Arihant Superstructures Limited (NSE: ARIHANTSUP) Q4 2025 Earnings Call dated May. 27, 2025
Corporate Participants:
Kunjal Agarwal — Equity Research Associate
Parth Chhajer — Director
Analysts:
Suyash Bhave — Analyst
Unidentified Participant
Kriya Agarwal — Indvidual Investor
Siddhant Kanodia — Analyst
Harsh — Individual Investor
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4 and FY ’25 Earnings Conference Call of Arihant Superstructures Limited, hosted by Arihant Capital Markets 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 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 Ms Kunjal Agarwal from Arihant Capital. Thank you, and over to you.
Kunjal Agarwal — Equity Research Associate
Hello and good afternoon to everyone. On behalf of Arihant Capital Markets Limited, I thank you all for joining the Q4 FY ’25 earnings conference call of Superstructure Limited. Today from the management, we have Mr Ashok — Mr Ashok, Chairman and Managing Director; Mr Chaje, the Whole-Time Director; and Mr, CFO. So without any further delay, I would hand over the call to the management for their opening remarks. Over to you, sir. Thank you.Thank you. Good afternoon, everyone, and thank you for taking time to join Suprastructure Limited conference call to discuss Q4 FY ’25 results and business updates. I believe you would have gone through the financials and the presentation which is being filed on the exchanges. So let me first start with briefing you on the financial highlights for the quarter under review.
The consolidated operating revenue for Q4 FY ’25 was INR153 crores against INR161 crores in Q4 FY ’24, which is a Y-o-Y decrease of around 5%. The total EBITDA for Q4 FY ’25 stands at INR22 crores against INR35 crores in Q4 FY ’24, which is a decrease of 37% on Y-o-Y basis.
The EBITDA margin for Q4 FY ’25 stands at 14.55%. The profit-after-tax for Q4 FY ’25 stood at INR11 crores. Whereas the full financial year 2025, the operating revenue stood at INR499 crores. The total EBITDA stood at INR104 crores and the EBITDA margin reported at 20.91%. The profit-after-tax was totaling INR255 crores.
Now talking about the key operating highlights for this quarter. The company achieved sales bookings of 272 units, which is
Parth Chhajer — Director
Equivalent to 2.49 lakh square feet of area, amounting to INR186 crores in value. The average price per square-foot was around INR7,462 rupees per square-foot during the quarter, which has grown by 20% on a year-on-year basis. The average price per unit sold stood at INR68 lakhs for the quarter and the total corrections for the quarter stood at INR139 crores.
For the financial year, the company achieved total sales bookings of 1,568 units, equivalent to 14.61 lakh square feet of area which was totaling to a value of INR889 crores. The price per square-foot during the year stood at INR6,084 per square-foot and the average price per unit was around INR56.7 lakh.
The total collections for the year stood at INR545 crores, which is a 8% year-on-year increase. On the important matrix in the real-estate, one of the important metrics in the real-estate business is a customer collections, which continues to remain very healthy for ASL.
On the delivery front, in Q4, we achieved occupancy certificate for Arient Phase-3 and we are looking-forward to many more completions, which will add-on to the company’s legacy in the coming financial year as well.
So with almost 307 acres plus of land-bank in-hand and upcoming launches, we are well-positioned to gain the market-share and obviously increase on the high opportunity corridors, which the Navi Mumbai MMR region has to offer.
We remain confident and committed to addressing the evolving aspirations of homebuyers across the entire spectrum. With this now, I would like to open the floor for question-and-answers. Thank you.
Questions and Answers:
Operator
We will now begin the question-and-answer session. Anyone who wishes to ask a question may press on their touchstone telephone. If you wish to remove yourself from the question queue, you may press R&2. Participants are requested to use handsets while asking a question.
Ladies and gentlemen, we’ll wait for a moment while the question queue assembles ladies and gentlemen, in order to ask a question, you may press star and one. I repeat to ask a question, you may press the first question is from the line of Suyash Bhavi from Wealth Guardian. Please go-ahead.
Suyash Bhave
So I have a question whole villa, which means we have sold one villa in Q4, up from 40 to 41 units. Any insight as to what kind of — is there any slowdown as such and what kind of targets do we have for maybe on a quarterly basis sales and how do we view this?
Parth Chhajer
Yeah. Yeah, we agree. The quarter-four was not-so-good when it came to World Villa sales. Obviously, there were external factors which led to postponing of decisions from the clients. One of them was obviously the equity markets having a lot of plunge in the indexes — indices, sorry, which led to decisions being postponed.
But Q1 onwards, you started gaining momentum and Q2, we’ll really be able to cover-up a lot because majorly this is — I mean, today we see a great weather with respect to world villa sales and clients who are going are very much attracted to the greenery and the environmental development over there. So we’ll be able to cover it up in the next two quarters, Q1 and Q2.
Suyash Bhave
All right. So and in terms of competition, specifically for world villas, not our overall project as such, do we have — are there any other competing projects of a similar-size or quality or scale as world villas in that area, if any insights on that?
Parth Chhajer
Yeah. So at our products level, there is no direct competition. Everybody whoever is making villas also — their villas are below par to what we are making and to what our designs are.
Ours is a very unique concept where we are having almost 390 villas spread across 63 acres and along with that, there is a Jim Khana of 2 lakh square feet spread on 10.5 acres of land and adjoying to it is also a five hotel of 225 rooms.
So our configuration is quite unique, which is helping us to distinguish ourselves also from the others and we are very much confident work has progressed for the Jim Khana, wherein we are able to come out-of-the plant-level also by today. So things are progressing very well and we are also working on the infrastructure development on the — for the project.
Suyash Bhave
All right. And what I see from Q4 is that I think this is the first time we have crossed average price per square feet, our ticket size of INR1,000 a mark as in this year we are at INR462 per square feet.
Is it because there was some higher contribution from premium or has there been an overall uptick in prices across all segments as can you build a share at your affordable indium,, and what is driving this higher price?
Parth Chhajer
Yeah. So we saw great sales happening — or sorry, better sales happening at Abhika. We sold around 23 units, which is around INR53 crores in value. So that led to the price per square-foot going above INR7,000, which is for the first time it has happened for — in the company’s history. So like going-forward, more contribution will come from premium.
So our average pricing, which is at a year-on-year basis around INR6,000 will shoot up to INR6,500, INR6,700 in the coming quarters. Okay. So on an annual basis, that will be the new range that we can look at. I think INR6,500 or so. Correct.
Suyash Bhave
Okay. And regarding guidance, I think we have long been given a 20% we are across-the-board for whether it’s pre-sales revenue, EBITDA or PAT.
Parth Chhajer
That so are we sticking to that for the coming year as in — are we seeing considering that okay, as-is for this year, we were not able to, but I’m assuming if you can give some insights into what factors are causing this slowdown and are we will stick to the — in FY ’26 as well.
We’ll stick to the guidance of 20% 25% growth this year why we couldn’t achieve it is because a few of our projects are stuck in the environmental clearances, which is having a stay from the Supreme Court of India since one year, which impacted the start of construction for all the projects.
To name a few, Danaika, World, Avanti. So these projects are still awaiting the clearance. So due to that, no revenues could be booked or no revenues could be triggered. Apart from the environmental clearance, we also have put in a lot of investments in-land over the last two years to the tune of around INR300 crores.
So wherein this was all investments without any fundraising. All the money that came in for — which is the INR300 crores is — has come through internal accruals and debt. So to service the debt also, the interest costs have been booked in the P&L, which resulted in a decline in the total PBT.
Apart from that, we also have hired good professionals from for the sales and the engineering departments, which has increased our employee cost as well.
So due to these factors, we were unable to achieve the PAT growth that we had envisaged in the beginning of the year, but we are confident that we’ll be able to cover it up in the coming financial years because the new sales and new projects that have been acquired are having good margins, healthy margins and we’ll be able to make-up for that. All right., just
Suyash Bhave
Ok and one last question. For FY ’26, which would be the key projects that you will see dying sales with respect to pre-sales, key projects will continue to be yeah
Parth Chhajer
So with respect to pre-sales, Arian Advika at Washi, world villas at Chalk, Ariant Alishan and, Ariant and Arient Avant TDs will contribute at large with respect to pre-sales in terms of value. And in the P&L, we should see contributions coming from, Ariant Espire, Ariant Advica.
So these three projects will contribute at large apart from the other ongoing projects in which many of them are nearing completion for the coming financial year, which is the affordable housing category basically. Okay. Okay. So affordable will probably be the key driver for FY ’26.
Suyash Bhave
All right. Thank you. Thanks a lot for answering my questions. Thank you.
Operator
Participants who wish to ask a question may press R1. I repeat to ask a question, you may press RN1. The next question is from the line of Umish Shah from. Please go-ahead.
Unidentified Participant
Thank you for the opportunity. Actually, the previous participant has answered most of the questions, but I just have one question for this quarter, our margins have declined — I expect — I know that the revenue has been declined, but margins have shrunk considerably. Any reason for that year-on-year.
Parth Chhajer
So the margins coming down, the main reason for that is the interest cost increasing and also the employee cost increasing. So that has led to the decrease in the margins. So whatever new projects we acquired in the last two years, we’ve already set the teams for that for execution and implementation for those projects.
So that cost is already incurred in the last year, which will give us fruits in the coming years. And the amount of funds that has come in, the servicing of interest is also to be done. So that led to the decrease in the margin.
Suyash Bhave
Okay. And what will be — you said that the 7,000 per square feet will be around the range that we look-forward for FY ’26, ’27, right?
Parth Chhajer
Yeah. So it will be around 6,500, 6,700 on average. So last — on a year-on-year basis. So this year, we did 6084 per square feet. So expect it to go to around 6,500 on a total financial year basis.
Suyash Bhave
Okay. Thank you so much.
Operator
Before we take the next question, we would like to remind participants that you may press R1 to ask a question. The next question is from the line of Kriya Agarwal from — who is an Individual Investor. Please go-ahead.
Kriya Agarwal
Okay, hello, thanks for the opportunity. Can you break-down the price trend across key micro markets like, Taloja and and how you expect blended realization to evolve in FY ’26?
Parth Chhajer
Okay. So I’ll just break-up the prices that we are selling at on average today. So, we have Aspire, which is our project. We are selling at around INR7,100 per square-foot on sellable area, which is translating to around INR11,500 on carpet area. So that’s the price we are able to achieve on an average basis today.
For Taloja, we have prices across projects ranging from INR4,800 to INR5,200. So average is around INR5,000 in Taloja on saleable basis, which means 8,250 on carpet. And Kargar, we are able to achieve prices of around INR8,600 today on saleable, which is translating to around INR14,000 on carpet. So these are the prices ongoing for our projects today.
The price trend could be on a blended basis for the next year, we expect at least 5% to 7% increase in the prices for these locations because these are the hot destinations today.
These destinations command the largest supply and also have the highest sales and very close to the airport, the infrastructure that is to be done, the C2 and the metros and all are already operational and the airport opening in the next two, three months will have a significant impact in the sales. So we see good price lifts also happening in this three micro markets.
Kriya Agarwal
So we will be marketing for large? Will there be funding?
Parth Chhajer
We’ll be continuing the marketing spends for the way it has happened last year. So we are able to take-up price hikes over there and we’ll continue to do the strong marketing and have the presence that is required. So visibility is very important for this kind of a project and we’ll continue to do that.
So any guidance for current planned project pipeline for FY ’23. And so the capex plan, so we want to keep it restricted say and be very conservative about it. We expect to grow at 20% 25%, 25% but there should be surprise. And with respect to capex debt for construction, our target is to do construction of around 650 crores for the financial year.
Kriya Agarwal
Okay, sir. Thank you so much.
Operator
Thank you. Ladies and gentlemen, in order to ask a question, you may press R1. I repeat to ask a question. You may press R RN1 now. The next question is from the line of Siddhant Mahesha from Tusk Investments. Please go-ahead.
Siddhant Kanodia
Hi. Could you throw some light on the launches, any new launches that are planned for FY ’25?
Parth Chhajer
So we have phase — new phase launches for FY ’26 for the existing projects. So one of them is at Avanti and, where we’ll be opening the third tower. There’s also more launches lined-up in Ayand, which is also one of our largest projects.
So we expect approvals for that by August and in Q3, we can plan Q2 or Q3 end, we can plan up a launch. Apart from that, Arian at that lined-up for the last two towers, Arian Anmol at Ballapur also, there are two more buildings to be completed over there. So we expect to launch these future phases of these projects in this coming year.
Siddhant Kanodia
Got it. Thanks. And just one last question from my end. For the world allows, we had mentioned there we are currently ongoing some environmental clearance issues, right? So what’s kind of the timeline on that and how does that impact our on revenue recognition.
Parth Chhajer
So we expect it to be cleared by, say, Q2 or maybe October basically Q3, which is Q3. So once that is done, recognition can start in one or max two quarters. So we expected that recognition should happen from Q4 of FY ’26. So fingers crossed.
Siddhant Kanodia
Got it. Thanks a lot thank you.
Operator
Thank you. Participants who wish to ask a question may press R&1. The next question is from the line of Harsh, an Individual Investor. Please go-ahead.
Harsh
Hi So I wanted to ask. So as you mentioned that last year we acquired a lot of land, so and that was funded through internal accruals and debt and which has resulted in our debt rising.
So what is — what is the debt-to-equity ratio that the company is comfortable with and in future if for any expansion, would you consider fundraising or would you You be more comfortable with raising more debt?
Parth Chhajer
So as of now, we are at around INR685 crore of net-debt and we’ll be comfortable with the debt going to around INR750 800. So out of this, 685 300 is unsecured loans, which is payable than eligible. So balance net-debt, which is secured debt is only INR385. So we’ll be comfortable to sustain the secured debt to around INR500 crores. So that is comfortably manageable.
Also the debt coming forward is going to be utilized for majorly the annuity assets that we are creating, which is the Jinkhana and the hotel. So that is where the new debt will be utilized going-forward. With respect to more acquisitions, so we have not lined-up many more acquisitions in this coming financial year.
We feel we have enough land now to execute and implement the projects, which can give out good positive cash flows to the company over the next two to three years. So limited investment will happen towards land acquisitions in FY ’26 at least.
Harsh
Right. Okay, sir. Got it. And another question was with respect to the environmental clearance that you mentioned?
Parth Chhajer
So what I wanted to understand is until we get any environmental clearance on the project. So the construction activity is also halted for the period of time or we can go-ahead with the construction and just the revenue recognition delays. So the construction is halted till we get the clearance. All the sale is happening.
Harsh
Okay, sir. Thank you.
Operator
Ladies and gentlemen, in order to ask a question, you may press. I repeat to ask a question, you may press RN1. The next follow-up question is from the line of Kriya Agarwal, an Individual Investor. Please go-ahead.
Kriya Agarwal
So what is the planning for Town village? We are in the design stage at the moment for Town Village and it should take another one year for it to start. So it’s all FY ’27 onwards. Okay, okay. That’s it from my side. Thank you, sir.
Operator
Thank you. Before we take the next question, we would like to remind participants that you may press TR one to ask a question. The next question is from the line of Suyash Bhavi from Wealth Guardian. Please go-ahead.
Suyash Bhave
Yeah. So regarding this Supreme court clear environment clearance. So is it like a blanket ban as in no more clearances are to be granted, or have they made the process more stringent clearance or timeline increases, I think
Parth Chhajer
So there is a stay on certain locations, entire MMR is affected because any property which is in a 5 kilometer radius, how many zone, a Mangru park or a forest or a wetland area or a flamingo area or any other ecosensitive zone. So 5 kilometer radius is all having a stay as on today, which we expect that it should be overturned over the next two, three months.
So it’s just a matter of time now because as a body has been representing also the entire fraternity and they are very much confident that they’ll have this in the favor of all the developers going-forward. But yeah, many new projects in MMR are stuck wherever the built-up area is more than 20,000 square meters.
So maybe on an average across our portfolio, our total GDV of INR12,500 odd crores, approximately how much would be affected by this is currently affected by this 2,600. Thank you.
Operator
Participants who wish to ask question may press R&1. I repeat to ask a question you may press R ladies and gentlemen, okay. The next question is from the line of Anuk Kul from. Please go-ahead. Y
Unidentified Participant
Hi. I wanted to know what will be the sustainable EBITDA margins going-forward?
Parth Chhajer
Yeah, we should be able to sustain at around 24% 25% and in the coming quarters once the new projects start contributing, which we have acquired over the last two years, they will have higher EBITDA margins. So then we expect it to grow to around, 26 27 once those projects also start contributing to the revenue.
25% is for Q1 is what you’re. No, I’m not saying Q1. We expect the whole financial year to be that way. So we cannot comment on every quarter because real-estate is not a quarterly business.
Unidentified Participant
Understood. Understood, sir. That’s it from. Thank you.
Operator
Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to Ms Kanjal Agrawal for closing comments. Thank you.
Kunjal Agarwal
Thank you to the management and participants for joining the Q4 FY ’25 conference call of Arian Suprastructure Limited. I will now hand over the call to the management for his closing remarks. Thank you.
Thank you everyone for joining the earnings call. I hope you were able to get all the answers to our — to your satisfaction. If you have any further questions or would like to know more about the company, feel free-to reach-out to our Investor Relations team at Advisor and you can also contact our finance department and our CFO, and they’ll be happy to take it forward.
And we also thank Capital for hosting the call as well. Thank you.
Operator
Thank you. On behalf of Arihant Capital Markets Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines