Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Aditya Birla Real Estate Limited (NSE: ABREL) Q4 2026 Earnings Call dated May. 07, 2026
Corporate Participants:
Rajendra K. Dalmia — Managing Director
K T Jithendran — Chief Executive Officer & Managing Director
Keyur Shah — Chief Financial Officer
Analysts:
Jai Shah — Analyst
Unidentified Participant
Karan Khanna — Analyst
Unidentified Participant
Pritesh Sheth — Analyst
Akash Gupta — Analyst
Unidentified Participant
Biplab Debbarma — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Unidentified Participant
Dixit Doshi — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Aditya Birla Real Estate Q4FY26 earnings conference call hosted by HDFC Securities. As a reminder, all bias per 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 the 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.
Jai Shah from HDFC Securities. Thank you. And over to you, Mr. Shah.
Jai Shah — Analyst
Hi. Good morning everyone. On behalf of SDS Securities, I would like to welcome you all to the 4QFY26 and Folio FY26 earnings conference call for Alitabilla Real Estate. Joining us today from the management are Mr. R.K. Dalmia, MD, Aditya Birla Real Estate, Mr. K.T. Jijendran, MD, CEO, Birla Estate and Mr. K.U. Shah, CFO, Birla Estate. We will begin the call with opening remarks from the management following which we will open the floor for question and answers session. I would like you to hand over the call to the management for opening remarks.
Thank you. And over to you sir.
Rajendra K. Dalmia — Managing Director
Thank you Jeff. I’m RK Dalmia. Good morning everyone and thank you for joining us for our Q4FY26 earnings call. India’s economy remained resilient in the quarter ended March 2026 Q4 FY26 with FY26 GDP growth estimated at 7.6% and FY27 projections of 6.9%. It reinforces its position among the fastest growing major economies globally. Supported by strong domestic demand, a stable policy environment and continued investment activity. Despite of some global factors including geopolitical tensions in West Asia and potential energy price pressures.
Inflation has remained under control at around 3.2 to 3.4% in early 2026 and and projections of 4.6% for FY27. The real estate sector continues to benefit from this largely supportive condition strengthening sector’s long term growth trajectory. In terms of industry performance, the residential demand remained stable in Q4FY26. However, premium and luxury segments continue to outperform while affordable and mid income demand softened. Tier 2 city supply showed a moderate dip with a growth absorption for over the FY26.
MMR remained resilient with a moderate growth in both adsorption and supply over the years. Market dynamics in Bengaluru remained strong and favorable as it witnessed growth in both absorption and supply while delivering a healthy increase in price growth Y O Y ncrs witnessed decrease in supply but growth in absorption coupled with increase in price growth. Pune has seen relatively sharper moderation in activity in terms of both supply and absorption. Further, pricing has shown a healthy growth across all the four regions YUI growth MMR 7.4%, Bangalore 13.9%, NCR 8.5% and Pune 6%.
Overall regional trends continue to reflect premiumization and more selective buying behavior. Industry players are responding to this evolving demand environment through calibrated launches, disciplined pricing strategy and flexible payment plan to support absorption. On commercial front, the market continues to witness strong leading activity supported by GCC and demand for Grade A assets resulting in tightening vacancy level and a continued rental upcycle across key markets. Overall, the Indian real sector is stable with increasing emphasis on execution, brand strengthen and product differentiation.
Now our performance for the quarter I am pleased to share that we have delivered Exceptional close to FY26 Q4 FY26 has been one of our strongest quarters to date. We achieved Pre sales of Rupees 4288 crores reflecting a robust 69% QoQ increase. Selection for Q4FY20 remained healthy at Rupees 994 crores and we recorded area sales of 3 million square feet making an impressive 75% QoQ growth. This momentum was fueled by the outstanding response to all to our new launches across regions. Villa Areka Phase 2 in NCR continued this strong trajectory with 97% of launch inventory sold in the launch quarter itself contributing rupees 1600 crore.
In MMR Birla Tranya witness increasing demand delivering rupee 952 crores in sales. Our Bengaluru launch Birla Premaiya phase four continued to build on the success of earlier phases 649 crores and in Pune Birla Pune phase two added rupee 250 crore to the quarter, reinforcing our presence in Pune micro market for the full year. FY26 we closed with the presales of rupees 8136 crores, collections of rupees 3341 crores and area sold to 5.5 million square feet, reflecting the depth, resilience and stability of our business.
Our Redevelopment front We announced our maiden redevelopment project in Khak with a GDP potential of Rupees seventeen hundred crores. Discussions with several more societies are progressing well and we remain optimistic about concluding additional partnerships in the months ahead. This segment will further contribute to our growth going forward. Operationally our construction progress remains firmly on track across projects. Safety and sustainability continue to be at the heart of our execution approach.
Our rigorous safety practices were recognized by the British Safety Council which conferred upon us the precious sword of honor along with five golden star ratings. Our commitment to forcing an inclusive, diverse and equitable workplace is stronger than ever. We are proud to share that. Birla State was recognized as one of the best organization for women 2026 at the 6th edition of ET. Now our ESG leadership was further acknowledged by British world which ranked ABR among India’s top 60 most sustainable companies and number 2 in the real estate and REIT category.
As we look ahead, our commitment remains unwavering. We continue to prioritize designs excellence, customer centricity and the highest standards of safety and quality. We are building not just homes but superior experience creating long term sustainable value for our shareholders. Thank you. Thank you so much.
Operator
Thank you. Sir. Sir, should we open the floor for the Q and A?
Rajendra K. Dalmia — Managing Director
Please go ahead.
Questions and Answers:
Operator
Thank you very much, sir. Ladies and gentlemen, we will now begin with a question and answer session. Anyone who wishes to ask questions may please press Star and one on their touchtone phone. If you wish to withdraw yourself from the question queue, you may press star and 2. Participants are requested to use only 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 Ambed Capital.
Please go ahead.
Unidentified Participant
Yeah, Hi, good morning and thanks for the opportunity.
Operator
Mr. Karan. So the participant has left the queue. I’ll request the participant to kindly rejoin the queue. In the meanwhile, we’ll take the next question. Okay. Karan Khanna is in the queue, sir. I’ll just promote him. Thank you. Karan Khanna, please proceed.
Karan Khanna
Yeah, hi. Am I audible?
Operator
Yes, you’re audible now.
Karan Khanna
Yeah. Hi, good morning and thanks for the opportunity. Just a couple of questions from my side. Firstly, Katie, sustainance sales seem quite healthy for the fourth quarter. Almost at 20%. For the 7,300 crores of inventory that you have remaining, what kind of sustainance sales do you foresee going into FY27?
K T Jithendran
Hi Karen, are you. Can you hear me?
Karan Khanna
Yes, Katie, we can hear you now.
K T Jithendran
Yeah. Yeah. So as a sustenance. Yeah, so we had a very good traction in our Bangalore project which is largely sustenance led and also Niara. Otherwise the bulk of it was from new launches. So we’re not giving a clear guidance for the next year. All I want to tell you that. I mean for the current year we have got about 9,000 plus crores of new launches and 7,000 crores of sustenance sales coming up. But we are refraining from giving any guidance because it’s very difficult to actually predict what kind of sales we can estimate.
So that’s why I’m not giving any guidance.
Karan Khanna
That’s fine. Just following up on the Mumbai market. If you could just talk a bit about the overall market given that you’d seen 1% growth in absorption and 2% growth in supply and yet your existing inventory in Mumbai is at about 4000 crores and the pipeline inventory for FY27 is also very much concentrated in Mumbai especially. So how are you looking at the luxury market in MMR overall and how do you plan to manage launch timelines to allow for ample response to the launches? And also on the launch pipeline, if you can talk a bit about at what stages of approval are all these projects currently at?
And I’m just trying to understand the downside risk in terms of launch delays that one can build in these projects.
K T Jithendran
Yeah, so I think we had a fairly good year last year with respect to Mumbai. Yes, the launches came at a very faggot end of Q4. Thane Birla Taranya did extremely well. We did about 9960 crores or so of bookings in the few days that was left for us in Q4. And the momentum continues. Niyaran also with whatever left out inventory was there, I think they had a healthy strike rate of at least two to three flats per month last year and with the new launch I think it will really pick up. That’s a different product and we expect a very strong response for the market.
Already we have a reasonably strong queue lined up for this project and we also signed a new project in CAR which we are really working overtime to make it launch ready. Quite hopeful that we will be able to make it and it’s a very exciting market, very strong demand, coming up with a unique product. So pretty excited about that. Our launch in Bolshar also, again it was a very far end but we did clock about 80, 90 crores there. We are expecting to sell it out completely this year. So I think from the micro markets where we are in especially you know the Thane Navi Mumbai junction market worley especially with our brand and the Niara which has been created very strong strongly and the new micro market in western suburbs, we are pretty excited and I expect a very strong response for us in this coming this year as far as the launch for Birla Niara Tower C is concerned.
It’s really touch and go. We are pursuing very hard to get the approvals. It could be touch and go. We are expecting first half of hedge fund but it’s quite possible that by the time we take the launch it may spill over to Q3 also. So fingers crossed about that. But overall I think we have enough time for us to do very strong numbers in Bombay this year.
Karan Khanna
Sure. And just lastly on Bangalore, given that this has been the strongest market for you and also the strongest response and yet you don’t have any major launches slated for FY27. So how should we think about the BD that you’re targeting in this market going into FY27?
K T Jithendran
Yes, yes, good question. I think we have had a wonderful response in all of our five projects. We have handed over one and we are in the process of handing over another one this year. So we’ll be left with Rimaya, Ujaswi and Iwara. We expecting very strong sustenance sales from both Tramaya and Iwara and we are also very aggressively looking at bds. We have quite a good sort of medium sized proposals which are working very hard. Largely our total focus this year will be concentrated on building our BD portfolio and we are quite optimistic about that.
Karan Khanna
Great, thank you and all the best kt.
K T Jithendran
Thank you. Thank
Operator
You. Thank you sir, we’ll take the next question from the line of Jay Shah from HDFC Securities. Please go ahead. Mr. Shah, I have unmuted your line. Please proceed.
Jai Shah
Hi, can you hear me now?
Operator
Yes,
Unidentified Participant
Yeah,
Jai Shah
Hi sir. So can you quantify the launch timing like in terms of H1 and H2, FY27 which approvals remain key dependencies and also like we are seeing that the like in world there is quite a good supply now. So how are you like see like do you see any slowdown in luxury absorption or pricing resistance given the increase in South Mumbai supply like amongst the peers?
K T Jithendran
Okay, thank you Jay for your question. So first in terms of time lines as I mentioned about Coversea Birla Niyaram, I mean the brand has come very strongly in that micro market and we are still commanding a good premium and demand and we expect cover C to really accelerate that demand considering the initial response that sort of, you know we are building up of course we haven’t launched it but you know, discussions with channel partners etc. The only challenge is that we are working very hard to get the approval.
So it may be, you know we may just get rera at the end of Q2 and we may launch it either in Q2 or maybe early Q3. But we want to make sure that we are completely ready in all terms when we launch it. So that is Q2 Q3 new phase that will happen in Q3 which is the Khane second phase. Once we sort of exhaust our current phase substantially then we have got a new project with science redevelopment project in Khar which we are working overtime to make it launch ready in this year itself. So definitely that will be Q4.
Then Birla Navya, the last phase in our know golf extension location that you’re planning it in about Q3 Birla Punya in Pune, the new phase launch you’re expecting that should be in again 2, 3 and then Birla Evam in Manjari, it’s in Q4 Pune again. So this is largely the timelines.
Jai Shah
Okay, thank you sir. And also one more question on bd. So like can you share the current active BD discussions like by geographies which is mmr, ncr, Bangalore and Pune and the preferred asset light versus outright acquisition?
K T Jithendran
Yeah, I mean I can’t just share this with you in great details but I can generally use a trend that we’re looking aggressively at. Noida, sort of an outright Gurgaon, jda, Mumbai JDA and outright both but lots of redevelopment, at least four or five projects. Pune outright and Bangalore JDA and outright.
Jai Shah
Okay, but can you like quantify like the amount of GDV overall? I could say
K T Jithendran
Roughly about. Yeah roughly about 60,000 crores of projects. We are at this point of kind of pursuing. We are trying our best to maximize what we can do.
Jai Shah
Okay, and what would be the mix for MMR in terms of like in the 60,000
K T Jithendran
MMR will be about 35.
Jai Shah
Okay, so and so and lastly on so just wanted to know like what are we seeing in terms of target steady steady state operating cash flow conversion from pre sales over the next couple of years.
K T Jithendran
Sorry, what are you exactly asking in terms of your customer collections? Are we talking about that? Customer collections, Jaish? We are largely. Most of it is linked to construction progress barring a few of them. But mostly we attempt to collect at least 65 to 70% by the time we finish the structure of the building. So there was a little bit of flexibility here and there but largely that’s how we’re looking at so far we have been doing very strong in customer collections. We grew by more than 23% from last year’s last to last year’s Collection to last year.
We are looking at a very healthy growth this year also from that number.
Pritesh Sheth
Okay. Okay. Thank you so much.
K T Jithendran
Thank you Jaish.
Operator
Thank you. The next question is from the line of Pritesh Seth from Access Capital. Please go ahead.
Pritesh Sheth
Yeah, thanks for the opportunity. So just first one again to be very specific on Bangalore launches which Karand earlier asked for. I don’t see a last phase of Trim Maya coming this year. You know any specific reason why? Because we don’t have any too much of inventory there. Almost 15, 150odd jobs only. So yeah.
K T Jithendran
Hi Pradesh. Yeah, I think we are now focusing on execution. We have lot of soldiers inventory. We are building it and I think we can get a healthy margin. I think we would wait and really maximize in the last phase. Prices have really gone up there and every launch has been at a higher price. I think we really would like to now maximize the revenue from our final phase. As you mentioned, it’s not much but it’s worth waiting for. Also there’s a project which has taken about 5, 6 years just because it has been at least 52 acre project.
So it helps us to really plan the launch of the last one in a big way in terms of there are any kind of price escalation, cost escalations or anything you want to just keep that inventory as a, as a hedge because there is enough of done enough thing, enough of positive cash flow is there. So we’re really focusing on now really maximizing on the last phase so that there’s no hurry to launch that now.
Pritesh Sheth
And in terms of let’s say any business development we sign off from here on, right. We saw car getting added to the FY27 launch pipeline and we signed that project just in March or April. So any of the potential business development opportunities you think can be, you know launched this year by Q3, Q4 or for this year we are, you know this 10,000 crore, roughly 10,000 crore kind of launch guidance should be the number to look at.
K T Jithendran
Pritesh, I would really refrain from giving any, you know, I mean you, any kind of guidance. You know better than that how indeterminate it is. You know, whatever guidance you may give, I’m only happy to say that you know we did give finally in the Q3 last year guidance that will exceed and we did manage to exceed that. We’re pretty happy about it. But it is like that also happened without the launch of tower C. We couldn’t launch it. So any guidance that I give will be, you know, could be misplaced because of the very sheer uncertainty of when this launches can take place largely dependent on the approval schedule.
Approvals are largely based on two things. One is the environmental and the ngt. So those are pretty indeterminating. Though we do our best in estimating them. So I don’t really want to give any sort of clear estimates. Having said that, our whole attempt would be to launch as quickly as possible all of our projects. Because that’s where we try to put all our efforts in. Since we pay full price for the land. I would love to be in a situation where I can grab a project which has all the approvals and launch it immediately.
But it’s quite unlikely because very very difficult to get that sort of project and also to our standards. So that seems a little too far fetched. But I won’t lose hope on that.
Pritesh Sheth
Sure, Got it. And just.
Operator
I’m sorry to interrupt you, sir. I would request you to kindly rejoin the queue for follow ups there. There are others who are waiting. Thank you so much, sir. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to only two per participant. Should you have a follow up question, please rejoin the queue. We’ll take the next question from the line of Akshay Thakur from Helios Capital.
Please go ahead.
Akash Gupta
Hello. Hi sir. Thanks for the opportunity. So my question is pertaining to your land in Telugao and Kalyan. So we have a huge chunk of land in Telugu. From what I. I got a sense from a previous meet that you plan to do a senior living project there. And that area is so getting more projects in similar manner. So can you give any guidance on the GDP potential or what is the plan in terms of numbers for Telugao and for Kalyan as well.
K T Jithendran
Hi Akshay. Yeah. So as regards these two parcels of land, this belongs to our historical land parks in that know the century had in its kitty also we must remember that telegram land is an agricultural land, needs to be converted etc. So it’s in a very preliminary stage. It’s not part of the Pune Development scheme as of yet. So the entire process of conversion etc is expected. It has not happened because the region has not come still under PMRDA etc. So it’s about 45 acres of land. So we have plans, we have aspirations for that.
Nothing is really clearly laid out as of now. Why we thought senior living is because of course the climate is proximity to the Aditabilla hospital and Also the government is coming up with some friendly schemes for senior living even if it is not a converted zone. So we are exploring from those point of view but too early to give any kind of clear details and numbers on this. Similarly in Kalyan we don’t have as of now any land which is ready for development for the next few years. Whatever we had is all exhausted now.
The large plant and all is too far fetched and it will take a lot of time because of fully production going on with more than 7,000 workers etc. So that’s not in the offing right count. So that’s the update on Telegram and Kalyan.
Akash Gupta
Thank you for that. One more question on. On Thane Print you had previously guided that there would be some sort of commercial projects also coming up. Could you share an update on that?
K T Jithendran
Yeah. So we have this, you know Birla Taranya which is land bought from Hindalco. And we have a 50% investment from IFC. We launched a very successful residential first phase launch. We also have an aspiration to build a commercial portfolio there for about 5 lakhs. So we are in the process of designing that. But it would be either fully leased out or maybe partly, you know, maybe one tower. We may look at strata sales first. Faster cash flow and more demand and more frontal sales. So we are in the process of finalizing that.
Once we get a clear picture on that ourselves as a team then we’ll be happy to disclose that. But definitely there are plans to create at least about 5 lakh square feet of commercial
Akash Gupta
In Thane.
K T Jithendran
Yes, in.
Akash Gupta
Okay. Okay. Thank you so much sir.
K T Jithendran
Thank you.
Operator
Thank you. The next question is from the line of Varun Julasaria from 361 Capital. Please go ahead.
Unidentified Participant
Yeah. Hi sir. Sir, first of all could you just update us on the cash from the ITC deal? When is it expected and what are the current status on that?
Keyur Shah
Sure. The ITC transaction discussions, IDC are progressing well. As you are aware we received a key regulatory approval which is the composition Petition Commission of India. That application was made by ITC and government granted that approval. Now certain state level approvals are pending and we expect to conclude the transaction in this quarter. It’s moving, progressing well and our estimation and expectation is that it should get completed in this quarter.
Unidentified Participant
Okay. And sir, on the construction, Spencer, how is it looking like for the FY27 and and how much capex do we plan spend on the BDS this year? Sir?
Keyur Shah
So from a capex point of view, construction spend this year in 27 should be close to 1000 crores. I’m sorry there is a
Unidentified Participant
Method.
Keyur Shah
Yeah, yeah. The construction spend this year pure construction spend would be around 1000 crores. As regards CAPEX for for land acquisition we have a very strong cash flow and cash balance. Our operating cash flow is positive. We have almost 1000 crores of mutual fund balances at a console level and we also have almost 1300 crores of cash and there are balances. So from a capex point of view we have the adequate cash to make acquisitions. Further we also have demonstrated partnerships with leading global players.
So in case of any large acquisition we have the ability to bring on partners as and when required for making capex land acquisition.
Unidentified Participant
For the construction spend you mentioned thousand crore right? Because this year we’ve done 31
Keyur Shah
So see 31 includes you know all expenses. It’s the pure. I’m mentioning to you the pure construction spend because the project development outflow which we show in 3131 includes you know operations expenses that’s around 920 crores. For the current year I stand corrected. For the FY27 it should be 1200 crores. This also includes other items like you know, approval costs, design costs, you know any you know deposit paid for the deal which we announced recently. So it’s a combination of all of that.
So 3131 which is there in the cash flow that also includes India’s or accounting adjustment whereby for revenue share. So that note we have put in the cash flow. So in that sense last year we spent 924 crores on construction. This year we should be spending 1200 and odd crores for construction.
Unidentified Participant
Okay. And sir on the BD front since this year we have not done any significant bd. Sir, is it via like is it the IRR or the expectation that is not allowing us to approach the BD or is it you know the land title or there is another, some other issue which is being holding up.
K T Jithendran
Hi Varun. Yeah no no it’s a combination of IRRs. Of course you look for healthy IRRs because you know this is a multi year project. You know multi situations come up cost escalation. So we provide for all of that in our business plans. And you also look for a reasonable strong hurdle rate in terms of IRR. For outright we look at at least 16% and it is a GDA upwards of 18 19%. But that’s not really the hurdle because there are enough and more proposals coming. Thing is that in our due diligence is we are very particular about what kind of risk we take.
So some of them happen, some of them doesn’t happen. But I think it’s always praised to be careful and prudent because as I mentioned, the business goes through cycles. The business goes through different economic cycles also and real estate sentiment cycles. So we don’t want to be caught hanging and any part, you know, oh, this week risk we didn’t consider and you know, therefore it will come and kind of, you know, bite us back and put us back by a few years. It has happened. It happens in real estate all the time.
You have to careful to the extent possible while doing. While doing bidi. But that’s not the real case. See what BD is not something which we can keep on saying every quarter. We can can do so much because it’s an exploratory thing with so many risks up there. As I mentioned, the right combination of risk and return comes at any particular point. It’s possible that we may do multiple projects in a single quarter or we may not do anything for a few quarters. So I think that we have also demonstrated that this happened in the last two years for us.
So we are pretty confident given our pipeline and the company kind of projects we’re pursuing that we are, you know, we’ll be very soon announcing of them. The timing we can of course predict very accurately. It’s all estimated. But it’s very probable that now that you know, we were swung from the other side of the pendulum suddenly we may announce quite a few deals together. So it’s not lack of resources, you know, or lack of taking, you know, calculated risk. It is just the timing. You know, all of these things should come together.
So we are not really worried about that.
Unidentified Participant
Okay, so just last question. I’m
Operator
Sorry to interrupt you sir. I would request you to kindly rejoin for follow up. Thank you so much. We’ll take the next question from the line of Biplup Deverma from MK Global. Please go ahead.
Biplab Debbarma
Good morning everyone. Morning. Good morning sir. I don’t see. I don’t say you have explained. I also don’t see Arika or Mothra Road. So Arika, I think there is a one tower left and you have sold everything. Excellent responses and congratulations on that. So just wondering what happened to Arika and what is the status of Mathura?
K T Jithendran
Yeah, hi vip. So Arika, I think you know of the all the towers, seven towers you’ve sold now, six towers with almost, you know, 100% performance. I would really like to do something extraordinary on the last hour and I would like to wait and you know, time it better, you know, in a much more market because in that market and I’ve explained to you in the past also there’s absolutely no supply and this project has come out so well, come out designed well, really do something extraordinary on this.
And I think we can improve our pricing considerably from what we have done today because the very unique positioning that project has attained in that micro market on the back of the Aditya Birla brand name. So I just want to kind of maximize the returns for that Mathura Road. As we mentioned in Delhi we have been struggling with the approval thing. I think now we have found a way we can, you know, we are making progress there in getting approvals. But I don’t want to take a chance and you know, declare that will happen this year.
But I’m quite confident that will happen early next year.
Biplab Debbarma
Okay. And my second question is on you. You know, beginning of last year you gave some guidance of doing 15,000 crore of around that number in FY28. And so for that we need to have enough GDP in our portfolio. So do you think this, I mean I know you will be doing lot of business development this year and really optimistic. So do you stick to that number and would you be able to do enough BD to reach that number?
K T Jithendran
I think, you know, yeah, the very. Absolutely, you know, correct in saying that it’s not just doing BD but also the timing of BD is very critical and finding out which how much sales booking will be done. Looking at this kind of trajectory that we’re having today it’s quite possible that 15,000 instead of FY28 may kind of slip over to FY29. There is a definitive possibility of that though. We’ll be trying our level best to do this. But I think it’s quite likely that it will move up from FY28 to 29 has been precisely for the reasons that you mentioned.
But our attempt will be to continuously stack up our BD pipeline and to deliver on those.
Biplab Debbarma
Thank you sir. Thank you. All the best.
Operator
Thank you. The next question is from the line of Pritesh Seth from Access Capital. Please go ahead.
Pritesh Sheth
Yeah, yeah. Hi. Hi. So a couple of follow ups. First if you can highlight the status of the commercial projects that we are planning in Worli Century in phase two and redevelopment of Century Pavan.
K T Jithendran
So Pritesh, our attempts are on to start these projects as quickly as possible. We are in the Design stage, you know, planning the layout etc. You know, it has to integrate with the rest of the planning location. So we have already started doing that. We’ll try our level best to actually start the construction from this year onwards. That’s our attempt. Again, sorry.
Pritesh Sheth
For both of them or just one? One each.
K T Jithendran
I would start with one of them at least. Whichever goes off the sink. And we’ll have to kind of plan our investments and who Our partner is etc. Whether you should take both of them together or we should plan one after the other. How should we stagger it? That is still under consideration. It also depends on how we get a partner for our projects. But whether we get a partner or not, we’ll definitely start the commence the construction this year.
Pritesh Sheth
Got it? And second question on the cash flows. So we club the land springs construction overheads in one line called product project development cost. Maybe Kayur, if you can help me with the split of this 3,100 crores that we have spent on project development cost. How much of it was for the land acquisition, how much was for pure construction and how much for overheads? That would be helpful.
Keyur Shah
So maybe we can take that. Because there are a lot of items. Maybe we can take that offline.
Pritesh Sheth
Okay. Okay. Okay. No worries. Thank you. Yeah, that’s it for myself.
Operator
Thank you. Sir, the next question is from the line of Fenil Brahmabat from choice Institutional Equities. Please go ahead.
Unidentified Participant
Good morning everyone. So I have some. I’m sorry to interrupt you,
Operator
Sir. So your voice is feeble. We can’t hear you clearly.
Unidentified Participant
Hello. Am I audible now?
Operator
Please use your handset and increase the volume at your end.
Unidentified Participant
Hello.
Operator
Yes.
Unidentified Participant
Yeah,
Unidentified Participant
So good morning everyone. My first question is on this other expenditure which you have reported for Q4FY26. That is around 152 crore. So I just want to know what is the components of those other expenditure. And this is like one off or we can expect this in coming period.
Keyur Shah
So we have a exceptional item in Q4 and overall the full financial year. So there is a share of loss which we have from the joint venture because of sales, marketing expenses etc are not to be inventorized. And the other exceptional item is due to the labor code. And also you know a provision we have made for one of the joint ventures in the textile business which we’ve had. So that is the exceptional item. So both combined put together is around 30. 39. 39 crores. 37 crores.
Unidentified Participant
Okay. Okay. So okay. And so out of this 152crore you are saying? 39 is the one off related to labor code and the other this paper and Pulse business.
Keyur Shah
Okay. They’re in millions. 152.
Unidentified Participant
Okay. Okay.
Keyur Shah
Yes. And.
Unidentified Participant
And yeah. And also checking on this car development project. So have you signed DA for this project or it’s just a. Under process?
K T Jithendran
No, Mr. Brahma, we have signed the DA. We have started the process of. Yeah, they started a demolition process and all that.
Unidentified Participant
Again, the last question related to collections. So our collection dips in this quarter. Why Q1. Q. So any specific reasons like because of delay in construction or getting approvals or like we haven’t have any delivery during this quarter. So can you, can you highlight any specific reason behind this?
Keyur Shah
No. So our collections have been very strong for the financial year. In fact we did almost 1000 crores of collections in the Q4. They are slightly lower than last year because we had major launches in March. So our collections for the bookings which we have announced in March would come in Q1 of the coming year. And as you are aware we almost have a 97, 98% collection efficiency. So whatever bookings we have done, those collections would come in the Q1 of this year. And the April collections also have been very strong.
So to that extent that is the reason why there is a, you know, the way the collections pan out.
Unidentified Participant
Okay, got it. Thanks. Thank you. Thank you so much.
Operator
Thank you. The next question is from the line of Murli Krishnan from Sundaram Mutual fund. Please go ahead.
Unidentified Participant
Yeah, thanks for taking question. Just wanted to understand. So you are indicating that we are holding few towers, Erica and other towers. So but whenever we launch a project those are almost like getting sold out. So what is our strategy? Sales strategy. While you know, for a particular. For a large projects. So yeah, and we are seeing that we are launching in phases also. So just wanted to understand the sales strategy. Thanks.
K T Jithendran
So. Hi Murali. Christian. See the sales strategy, of course, no is you know, we try to launch a certain number of towers, apartments, units, etc. Depend creating a market assessment of that particular micro market. How much of the demand that can be absorbed, what kind of strong velocity can we command and what kind of ticket sizes we can, you know, deliver or we can launch in that market which will get absorbed. So if you launch too much then and we’re not selling then of course there will be a cash flow mismatch because construction has to be done even if you sell one square foot.
So we try to match to the extent the best of our estimate how much Demand is the market having. And we should at least try to get about more than 50% of the product launched as sales also. And we tried to hedge the and manage the entire business plan cash flow by you know, dividing the entire project into reasonable sizes of phases. If it is a large enough project, if it is not a large enough project then we may do it in single phase also depending on the which micro market it is now. Our aim constantly in sales is to get as quickly cash positive or cash neutral as possible.
Once we have achieved that and we see that the project is now completely in cash positive area is we’ll try to maximize the margin the EBITDA margins. But IRR return on capital, return on capital employed is the first goal. So to that extent we go after velocity. And once you achieve that then we look at also maximizing the EBITDA margins. So that largely dictates our sales strategy.
Unidentified Participant
Understood. Thanks. That was.
Operator
Thank you. The next question is from the line of Chetan Sharma from Systematic Shares and Stocks limited. Please go ahead.
Unidentified Participant
Am I audible?
K T Jithendran
Yes. Yes,
Operator
Please.
Unidentified Participant
Yeah. Thanks for the opportunity. Sir. And my question, the land bank. Okay. What’s the land bank we are having now and what the expected GDV we can expect from. From that?
K T Jithendran
I think we have sort of, you know delineated it in our presentation. The kind of. We have about 70, 72,000 crores of GDV today. Of which about how much is launched? About close to 30,000.
Keyur Shah
I think it’s all laid out in our 31,000.
K T Jithendran
We have launched the balances our land bank. And of this, you know we have sold about 70, 75% launched.
Unidentified Participant
Okay.
K T Jithendran
But all the details are there in our, you know, presentation. Investor presentation. You should check on to slide number 19.
Unidentified Participant
Okay, sir. Thank you. That was from mine.
Operator
Thank you. The next question is from the line of Darshika Khimka from EV Fincorp. Please go ahead.
Unidentified Participant
Hi. Thank you for the opportunity. I see that you have a. Ma’, am. Sorry, I’m
Operator
Sorry to interrupt you. Your voice is muffled. Can you please use your handset?
Unidentified Participant
Yes,
Operator
Ma’. Am. It’s feeble. Can’t hear you.
Unidentified Participant
Sorry. Yeah. Please
Operator
Proceed.
Unidentified Participant
Yes, so I see that you have a BD potential pipeline of 60,000 crores. Could you just throw some more light on this as to what part of this could get converted in this year? What projects are we looking at some more details on this.
K T Jithendran
See, at this juncture this is confidential and not able to give more color on this. I wish that we can convert all of them. You know that would be our attempt. But depending on how the due diligence progresses, if the due diligence goes well, then perhaps we can grab all of that. But quite likely that we may do about a percentage of it. Now. How much percentage? I’m not in a position to, to disclose.
Unidentified Participant
Like no indicator number of what project out of this. You can’t, you really can’t. Yeah, it’s very difficult,
K T Jithendran
Very difficult to predict. Dashika.
Dixit Doshi
Yeah.
Unidentified Participant
All right. And also I had a question. We were almost like on the verge of closing a 10,000 crore water VD project. Any update on that? We don’t seem to have converted that. Progressing.
K T Jithendran
We are progressing. We are progressing on that. That is a part
Unidentified Participant
Of the 60,000 crore pipeline that we’re talking. Yes, it is.
K T Jithendran
Of course it is. Of course it is. Yeah.
Unidentified Participant
That’s it for me. Thank you.
K T Jithendran
Thank you.
Operator
Thank you. The next question is from the line of Dikshit Doshi from Whitestone Financial Advisors Private Limited. Please go ahead.
Dixit Doshi
Yeah. Thank you for the opportunity, sir. We have been invested in this company since last three, four years. And the one big reason is that our vision of becoming, you know, top three or top five real estate player in the country. But when we see our business development pipeline, so all the projects that we launch, we get a very good response. We have created, created a very good product. Our sales team is fine. We are getting good response. But when we see business development pipeline and we see our competitors, business development, what they do.
Do you still think we can become a number three or number five player in the country because our competitors are doing a BD of say 20,000, 30,000, 40,000 crores and we have done just 1600 crore last year. So in terms of, you know, because until we do that, our sales pipeline will always remain lumpy.
K T Jithendran
I think it’s a very good question, Dixit. One of the reasons I would strongly attribute to the outstanding success we had in our sales and launches is because of the way we choose our bd. If we had been casual about our BD selections then I don’t think we would have got such. No incredible success in our launches and the way we priced it, the kind of margins we are commanding. Having said that, of course, you know, there’s no question that we have to improve our bd. We have, you know, we are working on it.
Again, as I mentioned in the past, it’s not absolutely possible to do BD in a systematic quarterly basis depending on the risk and the kind of proposals we get, the kind of trigger of Due diligence we conduct, some of them fail, some of them fall through, some of them move ahead. So as several factors to come together. So our attempt is there on that and I wouldn’t really hesitate to compare ourselves with anybody else. Each one has their own risk profiles, approach, strategy, geographic market, market segments.
So many variables are there. We are in a very particular clear segmented market, very clear positioning with very clear strategy. And in that segment we are very clear how we are doing our BD and our approach is very clear and we’ll go in that path, not get distracted by what competition is doing. However, be well aware that you know, if there are any chinks in our armor, we would like to obviously, you know, buck up and not be defensive about it. And we are very also very sure that we would, we would like to be the among the top real estate companies in India.
But not just by size, but also by reputation. It has to go both together. Reputation and size. Just by size is not something that we are going after.
Dixit Doshi
I hope
K T Jithendran
I’ve been able to explain myself a little bit. Dixit.
Dixit Doshi
Yeah, sure sir. Thank you. And a couple of small questions. How many units we would have sold totally in Nara 2
K T Jithendran
Niara Tower B? I think they sold about net. Net about 119 out of 148.
Dixit Doshi
Okay. And so regarding commercial projects, are we. You mentioned something about the Worley and any other commercial. We are, we are looking outside
K T Jithendran
Also. We are looking outside of early also. We are having a strategy to really do premium commercial spaces across region regions.
Dixit Doshi
Okay. Yeah, that’s it. Thank you. Thank you.
K T Jithendran
Thank you.
Operator
The next question is from the line of Vidan Trani from Unifi Capital. Ima. Please go ahead
Unidentified Participant
Sir. Hi sir, good morning and thank you for the opportunity. I would just like to ask one question on MMR that we have launched two projects here and as a percentage of the booking, as a percentage of GDV we can see that we are less than 50% and in other regions, that is NCR and Bengaluru, we have able to achieve greater than 95% of the GDV. So is there any specific reason for that like demand or supply or are the launches were. The launches were in the late, you know, late of March, at the end of March and we can see in Q1
K T Jithendran
So. Hi Vedant, I think you have asked the question and answered it yourselves precisely that we just launched in the FA end of March. I’m hoping that the whole this thing will skew this year. This year I think because of the, you know, Tower C launch and also renewed focus on Saranya and Thane and Bolsar Biralamba. I think we’ll see a very strong skew in favor of Mumbai region, MMR region this year.
Unidentified Participant
Okay, sir, got it. And, and regarding the Pune market, what’s the situation that like there also I can see that it’s around 35, 40% of GDP.
K T Jithendran
Yeah. Pune is a steady market. It has its limitations also and strengths also. I think it’s a good market to be there. There’s steady demand, not too much of a price rise but because the very nature of the commercial and demand in that market and of course from silver, from Mumbai and NRI demand, etc. I think it’s a very good strong market to be there. And we can’t expect a Gurgaon happening there. But I think steady, strong velocity is what we expect.
Unidentified Participant
Okay, got it. Thank you so much and all the best.
Operator
Thank you. The next question is from the line of Varun Jula Saria from 361 Capital. Please go ahead.
Unidentified Participant
Yeah, thank you for the call off, sir. So just wanted to know like this quarter we offered quite a few like payment plans. So just wanted to know how much of the proportion like from 4300 crore, how much was through these payment plans and how much was construction link plan
K T Jithendran
Largely, almost bulk of our proposals are all on construction link plan. And even if there is a payment link plan largely we try to ensure that by that by the time we finish the structure of the building, we try to get at least 60, 65% of the money. So just barring here and depending on what that market trend is, very strong trend running on what the others are doing in that market and strong demand from the market forces there, we may have to at some point of time given some sort of flexibility in payment.
But again the overall arching premise, the policy that we would like to collect at least 65% by the time we finish the structure of the building.
Unidentified Participant
Does this imply a bit of a slowdown in the velocity, you know, across the market or is it more to do with, you know, competitors, you know, offering it and more to do with because
K T Jithendran
If you look at our launches, we did about nine launches last year. A bulk of them came in the last quarter because of certain, because of the approval process. But you look at our response has been outstanding. We are done 97%, 100% of launch sales. So I really can’t blame that there is a slowdown not in any of our projects. We have been exceptionally well taken. Bangalore sustenance, take it. Burgam launches. Take it. Any of these markets you look at. So I really can’t point a finger to any of our launches.
There has been a slowdown that is not yet reflected in any of our launches.
Unidentified Participant
That’s what we were thinking, you know, why this payment plan so often when we were already blocking
K T Jithendran
Market forces and there has been this geopolitical development which happened in the last quarter. People are not able to really take money, get money quickly into the market. It was false. You know, all these things happened in the last quarter. So that’s one reason why people found it really, you know, difficult to. They’re desperate for making bookings. But the cash flow liquidity was a huge problem because the developments and the war scenario in Middle east and all that. So that generally impacted.
So that said we have to do some extensions in that market otherwise. And all of them have come back very strongly this quarter with their payment plans. So I. Yeah. So there is. This is largely because these recent developments.
Unidentified Participant
Lastly, sir, on the construction material, are we seeing any issue in sourcing and how much cost escalation? You know, we factor in given that almost everything has gone up.
K T Jithendran
Yeah. So because of, you know, oil prices and you know, disruption in supply chains, there has been an impact on cost. But being a very prudent planners, we have already taken it in our, you know, contingency measures, etc. So as of now, we don’t see any of them. But it’s quite likely that if these situations continue, there could be an impact. But we have been prudent enough to take from reasonable contingencies and escalations in our business plans. But if the current situation continues or deteriorates further, then of course there will be an impact.
Unidentified Participant
But availability is not an issue, right? I mean it’s not stopping.
K T Jithendran
Availability is not an issue. But transportation is a bit of delay has impacted slightly.
Unidentified Participant
Okay. Okay. So that’s it from. Okay, thank you.
Operator
Thank you. The next question is from the line of Sinclair from Lalkar securities. Please go ahead. Yeah, can
K T Jithendran
You be little louder please?
Operator
Yeah, yeah.
Pritesh Sheth
Is this better?
Operator
Yeah, yeah.
Pritesh Sheth
I just wanted to know what is the potential for the senior living for you all? Basically,
K T Jithendran
Yeah. I think senior living by itself is a huge explosive market potential in India. Huge demand. As we all know, the India, the aspirational population is growing. They have become wealthy comparatively much more wealthier than what they were in the past decade. They can afford a lot of things. They’re looking for good convenience and luxury. And there’s a lot of people in India who can afford it. And a huge part of it is people who are done well in life and many of them want independent living, luxury living and a big part of it is in senior living.
And they are looking for the same amount of comfort which they can afford. And they always also want to be independent. I think there’s a massive market for it. Where to find up the right sizing and location for that. We see a huge opportunity in exploiting that and we’re looking very, very aggressively in that market exploring.
Pritesh Sheth
Okay, got it. Any idea what would be the revenue potential?
K T Jithendran
It’s too early to predict at this point of time. But I’m sure it will be very healthy and very strong.
Pritesh Sheth
Got it. Thank you.
Operator
Thank you. The next question is from the line of Murali Krishnan from Sundaram Mutual Fund. Please go ahead. Mr. Murlikrishnan, I have unmuted your line. Please proceed sir. So the participant has left the queue. We will move on to the next question from the line of Biplav Debarma from MK Global. Please go ahead.
Biplab Debbarma
Thank you sir. Just two small clarification. One is the commercial development worldly. What how many towers and total area is it? 1.3 million square feet. And what would be the estimated cost for capex cost to be incurred for this project?
K T Jithendran
Yeah, I mean I think we are looking at least about one single tower. Roughly about 1.3 million. One to 1.3 million. Yeah. In the process of designing that cost is too early at this point to estimate. Viplea to come back to you on that depending the process design and then we, you know we do all the MEP and structures and all that. It’s very early stages at this point of time.
Biplab Debbarma
Entire 1.3 at 1. Yeah.
K T Jithendran
It’s one tower that we are looking at. It could. It’s in a range, it could be approximately about 1.3. It can vary a little bit here and there. Yeah.
Biplab Debbarma
And second question is on the, you know your launch pipeline in terms of GDB it appears broadly similar to what you had in FY26 in terms of launches GDB and in FY27 pipeline also includes Niara where the expected absorption may be relatively lower compared to say Aricatri, Maya or even Saranya. So considering these factors, I am assuming these factors are correct. Considering these factors it appears challenging to expect. I mean the Pre phase in FY27 could be similar in the similar 8000 crore or maybe slightly lower than Fi26 levels.
How do you see this assessment
K T Jithendran
I don’t want to comment on that because as I said it’s very difficult to give, you know in other words you’re asking for guidance which I can’t at this point of time give you. I only know that we have so much of inventory here and we have to do the best utilization of that.
Biplab Debbarma
Okay, thank you sir.
Operator
Thank you ladies and gentlemen we will take that as the last question for today. I would now hand the conference over to the management for closing comments. Thank you and over to you
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 more lot of news in the next call. Thank you very much for an interest in our company. Thank you. See you soon.
Operator
Thank you members of the management on behalf of HDFC securities. That concludes this conference we thank you for joining us and you may now disconnect your lines. Thank you.