Arihant Superstructures Limited (NSE: ARIHANTSUP) Q3 2025 Earnings Call dated Feb. 04, 2025
Corporate Participants:
Parth Chhajer — Whole-Time Director
Analysts:
Kunjal Agarwal — Analyst
Suyash Bhave — Analyst
Aneesha Parati — Analyst
Parikshit Kandpal — Analyst
Anirudh — Analyst
Raj — Analyst
Rishikesh Oza — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Arihant Superstructures Limited Q3 FY ’25 Results Conference Call. 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 the conference call, please signal an operator by pressing star 10 on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Ms Gunjal Agarwal from Arihant Capital. Thank you, and over to you, ma’am.
Kunjal Agarwal — Analyst
Hello and good afternoon to everyone. On behalf of Arihant Capital Markets, I thank you all for joining into the Q3 FY ’25 earnings conference call of Arihant Superstructure. Today from the management, we have Mr Ashok, the Chairman and Managing Director; Mr Path, the Whole-Time Director; and Mr Dhirad Jupit, the CFO.
So without any further delay, I would hand over the call to Mr Path for the opening remarks. Over to you, sir.
Parth Chhajer — Whole-Time Director
Thank you Limited Conference call to discuss Q3 FY ’25 results and business updates. We have uploaded the presentation on the exchanges as well. I’ll just brief you all about the financial numbers for the quarter. In terms of consolidated financials, the total consolidated revenue stands at INR151 crores against INR119 crores in Q3 FY ’24, registering a year-on-year growth of 26%. The total EBITDA for Q3 FY ’24 stands at INR43 crores against INR26 crores in FY ’24, registering a growth of 66% or on a year-on-year basis. The EBITDA margin has been recorded at the highest for any particular quarter in the history of the company at 28% and the same was at 22% in the year prior. The profit before-tax stands at INR33.34 crores against INR18.79 crores in Q3 FY ’24, registering a growth of 77%. The profit-after-tax for Q3 FY ’24 stands at INR25.4 crores against INR15.6 crores in Q3 FY ’24, registering a year-on-year growth of 63%.
Now talking about the key operating highlights for the quarter, the company has achieved sales booking of 551 units, which is equivalent to 4.74 lakh square feet, amounting to INR265.5 crores in terms of value. The average price achieved for the quarter was INR5,594 rupees per square-foot. The average price per unit sold is close to INR48 lakh rupees. The total collection for the quarter stands at INR129.1 crores. With respect to the revenue mix of the sales done, 6% is from premium housing, 63% is from mid-income housing and 31% is from affordable housing. We would also like to highlight that we have been able to bring down our ready possession inventory from INR55 crores in April 2024 to INR17 crores in December 2024.
On the business development front, we have acquired 23 acres of additional land at Chalk for our second horizontal project, which will be named as Town Villas, which shall have a total GDV potential of INR2,500 crores. With this acquisition and also the 11 acre addition to the World Villas land, we have been able to increase our land-bank from 220 acres in April 2024 to 307 acres in December 2024. So we have been — we have achieved our guidance of crossing 300 plus acres of land in FY ’25.
Now talking on the company and market scenario. As we know, the union budget was announced three days ago, which provides a to the real-estate sector by exempting the second self-occupied property from annual value, thus simplifying tax-compliance and offering great financial flexibility. This amendment will make the second — will make the buying of the second-home property more attractive while benefiting our projects world villas in-town Villas. So as we all know, the Namu Mumbai airport is slated to be inaugurated in the next three to four months and the traffic is expected to increase exponentially with flights or to the tune of 150 plus flights being taking off on a daily basis from the new airport.
The areas in the — on the periphery of the effort will progressively become the most sought-after location for commercial as well as residential use, which can be witnessed by the job creation of from the largest business houses of the country, namely Reliance Industries in Ghadani venturing into industrial parks and service sector growth businesses. The company’s strategies have worked out well, especially the last few years as we acquired new projects and lands to the tune of 175 acres in the peripheral areas of the new airport and the Atul Sethu. The timely investment in these projects and lands have given the company the benefit of low investment cost.
The brand positioning of the world village project has increased our mark. Our share in premium offerings in Mumbai MMR. The Jimkhana and 5-star Hotel will provide annuity income revenues in the forthcoming years, which will be in-line with the changing trends focusing on leisure, sports as well as hospitality sector. Our share in the premium projects too have been increasing steadily. Our current GDV stands at INR12,500 crores. To highlight, land prices have significantly increased in the Navi Mumbai airport region across all geographies with the huge infrastructure projects that have been taken under execution and are achieving the completion stage. And I think we believe we have an edge with our recent acquisitions, which will drive us good fruits in the coming quarters.
If you see our presentation, Page nine, it will give you a geographical showcase of our portfolio. So 75% of the portfolio today is in Navi, Mumbai area, wherein around 57% is in the airport — Airport influential area. So I think that looks good going-forward. We have commenced deliveries also this Q3 FY ’25 for our projects at Kargar, and also Arient ROE at and further deliveries are also lined-up at Badlapur, Karjat and, the second tower in the quarter-four. With collections remaining robust, we are geared up for faster execution of multiple projects.
With this, I will now open the floor for questions-and-answers. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star N1 on their touchstone phone. If you wish to remove yourself from the question queue, you may press star. Participants are requested to use handsets while asking your question. Ladies and gentlemen we will wait for a moment while the question queue assembles. Again if you wish to register for a question please press and our first question comes from the line of Suyash Pave from Wealth Guardian. Please go-ahead.
Suyash Bhave
Yeah. Hello, am I audible?
Operator
Yes, sir. Please go-ahead.
Suyash Bhave
Yeah, yeah. Sir, my first question is on the world village. What is the status update on world village that seems from the presentation that there have been no new bookings in this quarter.
Parth Chhajer
Yeah, world village, we started the launch in August. Yeah, this quarter has been maybe we sold five units in this quarter because the launch phase had taken good absorption in the first two months. And now with the work progressing, the Q4 has started-off well as well for the project.
Suyash Bhave
Okay, sir, any target as such that we have for FY ’25 for World Willers?
Parth Chhajer
I think we should be able to do another, say sales of 25 to 35 units till the year end?
Suyash Bhave
Okay. Okay, sir. And on the our growth guidance of 20% to 25% for FY ’25, are we still on-track for that?
Parth Chhajer
Yes, I think we should be able to achieve around 25% — 20% 25% growth guidance as we had mentioned out in the first-quarter.
Suyash Bhave
Okay. Sir, one more question. For the — the average per square feet realizations that we are getting, they seem to be trending down in FY ’24 almost in every quarter, we were at INR6,000 plus per square feet, but they seem to be trending down in this FY. Any insight on that considering that since with all the infra projects kicking-in, the prices should have shot up?
Parth Chhajer
This quarter is a downtrend in Q3 in terms of per square-foot realization because we have sold a good amount of inventory in our Jodpur projects in this quarter. So that’s why the realization has come down at an overall company-level. But in terms of per square feet pricing, we have been able to increase it across the entire MMR region, which will obviously be reflected in the P&Ls also going ahead. So it’s always a mix of what sells when in the quarter, which derives the average realization. But I think Q4 will go back say upwards of INR6,000.
Suyash Bhave
Okay. Okay. Glad to know that. Sir, on the debt part, I have a couple of questions on our debt side. So of the unsecured debt of INR280 crores that we have, of course, some is from the promoters, but I’m guessing some others from non-promoters as well as in who are these lenders and what kind of cost of debt are we incurring on that? Any insight?
Parth Chhajer
And all majority of the funds are from promoters of ASL and then promoters of ASL and the subsidiaries. So in the subsidiaries we are Agarwal family who have put in their stake. So it’s a mix of Charger and Agarwal families who are — who have put in all the monies. And the average rates are at 13% per annum which are the which are accrued on a yearly basis. So there is no monthly servicing on the debt.
Suyash Bhave
Okay, okay, understood, understood. All promoters putting in their own money there. And sir, on the secured debt part of it, since we have a whole host of quality lenders, HDFC, Bajaj, Tata, so on and so forth, just maybe there is a gap in my understanding, but any explanation on why there is no credit rating report of our company’s secured loan facilities?
Parth Chhajer
And also latest exercise we have done, have we have been able to achieve a BBB-minus a credit rating, which is a stable outlook. But yes, we are working on that and we should be improving that going-forward in the coming quarters.
Suyash Bhave
So this credit rating is by which institute or rating Institute?
Parth Chhajer
This was by equity and India it is these two institutes had.
Suyash Bhave
Okay, okay, understood. So one last question I have. In the Q3, we had made an exchange filing about some INR25 crore equity infusion in our hotel subsidiary,. But in the result block, its net-worth is shown as INR1 lakh rupees as in — has that infusion not taken place or was it just an resolution? Any insight on that?
Parth Chhajer
So that INR25 crores is an infusion of preference share capital, which would be converted, say, after 13 or 14 years. So at that time, we can decide whether we want to convert the preference share into a equity. As on Q3, we have not done any transaction. In Q4, company will be taking up a tranche of INR25 crores, so say INR5 crores would be converted into equity in the Q4 in this quarter.
Suyash Bhave
Okay. Okay, understood. So it must-have been classified in the form of debt and their books and hence not shown in net-worth. Okay, understood. Thank you. Thanks. Thanks a lot.
Operator
Thank you. A reminder to all the participants, if you wish to register for a question, please press R&1 on your touchstone phone. Our next question comes from the line of Anish Shah, an individual Investor. Please go-ahead.
Aneesha Parati
Yeah, hello. Thanks for the opportunity. And congratulations for the good sets of numbers. Sir, I have couple of questions. What percentage of sales in Q3 FY ’25 came from premium was the net income and affordable housing?
Parth Chhajer
So in terms of revenue, 6% was from premium. Affordable was 31% and mid-income housing was 63% in terms of revenue on the total sales.
Aneesha Parati
Yeah, okay, sir. And sir, what are your capex plan for FY ’25, particularly for a luxury project like Arihant, the five-star hotel and Club 10.
Parth Chhajer
So village, we have started work, club 10 also, we have started the works and for the hotel, we have started excavation work. So works have started, but since we are at ground stage, the expenses are less. I think we will be doing the total expenditure of around INR25 crore INR30 crores for this — for these three projects in FY ’25. But FY ’26 onwards, it will gear up and we have the credit facilities also available from SBI. So we’ll be looking at very good opex in the FY ’26 and ’27.
Aneesha Parati
Okay, so the timeline is 27.
Parth Chhajer
Yeah, I think these are very — these are horizontal developments. So it takes two years for the development. Timeline for is two years. So at December ’26, we should be starting with the first deliveries. And for FY ’27, we should be able to complete the also in calendar year ’27, sorry and hotel will be taking more time that will get ready, say, by March ’28.
Aneesha Parati
Okay, okay, sir. Sir, I have one more question, like what impact the infrastructure projects like Airport and metro expenson have on your project demand and have you have any project demand and pricing for that?
Parth Chhajer
Yes. So there are multiple infra projects which have already reached the advanced-stage. MTHL, the is ready, airport is also going to start operations in three to four months. Multiple road corridors, flyovers, coastal roads, bridges are being created to connect people from across the city to the airport and the surroundings of it. So those good intra projects are going to lead to good demand for residential and commercial housing. But majority big developments with where job creations are coming, that is going to be from the Reliance industries, industrial Park, which is on say 5,000 acres, which was all over the news in January. Then obviously data centers being brought in by MITC as well as Adani Group are going to yield a lot of jobs, Corporate park, which is on the similar lines of BKC2, that will also yield another 2 lakh jobs in the coming decade.
We see job creation of multiple categories across blue-collared, white collared to the tune of 10 lakh jobs over the next seven to 10 years, which will indirectly mean an increase in population of 40 lakhs. So current population is also around 40 lakhs existing and that is going to double in the next 10 years. And when the population is doubling in 10 years, the demand for residential housing is going to increase significantly. So I think we are in a good position. We have the sizable inventories. We have the correct locations, the land-bank is in-place, our projects are there and our brand positioning is the tallest in this region, which will also help us achieve good numbers over the next five to seven years.
Aneesha Parati
So, sir, what is your expected price hike because of this development.
Parth Chhajer
It will vary from location to location, but on an average minimum price rise we can expect is 500 rupees per square-foot on saleable area.
Aneesha Parati
Okay, okay, sir, thank you so much. Thank you.
Operator
Thank you. The next question comes from Parikshit from HDFC Securities. Please go-ahead.
Parikshit Kandpal
Hi,. Congratulations on a great quarter., my first question is on-again on the airport. So what portion of your current GDV of 12,500 would be in the airport area?
Parth Chhajer
The and airport area is 57%, so almost, if you can say INR7,000 crores is in the airport area. And then Taluja, which is 7, 10 kilometers from the airport happens to be another 800 crores in the GDV and Vashi is unsold around INR575 crore. So right now, crores.
Parikshit Kandpal
Okay. Sorry, how much?
Parth Chhajer
Around INR7,50 crore to INR8,000 crores.
Parikshit Kandpal
Okay, okay. So once this airport comes in, now your current realization would be in ballpark how much right now in that airport area? For you.
Parth Chhajer
So Arian, we are now achieving around INR7,000 per square-foot on saleable area. And I think we can expect a INR500 jump over the next one year is
Parikshit Kandpal
About almost 6%, 7% kind of jump, so which increases your GDV now almost INR500 crores INR600 crores, 6%, 7%, so about INR500 crores GDV will increase because of pricing.
Parth Chhajer
Yeah, I think that minimum that should happen, it could go higher, but we expect
Parikshit Kandpal
This all like — so this is basically if I have to see on the cash-flow point-of-view, this GDV of INR7,000, 8,000 will give you approximately how much 16% cash flows, like
Parth Chhajer
Free-cash flows, we should be able to do 20%.
Parikshit Kandpal
So 20% means 20% of INR8,1600 crores. So the INR500 crores get added to almost 30% increase in your free-cash flows because of this price hike of — okay. That’s a big variable. I mean, and if that is you’re talking minimum and in that area, we have seen an airport area as the prices can be significantly higher also in-quarter. Okay. Yeah. And just on the new land business developments, how are you looking at it now given that you have already substantial GDV with you? So first of all, how much time do you think you’ll be able to launch this entire GDV? And then beyond that over the next couple of years, how do you think this development will pan-out for us?
Parth Chhajer
So the entire GDV we expect to launch and sell-in the next four to six years and completed in five to seven years from now. So that’s the timeline. And business development, we’ve added decent amount — good amount of land already in this financial year. Maybe some more parcels are being evaluated and if the opportunities are good, we will grab them as well. But yeah, we have decent amount of inventory now with respect to our company size and I think we can build-on it from this going-forward.
Parikshit Kandpal
Okay. And just lastly on — so what is the guidance of resales for FY ’25 and ’26 now?
Parth Chhajer
And FY ’25, we should do around INR1,200 crore in terms of pre-sales. FY ’26 will be around INR1,50 crores to INR1,600 crore of PC. Okay okay, Banj, thank you and wish you the best also my questions. Thank you.
Parikshit Kandpal
Thank you.
Operator
Thank you. The next question comes from the line of Anirud from Wheel Capital. Please go-ahead.
Anirudh
Hello. Hello. Am I audible?
Operator
Sir, your voice is echoing a little bit if you’re using the speaker phone, maybe you request to use the handset, please?
Anirudh
Okay no. Yeah, is it better now?
Operator
Yes, sir, much better. Please go-ahead.
Anirudh
Yeah. Sir, just wanted to understand with multiple projects in the pipeline, how do we plan to manage the debt profile in this year
Parth Chhajer
This financial year, debt will increase slightly from the existing. We are not looking at any decrease in debt. Debt because majority of the debt is now secured. So there are obviously moratoriums offered by the banks for two years, three years and then the repayment starts. So debt repayment for our company will majorly begin in FY ’27?
Anirudh
Okay. Okay. Understood, sir. Sir, and also one on the broader perspective, wanted to just understand. So how has the sentiment in the real-estate industry evolved recently and particularly in the affordable and mid-income housing segments.
Parth Chhajer
Yeah. The sentiments are very good. I mean, we launched a project at Shiel Fata in this quarter, have done very good amount of sales also. Somewhere close to 250 units have been sold already in the project. We’ve got a very good response in terms of pricing. I have been able to achieve a 20% higher price than majority of the neighboring developers, which include multiple Grade A companies also, some companies much bigger in size than us as well. And still because of our uniqueness in products and the location and the right design, we have been able to achieve very good velocity along with higher pricing and I think markets are looking good with even when we did talk of mid income and affordable housing, the demand is increasing.
And since the majority of the people are in this category with respect to income groups, the demand will always be there across this product-line of affordable and mid-income housing going-forward for the next one, one and a half decade. And I think we have really mastered this this our portfolio very well, we are able to deliver good profits, execute projects rightly at good efficiencies and obviously our land procurement has been a great strength in May, helping us make affordable housing and mid-income housing our forte. So it’s a matter of quick churn, which is essential to execute it rightly to achieve the correct numbers.
Anirudh
Okay, so understood. Sir, just one last question on — so our town villa project. So if you could throw some light on where will the project be situated and what is the launch — launching timelines? And if you could also explain what is the vision behind this project?
Parth Chhajer
As we don’t want to reveal a lot today, it is very — it is located before world village, four, 4.5 kilometer before our world villa side of the old highway. We don’t want to reveal our product today because we are still in the design phase. So the designs are being made and the drawing board scheme is not yet developed, but it will be something which will help us achieve very good velocity and we will be able to distinguish ourselves very largely with the other neighboring apartment developments and by offering a very unique proposition in a similar price range.
Anirudh
Understood, sir. Understood, sir. Thank you so much. I’ll get back-in the queue. Thank you.
Operator
Thank you. A reminder to all the participants, if you wish to register for a question, please press star and one on your touchstone phone. The next question comes from the line of Raj from Arjav Partners. Please go-ahead.
Raj
Am I audible?
Operator
Yes, sir. Please go-ahead.
Raj
Sir, out of INR12,000 crores of GDV, what would mean the completion timelines on it?
Parth Chhajer
We will take five to seven years. So in five years, we should complete around 75% to 80% of it. And then the balance in the two years after 5th year.
Raj
20% 25% in next two years’ time. All right. And sir, what would be the margins on this GDV
Parth Chhajer
I didn’t get you.
Raj
How much would be our embedded EBITDA and the PPD on this CDV?
Parth Chhajer
We should do an EBITDA of around 30% average, so around INR3,700 crores.
Raj
But how much cost will we incur to develop this CDV
Parth Chhajer
The total cost of the development will be around INR6,500 crore.
Raj
And it will be funded majorly via debt.
Parth Chhajer
So the funding will be through customers’ accruals, internal accruals from sales. Our debt is something which we will not be taking going ahead because already debt was taken to acquire these lands. So our model is very simple. We don’t put in lot of capital post-acquisition of the project and approvals are received. So after that, it’s the sales which drives the operating cash flows and the working capital for the company.
Raj
Understood. And as you had commented earlier, if there is a 500 per square feet increase, then what would be our revised GDV
Parth Chhajer
Our portfolio is around 1. Sorry, 18 million square feet today. 500 rupees means around 100 crores, INR90 crores, 100 crores,
Raj
900 crores I think
Parth Chhajer
Sorry, yeah, INR900 crores, yeah, or 18 million, correct
Raj
900 crores. And sir, after like five to seven months of completion, sorry, five to seven years of the entire completion, what could be our free-cash flow from this entire thing?
Parth Chhajer
We should be able to generate a free-cash flow of around INR3,000 crores from the total. From the total portfolio.
Raj
A total portfolio of INR12,000 crores, yeah. All right. Thank you. All the best.
Operator
Thank you. Participants, if you wish to register for a question, you may press star and one on your touchstone phone. Our next question comes from Kunjal Agarwal. Please go-ahead.
Kunjal Agarwal
Hello. Is my voice clear?
Operator
Yes, ma’am. Please go-ahead.
Kunjal Agarwal
Okay. So I had few questions. So how much of your ongoing and forthcoming projects are on the asset-light model?
Parth Chhajer
16% of our portfolio is the asset-light model, which we term as JV, JDA or redevelopment. So that is 16%.
Kunjal Agarwal
So, sir, any new land acquisition that we are planning, as you mentioned that the Nabi Mumbai area will be more prominent after the airport and the Atal. So any new land acquisition we can see?
Parth Chhajer
Yeah, already this financial year, we’ve acquired close to 87 acres of new land and some more parcels are being identified. So as there is more capital available, we can look at more opportunities?
Kunjal Agarwal
Okay. And sir, like given the increasing demand for the premium housing, how do you see that the affordable dynamic playing out in the — like in the coming months or are we going more towards the premium housing, anything like that?
Parth Chhajer
So the recent acquisitions are focusing on the premium housing development, which is basically Villa is always a premium developer and it’s never an affordable development, especially for Mumbai. But we see a great demand across all the segments. They’re not only for premium housing, we are doing all. We will continue to do all types of houses. And we are seeing good sales and demand in the INR30 lakh rupees of a one-bedroom all kitchen product also and we are seeing good demand for a INR2 crore of a two-bedroom all kitchen also. So demand is good across all segments.
Since MMR Navi Mumbai is the first choice for anybody who is migrating from any other state across the country, the affordability, the ease of living and the quality-of-life that is being offered at a very lucrative price, you can say for any resident. That’s where it creates a uniqueness for them to go-ahead and buy a good property. And I think that’s where the focus will be for us as a group to target all segments and in a distributed manner. So even if you see our ongoing portfolio today, 25% we categorize in the premium housing, 37% is in the mid-income housing, 38% is in the affordable housing. So we are doing almost equally every type of product and we’ll continue to do so going ahead also.
Kunjal Agarwal
Okay, sir. And like you know, the MMR market is very increasing like in competition point-of-view. So what is your strategy to differentiate yourself and maintain the market-share?
Parth Chhajer
Our strategies are to identify more location — the locations which will — obviously, which have not been fully developed yet and to enter those markets at the right time where we are able to acquire land at good cost. So that’s the strategy. And in terms of product identification — sorry, project identification, we always look at the connectivity for any End-User to reach to the site or the location while doing any kind of acquisitions. Going-forward, we are also focusing on more redevelopment projects in the coming quarters and I think we should be able to build-on that also.
Kunjal Agarwal
Understood, sure. So do you see that any competition like competition from the large developers impacting your price or the sales volumes?
Parth Chhajer
No, I think competition is good. It does not impact anyone’s price or volumes. I think it only increases the size of the market. And I think if we are able to compete with the best of the players across the city, we are also one of them. So I don’t think we are shying — we will not shy away from the competition. I think we will try will instead create new trends with our uniqueness and achieve very different results like how we have done at Shiel Pata.
Kunjal Agarwal
Yes, sir. That’s it from my side, sir. Thank you so much.
Operator
Thank you. A reminder to all the participants you may press star and 1 to ask a question thank you. Our next question comes from the line of Anisha Parati, an Individual Investor. Please go-ahead.
Aneesha Parati
Sir. Yeah. Thanks for the follow-up, sir. So I have just one question like the company having to bring down this cost of debt from 13%.
Parth Chhajer
Earlier the cost was around 14, two years ago. And I think with the new signings with the new banks of HDFC and SBI, those debts are at around 10% to 10.5%. So we have been able to bring it down substantially. And I think we should be able to bring it down more by another 50 basis-points in the coming financial year. The debt is of different types and different uses. So the use of the debt is also — will also determine the cost of it?
Aneesha Parati
Okay. Okay, sir. Sir, the company has been guiding 25% pre-sales growth and 22% 33% EBITDA margin. Do you maintain this outlook for ’25? And can you also give like the 26%?
Parth Chhajer
Yeah. I mean, overall at a project-level, we target 30% 33% EBITDA margin and obviously, when it comes to revenue recognition, it’s a mix of multiple projects at one-time. So sometimes there are products which are at the price of INR15,000 square feet contributing and being mixed with a product which is of INR3,000 square feet. So margins are derived accordingly. But if you see product — sorry, project standalone margins, we are able to make around 30% EBITDA at a standalone project-level. And I think we should be able to improve on that. This quarter has been good on that front. We have been able to achieve a 28% EBITDA margin in this Q3 FY ’25 and we’ll obviously look-forward to maintaining and growing it next year.
Aneesha Parati
So sir, this 30% is for ’25 or 26
Parth Chhajer
That is at a project-level, 30% 33% is EBITDA that we look at a project-level.
Aneesha Parati
Okay, okay, sir. Thank you.
Operator
Thank you. Participants, you may press star and one to ask a question. The next question comes from Rishikesh from RoboCapital. Please go-ahead.
Rishikesh Oza
Hi, thank you for the opportunity. Sir, firstly would — the first question is with respect to the revenue and EBITDA on a reported basis. So what is our guidance for FY ’25? How would we be closing that? And going ahead FY ’26 and 7, what would be our revenues and EBITDA margins for on a reported level basically?
Parth Chhajer
So last financial year, our revenue was INR511 crore. I think we should be able to do 20% growth on that. And for FY ’26 also, we look to grow at a CAGR of 26%.
Rishikesh Oza
Okay, so which doing that Q4 would have to be around I believe 250 crores of deliveries, if I’m not all right
Parth Chhajer
Of revenue recognition if you see our page so page number 10. So you can identify that multiple projects are still not reaching the 10% project completion threshold. So once those are at 10%, then obviously the revenues will trigger in the P&L.
Rishikesh Oza
Okay. And on a reported basis, we expect EBITDA margins to be in the current rate, which in current quarter is around 28%
Parth Chhajer
I don’t know about that. I’ll have to work on that and we’ll get back to you. But yeah, last year we did around 23%, so we should be able to grow on that.
Rishikesh Oza
Okay. Okay. Also, our interest expense looks relatively lower compared to the debt. Is it because of the moratorium that you mentioned to the previous participant and most of it would be starting from FY ’27, the interest expense as well.
Parth Chhajer
No, so the projects which are not triggering in the revenue, the interest for those projects is also capitalized. That’s why it does not hit the P&L. But once they get expenses will also trigger with respect to the direct expenses and the interest expenses.
Rishikesh Oza
Okay, and then would that be?
Parth Chhajer
It depends whenever the project reaches 10% project completion status, that’s when the project hits the P&L, so the revenues and the expenses hit at that time.
Rishikesh Oza
Got it. Got it. Okay. Okay. Thank you very much.
Operator
Thank you. A reminder to all the participants, if you wish to register for a question, you may press star N1 on your touchstone phone. Participants, you may press RN1 to ask a question as there are no further questions, I now hand the conference over to Ms Kunjal Agarwal for closing comments.
Kunjal Agarwal
Thank you to the management and the participants for joining the Q3 FY ’25 conference call of Adhant Superstructure Limited. I would now hand over the call to the management for the closing remarks. Thank you.
Parth Chhajer
Okay. Thank you everyone for joining the earnings call and hope we were able to answer the questions to your satisfaction. If you have any further questions or would like to know more about the company, then feel free-to reach-out our Investor Relations Manager at Valorem Advisors and our finance team as well.
Operator
Thank you. On behalf of Arihant Capital Markets, that concludes this conference. Thank you all for joining us. You may now disconnect your lines.