Arvind SmartSpaces Limited (NSE: ARVSMART) Q3 2025 Earnings Call dated Jan. 30, 2025
Corporate Participants:
Smit Shah — Senior Account Manager, Adfactors
Kamal Singal — Managing Director and Chief Executive Officer
Analysts:
Dhananjay Mishra — Analyst
Amit Srivastava — Analyst
Shreyans Mehta — Analyst
Eesha Shah — Analyst
Ritwik Sheth — Analyst
Akshay Kothari — Analyst
Aditya Sen — Analyst
Amit Agicha — Analyst
Rahil Shah — Analyst
Amit Jain — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q3 FY ’25 Earnings Conference Call for Arvind Smartspaces 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 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 Smith Shah from Ad Factors. Thank you, and over to you, sir.
Smit Shah — Senior Account Manager, Adfactors
Thank you. Good afternoon, everyone, and thank you for joining us on the Q3 and nine M FY ’25 results conference call of Arvind Smart Spaces Limited. We have with us today on the call Mr Kamal Singhal, Managing Director and CEO; Mr Avinash Sures, Chief Operating Officer; Mr Mitanshu Shah, Chief Financial Officer; Mr Prakash Nakwana, Company Secretary; and Mr Vikram Rajpur, Head, Investor Relations.
Please note that a copy of the disclosure is available on the Investors section of the website of Arvind Smart Spaces Limited as well as on the stock exchanges. Please do note that certain things that said on this call that reflect the outlook towards the future, which could be construed as a forward-looking statement must be reviewed in conjunction with the risks that the company possesses.
With this, I would now like to hand over the call to Kamal Singhal for his opening remarks. Thank you, and over to you, sir.
Kamal Singal — Managing Director and Chief Executive Officer
Thank you and a very good afternoon to everybody present in this call. Thank you for joining us today to discuss operating and financial performance of Smart Spaces for the 3rd-quarter and nine months ending December of 2024.
Let me first brief — briefly share with you my thoughts on the sector. Housing Space sustained a very strong run-in calendar year ’24, the fourth consecutive year of buoyant demand where affordable segment took a backseat while mid-income and luxury demand charged. The performance follows the K-shaped recovery in economy with the upper-income segment of society doing really well, while those at the affordable end-of-the socioeconomic metrics witnessed gradual growth. Supply continues to be fully matched by the demand and result — it has resulted into inventory levels, which are near 14 years low.
Looking ahead, as mortgage rates have been stable since March ’23, any potential rate cut by RBI would drive demand higher, especially in mid-income segment. India’s real-estate industry reflects the broader optimism surrounding the country’s economic future. We believe the sector is in midst of a long-term upcycle with structural drivers outweighing short-term fluctuations. Branded developers with a strong capital book, bringing the right product to the right micro markets will stand to benefit the most.
Coming to the operational update for the quarter, booking for the quarter Q3 FY ’25 stood at INR224 crores compared to INR280 crores in the same-period last year. This was largely due to lendering approval cycles in Bengaluru, our real-estate market, which impacted one of our launches in. This launch is now pushed to Q4 of this year. Collections grew strongly by 18% year-on-year, reaching INR229 crores versus INR194 crores the same quarter last year. Our nine months performance has been best-ever in terms of booking and collections.
During nine months, our booking value grew by 14% year-on-year basis to INR890 crores and the collections for nine months FY ’25 stood at INR725 crores, which registered a growth of around 10% on a year-on-year basis. Our continued focus on execution, execution and customer deliveries remain a key priority and the healthy collection reflect the trust and confidence our customers face in us. Our business development pipeline remains very robust and year-to-date, we have secured projects with a cumulative top-line potential of approximately INR30 crore INR3,850 crores.
Recently, we have announced a significant milestone in our growth journey as we marked our entry into MMR region with a INR1,500 crore horizontal project multi-asset township. We are confident of the large opportunity the MMR plotted Villa — Protted and Villa market presents and we look-forward to bring our horizontal value proposition there. This project shall mark a significant step-in delivering premium thoughtfully designed experiences to one of the most vibrant markets in India. It will play a role in ASL’s MMR journey as well as the region’s horizontal development landscape.
Additionally, we have further strengthened our presence in the horizontal development market of Ahmedabad with the signing of a mega industrial project with a top-line potential of around INR1,350 crores. This joint development project is one of the largest project of this kind in Gujarat catering to the growing demand of high-quality industrial and logistics infrastructure in the region.
Now moving to the financial highlights. The size and scale of P&L is catching-up with our operational performance. During nine months, we have reported revenue of around INR550 crores, which is up by 146% on year-on-year basis. EBITDA for nine months grew 166% to INR152 crores and PAT for the nine months grew by 208% and reached INR97 crores. In Q3, we reported a revenue of around INR210 crores, which were up 149% year-on-year basis. Q3 EBITDA grew by 188% on year-on-year basis to INR60 crores and PAT for the quarter grew 331% on year-on-year basis to INR50 crores. Our balance sheet position remains very strong despite expanding operations where net-debt remained negative at INR196 crores, a crucial parameter in real-estate, reflecting the underlying business performance quite well is the operating cash flows.
During quarter, operating cash flows amounted to INR74 crores and INR277 crores during the first-nine months of the year. We estimate an unrealized operating cash flows exceeding INR3,818 crores coming from the current pipeline of projects. This is expected to realize. It is expected to be realized in the next three to four years. Looking ahead, we expect our supply to improve and buoyancy in-housing sales to sustain.
Our collections alongside strong sales performance and disciplined project acquisition has positioned us well for the future. We are currently gearing up for a vertical project launch in in Q4, as mentioned earlier. As mentioned earlier, due to lending of approval cycle in Bangalore, there remains a likelihood of this launch slipping into Q1 of next year. We look-forward to add projects across our target markets of MMR, Bangalore and Ahmedabad in the coming quarters and strengthen our project pipeline for the next year.
With that, I’ll now conclude my opening remarks and we can now start the question-and-answer session. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask questions may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question is from Mishra from Sunidhi Securities. Please go-ahead Mishra from Sunidi. You may go-ahead with your question.
Dhananjay Mishra
Am I audible, sir?
Operator
Yes, we can hear you. Please go-ahead.
Dhananjay Mishra
Yeah. So congratulations on a very a very good delivery side and P&L was very strong in this quarter and although it was contributed majorly by one project. So in terms of sales booking, we are down 20% and despite major contribution came from this, so are we — are we seeing any slowdown in terms of ongoing projects in terms of new booking or what is your issue?
Kamal Singal
Yeah, sure. So Daranjay, a good question. In the first-nine months, if you were to take the number as a number, we are at INR890 crores, which is 14% up from last year. We have always been targeting a growth of around 25% thereabouts over previous years and this year has been a similar year and this is what we are trying to do. Although we just touched upon a small point in the earlier presentation where we said that there is at least one project in Bengaluru, which is a large one, which is expected to be launched in last quarter — in the current quarter.
That launch might get shifted into next quarter, but that’s not reflecting anything to do with the demand. It’s mainly to do with the approvals which are getting slightly delayed in a few micro markets of Bangalore. So except for this project, which might slip into the next project and which might have a couple of INR crore impact on our overall plan, the rest is on-track and we are quite confident that we’ll be able to achieve the same target.
Dhananjay Mishra
So this 25% to 25% growth guidance which we started with that is still intact or we will have some lower-growth in terms of sales for FY ’25?
Kamal Singal
So I mean, as I said, normally, we would expect a little and this one project slipping into maybe first month or second month of the next quarter will mean a loss of around maybe INR150 crore INR100 crores, which will impact the growth by maybe 10 odd percent for the current year. But if we are able to launch it, which is the effort at this point in time, we will be very comfortable in achieving the numbers and rather overachieve a little bit. But having said, this project is a little doubtful and the worst phase is that we launch it the next quarter.
Dhananjay Mishra
So next two months, we are expecting this to be launched and Surat project will also slip in Q1 or it will be launched in.
Kamal Singal
This number should happen if you are able to launch Banajata and we are at INR900 crores, the rest of the things are progressing well and we are inching closer to the number of anything between INR400 crores to INR15 crores as we guided earlier. If it is slipping out, then we have a problem of couple of INR100 crores. That’s what I’m saying. Surat will possibly get shifted by a couple of quarters. There are some technical, legal issues that we are trying to resolve at this point in time. It’s a very large horizontal project, which involves aggregation and land conversion, etc. So overall timeline and technical issues are taking longer-than-expected. So Surat obviously will happen at least a couple of quarters from today onwards and that’s the timeline on that we see.
Dhananjay Mishra
So as of now, we are sure about Devan future project. That is one project we are going to.
Kamal Singal
Yeah, generally for sure, yes.
Dhananjay Mishra
Okay. And this — in terms of new business development, we are already at INR3,800 crores and we had guided for INR5,000 crores. So that number is likely to be achieved or it will be at this level only.
Kamal Singal
So broadly, yes, we are a lower than INR4,000 crores and we still are left with couple of months and we are — we are quite — quite on-track on that and we should hit something like 5,000 thereabouts for the year as a whole.
Dhananjay Mishra
And lastly on — in terms of this industrial park, in terms of we will be creating SKV, an entire investment will be done by. So I mean, who is the other partner and what is the arrangement over there? So can you throw some more light on that?
Kamal Singal
So specifically can we can discuss later offline and you can get-in touch with the IR team, but this is obviously a joint-venture kind of a structure and specifics maybe you can discuss with the team offline.
Dhananjay Mishra
Okay. But investment will be done by us only.
Operator
MR, I’m really sorry to interrupt, but may we request you to rejoin the queue as there are several participants waiting their turn.
Kamal Singal
Okay. Thank you.
Dhananjay Mishra
Thank you very much.
Kamal Singal
Thank you. Thanks. Thanks a lot.
Operator
The next question is from Amit Srivastawa from B&K Securities. Please go-ahead.
Amit Srivastava
Yeah, hi. Thank you for the opportunity. Am I audible?
Kamal Singal
Yes, I’m.
Amit Srivastava
Yeah. Thank you, sir for the opportunity. I have a couple of questions. One is that the Surat project now we are talking about — earlier we were talking about Q3 launch, now we are talking about Q2 getting delayed by couple of quarters because of technical reasons. So are we running at a risk also that because the demand trend for the plotting business is also now getting some kind of issues because the market is saying that some demand slowdown is witnessed. So have you witnessed the plotted business slowdown into the market?
And you have also highlighted that has done well in the past, now the whatever mid-premium would do well. So it is now running at service when we launch, we don’t know-how the demand trend will be there into the project. So any feedback on the projects and demand trend and the channels which you have done on that.
Kamal Singal
So Amit, Surat, when we say that the launch should happen in a couple of quarters from now is mainly due to technical, regulatory and legal issues, nothing to do with demand-side of the market at all. In fact, there is a very robust demand on-ground that we are — we are getting on general side. One launch which is expected to happen very soon within this financial year is in Bangalore on the horizontal side and we are very — we are very hopeful and we are very excited about that launch and we are — we are hoping that this gives as good a traction as we’ve been getting in all other horizons. So in our understanding, there is no slowdown in horizontal at all and things are moving pretty, pretty handsome there.
Amit Srivastava
But sir, in a similar line on our Sajapur project, which we launched at the peak of when the cycle was doing very well and still we have managed to sell only 30% of launch inventory, whereas the other players managed to sell across all the inventories, whatever they launched. So where why we are going slow on that project if you can highlight on that?
Kamal Singal
Yeah. Micro-market in Villa specifically has not done that great in general. The high-density horizontal, which is row houses actually, which basically compete with apartments only from the segmentation point-of-view, although it is horizontal against a vertical comparison that we are trying to make here, but this is not plotting. This is not large village with large land parcel, et-cetera. These are very-high density, almost like 1.2, 1.3 being achieved on the piece of land, but in the form of row houses.
That project is — has not done that strong as compared to the rest of the horizontal in the categories that we’re talking about. In fact, we have observed that in specific micro markets, that kind of a product has not been doing that great as we’ve been expecting. But for us, this credit is still great with the kind of investment we made, the kind of cumulative cash flows is what already et-cetera, set on those parameters, it still takes the box that, yes, it has been slower than the rest of the products that we do. But this is the only product that we have in a roo-house category. So to compare it with the rest of the horizontal which are plottings and very different kind of developments, et-cetera, will be a little unset. But yes, this particular project has not done that great in that sense.
Amit Srivastava
Okay. And sir, last one, basically on a launch pipeline. So this year in Q4, we have one project in Bangalore, which you highlight, other than everything will be on a sales, which will reach towards whatever the guidance which we are looking at, maybe missing by INR100 crores. But for that also, we’ll have a significant jump-up we have to do in Q4. So how do you think — which are the projects which can contribute in the coming quarters.
Kamal Singal
So I mean, there is one big launch that will give decent numbers for us. Is a very specific focus that we put. We achieved some good numbers of late in the last couple of months. But from here onwards, we are pretty sure that coupled with this one launch at least. And of course, we are trying to launch as well within this quarter per se. Even if slips, we’ll lose a couple of hundred, that’s a different story. But otherwise, the rest of the numbers we are pretty confident of achieving. Apart from this, this one — another small launch, which is expected to happen, almost certain to happen, it’s the new phase of. So there also we are opening new inventory and that launch will also happen within this financial year. So to say, two launches — original launches of new phases in Bangalore are happening this year and we are trying to launch a Bana Gatta. If Banagatta happens, we’ll exceed our target. If that doesn’t happen, then we’re talking about the kind of numbers that we just discussed. But two launches, not one.
Amit Srivastava
Okay. Got it. And sir, recently signed project of MMR and Ahmedabad, if you can give some highlight on that, what kind of equity investment is required in these projects? And industrial park, what exactly we are going to do into that JD actually.
Kamal Singal
So MMR is a JD project. Yeah, we are not investing anything significantly. It’s going to be one more asset-light kind of a project as usual. So we’ll just pay some very moderate amount as a deposit, which will be recoverable, then the construction has to be done by us and we’ll share the revenue. That’s the structure there. And Ahmedabad industrial will have a LNP kind of a structure where we partner in the entity itself and we broadly share revenues the way the revenues are projected to happen, etc., et-cetera, we’ll be broadly 70% 30%, 70% of the revenues will come to us and 30 will go to the land partners.
Amit Srivastava
Okay. Sure, sir. Thank you.
Kamal Singal
Great.
Operator
Thank you. Next question is from Mehta from Equirus. Please go-ahead.
Shreyans Mehta
Yeah, thanks for the opportunity and strong congratulations on strong financial performance and DD. So my first question is on the industrial.
Operator
You are not audible.
Kamal Singal
Not audible. Yeah, little louder, please.
Shreyans Mehta
Hello.
Kamal Singal
Little better now.
Shreyans Mehta
Yeah, sorry. So sir, my question is related to the industrial park business, the new vertical which we started. So from scalability perspective, how should one look at it? I mean, once this is successful, will we add more projects or this just one-off of kind which we are doing? And secondly, in terms of margins, will it be better than the current residential portfolio on horizontal vertical we are doing?
Kamal Singal
Yes. It’s a great question. This one is a project which in itself is a pretty large, in fact one of the largest in our space thus far. And hence, it has a very significant element of having multiple products within one development. So in the process, we’ve done little bit of industrial in the past, but nothing of the size and scale. Experience of selling industrial plots with a beautifully developed infrastructure has been great for us. But anything on the built-up side of industrial is not that great an experience. So we’re building on our experience on horizontal plotted development for industries where we provide all the amenities and value-adds and infrastructure. To us, that market is growing and then is drawing quite a bit of crowd, quite a few industrial setups to put up newer and newer industries.
Ahmedabad is gearing up for the next level of urbanization where all industries which are sitting in the heart of the city are looking at spaces outside, the entire focus of the government has been to provide better spaces for industries in the outer peripheres so that the inside of the city can be cleaned up, etc. So these are the drivers which we thought give us a great opportunity. We have some experience of doing that and we’ve got a land parcel, which is very, very appropriate of given the size, the scale, et-cetera that we can achieve.
Having said that, this is a normal proposition. On-top of that, we want to bring in innovations the way we have been bringing innovation on our residential or general side. Quite a bit of it is. Quite a few value-add can be brought into industrial space as well. That’s what the team feels and that’s what we are trying to achieve here. And depending on this experience, we always have been conservative in adding new geographies or new product mix, etc., et-cetera and hence, this is an important one that we want to do at a skill that merits our attention and based on this experience, of course, idea is to replicate the same thing in various other cities of Gujarat and even outside.
Shreyans Mehta
Got it. Got it. And sir, any guidance on margins from this business?
Kamal Singal
It will be as good as applauded residential project. For us, it is also broadly controlled and structured the same way and the revenue shares are very, very similar in terms of shares, et-cetera. So these will be pretty healthy in terms of margins.
Shreyans Mehta
Got it, got it. Sure. And the second question is on the MMR. When should we expect that project coming on-stream in FY ’26, second-half?
Kamal Singal
Also H2 next year.
Shreyans Mehta
H2, next year.
Kamal Singal
H2, H2. H2.
Shreyans Mehta
Got it, got it. So sir. That’s it from my side. Thank you.
Kamal Singal
Thank you.
Operator
Thank you. Next question is from Isha from Axis Securities. Please go-ahead.
Eesha Shah
Hi, good afternoon. First of all, congratulations on good numbers and good announcement. My question — most of my questions are answered. One which is remaining is on the cash end. Basically, are we utilizing any funds from the HDFC platform in the upcoming quarters?
And secondly would be since MMR and Ahmedabad, both the projects announced are asset-light models, do we have any plans for the cash that we’re sitting on of around INR1,000 crore cash, including the debt and the HDFC platform. So do we have any plans for how we are utilizing that cash?
Kamal Singal
Sure. So great question. And you very rightly pointed out that I mean, this year these two large projects have once again come on a JVJD basis and hence they remain asset-light and this also means that we consume less cash for the kind of top-line and the bottom-line that these projects are expected to be creating. The same thing happened last year also and that resulted into we sitting on our cash as on the last year end, et-cetera. But having said that, all the three sources of cash, first is, of course, course, internal — internal accruals. Second is the normal bank debt, which is the low-cost debt more in the region of single-digits, high-single-digit, et-cetera. And the third source is SDFC, which is a kind of a quasa equity kind of a structure where you pay when you are able to pay, et-cetera, et-cetera. It carries certain amount of risk for the for the investor, etc. I mean this is the third one.
Of course, the third one is the most expensive given the risk that it takes, et-cetera. So to that extent, that remains in our priority at third place. First, we want to consume our own internal funds, then the bank debt and then this one. As of now, there is a healthy line of bank credit also made available to the company and that is why we say that unless we consume these two first sources, we don’t really catch on to SDFC. SGC money is the money on tack. Unless we need it, we don’t need to draw it. That’s the kind of comfort that we have with that line.
Hypothetically speaking, if you were to get into some larger-scale acquisition, then this incremental money will be very, very handy. But at this point, as you very rightly pointed, because we are sitting on cash and because we’ve been acquiring asset-light kind of projects, we still have surplus money. The idea is to consume everything that we have apart from HDFC in next six months. That means an investment of more in the region of INR500 crore INR600 crores to happen, which is some total of bank debt and the surplus cash we have at this point in time to be consumed in next six months.
Eesha Shah
So this investment will be in vertical projects apart from?
Kamal Singal
Both, both. So I mean, while acquiring projects, idea is to acquire both kind of projects. There is a specific focus on vertical as we — we’ve enter into this cycle of acquisitions, et-cetera, but we are open to both and we are investing in both kind of projects as such?
Eesha Shah
Okay. And one last question. So going-forward to achieve our booking guidance, our main contributors towards the pre-sales numbers would be Aqua City and if it’s launched in the next quarter. Am I right?
Kamal Singal
So yeah, Baranata, while we are trying to launch it this quarter itself, it can slip into next quarter. But apart — apart from that, you know, I mean, within this quarter and next quarter, we have next phase, we have great line next phase, we have Aqua City, current and next, etc. We have a few other — I mean, you’re talking about this and next quarter or you’re even talking about — and of financial year.
Eesha Shah
End of next — end of this financial year.
Kamal Singal
Yeah, yeah. So it’s only and Great Land new phases. And if we are — if we are — if you are able to achieve it, Bana. Otherwise can slip into next quarter, that’s it. New launches.
Eesha Shah
Good. That’s it. Thank you.
Kamal Singal
Yeah.
Operator
Thank you. Next question is from Sheth from OneUp Financial Consultants. Please go-ahead.
Ritwik Sheth
Hi, good afternoon, sir. Sir, a couple of questions from my end. Firstly, just continuing with the last question. Total launches you mentioned in Q4 will be, Orchard and Great Land, right?
Kamal Singal
Yeah, correct.
Ritwik Sheth
And what would be the total GDV of these three projects?
Kamal Singal
The launch top-line will be more like INR4750 crores INR800 crores. Yeah, INR800 crores go.
Ritwik Sheth
INR800 crores cumulative for all these.
Kamal Singal
Yeah.
Ritwik Sheth
Okay. And so since Surat and Banargatta possibly could be in FY ’26 and with MMR project also coming in FY ’26 and already we have a decent amount of pipeline. So what could be the launch potential of FY ’26, yeah.
Kamal Singal
FY ’26, we look at it in two-ways. One is projects which are already announced and which are already there as a pipeline. There we are hoping that at least INR2,500 odd crores should be launched from that inventory. At the same time, there are a couple of things which are very close to materializing in the existing acquisition pipeline and we are considering this pipeline also in a way that we acquire and launch within next financial year, at least some part of these acquisitions. Put together, we should be able to exceed INR3,000 crores next year. Okay. Fresh launches.
Ritwik Sheth
Right. Yeah. So my — actually my next question was on the acquisition bit only because you have mentioned in the presentation that we are looking to add new projects across Ahmedabad, Bangalore and MMR for the remainder of the year. So what is the kind of projects that we are looking to add, is it vertical, horizontal and what kind of GDV are we looking to add?
Kamal Singal
The last two years, I mean, this year and the last year put together has been INR9,000 crores to INR10,000 crores of growth acquisitions and we can hope that we’ll continue with the same trajectory, very, very similar trajectory, adding INR5,000 crores — maybe INR5,000 odd crores next year again. That’s on the acquisition side, new product acquisition side.
Ritwik Sheth
Right because sir, already we have INR10,000 crores of projects in-hand which had to be launched. And assuming that we add another INR4,000, INR5,000 crores next year, we’ll be at INR15,000 crores with INR3,000 crores loans. So where are we comfortable to take this project pipeline on our balance sheet and you know what kind of launches do we need to do in FY ’26, ’27 for these to get monetized? ’26, you mentioned around INR3,000 crores. And so what is the kind of churn that we would see from the projects that are already acquired.
Kamal Singal
Okay. So our idea is to grow on these parameters to the extent of maybe 25% to 30%. That trend continues. So I mean, everything built from there onwards, the acquisition plan, the launch plan, the fresh sales plan, collection plan, et-cetera. So everything derived from this trajectory of — and fresh sales is at the center of everything. So if we are targeting, 25%, 30% this year, even if there is a delay within a block of two years in this year and next year put together, we’ll have a CAGR of 25% to 30% is what we are trying to achieve here, fluctuation is a part. And this trend should continue beyond that also. ’27, ’26, all this financial year should see 25% to 30% growth in fresh sales and that will always mean that we’ll have to launch cumulatively with that kind of a growth in terms of — in terms of launches as well. Okay. And of course, this will be a combination of vertical and horizontal.
Our vertical today is a little lean as compared to what we think is the ideal. And hence you will see little more action and little more of investment proportion going into vertical as a segment. Balance sheet size vis-a-vis the inventory size, et-cetera, is actually not a worry for us because last two years have been such that the almost everything has come through JD and asset-light model. So we’ve been able to create top-line and bottom-line, et-cetera, without really investing much and that is why we are sitting on cash that we just talked about. And hence, hence balance sheet size is not looking to be of any major concern for us next couple of years. But the growth trajectory is very important and that is what we are working towards, which is 30%, 30-odd percent growth, right?
Ritwik Sheth
And sir, just one last question. Have you seen any change in behavior from landowners in terms of pricing and in terms of negotiation in the last, say, six months versus previous 12 months ago?
Kamal Singal
Yeah. So I mean, I think in my understanding it varies from market-to-market. Bangalore has seen prices going up to a certain extent in almost every macro market. But having — having seen so, last three, four months have been slightly different. I think they have now come very close to what the market can absorb and hence expectations are not that high now. I mean they are not expecting them to continue to rise in the proportion that we’ve seen last two to 3/4. So that’s Bangalore for us. Ahmedabadi is the other way around. I mean, prices were always decent and reasonably because about how much value the developer can add-on the land that exists. It’s also about the trust that you can fetch from — from very, very large-scale land partners. Arvind has been in a very, very sweet-spot on land side and hence, we continue to get and attract some very, very large land parcels.
I mean, if you just recollect, last year we’ve had three very, very big-sized projects acquired and launched, which was City of Land 2,, etc. And this year again apart from these three, we have been able to tie-up on a very, very large-scale industrial development. Everything is on joint development, joint-venture basis. So very differently. The brand has a very, very special traction. We make a lot of sense to the landlords and we’ve become kind of a preferred land — I mean development partner for most land partners. And Banalore is a little tighter in terms of competition, prices have gone up. At the same time, expectations have gone up, but in my understanding, last three months have seen a little bit of a tapering in terms of expectations of the landlord there as well and prices possibly have come close to or very close to peaking out.
Ritwik Sheth
Okay. Got it. Thank you, sir and all the best.
Kamal Singal
Thank you.
Operator
Thank you. Before we take the next question, we’d like to request participants to please limit your questions to two per participant so that the management is able to address questions from all participants. The next question is from Akshay Kothari from JHP Securities. Please go-ahead.
Akshay Kothari
Thanks for the opportunity. Sir, just wanted to understand what are the problems we were facing in Surat? You mentioned that there is some delay.
Kamal Singal
So Surat is a very, very large-size of project and generally this size and scale will attract multiple, you know kind of milestones to be achieved. There are multiple partners as-is the case in most of the land deals that we have had. Lands need to go through the processes of conversion, through the process of approval, environment and everything. So there are quite a few technical, legal things that we need to sort out. It has taken longer than what was anticipated earlier. But hopefully next year couple of quarters, it should all happen and we should be able to launch this project. This is going to be our entry into Surat market. So we’re very excited about it and we are working very hard towards achieving this objective of launching this project as early as possible.
Having said that, we are also working on other options in Surat. Surat, we have identified as a key market. It’s not about one project or two projects, etc. It’s about we deciding that we’ll be there in that market as a serious player and the efforts are ongoing to also acquire and try to do few other things in that market and that’s how we are planning to develop the overall market as well.
Akshay Kothari
Okay. And sir, second question is on the mega industrial park, which we are doing at Ahmedabad. So is it that Dishman land, Dishman Infrastructure land?
Kamal Singal
No, I’m not sure about Dishman land. I don’t see any correction.
Akshay Kothari
So just wanted to understand the economics of this. Generally, there’s also this another land parcel origins over there. So is it near to that land parcel?
Kamal Singal
I’m very sorry, but even origin I’ll not be sure about. We are at the highway itself and we will be — this project otherwise is in the vicinity of Appacity itself, you know. Okay. Yeah. So it’s very close to.
Akshay Kothari
So what is the time horizon for completion of this after the launch?
Kamal Singal
So obviously, such a huge development will at least have two or three phases. We are right now we’re elevating it, whether it should be three phases, at least one-third of this will be launched in one-shot or we should be launching half of it. That should materialize very soon, but at least two phases will be happening.
Akshay Kothari
And we will be selling the industrial plots, right?
Kamal Singal
Yes. Yes.
Akshay Kothari
Okay, because origins is by Mahindra and they generally leave the land.
Kamal Singal
So we are not — we don’t have this leasing of land model. We will — okay. We will have outright selling model. Mahindra also had a project in our understanding in the similar direction. That’s far away. We are much closer to the city and we are much better connected, et-cetera. But yeah, we don’t have any plans to lease land. We have a buy-and-sell model.
Akshay Kothari
Understood. Yeah, that’s it from my side and all the best. Thank you.
Kamal Singal
Thanks, Akshay.
Operator
Thank you. Next question is from Aditya Sen from RoboCapital. Please go-ahead.
Aditya Sen
Hi, thank you for the opportunity. Sir, can you please share some guidance on how much revenue are we going to recognize in FY ’26 and FY ’27.
Kamal Singal
So this year, as you see in first-nine months itself have been very, very healthy. So this year obviously is going to be great. I think revenues given the accounting standard will always have little bit of a peak happening. But on a block of two to three years, we’ll see a terminal growth of similar proportion as we sell-in terms of fresh sales. Ultimately, whatever we sell as fresh has to enter into books of account with some consistent gap. So I would rather say that in the block of next two years, once again, we should see a healthy growth in the number that we’ll actually say, which to start is going to be very-high.
So in case next year is going to be a little low, then it will be compensated by next year or our side. That’s how it works. It depends upon when and how much it gets completed, BOs received, etc., et-cetera. But in a block of any two years, I think we will start seeing fair amount of consistency in terms of growth that we see otherwise in fresh sales.
Aditya Sen
Okay, sir, understood. Thank you.
Operator
Thank you. Next question is from Amit Ageha from H.C. Hawa. Please go-ahead.
Amit Agicha
Good afternoon, sir. Am I audible?
Operator
Yes. Yes, please.
Amit Agicha
Yeah. Thank you for the opportunity and congratulations for good set of numbers. Sir, my question was connected to like, are you seeing any margin pressures due to rising material and labor costs?
Kamal Singal
Not really, Amit. Material cost has not really gone up. I mean, within a very acceptable level of fluctuations on either side, they have been fairly consistent. Labor cost also is not going up in any significant way, which could be — which could be called as something of an exceptional type. And hence the overall cost model is pretty stable. Our land deals are as steady as they have been. So our margin model looks to be stable from the BD that we’ve announced till-date.
Amit Agicha
Sir, one last question, what proportion of sales are you seeing from NRI buyers and how is the company targeting this segment?
Kamal Singal
So I mean, we are into — we are majorly into retail sales. Our sales to direct customer is possibly one of the highest. We don’t focus on investor-driven kind of segment. Generally our NRI NII sales should be in the region of 8% to 10%, but you could just connect with the team offline to get the specific number. But it’s in high-single-digits to around 10% thereabouts in my understanding.
Amit Agicha
And thank you, sir. Thank you, all the best for the future.
Kamal Singal
Thank you.
Operator
Thank you. Next question is from Rahil Shah from Crown Capital. Please go-ahead.
Rahil Shah
Hi, can you hear me?
Operator
Yeah, yeah, please all.
Rahil Shah
Yes, hi, sir. Sir, my question is also on the margins, like if you can please explain what are like steady-state margins one can factor-in or given overall picture, how would differ in business like in terms of joint development or ones you own outright and which has more margins and as your share of you know projects leaning more towards the joint development, so just a general outlook, what kind of steady-state margins one can expect?
Kamal Singal
So Rahul, on a weighted-average basis, having put together vertical-horizontal, JDs and outright,, we are working on a margin or a threshold of around 25% at EBITDA level. That has been pretty consistent. We generally have been performing a little better than that. You would have seen this from the last few years trend. This has been our clear focus. We are also a company which says that return on effort is as important as the top-line per se. Growth without bottom-line is, I mean, does make a little less sense to us and hence this clear focus on profitability and cash generation, et-cetera, etc. And that’s how the whole business is driven. That is how we’ll acquire projects, that’s how we’ll launch the project, that’s how we’ll segment the product, that’s how we’ll price the product, etc.
So everything closed from there, very clear focus on our cash flows and profitability. So as of now, as we speak, 25% is the threshold that remains the same. I mean, going-forward, as we scale-up, etc., et-cetera, this will remain a very clear focus. A couple of percentage points here and there could always happen. That’s not something which is cast in stone. But broadly speaking, the focus and the levels of profitability should remain very similar to what we’ve been achieving.
Rahil Shah
So what had helped you last year, FY ’24, I think you recorded 33% or so EBITDA margins for the full-year.
Kamal Singal
So you can just presume that some fluctuations within the numbers and the — and the long-term trend of around 25% that happens. I mean that may possibly reflecting some project-to-project variations and which project comes at what point in time is something which is of more important. And you know, for example, in this set of numbers, a very-high proportion of lend came in. Was a little disproportionate in terms of profitability and hence it jacked up the numbers on an average basis. But I’d rather request you to look at it more from a long-term trend and more from a steady-state basis. And these kind of fluctuations on either side can happen. On a long-term basis, we are very clearly focused on EBITDA 25% and everything else flowing from there. Something assume as book.
Rahil Shah
Fine, sir. Got it. Thank you so much. All the best.
Kamal Singal
Thank you.
Operator
Thank you. Next question is from Amit Jain, who is an Individual investor. Please go-ahead.
Amit Jain
My question is already answered. Thank you.
Operator
Thank you. We move to the next question. Next question is from Daranjay Mishra from Sunidhi Securities. Please go-ahead.
Dhananjay Mishra
Thanks for the follow-up opportunity. Sir, just one follow-up in the steel park project. So once we complete all the three phases, let’s say, three years down the line and sell plots to industries. So we will be managing these and so what kind of annewal O&M opportunity you see, I mean in this project?
Kamal Singal
Even for a industrial projects, we will broadly be focusing on buying and selling and existing. So generally, we would rather prefer to exit the project once everything is sold-out and hand over the maintenance, etc to a specific purpose SPV or society or any association of the occupiers there. So we don’t look at it from a steady-state — I mean steady consistent stream of flows to come to us.
Dhananjay Mishra
Okay. So this is just a real-estate thing for us, right?
Kamal Singal
Yeah, for us. Real-estate is like a plotting project.
Operator
Thank you. We take the last question from Ritrik Sheth from One-up Financial Consultants. Please go-ahead.
Ritwik Sheth
Yeah. Sir, thanks for the follow-up. Sir, my question is on the fundraise enabling resolution that we have taken. Earlier in the call, you mentioned that we have enough capital to deploy INR500 crores to INR600 crores in the next six to eight months. So will this just be an enabling resolution or will go-ahead and raise funds?
Kamal Singal
So as you very rightly pointed out, we are sitting on some very healthy cash position and we’ve got task cut out for ourselves to deploy what we have already in terms of — in terms of accruals and also the bank line which we just created at a very, very competitive rate. So these two funds and these two sources are absolutely great for us, which optimizes our overall deployment and cost-of-capital, et-cetera.
Our QIP is an enabling resolution. We’ve got all the processes done. And as I understand, we’ve got a year to finally hit the market and get this money in as a further investment source. Of course, today the target and the challenge is to deploy what we already have, given the kind of fluctuations and volatility that you see in the market or and given the comfort that we have on the need of funds to be invested at this point in time. I think we have placed very comfortably and we think we can time it better and the time it’s appropriate sort of this thing and hit the market and get this money. But we got enough and more time. It’s generally one year that money is supposed to be completing the process and we’ve got that kind of a time already with us.
Ritwik Sheth
Okay. Okay. Great, sir. Thank you, sir, and all the best.
Kamal Singal
Thank you. Thanks.
Operator
Thank you very much that was the last question. I would not like sorry, I’m sorry, yeah. Yes, sir. If you’d like to give any closing comments.
Kamal Singal
Yeah, great. I mean, thank you. I mean, I’ll just say thank you to everybody for participating in this earning call of urban Span Spaces. I hope we’ve been able to address most of your queries. However, if there is anything missed out on any of your questions, kindly reach-out to Vikram and he’ll connect with you offline and clarify and give further information as may be required. Looking-forward to interacting with you in the coming quarter. Thanks a lot for your time. Thank you.
Operator
Thank you very much. On behalf of Arvind SmartSpaces Limited, that concludes this conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.