Q1 2027 Aditya Birla Real Estate Ltd Earnings Call

Speaker #1: Ladies and gentlemen, good day and welcome to the Aditya Birla Real Estate Q1 FY27 earnings conference call, hosted by Motilal Oswal Financial Services Limited.

Operator: Ladies and gentlemen, good day and welcome to the Aditya Birla Real Estate Q1 FY27 earnings conference call, hosted by Motilal Oswal Financial Services Limited. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. 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 call is being recorded. I now hand the conference over to Mr. Harsh Pathak from Motilal Oswal. Thank you, and over to you, sir.

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 after the presentation concludes.

Speaker #1: 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 call is being recorded.

Speaker #1: I now hand the conference over to Mr. Harsh Patel from Motilal Roswell. Thank you, and over to you, sir.

Speaker #2: Yes, thanks, Shruti. Good morning, everyone. On behalf of Motilal Rosewell Financial Services, I welcome you all to the Q1 FY27 earnings conference call of Aditya Birla Real Estate.

Harsh Pathak: Yes. Thanks, Shruti. Good morning, everyone. On behalf of Motilal Oswal Financial Services, I welcome you all to the Q1 FY27 earnings conference call of Aditya Birla Real Estate. We thank the management for giving us the opportunity to host this conf call. From the management we have with us today, Mr. AK Dalmiah, MD, Aditya Birla Real Estate, Mr. K. T. Jithendran, MD and CEO, Birla Estates, and Mr. Keyur Shah, CFO, Aditya Birla Real Estate. I now hand over the call to the management for opening remarks. Over to you, gentlemen.

Speaker #2: We thank the management for giving us the opportunity to host this call. From the management team, we have with us today Mr. Aakhil Dalmia, MD, Aditya Birla Real Estate; Mr. K.T. Jitendran, MD and CEO, Birla Estates; and Mr. Keyur Shah, CFO, Aditya Birla Real Estate.

Speaker #2: I now hand over the call to the management for opening remarks. Over to you, gentlemen.

Speaker #3: Thank you, Harsh. Good morning, everyone, and thank you for joining us for our Q1 2027 earnings call. India continued to demonstrate strong macroeconomic momentum in the quarter ended June 2027, building on the 7.6% real GDP growth recorded in FY 2026-27.

AK Dalmiah: Thank you, Harsh. Good morning, everyone, and thank you for joining us, our Q1 FY27 earning call. India continued to demonstrate strong macroeconomics momentum in the quarter ended June 2026, building on the 7.6% real GDP growth recorded in FY25, 2026. While inflation began to firm up with headline CPI rising to 4.38% in June 2026, the broader economic environment remained supportive of sustained growth. The real estate sector continued to benefit from this backdrop and even as the composition of investors meaningfully during the quarter. Despite external headwinds rising from geopolitical tensions, resilient domestic demand with steady investment activity continued to anchor India's growth outlook. From an industry perspective, the strongest demand growth remained concentrated in high-value housing, employment-led corridors, infrastructure-driven micro markets. MMR continued to lead the market in terms of volumes, while sales moderated in Pune and NCR.

Speaker #3: While inflation began to firm up, with headline CPI rising to 4.38% in June 2026, the broader economic environment remained supportive of sustained growth. The real estate sector continued to benefit from this backdrop, even as the composition of investors changed meaningfully during the quarter.

Speaker #3: Despite external headwinds arising from geopolitical tensions, resilient domestic demand with steady investment activity continued to anchor India's growth outlook. From an industry perspective, the strongest demand growth remained concentrated in high-value housing, employment-led corridors, and infrastructure-driven micro markets.

Speaker #3: MMR continued to lead the market in terms of volumes, while sales were moderate in Pune and NCR. Bengaluru stood out, delivering healthy absorption alongside an increase in supply.

AK Dalmiah: Bengaluru stood out, delivering healthy absorption alongside an increase in supply. The commercial real estate market continued its strong performance, with the office segment recording its strongest quarterly gross leasing performance, led by robust demand from global capability centers and flexible workspace operators. Overall, the sector's two key growth engines are now operating at distinctly different speeds. Residential demand is becoming increasingly selective, with a greater emphasis on location, product quality, and price discipline. While commercial office demands continue to reach new heights, supported by structural occupier demand from global corporates. Against this backdrop, we have sustained strong business momentum in Q1 FY27. Collections remained robust at INR 713 crores, registering 31% of Y-o-Y increase. Overall, INR 445 crore in Q1 FY26. This performance reflects strong collection efficiency, disciplined execution, and continued customer confidence across our projects. Birla Taranya delivered a special strong start.

Speaker #3: The commercial real estate market continued with strong performance, with the office segment recording its strongest quarterly gross leasing performance, led by robust demand from global capability centers and flexible workspace operators.

Speaker #3: Overall, the sector's two key growth engines are now operating at distinctly different speeds. The initial demand is becoming increasingly selective, with a greater emphasis on location, product quality, and price discipline, while commercial office demands continue to reach new heights, supported by structural occupiers' demands from global corporates.

Speaker #3: Against this backdrop, we have sustained strong business momentum in Q1 FY27. Collections remained robust at Rs 713 crore, registering a 31% year-on-year increase overall.

Speaker #3: ₹445 crore in Q1 FY26. This proportion reflects strong collection efficiency, disciplined execution, and continued customer confidence across our projects. Birla Taranya delivered an especially strong start.

AK Dalmiah: Within just first three months of receiving RERA approval, the projects achieved booking value of over INR 1,000 crores, demonstrating strong customers acceptance and robust underlying demand. This performance further strengthen Birla Estate presence in MMR market and validates our strategy of creating premium, thoughtfully designed residential community in high potential locations. Our sustenance sales in Q1 FY27 remain well diversified across regions, demonstrating the depth of resilience in our portfolio. In MMR, Birla Taranya, in the Thane micro market and plotted development at Birla Mridha in Bhayandar, together delivered a strong sustenance booking value of INR 150 crores following their respective launches in previous quarters. Pune contributed INR 119 crore in booking value, supported by continued momentum at Birla Punya Phase 2 and Birla Aavam. In Bengaluru, the response for Birla Trimaya Phase 4 has been particularly encouraging with 91% of the inventory launched within the last two quarters already sold.

Speaker #3: Within just the first three months of receiving RERA approval, the project achieved a booking value of over ₹1,000 crore, strongly demonstrating strong customer acceptance and robust underlying demand.

Speaker #3: This performance further strengthened Birla Estates' presence in the MMR market and validates our strategy of creating premium, thoughtfully designed residential communities in high-potential locations. Our sustenance sales in Q1 FY27 remained well-diversified across regions, demonstrating the depth and resilience of our portfolio.

Speaker #3: In MMR, Birla Taranya in the Thane micromarket and the plotted development at Birla Merida in Boisar together delivered a strong sustenance booking value of ₹150 crore, following their respective launches in previous quarters.

Speaker #3: Pune contributed Rs 119 crore in booking value, supported by continued momentum at Birla Pune Phase 2 and Birla A1. In Bengaluru, the response for Birla Taramya Phase 4 has been particularly encouraging, with 91% of the inventory launched within the last two quarters already sold.

Speaker #3: This strong absorption reinforced our confidence in Bengaluru as a key growth market for the business. We also continue to strengthen our position in the development segment.

AK Dalmiah: This strong absorption reinforce our confidence in Bengaluru as a key growth market for the business. We also continue to strengthen our position in redevelopment segment with the recent announcement of another redevelopment project in Vashi, Navi Mumbai, carrying a potential GDV of approximately INR 2,600 crores. With this addition, our total residential redevelopment portfolio has increased to approximately INR 4,300 crores. This represents another important step in scaling a business vertical that offers significant potential across high demand MMR micro market, supported by trusted partnership and disciplined capital allocation. Our commitment to the core real estate business further strengthened by the successful completion of the divestment of Century Pulp and Paper to ITC.

Speaker #3: With the recent announcement of another redevelopment project in Vashi, Navi Mumbai, carrying a potential GDV of approximately Rs. 2,600 crores, our total residential redevelopment portfolio has increased to approximately Rs.

Speaker #3: ₹4,300 crore; this represents another important step in scaling a business vertical that offers significant potential across the high-demand MMR micro market, supported by trusted partnerships and disciplined capital allocation.

Speaker #3: Our commitment to the core real estate business was further strengthened by the successful completion of the demerger of Century Pulp & Paper to ITC. This transaction has enabled us to significantly reduce our net debt position to nearly zero.

AK Dalmiah: This transaction has enabled us to significantly reduce our net debt portion to nearly zero, materially strengthening our balance sheet and creating greater financial headroom to pursue a larger and more attractive business development pipeline, while maintaining our disciplined approach to capital allocation. Safety remains a fundamental priority across our developments. The achievement of 15 million safe man-hours at Birla Nyara, a significant milestone and testament to a collective commitment of our teams, partners, and workforce to building a culture where safety is non-negotiable and always comes first. As we look ahead, our priorities remain clear. Scale with discipline, execute with consistency, and create developments that are defined by trust, quality, and thoughtful design. We believe our strong brand, diversified portfolio, healthy balance sheet, and customer-first approach position us well to deepen our presence across key markets and capture the opportunity ahead.

Speaker #3: Materially strengthening our balance sheet and creating greater financial headroom to pursue a larger and more attractive business development pipeline, while maintaining our disciplined approach to capital allocation.

Speaker #3: Safety remains a fundamental priority across our development. The achievement of 15 million safe man-hours at Birla Nyara is a significant milestone and a testament to the collective commitment of our teams, partners, and workforce to building a culture where safety is non-negotiable and always comes first.

Speaker #3: As we look ahead, our priority remains clear: scale with discipline, execute with consistency, and create developments defined by trust, quality, and thoughtful design.

Speaker #3: We believe our strong brand, diversified portfolio, healthy balance sheet, and customer-first approach position us well to deepen our presence across key markets and capture the opportunity ahead.

Speaker #3: As we continue to grow, our focus will remain firmly on creating sustainable value, not just through the scale of our business, but through the quality of every development we deliver and the trust we build with our customers and stakeholders.

AK Dalmiah: As we continue to grow, our focus will remain firmly on creating sustainable value, not just through the scale of our business, but through the quality of every development we deliver and the trust we build with our customers and stakeholders. Thank you. We will now open the floor for QA.

Speaker #3: Thank you. We will now open the floor for Q&A.

Speaker #1: Thank you very much. We will now begin the question-and-answer session. Would anyone like to ask a question? May my friends start, and one on their touch-tone telephone.

Operator: 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 their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use answers while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is on the line of Karan Khanna from Ambit Capital. Please proceed.

Speaker #1: If you wish to remove yourself from the question queue, you may press Start and 2. Participants are requested to use answers by asking a question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Karan Khanna from Ambit Capital.

Speaker #1: Please proceed.

Speaker #2: Yeah, hi. Thanks for the opportunity, and congrats to the team on signing the Vashi redevelopment project yesterday. A couple of questions from my side. Firstly, Katie, if you look at slide 4 of the investor presentation, how should one read this?

Karan Khanna: Yeah, hi. Thanks for the opportunity and congrats team on signing the Vashi redevelopment project yesterday. A couple of questions from my side. Firstly, KT, if you look at slide 4 of the investor presentation, how should one read this? Absorption levels have stayed very healthy for the quarter, even without much of launches at an industry level, implying healthy levels of sustenance sales. But if you look at your booking value of INR 3.3 billion, it indicates sustenance sales have been relatively weaker. So what are your thoughts on this and what else can be done to really push up sustenance sales as a company? As a follow-up, what needs to happen for the pre-sale trajectory to see a material growth from what we've seen in Q1 for the rest of FY27?

Speaker #2: Absorption levels have stayed very healthy for the quarter, even without many launches at an industry level, implying healthy levels of sustaining sales. But if you look at your booking value of $3.3 billion, it indicates sustaining sales have been relatively weaker.

Speaker #2: So, what are your thoughts on this, and what else can be done to really push up sustaining sales as a company? And as a follow-up, what needs to happen for the pre-sales trajectory to see a material growth from what we've seen in Q1 for the rest of FY27?

Speaker #3: Good morning, Karan. Thanks for your question. So we had a about 327 crores of net sales, actually the gross sales was much higher. We had a few cancellations and a few terminations for people who are not paying up, and notably a couple of them a couple a little more of them has been from the Birla Nyara.

K. T. Jithendran: Good morning, Karan. Thanks for your question. We had about INR 327 crores of net sales. Actually, the gross sales was much higher. We had a few cancellations and a few terminations for people who are not paying up. Notably, a couple of them, a couple or little more of them has been from the Birla Niyaara. That is why there has been a kind of a dent in net sales. I think, otherwise, if you look at our performance in Pune, both the projects in Pune and in Thane, Birla Taranya, and even in Bangalore, we have had a steady performance. Also there have been price increases. I am not really worried about that. We will pick up. Of course, there were no launches, therefore, the numbers are a little muted, but this is largely tempered because of a few cancellations.

Speaker #3: So that is why there has been a kind of a dent in net sales. But I think otherwise, if you look at our performance in Pune, e, in a couple of our both the projects in Pune and in Thane Birla, Taranya and even in Bangalore, we have had a steady performance.

Speaker #3: So—and also, there have been price increases. So, I'm not really worried about that; we will pick up. Of course, there were no launches, so, therefore, the numbers are a little muted.

Speaker #3: But this has largely tempered because of a few cancellations. But let me assure you that, even with these cancellations, we are booking at higher prices.

K. T. Jithendran: Let me assure you that these cancellations we are booking at higher prices. For example, at Nyara, we had four cancellations, but two of them we have booked at much higher prices with at least about INR 4 crores more per apartment.

Speaker #3: For example, at Nyara, we had four cancellations, but two of them we have booked at much higher prices—with at least about ₹4 crore more per apartment.

Karan Khanna: Yeah. Just following up on this, when you said that you had no launches during the quarter. If you look at slide 17, which is INR 9,600 crores worth of launches that are planned for FY27, what is your current approval status for all these projects, and do you see a risk for slippage for any of these projects into FY28?

Speaker #2: And then just on—yeah. Then also just following up on this, and when you said that, you know, you had no launches during the quarter—if you look at slide 17, which is ₹9,600 crore worth of launches that are planned for FY27—what’s the current approval status for all these projects?

Speaker #2: And do you see a risk for slippage for any of these projects into FY28?

Speaker #3: So, largely, we're more or less on track, but most of the launches are planned for Q3 and Q4, so currently we're on track for all these launches.

K. T. Jithendran: Largely, we are more or less on track. Most of the launches are planned for Q3 and Q4. Currently, we are on track for all these launches.

Speaker #2: Okay. And then, second question, Katie. Now that you've received the proceeds of around ₹3,500 crore from the sale of pulp and paper, and with the car redevelopment last quarter, and now Vashi, that you signed yesterday, with a revenue potential of around ₹2,600 crore, should we now view redevelopment and JV-led projects as becoming a more important part of Birla Estate's BD strategy?

Karan Khanna: Okay. Second question, KT, now that you have received the proceeds of around INR 3,500 crores from the sale of pulp and paper, with Khar redevelopment last quarter and now Vashi that you signed yesterday with revenue potential of around INR 2,600 crores, should we now view redevelopment and JDA-led projects as becoming a more important part of Birla Estates' BD strategy? When we look at, let us say, higher concentration of Mumbai, how are you looking at the market and the overall demand elasticity, let us say, over the next 12 to 24 months, considering that most of the projects that are expected to be launched and most of the BD that you have signed so far is primarily in the MMR market?

Speaker #2: And when we look at, let's say, higher concentration of Mumbai, how are you looking at the market and the overall demand elasticity? Let's say over the next 12 to 14 12 to 24 months, considering that most of the projects that are expected to be launched, and most of the BD that you've signed so far, is primarily in the MMR market?

Speaker #3: Yeah. So, I think the residential real estate market continues to demonstrate strong resilience. Housing sales across India's top cities have grown by more than 8% year on year.

K. T. Jithendran: Yeah. The residential real estate market continues to demonstrate strong resilience. Housing sales across India's top cities has grown by more than 8% Y-o-Y, which is actually reversing the decline which was witnessed last Q1 2025. More importantly, this growth is being led by premium housing, which is continuing to reflect a structural shift in buyer preferences, rather than a mere cyclical demand. Where else but Mumbai for premium housing? I think the premium housing demand continues to be very stable, strong, growing, both in price terms and volume terms. We are pretty confident that we are betting on the right market. However, having said that, we are also looking very strongly into the NCR market, both Gurugram and Noida, prime locations in these markets, and also in Bengaluru, very premium locations.

Speaker #3: This is actually reversing the decline that was witnessed in Q1 2025. More importantly, this growth is being led by premium housing, which continues to reflect a structural shift in buyer preferences rather than a mere cyclical demand.

Speaker #3: And so, Mumbai—whereas, for premium housing—so I think the premium housing demand continues to be very stable, strong, growing, both in price terms and volume terms.

Speaker #3: So, we are pretty confident that we are betting on the right market. However, having said that, we are also looking very strongly into the NCR market—both Gurgaon and Noida, prime locations in these markets.

Speaker #3: And also in Bangalore, very premium locations. We are strongly following up on our BD acquisitions in Bangalore and also in Pune, at the right locations.

K. T. Jithendran: We are strongly following up on our BD acquisitions in Bangalore and also into Pune at the right locations. I think it is more micro-market led. There are certain micro markets in each of these cities, which are showing very strong growth trends, and we will be focusing on those.

Speaker #3: So I think it's more micro-market-led. There are certain micro markets in each of these cities which have been showing very strong growth trends.

Speaker #3: And we'll be focusing on those.

Speaker #2: This is helpful, Katie. I'll come back in the Q5 follow-up. Thank you.

Karan Khanna: Sure. This is helpful, KT. I will come back in the queue for any follow-up. Thank you.

Speaker #3: Yeah.

K. T. Jithendran: Yeah.

Speaker #1: Thank you. The next question is from the line of Akash Gupta from Nomura. Please proceed.

Operator: Thank you. The next question is from the line of Akash Gupta from Nomura. Please proceed.

Speaker #4: Hello. Hi. Am I audible?

Akash Gupta: Hello. Hi, am I audible?

Speaker #3: Yeah, Akash, you are.

K. T. Jithendran: Yeah, Akash, you are.

Speaker #4: Yeah. Hi, sir. Congratulations on a resilient performance. My first question is with respect to margins for our redevelopment projects. Is this any different? Like, what margins are we looking at for these types of redevelopment projects?

Akash Gupta: Yeah. Hi, sir. Congratulations on a resilient performance. My first question is with respect to margins for our redevelopment projects. Is this any different, like what margins are we looking at for these type of redevelopment projects?

Speaker #3: So, Akash, we are looking at very premium locations for these redevelopments. So our margins are as good as any other, you know, normal projects.

K. T. Jithendran: So, Akash, we are looking at very premium location for these redevelopments. Our margins are as good as any other normal projects. No worry for that. We are in the region of about 25% to 30%.

Speaker #3: There's no worry about that. We are in the region of about 25% to 30%.

Speaker #4: Understood. The second question is about the cash that we have received from ITC. Are there any tax implications? What is the post-tax cash inflow that we will get from this ITC deal?

Akash Gupta: Understood. The second question is on the cash that we have got from ITC. Is this any tax implication? What is the post-tax cash inflow that we will get from this ITC deal?

Speaker #3: So Akash, Kayuria, we have received ₹3,325 crore, which is approximately 95% of the consideration amount. The balance 5% will be subject to certain conditions subsequent.

Keyur Shah: So, Akash, Keyur here. We have received INR 3,325 crores, which is approximately 95% of the consideration amount. The balance 5% will be subject to certain conditions subsequent and certain working capital adjustments which are to be reviewed because it takes time for the working capital to be completed. That is the balance 5% to be received. Yes, there would be a tax outflow on that. That is in the process of being worked out, so I am not in a position to give you that number right now. But yeah, this is what we have received so far.

Speaker #3: And certain working capital adjustments, which are to be reviewed, because you know, it takes time for the working capital to be computed. So that's the balance 5% to be received.

Speaker #3: Yes, there would be some—there would be a tax outflow on that. That is in the process of being worked out, so I'm not in a position to give you that number right now.

Speaker #3: But yes, this is what we have received so far.

Speaker #4: Understood. And sir, just from a loan strategy standpoint, on the Nyara launch, what is the timeline? Any thoughts on the kind of format that we are bringing?

Akash Gupta: Understood. And sir, just from a launch strategy standpoint, just on the Birla Nyara launch, what is the timeline? Any thoughts on the kind of format that we are bringing? Just thoughts on that, please.

Speaker #4: Just thoughts on that piece.

Speaker #3: So Akash, as I mentioned, we are, you know, focusing on large format—similar formats, you know, like what we did in Selak, but slightly modified with fungible options, et cetera.

K. T. Jithendran: Akash, as I mentioned, we are focusing on large formats, similar formats, like what we did in Silas, but slightly modified with fungible options, et cetera. There is a lot of people who are waiting for combined options, larger formats. That has been decided, and we are moving ahead with the approvals. Hopefully, we should get RERA by end of Q2 and kind of launch this early Q3 or mid Q3. That is the current plan now.

Speaker #3: There are a lot of people who are waiting for combined options and larger formats. That has been decided, and we are moving ahead with the approvals.

Speaker #3: Hopefully, we should get RERA by the end of Q2 and launch this either in early Q3 or mid Q3. That's the current plan now.

Speaker #4: Understood. And do you have any feedback on the initial demand for the product?

Akash Gupta: Understood. Any feedback on the initial demand for the product?

Speaker #3: Yeah.

K. T. Jithendran: Yeah. Yeah. As I mentioned, Worli continues to be a very strong market. In the premium segment, it is really commanding good premiums. We have increased our prices for Silas and Tower A. Market continues to show strong demand. We have a strong pipeline. Some of our existing customers and some other customers are waiting for larger formats, et cetera. So we are not worried about demand. It continues to be very healthy and strong.

Speaker #4: Our yeah.

Speaker #3: Yeah. As I mentioned, early continues to be a very, very strong market. In the premium segment, it is really commanding good premiums.

Speaker #3: We have increased our prices for Selas and Tower A. The market continues to show strong demand. We have a strong pipeline—some of them are existing customers, and some other customers are waiting for larger formats, et cetera.

Speaker #3: So, we are not worried about demand. It continues to be very healthy and strong.

Speaker #4: Got it. Thank you so much.

Akash Gupta: Got it. Thank you so much.

Speaker #3: Yeah.

Speaker #1: Thank you. The next question is from the line of Amit Srivastava from 361 Capital. Please proceed.

Operator: Thank you. The next question is from the line of Amit Srivastava from 361 Capital. Please proceed.

Speaker #2: Thank you very much for the opportunity. Sir, my first question is on the medium-term growth prospect for the business. You know, in FY25, when we first hit the ₹8,000 crore mark, we had indicated that while annual guidance may not be given...

Amit Srivastava: Yeah. Thank you very much for the opportunity. Sir, my first question is on our medium-term growth prospect for the pre-sales. In our FY25, when we first hit the INR 8,000 crore pre-sales, we have indicated that while annual guidance we may not give, but over the medium term, next 2, 3 years, we will reach towards INR 15,000 crore. But Q4 2026, we were at INR 8,000 crore, and this year, looking at the business development launches, we believe it could be in the similar range. So have we recalibrated our growth strategy or timeline, or we are confident of achieving the INR 15,000 crore over the next 2 years' time frame?

Speaker #2: But over the medium term, in the next two to three years, we'll reach towards ₹15,000 crore. In FY26, we were at ₹8,000 crore. And this year, looking at the business development and launches, we believe it could be in the similar range.

Speaker #2: So, have we recalibrated our growth strategy or timeline, or are we confident of achieving the ₹15,000 crore target over the next two years?

Speaker #3: So, Amit, we are absolutely confident in our guidance and our long-term guidance that we have given. We are all aiming towards that.

K. T. Jithendran: Amit, we are absolutely confident of our long-term guidance that we have given. We are all aiming towards that. We are building up our BD pipeline and also shoring up on our phase launches. We are very confident that we will be able to achieve that.

Speaker #3: We are building up our BD pipeline, and also showing up on face launches. We are very, very confident that we will be able to achieve that.

Speaker #2: Okay. And sir, in terms of you know, we were talking about last quarters on a commercial real estate portfolio development plan. So can you update us what is the progress we have made so far or any timeline in terms of which project we would be like to prioritize first and start and everything?

Amit Srivastava: Okay. And sir, in terms of, we were talking about last 2 quarters on our commercial real estate portfolio development plan. Can you update us what is the progress we have made so far, or any timeline in terms of which project we would like to prioritize first and start with?

Speaker #3: So, as I mentioned in my last interaction with you, we are planning to commence the commercial development from the Birla Niara project itself. First of all, 1.3 million square feet.

K. T. Jithendran: As I mentioned in my last interaction with you, we are planning to commence the commercial development from the Birla Niyaara project itself. First, about 1.3 million square feet. Our attempt, the design is in planning stage, and we are hoping to get the approvals and start commencement before the end of this financial year. I think a four-year time is what we are looking at getting into the leasing stage. Given the current market conditions, I think it should be at least about an INR 800 crore annual leasing when it is fully stabilized.

Speaker #3: Our attempt at the design is in the planning stage, and we are hoping to get the approvals and start commencement before the end of this financial year.

Speaker #3: I think a four-year timeframe is what we are looking at for getting into the leasing stage. And given the current market conditions, I think it should be at least about ₹800 crore annual leasing when it is fully stabilized.

Speaker #2: This project can be launched in parallel with our Birla Nyara Phase 3, so there is no problem on that side.

Amit Srivastava: This project can be launched parallel to our Birla Niyaara phase 3, so no problem on that side.

Speaker #3: Absolutely no chance. This is commercial. You know, there's no demand. You just take the approvals and start building, start construction.

K. T. Jithendran: Absolutely no, Chand. This is commercial. There is no point. You just take the approval and start building, start construction.

Speaker #2: Right. So, what will be the capex kind of assumption on this if we are at 1 million square feet?

Amit Srivastava: Right. So what will be the CapEx kind of assumption on this, if you have 1 million square feet?

Speaker #3: Capex? Capex is not, because land is not. There, only have to pay for.

K. T. Jithendran: CapEx? CapEx is not, because land is not. Then only you have to pay for-

Speaker #2: Yeah. So, construction is spent. Basically, if we look at...

Amit Srivastava: Yeah, so construction spend, basically if we look at.

K. T. Jithendran: Yeah. Those details are there that I can share you if there is too much. It is not something which is too big, and we have also options of going with a partner, with a private equity partner. So we are weighing all of those options. Yeah.

Speaker #3: Yes, those details are there that I can share with you. If there's too much, I mean, it's not something which is, you know, too big.

Speaker #3: And we are also considering the option of going with a private equity partner, so we are weighing all of those options. Yeah.

Speaker #2: Sure, sure. The last question is in terms of construction spend. Last quarter, we had guided ₹4,000 crore for FY27, whereas we have already spent ₹440 crore in one quarter.

Amit Srivastava: Sure. The last question is in terms of construction spend. Last quarter, we have guided INR 4,000 crore in FY27, whereas we have already spent INR 440 crore in one Q. So-

Speaker #2: So, this would be in a similar, you know, same range of ₹1,000 crore for FY27, or will it escalate? And what would be the collection guidance for FY27?

Amit Srivastava: This would be in the same range of INR 1,000 crore for FY27, or it will escalate? What will be collection guidance for FY27?

Speaker #3: So Amit, 437 includes construction costs of around 226 crores. The balance consists of other costs like approval costs and design costs. So overall, the construction cost is, you know, 226 crores for the current quarter.

K. T. Jithendran: Amit, 437 includes a construction cost of around INR 226 crore.

Amit Srivastava: Got it.

K. T. Jithendran: Balance are other costs like approval costs, design costs. Overall, the construction cost is INR 226 crore for the current quarter. Yes, around INR 1,200 to 1,300 crore will be the overall construction cost for the current financial year.

Speaker #3: And yes, around ₹1,200 to ₹1,300 crores will be the overall construction cost for the current financial year.

Speaker #2: Okay, sure, sir. Just some clarity on Birla Nyara phase two, where the cancellation has happened. One quarter, we had four units that got canceled.

Amit Srivastava: Okay. Sure, sir. Just some clarity on our Birla Niyaara Phase 2, where the cancellation has happened. In one quarter, we got four units which got canceled. Any specific reason for that?

Speaker #2: Is there any specific research that is the reason for that, sir?

Speaker #3: We had one cancellation in Tower A, and three cancellations in Tower C at Tower B. But two of them have already been booked in the last quarter.

K. T. Jithendran: We had one cancellation in Tower A and three cancellations in Tower B. But two of them have already been booked in the last quarter. One we have again booked at this quarter. These happen. People are not paid up. They have struggle payment schedule. Somebody has a death in one's family, financial constraints, they didn't want to continue, et cetera. The good news is that we have been booking it at much higher prices. The rebooking has been at much higher prices. At least every apartment we have sold at INR 4 crores more.

Speaker #3: One we have again booked at this quarter. So these happen. People are not paid up. They have struggled. Payment schedule. Somebody has a death in one's family.

Speaker #3: Financial constraints, didn't want to continue, et cetera. The good news is that we have been booking it at much higher prices. The rebooking has been at much higher prices.

Speaker #3: At least every apartment we are sold at ₹4 crore or more.

Speaker #2: So, what is the current ticket size, sir, on your average?

Amit Srivastava: What is the current ticket size, sir, on an average?

Speaker #3: In towers, in Tower B, in Selas?

K. T. Jithendran: In Tower B, in Silas?

Speaker #2: Yeah. Yeah, Tower B.

Amit Srivastava: Yeah, Tower B.

Speaker #3: 40 crores. 40 crores.

K. T. Jithendran: INR 40 crore.

Speaker #2: Okay, 40 crores. Yeah, sure. Okay, sir. Thank you.

Amit Srivastava: Okay. Yeah, sure. Okay, sir. Thank you.

Speaker #3: Yeah.

K. T. Jithendran: Yeah.

Speaker #1: Thank you. The next question is from the line of Prateesh Seth from Axis Capital. Please proceed.

Operator: Thank you. The next question is from the line of Prateek Seth from Axis Capital. Please proceed.

Speaker #4: Yeah, thanks for the opportunity. Just a couple of questions. First, on the BD—I mean, just in case you want to—could you indicate what sort of pipeline we have right now in terms of advanced discussions? And it would be helpful if you can provide the split across cities as well.

Prateek Seth: Yeah. Thanks for the opportunity. Just a couple of questions. First, on the BD, just in case you want to just indicate what sort of pipeline do we have right now in terms of advanced discussions, and would be helpful if you can provide the split across cities as well. Yeah, that's my first question.

Speaker #4: Yeah, that's my first question.

Speaker #3: So, our BD pipeline continues to be very strong. We have more than, you know, term sheets and advanced deals worth about more than ₹60,000 crore in the pipeline.

K. T. Jithendran: Our BD pipeline continues to be very strong. We have more than about worth term sheets and advance deals worth about more than INR 60,000 crores in the pipeline. These are reasonably split between NCR, Mumbai, Pune, and Bangalore. Of course, because of the push on redevelopment, we have a slightly stronger pipeline in Mumbai. Otherwise, we have even very strong proposals going on in NCR market, Pune, Bangalore. So in all markets, our focus remains equally strong. I think all these markets in the right micro markets, there is very strong demand for premium housing, and that's where we are focusing on.

Speaker #3: These are reasonably split between NCR, Mumbai, Pune, and Bangalore. Of course, because of the push on redevelopment, we have a, you know, slightly stronger pipeline in Mumbai.

Speaker #3: So otherwise, we have, you know, very strong proposals going on in the NCR market, Pune, and Bangalore. So in all markets, our focus remains equally strong.

Speaker #3: I think in all these markets, in the right micro markets, there is very strong demand for premium housing, and that's where we are focusing.

Speaker #4: Sure. And any targets in terms of completions in the next, you know, one or two quarters? Because probably that would set the tone for, you know, next year's growth.

Prateek Seth: Sure. Any targets in terms of completions in next one or 2 quarters? Because probably that would set the tone for next year's growth. So out of the INR 60,000 crore, how much do you expect to complete in this quarter, next quarter?

Speaker #4: So out of the ₹60,000 crore, how much do you expect to, you know, complete in this quarter and next quarter?

Speaker #3: The quarterly things in BD are not possible. Whenever we get the right deals, we will, you know, consume it. For example, the deal that we concluded, Vashi—that moved very quickly.

K. T. Jithendran: Quarterly things in BD is not possible. Whenever we get the right deals, we will consummate it. For example, the deal that we concluded Vashi, that moved very quickly, within about 6 months time or less than 6 months time, we could conclude it. There are deals which we are negotiating over the last couple of years also. So this is very difficult for us to really predict quarterly basis. On an annual basis, I've guided you in the range of about INR 10,000 to 15,000 crores is what we are aiming to do in this financial year.

Speaker #3: Within about six months' time, or less than six months' time, we could conclude it. There are deals which we are negotiating over the last couple of years also.

Speaker #3: So this is very difficult for us to really predict on a quarterly basis. On an annual basis, I've guided you to the range of about ₹10,000 to ₹15,000 crores—that is what we are aiming to do.

Speaker #3: In this financial year.

Speaker #4: Got it, got it. And with that, I mean, at least you are confident that in FY28 we will have growth in terms of resales.

Prateek Seth: Got it. With that, at least you are confident that FY28, we will have a growth in terms of pre-sales. At least we have reached that stage in terms of business development where we can be slightly confident about next year's growth.

Speaker #4: At least we have reached that stage in terms of business development where we can be confident, or at least slightly confident, about next year's growth.

Speaker #3: Yeah. So, I am not currently commenting on next year. I'm confidently commenting on a three-year plan. I think that's what I would rather like to tell you.

K. T. Jithendran: Yeah. I am not currently commenting on next year. I am confidently commenting on a three-year plan. I think that is what I would rather like to tell you-

Speaker #3: That ₹15,000 crores in three years’ time is what? I can guide you for.

Prateek Seth: Sure

K. T. Jithendran: that INR 15,000 crore in three years' time is what I can guide you for.

Speaker #4: Sure. Got it. Fair enough. That's all from my side, and all the best. Thank you.

Prateek Seth: Sure. Got it. Fair enough. That is all from my side and all the best. Thank you.

Speaker #3: Okay.

K. T. Jithendran: Okay.

Speaker #1: Thank you. The next question is from the line of Birla from MK Global. Please proceed.

Operator: Thank you. The next question is on the line of Viplav from Emkay Global. Please proceed.

Speaker #4: Good morning, everyone. Good morning, Prateesh. My first question is on the cancellations in Niyara. So, can you give us some numbers? And if you exclude those cancellations, what would have been our gross sales this quarter?

[Analyst] (MK Global): Good morning, everyone. Good morning, Ketki. My first question is on the cancellations in Birla Niyaara. Can you give us some numbers? If you exclude those cancellations, what would have been our gross sales this quarter?

Speaker #3: Gross sales have been more than 700 crores. 700 crores plus. But there have been because of these cancellations, partly Niyara, partly in Areka, and some of the other projects, it is what it is what we have stated here.

K. T. Jithendran: Gross sales have been more than INR 700 crore plus. There have been, because of these cancellations, partly Birla Niyaara, partly in Birla Arika, and some of the other projects, it is what it is, what we have stated here. As I mentioned, both in these markets where almost our full inventory is sold, like in Birla Arika or these things, these are more like a cleanup situation. People are not paid, so they have been either terminated and some of them are canceled. They are getting rebooked at higher prices.

Speaker #3: But as I mentioned, both in these markets where almost our full inventory is sold, like in Areka or this thing, these are more like a clean-up situation.

Speaker #3: People are not paid, so they have been either terminated, and some of them have canceled. But I can, but they are getting rebooked at higher prices.

Speaker #4: So, these numbers would be reflected in the subsequent quarters.

[Analyst] (MK Global): These numbers will be reflected in the subsequent quarters?

Speaker #3: Yeah, yeah, yeah. Yes, yes, yes. Absolutely.

K. T. Jithendran: Yeah. Yes, absolutely.

Speaker #4: So, we don't have to worry or read between the lines about that.

[Analyst] (MK Global): We don't have to worry or read between the lines that.

Speaker #3: Not at all. Not at all. Not at all. All these cancellations have been healthy. They are only improving our cash flows, and also our top line.

K. T. Jithendran: Not at all. All these cancellations have been healthy. They only improve our cash flows and also our top line.

Speaker #4: Okay. Okay. Sir, coming to business development—last year also, you had a decent pipeline, and yes, you have closed two deals.

[Analyst] (MK Global): Okay. Sir, coming to business development. Last year also you had a decent pipeline, and yes, you have closed two deals, but you have almost INR 60,000 crore GDV pipeline. If I'm not mistaken, you had a similar kind of pipeline. How probable are you that you'll be able to do, say, probability, I'm talking INR 15,000, INR 20,000 crore of GDV of business development this year? What are the challenges you have been facing in business development? Yeah, that's the second question. Yeah.

Speaker #4: But you have almost ₹60,000 crore GDP pipeline. And, if I'm not mistaken, you had a similar kind of pipeline earlier. So, how probable is it that you will be able to do, say, ₹15,000–20,000 crore of GDP or business development this year? I'm talking in terms of probability.

Speaker #4: And what are the challenges you have been facing in business development? I mean, yeah, that's the second question. Yeah.

Speaker #3: So, Birla, yeah, as I have mentioned, 10,000 to 15,000. So I'm pretty confident that, you know, we'll be able to achieve that—no reason to believe any other way.

K. T. Jithendran: So Viplav, yeah, as I have mentioned, 10 to 15,000. I am pretty confident that we will be able to achieve that. No reason to believe any other way. As I have always mentioned, the challenges are the right pricing, right location to get the right product with the right title, and prudently risk managed projects. Prices, of course, have gone up. It has to be in tune with the market and our return expectations, et cetera. Also it has to be relatively risk-free. Those challenges always remain. It is a question of the right opportunity coming at the right time. As I mentioned, we are chasing several opportunities. Some of them are high potential opportunities, but it takes a lot of patience to bring it to the right level. Work is going on cleaning up some of the challenges that we have faced.

Speaker #3: As I've always mentioned, you know, the challenges are, you know, the right pricing, right location, to get the right product with the right title, and, you know, prudently risk-managed projects.

Speaker #3: So, prices, of course, have gone up. It has to be in tune with the market and our return expectations, et cetera. And also, it has to be relatively risk-free.

Speaker #3: So the challenges always remain. It's a question of the right opportunity coming at the right time. As I mentioned, we are chasing several opportunities.

Speaker #3: Some of them are high potential opportunities, but it takes a lot of patience to bring it to the right level. So work is going on on some of the on cleaning up some of the challenges that you have faced.

Speaker #3: This has always happened in the past also. Somewhere, it is competition, overbidding, you know, all of that. So it's a mix of both—the right, you know, clarity, location, sizing, market demand, competitive, you know, bidding—it's a mix of all of that.

K. T. Jithendran: These have always happened in the past also. Somewhere it is competition, overbidding, all of that. It is a mix of both. The right clarity of location, sizing, market demand, competitive bidding. It is a mix of all of that. We will continue to pursue business development with full vigor, but with full risk management within our risk management framework. I am sure the opportunities will come. We have to be a little patient.

Speaker #3: So we will continue to pursue business development with full vigor, but with full— you know, risk management within our risk management framework. And I'm sure the opportunities will come.

Speaker #3: We have to be a little patient.

Speaker #4: One final question. Sir, I know cash has never been a problem when it comes to business development. But still, you know, any of the cash in your bank gives you a lot of strength and confidence. So sir, would you say now, since we have posted this paper sales business and our focus has entered to invest in real estate, would you see a strong uptick in business development, more so in outright purchases?

[Analyst] (MK Global): One final question. Sir, I know cash has never been a problem when it comes to business development. But still, when you have a cash in your bank, it gives you a lot of strength and confidence. Sir, would you see now since we have paused this paper sales business and our focus has entered to invest in real estate. Would you see a strong uptick in business development more so in outright purchase because you have significant amount of cash now?

Speaker #4: Because you have a significant amount of cash now.

Speaker #3: Yeah, so we always have, you know, if you look at our entire portfolio, the bulk of the deals are outright only. There has been, you know, a decent share of joint ventures, but largely, you know, more than 50 percent is outright development.

K. T. Jithendran: Yeah. We always have, if you look at our entire portfolio, the bulk of the deals are outright only. There has been a decent share of joint ventures, but largely, more than 50% is outright development. Our focus will continue to be that just because we have surplus capital will not push us to be careless or rash in any way. It is very important that we become very careful because coming under pressure and putting capital in a slightly reckless way could be very detrimental for us in the long run. Our framework of risk management will continue. I am sure when the right opportunity comes, we will strike.

Speaker #3: So, our focus will continue to be that just because we have surplus capital, it will not push us to be, you know, careless or rash in any way.

Speaker #3: It's very important that we become very careful, because coming under pressure and putting, you know, capital in a slightly reckless way could be very detrimental for us in the long run.

Speaker #3: So our framework of risk management will continue, and I'm sure when the right opportunity comes, we'll strike.

Speaker #4: Thank you, sir, and all the best.

[Analyst] (MK Global): Thank you, sir, and all the best.

Speaker #3: Thank you.

K. T. Jithendran: Thank you.

Speaker #1: Thank you. The next question is from the line of Jayapatak from Motilal Oswal. Please proceed.

Operator: Thank you. The next question is on the line of Harsh Pathak from Motilal Oswal. Please proceed.

Speaker #4: Yeah, as Prateesh said—yes, sir. First of all, congratulations on the new business development in Vashi. My first question is around that. So, I think we have an affiliate partner in this project.

Harsh Pathak: Yeah. Harsh Pathak this side. First of all, congratulations for the new business development in Vashi. My first question is around that. I think we have an affiliate partner in this project. What would be the exact arrangement in this, and what is our economic interest in this project?

Speaker #4: So what would be the exact arrangement in this? And what is our economic interest in this project?

Speaker #3: So our economic interest is 90 percent; 10 percent goes to the partner. The partner has been responsible for handling, you know, around 500 society members and, you know, dealing with them, executing the negotiations and the agreements with them, managing their vacation, you know, getting their existing structures demolished, barricading, bringing in all of them, making the site, you know, ready for us to move in and clear, and also helping tremendously in getting our municipal approvals.

K. T. Jithendran: Our economic interest is 90%. 10% goes to the partner. Partner has been responsible for handling around 500 society members, and dealing with them, executing the negotiations and the agreements with them, managing the vacation of them, getting their existing structure demolished, barricading, rubbering and all of that, making the site ready for us to move in and clear, and also helping tremendously in getting our municipal approvals.

Speaker #4: Okay, so what is the margin that we will be getting on this project, net-net?

Harsh Pathak: What is the margins that we will be getting on this project net-net?

Speaker #3: Around 25 to 30 percent is what we, because it's a very high margin, very high, very premium location—extreme, with the creek view and all that.

K. T. Jithendran: Around 25% to 30% is what we. It is a very high margin, very premium location. Extreme with the creek view and all that. Very premium from Vashi point of view. We expect to sell in the range of about INR 38,000 to INR 40,000 per square foot. Therefore, it is a high margin project.

Speaker #3: Very, very premium from a Vashi point of view. We expect to sell in the range of about ₹38,000 to ₹40,000 per square foot. So therefore, it's a high-margin project.

Speaker #4: Great. And what is the exact situation at the project? When can we aim to launch this? Have we received any?

Harsh Pathak: Great. What is the exact situation in the project? When can we aim to launch this? Have you received any-

K. T. Jithendran: We are looking at a Q2 launch.

Speaker #3: We will launch. We are looking at a Q2 launch.

Speaker #4: Q2 of FY28?

Harsh Pathak: Q2 of FY28?

Speaker #3: Yeah.

K. T. Jithendran: Yeah.

Speaker #4: Okay. Okay. Understood. And sir, my next question is on your cash flow statement on slide number 29. So there is this ₹282 crore outflow towards land approval, capital outflows, and deposits.

Harsh Pathak: Okay. Understood. My next question is on your cash flow statement on slide number 29. There is this INR 282 crores of outflows towards land approval, capital outflows, and deposits. What would this exactly be?

Speaker #4: What would this exactly be?

Speaker #3: Yeah. So, Harsh, we've made some land payment of around ₹125 crore out of that, and there is a net deposit outflow of ₹150-odd crore.

K. T. Jithendran: Yeah.

Keyur Shah: Harsh, we have made some land payment of around INR 125 crores out of that. There is a net deposit outflow of INR 150 odd crores, and there is some INR 7 odd crores of CapEx. The deposit is a net number. We have also adjusted that some deposits from some of the projects. That is the total summation of INR 283.

Speaker #3: And there is some ₹7-odd crore of capex. Now, the deposit is a net number. We have also adjusted that—some deposits from some of the projects.

Speaker #3: So, that is the total summation of 283.

Speaker #4: Understood. And this 150 crores of land outflow would be towards which project?

Harsh Pathak: Understood. This INR 150 crore of land outflow would be towards which project?

Speaker #3: So, 125 land outflow is for the Thana project. 125.

Keyur Shah: The INR 125 crore land outflow is for the Thane project, 125.

Speaker #4: Okay.

Harsh Pathak: Okay.

Speaker #3: And deposit is 151. So we've also, you know, given an earnest money deposit for a land auction in Noida. So there is a deposit for that.

Keyur Shah: Deposit is INR 151 crore. We have also given an earnest money deposit for land auction in Noida. There is a deposit of that. Then we had to give a deposit for one of the redevelopment projects in Khar. There has been an adjustment of the deposit given in some other projects. The net deposit outflow is INR 151 crore.

Speaker #3: Then we had to give a deposit for one of the redevelopment projects in Khar, and there has been an adjustment of the deposit given in some other projects.

Speaker #3: So the net deposit outflow is 151.

Speaker #4: Understood. Understood. Yeah, those are the questions from my side. Thanks a lot.

Harsh Pathak: Understood. Those are the questions from my side. Thanks a lot.

Speaker #1: Thank you. The next question is from the line of Jayashah from ATTFT Securities. Please proceed.

Operator: Thank you. The next question is from the line of Jay Shah from HDFC Securities. Please proceed.

Speaker #5: Hi sir. Thank you for the opportunity. Sir, first question, on the new redevelopment that you have entered in Vashi. So, what would be the carpet area for this?

Jay Shah: Hi, sir. Thank you for the opportunity. I have a question on the new redevelopment that you have entered in Vashi. What would be the carpet area for this?

K. T. Jithendran: Our saleable area is about 1 million square feet.

Speaker #3: So, our saleable area is about 1 million square feet.

Speaker #5: Okay. A million square feet. Okay.

Jay Shah: Okay. 1 million square feet.

Speaker #3: Yeah. So, million square feet of saleable area. Yeah.

K. T. Jithendran: Yeah.

Jay Shah: Okay.

K. T. Jithendran: A million square feet of saleable area.

Speaker #5: So, around net-net. So then, that implies around 55,000 to 60,000 per square feet rate, right? On the carpet. If I, so like, versus the carpet rate over there, which is around 35,000 to 40,000.

Jay Shah: Around net. That implies around what? 55,000, 60,000 of per square feet, right?

K. T. Jithendran: Yeah.

Jay Shah: On the carpet if I. Versus the carpet area over there, which is around 35 to 40. What are those plans of launches, and how are you planning to sell here at such a price?

Speaker #5: So how what are the like plans of launches and how are you planning to sell here in such at a such a price?

K. T. Jithendran: I think it is very premium location. It is very premium location. Largely we will be looking at large format, four bedroom sort of. I think there is a very high demand segment. There is very little supply there. There is absolutely the most premium location in Vashi. I think so we will be largely looking at very carpet areas of almost 2,500 sort there for event.

Speaker #3: It's a very premium location. It's a very, very premium location. So, largely, we'll be looking at, you know, large formats—four-bedroom, sort of. I think it is a very high-demand segment.

Speaker #3: There's very little supply there. There's absolutely no most premium location in Vashi, so I think we'll be largely looking at, you know, carpet areas of almost 2,500 square feet there.

Speaker #5: Okay. And this would be, and the ABRN share for this would be?

Jay Shah: Okay. And the EVRIN share for this would be?

Speaker #3: What share?

K. T. Jithendran: What share?

Speaker #5: ABR so eligible share.

Jay Shah: EVA. So, EVM share.

K. T. Jithendran: Our share, yeah. It is a 90-10 rev share, 90% to us.

Speaker #3: Our share? Yeah. It's a 90-10 rev share—90 percent to us.

Speaker #5: Okay, 90 to ABR. Okay. And, okay, so this would be like how many towers, or what would be the size over there?

Jay Shah: Okay, 90 to EVN. Okay. This would be how many towers, or what will be the floor size over there?

Speaker #3: Yeah, so I mean, design is in progress, but typically I think about three or four towers—four towers—for free sale.

K. T. Jithendran: Yeah. Design is in progress, but typically, I think about three or four towers for pre-sale.

Speaker #5: Okay. Fair. Okay. Sure. Yeah. Thank you.

Jay Shah: Okay. Fair. Okay, Shamika.

Operator: Thank you. The next question is from the line of Shukrit from iSAT Printed Private Limited. Please proceed.

Speaker #1: The next question is from the line of Sukhpreet from I Said Printed Private Limited. Please proceed.

Speaker #3: Good morning to the team. I have two questions. My first question to Mr. KT is: I just want to understand, from a forward-looking guidance perspective, what are the top two to three execution priorities you are focusing on in the next few quarters?

[Analyst] (iSAT Printed Private Limited): Good morning to the team. I have two questions. My first question to Mr. K. T. is, just want to understand the forward-looking guidance. What are the top two to three execution priorities you are focusing on in the next few quarters? Alongside that, what do you see as the biggest risk and demand shifts to regulatory changes or competitive pressures, and how are you preparing to mitigate them whilst strengthening the company's position in the real estate development space? That is my first question. I will ask my second question after this. Thank you.

Speaker #3: And alongside that, what do you see as the biggest risk and demand shifts—the regulatory changes or competitive pressure? And how are you preparing to mitigate them while strengthening the company's position in the real estate development space?

Speaker #3: That's my first question. I'll ask my second question after this. Thank you. So, execution, of course, has always been a key priority. All our projects are given full priority in execution.

K. T. Jithendran: Well, execution, of course, has always been key priority. All our projects, we give full priority in execution. Birla Niyaara Tower A is coming up for possession next year. That, of course, is high priority. We are handing over a few projects this year, Birla Tissier probably being one. The focus is on handing over with the highest customer satisfaction on these projects which we are handing over this year. Birla Navya, one of the phases we are handing over this year. Construction with full focus on highest level of safety and quality, timely delivery within budgets, managing the whole process remains our primary execution focus. Also, for projects which are in the phase of launching, which are finalized now.

Speaker #3: Birla Niyara Tower A is coming up for possession next year, so that, of course, is high priority. We are handing over a few projects this year.

Speaker #3: Birla Tissia notably being one. The focus is on handing over with the highest customer satisfaction on these projects, which are handing over this year.

Speaker #3: Navya, one of the faces we are handing over this year. Construction with full focus on the highest levels of safety and quality. Timely delivery within budget.

Speaker #3: Managing the whole process remains our primary, you know, execution focus. Also, projects which are in the phase of launching, which are finalized now—design, understanding the customer, and, you know, putting all the factors into design. Getting the design right, both in time in terms of construction cost optimization and customer requirements.

K. T. Jithendran: Design, understanding the customer and putting all the factors into design, getting the design right, both in terms of construction cost optimization, customer requirements, and also in terms of FSI optimization. Also to make sure that it is fast construction friendly. All of these is the prime focus for our execution part. Does that answer your question, Shukrit?

Speaker #3: And also in terms of FSI optimization, and also to make sure that it is fast-construction friendly. So all of these, you know, are the prime focus for our execution part.

Speaker #3: Does that answer your question, Sukhbir?

Speaker #4: Yeah, thank you. Thank you. My second question to Mr. Shah is along similar lines. From a financial point of view, what key risks or challenges do you anticipate in the coming quarters?

[Analyst] (iSAT Printed Private Limited): Yeah. Thank you. My second question to Mr. Shah is along the similar lines only. From a financial point of view, what key risks or challenges do you anticipate in the coming quarters, and what specific measures are being taken to manage margins, cash flow, and strengthen the balance sheet, especially in areas like borrowing costs, receivables, and compliance? Thank you.

Speaker #4: And what specific measures have been taken to manage margins, cash flow, and strengthen the balance sheet, especially in areas like borrowing costs, receivables, and compliance?

Speaker #4: Thank you.

Speaker #3: So, as we mentioned earlier, our net debt is nearly zero now, and we have a good treasury which we can use for business development and acquisitions.

Keyur Shah: As we mentioned earlier, our net debt is nearly zero now, and we have a good treasury which we can use for business development and acquisitions. We are in the process of repaying our short-term debt as and when it comes up for repayment. That is on the balance sheet side. As KT mentioned earlier, despite having significant cash balance, we will be disciplined in our approach in terms of business development and acquisitions. We are focusing a lot on our collections. We have almost a 98% collection efficiency. And wherever the collections are not coming on time, we are doing a termination. I would like to use the word termination and not cancellation, because we do not want a customer outstanding. We are very focused on our collections. As coming to the project deliverables or key parameters, we are always trying for making the project cash neutral.

Speaker #3: We are in the process of repaying our short-term debt as and when it comes up for, you know, repayment. That's on the, you know, balance sheet side.

Speaker #3: As KT mentioned earlier, despite having a significant cash balance, we will be disciplined in our approach in terms of business development and acquisitions.

Speaker #3: We are focusing a lot on our collections; we have almost a 98% collection efficiency. And wherever the collections are not coming on time, we are doing a termination.

Speaker #3: So I would like to use the word 'termination' and not 'cancellation,' because we don't want a customer outstanding. We are very, very focused on our collections.

Speaker #3: Coming to the project deliverables or key parameters, we are always striving to make the project cash neutral. So whatever our outgo is, in terms of land acquisition, launch, and construction, our endeavor is to break even at the earliest so that our project is secured.

Jay Shah: Whatever is our outgo, in terms of land acquisition, launch, construction, our endeavor is to break even at the earliest so that our project is secured, and thereafter we play on margin. And that strategy has played out well in the past, and we will continue to do that. We are not going to change our strategy in terms of focus on net cash flow.

Speaker #3: And thereafter, we play on margin. That strategy has played out well in the past, and we will continue to do that. So we are not going to change our strategy in terms of focus on net cash flow.

Speaker #4: Thank you, and best wishes. Thank you.

[Analyst] (iSAT Printed Private Limited): Thank you, and best wishes.

Speaker #1: Yeah, thank you. The next question is from the line of Bhavesh from Whitestone Financial Services. Please proceed.

Keyur Shah: Thank you.

Operator: Thank you. The next question is from the line of Bhavesh from White Stone PMS. Please proceed.

Speaker #3: Hello. Hi, Bhavesh. Yeah, my question is on two points.

[Company Representative] (White Stone PMS): Hello.

K. T. Jithendran: Hi, Bhavesh.

[Company Representative] (White Stone PMS): Yeah. My question is on two points.

Speaker #4: Bhavesh, we cannot hear you. Your voice is very faint. Can you hear me now?

Keyur Shah: Bhavesh, we cannot hear you.

K. T. Jithendran: The voice is very faint.

[Company Representative] (White Stone PMS): Can you hear me now?

Speaker #3: Yeah. It's better.

K. T. Jithendran: Yeah, it is better.

Speaker #4: Yeah, so my question is on the commercial property development side on Worli land. So, in our earlier plan, we had around 6.5 million square feet of FSI, right?

[Company Representative] (White Stone PMS): Yeah. My question is on commercial property development side on Worli land. In our earlier plan, we had around 65 lakh square feet of FSI. Out of this, we are planning 10 lakh square feet of commercial property. You said in earlier answer. Is it right?

Speaker #4: So, out of this, we are planning 1 million square feet of commercial property—you said in an earlier question and answer. Is that right?

Speaker #3: Yeah, right. About 1.3 million is our allocation right now for commercial. We may change it or modify it later, depending on how we see the demand framing.

K. T. Jithendran: You are right. About 1.3 million is our allocation right now for commercial. We may change it, modify it later, depending on how we see the demand.

[Company Representative] (White Stone PMS): And you are also evaluating partnership with IFC or MUFG, whichever-

Speaker #4: And you are also evaluating a partnership with IFC or MUFG, whichever institutional partner.

K. T. Jithendran: Yeah.

[Company Representative] (White Stone PMS): -institutional partners.

Speaker #3: Yeah, yeah. We haven't decided who yet. Yeah.

K. T. Jithendran: Yeah. We haven't decided who yet, yeah.

Speaker #4: Yeah. And one more question was regarding Niyara One and Niyara Two. How many flats have been sold to date, after these cancellations and all?

[Company Representative] (White Stone PMS): Yeah. One more question was regarding Birla Nyara 2. How many flats are sold till date after this cancellation and all?

Speaker #3: 117 is net. 118. Sorry, 118. 118.

K. T. Jithendran: 117 is the net.

Keyur Shah: 170.

Keyur Shah: 118. Sorry, 118.

Speaker #4: Right. Perfect. Perfect. Thank you very much. Yeah.

Keyur Shah: Right. Perfect. Thank you very much. Yeah.

Speaker #1: Thank you. The next question is from Akash Gupta of Nomura. Please proceed.

Operator: Thank you. The next question is on the line of Akash Gupta from Nomura. Please proceed.

Speaker #3: Yeah.

K. T. Jithendran: Yeah.

Speaker #4: Hi, am I audible? Hi, sir. Sir, again, I just wanted to have your thoughts on business development. Frankly, Birla Estates has lagged peers in business development over the last one and a half years.

Akash Gupta: Hi, am I audible?

K. T. Jithendran: Yes, Akash.

Akash Gupta: Hi, sir. Sir, again, just wanted to have your thoughts on business development. Frankly, Birla Estates has lagged peers in business development over the last one and a half years. These peers have also closed deals which are at fairly similar margins. Cash has never been a problem for us. I just wanted to understand that why have we lagged on business development versus peers over the last one and a half years? Is there something different that we are looking for or are we being too conservative at the risk of growth? Just the thought process there.

Speaker #4: And these peers have also closed deals which are at fairly similar margins. Cash has never been a problem for us. So I just wanted to understand, why have we lagged on business development versus peers over the last one and a half years?

Speaker #4: Is there something different that we are looking for, or are we being too conservative at the risk of growth? Just wanted to understand the thought process there.

Speaker #3: Yeah. So, as I mentioned, there is no dearth of deals. We have a, you know, stable framework which we have maintained. So our risk management framework has been pretty robust and strong.

K. T. Jithendran: Yeah. As I mentioned, there is no dearth of deals. We have a stable framework which we have maintained. Our risk management framework has been pretty robust and strong, and we completely believe in that. I think it is very essential, in a cyclical industry, where we don't know when the markets will change. The due diligence has to stand the test of time and cycles. From that point of view, if you are challenging, saying that we have been lagging for the last one and a half years, I would also like to point out, if you look at a larger framework, we have a pipeline of over INR 70,000 crores of GDV, of which, of course, 32,000 is launched, but still we have 42, and we are adding prudently every year.

Speaker #3: And we completely believe in that, and I think it is very essential in a cyclical industry where we don't know when the markets will change.

Speaker #3: The due diligence has to stand the test of time and cycles. And from that point of view, if you are challenging, saying that we have been lagging for the last one and a half years, I would also like to point out, if you look at a larger framework, we have a pipeline of about ₹70,000 crore of GDV, of which, of course, ₹32,000 crore is launched, but still, we have ₹42,000 crore, and we are adding prudently every year.

Speaker #3: So I really don't want to pitch myself and say that I am lagging somebody in the last six months or one year or so.

K. T. Jithendran: I really don't want to pitch myself and say that I am lagging somebody in the last six months or one year or so. What we have to look at in a business like real estate is really long-term. In the long term, how are we adding value? How are we creating value? Also minimizing value destruction. Sometimes when cycles go the other way, we have to also ensure that there is not substantial value destruction. All of that points are very important. It's very much possible in real estate when cycles change, that would be violent, volatile changes, which can take the entire company down. We have been very careful and prudent from that point of view. If you're asking me are we too conservative? I don't think so. I think I would rather choose the word prudent.

Speaker #3: What we have to look at in a business like real estate is really the long term. So, in the long term, how are we adding value?

Speaker #3: How are we creating value? And also minimizing value destruction. Sometimes, when cycles go the other way, we are also ensuring that there is not substantial value destruction.

Speaker #3: So, all of those points are very important. And it's very, very much possible in real estate—when cycles change—that there could be violent, volatile changes, which can take the entire company down.

Speaker #3: So, we have been very careful and prudent from that point of view. If you're asking me, are we too conservative? I don't think so.

Speaker #3: I think I would rather choose the word 'prudent.'

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

Akash Gupta: Understood, sir. Thank you so much.

Speaker #1: Thank you. The next question is from Swetcha Jain of ENS Wealth. Please proceed.

Operator: Thank you. The next question is on the line of Swecha Jain from ENS Wealth. Please proceed.

Swecha Jain: Hi, sir. Thank you for giving this opportunity. Sir, most of my questions are answered. However, I have a few questions. Sir, one thing was regarding the commercial real estate. I also wanted to understand, are we also looking at the redevelopment of Century Bhavan and Birla Centurion?

Speaker #5: Hi, sir. Thank you for giving me this opportunity. So, most of my questions have been answered. However, I have a few questions. One thing was regarding the commercial real estate.

Speaker #5: I also wanted to understand, are we also looking at, you know, the redevelopment of Century Bhavan and Birla Centurion?

Speaker #3: Oh, Birla Centurion is a relatively new building. So, okay.

K. T. Jithendran: Birla Centurion is a relatively new building.

Swecha Jain: Okay. That will not go under redevelopment.

Speaker #5: Yeah, so that will not go under redevelopment.

Speaker #3: Yeah, yeah, yeah, for sure, though not in the near future. Yeah, Birla Century Bhavan—of course, that's a very strong possibility. We are evaluating and looking at the possibility of that.

K. T. Jithendran: Yeah. Surely not in the near future.

Swecha Jain: Okay.

K. T. Jithendran: Yeah. Birla Century Bhavan, of course. That's a very strong possibility. We are evaluating and looking at the possibility of that.

Speaker #5: Okay. So, on the commercial real estate that you mentioned in the earlier comment, that you're looking to develop this year, what is going to get under redevelopment?

Swecha Jain: Okay. On the commercial real estate that you mentioned in the earlier comment that you're looking to develop this year, what is going to get under redevelopment? Not the Century Bhavan, is it?

Speaker #5: Not the Century Bhavan, is it?

Speaker #3: No, I would say I'm not talking about redevelopment. I was talking about building— I mean, starting, commencing construction or development of a million square feet in Birla Niyaara.

K. T. Jithendran: No, I was not talking about redevelopment. I was talking about commencing construction or development.

Swecha Jain: Okay

K. T. Jithendran: of a million square feet in Birla Niyaara. A completely new.

Speaker #3: A completely new.

Swecha Jain: Okay. Completely new.

Speaker #5: Okay. Okay. Completely new. So our older commercial real estate that we have—are we looking to redevelop those buildings?

K. T. Jithendran: Yeah.

Swecha Jain: Our older commercial real estate that we have, are we looking to redevelop those buildings?

Speaker #3: Not in the near future. We have two commercial buildings: Birla Aurora and Birla Centurion. Together, they're giving us roughly about ₹140 to ₹150 crores of annual income.

K. T. Jithendran: Not in the near future.

Swecha Jain: Okay.

K. T. Jithendran: We have two commercial buildings, Birla Aurora, Birla Centurion. Together, they are giving us roughly about INR 140 to 150 crores of annual income. They are fully occupied, 100% occupancy, and there is no reason, and these are not very old buildings. We are not really looking at redevelopment of these buildings in the near future. The only possibility is Century Bhavan, which is a very old building.

Speaker #3: They are fully occupied—100% occupancy. And there is no reason, and these are not very old buildings. So we're not really looking at redevelopment of these buildings in the near future.

Speaker #3: The only possibility is Century Bhavan, which is a very old building.

Swecha Jain: Okay.

Speaker #5: Okay. Okay.

Speaker #3: Yeah. Otherwise, you know, our current focus will be on constructing a new office building in Birla Niyara. Yeah, plot. Yeah. And also, we are looking for other opportunities outside.

K. T. Jithendran: Yeah. Otherwise, our current focus will be on constructing a new office building in the Birla-

Swecha Jain: Nyara

K. T. Jithendran: Nyara.

Swecha Jain: Right.

K. T. Jithendran: Yeah, plot.

Swecha Jain: Okay.

K. T. Jithendran: Also we are looking for other opportunities outside. We are looking at good opportunities or acquiring new lands for commercial development in Mumbai, NCR, all of these.

Speaker #3: We are looking at good opportunities for acquiring new lands for commercial development in Mumbai, NCR, and all of these.

Speaker #5: Understood. And so, post the ITC money that we've received, how much is the net debt?

Swecha Jain: Understood. Sir, post the ITC money that we received, how much is the net debt?

Speaker #3: Our net debt, as I mentioned earlier, is virtually zero.

Keyur Shah: Our net debt, as I mentioned earlier, is virtually zero.

Swecha Jain: Okay.

Speaker #5: Okay.

Speaker #3: So, in that sense, we don't have much debt remaining.

Keyur Shah: So in that sense, we do not have much debt remaining.

Speaker #5: Understood. Understood.

Speaker #3: Gross debt will remain because we have construction finance and long-term NCDs, et cetera, which cannot be paid off. But net debt is virtually zero.

Swecha Jain: Understood.

Keyur Shah: Prospect will remain because we have construction finance and long-term NCDs, et cetera, which cannot be paid off, but net debt is virtually zero.

Speaker #5: Okay, understood. And KT, sir, I know I've heard a lot of people, you know, expressing their views and concerns on the BD, and I also have a similar question along these lines.

Swecha Jain: Okay. Understood. KT, sir, I know I have heard a lot of people expressing their views and concerns on the BD, and I also have similar question on this line. While I have heard you saying that we are not conservative, we are prudent, and I completely understand that. You also mentioned that there are various aspects that we look at, whether it is the product, the right pricing, and I understand all of that, but I just wanted to understand the thought process that we as a group think of because INR 60,000 crore is a big pipeline, which is really commendable that we are working on that. But at the same time, when we look at the numbers, essentially, we have really not done anything in past one and a half year, and I think that is where other people on this call also have some kind of questions regarding this.

Speaker #5: You know, while I've heard you saying that, you know, we are not conservative—we are prudent. And I completely understand that. And you also mentioned that, you know, there are various aspects that we look at.

Speaker #5: You know, whether it's the product, the right pricing, and I understand all of that. But I just wanted to understand the thought process. You know, that we as a group you know, think of because 60,000 crore is a big pipeline, you know, which is really commendable that we are working on that.

Speaker #5: But at the same time, you know, when we look at the numbers, you know, essentially we've really not done anything in past one and a half year and I think that's where you know, other people on this call also have some kind of you know, questions regarding this.

Speaker #5: So I really want to understand you know, out of so many parameters, what is that one thing you know, something must be really stopping us in you know, signing that you know, deal.

Swecha Jain: I really want to understand, out of so many parameters, what is that one thing? Something must be really stopping us in signing that deal. Just want to understand your thought process. We all have 100% trust on you, on the company, and we are doing commendable job on all aspects. This is something which I think all of us are just waiting to have those tie-ups, and we are just waiting to have that thing. Just wanted to understand from you, what is it that is the most concerning for us when we say a yes or a no for a deal?

Speaker #5: So, I just want to understand your thought process. You know, because we all have 100% trust in you, in the company, and we are doing a commendable job on all aspects, you know.

Speaker #5: But this is something which is something which I think all of us are just you know, waiting to have those tie ups and we are just waiting to you know, to have that thing.

Speaker #5: So just wanted to understand from you, you know, what is it that is the most concerning for us you know, when we say a yes or a no for a BD, you know.

K. T. Jithendran: Thank you for your confidence in us. Really appreciate that. There is no one thing. It is actually the one thing that I ask all of you is to have patience. That is the only one thing I ask. We are pursuing several strong deals, and we are confident of closing them. All these deals requires patience. Some of them we have been negotiating for more than 18 months, 24 months. We are doing due diligence. It is not the commercials have been closed, but

Speaker #3: Thank you for the confidence in us. Really appreciate that. There is no one thing. It's actually, you know, the one thing that I ask all of you is to have patience.

Speaker #3: There's only one thing I ask you. We are, you know, pursuing several strong deals, and we are confident of, you know, closing them.

Speaker #3: But all these deals require patience. Some of them we have been negotiating for more than 18 months, 24 months. We're doing due diligence. It's not that the commercials have been closed, but due diligence.

K. T. Jithendran: due diligence. We all understand

Speaker #3: You know, all these, you know—anyway, we all understand that if the land parcels are large, there are issues. Land parcels may have litigation.

Swecha Jain: Yeah

K. T. Jithendran: land parcels are large. There are issues. Land parcels may have litigation, some of them may have NCLT. Most important for us is the right location, the right micro-market.

Speaker #3: Some of them may have an NCLP. So, most important for us is the right location, the right micro-market, and the right access. Yeah. And if it is a JDA, the right partner—and understanding and building that trust and ensuring that the agreement is closed in the right way.

K. T. Jithendran: The right access. Yeah. If it is a JDA, the right partner, understanding and building that trust, and ensuring that the agreement is closed in the right way. It is not just one factor, it is a combination of few factors. All of them have to come together. The only thing I can say is that our financial resource is just not a constraint at all. We have plenty of that. The brand is strong. We have to make sure that the location that we get into is commensurate with the stature of the brand.

Speaker #3: So, it's not just one factor. It's a combination of a few factors. All of them have to come together. The only thing I can say is that, you know, financial resources are just not a constraint at all.

Speaker #3: We have plenty of that. The brand is strong. We have to make sure that the location that we, you know, get into is commensurate with the stature of the brand.

Speaker #3: So that's all that, at this point in time, you know.

K. T. Jithendran: That is all that at this point of time.

Swecha Jain: Okay.

Speaker #5: Okay. Okay. And so just one clarification. The 10,000 to 15,000 crore is this year's target is what we have internally, right? Okay.

K. T. Jithendran: I want to assure you.

Swecha Jain: Okay. Sir, just one clarification. The INR 10,000 to INR 15,000 crore is this year's target is what we have internally, right?

Speaker #3: Yes. Absolutely. Absolutely.

K. T. Jithendran: Absolutely.

Swecha Jain: Okay.

K. T. Jithendran: Absolutely.

Speaker #5: Okay. Okay. Okay. Thank you, sir. Really appreciate this. Thanks. Thank you. The next question is from the line of Kanal from Atlas. Please proceed.

Swecha Jain: Okay. Thank you, sir. Really appreciate this. Thanks.

Operator: Thank you. The next question is from the line of Kunal from Atlas. Please proceed.

Speaker #6: Hi. Am I audible?

[Analyst] (Atlas): Hi. Am I audible?

Speaker #3: Yeah. Yeah. You are. Kunal.

K. T. Jithendran: Yeah, you are, Kunal.

Speaker #6: Okay. My first question is: Is the Noida 150 land now completely out of the picture?

[Analyst] (Atlas): Okay. My first question is the Noida 150 land now completely out of picture?

Speaker #3: Yes, it is.

K. T. Jithendran: Yes, it is.

Speaker #6: Okay, thank you. And my second question is regarding Niyara Tower C. Your presentation mentions the total BDV and the saleable area there. It roughly translates to ₹69,000 per square foot.

[Analyst] (Atlas): Okay. Thank you. My second question is regarding Birla Nyara Tower C. Your presentation mentions the total GD on the saleable area there. It roughly translates to INR 69,000 per square feet. Is that a reasonable approximation for the launch price?

Speaker #6: So, like, is that a reasonable approximation for the launch price?

Speaker #3: So I am it's too early to talk about a launch price, but tentatively it will be in the range of about 1 lakh to 1 lakh 20,000 rupees.

K. T. Jithendran: It is too early to talk about a launch price, but tentatively it will be in the range of about INR 1 lakh to INR 1.20 lakh per square foot.

Speaker #3: Per square foot.

Speaker #6: So that means that the total GDV would be revised then, because based on the presentation, I think it's mentioned.

[Analyst] (Atlas): So that means that the total GDV would be revised then, because based on the presentation says-

K. T. Jithendran: This is the saleable area. I am talking on carpet area.

Speaker #3: The saleable area. Now, I'm talking about carpet. I'm talking about carpet area. This is on saleable area. Yeah, so I think this is right.

[Analyst] (Atlas): Okay.

K. T. Jithendran: This is on saleable area. So I think this is right.

Speaker #6: Okay. And my third question is regarding the possession timeline for Tower 1. So, can you give us, like, a narrowed down timeline—perhaps to a specific quarter—when you expect the possession for Tower 1?

[Analyst] (Atlas): Okay.

K. T. Jithendran: Yeah.

[Analyst] (Atlas): My third question is regarding the possession timeline for Tower 1. So, can you give us a narrowed down to a quarter when you expect the possession for Tower 1?

Speaker #3: Yeah. So, we are within the RERA timelines of March 2028. Hopefully, by Q3 2027 we should be ready to hand over. But handover will take its time.

K. T. Jithendran: Yeah. We are within the RERA timelines of March 2028. Hopefully by 2027 Q3, we should be ready to hand over. But hand over will take its time. Hand over, people come in inspecting and all that. So it will be in that period only, Q4 2028.

Speaker #3: You know, handover people come in, inspecting and all that. So it will be in that period only—Q4 2028.

Speaker #6: Okay. And what margins do you expect for Tower 1?

[Analyst] (Atlas): Okay, and what margins do you expect for Tower 1?

Speaker #3: Margins. Margins are very healthy. I mean, I don't want to disclose now, but it's all in here. The margins are in the range of about 40 to 50 percent.

K. T. Jithendran: Margins are very healthy. I do not want to disclose now, but here the margins are in the range of about 40% to 50%.

Speaker #3: 40 plus.

[Analyst] (Atlas): Okay.

K. T. Jithendran: 40% plus.

Speaker #6: Thank you.

[Analyst] (Atlas): Thank you.

Speaker #5: Thank you. The next question is from the line of Himanshi Zaveri, an investor. Please proceed.

Operator: Thank you. The next question is from the line of Himanshu Javeri, Individual Investor. Please proceed.

Speaker #6: Yeah. Hi Katie.

Himanshu Javeri: Yeah. Hi, KT.

Speaker #3: Hi. Hi Himanshi.

K. T. Jithendran: Hi, Himanshu.

Speaker #6: So, my particular question is about the NCR market. How do you see the market in terms of pricing and all that? Because what I have seen is that, in particular areas of the market, the prices have heated up quite a lot.

Himanshu Javeri: My particular question is about the NCR market. How do you see the market in terms of the pricing and all that? Because what I feel is that the particular areas in the market, the prices are heated up quite a lot. What is your view on the Noida market also? Because there I find a lot of shortage of land from what I hear from the sources.

Speaker #6: And what is your view on the Noida market also? Because there I find a lot of shortage of land, from what I hear from the sources.

Speaker #3: Okay. I think NCR market has some fraud. But if you it's a combination if you get the right pricing and the right sizing as I always mentioned, backed by a strong brand and good location, I think you know, you can do very well.

K. T. Jithendran: Okay. I think NCR market has some froth, but it is a combination. If you get the right pricing and the right sizing, as I always mentioned, backed by a strong brand and good location, I think you can do very well. We have three projects in Gurgaon. All three have done exceedingly well. It has been our best performing market for us among all markets, Gurgaon. I strongly believe in that market. But we will be careful in choosing what I mentioned. All the four factors, we have to get it right. There have been very fantastic launches in the last quarter also by some of our real estate other companies. I am very excited by this market.

Speaker #3: We have, you know, three projects in Gurgaon, all three of them performing exceedingly well. It has been our best performing market among all markets.

Speaker #3: Gurgaon. And I strongly believe in that market. But we have to be careful in choosing—what I mentioned, all the four factors, you have to get right.

Speaker #3: There have been some very fantastic launches in the last quarter by a number of other real estate companies. So, I am very excited about this market.

Speaker #3: The market has a fair share of investors, but I think, given the urbanization, given the demand for larger apartments, and the growth of wealth in that segment, I see very exciting potential for premium housing in that market.

K. T. Jithendran: Market has a fair share of investors, but I think given the urbanization, given the demand for larger apartments and the growth of wealth in that segment, I see very exciting potential for the premium housing in that market. Noida, of course, as you very rightly mentioned, there is absolutely no supply of land and the demand is huge, the lack of quality players. I think it is one market which I would love to get into. We are trying very hard, hoping that we will succeed sooner than later. But I think that is also a very exciting market.

Speaker #3: Noida, of course, as you very rightly mentioned, has absolutely no supply of land, and the demand is huge. There is a lack of quality players. So I think it's one market which I would love to get into.

Speaker #3: We are trying very hard, hoping that we'll succeed sooner rather than later. But I think that is also a very, very exciting market.

Speaker #6: And Katie, just to have your view, are we also participating in some of the auctions where, you know, there are huge land parcels available?

Himanshu Javeri: KT, just to have your view, are we also participating in some of the auctions where there are-

K. T. Jithendran: We are

Himanshu Javeri: huge land parcels available?

Speaker #3: We are. Yeah. Yeah. Because I think, because of the dearth of land, I think we have to participate, and the best way to get land in Noida.

K. T. Jithendran: Yeah. Because of the dearth of land, I think we have to participate, and the best way to get land in Noida. Not just in Noida, we are also looking for opportunities to participate in Gurugram.

Speaker #3: Not just in Noida; we are also looking for opportunities to participate in Gurgaon.

Speaker #6: So, I don't want to compare with other companies, but just to understand, like in auctions, obviously you have to bid a very fair and high price to get the land, right?

Himanshu Javeri: I don't want to compare with other companies, but just to understand, auctions, obviously, you have to bid for a very fair and a high price to get the land, right? But then we are just maybe falling a little bit short here and there for the huge land parcel. Because one or two good deals, and then we are through with the BD deals in Gurugram.

Speaker #6: But then we are just maybe falling a little bit short here and there for the huge land parcels, right? Because one or two good deals, and then we are through, you know, with the BD deal in Gurgaon.

Speaker #3: Yeah, yeah. So, yeah, as within our, you know, framework, what we think is the right pricing, we will put our best foot forward.

K. T. Jithendran: Yeah. So within our framework, what we think is the right pricing, we will put our best foot forward.

Speaker #6: Okay. And just about the Century Bhavan 1, Katie, are we planning for commercial or residential?

Himanshu Javeri: Just about the Century Bhavan one, KT, there we are planning commercial or residential?

K. T. Jithendran: Largely, I think the location commands a commercial presence, so that is what we would aim for. But we are weighing all options.

Speaker #3: I mean, largely, I think the location commands commercial presence, so that's what we would aim for. But we are weighing all options.

Speaker #6: So, just asking because just two buildings away, the Oberoi 360 residential one has done amazing, you know?

Himanshu Javeri: No, just asking because just two buildings away, the Oberoi Three Sixty West residential one has done amazingly.

K. T. Jithendran: Mm-hmm. I know. This is part of the commercial complex. This is a smaller plot. We are weighing all of that.

Speaker #3: Mm-hmm, I know. But this is part of the commercial complex. This is a smaller plot, so yeah. So we are weighing all of that.

Speaker #6: Okay. And any news on the Prabhadari land, where we have a smaller parcel, which is very sea-facing?

Himanshu Javeri: Okay. Any news on the Prabhadevi land, which we have a smaller parcel, which is a very strategic area?

Speaker #3: No, not in the annual now. Not in the annual round.

K. T. Jithendran: No, not in the annual now.

Speaker #6: At a later date, right?

Himanshu Javeri: At a later date, right?

Speaker #3: Can't talk about it now.

K. T. Jithendran: Can't talk about it now.

Speaker #6: Okay, thank you, Katie. That's all.

Himanshu Javeri: Okay. Thank you, KT. That's all.

Speaker #3: Thank you.

K. T. Jithendran: Thank you.

Speaker #5: Thank you. That was the last question for today. Aina, I hand the conference over to the management for the closing comments. Over to you, sir.

Operator: Thank you. That was the last question for today. I now hand the conference over to the management for the closing comments. Over to you, sir.

Speaker #6: Thank you. We enjoy a strong balance sheet and a resilient portfolio, along with continued customer confidence. We are well positioned to pursue the opportunities ahead. Thank you.

AK Dalmiah: Thank you. With a strengthened balance sheet and a resilient portfolio and continued customer confidence, we are well-positioned to pursue the opportunities ahead. Thank you everyone for your time attending today's call. We are truly excited for the times to come, and look ahead to reach you again with a lot of more news in our next call. Once again, thank you very much, and appreciate your all-time support and understanding for the success of our business. Thank you, and have a good day.

Speaker #6: Thank you, everyone, for your time attending today's call. We are truly excited for the times to come and look ahead to reaching you again with a lot more news in our next call.

Speaker #6: Once again, thank you very much. We appreciate your continued support and understanding for the success of our business. Thank you, and have a good day.

Speaker #5: On behalf of Aditya Birla Real Estate, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Operator: On behalf of Aditya Birla Real Estate, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

AK Dalmiah: Thank you.

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