Aditya Birla Real Estate Limited (NSE: ABREL) Q1 2026 Earnings Call dated Jul. 24, 2025
Corporate Participants:
Unidentified Speaker
K T Jithendran — Chief Executive Officer & Managing Director
Rajendra Dalmia — Managing Director
Snehal Shah — Chief Financial Officer
Keyur Shah — Chief Finance Officer
Analysts:
Unidentified Participant
Biplab Debbarma — Analyst
Karan Khanna — Analyst
Dixit Doshi — Analyst
Amit Srivastava — Analyst
Puneet Gulati — Analyst
Dhananjay Mishra — Analyst
Isha Shah — Analyst
Sujit Jain — Analyst
Presentation:
operator
Ladies and gentlemen, good morning and welcome to the Aditya Birla Real Estate Ltd. Q1FY26 post results conference call hosted by Antech Stockbroking Ltd. As a reminder, all participant lines will remain 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 the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Biplup DeBarma from Antique Stock Broking Ltd. For opening remarks.
Thank you. And over to you.
Biplab Debbarma — Analyst
Thank you, Ryan. Good morning everyone and welcome to the Q1 FY26 earnings call of Adit Birla Real Estate hosted by Antique Stockbroking. Please note certain statements made during this call may be forward looking in nature and are subject to risks and uncertainties. Actual results may vary materially. Today we have with us the management of the company represented by Mr. R.K. dalmia, Managing Director, Aditya Birth, Mr. P.T. jitendran, Managing Director and CEO, Birla Estates Mr. Snehal Shah, CFO, Aditya Birla Real Estate and Mr. Kehur Shah, CFO, Birla Estates. Without further ado, let me hand over the call to Mr.
Dharmia. Over to you sir.
Rajendra Dalmia — Managing Director
Thank you. Good morning everyone and welcome to the earnings conference call for the first quarter of the financial year 2026. As many of you know, at Adit Birla Real Estate we are in the midst of strategic transformation shaping the company into one of India’s most focused and future ready real estate platforms. Financial25 was a landmark year in this journey and we have entered financial 26 the same level of discipline and long term ambitions. During the first quarter of financial year 2026, our primary focus was on execution, consolidation and preparing for a robust launch pipeline in the quarters ahead.
We begin this year with the backdrop of a resilient Indian economy. With strong macroeconomics fundamentals and stable GDP growth projections. The long term structural demand for quality real estate remain unequivocally strong. It is within this promising context that we are executing our refined strategy with a focus towards the real estate business and therefore we are in the process of divesting our paper fee. India Residential real sector is in the phase of steady growth driven by execution, excellence, product differentiation and brand trust. The market has seen a good traction with adsorption of exceeding new supply by 8.3% in finance year 25.
The luxury segment continued to outperform fueled by descending domestic audience and growing interest from NRIs Mumbai Metropolitan Region. MMR, Pune, Bengaluru and NCR continue to remain the key market contributing to 50% of units sold in financial year 2025. As this was a quarter without any new projects launches for the company, our efforts were concentrated on driving sales momentum in our existing portfolio and ensuring strong construction progress across all sites. Consequently, our booking value for the quarter stood at rupees 423 crores which is grew by 61% year on year. The area sold for the quarter grew by 327% year on year to 0.3 million square feet.
Our collection for the quarter grew by 12% year on year at rupees 545 crores. This performance reflects the sustained interest in our marquee projects and underlying strength of Birla stage brand even in a period of planned consolidation ahead of our next growth phase. One of the most notable developments during the quarter for our company was that Binna state concluded a 50 million US dollar or around Indian rupees 420 crores investment from international Finance Corporation, a member of World Bank Group. The investment has been made in Mandiri project in pune. Having approximately 3.13 million square feet in urban area and in the Thane project with approximate 6.43 million scattered saleable area.
This partnership shows a strong vote of confidence from one of the largest and highly respected global investors. The partnership also boosts our ESG credential and supports sustainable inclusive development accordingly. Additionally, on ESG front, we achieved the Bureau of Energy Efficiency certification for both Birla Aurora and Birla Centurion, recognizing our efforts to create energy efficient environmentally conscious development and set a new benchmark in sustainable real estate. On the marketing front, we increase our investment in strengthening our brand and fostering a deeper connection with our customers. We raised our IPL association by becoming the principal sponsor of the Royal Challenger Benuru which significantly boosted brand visibility and making Birla Estate one of the most recalled real estate brand during the season.
Looking ahead, our growth trajectory is clear and well defined. Our total portfolio now has a gross development value potential of around Rupees seventy thousand crores providing us a multi year growth visibility for the remainder of financier 26. We have a robot load pipeline with an estimated gross development value of over 13,900 crores. This included much anticipated projects such as next phase of Martin Bila Niara Project, Wordley, new phases at Birla Navia and Gurugaon and our new developments in high growth corridors like Thane and Boisher in mmr. With that, we can now open the floor for questions and answer sessions.
Thank you.
Questions and Answers:
operator
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Karan Khanna from Ambit Capital. Please go ahead.
Karan Khanna
Yeah, thanks for the opportunity and good morning to the entire team. My first question to you, Katie, if you can talk a bit about the luxury housing market in Mumbai, particularly because we have seen some signs of slowdown in the MMR luxury market. And if you can also talk a bit about the Niara project where we’ve seen 360 crores of sales in the fourth quarter and this quarter is down to about 60 crores. How are you thinking about sales velocity for the balance 2,300 crore of inventory that you have in phase one and two? And more importantly, how should one think about the launch of Miara Phase 3 later this year?
K T Jithendran
Yeah. Hi, good morning. You know. Yeah. So Worley as a luxury market continues to be very strong. We are very bullish on this market. It’s true that there has been more launches, more projects have got launched here. But I think it will be too premature to judge the demand of the market unless there is a case launch which has happened. As far as we are concerned, we had a strong quarter last year and this quarter we had a few cancellations. Otherwise I think still there was not a five or six units which were sold over the quarter.
Actually quarter one is a little early for the momentum to pick up but we are very confident. The number of walk ins, the number of demands, the number of strong leads that we still have, the price which is holding, the demand for the product, et cetera. I think we are very confident that we will have a strong response over the year and we are very excited and looking forward to the new phase launch which will most probably happen in the last phase of quarter three or early quarter four.
Karan Khanna
This is helpful. Katie, my second question, if we look at the Launch pipeline for FY26 and beyond, that’s there in slide number 17 of the investor presentation for the nine launches that are slated for later this year, can you give some timeline in terms of what could Be the launch distribution across the 3/4 for FY26.
K T Jithendran
Yes. So most of the launches are. And in fact almost all launches are kind of pitched up in Q3 and Q4. Since we had a very strong launch quarter in Q4, we will be planning all these launches as per our planned calendar. It was stated to be in Q3 Q4. The good news is that for Manjiri, we have already got the RAID up. Our launch preparations have started. But unless you’re completely ready in terms of going into the market, we’ll take our time. We have enough time. So either it will be in the last quarter of Q2, but most probably in the first phase of Q3.
All the others, I can assure you we are going well as for the track and we are pretty confident of launching all this in various months of Q3 and Q4.
Karan Khanna
Sure. Thirdly, in slide 27 of the Investor presentation where you’ve spoken about the estimated surplus potential from the loan projects which stand at about 7,300 projects. And you previously mentioned that the surplus potential from launch and pipeline projects would be closer to 22,000 crores. Two questions here. One, do you still expect to realize about 15,000 crores in surplus from the pipeline projects? And two, what would be the total surplus cash flow that would accrue to Birla Estates?
K T Jithendran
Yeah, I’ll ask.
Keyur Shah
Thanks. We have estimated the collections from already the inventory which is sold, that is over 11,000 crores which is the sold inventory. From the unsold inventory, we will collect around 6,000 crores. So that is how we have estimated the collections. And after reducing all the costs pertaining to the completion of the entire project, we estimate 7,300 crores of service. That’s how we have consumed it.
Karan Khanna
Sure. But this is the Birla’s share in the. Sure. And lastly, in terms of bd, you know, what’s the progress here? Are you on track to achieve the 15,000 crores BD target that you mentioned earlier?
K T Jithendran
Yeah. So BD we have guided, I mean last year, as you know, we did about 25,000 crores. We have very strong pipeline in all our regions, our targeted regions. But this whole process, as you know, it takes its own time to make sure that we do the right deals and the right returns in the right market, right location, right pricing. So very confident of doing somewhere around that. I can’t assure you it will be the 15,000 or 10,000 or 20,000. But that’s what we are targeting and we are well on course of achieving that.
Karan Khanna
Sure. On my side. I’ll come back in with you for any follow ups. Thank you.
K T Jithendran
Thank you.
operator
Thank you. We take the next question from the line of Akash Krista from Nomola. Please go ahead.
Unidentified Participant
Hi sir. Am I audible?
K T Jithendran
Yeah. Akash, how are you?
Unidentified Participant
Yeah, I’m great sir. Thank you for the opportunity. Sir, my first question is with respect to. With respect to the sector 170 Noida project and the IHP JDA project. What is the status of those two projects as well as the Thane approvals. Where are we for these three projects?
K T Jithendran
Yeah, so as far as Noida 150 is concerned we haven’t made much progress and I’m not very hopeful. We’re not really counting on that. It was your second question.
Unidentified Participant
The status of the IHP JDA project, Mathura Road and as well as the SANE approvals with respect to the Tane project.
K T Jithendran
IHP is also going slow. Unfortunately. We are hoping that there will be some progress. It’s really not happened but pretty hopeful that this will come around. So we are not taken it in our target for launch this year and Thane is going okay. Thane, we are gearing up for the launch.
Unidentified Participant
Okay. So even Thane we should expect it in the third quarter.
K T Jithendran
Yeah, yeah. Q3.
Unidentified Participant
Okay. And my second question, sir, if you. Can give us some visibility with respect to the third tower Niara visibility on what type of configurations are we looking at and what type of price points we are looking at.
K T Jithendran
Akash, we’re planning to do this launch in Q4 or late Q3. So we are still in the process of firming up the pricing and the configuration. So at the right time we’ll let you know.
Unidentified Participant
Okay. Okay. Thank you. That’s all from my side. I’ll join back in the queue.
K T Jithendran
Thank you.
operator
Thank you. The next question comes from the line of Dixit Doshi from Whitestone Financial Advisors Private Limited. Please go ahead.
Dixit Doshi
Yeah, thanks for the opportunity. My first question is regarding the Niara only. So I think net net you said that we had some cancellation but so net net we are maybe around 99 or 100 flat. So obviously the market looks slightly slow. But you are much more confident. So do you number in mind that let’s say 120, 125, 130 this much X number of flat will be sold and then only we will plan for the third phase.
operator
Ladies and gentlemen, we have lost the line of the management. Please stay connected while I rejoin the management. Mr. Joshi, we have the management reconnected if you can please repeat your question for the management. Thank you.
Dixit Doshi
Yeah, yeah. So my question was that the market looks slow in the worldly but you are quite confident of launch. So my question is that do you have any number in mind where let’s say 120, 130x number of units will be sold in Tower 2. Then only we will plan for Tower 3.
K T Jithendran
We are already you know achieved that number during we have crossed. I mean we were planning about 2/3 and then we shall move ahead. So we are around that. So we are now fully gearing up for the launching the new phase.
Dixit Doshi
Okay. Okay. And my second question is in earlier calls you have mentioned that the cost is around 25,000 rupees in Worley. So is it also for the tower one also because I’ll include this called.
K T Jithendran
Average cost for the entire over the next five, seven years. That’s what it includes. All towers.
Dixit Doshi
It’s an average cost including all towers. Okay. Okay, fine.
K T Jithendran
Thank you.
operator
Thank you. We take the next question from the line of Ahmed Srivastava from BNK Securities. Please go ahead.
Amit Srivastava
Yeah. Hi. Thank you for the opportunity. So my question is on our launch pipeline basically. So if you look at for the airport 26 we have a very strong pipeline of 14,000 crore which is going to be launched over the next 60 quarters. But if we look at for the future we have a strong GDP of 2000 crore going ahead. But larger part of this is concentrated in over me and Ghana around 25,000 crore which will be launched over the phased manner in multiple years. And considering that Indian projects which we will sign in the next couple of quarters that will take around one year time to launch.
So are we getting sort of launch pipeline in April 27 to maintain the 14,18,000 crore of launch for that year?
K T Jithendran
Yeah. So to keep the momentum of growth going we will of course keep looking for addition of new projects but not the cost of financial discipline and returns and the brand equity etc. So we realized that to keep the momentum growing we need to add new projects in all locations. And we are mindful of that and we are working towards that. Amit. Yeah.
Amit Srivastava
Yeah. Basically. So we are confident that we can launch similar kind of numbers in a quarter. That’s all.
K T Jithendran
Yeah, we need to add projects. We are working towards that. Only that we have been careful that we add the right projects and we take the right risk and maintain financial discipline.
Amit Srivastava
Sure, sure. And in terms of the project specific in a Bangalore sir, we have a GDP of 3,000 crore. We sold around 800 crore plus this quarter we have not seen much of traction in that. So had we not launched any new. Tower or what was the. Update if. You can keep and any progress on our central development plan.
K T Jithendran
So as far as Birlai Vara is concerned we had launched inventory of 1594 crores or thereabouts and we have sold about 900 crores. So I think we can still have enough room to move ahead. There has been slowdown in the first quarter in terms of picking up you know and all the noises around the IT industry etc. But I think the real momentum will pick up when the festival season starts and the product very good the product comes up. So when we take stock of that whether we want to launch the next few buildings that is there depending on demand consumption of the current sales.
But happy note that we have sold more than 50% of the inventory and yeah for the rest of the inventory we will time it accordingly. Yeah that’s planning in progress. Still several options you’re considering. So the key thing is to time it with the overall market supply and also don’t want to clash it with Birla Nihara. So that work is going on. We are in no hurry to launch that.
Amit Srivastava
Okay so the next question is basically on a very good strategic alliance which we have done with IFC and visual issue. So sir, what are your thoughts on a long term perspective how these are going to play in our development or scale of our company? Is this scalable partnerships or is that project specific and how we are going to prioritize them in a future project because we have a Mitsubishi which is itself is a large and until we got ifc. So had we have shown these projects to apps Mitsubishi also and then accordingly it has gone to IFC how it’s working.
K T Jithendran
Yeah so we have been pretty fortunate to have such a good partners. Both are very very high profile partners Mitsubishi globally not only in terms of financial strength but also in terms of of real estate know how and ISC of course equally strong financially strong sustainability, huge focus in that and very high in terms of feasibility of projects checking in on the you know right risk requirements etc. So our projects have stood very high in their in their profile and I think they were also of course ifcs we just signed it last quarter. But Mitsubishi and we are going great.
They’re looking forward to many more such profitable ventures and I think it’s a very good strategy that where we are not doing JDs and you think there is too much concentration of capital and it could Perhaps divest it and do a proper risk management risk management strategy for birlachit going forward. Maintain stronger financial discipline, learn a lot from how to do large scale business and focus on execution etc. Safety, faster construction technologies. So it’s a very win win, good distinct partnership that we have evolved and looking forward to building it further.
Amit Srivastava
Okay, great. And last, just a clarification on our paper business, sir. When to.
K T Jithendran
Paper? Yeah, I think that’s on track.
Rajendra Dalmia
Paper unit is on track. We expect to complete this process by end of calendar year of 2025.
Amit Srivastava
Okay, thank you, thank you very much.
operator
Thank you. The next question comes from the line of Puneet from hsbc. Please go ahead.
Puneet Gulati
Yeah, thank you so much. My first question, if you can elaborate a bit more on you know, what value is Mitsubishi bringing to the jv and also if there is a plan to do similar sort of setup in Worley as well because you guys will have land bank which is adjacent to each other. Any thoughts there?
K T Jithendran
Yeah, so Mitsubishi of course as I mentioned, the value is immense. We told you, you know when they came into the project after we have worked on this Sarjapur land quite a bit, we have worked on the risks and they have given us know an adequate and you know, quite profitable premium there and also we are getting a 6% DM fee and over and above that promote which is also very lucrative. More important than the just the financial part, we are more interested in the strategic partnership that we’re looking at them and the kind of, you know, the knowledge and experience and know how they bring into real estate.
They were almost 70, 80 years global real estate company, 70 billion or thereabouts globally big, so very sophisticated ways of working processes, etc. What really worked with us is our transparency processes, fair play, the legacy of the brand, etc. So the value systems matched and therefore they were also very happy among several developers in India which chose us to go ahead with as regards worldly is concerned. No, we are not really looking at at a partnership for the residential portfolio. Really don’t need it. We are well established in Worli and the capital investment is not much.
So I think we’re not really looking forward to partner with them in the residential part of the Worley portfolio. We are thinking also about developing the commercial portfolio. There could be a worthwhile exploration process of whether they would be interested and we are exploring amongst several other large institutions, Mitsubishi is also a candidate for that.
Puneet Gulati
That’s very helpful. And secondly on the ISC jv, will that limit you to do projects on the affordable nature or are you free to do upper mid income, mid income experimental.
K T Jithendran
As you know, none of our projects are affordable in that sense. Projects are all very aspirational, you know, high or mid income or premium. So really I think there is absolutely no such limitations.
Puneet Gulati
Understood. And thirdly, if you can also talk a bit about any new cities that you’re planning to enter at this point of time.
K T Jithendran
Right now, as we see, given our management bandwidth, focus required, complexities of approvals in various cities, real estate essentially being a very regional play. The RERA also differs from region to region. I think we’re very happy to establish ourselves, consolidate, expand ourselves in the four cities we have chosen. They continue to be the most sought after four top cities. I think there’s a lot of work for us to do here and establish ourselves. So that call of moving into a few or expanding into more cities a little further away, we always be looking and we are watching out, we’re looking out any cities it’s showing strong long term potential and I’m sure there will some cities will come up and we are keeping a close watch on all of this.
But at the moment we are focused on, you know, growing ourselves and expanding ourselves in the four cities that we have chosen.
Puneet Gulati
Okay, that’s. And lastly for Kur, there is this rental income 275 million which declined both Y and Y and Q and Q. How should one think about it?
Keyur Shah
So. For renewal was underway, so that will get normalized at the full year.
K T Jithendran
End and we had 100% occupancy. So absolutely no worries there. Puneet,
Puneet Gulati
which is, I was surprised to see a decline here. I thought it should have been a pretty stable number.
K T Jithendran
So momentary transitionary stage where once, you know, we are in process of renewing a rent, so there will be maybe a month or two of, you know, rent free period, etc. But only growing.
Puneet Gulati
Yeah. Okay. And on the cancellation for Worley which you talked about, what kind of amount do you end up forfeiting?
K T Jithendran
Forfeiting.
Puneet Gulati
Yeah, some defense does. Yeah, yeah, yeah.
K T Jithendran
We have to abide by the RERA loss. What is the 10% that loss? Whatever the loss that is there as per rera, we follow the RERA rules clearly. And also as a long term customer, this thing, we take a look at it. What kind of reasons are there for canceling? It’s very serious. So we look take a view from our long term customer centricity point of view.
Puneet Gulati
Understood, Perfect. Thank you so much and all the best.
K T Jithendran
Thank you.
operator
Thank you. We take the next question from the line of Dhananjay Mishra from Sunidi Securities. Please go ahead.
Dhananjay Mishra
Yeah, thanks for the opportunity. So most of our launches will be. Coming in Q3 or later part of Q4. So we have unsold inventory of close to 6,000 crore. So what kind of sales booking we are looking at in Q2 overall FY26.
K T Jithendran
So I hesitate to kind of give any forward looking guidance on this part. We will do our best and you know all markets are looking stable. But as you know bulk of the real spikes come from you know during launches. That’s where the whole excitement is. The bulk of the growth prospects will come in Q3, Q4 launches happen. We will be really looking for our numbers to the. I mean bulk of it will come from the launches. So it should be similar what we are doing currently or steady or maybe it’s better than this as we expect Q2 should be.
There is a pickup momentum etc. Depending on overall market sentiments. But the real punch will come from the launches.
Dhananjay Mishra
But Q2 should be much better than. Q1 and overall FY26 will be some growth in on. On number of FY25. Right? That is. That is the right side. Again sir,
K T Jithendran
I have no in the. Past told you that you know we are not really giving you a guidance here to add to short term. Too much impacted by short term events, uncertainties, you know, interest rate fluctuations, you know, international news, etc. So it’s really. And of course the entire approval system, you know is subject to severe shocks and uncertainties. So really I wouldn’t like to do the injustice of guiding the team into something which you know, not very certain. But that’s why we have taken a long term view of giving you a long term three year horizon where we are more sure of, you know, giving us more certain guidance.
So I really don’t want to kind of, you know take you into any other direction. So we are focused on giving a long term growth and long term guidance to you.
Dhananjay Mishra
Okay, thank you.
K T Jithendran
Always. Thank you Dhananjay.
operator
Thank you. We take the next question from the line of Dev Barma from Antique Stock Broking Ltd. Please go ahead.
Biplab Debbarma
Good morning everyone. So my first question is on IFC deal. So on the recently announced private equity deal in the involving ifc. So it appears that the transaction has been done close to our acquisition cost. I mean SE is around 600 and Manjiri is around 300. And if you see 44% to IFC for 420 crore translate into some 950 odd crore. So it looks we are doing the deal close to acquisition cost. So. So what was the. I think given that we are on the verge of receiving proceeds from the paper business divestment, what was the urgency or liquidity need to close this P deal and what is the strategic do this field and.
And we received the fund from IFC already or is it still in the process? So this is my first question.
K T Jithendran
So before I hand over to you to give you all the details of the deal on a strategic level, I just want to express to you that if you carefully look at these two deals, both the Thane deal and the Manjiri deal, you would very clearly appreciate that we are not paid the full value of the land. These are both deferred land acquisitions. So we have not really paid the value of the land. In fact we have paid only a part of it. And that is true for both these particular projects. Having said that, there is also a premium that we have taken in terms of warehousing interest in both these projects.
So it’s not at the acquisition cost. It is a higher cost than that. But the larger and broader KML that whenever there is a kind of acquisition which we had concentration of capital is because of the outright is more than what we would look at. So I think it’s a very effective financial risk management strategy that we get a partner, a strategic partner through sharing the risk. And you must understand that all of these are equity in nature. They are not any structured debt or you know, debt or equity in the form of a debt or something.
This is pure equity. And the upside and downside both are very shared proportionately. And these are not, you know, this requirement for capital and you know, capital will keep coming and going. We may have a paper, you know, the discounting of paper may go and get some capital, we may go through raising capital from many other sources, etc. But I think it’s a good long term strategy to have global partners who will also help us give a second opinion on the kind of acquisitions we are making. Capital always made capital always available and that those people who understand and willing to take the risk and we should make these partnerships.
I think for these partnerships really when we actually don’t need them, when we actually need and we go to people that’s not the right thing to get the right valuation. So I think it’s not that, you know, I looked at my 12 months or 6 month requirement and said oh, there is a shortage of capital so let it run to somebody These are all long term calls taken over the next five, 10 years. How should we grow the business? Good times, bad times, etc. So that’s how we sort this out at the strategic level.
Keyur Shah
These transactions with Both Mitsubishi and IFC take 12 to 18 months or more to conclude. So you know at that time when we were initiating the discussions there was no divestment of paper on the table and now we have demonstrated that we have global partners who are putting that balance sheet money for 15, 20 years and we also kind of get access to their way of working and IFC has categorized this under the green category for this particular investment and we want to be cutting edge in esg. That’s one of our mandates and charters because that’s going to be the future.
Also we earn DM fees and promote on auser transaction so in a way it’s a win win for so that’s the reason why we decided to go ahead with this and going forward whenever we need to access capital these partners are readily available to put capital with us because all the heavy lifting has already been done and now we have a platform in place which can be quickly replicated.
K T Jithendran
So strategy we also capital it just opens up another capital avenue. Capital is never adequate, we always are opportunities. We need capital and also it’s a risk management. So both, both it works to us both ways very well.
Keyur Shah
So basically this is not just a short term, you know, divestment for liquidity needs. It’s a basically strategy, a long term strategy.
Biplab Debbarma
Understood. My second question is on the after on upcoming launch of Tower 3. So just trying to understand what would be your target customer segment. I mean obviously HNI’s but I mean are you focusing on NRIs? What kind of how much do you think like 10%, 20% would be sold to NRS. I know you’ll pay by the year but HNIs from Indian other Indian cities or specific offshore geographies like yours uk, North America.
I’m asking this question given that significant competing supply are there in the worldly market all by you know leading developers and you may be able many of them are listed also. So just trying to understand how do you intend to position Niara and how do you intend to differentiate and who what would be the target audience? Because it’s very important for us for Birla Estates and then third Power do as well as Power one and Tower two Big yes sir. That’s my second question.
K T Jithendran
Yeah so Biplav if you may allow me. I know Niar has already created a very strong Position in the market, irrespective of time. Over the last few years it has firmly established itself. Itself is on the most premium developments based on the design, based on the brand equity, based on the investment we have done in understanding our consumers and positioning it accordingly. And more importantly on the size of the project, the plot size itself. I don’t think, however, market developers are around, with due respect, all of them, they have the advantage of such a fantastic location and size of the location.
So that plays very heavily as a heavy advantage to us. So we are not really concerned about positioning or repositioning. Niarr Niara is very firmly positioned primarily by these qualities which I mentioned, which I think it’s hard for anybody else to replicate because they don’t have what we have. Having said that, from tower to tower, of course there’ll be enough now tweaking and you know, amendments, etc. Depending on the short term or current market, ups and down demand, supply gap, etc. So that we are carefully tuning it so that not primarily in the long term, I think everything will get sold.
The product is so good and so premiumly positioned, but largely from maximizing the offtake at the launch time. So with that we are working in progress. Of course it will be slightly different from the Tower B, different from Tower A. We’re trying to bring out some things too early for us to disclose it today. And it’s a market of course. Like what? In the past, heavily from the south, Mumbai, coupled by the large Indian cities, the cities of Maharashtra and you know, strong like it has happened in the past from the Middle East, Singapore, UK, US. We have had a pretty strong 20 plus percent demand from all these sectors. So I think that demand will continue.
Biplab Debbarma
Okay, okay, great. Answer that question. I. Have we received the funds from IFC already? That one 420.
K T Jithendran
Yeah, we received everything.
Keyur Shah
The funds were received in July.
Biplab Debbarma
Okay. In July. Okay, fine. Thank you sir. Thank you. All the best.
K T Jithendran
Thank you.
operator
Thank you. We take the next question from the line of Himanshu Javel, an investor. Please go ahead.
Unidentified Participant
Yeah. Hi. So I wanted to ask. There is a lot of redevelopment happening around the Mumbai as you are aware. So what are you, what are your views? Three to five years down the line? Do you think excessive supply of redevelopment will be affecting our long term plans for the company? In terms of supply?
K T Jithendran
Yeah. Very valid. I think the way forward for the development of Mumbai will be substantially skewed towards redevelopment. Redevelopment has its pros and cons, but as you know, Mumbai, there is hardly any industrial land Available. Most of them got consumed. The last few are up for taking. So. And buildings have got old. If you look at South Bombay and other major parts of island city and even now the suburbs. So I think redevelopment is a very strong phenomenon and it has to be addressed. And we also believe that we have a presence. We should have presence there and we should create a niche there.
We are working towards it. We have a dedicated team looking. Looking at the opportunities. And I think the biggest advantage we have as a brand is the trust. The redevelopment largely works on trust. Families move out of their societies, out of their plots. Trusting and giving it to the developer. Hoping that the developer will get them back to their plot within a reasonable amount of time. So I think so we have a huge advantage there. And we are working towards creating a strong presence in that market. Taking a strong market share. Of course the ticket sizes will be small but I think it can quickly scale up by the number of projects.
So we consider that as an essential part of our future BD strategy for Mumbai.
Unidentified Participant
And are we looking at some big redevelopment projects for the company?
K T Jithendran
We are. We are. We are very aggressively looking at adding some projects to that channel.
Unidentified Participant
Okay, that’s it. From my side. Thank you.
K T Jithendran
Thank you.
operator
Thank you. Ladies and gentlemen. If you wish to ask a question please press star and 1. We take the next question from the line of Akash Gupta from Nomola.
Unidentified Participant
Please go ahead for the opportunity again. So sir, my question was regarding to build up Punya. I think this year we are planning to launch roughly 20 billion of here. I think we already have the RERA approval for this one. So what is the reason for holding this project?
K T Jithendran
Akash, we had the Veda for the first phase and after that. Remember last year we would launch only a small part of the inventory. Because of some changes in rooms. We need another fire service floor above the 17th floor etc. We would launch only till 16 floors. Now we are gearing up. We need a new RERA. There’s some tree, NOCs etc. Which is all we have covered. We have got the environmental clearance also. We are waiting the RERA and then we will launch a big tranche this year.
Unidentified Participant
Got it. Got it. And sir, just wanted to understand on the cash flow situation. So how should we look at the year net debt for the company?
Keyur Shah
So from the way the cash flows are looking we are expecting very strong cash flows from our collections. As we’ve always been saying, our outflows are lesser than our collections. So from an overall operating level we will be cash Surplus including after the debt servicing which is planned to be done. So we will be cash surplus from that perspective. Further, the proceeds from the sale of business also will kind of help us from our overall cash flow position. So we are very, very comfortably placed from a cash flow position.
Unidentified Participant
Okay. And sir, just wanted to understand like are we waiting for this proceeds from this ITC deal to come in and then we go for a lot of bds? Is that how we should think about it?
Snehal Shah
That is not the case. We are not waiting for the. We have sufficient scope to borrow additional money without affecting our debt equity ratio significantly. So that capability we have as K mentioned, first of all, all there will. Be some cash surplus coming from the. Real estate business which will be first used for the bd. And if there is any additional capital required, we are quite in a good. Position to borrow extra to meet that requirement. So it is not that in. We are seriously waiting for the paper deal. Paper deal. When it happens, it will only help us reduce our. That’s all.
Unidentified Participant
Got it sir. That’s it from my side. Thank you.
operator
Thank you. We do have follow up questions from the line of Himanshu Javail, an investor. Please go ahead.
Unidentified Participant
Yeah, so I was looking at for the Prabha Day project, Century Bhagavan, I think. So I. I wanted your views on that. What is the long term plan? Because as you know the Opera 360 has done extremely well in terms of the premium project pricing and the projects. So what are your plans for that particular project?
operator
I do apologize, we have lost the line of the management. Please stay connected while we join the management.
operator
Thank you for your patience. We have the line of the management reconnected. Please proceed with your question.
Unidentified Participant
Yeah, hi. So I wanted your views on the Prabhaderi Central. As you know, the Opera360 project has done extremely well. So what is our long term plan for that particular project? Are we looking at the same kind of premium project? Because it’s an extremely prime location for the company.
K T Jithendran
Yeah. So we don’t have any plans right now for that project. It’s not in our short term plans. We will look at it at the right time. Okay.
Unidentified Participant
And the investor presentation is showing the worldly new plot is the one which is we bought recently. Right. And there’s a small plot from the world which. That’s a small one.
K T Jithendran
Yeah. That’s about three and a half acres. Yeah. So that’s an additional part of the. That’s not part of the.
Rajendra Dalmia
That is not part of the map. That is There. It is not in. The map that we presented.
Unidentified Participant
Okay and what are the particular places where we are looking for the BDS in the this financial year particularly Mumbai etc or Mumbai.
K T Jithendran
Yeah Mumbai is very strong focus ncr both Noida Bengaluru and.
Unidentified Participant
And KP your views on the NCR region Because I’m reading some articles a lot of supply coming in for NCR and the pricing also is looking very, very. You know the prices have gone up very sharply in the last 34 years. So your views on that.
K T Jithendran
So see what I see is that the right location pricing, pricing, right pricing is very important. If you overprice in a location then there’s a good chance a project may not really take off which has happened in US I think for a few projects recently. So I think right pricing, right location, strong brand, absolutely the right design. I think understanding your consumer, all those factors if you get it all right I think there have been extremely successful launches as you would have noticed in the last last quarter with strong brands. So I think, I think if you, if you read the market right I think there is enough and more opportunities and we are pretty, we are pretty bullish on it.
Unidentified Participant
Thank you JP and good luck for the future.
K T Jithendran
Thank you.
operator
Thank you. We take the next question from the line of Rahel from Crown Capital please go ahead.
Unidentified Participant
Hello. Hi sir, good morning, can you hear me?
K T Jithendran
Yes you. We can.
Unidentified Participant
Yeah. So have you given any pre sales and collections guidance for this year FY26.
K T Jithendran
No, I think I only mentioned we are not giving any guidance. We have more focus on long term.
Unidentified Participant
Yes.
K T Jithendran
Yeah can you hear us Brian?
Unidentified Participant
Sorry your voice got. Yeah yeah I can hear you.
K T Jithendran
Any annual guidance for this year? Because I didn’t really didn’t make sense given you know so many uncertainties and approvals etc. We are rather happy giving you our long term three year guidance which we have guided you for an annual sales of 15,000 crores in no particular order so it will be more back ended so so that’s the best time I can know sort of give a direction today.
Unidentified Participant
This 15,000 crores by when sorry. Voice is dropping in between
K T Jithendran
3 years in 3 years time annual sales and this.
Unidentified Participant
Got it, got it. And this collection which you’ve mentioned you. Know the surplus in your presentation. So by when do you like what timeline will they come in for the company?
K T Jithendran
Yeah so we have already started getting enough and more collect surpluses. It started from last year. We have amped it up this year and it will continue to have more and more surplus as we go on we already had a surplus, pretty reasonably healthy surplus this year by the time we enter this year. And we expect that to keep growing with the gap year on year.
Unidentified Participant
Okay. Okay, fine. Thank you. And all the best.
K T Jithendran
Thank you.
operator
Thank you. We take the next question from the line of Isha Shah from Nirzar Enterprises. Please go ahead.
Isha Shah
Hello sir, am I audible?
K T Jithendran
Yeah, yeah, you are Isha.
Isha Shah
Okay. Okay. So my question is how are we moving in terms of execution across all the projects? Like is it going as per our timeline?
K T Jithendran
Yeah. So I think the most key focus as a company we do is on getting projects on time with primary focus on safety, quality, timelines and within the budgeted so far. I’m very happy and proud to say that all our projects are as per our timelines.
Isha Shah
Okay. Okay. Thank you sir. That was from my side.
operator
Thank you. We take the next question from the line of Sujith Jain from Bajaj Life Insurance. Please go ahead.
Sujit Jain
Yeah, thank you. I hope I’m audible of sales has been an issue at least for this quarter for us. Others have also reported people like Obera etc. And luxury segment. It looks like in terms of pre sales is under pressure. And when we hear commentary from housing finance companies also yesterday one of the largest has also spoken about soft real estate market. So in this scenario, how do you ensure that rather than reacting to a potential slowdown in sales proactively, you kind of get your pre sales going.
K T Jithendran
So Sujith, if you would have noticed the trend, likely the real surge in sales happens during the launches and bulk of the inventory gets absorbed during the launch launches. So it’s really hard to judge any kind of trends on it when there are no launches. Again, you know the markets and the speaking for ourselves, most of the markets that we are representing there is hardly any offtake of housing finance. It’s not much. It’s less than 50% or much lower than that. Having said that, I think I wouldn’t say our presales have been far below expectations, more or less as we had expected because of the huge absorption in Q4, bulk of our inventories had not absorbed.
So there was a lack of good inventory because there were no launches and because of very strong absorption of Q4. This is really, we are left with very poor relative inventory in Q1. So I won’t say that the reflection of the market at all. I think market is still going good for the right brand. As I mentioned in the past, with the right location, right pricing. If you get carried away and do overpricing. Yeah, then there is a risk of poor response. So I think we are very prepared and we are very positive of the market.
The segments in which we are in. We look forward to a very resilient future real estate the next nine months. I think the festival season is also going to really pump up demand. There’s a lot of new launches coming at the right locations and if you design the products right, price it right, I think there is no thought to worry. The overall macroeconomic demand supply positions are very strong and we expect that to continue, continue for a few more years.
Sujit Jain
I get that. But when I look at and you can correct me on these numbers Niara, you have phase two and phase one put together roughly 2400 crores of inventory to be sold.
K T Jithendran
So if I look at, I’m looking at selling this inventory as per our strategy closer to possession. If you look at tower one out of 414 we have already started sold more than 400 apartments. I’m not really pushing as you can imagine. So if you sold more than 90% and you know these are very leftover inventory. Yeah. So we are not really looking at pushing or selling these things. So you have to context, contextualize in the right thing. As far as Niara 2 is concerned we almost sold about 99 out of 148 and we’re not really pushing it because the bulk of the inventory is gone and there’s been a huge uptake in Q4.
We still sold a sizable one in Q1 we had a few cancellations because of some long term pending issue for some of the customers and there is so much demand coming in, so much inquiry come in strong leads. So I’m not really worried about lack of demand. Lack of demand is very much there.
Sujit Jain
Sure. Just on pre sales while you’re not guiding as you said, is it safe to assume that you will exceed what you did in FY25 and by a decent margin?
K T Jithendran
Yeah. So that way to be strong like you said. Exactly. So you are basically trying to put words in my mouth so I can’t say that. So I’ll refrain from giving you any sort of guidance on that sort. I maintain my position that we are looking at a larger long term view. 15,000 crores per annum is what we are looking at and it’s not going to be a straight line. Okay.
Sujit Jain
So directionally would the pre sales be strong this year as well?
K T Jithendran
That is what we are trying to do, yes. Once the launches come up I think. It’S going to be very strong. We have a 13,000 crore lots of launches coming. So very, very excited and looking towards that.
Sujit Jain
Okay, perfect all the way. Thank you.
operator
Thank you. We do have follow up questions from the line of Debarma from Antique Stock Broking Limited. Please go ahead.
Biplab Debbarma
Sir, two quick questions. One is on the paper business divestment. I was under the impression that deal would be closed in this quarter. I mean July, August. But now it looks the deal would be closed towards the end of calendar year 2025. So could you clarify if there is any risk or uncertainty around the deal not closing as planned?
Rajendra Dalmia
No, there are no uncertainties and deal is on track and we expect to complete by end of this calendar year 2025.
Biplab Debbarma
Okay, sir. And second question is on the payment in land payment. Land related payments still pending for Manjiri and Pane projects. How much we have paid or how much still pending in Manjari and Thamia? Both how much we have to pay.
Keyur Shah
So now. And which is over. You. I can discuss that with you offline in Thana. The payment has already been made and with the IFC funding coming in, there’s no further payment which we have to contribute to.
K T Jithendran
I mean plan.
Keyur Shah
Yeah, we don’t need to contribute as in a. Our commitment is already fully made.
Biplab Debbarma
Okay. Okay. That’s. That’s all. Thank you. All the best.
K T Jithendran
Thank you.
operator
Thank you. Ladies and gentlemen. There are no further questions from the participants. I now hand the conference over to the management for their closing comments.
Rajendra Dalmia
Thank you all for the participating in this earning con call. If you have any further questions or would like to know more about the company, please reach out to our IR managers at Algorithm Advisor. Thank you for your interest in our company. Thank you.
operator
Thank you on behalf of Antech Stockbroking limited. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.