Aditya Birla Real Estate Limited (NSE: ABREL) Q3 2026 Earnings Call dated Jan. 29, 2026
Corporate Participants:
Unidentified Speaker
Rajendra K. Dalmia — Managing Director
K T Jithendran — Chief Executive Officer & Managing Director – Birla Estates
Analysts:
Amit Srivastava — Analyst
Karan Khanna — Analyst
Akash Gupta — Analyst
Harsh Pathak — Analyst
Rishith Shah — Analyst
Dixit Doshi — Analyst
Tarang Agrawal — Analyst
Prithvi Raj — Analyst
Jahnvi Shah — Analyst
Biplab Debbarma — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Aditya Birla Real Estate Limited Q3FY26 earnings conference call hosted by BNK Securities India Private Limited. As a reminder, all participant lines will be 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 this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Amit Srivastava. Thank you. And over to you, sir.
Amit Srivastava — Analyst
Hello. Hi. Good morning everyone. On behalf of DNK Security, I would like to welcome you all to the CTFY 26 earning conference call of Arithida Real Estate. Joining us today from the management are Mr. R.K. dania, MD are real estate Mr. K.T. jitendran, MD and CEO Birla Estate, Mrs. Nehal Sa CFO Arithid Birla Real Estate and Mr. Kehousa, CFO Binda State. We will begin the call with opening remarks from management following which we’ll open the floor for question and answer session.
I would like to hand over the call to management for the opening remarks. Thank you. And over to you sir.
Rajendra K. Dalmia — Managing Director
Thank you. Good morning everyone and thank you for joining us for Q3FY26 earning score. India’s growth momentum remained strong during the quarter with GL GDP at 8.2% the fastest in five quarters. Supported by resilient domestic demand, steady services activity and continued public capital expenditure. The rbia revised its FY26 growth forecast to 7.3. This backdrop continued to be constructive for housing demand in residential real estate. Q3 FY26 saw unit sales moderate across major cities. Even an overall sales volume increased driven by continued appetite for premium luxury and entra luxury house. The MMR market remained a key anchor for high end demand with ncr Bengaluru and Pune also showing healthy traction.
Prices continue to appreciate across key micro markets reflecting a clear shift toward higher value quality housing. Against this context, we are delighted to share robust momentum across our launches and ongoing portfolio. We successfully launched Birla Praha in Sector 71 Guru Gaon achieving complete sellout within 24 hours and delivering over rupees 1,850 crores in free sales. An outcome that strongly validates customer confidence in our execution capabilities. We also launched Birla EVAM in Manjiri, Pune expanding into new market micro market and reinforcing our strategy to build more diversified future ready portfolio. Equally encouraging is high strength our sustains presales which continue to provide a solid dependable base throughout the quarter.
Demand across our advancing inventory remain healthy supported by consistent consumer inquiry, strong site visits and steady conversions. Birla Mera and Billa Iwara continue to lead this momentum. Reflecting the enduring appeal of our design led offering quality of education and brand trust. Our operating performance was exceptional this quarter. In Q3 FY26 we deliver pre sales of rupees 2,536 crores, a sharp 276% year on increase and collection rupees 1290 crores up 157 year on year. For nine months FY26 pre sales surged to Indian rupees 3,848 crores up 64% year on year and collection rose to 2,347 crore of 44 years on year on year.
Underscoring the strength of our execution and continued momentum in our business, we are excited about the quarter ahead with multiple launches planned across key regions, strengthening our presence in core markets and keeping our growth momentum firmly on track. Operationally, construction progress remain on track across projects. Safety and sustainability continue to be a core to how we build. Our sites have achieved approximately 58 million man hours. Birla Naira was recognized with National Support Safety Council Safety Seal Award reinforcing our stringent on site safety standards. It has also received BREAM certification, a UK based sustainability standard and is the only project in India to receive this recognition.
On the development. We are in advanced state discussion with few societies and we are optimistic about concluding these engagements soon. To further strengthen brand visibility and considering our key market, we have also elevated our marketing presence by becoming a principal sponsor of Gujarat Titan in the ipl. We remain focused on design excellence, customer centricity while upholding the highest standards of safety and quality, delivering superior living experiences and creating long term value for all our stakeholders. Thank you.
Questions and Answers:
operator
So can we start with the Q and A session? Okay sir. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please 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 handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Karan Khanna from Ambit Capital. Please go ahead.
Karan Khanna
Yeah, thanks for the opportunity. Just a couple of questions from my end. Katie, in the last call you spoke about maintaining the FY26 sales guidance of 8000 crores. Given that Niara Phase 3 is now pushed to FY27, do you still maintain that outlook? Also on Niara, you were expecting to launch in March but now given that it’s delayed, can you talk about the market outlook overall, especially worldly given the plethora of luxury and ultra luxury launches that were introduced recently.
K T Jithendran
Hi Karan. Good morning. Yeah, so we continue with our optimism for the current year and we are confident about exceeding our last year’s pre sales target. We are on track for that. We are queuing up for several launches this quarter, primarily the Thane Birla, the Hindalco Land which is going to be a major launch for us. That will be followed by new face of Arica, the one project in Boise, a new phase at Pune Punya. So there are lots of launches. We are also planning to launch the balance phase of Iwara in Bangalore because we have had a very strong run on sustenance in Ivara.
So we don’t have enough inventories. We are going to launch the new phase in Iwara too. So I think we have plenty of. Inventory and we are quite confident that we should be able to go by the target that we have planned. Despite the delay in Niara Tower C. Tower C because obvious reasons of delay in approvals because of that legal Supreme Court case, we have to extricate that part of the land outside of the full layout. It took a little more time than what we had anticipated. We got the layout approvals. Now we are waiting the MoEF and the other balance approvals including RERA. So therefore it has got pushed into the new year. But we remain very optimistic about the worldly market given our product pricing, location, size, brand, etc. I think we are pretty confident that we will be able to do very well in this Birla Niara Tower sea launch.
Karan Khanna
Sure. So just to follow up Katie, on the launches that are slated for fourth quarter, is it possible to share the exact timelines or are there any chances of, let’s say spillover in launches of these projects as well?
K T Jithendran
See, as far as Pune Punya is concerned, we already have the RERA for Iwara. We already have the rera. We are awaiting the RERA for Thane and Arika, New Face as well as for Boiser, which we’re pretty confident that all these RERAs should come to us in the first week of February. So there is a little chance of not these launches not happening.
Karan Khanna
Sure. And then secondly, you know we were hopeful of new BD announcements in Third quarter. So can you update us on status of the same and you still maintain the 1015,000 crore BD guidance for the year?
K T Jithendran
Yeah, as we have always maintained to this group that, you know, we are very careful about what we do. We are not taking any risk other than a market risk which has actually proven. If you see our performance for the last several years and quarters, each of us, project launch has been very successful because we have chosen the markets very carefully and we have paid a very prudent price for the land. So that is. And touchwood. We have not had any issues with any of the projects in terms of legal zoning or approvals etc. So we continue with that principle of ours.
We are very confident that we will have several term sheets done and proposals at a very advanced stage. But it has to happen that sometimes some of the things which are on the verge of signing we find out something and fails in due diligence. Therefore we couldn’t launch anything this year. But we’re still hoping and pretty confident that we should be able to conclude on the lines that I have previously confirmed in the region of about 10 to 15,000 crores this year before March. We are trying for that. But we also wanted to remind you that we had a wonderful BD success rate last year.
We finalized 25,000 crores of projects this year. The process remained the same. But I always maintain that we can’t assure that every quarter we’ll sign something. It depends on the quality of the deal and the depth of due diligence that we do for each project. So I would like to maintain that we are very close to signing some deals, both open lands and redevelopment. And we are hoping that before March 31st we should be able to conclude deals worth at least about 10,000 crores.
Karan Khanna
Sure. And just lastly JP, on the broader macro.
operator
May I request.
Karan Khanna
I’ll come back in the queue. Thank you.
operator
Thank you, sir.
Unidentified Speaker
Thanks, Dan.
operator
Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference call, please limit your question to three per participant. The next question is from the line of Akash Gupta from Nomura. Please go ahead.
Akash Gupta
Good morning. Congratulations on good performance. So I just wanted to follow from the BD side. Like. Like how are you thinking on this FY27 road? I think the way we address the market is like we’ll take a pump 80 billion to 150 billion in here and then we have not done any BD. So even if you do this BD right now, how Confident are we that we’ll be able to launch that in FY27. And then we do not have any projects. So what kind of growth should we think in FY27?
K T Jithendran
Hi Akash. Yeah, as I mentioned, you know we have a very strong BD pipeline. And of course you’re very right. It’s really challenging to. For us to launch, I mean finalize these projects and launch in the same financial year or you know within 12 months. Unless we have a project which is ready for launch. So we are on the lookout for all sorts of projects provided the title, the legal issues, the location, the size, everything is okay. But however, having said that we also have strong series of projects lined up for next year. Projects where new faces of these projects.
For example Niara itself which will come up next year. That should give us a good fillip. Then we have projects Trimaya. New phase coming up. We will have Punya. A new phase coming up. This year we are doing phase two. Maybe phase three. Navya will also in NCR will come up even in Khane. I think a new phase we can launch. Similarly Nevam in Pune we can launch a new phase. We may attempt to put all of our efforts to launch the India Zoom 5 project in. In NCR in Delhi. So we have enough of projects and they haven’t firmed up.
What kind of growth or what is that? But I think we have enough projects for us to launch in the next year. Keep us busy. And we’ll also focus a lot on business development.
Akash Gupta
Any development in the India. Is there any like progress?
K T Jithendran
Yeah, we are hoping that we’ll be able to resolve the approval issue. Now we’ve got some hold on it and we are in the process of doing that and we’re trying to launch it in the next financial year.
Akash Gupta
Okay. And then my final question is on the leasing income. That leasing income is down 11% on a year over year basis. What’s the reason behind that?
K T Jithendran
There’s some mathematics, Akash.
Unidentified Speaker
The property is 100% occupied previously nine months. There’s a small reduction because some of the space which has been occupied by our own company gets eliminated in the consolidation. We have expanded some of our office space. So that’s why the leasing income is slightly lower.
Akash Gupta
Thank you so much. I’ll turn back in with you.
K T Jithendran
Sure. Thank you.
operator
Sir. The next question is from the line of Harsh Pathak from MK Global. Please go ahead.
Harsh Pathak
Yeah. Hi. Good morning team. And first of all congratulations for the strong operational performance. So Katie, my first question was on the commercial Portfolio. So how are we thinking of the ramp up there? I understand we have planned a 1 million square feet of commercial development at the Niara site. What are the other developments that we are thinking of? And if you can touch on some geographic view and the kind of development maybe whether it’s an office or a retail or a mix of both, please.
K T Jithendran
Hi Harsh. So yeah, we are. As I mentioned we were. Because of the intensive capital required for commercial. I’ve mentioned that we are on the lookout for a partner. So that is still work in progress. However, we are progressing with the design for our project in Niara. The commercial project of approximate a million square feet. We have started progressing on that. They’re also on the lookout for similar parcels of land in prime commercial areas districts of Mumbai and ncr. Once we have a strong partner we’ll further move ahead with it. But on other areas like progressing on the design and planning etc. We are already moving ahead.
Harsh Pathak
Sure. So do we have any rental target. In mind that some rental income we are looking to achieve maybe in the. Next five years or so.
K T Jithendran
So as I mentioned we are looking at at least about a thousand crores. You know right now we have about 144 crores of gross rentals coming up from a current project annually. Would like to expand it to at least 1000 crores in the next four years. Four to five years. So. And that thing should very much easily be possible.
Harsh Pathak
Right. And any plans of expanding the team. Or onboarding management personnel to grow this commercial business?
K T Jithendran
Yeah. So already we have a team. We have a very core team which is focused on managing the commercial portfolio, design etc. At the appropriate time we will expand that team.
Harsh Pathak
Okay. And my last question is on the ITC deal. What is the progress there? When can we expect conclusion and receipt. Of the cash flows?
Unidentified Speaker
Yeah, so we would probably. We are already got the CCI approval and we are now awaiting the transfer of the lease of the land on which the plant is. So part of the requirement of the lease transfer is a MOE of approval, freight MOEF approval. So we are pursuing both the MOE approval and thereafter the lead would be transferred. We are very hopeful that in the next two months we should be able to close both these issues. So we are very hopeful of receiving the money before the end of this year.
Harsh Pathak
Okay, so that answers my question. Thanks a lot.
operator
Thank you sir. The next question is from the line of Rishit Shah from Access Capital. Please go ahead.
Rishith Shah
Yeah, thanks for the opportunity and congrats on good set of numbers. Sir, so two questions. So firstly on the Thane, if we see the project launch. So we have increased the GDP from all 1700, 2700 cross. So is it more related to maybe Rera or are you seeing a better demand expectation over there?
K T Jithendran
Sorry, what is that Rishabh? I didn’t understand.
Rishith Shah
So Thane, we had initially kind of we are looking at the launch of about 1700 crores. But now in this time’s presentation we have increased the GDV to about 2700 crores. The launch GDV.
K T Jithendran
Yeah .
Unidentified Speaker
So we are seeing good, you know, prospects for. And therefore we feel we can consider a higher launch area considering the prospects. Which we are expecting for tant.
K T Jithendran
I think it’s a very strong market, Rishabh. It’s a very strong demand market and we’re pretty excited about this launch. And the product has also come out fine. We are waiting for the data clearance and I think the feedback is that we need to launch much more because there’s so much demand. So that’s why as for the planning, we decided to go ahead with a larger inventory.
Rishith Shah
Makes sense, makes sense. And just a follow up to on the previous launches that you said. So the next phase Ivara also which we are looking to launch, what kind of GDV are we looking at?
K T Jithendran
That’s about 1600 crores. 1600 crores. The new balance phase which we already have the rera. So I mean we have almost run out of inventory because we sold more than 1400 crores from the first phase. So I think it’s the right time for us to open up this new phase.
Rishith Shah
Perfect. Perfect. And just can, if you can place any timelines for the Niara next hour maybe, maybe you can give a quarter wise.
K T Jithendran
Yeah, just to be prudent. I think considering all the approvals and the preparation required I think H1 is a reasonable assumption for us for the launch of Tavase.
Rishith Shah
Perfect. Thank you. Thank you.
operator
Thank you. Sir, the next question is from the line of Dixit Doshi from Whitestone Financial Advisors Private Limited. Please go ahead.
Dixit Doshi
Yeah, thanks for the opportunity. So some of my questions have been answered. One thing, so you mentioned that why we have increased the GDV of Thane. But there are couple of projects, the Birla Arica and Birla Punya where we have scaled down the GDV which was mentioned in Q2. So why we have, you know, reduced the size of those two projects. That’s my first question.
K T Jithendran
Birla Arika, you know, as you know in the first phase, we had a complete sellout. We have. This is the last phase, I mean the second phase. So we thought we’ll divide into two parts because the project is so well placed, so well located. I think there’s a huge opportunity for us to redesign and create a huge margin on this project for the balance inventory. So we wanted to actually keep one tower for redesigning and get an exceptional return on that. Because in that market, that location, in that size of a project, there is nothing nearby anywhere, more land availability.
So I think there’s a huge opportunity for us to create huge value, tremendous upside value. So that’s why we kept one project aside, one tower aside, which we can launch at a much later date. Because financially we have done very well. The returns are very healthy, cash flow is very strong. We thought we can do these two towers and wait for exceptional value creation for the last tower, which is the. Other one you mentioned.
Unidentified Speaker
The second one is Punya. Punya, which is what we have done is that we want to kind of launch the particular phase and thereafter we want to launch the subsequent phase. We want to break it into pieces. Our earlier plan was to, you know, do both together, but we want to phase it out.
Dixit Doshi
But is it because you are seeing, you know, the demand pressure in Pune?
Unidentified Speaker
No. Our launch at Birla Evam in one month we sold over 35% of the inventory. So we are not seeing that. We just want to not to kind of have two multiple launches going on. At the same time. So we want to complete one and thereafter launch the second.
Dixit Doshi
Okay. My second question is regarding the Progress on Tower 1 and 2 in Niara. So by when we are targeting delivery and revenue recognition in which year?
K T Jithendran
Yeah, so that is as per our plans. FY28 is. FY28 is when we’ll recognize revenue for Tower 1 and a year later in Tower 2.
Dixit Doshi
Okay. And my last question is, you know, last year if we see we have done whatever launches we have done, most of the launches were done in Q4. Even this year, you know, most of the launches are skewed toward Q4. So will this be the kind of trend or from next year onwards, you know, we can divide the launches more in every quarter.
K T Jithendran
Ideally, you know, Dixit, we would like to do it launches in every quarter, evenly spread, nicely sliced out. But the reality is much different. We were planning to launch the thane project in Q3. However, because of the NGT ban and all other situations, it got pushed to Q4. Similarly, we had designs to launch earlier, but it didn’t happen. It so happened that all of them got clubbed in Q4. And the pattern looks like it will take some time for us to break out of it. As we do more BDS and spread this thing out, we hopefully will have equated launches in all quarters. Our attempt is to reach there, but I think it will take a few more quarters to achieve that balance.
Dixit Doshi
And have we finalized the specifications for Tower C? So in terms of size, we have a fair idea.
K T Jithendran
And on what we are going to do if not, I think we would like to talk about it more closer to the launch.
Dixit Doshi
Okay, fine. That’s it. From my side.
operator
Thank you. The next question is from the line of Taran Agrawal from Old Bridge. Please go ahead. Sorry to interrupt you, sir. Your voice is not audible.
Tarang Agrawal
Is it audible?
operator
No, sir, it is very low. Can you please use your handset? Yes sir.
Tarang Agrawal
Hello, Is it audible now?
K T Jithendran
Yes, you are audible. Yeah, we can hear you.
Tarang Agrawal
Good morning and thank you for the opportunity. Three questions for me. If I look at your GDV of 70,000 crores for your ongoing projects, what is the margin that you’re working with and for your upcoming projects, how would the margin profile work and how much cash has already been invested between land approvals, designs and all the other activities around them?
K T Jithendran
So as the margins we have mentioned is always in the range of 25% to 30%, some of the projects which are our own projects are clocking more than 40%. Some of these projects which we had signed earlier, which are JV projects, again, we have very healthy margins north of 30, 35%. As far as cash is concerned, most of our projects are working in negative working capital because of very strong sales and very strong collections. So hardly we have taken any construction loans. So from that point of view, we’re in a very, very healthy position, cash.
Tarang Agrawal
Given that you have some projects which are yet to be launched. While I understand that the overall business is working with a negative working capital, it’s really specifically for those 44,000 crores worth of launches. Between the entire background work, how much would have been invested till date?
Unidentified Speaker
Broadly, some of the land is the historic land which we have. And overall we would have invested approximately 4,500 to 5,000 crores in the land acquisitions.
Tarang Agrawal
Land acqusitions.
Unidentified Speaker
Yeah, all put together. And as we stand, yeah, as we. Stand, all the land payments have been made. We have some small amount of land payments due for two of our projects, which is the Thana project and the Pune project. But Both are in SPVs and the SPVs are fully funded because that is a joint venture with IFC. So both the SPVs are fully funded. So the balance land payments which are to be made are already provided for. So as we stand, there’s no further commitment required for land payments.
Tarang Agrawal
Got it. The second question is how you seeing the health of the South Bombay real estate market particularly in the areas you’re focusing. Because it’s almost 55% of your overall GDV and more importantly almost 2/3 of your upcoming GDP.
K T Jithendran
So Karan, you know so far we had a wonderful run for our project Niara. We have a wonderful run for a project Anayu in Valkeshwar. Depending on the sort of locations that we are pursuing, the kind of sizing and pricing and backed by a very strong brand. I think we have no cost to worry. If the product is right, pricing is right and we understand the consumers, I think we’ll have a healthy sales velocity. We have experienced that and we and I think the market continues to be robust and in good demand. So we’re not too much worried about that.
Tarang Agrawal
Okay. And the last question, slightly basic but you know, typically how does the developable is to saleable is to carpet area split work for your projects?
K T Jithendran
It’s varying from region to region, project to project. So largely to the consumer we go by carpet areas and in developable area what you’re talking about we mentioned here, these are all saleable areas. But typically for example for in Mumbai for it is about 60%. 60. 60% on carpet.
Tarang Agrawal
60% of saleable is carpet, is it?
K T Jithendran
No. 60, 60% on carpet is saleable. 1.6 times carpet is salable. Roughly. Yeah.
operator
Thank you sir. Ladies and gentlemen, to ask a question please press star and one. Now participants who wish to ask questions may please press star and one at this time. The next question is from the line of Akash Gupta from Nomura. Please go ahead.
Akash Gupta
Thank you for taking my Titan Once again. Sir, I just wanted to just revisit the 25% growth guidance. I mean the guidance of 150 billion by FY28. My question is that balancing between risk and growth and we are being too conservative on the BD itself. We are trying to minimize the risk itself. So should we still hold that guidance that we have of 150 billion by FY28? That’s my first question.
K T Jithendran
Yeah, Akash, I think given our current pipeline, current gdv, what we have balanced to launch and also that confidence on continuing to do strong BD for the rest of the period of this year and next year and the year following that, I think we are reasonably confident that we’ll be able to achieve that target.
Akash Gupta
Okay. And my second question is, I think in this quarter’s presentation we did not put in the cash flow, the cash flow slide. So what was the operating cash flow generation this quarter and how are we thinking about operating cash flow low in FY27?
Unidentified Speaker
We, we’ve got around 2, 20, 323, 47 of collection as we mentioned and our overall project development related costs around, you know, 1300. So we have a very strong cash positive cash flow in the nine months ended December 25th.
Akash Gupta
Understood, sir. Yeah, I think that’s all the question I had. Thank you so much.
K T Jithendran
Thank you.
operator
The next question is from the line of Prithviraj from Unifi Capital. Please go ahead.
Prithvi Raj
Yeah, thanks for taking my question. So this is more on macro. While you’re looking at the demand cycle, you know, which are the markets where the demand is resilient and which are the markets where there is threat, not at a price point, where you are seeing pressure in the demand. It’s more from a market not just for your company.
K T Jithendran
Just for our company.
Prithvi Raj
No, it’s not just for your company. It’s more from a macro.
K T Jithendran
Yeah. So I think these four markets that we are currently operating and we are reasonably confident of, very, very confident of, you know, resilience in all this market, they’re all doing well. Be it Mumbai, be it Thane, suburb of Mumbai, a very reliable market in Pune. Bangalore is doing very well. All our projects are shown good traction. NCR has been exceptionally well. One market, Gurgaon has done very well for us and we continue to have very positive feelings about this market. Delhi, of course there is no supply. So I think we are looking at, you know, eagerly at launching our Delhi project.
I’m sure we’ll do very well. Noida is one market we love to have. There is so much demand, there’s lack of supply there. It’s a great market, growth market, just trying very hard to get into that market. So all of these markets that we are there today, these four markets, we are very bullish about it in general. Not just for us but as a feature if we, as I mentioned, if you do your product well, design well, understand the consumer requirements and design according to that, I think and price it accordingly. I think we have very good opportunities in all these markets.
I think the India story is very strong. As mentioned in our speech by Mr. Dalmedi, the economy is growing. Well, infrastructure is growing. Very well. Airports are coming up in very strong locations. Connectivity is improving in all cities. So on the back of its real estate, I am very, very confident that it will grow very strongly. And as of now, even with the mortgage rates coming down, I think the story which was largely concentrated in the luxury segment now will also expand to the mid segment. So I think we are very positive about the whole real estate market expanding not only in the real, in the luxury segment but also in the mid premium and the mixed segment.
Prithvi Raj
Just a bookkeeping question. Will there be any revenue recognition next year or bulk of the revenue recognition will start running from 28.
K T Jithendran
There will be some kind of revenue recognition. Our project in Bangalore, Dharma, we’ll definitely hand over next year. We’re expecting a top line of about 650 crores. From there we also will be handing over in Navya, near new phase in Navia. So I think that much will be there next year and after that it will be when Niana gets completed.
Prithvi Raj
That’s all from my side.
K T Jithendran
Thank you.
operator
Thank you sir. Ladies and gentlemen, to ask a question please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Taran Agrawal from Old Bridge. Please go ahead.
Tarang Agrawal
Hi. Just wanted to check for your upcoming launches, how would you segment, I mean what percentage would you segment as luxury projects and what percentage would you segment as? So to say slightly mid market. Ish. And second, as you replenish your pipeline, is there a conscious effort to sort of move away from luxury going forward?
K T Jithendran
Hi Karan. Yeah. So we have always maintained a certain price threshold below which you are not willing to look at. Because it also will make sure that whatever we deliver, we deliver the best of quality within the requisite time. So we need to work with the best of contractors and consultants. So we have said that below 9,000 rupees per square foot we’ll be reluctant to look at in markets. Any market, maybe Bombay could be slightly higher. But I think when we choose luxury also we be very careful about which micro markets, which product, which location and what’s the kind of supply and demand in those markets.
But I think given right locations, real estate is all about micro markets being location. That region, the competition is very localized. So in every location, even in the higher luxury segment, there will be enough and more locations where the right circumstances are, are there, the right characteristics are there. We can really do good project and can have very super demand. So we will not consciously kind of decouple from that area, I think we continue to look at micro markets with high potential. It could be in the high luxury segment, it could be in the mass premium segment. But I think we’ll continue to look at the right micro markets.
Tarang Agrawal
Got it. And typically when you look at micro markets, how do you define micro markets? I mean is there a certain fixed radius, certain fixed time that it takes to navigate? How does it work?
K T Jithendran
Yeah, so that, so some micro markets are large. For example Thane itself, there are several micro markets in the city. In the district of Thane there is within Thane west there are several micro markets. So each, it changes from each region to region. Mostly about addresses. Locations is largely the address. So between Worli, Prabhadevi, Lower Parel, I mean it’s not one single micro market. These markets change worldly. CFACE could be another micro market. I’m just trying to see a nuance of how micro market works. So there is no very clear definition. It’s largely the address and where people likes to belong.
Tarang Agrawal
And Got it. Got it. Thanks. Thank you.
K T Jithendran
Thank you.
operator
Thank you. Sir, the next question is from the line of Ayush from Choice Institutional Equities. Please go ahead. Hello, Mr. Ayush, your line has been unmuted. Please go ahead. Hello Mr. Ayush, your line has been unmuted. Please go ahead.
K T Jithendran
Please move to the next one.
operator
Okay. Sir, the next question is from the line of Janvi Shah from Share India Securities. Please go ahead.
Jahnvi Shah
Hello, thank you so much for letting me ask the question. Hello. Hi, sorry, just have like one question on the debt side if you can give us some look on how the debt situation is going to look moving forward. And also the second question is for the next year’s launches we have a lot of pipeline but all of them is. And both that we don’t have much. I think someone else also asked the Same question for FY27. How are we looking at the cash flows and everything? You can just give some guidance on the same.
Unidentified Speaker
So our net debt has come down substantially. Q1Q so our net debt currently is 3500 and it’s around 0.8 is broadly the net debt and debt to equity. And we have significant capacity to take on more. But our cash flows are strong so our net debt will remain very, very comfortable. And also out of the net debt which I mentioned, this includes some of the construction finance and the LRD which we have taken for the rental assets which are 100% leased out. So the debt position is very comfortable and we have additional dry powder to kind of take on more debt.
K T Jithendran
In January. We are also not considering right now the money to be coming from the sale of paper business that if when it comes it will be extreme.
Jahnvi Shah
Okay. So that will help our cash flows. Thank you so much. Also I know you answered the question but in when I was looking at other people’s calls in this quarter there was some slowdown in the sales. We had a very good sales velocity. I feel moving forward, what do we think is going to happen? It is a very mixed opinion in the industry as to will work or segment will work on our end. What do we think is going to happen? Second, any more approval delays which are unseen or that we think is going to happen.
K T Jithendran
So Janvi, we don’t, we’re not expecting anymore. We are awaiting some RERA clearances. I think the rest is on track to our cnba. There is a few approvals to come but that’s what we have kind of, you know, pushed it to the next year. And as I mentioned earlier also we are extremely confident about the market. In the micro market we are launching. We have to be very prudent about the product designing of the product sizing, etc. Pricing, all of that. So we have done a lot of work on that and we are hoping that we should be hoping to deliver a very good performance in Q4.
Jahnvi Shah
Thank you. Thank you so much.
operator
Thank you ma’. Am. Ladies and gentlemen, to ask a question please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Dixit Doshi from Wilestone Financial Advisors Private Limited. Please go ahead.
Dixit Doshi
Yeah, thank you for the opportunity again, sir. Many projects were, you know, stalled because of this easy clearance issue which is now, you know, which is now behind us. So because there were many projects which were stuck. So do you think there’ll be a lot of supply coming, coming in Bombay going forward? Because all of these projects will get easy clearance and they can come simultaneously. So how do you see that supply pressure in Bombay?
K T Jithendran
Hi Dixit. As I mentioned, largely these launches and the success of launches remains on the concentration of supply in that micro market. So I think, think largely these projects which you are mentioning must be spread all over. I don’t know of any project launches in our micro market in Thane or in our micro market in Gurgaon. So we are not really too much bothered about that. I think we have a good product, we have good demand and with the right Pricing and we should be able to perform very well.
Dixit Doshi
Okay. And any specific reason for this deal? Because we did not anticipate it earlier because we were guiding for Q4 launch of Niara 3 and now we are.
K T Jithendran
I just mentioned. Yeah, I just mentioned, you know, this was because of the Supreme Court order which is not anticipated. We, we thought it will be, will be the, the case will be now favorable. When it went the other way, there was sometimes some standoff between us and bnc. We had to extricate that land out of our approval system. It was all combined and there were some challenges around that. Then it took some time for us to resolve it. So as always, it takes. So that was unanticipated.
Dixit Doshi
Thank you.
operator
Sir. The next question is from the line of B plab from Antique stock broking. Please go ahead.
Biplab Debbarma
Yeah, thank you. Good. Good afternoon everyone. Yes, sir. So my first question, I saw some, some news article on BMC land. That BMC land that they floated a tender to auction that land parcel, 30 year lease. So they also put a base price. Any comment on that? Are we going for that land parcel? Bidding for that land parcel or what is the, what is the, what is, what is the view on that?
K T Jithendran
Yeah, I mean. Yeah. So that the same parcel that you know that we, that the Supreme Court had decided to go in favor of the BMC BMC has come out of the tender. Now they extended the tender date. We are also exploring participating in that either directly or through partner. Because currently as we stand, we are not qualifying as per the tender conditions to participate in that. They ask for very, very high level of completed projects which we as a young company are not qualifying. So we are looking at it constructively whether we can participate in that.
Biplab Debbarma
Oh, okay, okay, okay, okay. And my second question is, you know. You mentioned sir, that you expect to close, you’re hopeful to close some deals before March amounting to GDV of 10,000 or 15,000 crore. Just wondering how many deals and in which the markets, if this get closed, how many deals do you think would amount to this? 10,15,000 crore GDP and in which market?
K T Jithendran
Yeah, so I’ve been kind of guiding the whole of this year. So to tell you any specific number, I wouldn’t be doing justice. It could be amazing. Sure. It’s not just one deal. It could be more than a deal and it will be largely in ncr, Mumbai, Pune, Bangalore, these four markets within these markets only. I don’t want to guide you beyond that because we are chasing quite a few number of deals. It could be a combination of any of this. Just keep our fingers crossed and hope that we kind of conclude it. I’ll be very happy. And it will not before March. It will be before March. March 31st. That’s the aiming.
Biplab Debbarma
Oh yes, yes, yes. No, no. Sir, we are hopeful that you’ll be able to close. Thank you.
operator
Thank you, sir. The next question is from the line of Amit Shivasav from BNK Securities. Please go ahead.
Amit Srivastava
Yeah. Thank you for the opportunity and congratulation on the good operational performance, sir. So my question is more towards numbers. One is. So what would be the conception during the FY26 and if we look at.
K T Jithendran
Construction, what construction expenditure?
Unidentified Speaker
Hello.
operator
The line for the Amit sir is disconnected. So give me a moment. The next question is from the line of Taran Agarwal from Old Bridge. Please go ahead.
Tarang Agrawal
I just wanted to understand for the sale of paper business what’s the post tax cash that you will receive?
K T Jithendran
So basically we have a lot of mad credit available to us. So technically there won’t be a significant impact of cash flow due to the tax element. So. So we expect the entire amount to be a cash flow event.
Tarang Agrawal
Okay. And when I look at your leverage you call out the 420crores of IFC funding separately. Is the structure slightly different from your other sources of debt?
Unidentified Speaker
Just to clarify, this includes the IFC funding. That. That’s why we just put it in the. In the note. That’s why we call it out.
Tarang Agrawal
Thanks.
operator
Thank you sir. The next question is from the line of Akash Gupta from Nomura. Please go ahead.
Akash Gupta
Hi. Sorry for. Actually this. On the BMC land. I mean the land which BMC has reported. Do you you think that any other developer will likely bid for that one? Because you already have a lot of our project coming in. So don’t you think we already have some competitive advantage there? And like would it be like disadvantage any other competitors because it’s just a small land parcel.
K T Jithendran
It’s six acres of land. So yeah. So I mean there is 7, 6, 500 tenants on that land need to re accommodate them. And the balance land is available for exploitation. Yeah. So I mean if we have, we definitely be getting a great competitive advantage for us. That’s why we would like to explore on legal means of you know some tying up for a land like that.
Akash Gupta
Okay. Thank you sir.
operator
Thank you sir. Ladies and gentlemen, that was the last question for today. I now hand the conference over to management for closing comments.
Rajendra K. Dalmia
Thank you everyone for taking out time to attend today’s call. We are very excited for the times to come and hope to come to you with a lot of news in the next call. Thank you very much for an interest in our company. Thank you.
operator
Thank you, sir. On behalf of BNK Securities India Private Limited, that concludes this conference call. Thank you for joining us. And you may now disconnect your lines.