Financial Performance Highlights

Q4 FY26 Performance:

  • Revenue: ₹122 crores, representing 33% sequential growth
  • EBITDA: ₹98 crores with EBITDA margins of 80.7%
  • PAT: ₹61 crores with PAT margins of 50%

Full Year FY26 Performance:

  • Revenue: ₹539 crores
  • PAT: ₹316 crores

Dividend Declaration:

The Board of Directors recommended a dividend of 15% (₹1.5 per share) based on strong cash flows.

Business Context and Market Overview

Management characterized FY26 as a "transition year" marked by geopolitical challenges (West Asia crisis) and economic uncertainties that increased input costs. The year represented a strategic shift from being primarily a land-rich real estate developer to building an integrated development platform across commercial, residential, township, and annuity-led businesses.

Ahmedabad market dynamics highlighted:

  • Ahmedabad remains among India's most affordable major housing markets
  • Strong infrastructure-led growth driven by GIFT City, metro expansion, and urban development
  • Luxury housing becoming the fastest-growing segment
  • Residential launches reached 6,745 units in Q1 2026 (29% YoY increase)
  • Key growth corridors: SG Highway, SP Ring Road Belt, Gandhinagar GIFT belt

Project Updates and Operational Highlights

Million Minds Tech City:

  • Phase 1 inaugurated by Union Home Minister Shri Amit Shah
  • Development over approximately 65 acres with long-term potential of over 18 million square feet
  • Phase 1 leasable area: 0.85 million square feet
  • 60-65% of leasable area already leased or in final stages of negotiation
  • Expected annual lease revenues: ₹72-77 crores upon stabilization
  • Lease rentals expected to commence from Q3 FY27 (October 2026)
  • Fitouts progressing well with multifold increase in inquiries post-inauguration (May 17)

Malabar Retreat:

  • Project approximately 79% complete
  • Overall project value: ₹450 crores
  • Bookings and sales commitments: ₹175 crores (growing daily)
  • Expected completion and handover by FY27 end
  • Revenue recognition will occur upon project completion (completed contract method)

One 91 Thaltej:

  • In planning and design approval stages (advanced stage)
  • Expected sales value: ₹2,100 crores
  • Project cost: ₹1,500 crores (including land cost, mostly paid)
  • Specific details to be provided in Q1 FY27 results

Land Bank and Monetization:

  • Total strategic land reserves: 518 acres across high-growth corridors in Ahmedabad
  • Godhavi Township: 46 acres monetized at average realization of ₹14.1 crores per acre
  • Remaining land at Godhavi: 411 acres with significant appreciation potential
  • New land acquisitions of approximately 7 acres in Q4 FY26
  • Additional acquisitions underway in "most happening places" of Ahmedabad

Capital Structure and Financing

  • Balance sheet described as "robust" with extremely comfortable gering (among lowest in sector)
  • Utilized moderate project-level borrowings during the year to support expansion
  • In March 2026, took ₹150 crores LRD-based loan against Million Minds LOIs
  • Short-term borrowings of ₹149 crores from group companies/entities
  • Funding strategy for future projects: Combination of internal accruals and prudent debt
  • Construction of Million Minds Phase 1 funded entirely from internal accruals

FY27 Outlook and Guidance

Management indicated FY27 will be "operationally very important" with:

  • Commencement of lease rentals from Million Minds Phase 1
  • Completion of Malabar Retreat and booking of sales
  • Further monetization of appropriate land parcels
  • Launch of Million Minds Phase 2 (commercial) in Q2 FY27
  • Launch of residential project in Million Minds in Q3 FY27
  • Formal revenue/EBITDA guidance to be provided with Q1 FY27 results

Strategic Initiatives

  • Transition towards annuity income model with recurring lease rentals complementing development income
  • Focus on premium housing projects rather than affordable housing
  • Disciplined land monetization strategy focusing on value creation rather than volume
  • Potential evaluation of REIT structure for Million Minds after 1-2 years of stabilized operations
  • Possible joint development opportunities for Godhavi land parcel with quality partners

Q&A Session Key Points

  • Management addressed concerns about delayed project launches, attributing to careful planning and configuration optimization
  • Explained that land monetization represents a strategic vertical alongside project development
  • Discussed embedded value potential of remaining 411 acres at Godhavi Township
  • Confirmed no revenue recognition yet for Malabar Retreat (will occur upon completion)
  • Detailed free cash flow potential of ₹9,950 crores from planned projects based on conservative assumptions
  • Addressed dividend reduction from previous years (110% in FY24, 50% in FY25 to 15% in FY26) as conservation for growth opportunities

Management Commentary

The management expressed confidence in the company's positioning, citing:

  • Near-zero debt status
  • Large strategic land bank at prime locations
  • Strong execution capabilities
  • Diversified development platform
  • Unique positioning in the changing Ahmedabad real estate landscape

They emphasized commitment to disciplined growth, transparent governance, prudent capital allocation, and sustainable long-term value creation.