Operational Highlights

  • Sales bookings for Q1 FY27 stood at 221 units, equivalent to 2.31 lakh square feet, representing a 15% year-on-year growth in area
  • Sales value amounted to INR 173 crores, also showing 15% year-on-year growth
  • Average selling price remained stable at INR 7,500 per square feet, consistent with Q1 FY26
  • Average unit price sold stood at INR 78 lakhs per unit
  • The company received occupancy certificates for four projects: Arihant 5 Anaika, Arihant 6 Anaika, Arihant Anant, and Arihant Aaradhya Phase 1
  • Total completed units ready for possession: 1,495 units
  • Collections for the quarter stood at INR 161 crores, registering 28% yearly growth
  • Gross Development Value (GDV) increased from INR 6,000 crores to INR 14,000 crores over the past five years

Financial Performance (Consolidated)

  • Operating revenue for Q1 FY27: INR 132 crores (9% YoY increase from INR 121 crores)
  • EBITDA: INR 28 crores
  • EBITDA margin: 21%
  • PAT: INR 10 crores
  • PAT margin: 7.4%
  • Net debt as of June 30, 2026: INR 818 crores
  • Net worth: INR 460 crores

Strategic Updates and Business Diversification

  • The company is emerging as a diversified developer beyond pure residential projects
  • Investments in annuity assets include two hotel projects:
  • 5-star hotel at World Villas with land contribution of INR 25-27 crores
  • Second hotel near Imagicaa with land contribution of INR 7-8 crores
  • Both hotels are tied up with Radisson with current occupancy rates of 70-75%
  • Total investment program for hospitality and club business: INR 500 crores over three years
  • Current capital deployed in hospitality: INR 35-40 crores
  • Projected PAT contribution from hospitality: INR 50+ crores per year starting from third or fourth year of operations

Market Outlook and Segment Strategy

  • Premium segment (below INR 5 crores) showing good traction, while higher segments (INR 10-30 crores) facing slowdown
  • Target project mix: 40-45% premium segment, 30-35% middle income group, 20% affordable housing
  • MMR and Mumbai 3.0 market showing positive signs with Navi Mumbai's market share increasing from 12% to 17% over three years
  • Delivery cycle typically 3-5 years depending on project size
  • Plan to deliver 2,500 units by end of FY27

Margin Guidance by Segment

  • Affordable housing projects (below INR 5,000/sq.ft): 9-10% PAT margins
  • Middle-income group projects: 12-15% PAT margins
  • Premium projects: ~20% PAT margins with EBITDA margins of 30-35%
  • Blended PAT margins expected to exceed 20% over a two-year period

Debt and Capital Structure

  • Company comfortable with current debt levels given asset values
  • Debt reduction planned starting next year as residential projects near completion
  • Debt increase offset by new loans for annuity assets
  • Fundraising of INR 36 crores done via preferential allotment in the past
  • No immediate plans for new land acquisitions or capital investments

Regional Focus

  • Company remains focused on MMR and Mumbai 3.0 region, considering it double the size of Mumbai city
  • No plans for geographical diversification to other cities
  • Attributes growth to infrastructure developments including International Airport, Atal Setu, data centers, and GCC job creation

Challenges Mentioned

  • Labor shortages affecting operations
  • Geopolitical tensions impacting input costs
  • Rising construction expenditures
  • Mixed market reviews affecting sales speed

Q&A Session Key Points

  • Pre-sales to revenue conversion timeline: ~90 days average
  • No significant cost reduction expected due to rising HR and construction costs
  • ROCE expected to improve as projects mature and capital reserves increase
  • Debt-to-equity ratio expected to gradually decline as projects mature
  • Company focusing on implementation of existing INR 14,000 crores GDV projects rather than new acquisitions