Ajmera Realty Q1 FY27 Revenue Up 23% YoY

Total Revenue: INR320 crores, up 23% YoY from INR265 crores
EBITDA: INR94 crores, up 18% YoY from INR79 crores
EBITDA Margin: 29%
PAT: INR45 crores, up 14% YoY from INR39 crores
PAT Margin: 14%
Debt Reduction: Reduced by INR57 crores from INR737 crores (March 31, 2026) to INR680 crores (June 30, 2026)
Debt Equity Ratio: 0.47x as of June 30, 2026
Weighted Average Cost of Debt: 11.01% in Q1 FY27

Ajmera Manhattan 1 (Wadala): 93% sold; finishing and MEP work in progress
Ajmera Manhattan 2 (Wadala): >50% sold; excavation work in progress
Ajmera Greenfinity A & B: 94% sold; nearing completion and occupation certificate
Ajmera Vihara (Bhandup): 81% sold; RCC work in progress. Rehabilitation wings completed; sales wing progress in Wing D (4th floor) and Wing E (1st floor)
Ajmera Solis: 86% sold; excavation commenced and progressing. Qualified for revenue recognition for the first time this quarter.
Bandra 33Fifteen (Commercial): 19% sold; piling and shoring progress ongoing
Ajmera One (Versova): 3% sold; work progressing
Ajmera Iris (Bangalore): 90% sold; finishing work in progress, nearing occupation certificate
Ajmera Marina (Bangalore): 69% sold; work commenced up to second slab (basements done, second floor slab in progress)

Received INR89 crores during the quarter from a property sale, part of a planned INR330 crores asset monetization program.
This transaction was a balance sheet item (financial asset) and did not impact P&L.
Another stake sale in a joint venture company was sealed in the first week of July 2026 and will be reported in Q2 FY27.

Wadala Land Bank: Holds an estimated GDV of ~INR18,000 crores.
FY27 Launch Pipeline: ~INR3,000 crores GDV, providing a total GDV opportunity of ~INR21,000 crores.
Asset-Light Project Added: In Bangalore with an estimated GDV of ~INR400 crores.
Revenue Visibility: INR3,846 crores from committed sales (INR1,661 crores) and available inventory (INR2,185 crores).

The Indian real estate sector exhibited strong fundamentals despite a seasonally softer quarter.
Underlying demand remains healthy, driven by infrastructure-led development, urbanization, and a preference for homeownership.
The sector is evolving with buyers prioritizing quality, transparency, and developer credibility.
Healthy office leasing activity is driven by GCCs (Global Capability Centers) and flexible workspace operators.
Management remains optimistic about the sector's long-term prospects due to policy support, infrastructure investment, and a stable interest rate environment.

Status: Actively working on the regulatory land conversion process with the government.
Timeline: Target to achieve conversion in the next 2-3 months, confident it will happen before a December deadline.
Monetization Strategy: Active talks ongoing with potential partners for both outright sale and joint venture (JV) deals. All discussions are contingent upon the land conversion being completed to realize better value.
The entire 7-acre parcel is intended to be a single deal.

Master planning is frozen. Phase 2 technical evaluation and infrastructure work planning are underway.
Launch is planned for FY28.

Boutique Office Launch: Confidence was expressed for a Q3 FY27 launch of ~8-8.5 lakh sq. ft. (INR~3,600 crores GDV), increased from earlier plans due to an additional ~1 million sq. ft. of FSI approval.
Demand Rationale: Strong demand is anticipated due to GCC growth, data center evolution, and Wadala's strategic connectivity to the new airport and BKC.
Other Launches: Some project launches (e.g., Borivali, Pune) have been moved from Q3/Q1 to Q4 FY27 primarily due to regulatory issues and a strategic decision to launch at the plinth level for better pricing and demand.

Q1 FY27 sales were subdued (3% sold). This is attributed to the project being in the excavation stage and the luxury segment typically seeing stronger demand once superstructure progress (RCC level) is visible.
Management is not pushing for desperate sales and expects traction to improve significantly in the next financial year (FY28) as superstructure work progresses.

The quarter-on-quarter increase in consolidated interest cost (from INR21 crores to ~INR30 crores) is attributed to the Ajmera Solis project qualifying for revenue recognition for the first time.
This led to the entire accumulated cost pool, including significant interest costs from high-cost PE debt used for acquisition, being debited to the P&L.
Management expects finance costs to normalize and gradually reduce in subsequent quarters as marginal loans at lower costs replace the high-cost debt.

The SV Concrete project in Bangalore was removed from the launch pipeline and replaced by a new asset-light project in Whitefield (INR389 crores GDV), which is part of the INR1,800 crores business development guidance and is aspired for launch in Q4 FY27.
The change was due to a reevaluation, and the SV Concrete project will no longer be pursued.

While the current Debt Equity ratio is 0.47x, management expects it to increase towards the guided 1x by FY27-end due to pre-RERA capital requirements for the robust launch pipeline.
They anticipate returning to a deleveraging path post-launch as working capital loans get utilized and sales velocity improves.