Management Participants

The call was led by Mr. Dhaval Ajmera (Director, Corporate Affairs), Mr. Nitin Bavisi (Chief Financial Officer), and Mr. Gaurang Chotalia (Head, Investor Relations).

Opening Remarks and Sector Context

Mr. Dhaval Ajmera opened the call by contextualizing FY26 as a year of managing volatility from the India-Pakistan war-like situation, U.S. tariffs uncertainty, and Middle East geopolitical tensions. He noted that despite these global headwinds, India's economic fundamentals remained strong, supported by RBI's growth-supportive stance, government infrastructure spending, and GST rationalization. The residential real estate market was driven by luxury housing and township developments, while the office market recorded its strongest year.

Company Performance Highlights (FY26)

The past five years (FY21-FY26) marked a transformation for the company:

  • Net Profit grew 5.1x to INR 157 Crore, a 38% CAGR.
  • Revenue surged 3.1x to INR 1,098 Crore.
  • EBITDA grew 3.0x to INR 306 Crore.
  • Average Realization scaled to INR 25,770 per square foot from INR 12,083 in FY21.
  • Debt-to-Equity ratio was reduced from 1.13x to 0.53x.

Operational Performance (FY26)

  • Presales: Achieved a record INR 1,701 Crore, surpassing the guidance of INR 1,600 Crore and representing 57% YoY growth. 82% of presales came from 4 new launches.
  • Collections: Record collections of INR 1,103 Crore, up 71% YoY.
  • Business Development: Added 5 asset-light projects with a total GDV of INR 2,433 Crore.
  • Collection Efficiency: Improved to 65% from 60% in FY25.

Project-wise Update

New Launches (FY26):

  • Ajmera Manhattan 2 (Wadala): 48% inventory sold.
  • 33Fifteen (Bandra, Commercial): 17% inventory sold.
  • Solis (Vikhroli): 86% inventory sold in Phase 1.
  • Vann by Ajmera (Versova): Launched in Q4 FY26; first premium luxury collective project.

Ongoing Projects:

  • Ajmera Manhattan 1 (Wadala): ~90% sold; RCC completion in Tower A & B.
  • Ajmera Greenfinity: 94% sold; MEP finishing in progress; awaiting OC.
  • Ajmera Vihara (Bhandup): 81% sold; 21st floor slab cast in rehab building.
  • Ajmera Iris (Bengaluru): 88% sold.
  • Ajmera Marina (Bengaluru): Launched Q4 FY25; 69% sold; first floor slab in progress.

Financial Performance (FY26)

  • Total Sales Revenue: INR 1,098 Crore (46% YoY growth).
  • EBITDA: INR 306 Crore (25% YoY growth).
  • PAT: INR 157 Crore (24% YoY growth).
  • Total Debt: Stood at INR 737 Crore as of March 31, 2026.
  • Weighted Avg. Cost of Debt: 11.15% in FY26 vs. 12.20% in FY25.

Revenue Visibility and Pipeline

  • Current Visibility: INR 4,108 Crore (INR 1,837 Crore from committed sales + INR 2,270 Crore from unsold inventory).
  • Launch Pipeline: INR 6,324 Crore GDV planned for FY27.
  • Total Visibility: INR 10,432 Crore.
  • Estimated Net Cash Flow (pre-tax, pre-cost debt): INR 3,150 Crore from OC and ongoing portfolio.

Guidance and Strategy for FY27

  • Presales Target: ~INR 2,200 Crore.
  • Project Additions Target: INR 1,800 Crore (highly selective).
  • Debt-to-Equity Guidance: To move to 1.00x to support growth.
  • The strategy will be spearheaded by unlocking the Wadala land bank (estimated GDV: INR 13,194 Crore).

Q&A Highlights

Kanjurmarg Land:

  • The process to convert the land from leasehold to freehold is ongoing; applied for conversion awaiting regulatory approvals.
  • The launch, initially planned for Q4 FY26/Q1 FY27, is now anticipated in H2 FY27 post-conversion and securing IOD/environmental clearances.
  • The delay is attributed to a strategic decision to launch post-conversion for greater customer comfort, though launching on leasehold is permissible.
  • The master planning is complete, and construction of mandatory police housing has started.
  • The company is in discussions for an SPV-level equity tie-up to fund the project, which includes residential, commercial, and retail components.
  • Outright sale of 7 acres is under discussion but not finalized.

Other Projects:

  • Boutique Offices (Wadala) & Manhattan Phase 3: Targeted for launch in Q3 FY27.
  • Vann (Versova): A luxury project with an average carpet size of 1,700-1,800 sq. ft.; sales velocity is expected to be steady, not rapid, typical for the luxury segment.

Market & Demand:

  • Management does not see AI disruption hampering real estate demand, which is driven by end-use.
  • Customer decision-making has become more cautious and elongated (30-45 days to 40-60 days) due to geopolitical scenarios, but inherent demand remains.
  • In Wadala, the company benefits from its township development model. Average selling prices are INR 37,000/sq. ft. in Manhattan 1 and INR 35,000/sq. ft. in Manhattan 2, with an aim for 10-15% yearly price increases.

Financials:

  • The increase in Property, Plant & Equipment (from INR 35 Cr to INR 64 Cr) is primarily due to the capitalization of Mivan shuttering for multiple projects.
  • The company has an unsold inventory of INR 2,200 Crore.
  • Committed sales (revenue pending) stand at INR 1,850 Crore.