lower vis-à-vis Q4 of FY26 due to lower deliveries. Importantly, our operating cash generation remained healthy during the quarter, at ₹121 crores compared to ₹108 crores in the same quarter last year.

Speaker #2: We also commenced the redemption of NCDs issued to ICICI Prudential, mutual fund, during the quarter, 31.25 crore, representing 25% of the original issue was redeemed.

Speaker #4: This reflects the strength of our collections, disciplined execution, and efficient working capital management, despite lower reported revenues. We also commenced the redemption of NCDs issued to ICICI Prudential Mutual Fund during the quarter; ₹31.25 crore, representing 25% of the original issue, was redeemed.

Speaker #2: Overall, while the reported revenue for the quarter was impacted by timing of project handovers, the company continued to demonstrate healthy operating cash flow, generation, maintained a disciplined approach, toward capital allocation, and strengthened its development pipeline.

Speaker #2: Particularly in the senior living segment, with this, I would like to open the floor for Q&A session. Thank you.

Speaker #4: Overall, while the reported revenue for the quarter was impacted by the timing of project handovers, the company continued to demonstrate healthy operating cash flow generation, maintained a disciplined approach towards capital allocation, and strengthened its development pipeline.

Speaker #3: Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and 1 on the touchstone telephone.

Speaker #4: Particularly in the senior living segment. With this, I would like to open the floor for the Q&A session. Thank you.

Speaker #3: If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question.

Speaker #5: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone.

Speaker #3: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rohan Joshi, an individual investor.

Speaker #5: If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question.

Speaker #3: Please go ahead.

Speaker #4: Hi sir, am I audible?

Speaker #2: Yeah, you are audible, Rohan. Please go on.

Speaker #5: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Rohan Joshi, an individual investor.

Speaker #4: Hi sir. So thank you for giving me the opportunity. So my question was on a line that the quarter-1 booking suggests a back-ended year versus a full-year target.

Speaker #4: So I just wanted to know that which specific launches are expected to drive the bookings in H2, and like what gives the confidence in hitting the F1 FY27 guidance that you have given in the previous con calls, given this soft start.

Speaker #5: Please go ahead.

Speaker #6: Hi sir, am I audible?

Speaker #4: Yeah, you are audible, Rohan. Please go on.

Speaker #6: Yeah, hi, sir. Thank you for giving me the opportunity. My question is regarding the line that the Q1 bookings suggest a back-ended year versus the full-year target.

Speaker #6: So, I just wanted to know which specific launches are expected to drive the bookings in H2. And what gives you confidence in hitting the F1, FY27 guidance that you have given in the previous con calls, given this soft start?

Speaker #2: Varun, you are there?

Speaker #4: Yeah, I'm there. Vikash, why don't you take it up though?

Speaker #2: Yeah, so you are right that the quarter-1 has been relatively softer, but we have got launches lined up, and there are a couple of launches lined up in Q4 that we have in the present year.

Speaker #4: Okay. Good, sir. And my sorry, just I will just I mean, an, sorry. In July, we take out took out an operational update. So in July, we had a great launch of a project called Ashiana Oma, so as of 31st July, our full-year sales had reached to about 859 odd crores, if I were to say, so if you look at the July month was better than actually all the entire first quarter.

Speaker #4: So I would say in the first half itself, exit September 30th, we should somewhere be between 1,050 and 1,100 crores of sale. So run rate will be maintained from there on, and in the in the second half of the year, the big launch that is lined up is Ashiana Aaroham's phase 3 in Gurgaon, that will be critical in taking us through to the guidance.

Speaker #4: So at that, that will be in either Q3 or Q4 of this year. Okay, got it, got it, sir. I have a second question was regarding the pre-sales growth that we will have.

Speaker #4: So pre-sales grew very well last year, as as we have seen. So what is the sustainable pre-sales trajectory from here onwards for the next 3 to 5 years?

Speaker #4: So on that front, I we are not as looking for sustained pre-sales growth in the near term. I think what we are planning is how do we what do we do in the long term thing.

Speaker #4: So we might have actually a little bit of dip in pre-sales this year or the next, and then let's say let's get back to a certain number in 28, 29, or 29, 30.

Speaker #4: Rohan, you are there?

Speaker #6: Yeah, I'm there. Vikasji, why don't you take it up though?

Speaker #4: Yeah, so you are right that the quarter one has been relatively softer, but we have got launches lined up. And there are a couple of launches lined up in Q4 that we have in the present year.

Speaker #4: I a little bit of that is being driven by little lack of inventory to sell coming up in Gurgaon and Jaipur and Diwali, some of our key markets in the regular housing space.

Speaker #4: This is primarily happening because the company is shifting more and more capital toward the senior living space, where we see a much longer, deeper opportunity.

Speaker #6: Okay. Good sir. And my so just I will just I'll come in. Sorry. In July, we take out took out an operational update. So in July, we had a great launch of a project called Ashana Oma.

Speaker #4: So I think like in the senior living space, we are looking for about 25% CAGR to be maintained over the long term. Though at a low base, we had started about 100 crores, 5 years ago, and pre-sales of about 570 last year in in senior living.

Speaker #6: So, as of 31st July, our full-year sales had reached about ₹859 crore, if I were to say. If you look at it, the month of July was better than actually the entire first quarter.

Speaker #4: And we are looking to really, really actually expand that. Even at a faster CAGR than that. So so for a couple of years, we may not have very large pre-sales growth or that, but we are comfortable with that because we are seeing margin expansion and ROEs now, as we are guided earlier, we are looking to get to at least 15% ROE.

Speaker #6: So, I would say in the first half itself, exiting September 30th, we should be somewhere between ₹1,050 and ₹1,100 crore of sales. So the run rate will be maintained from there on.

Speaker #6: And in the second half of the year, the big launch that is lined up is Ashiana Arohan's Phase 3 in Gurgaon. That will be critical in taking us through to the guidance.

Speaker #4: And we can see 15% ROE sustaining going forward. And with the increasing capital base because we don't intend to dividend out most, you know, significant amounts of capital dividends will remain the way we are growing a little bit.

Speaker #6: So, that will be in either Q3 or Q4 of this year. Okay, got it. Got it, sir. My second question is regarding the pace of sales growth that we will have.

Speaker #4: So I think the company's focus would be on maintaining that ROE trajectory doesn't fall below 15 and sustains above 15 year-on-year every year. With a little bit of fluctuation here or there in in the pre-sales or top line and stuff like that.

Speaker #6: So, pay sales grew very well last year, as we have seen. What is the sustainable pay sales trajectory from here onwards for the next three to five years?

Speaker #6: So on that front, I we are not as looking for sustained pre-sales growth in the near term. I think what we are planning is how do we what do we do in the long term thing.

Speaker #4: So that there is compounding of the of the net worth happens over a over a long period of time. I think that's the intent.

Speaker #4: So I just thought I'll put that out there. That said, I think senior living, as I articulated, we see we we expect to see strong momentum in senior living sales going forward.

Speaker #6: So, we might actually have a little bit of a dip in pre-sales this year or the next, and then, let's say, let's get back to a certain number in '28-'29 or '29-'30.

Speaker #4: Sure, sir. So that was informative. Thank you so much. Thank you. Thank you.

Speaker #6: A little bit of that is being driven by a lack of inventory to sell coming up in Gurgaon and Jaipur, and with Diwali approaching. These are some of our key markets in the regular housing space.

Speaker #3: Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star and 1 on your touchstone telephone. Ladies and gentlemen, if you wish to ask a question, please press star and 1 on your touchstone telephone.

Speaker #6: This is primarily happening because the company is shifting more and more capital towards the senior living space, where we see a much longer and deeper opportunity.

Speaker #6: So, I think, in the senior living space, we are looking for about 25% CAGR to be maintained over the long term. Though at a low base—we had started at about ₹100 crore five years ago—and pre-sales of about ₹570 crore last year, in senior living.

Speaker #3: The next question is from the line of Rohit from I thought PMS. Please go ahead.

Speaker #5: Yeah, hi, good afternoon. I'm sorry, I just joined when you were answering your the question, Varun. So I'm sorry if I missed it. So when you were giving the update on the July month, that was for pre-sales.

Speaker #6: And we are looking to really, really actually expand that, even at a faster CAGR than that. So, for a couple of years, we may not have very large pre-sales growth or that, but we are comfortable with that because we are seeing margin expansion and ROEs. Now, as we guided earlier, we are looking to get to at least 15% ROE.

Speaker #5: Is that correct?

Speaker #4: Yes, that is correct.

Speaker #5: So so then just following on from there, so is this year you are confident of holding on to that 2,500 crore kind of pre-sales for FY27?

Speaker #5: Is that correct? Because I think you said there could be a dip in the near term, so and and and you

Speaker #6: And we can see 15% ROE sustaining going forward. And with an increasing capital base, because we don't intend to dividend out most, you know, significant amounts of capital, dividends will remain the way we are, growing a little bit.

Speaker #4: I think 2,200 is what we are sorry.

Speaker #5: Sorry, 2,200. I'm sorry. Yeah. 2,200.

Speaker #4: 2,200. Yeah, 2,200. 2,200 we are confident of holding it this year.

Speaker #5: Okay, okay.

Speaker #4: At this moment of time, it looks good. We should exit H1 at about 1,100, as I indicated, 15,000, 15, 1,100, given that we hit 860 by July.

Speaker #6: So, I think the company's focus would be on maintaining that ROE trajectory, ensuring it doesn't fall below 15 and sustains above 15 year on year, every year.

Speaker #4: So 850.

Speaker #5: Right. Right, right. Right. Okay, that's that's good to hear. And sorry, just want to small things. So one was on this Bangalore CP that we were looking at.

Speaker #6: With a little bit of fluctuation here or there in in the pre-sales or top line and stuff like that. So that there is compounding of the of the net worth happens over a over a long period of time.

Speaker #5: Anything we anything further on that? We haven't heard any update, so just wanted to check.

Speaker #6: I think that's the intent. So I just thought I'll put that out there. That said, I think senior living, as I articulated, we see we we expect to see strong momentum in senior living sales going forward.

Speaker #4: So there has been progress, Rohit. On the CPs, being resolved in Bangalore, I'm hoping that we should have the final definitive documentation signed off sooner than later.

Speaker #6: Sure, sure, sure. That was informative. Thank you so much. Thank you.

Speaker #4: So there has been progress there, and we have actually put a team deployed, two people there, on team who are gearing up to make things ready to get the project launch going.

Speaker #5: Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star and one on your touchtone telephone. Ladies and gentlemen, if you wish to ask a question, please press star and one on your touchtone telephone.

Speaker #4: So I'm quite confident that Bangalore South Bangalore should happen soon.

Speaker #5: Okay, this is in South Bangalore. Okay, okay, got it. I I just wanted to check where where you are in Bangalore. I just came to know that.

Speaker #5: The next question is from the line of Rohit from I Thought PMS. Please go ahead.

Speaker #4: This is this is in this is on Kanakpura Road.

Speaker #7: Yeah, hi. Good afternoon. I'm sorry, I just joined when you were answering the question, Rohan. So I'm sorry if I missed it. When you were giving the update on the July month, that was for pre-sales, right?

Speaker #5: Right, right, right. I I I I I figured. I think I just remembered the listing that you had posted when you had acquired this when you were given this notification.

Speaker #5: So sorry, one more question, Varun, was so I mean, if we were to look at the presentation where you give quarterly delivery of course, it can change here and there a bit.

Speaker #7: Is that correct?

Speaker #6: Yes, that is correct.

Speaker #7: So, just following on from there, are you confident of holding on to that ₹2,500 crore kind of pre-sales for FY27 this year?

Speaker #5: But it seems that if I mean, you said 15% ROE. I think we were 15% ROE last year also. Or just about there.

Speaker #7: Is that correct? Because I think you said there could be a dip in the near term. So, and you—

Speaker #4: Yeah, yeah.

Speaker #6: Yeah, I think 2,200 is what we— sorry.

Speaker #5: So I think based on what you are saying and what I mean, given the margins can significantly increase from here, given the projects that we have for delivery, they must have very good margins going forward because of the realization growth.

Speaker #7: Sorry, 2,200. I'm sorry. Yeah.

Speaker #6: 2,200.

Speaker #7: 2,200.

Speaker #6: Yeah, 2,200. 2,200 we are confident of holding this year. At this moment of time, it looks good. We should exit H1 at about 1,100 as I indicated, between 1,050 and 1,100, given that we hit 860 by July.

Speaker #5: And in general, operating leverage so I mean, is it not fair that we will probably cross 20% ROE this year on a reported basis?

Speaker #6: So 850.

Speaker #7: Right. Right. Right. Right. Okay. That's that's good to hear. And sorry, just want two small things. So one was on this Bangalore CP that you were looking at.

Speaker #4: Yes, that is fair. So when I say 15%, the goal of the company is to make 15% ROE, the floor ROE in a long-term basis, yeah.

Speaker #4: So and have and and have years higher than that. So the first was to get to 15, but the objective strategic objective is to make that the floor.

Speaker #7: Anything we anything further on that we haven't heard any update. So just wanted to check.

Speaker #6: So there has been progress, Rohit. On the CPs being resolved in Bangalore, I'm hoping that we should have the final, definitive documentation signed off sooner rather than later.

Speaker #4: And figure out how you can do it.

Speaker #5: Sure. No, that's a very well-taken point, given the fact that it's a very cyclical industry. If you're able to do it, then I think it will be a phenomenal achievement.

Speaker #6: So there has been progress there. And we have actually put a team deployed, two people there, on team who are gearing up to make things ready to get the project launch going.

Speaker #5: Varun, just I mean, I I understand, and I think we have spoken on this in the past few concalls. That you are not so much driven driven by the hello?

Speaker #6: So, I’m quite confident that Bangalore, South Bangalore, should happen soon.

Speaker #4: Yes. Yes, sir. Hi, sir.

Speaker #5: Yeah. Hello?

Speaker #7: Okay. This is in South Bangalore. Okay. Okay. Got it. I I just wanted to check where where you are in Bangalore. I just came to know that.

Speaker #4: Yes, sir. Please go ahead, Rohit.

Speaker #6: This is on Kanakpura Road.

Speaker #5: Yeah, yeah, yeah. So sorry, I was saying that if I mean, I understand your point that you're not so much fixated by the pre-sales growth, at least in the near term.

Speaker #7: Right, right, right. I figured. I think I just remembered the listing that you had posted when you had acquired this, when you had given this notification.

Speaker #5: But even if you were to sort of let's say 1, 2 years we are not going to grow because we don't have that much inventory.

Speaker #7: So sorry, one more question, Marun. I mean, if we were to look at the presentation where you give quarterly delivery—of course, it can change here and there a bit.

Speaker #4: I mean, you're not he is not right for consumption, sir. Which department can you talk? There is one more connection here.

Speaker #7: But it seems that, I mean, you said 15% ROE. I think we were at 15% ROE last year also, or just about there.

Speaker #5: Yeah, I'm not sure if it is. Yeah. Sorry. Hello?

Speaker #4: Okay. Cores, can someone from Czech if there is any other connection on the line, please? Okay, sorry. Rohit, go ahead. Yeah.

Speaker #6: Yeah. Yeah.

Speaker #7: So, I think based on what you are saying and what I mean, given that margins can significantly increase from here, and given the projects that we have for delivery, this must have very good margins going forward because of the realization growth and general operating leverage. So, I mean, is it not fair that we will probably cross 20% ROE this year on a reported basis?

Speaker #5: Yeah, yeah. So I was just saying that while this while I'm while I understand your point on not going for pre-sales immediately, and we may not have the inventory, but how do we sort of in the quest of trying to balance that 15% ROE, aspiration and also grow because ultimately that is what all of us also want as a company.

Speaker #6: Yes, that is fair. So when I say 15%, the goal of the company is to make 15% ROE, the floor ROE in a long-term basis, yeah.

Speaker #5: So yeah, how do we balance that? I'm not saying that we should I mean, of course, we don't have land. We should probably get land in the next 1, 2 years, and subsequently launch.

Speaker #6: So, and have, and have years higher than that. So the first was to get to 15, but the strategic objective is to make that the floor.

Speaker #5: But just to understand from your perspective, let's say 3, 4 years out, how do we sort of ready ourselves for the to sort of grow from this 2,200, 2,300 pre-sales that we will sort of be at, given the inventory position?

Speaker #7: Sure. No, I think that is a very very important sure. No, that's a very well-taken point given the fact that it's a very cyclical industry.

Speaker #7: If you are able to do it, then I think it will be a phenomenal achievement. Marun, I just—I mean, I understand, and I think we have spoken on this in the past few concalls.

Speaker #5: How do we sort of go from that level to the next level whenever that happens? Let's say 3, 4 years. So any thoughts on that?

Speaker #7: That you are not so much driven driven by the hello?

Speaker #5: Yeah.

Speaker #4: So Rohit, two things. If our capital base is not reducing, if we are not dividending out our capital or doing buybacks, which we don't intend to do, and we are looking to increase our capital base, there is no way ROEs can sustain without earnings growth, right, that sheer mathematics.

Speaker #6: Yes. Yes, sir. Hi, sir.

Speaker #7: Yeah. Hello?

Speaker #6: Yes, sir. Please go ahead, Rohit.

Speaker #7: Yeah, yeah, yeah. So sorry, I was saying that—I mean, I understand your point that you're not so much fixated on the pre-sales growth, at least in the near term.

Speaker #4: For for ROE to sustain, we will have to have earning long-term earnings growth. So from a long-term perspective, we do want to get to, let's say, in the medium term, maybe 3, 4,000 crores of pre-sales, we'll need to hit.

Speaker #7: But even if you were to sort of let's say one, two years you're not going to grow because you don't have that much inventory.

Speaker #6: Right. You're not, you're not right sometimes, sir. Wait about that. There is one more connection here.

Speaker #4: All I'm I was saying was, momentarily, for for some quarters of challenge, we could go through if that sustained momentum will take to get there.

Speaker #7: Yeah, I'm not sure if it is. Yeah, sorry. Hello?

Speaker #4: And I think the strategy of the company is, okay, let's invest more and more in senior living because we see that as a structural business.

Speaker #6: Okay. Koresh, can someone check if there is any other connection on the line, please? Okay, sorry. Rohit, go ahead. Yeah.

Speaker #4: So the change is. And second, less cyclical, because it's a structural change. Because of the change in the demographics. And it's less cyclical because it's less competitive with less less supply on the table as of zone, and we have a sort of a significant advantage of being a pioneer there and having our sort of brand placed in everything.

Speaker #4: Yeah, yeah. So, I was just saying—

Speaker #7: that while this while I'm while I understand your point on not going for pre-sales immediately and you may not have the inventory, but how do we sort of in the quest of trying to balance that 15% ROE aspiration and also grow because ultimately that is what all of us also want as a company.

Speaker #4: So the long-term earnings growth and also pre-sales growth is going to be driven by how senior living does. And right now, it's a small base, but it's as we increase the senior living piece and the pie, and when that increases, when it becomes a larger part of the business, it will just keep driving the growth of the business is where we are coming from.

Speaker #7: So yeah, how do we balance that? I'm not saying that we should—I mean, of course, we don't have land. We'll probably get land in the next one or two years.

Speaker #7: And subsequently launch. But just to understand from your perspective, let's say three, four years out, how do we sort of ready ourselves for the to sort of grow from this 2,200, 2,300 pre-sales that we will sort of be at given the inventory position?

Speaker #4: So let's say a 29, 30 financial year target is actually to look at 1,500 crores of pre-sales from senior living itself. And once that has kicked in, I think senior living and then pre-sales growth will happen.

Speaker #7: How do we sort of go from that level to the next level whenever that happens? Let's say three or four years. So, any thoughts on that?

Speaker #4: So we are looking at couple you know, couple of quarters of maybe not as much top-line growth in those and through those quarters, I think though, we will continue to have earnings reported earnings are doing well.

Speaker #7: Yeah.

Speaker #6: So Rohit, two things. If our capital base is not reducing, if we're not dividending out our capital or doing buybacks, which we don't intend to do, and we are looking to increase our capital base, there is no way ROEs can sustain without earnings growth, right, that sheer mathematics.

Speaker #4: We'll continue to have reported ROEs doing well. We will continue to generate positive cash. And deploy into senior living. So we have already deployed into 4, 5 projects, 4 right now, 51 lakh square foot odd, which we have in the future 5, the Bangalore one coming up.

Speaker #6: For ROE to sustain, we will have to have long-term earnings growth. So, from a long-term perspective, we do want to get to, let's say, in the medium term, maybe ₹3,000–₹4,000 crores of pre-sales we'll need to hit.

Speaker #4: We are an active discussions for a few more. I think maybe get to a first place would be to get to about a 10,000 crores of GDV in senior living.

Speaker #6: All I was saying was, momentarily, for some quarters of challenge, we could go through if that sustained momentum will take to get there.

Speaker #4: Once we have that, I think then then we can see just senior living driving the momentum of the company going forward. I think that's the basic key.

Speaker #6: And I think the strategy of the company is, okay, let's invest more and more in senior living because we see that as a structural business.

Speaker #4: So and I think we will need to get to 3, 4,000 crores of GDV, of pre-sales, probably closer to 4,000 in the medium term to be able to sustain those ROEs.

Speaker #6: So the change is, and second, it's less cyclical because it's a structural change, because of the change in the demographics. And it's less cyclical because it's less competitive, with less supply on the table as of now.

Speaker #4: And instead of just saying that, instead of a straight-line path that there is, there's a maybe a little bit of a dip for a couple of years, and we can live with that and and pick that up and get there.

Speaker #6: And we have a sort of significant advantage of being a pioneer there and having our brand placed and everything. So the long-term earnings growth, and also pre-sales growth, is going to be driven by how senior living does.

Speaker #4: I think that's that's the basic thing just.

Speaker #5: Very good. Very good. All the very best, and yeah, thank you.

Speaker #4: Thank you, Rohit.

Speaker #1: Thank you. The next question is on the line of Chetan Thakkar from M3 Investment Private Limited. Please go ahead.

Speaker #6: And right now, it's a small base, but as we increase the senior living piece and the pie, and when that increases—when it becomes a larger part of the business—it will just keep driving the growth of the business, is where we are coming from.

Speaker #5: Good afternoon, sir. So just a question on the ROE. I think earlier we were highlighting a 20% plus ROE, and today you've commented that long run it remains 15.

Speaker #6: So, let’s say the 2029–30 financial year target is actually to look at ₹1,500 crores of pre-sales from senior living itself. And once that has kicked in, I think senior living and then pre-sales growth will happen.

Speaker #5: So what has changed between those two assumptions?

Speaker #4: Okay. Chetan, maybe I'm wrong, but whatever I remember, we have been talking about getting to 15% for the longest time, and we hit 15% last year and reported earnings.

Speaker #6: So we are looking at a couple, you know, a couple of quarters of maybe not as much top-line growth in those, and through those quarters, I think though we will continue to have earnings—reported earnings are doing well.

Speaker #4: I I would maybe I'll go back and check the transcripts if I've said otherwise. But that said, as was on the current call, previous question, I think this year we will hit 20% ROE, and we should hit 20% ROEs for a few more years, given the plan that we have in place.

Speaker #6: We'll continue to have reported ROEs doing well. We will continue to generate positive cash and deploy into senior living. So, we have already deployed into four, five projects—four right now, 5.1 lakh square feet odd—which we have in the future pipeline, with the Bangalore one coming up.

Speaker #4: I think that is something that we can do. But as I said, 15% ROE has been the long-term goal. That's the that's the rate minimum rate that that's the that's the minimum rate that capital should sort of compound at going forward.

Speaker #6: We are in active discussions for a few more. I think maybe a good first place would be to get to about ₹10,000 crores of GDV in senior living.

Speaker #4: That's been the intent. At 15.

Speaker #6: Once we have that, I think then we can see just senior living driving the momentum of the company going forward. I think that's the basic key.

Speaker #5: This is a structurally how should we look at the ROEs and we build it up from a project to the ROE perspective. So how does the project margin change for you?

Speaker #6: So, I think we will need to get to ₹3,000–4,000 crore of GDV in pre-sales—probably closer to ₹4,000 crore in the medium term—to be able to sustain those ROEs.

Speaker #5: More longer run, not just for a year or two. But how does the project margin change for you which gets you to 15?

Speaker #6: And instead of just saying that, instead of a straight-line path, that there is maybe a little bit of a dip for a couple of years, and we can live with that and pick that up and get there.

Speaker #4: I think if we are able to achieve about a 30% gross margin and.

Speaker #6: I think that's the basic thing you said.

Speaker #7: Very good, very good. All the very best. Thank you.

Speaker #1: Hello, sir. Your voice is not audible. Hello, Varun, sir.

Speaker #6: Thank you, Rohit.

Speaker #4: Hi. I heard you.

Speaker #1: Thank you. The next question is from the line of Chetan Thakkar from M3 Investment Private Limited. Please go ahead.

Speaker #1: No, sir.

Speaker #5: It's muffled, sir.

Speaker #4: Okay. Vikash, why don't you take this up?

Speaker #7: Good afternoon, sir. I just have a question on the ROE. I think earlier we were highlighting a 20% plus ROE, and today you commented that in the long run, it remains at 15%.

Speaker #5: This is better. This is better.

Speaker #3: Yeah, yeah. This is better. If you want to continue, or else I'll take it.

Speaker #4: Yeah. I'll just continue. So as I said, we generally target about a 30% gross profit margin at the project level. About 18% PBD margin, about a 12% SG&A, and a 18% PBD margin, and 13.5 pack per.

Speaker #7: So, what has changed between those two assumptions?

Speaker #6: Okay, Chetan, maybe I'm wrong, but from what I remember, we have been talking about getting to 15% for the longest time, and we hit 15% last year in the project earnings.

Speaker #4: If we are able to sustain that, whenever whichever year, I think overall, translate into the teams. And if we are able to improve the margin profile further from here, then that takes us about 20.

Speaker #6: I would—maybe I'll go back and check the transcripts if I've said otherwise. But that said, as was on the current call, previous question, I think this year we will hit 20% ROE, and we should hit 20% ROEs for a few more years given the plan that we have in place.

Speaker #4: That's the general sort of view for me.

Speaker #5: And levers to improve the margin, would it be more pricing power given the brand and given how we are placed in the senior citizen market?

Speaker #5: That would be one key lever, or are there any other levers as well there?

Speaker #4: So so one so for pricing power is definitely a key lever. And senior living, due to that, enjoy pricing power in senior living. And what we are also intending to do in senior living is increase our product profile into a little bit more higher-end segment.

Speaker #6: I think that is something that we can do. But as I said, 50% ROE has been the long-term goal. That's the that's the rate minimum rate that that's the that's the minimum rate that the capital could sort of compound at going forward.

Speaker #4: So if you see our pricing has been increasing on a ticket size basis also. We are going up to more premiumized products as Vikashji had mentioned in his opening, premiumization remains the thing.

Speaker #6: That's been the intent, at 15.

Speaker #7: So, structurally, how should we look at the ROEs, and how do we build it up from a project to the ROE perspective? So, how does the project margin change for you in the longer run, not just for a year or two?

Speaker #7: But how does the project margin change for you, which gets you to 15?

Speaker #4: So as we move premiumize our products and enter higher sort of category of products, they are also nothing should improve.

Speaker #6: I think if we are able to achieve about a 30% gross margin, and...

Speaker #5: Perfect.

Speaker #3: And if I may just add to that, Varunji, I think the other factor is the operating leverage fully player playing out in the long run.

Speaker #3: Because if we are talking about the senior living, which is relatively more resilient towards the cyclical fluctuations, if that attains a critical mark, something like 1,500 crores, of a pre-sale that you talked about, the kind of operating leverage which will flow through will also give a sustained kind of impact on the margins in the long run.

Speaker #1: Hello, sir. Your voice is not audible. Hello, Varun sir.

Speaker #6: Hi.

Speaker #1: No, sir.

Speaker #7: It's muffled, sir.

Speaker #6: Okay, Vikashi, why don't you take this up? I'll join.

Speaker #7: This is better. This is better.

Speaker #3: Yeah, yeah, this is better. If you want to continue, you can, or else I'll take it.

Speaker #6: I just so as I said, we generally target about a 30% gross profit margin at the project level. About 18% PBD margin, about a 12% SG&A, and a 18% PBD margin, and 13 and a half pack plus.

Speaker #3: And hence the ROEs as well.

Speaker #5: Understood, sir. Thank you, sir. That's helpful. All the best.

Speaker #1: Thank you. The next question is on the line of Ankit Shah from White Equity Investment Advisors. Please go ahead.

Speaker #6: If you're able to sustain that, whenever, whichever year, I think overall, generally our ROEs should translate into the teams. And if we are able to improve the margin profile further from here, then that takes us above 20.

Speaker #5: Thank you for taking my question. Sir, apart from Bangalore, any other business development near closure, particularly in Jaipur, Gurgaon, if you can share something?

Speaker #6: That's the general sort of view for me.

Speaker #4: Hi. We are sorry to interrupt.

Speaker #7: And levers to improve the margin—would it be more pricing power, given the brand and given how we are placed in the senior citizen market?

Speaker #1: Sir, your voice is not audible.

Speaker #4: Okay.

Speaker #7: That would be one key lever. Are there any other levers as well there?

Speaker #1: No, sir. We are not able to hear you. Yes, sir. Please continue the Varun line has gone disconnected.

Speaker #6: So, therefore, pricing power is definitely a key lever, and senior living, due to that, enjoys pricing power in senior living. And what we are also intending to do in senior living is increase our product profile into a little bit more higher-end segment.

Speaker #3: he's there. He's there. Just give him a moment. Just give us a moment.

Speaker #1: Okay.

Speaker #3: Sure. Business development front,

Speaker #4: we have active conversations going on in in Jamshedpur. Something in Chennai, something in Bombay Puna. In NCR, I think we should get something done in a small thing in Jamshedpur.

Speaker #6: So, if you see, our pricing has been increasing on a ticket size basis also. We are going up to more premiumized product size. Vikashji had mentioned in his opening, premiumization is the main thing.

Speaker #6: So, adding more premiumized products and entering higher categories of products, the margins should also improve.

Speaker #4: Hopefully, sooner than later. And outside that, in Bangalore, things are in advanced stages of discussion, but they're still in discussions. I don't think we'll have any announcements in the in the coming quarter, but hopefully in the third quarter of this year, we should announce those transactions as well.

Speaker #7: Got it.

Speaker #3: And if I may just add to that, Varun ji, I think the other factor is the operating leverage fully playing out in the long run.

Speaker #3: Because if you are talking about senior living, which is relatively more resilient towards cyclical fluctuations, if that attains a critical mark—something like ₹1,500 crore of pre-sales that you talked about—the kind of operating leverage which will flow through will also give a sustained kind of impact on the margins in the long run.

Speaker #5: Okay. That's it from my side. Thank you.

Speaker #1: Thank you. The next question is from the line of Aditya Banerjee, an individual investor. Please go ahead.

Speaker #4: Oh, yeah. Hi. Thank you for the opportunity. So my so I have few questions on the side of the revenue quality. So my first question is, like, what's the underlying rent rate for bookings?

Speaker #3: And hence, the ROEs as well.

Speaker #7: Understood, sir. Thank you, sir. That's helpful. All the best.

Speaker #4: Is Q1 FY 27's 358 crore closer to steady state, or is the big launch due later in FY 27 to normalize the number?

Speaker #1: Thank you. The next question is from the line of Ankit Shah from White Equity Investment Advisors. Please go ahead.

Speaker #6: Thank you for taking my question. Sir, apart from Bangalore, are there any other business developments nearing closure, particularly in Jaipur or Gurgaon, that you can share?

Speaker #3: So Aditya, one thing so numbers in the deliveries are not driven by launches. So when you're talking about quarters, that's depending on handing over and that's driven on OC.

Speaker #3: For this year, I think we give a delivery schedule and a revenue schedule that's in like he's talking about free sales. I am not launches.

Speaker #7: Hi. We are sorry

Speaker #1: To interrupt, sir—your voice is not audible.

Speaker #3: Are you talking about

Speaker #6: Okay.

Speaker #4: free sales when you said 50 crores for the quarter, or are you talking about revenue revenue in the financial statement?

Speaker #1: No, sir, we are not able to hear you.

Speaker #3: Hello.

Speaker #1: Yes, sir. Please continue. The Varun line has gotten disconnected.

Speaker #3: I think you're talking.

Speaker #4: Revenue in the financial statement.

Speaker #3: You're talking about the financial statement. You're talking about the reported revenue, correct?

Speaker #3: He's there. He's there. Just give him a moment. Just give us a moment.

Speaker #1: Okay.

Speaker #3: Sure. On the business development front, we have active conversations going on in Jamshedpur, something in Chennai, something in Bombay, Pune. In MCR, I think we should get something done—a small thing in Jamshedpur, hopefully sooner rather than later.

Speaker #4: Yeah. Yeah. Yes.

Speaker #3: Sorry. So yeah. So reported revenues in slide 15 of the deck, we have given an indication of how much we expect to report this year.

Speaker #3: And this year is expected round about 2,000 crores of revenue is expected this year. So definitely Q1, as that number was not at all normal.

Speaker #3: And outside that, in Bangalore, things are in advanced stages of discussion, but they're still in discussions. I don't think we'll have any announcements in the coming quarter, but hopefully, in the third quarter of this year, we should announce those transactions as well.

Speaker #3: I would also say quarterly revenues for a real estate company and quarterly profits are not so valuable because our revenues keep fluctuating depending on delivery.

Speaker #3: So two projects, Ashiana, I'm more safely and Ashiana Amara, phase one, total to about 532 crores of revenue. We got those OCs occupancy certificates in the middle of July.

Speaker #6: Okay, that's it from my side. Thank you.

Speaker #1: Thank you. The next question is from the line of Aditya Banerjee, an individual investor. Please go ahead.

Speaker #6: Oh, yeah. Hi. Thank you for the opportunity. So I have a few questions on the side of the revenue quality. So my first question is, what's the underlying rent rate for bookings?

Speaker #3: So they're they're coming in July, August, September. We gave that update. If that occupancy certificate had come in on, let's say, 25th June, we would have been able to recognize that entire revenue in June itself.

Speaker #6: Is Q1 FY27, ₹358 crore, closer to steady state, or is a big launch due later in FY27 to normalize the number?

Speaker #3: But since it came in on 15 July, everything is or the middle of July, not 15th. In the middle of July, everything is coming in the second quarter.

Speaker #3: Now, that kind of fluctuation, I don't have any ability to control in our business. And that will remain. So I my so even Q1 was reflective, and I would say Q2 may not be reflective as well.

Speaker #3: So Aditya, one thing—numbers in the deliveries are not driven by launches. So when you're talking about quarters, that's dependent on handing over, and that's driven by OC.

Speaker #3: We should look at revenues and reported profits on a year-on-year basis. Therefore, in our slide decks, we have given a sense of what kind of annual revenue should we expect.

Speaker #3: For this year, I think we give a delivery schedule and a revenue schedule—that's in, like, he's talking about free sales. He's talking about launches.

Speaker #3: Are you talking about free sales when you said 50 crores for the quarter, or are you talking about revenue—revenue in the financial statement? I think he talked.

Speaker #3: And what we're trying to do is make sure those get met out in the year. That things don't slip from one year to the other.

Speaker #3: And I think that's the endeavor that the company has.

Speaker #6: Oh. When you are in the financial statement.

Speaker #4: Okay. Okay. Got it. Got it. So ma'am, another question is that the the according to my understanding, that the unit sold fell from 407 to 234 year over year.

Speaker #3: You're talking about the financial statement. You're talking about the reported revenue, correct?

Speaker #6: Yeah. Yeah. Yes.

Speaker #3: Sorry. So, yeah. Regarding reported revenues, in slide 15 of the deck, we have given an indication of how much we expect to report this year.

Speaker #4: Even as the ticket sizes rose, is this deliberate, or a genuine volume slowdown?

Speaker #3: Again, difficult to say. It's not deliberate. But also, we are as I had indicated earlier, we are we have some lesser inventory in some markets so that had an impact.

Speaker #3: And this year is expected round about 2,000 crores of revenue is expected this year. So definitely Q1 at that number was not at all normal.

Speaker #3: I would also say quarterly revenues for a real estate company, and quarterly profits, are not so valuable because our revenues keep fluctuating depending on delivery.

Speaker #3: So in the launch happened in July. So I clarified earlier by a 31st July our overall pre-sales for the year was 859 crores. So and we have guided for about 2,200 crores this year.

Speaker #3: So, two projects—Ashiana Anmol Phase Three and Ashiana Amara Phase One—total to about ₹532 crores of revenue. We got those OCs (Occupancy Certificates) in the middle of July.

Speaker #3: And I think we are on track to meet that guidance as of now. As I said, H1 to exit probably 1,050, 1,100 crores of pre-sales.

Speaker #3: So things are going all right.

Speaker #3: So they're coming in July, August, September. We gave that update. If that occupancy certificate had come in on, let's say, 25th June, we would have been able to recognize that entire revenue in June itself.

Speaker #4: Okay. Okay. Okay. Sir, and on the portfolio mix, side, the ongoing portfolio mix has shifted to LE10 Vilium Homes at 36% versus senior living at just 23%.

Speaker #3: But since it came in on 15th July—everything is, or rather, the middle of July, not the 15th, in the middle of July—everything is coming in the second quarter.

Speaker #4: But, like, given Ashiana's brand is built on senior living leadership, is this a deliberate strategic pivot toward higher ticket premium homes?

Speaker #3: Now, that kind of fluctuation—I don't have any ability to control that in our business, and that will remain. So my Q1 was reflective, and I would say Q2 may not be reflective as well.

Speaker #3: No. Actually, if you look at our company, we even though we were known for senior living, senior living was probably 10% of our business five years ago.

Speaker #3: We should look at revenues and reported profits on a year-on-year basis. Therefore, in our slide decks, we have given a sense of what kind of annual revenue we should expect.

Speaker #3: Okay. Let's say FY 22 or 23 would have been 10% of our business, which has become 23. If you look at deliberate pivot, I would again, on the deck, I would urge you to go to slide number, I think, 20 slide number 19, which is our land available for future development.

Speaker #3: And what we're trying to do is make sure those get met out in the year, that things don't slip from one year to the other.

Speaker #3: And I think that's the endeavor that the company has.

Speaker #3: And if you see the entire 5 million square foot is senior living. Bangalore, which we I just spoke about on the call, which was which will get added to this land available for future development, hopefully soon.

Speaker #6: Okay, okay, got it, got it. So, man, another question is that, according to my understanding, the units sold fell from 407 to 234 year over year.

Speaker #3: Is also senior living. So a large part of the pivot is happening towards senior living. Even in slide 18 of future projects, which is phases of existing developments 40, 45 about 40, 45% of that is also senior living.

Speaker #6: Even as ticket sizes rose, is this deliberate, or is it a genuine volume slowdown?

Speaker #3: Again, difficult to say. It's not deliberate. But also, as I had indicated earlier, we have some lesser inventory in some markets.

Speaker #3: So this mix will change decisively in favor of senior living in the next two to three years.

Speaker #3: So that had an impact on the launch that happened in July. As I clarified earlier, by 31st July, our overall pre-sales for the year were ₹859 crores.

Speaker #4: Okay. Okay. Sir, and I have this last question that the ticket-centric homes is concentrated almost entirely in Gurugram. So how are you thinking about the geographic concentration risk?

Speaker #3: So, we have guided for about ₹2,200 crores this year, and I think we are on track to meet that guidance as of now.

Speaker #3: As I said, H1, we should exit at probably ₹1,050–1,100 crores of pre-sales. So things are going all right.

Speaker #4: There, like, and versus diversifying to other cities?

Speaker #3: So we have done kit-centric homes in Jaipur as well and Bhiwadi as well. Then we have done Gurgaon. Kit-centric homes, as a concept, we are still sort of fine-tuning the recipe if that's the way to put it, where we are learning how to differentiate the project the concept better as we go along.

Speaker #6: Okay. Okay. Okay. Sir, on the portfolio mix side, the ongoing portfolio mix has shifted to elite and premium homes at 36%, versus senior living at just 23%.

Speaker #6: So, given that Ashiana's brand is built on senior living leadership, is this a deliberate strategic pivot toward higher-ticket, premium homes?

Speaker #3: Like, the senior living concept, we have differentiated. We have understood the model. We are in the zone of scaling it up. Senior living are first two really, really differentiated kit-centric homes projects are in Gurgaon.

Speaker #3: No, actually, if you look at our company, even though we were known for senior living, senior living was probably 10% of our business five years ago.

Speaker #3: Okay. Let's say FY 22 or 23 would have been 10% of our business, which has become 23. If you look at deliberate pivot, I would again on the deck, I would urge you to go to slide number, I think, 20 slide number 19, which is our land available for future development.

Speaker #3: One in Amara. We've just delivered phase one. We Arohom, we have just launched. I think it will take us a few more years, I would say, two, three more years to sort of figure out kit-centric homes better.

Speaker #3: And once we have figured it out better, I think we'll take the path of really scaling that up and and taking it to more and more cities as we go forward.

Speaker #3: And if you see, the entire 5 million square feet is senior living. Bangalore, which we had just spoken about on the call, will get added to this land available for future development, hopefully soon.

Speaker #4: Okay. Okay, sir. Thank you so much.

Speaker #1: Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star and one on your touchstone telephone. Ladies and gentlemen, if you wish to ask a question, please press star and one on your touchstone telephone.

Speaker #3: It's also senior living. So a large part of the pivot is happening towards senior living. Even in slide 18 of future projects, which is phases of existing developments, about 40–45% of that is also senior living.

Speaker #1: The next question is from the line of Khurshid Solanki, an individual investor. Please go ahead.

Speaker #3: So, this mix will change decisively in favor of senior living over the next two to three years.

Speaker #2: Hello. I'm Amaripur.

Speaker #3: Yes.

Speaker #2: Yes. Yes. So I wanted to ask about the Vadga Pune acquisition. Can you walk us through the playback assumptions on the 1,800 crore Vadga project?

Speaker #6: Okay. Okay. Okay. Sir, I have this last question: ticket-centric homes are concentrated almost entirely in Gurugram. So, how are you thinking about the geographic concentration risk?

Speaker #2: What type of effort and absorption pace are you underwriting currently?

Speaker #6: They're like, versus diversifying to other cities.

Speaker #3: I couldn't understand you fully, Khurshid. You were the sound was a little muffled. Can you repeat that, please, for us?

Speaker #3: So, we have done kit-centric homes in Jaipur as well, and Bhiwadi as well. Then we have done Gurugram. Kit-centric homes as a concept we are still sort of fine-tuning—the recipes, to put it that way—where we are learning how to differentiate the concept better as we go along.

Speaker #2: Hello. I'm audible now?

Speaker #3: Yes, you are.

Speaker #2: Yeah. So

Speaker #1: Sorry to interrupt, Khurshid. Your voice is not audible.

Speaker #2: So can you hello?

Speaker #3: Yeah. Khurshid, I will I will say what I understood. Please say yes or no if I understood the question correctly. You said the new Vadga parcel that we have taken up, you were asking what are our assumptions to be able to do 1,800 crores of revenue and what kind of absorption annual absorption do we expect in that project.

Speaker #3: Like, the senior living concept—we have differentiated, we have understood the model, we are in the zone of scaling it up. Senior living, our first two really, really differentiated, kit-centric homes projects are in Gurugram.

Speaker #3: One in Amara, we've just delivered phase one. At Aroham, we have just launched. I think it will take us a few more years—I would say two, three more years—to sort of figure out kit-centric homes better.

Speaker #3: Is my understanding correct?

Speaker #2: Yes. Yes. Right. Right, sir.

Speaker #3: Okay. So it's a 20 lakh square foot project. So we are estimating about 9 to 10 thousand rupees of revenue per square foot on saleable area.

Speaker #3: And once we have figured it out better, I think we'll take the path of really scaling that up and taking it to more and more cities as we go forward.

Speaker #3: So that translates into about 1,800 to 2,000 crores. So that is our estimated at underwriting. And yeah. And we expect to sell about 2 lakh square foot a year.

Speaker #6: Okay. Okay, sir. Thank you so much.

Speaker #2: Thank you. Ladies and gentlemen, as a reminder, if you wish to ask a question, please press star and one on your touch-tone telephone. Ladies and gentlemen, if you wish to ask a question, please press star and one on your touch-tone telephone.

Speaker #3: So that takes about a 10-year development time frame. So it's a little longer development time frame, but we we hope to enjoy good margins here.

Speaker #3: So that should take care of overall returns from that perspective. And if things go better than expected, then I would say we could do probably 3 lakh square foot a year.

Speaker #2: The next question is from the line of Khurshid Solanki, an individual investor. Please go ahead.

Speaker #4: Hello. I'm Amaripur.

Speaker #3: And wrap up the project in about 7 or 8 years.

Speaker #3: Yes.

Speaker #2: Okay. Got it. And another thing, why is the SCB funding for this land parcel specifically? While internal cash approvals given are 785 crore net cash positioning at FY 26.

Speaker #4: Hi. Yeah, so I wanted to ask about the Vadga Pune acquisition. Can you walk us through the payback assumptions on the ₹1,800 crore Vadga project?

Speaker #4: What type of profit and absorption pace are you underwriting currently?

Speaker #3: So the NCD financing was actually done by the landlords itself. The landlords wanted to have a a partial revenue share position in the in the project.

Speaker #3: I couldn't understand you fully, Khurshid. The sound was a little muffled. Can you repeat that, please, for us?

Speaker #3: They didn't want to sell it fully. So they but I but they were keeping a very minority stake overall. So therefore, in our view, we wanted to take the title of the full land.

Speaker #4: Hello. Am I audible now?

Speaker #3: Yes, you are.

Speaker #4: Yeah. So

Speaker #2: Sorry to interrupt, Khurshid. Your voice is not audible.

Speaker #4: So can you hello?

Speaker #3: We didn't want to do a part JDA. So we said we'll do a a full acquisition and we'll issue you dementures to basically mimic that.

Speaker #3: Yeah, Khurshid, I will say what I understood. Please say yes or no if I have understood the question correctly. You said, for the new Vadga parcel that we have taken up, you were asking what are our assumptions to be able to do ₹1,800 crores of revenue, and what kind of annual absorption do we expect in that project?

Speaker #3: So the basically they wanted to keep a 25% equity. So they've contributed 25% of the purchase value back to the dementures. And and we had agreed on a 6% revenue share for the remaining so they're getting 6% revenue share, which actually to structure the transaction and get it.

Speaker #3: Is my understanding correct? Was I?

Speaker #4: Yes. Yes. Right. Right, sir.

Speaker #3: Okay. So it's a 20 lakh square foot project. We are estimating about ₹9,000 to ₹10,000 of revenue per square foot on saleable area.

Speaker #2: Okay. And what is the expected launch time for this?

Speaker #3: About 18 months. So about yeah. So let's say this H2 of next financial year is when we expect to launch this.

Speaker #3: So that translates into about ₹1,800 to ₹2,000 crores. So that is our estimate at underwriting. And, yeah, we expect to sell about 2 lakh square feet a year.

Speaker #2: Okay, sir. Thank you.

Speaker #3: Thank you, Khurshid.

Speaker #1: Thank you. The next question is from the line of Himanshu from Stairport. Please go ahead.

Speaker #3: So that takes about a 10-year development time frame. So it's a little longer development time frame, but we hope to enjoy good margins here.

Speaker #4: A small query. How see, on the 5/6 projects, what we are trying to acquire, what type of capex we are expecting? And in FY 27 or let's say FY 27, 28 on the projects which are very near to completion.

Speaker #3: So that should take care of overall returns from that perspective. And if things go better than expected, then I would say we could probably do 3 lakh square feet a year.

Speaker #3: And wrap up the project in about seven or eight years.

Speaker #4: Okay, got it. And another thing, why is the entity funding for this land parcel specifically, while internal cash approvals given are ₹785 crore net cash positioning at FY26?

Speaker #3: So near to completion, are you asking?

Speaker #4: Near to completion means or near to acquisition. Okay. We those deals go through.

Speaker #3: Yeah. So we have a total budget of deploying about 800 crores. In this in this financial year, including the about 180 that got deployed in the last quarter.

Speaker #3: So the NCD financing was actually done by the landlords themselves. The landlords wanted to have a partial revenue share position in the project.

Speaker #3: So we are looking to deploy 800 for the year total.

Speaker #3: They didn't want to sell it fully. So they—but I—but they were keeping a very minority stake overall. So, therefore, in our view, we wanted to take the title of the full land.

Speaker #4: And this includes all the deals we are talking right now. Means or there can be something which will.

Speaker #3: Yeah. Yeah. It includes it includes the deal we have done in the last quarter and all the deals that we are in active conversations with.

Speaker #3: And serious conversations with.

Speaker #3: We didn't want to do a part JDA, so we said we'll do a full acquisition and we'll issue you debentures to basically mimic that.

Speaker #4: And once more thing, in some of the projects historically, IFC also used to come, okay, or we had an agreement or IFC. So is there those agreements with IFC only for residential means can they also be partner in senior living or they will be always on the other side and those agreements still continues or it is over?

Speaker #3: So basically, they wanted to keep a 25% equity. So they've contributed 25% of the purchase value back to the debentures, and we've agreed on a 6% revenue share for the remaining. So they're getting a 6% revenue share, which actually is to structure the transaction in.

Speaker #3: So they are partner in senior living. They're actually a partner in Ashana Vatsalya there. They have provided a capital there as well. Their first platform we had fully exhausted.

Speaker #4: Okay. And what is the expected launch time for this?

Speaker #3: About 18 months. So, about, yeah. So let's say this — H2 of next financial year — is when we expect to launch this.

Speaker #3: In the second platform, we were only able to deploy 100-odd crores into Aaroham. But the platform timeline has been over. We have not been able to deploy the rest.

Speaker #4: Okay, sir. Thank you.

Speaker #3: Thank you, Khurshid.

Speaker #3: Just because of some by the time we timed some of the projects and what their criteria for investment in these other cities outside of Gurgaon were, we were not able to meet on the ticket sizes.

Speaker #2: Thank you. The next question is from the line of Himanshu from Stairford. Please go ahead.

Speaker #5: A small query. So, on the five or six projects that we are trying to acquire, what type of capex are we expecting? And in FY27 or, let's say, FY27–28, for the projects which are very near to completion.

Speaker #3: So they have a upper cap of ticket size that they can finance over unit. And Gurgaon, we had some relaxations in place. But like in Chennai, Aranya, or in Tatwam in Panvel, we were not which were there where they could have deployed.

Speaker #3: So, how near to completion are you?

Speaker #5: "Near to completion" means, or near to acquisition. Okay. Those deals go through.

Speaker #3: We were not able to meet their ticket size requirements. So unfortunately, because of that, we were not able to go through.

Speaker #3: Yeah. So, we have a total budget of deploying about ₹800 crores in this financial year, including the approximately ₹180 crores that got deployed in the last quarter.

Speaker #4: Okay. Now, there are no more let's say funds or agreements with them.

Speaker #3: There is no active agreement with them. We are discussing with them how we can work together in the future. It's a partnership, I think, both of us have enjoyed.

Speaker #3: So, we're looking to deploy 800 for the year in total.

Speaker #5: And this includes all the deals we are talking about right now, or could there be something else which will—

Speaker #3: We're open to future deals. We we enjoy we enjoy IFC's the kind of capital that IFC brings to the table. I think it works really well for an organization like us.

Speaker #3: Yeah, yeah. It includes the deal we have done in the last quarter, and all the deals that we are in active conversations with.

Speaker #3: And I think they have also enjoyed good returns on the projects that we have been able to do. So we are actively discussing if we can do further capital development together.

Speaker #3: And serious conversations with.

Speaker #5: And one more thing — in some of the projects historically, IFC also used to come in, okay, or we had an agreement with IFC. So are those agreements with IFC only for residential, or can they also be a partner in senior living? Or will they always be on the other side? And do those agreements still continue, or are they over?

Speaker #4: Okay. Thank you from my side.

Speaker #3: Thank you.

Speaker #1: Thank you. The next question is from the line of Nikhil and individual investor. Please go ahead.

Speaker #4: Yeah. Thank you. So just two questions. First, that you said that you're trying to make the business less cyclical. So just wanted to have a broad understanding that what could be the low and high of pre-sales year on year?

Speaker #3: So they are a partner in senior living. They're actually a partner in Ashiana Vatsalya, where they have provided capital there as well. Their first platform we had fully exhausted.

Speaker #3: In the second platform, we were only able to deploy around 100-odd crores into Aaroham. But the platform timeline is over, and we have not been able to deploy the rest.

Speaker #4: Just a broad understanding if you could. And second is, in case of multiple projects, how does operating leverage work? I got a sense that if it's a big project, then it will work.

Speaker #3: Just because of some—by the time we timed some of the projects, and what their criteria for investment in these other cities outside of Gurgaon were, we were not able to meet on the ticket sizes.

Speaker #4: But you are across so many jobs of use. How would operating leverage work? That's all.

Speaker #3: Nikhil, so so two things. One, I don't know what the high and the low of a cycle would be. I think at some point in time, couple of years back, we were looking at this number.

Speaker #3: So, they have an upper cap on the ticket size that they can finance per unit. In Gurgaon, we had some relaxations in place, but like in Chennai, Aranya, or in Tatwam in Panvel, we were not—which were there where they could have deployed.

Speaker #3: And the idea was to look at the higher top and higher bottom, what we typically call in case of a capital market cycle as well.

Speaker #3: We were not able to meet their ticket size requirements, so unfortunately, because of that, we were not able to go through.

Speaker #3: But then that was a while ago. We looked at a number of something like 10 lakh square foot. That that is a minimum that we need to kind of break even.

Speaker #3: But then after that, our product portfolio has changed. The component of senior living has been increasing. So I think we need to take a fresh look as to what is the kind of number that we that we look at the minimum.

Speaker #5: Okay. Now, there are no more, let's say, funds or agreements with them.

Speaker #3: There is no active agreement with them. We are discussing with them how we can work together in the future. It’s a partnership I think both of us have enjoyed.

Speaker #3: Number in any kind of cycle. And the maximum number we can go to. So so Nikhil, I the intent has become that how do we get to a place where we can make 15% ROEs floor in the organization.

Speaker #3: We're open to future deals. We enjoy IFC's—the kind of capital that IFC brings to the table. I think it works very well for an organization like us.

Speaker #3: I think at first it was an aspiration to get there. We got there on an economic basis two, three years ago. We on a reported basis last year.

Speaker #3: And I think they have also enjoyed good returns on the projects that we have been able to do. So, we are actively discussing if we can do further capital development.

Speaker #3: I think what we are looking to do is create us a a floor in the business of 15% return on equity. So and therefore we are trying to get more structural products in the in the portfolio where we think senior living has got structural tail tailwinds behind it.

Speaker #5: Okay, thank you from my side.

Speaker #3: Thank you.

Speaker #2: Thank you. The next question is from the line of Nikhil, an individual investor. Please go ahead.

Speaker #4: Yeah, thank you. So, just two questions. First, you said that you're trying to make the business less cyclical. So I just wanted to have a broad understanding of what could be the low and high of pre-sales year-on-year?

Speaker #3: As India's demographics change and I would say also the first real private sector children's of liberalization start retiring. Economic liberalization of '91. And I think that's what we are playing at.

Speaker #4: Just a broad understanding, if you could. And second, in the case of multiple projects, how does operating leverage work? I got a sense that if it is a big project, then it will work, but you are across so many geographies.

Speaker #3: I I would be very hard to give a bottom or a top. And in terms of operating leverage, I think operating leverage plays out in two ways.

Speaker #4: How would operating leverage work? That's all.

Speaker #3: One, at the company level, I think Vikash Ji, when he was talking about operating leverage, he was talking about at the company level, there are a lot of fixed costs at the company level.

Speaker #3: Nikhil, so two things. One, I don't know what the high and the low of a cycle would be. I think at some point in time, a couple of years back, we were looking at this number.

Speaker #3: The second way, it also plays out is at the location level. If you see for any developer they have a lot of location strength, location brand.

Speaker #3: And the idea was to look at the higher top and higher bottom, which we typically call, in the case of a capital market cycle as well.

Speaker #3: So for us also as we do more products in a location, our marketing costs fall. So let's say Chennai, it used to be around 8% in Ashana Shubham and we are now down to about 4 4 to 5% of sales and marketing costs.

Speaker #3: But then that was a while ago. We looked at a number of something like 1 million square feet. That is the minimum that we need to kind of break even.

Speaker #3: But then after that, our product portfolio has changed. The component of senior living has been increasing. So I think we need to take a fresh look as to what is the kind of number that we that we look at the minimum number in any kind of cycle and the maximum number we can go to.

Speaker #3: So as we get more steadier in a location, those things also come down. And then larger projects also help where you know approvals are one time, designing is one time.

Speaker #3: So, Nikhil, the intent has become: how do we get to a place where we can make 15% ROEs a floor in the organization?

Speaker #3: As the phases get delivered later, we should increase capture some value that we have created in the product through increasing prices. So there are three sort of levers, different levers playing out at different points of time.

Speaker #3: I think at first it was an aspiration to get there. We got there on an economic basis. Two, three years ago, we, on a reported basis last year—I think what we are looking to do is create a floor in the business of 15% return on equity.

Speaker #3: That's that's that's what's happening.

Speaker #4: Yes. Okay. Thank you. Thank you very much.

Speaker #3: Thank you.

Speaker #1: Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one on your touchstone telephone. Ladies and gentlemen, if you wish to ask a question, please press star and one on your touchstone telephone.

Speaker #3: So, and therefore, we are trying to get more structural products in the portfolio, where we think senior living has got structural tailwinds behind it.

Speaker #1: The next question is from the line of Varun Yadav, an individual investor. Please go ahead.

Speaker #3: As India's demographics change, and I would say also the first real private-sector children of liberalization start retiring—economic liberalization of '91—and I think that's what we are playing at.

Speaker #4: Hello?

Speaker #3: Yeah, Varun?

Speaker #4: Sir, मेरे को ये जाना था कि अनमोल और आपका अनमोल फेज थ्री और हमारा फेज वन में मतलब अप्रोक्सिमेटली नेट मार्जिनस कितना है सर?

Speaker #3: I am not sure. But they are not individual project to individual margins होंगे. But low margin है दोनों. अनमोल फेज थ्री भी लोअर मार्जिन है.

Speaker #3: It would be very hard to give a bottom or a top. And in terms of operating leverage, I think operating leverage plays out in two ways.

Speaker #3: हमारा फेज वन भी रिलेटिवली लोअर मार्जिन है because हमारा हमारा as a product project has very good margins. But they are phase three onwards margins are substantially better than हमारा.

Speaker #3: One, at the company level, I think Vikasji, when he was talking about operating leverage, was referring to the fact that at the company level there are a lot of fixed costs.

Speaker #3: The second way it also plays out is at the location level. If you see, for any developer, they have a lot of location strength, location brand.

Speaker #3: And would be hard to comment a net margin. I don't know how to define a project level net margin. But gross profit margin blended between अनमोल and हमारा should be in the mid 20s.

Speaker #3: So, for us also, as we do more products in a location, our marketing costs fall. So, let's say Chennai—it used to be around 8% in Ashiana Shubham, and we are now down to about 4% to 5% of sales and marketing costs.

Speaker #3: That is pre sale selling cost and general administrative. We should be in the mid 20s. I don't think we are in the 30 level also that we expect to get.

Speaker #3: So, as we get more steady in a location, those things also come down. And then larger projects also help, where you know, approvals are one-time, designing is one-time.

Speaker #3: Blended across both those projects we should be in the mid 20s.

Speaker #4: और सर सेकंड क्वेश्चन ये है कि.

Speaker #3: Sorry, अनमोल थ्री में what we can what we can tell you is कि हमारा जो margin है gradually phase over phases improve हुआ. Q1 के मुकाबले Q2 Q3 में थोड़ा pricing better हुआ.

Speaker #3: As the phases get delivered later, we should capture some of the value that we have created in the product by increasing prices. So, there are three different levers, with different levers playing out at different points of time.

Speaker #3: Improve हुआ but still they were at a. Phase one, two, three. Phase one, two, three I'm talking about अनमोल. तो phase three में margin उसके पहले वाले quarter पहले वाले phases से better था.

Speaker #3: But still overall lower था.

Speaker #3: That's that's that's what's happening.

Speaker #4: Yeah. Okay. Thank you. Thank you very much.

Speaker #4: Yes. और जैसे अब ये phase one की हमारा की position आ गया है तो इसमें जैसे हमारा phase one four और phase five में अभी माल बचा हुआ है.

Speaker #3: Thank you.

Speaker #2: Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one on your touch-tone telephone. Ladies and gentlemen, if you wish to ask a question, please press star and one on your touch-tone telephone.

Speaker #4: तो उसमें फर्क पड़ेगा कुछ?

Speaker #3: In what way?

Speaker #4: मतलब selling hard हो जाएगा. जैसे phase one में अगर resale आ गया तो?

Speaker #2: The next question is from the line of Varun Yadav, an individual investor. Please go ahead.

Speaker #3: लेकिन उसके दूसरा value भी है कि phase one ready है तो हमारे actually visits बढ़ गए हैं. हमारा club house ready है दिखाने को.

Speaker #5: Hello.

Speaker #3: Yeah, Varun.

Speaker #3: Landscape है दिखाने को. हमारा learning hub है दिखाने को. तो जो हम पहले सिर्फ plan से बेच रहे थे, model से बेच रहे थे, अब वो reality से बेच रहे हैं.

Speaker #5: I thought, Mergu, जाना था कि अनमोल और आपका अनमोल पेज थ्री और हमारा पेज वन में मतलब, approximately, net margins कितना है, सर?

Speaker #3: दूसरी चीज अब हमारे यहां end user ज्यादा है क्योंकि हमने गुड़गांव market में resale without registry allow नहीं करी थी. अब without possession allow नहीं करा था.

Speaker #3: I am not sure, but they are not project individual margins होंगे, but low margin है दोनों। अनमोल, पेज थ्री भी lower margin है, हमारा फेस वन भी relatively lower margin है, because हमारा as a product, project has very good margins, but they are phase three onwards. Margins are substantially better than हमारा.

Speaker #3: तो शुरू में ही जो actually investors थे जिनको resale में बेचना था वो कम ही आए. कुछ आए but कम आए. तो overall resale का stock भी as a proportion of phase one should be not more than 20% I would say as compared to where you know 80-90% of गुड़गांव sales by other developers used to be traded later.

Speaker #3: It would be hard to comment on net margin; I don't know how to define a project-level net margin. But gross profit margin, blended between Unmarg and Hamara, should be in the mid-20s.

Speaker #3: तो मुझे उतना pressure नहीं दिखता actually.

Speaker #4: Okay. Thanks sir. Yes sir.

Speaker #1: Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one on your touchstone telephone. Ladies and gentlemen, that was the last question.

Speaker #3: That is pre-sales, selling cost, and general administrative. We should be in the mid-20s. I don't think we are at the 30 level, also that we expect to get.

Speaker #1: I would now like to hand the conference over to the management for closing comments.

Speaker #3: Blended across both those projects, we should be in the mid-20s.

Speaker #5: Awesome. Second question.

Speaker #3: Thank you all for participating in this earnings conference call. We remain focused on timely handovers in FY27 and on building long-term value through disciplined execution and customer centering development.

Speaker #3: Sorry. Unmole, three में what we can tell you is कि हमारा जो margin है, gradually, phase over phases, improve हुआ. Q1 के मुकाबले Q2, Q3 में थोड़ा pricing better हुआ.

Speaker #3: Improve हुआ but still they were at a. Phase one, two, three. Phase one, two, three I'm talking about unmold. तो phase three में margin उसके पहले वाले quarter पहले वाले phases से better था.

Speaker #3: If you have any further questions or would like to know more about the company, please feel free to reach out to us directly. Or you can alternatively reach out to our investor relations managers at Vellorum Advisors.

Speaker #3: But still overall lower था.

Speaker #3: The investor presentation and relevant materials are available on our website and we will be happy to provide any further clarifications you may need. Wishing you all good health and a productive year ahead.

Speaker #5: Yes. और जैसे अब ये Phase One की हमारा की position आ गया है, तो उसमें जैसे हमारा Phase One Four और Phase Five में अभी माल बचा हुआ है.

Speaker #3: Thank you.

Speaker #5: तो उसमें फर्क पड़ेगा कुछ?

Speaker #3: In what way?

Speaker #5: मतलब selling hard हो जाएगा। जैसे phase one में अगर resale आ गया तो?

Speaker #3: लेकिन उसका दूसरा value भी है कि Phase One ready है, तो हमारे actually visits बढ़ गए लैंडस्केप में दिखाने को। हमारा learning hub है दिखाने को।

Speaker #3: तो जो हम पहले सिर्फ plan पे बेच रहे थे, model से बेच रहे थे, हम वो reality से बेच रहे हैं। दूसरी चीज़, अब हमारे यहाँ end user ज़्यादा है क्योंकि हमने गुड़गांव market में resale without registry allow नहीं करी थी या without possession allow नहीं करा था।

Speaker #3: तो शुरू में ही जो actually investors थे, जिनको resale में बेचना था, वो कम आए। कुछ आए, but कम आए। तो overall resale का stock भी as a proportion of phase one, should be not more than 20%, I would say, as compared to where, you know, 80-90% of गुड़गांव sales में other developers used to be traded later.

Speaker #3: तो मुझे उतना pressure नहीं दिखता, actually.

Speaker #5: Okay. Thanks sir.

Speaker #3: Thank you.

Speaker #5: That's all. Okay.

Speaker #2: Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one on your touchtone telephone. Ladies and gentlemen, that was the last question.

Speaker #2: I would now like to hand the conference over to management for closing comments.

Speaker #3: Thank you all for participating in this earnings conference call. We remain focused on timely handovers in FY27 and on building long-term value through disciplined execution and customer-centric development.

Speaker #3: If you have any further questions or would like to know more about the company, please feel free to reach out to us directly, or you can alternatively reach out to our investor relations managers at Vellorum Advisors.

Speaker #3: The investor presentation and relevant materials are available on our website, and we will be happy to provide any further clarifications you may need. Wishing you all good health and a productive year ahead.

Speaker #3: Thank you.

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