Arvind SmartSpaces Limited (NSE: ARVSMART) Q4 2025 Earnings Call dated May. 21, 2025
Corporate Participants:
Amit Sharma
Mr. Kamal Singal — Managing Director & Chief Executive
Analysts:
Amit Srivastava — Analyst
Shreyansh Mehta — Analyst
Dhananjay Mishra — Analyst
Ritwik Sheth — Analyst
Amit Agicha — Analyst
Ronald Siyoni — Analyst
Piyush Arora — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Urban Smart Spaces Limited Q4 FY ’25 Post-Results Earnings 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 assessions during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Amit Sharma from AdFactus PR. Thank you, and over to you, sir.
Amit Sharma
Thank you. Good afternoon, everyone, and thank you for joining us on the Q4 and 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 Surresh, Chief Financial — Chief Operating Officer; Mr Mitanshu Shah, Chief Financial Officer; Mr Prakash Makwana, Company Secretary; and Mr Vikram Rajput, Head, Investor Relations.
Please note that a copy of the disclosures is available on the Investors section of the website of Urban Smart Spaces Limited as well as on the stock exchanges. Please do note that anything said on this call that reflects the outlook towards the future, which would be construed as a forward-looking statement must be reviewed in conjunction with the risk that the company possesses. I would now like to hand over the call to Mr Kamal Singhal for his opening remarks. Thank you, and over to you, sir.
Mr. Kamal Singal — Managing Director & Chief Executive
Thank you. Good afternoon, and a very warm welcome to everyone present on this call. Thank you for joining us today to discuss the operating and financial performance of Arvind Smart Spaces for the quarter and full-year ended 31st March ’25. Now let me share my thoughts on the sector first. India’s real-estate sector is being catalyzed by a growing appetite for home ownership, the distinctive and consistent feature of India’s real-estate market uptrend is premiumization, a steady rise in average ticket sizes and prices per square-foot. There is a clear shift in buyer preferences for larger, better design residences. With additional launches moderated, supply matched by demand, home inventory levels are at their lowest in the recent past.
The union budget ’25-26 has further reinforced the structural theme around real-estate with a substantial allocation towards infrastructure and urban development. These investments are expected to improve connectivity and unlock new residential corridors. Implementing this, RBI has reported an 11% year-on-year growth in-home loan disbursements in 2024 with total credit reaching INR29 lakh crores, largely driven by first homebuyers, a segment that continues to gain strength. The enhanced sectoral is creating a favorable environment for developers offering the right product in high-potential micro markets.
Within the sector, brandy developers with strong balance sheets and design premiumization competencies appear competently placed to address emerging opportunities. The competencies we aggregated during the last several years have matured and the opportunities in our business landscape appear larger than ever. The combination of the two organization competence and opportunities vastness provide us with a multi-year performance visibility. As a company, we had another strong year with several key milestones achieved across bookings, collections and business development. I’m pleased to share that we achieved our highest-ever annual sales booking, reaching INR1,271 crores, a 15% growth over previous year. It’s encouraging to see how well our projects are received by our homebuyers, especially in newer micro markets. Projects like Aqua City and the Park have performed exceptionally well, contributing to 67% of total booking for the year. Bangalore continues to be a key market for us, contributing to a total of INR474 crores of sale, which is 37% of our annual bookings. During Q4 FY ’25, we registered a booking of INR381 crores, up 18% from INR323 crores in the same quarter last year. A key highlight of the quarter was the launch of 200 units at the park in in Bengaluru. We are happy to report that the entire inventory was sold-out during the launch, reflecting the strong demand and positive response from Bengaluru homebuyers for Brand urbent.
The company is being recognized as amongst the thought leaders in urban life quality for developing design to inspire homes. Our customers have become our biggest marketing agents and this is evident from the fact that the bookings now stand at as high as 22% of our total sales. I’m pleased to share that we sustained business development momentum during the year, securing projects with a total top-line potential of around INR4,450 crores across key markets of, Bangalore and Mumbai metropolitan region.
In Q4 FY ’25, we signed a new residential ported development project in Ahmedabad spanning 150 acres with a project top-line — projected top-line of around INR600 crores. Last two years reflect an orbital change in our company’s business development numbers and we look-forward to build-on this momentum in-line with our growth objectives. Sorry. Now moving to the financial highlights. The size and scale of the P&L has grown significantly during the year.
During the full-year, we have reported a revenue of INR713 crores, a growth of 109% on a year-on-year basis. EBITDA for the full-year stood at INR196 crores, up 130% and PAT stood at INR119 crores, a growth of 133%. In Q4, we reported a revenue of INR163 crores, which is up 39% year-on-year basis. Our Q4 EBITDA grew by 57% on a year-on-year basis to INR45 crores and PAT for the quarter grew 12% to INR22 crores. Our balance sheet remains strong. We continue to scale our operations up. As of 31st March 2025, our net-debt now stands at INR27 crores. During the quarter, operating cash flows amounted to INR60 crores and total INR337 crores during the full-year ending March ’25.
We estimate an unrealized operating cash flows exceeding INR3,975 crores coming from current pipeline of projects. This is expected to be realized in next three to four years. As a company, the focus always remains on shareholders’ value-creation and I’m very pleased to share that the Board of Directors have recommended a final dividend of INR6 per equity share of a face value of INR10 each. This marks the third consecutive year of dividend distribution for the company. Looking ahead, from a sectoral point-of-view, mortgage interest rates are likely to remain stable with a downward bias following the reduction in interest rates across the Indian economy. I’m sorry. This is likely to catalyze the demand for home addressing mid to-high income segments. In view of this and other factors, the sector is poised in the midst of a long-term upcycle with structural drivers outweighing short-term fluctuations. We continue to remain optimistic about the demand environment and are well-poised to further deepen our presence in key markets, which includes, Bangalorian MMR. Pardon, for my bad thought today, the company expects that its strategic blueprint drawn around accelerated growth and enhanced liquidity will deliver strong outcomes in the coming year. With that, I’ll now conclude my opening remarks and we’ll start the question-and-answer session.
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 R&1 on the touchtone telephone. If you wish to remove yourself from the question queue, you may press RN2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Amit Srivasta from B&K Securities. Please go-ahead.
Amit Srivastava
Yeah. Good afternoon. Thank you very much for the opportunity. Sir, I have couple of questions. One is to start with we have almost like consol inventory of INR1,400 crore-plus and around INR8,300 crore of yet to be launched projects, which is in a pipeline. So can you give us some idea that what is the plan for the FY ’26 to be launched in terms of the value and region-wise
Mr. Kamal Singal
Hello sorry can you hear us
Amit Srivastava
Yeah now I can
Mr. Kamal Singal
Get yeah, sure. Sorry. Sorry for this. So in the current year, we expect to launch projects worth INR4,000 crores of as fresh launches. And this will broadly include INR2,000 crores coming from Bangalore, 1,000 each from MMR and Dhmedabad.
Amit Srivastava
So this is incremental, sir, INR1,450 crore is unsold which will be there.
Mr. Kamal Singal
Yes. So this will be additional launch, yes, over and above INR1,500 crores.
Amit Srivastava
Okay. Okay. And in terms of project-wise, if I just see that one of the project like for Strail, we launched a year-ago and which received very strong response. But after that it was moving slow in terms of booking. But in Q4, we have seen a good jump into projects. So can you elaborate on what has changed in that project? Have you launched any new phase of that or what has changed?
Mr. Kamal Singal
You’re talking about forest trail or which?
Amit Srivastava
, sir, forest trail.
Mr. Kamal Singal
Sajab. Okay. Great. So, what we launched, of course, this — I mean, we discussed last-time as well that this was one of the projects which saw great traction initially and then sustaining sales has been comparatively slower as compared to the rest of the portfolio that we’ve had. But we have taken some steps and our sales momentum is now looking to be coming back. In fact, there have been healthy sales which have happened in the last few weeks. Q4 actually has been pretty healthy. If you see the numbers and breakup, I don’t have it right now, but I think we sold more than INR140 crores worth in Q4 itself in this project. So it has come back on very healthy tracks and things are moving.
Amit Srivastava
So we have changed anything in this project or it is the demand has come back from the market automatically.
Mr. Kamal Singal
So a lot of this has to do with the actual progress on the site or kind of rejuvenation of the overall campaign and better explaining the overall value proposition or doing slightly better job of operations in terms of furnished sample house, etc., etc. So it’s not one thing that we can highlight in particular, but because we took this as a project in terms of improving sales, I think multiplicity of various things and initiatives that we would have taken have resulted into this very significant momentum actually, INR150 crores in a quarter is pretty healthy in that sense. Yeah, but no change in-product per se.
Amit Srivastava
Okay. And in terms of sort of collection also, we have seen again this year, we have maintained a very good collection, which is if we look at from pre-sales ratio, it is upward of 70% plus and which we are continuing since last three, four years. Can we expect this momentum to continue in the coming years for the next couple of years given our share of plotted and is still higher and this will change after two, three years down the line once the project will shift towards the vertical side of the project.
Mr. Kamal Singal
You’re absolutely right, the momentum right now continues and the ratio of cash collected to the overall sales, et-cetera is very, very healthy. This is going to be sustaining for some time for sure. We remain heavy on horizontal and horizontals are also configured and kind of positioned in a way that a lot of cash upfronting is happening in our case, in our portfolio. So as compared to industry, this trend will continue and we’ll still weigh heavy on horizontal and continue to weigh heavy as compared to industry averages.
But having said, as we discussed last-time as well, we will be moving more towards vertical going-forward to that extent and to that limited extent, some sort of moderation will come because that is a different business model that we’re talking about. But yeah, I mean, as such, it will continue and moderate slightly in the coming years as we take a more vertical within the portfolio.
Amit Srivastava
Okay. And last question, sir, how is the execution is progressing across key projects and as the pieces continue to scale-up across the portfolio, so what are the steps we are taking to ensure execution keeps the pace, particularly in terms of construction ramp-up, contractors or in terms of the delivery timeline to maintain.
Mr. Kamal Singal
So construction is moving very healthy. We completed construction at, which is one of our biggest high-rise in Bangalore. So there we received OC, etc., and now handovers are happening. Similarly, we’ve handed over significant number of villas yet at Forest and we continue to do that. Similar is the case with up lens. We have had some very good progress at 2 and 3. So all-in all, execution is heading full steam and we obviously are taking quite a few initiatives in augmenting our execution capabilities, which includes upgrading the scale and size of our contractors, beefing up the organization structure in general,
Now there is a structure which is more city-centric and more empowerment and delegations have gone into our local level management, etc., et, etc. At the same time, our overall bandwidth and systems are being upgraded. We’ve gone through a very, very interesting and very exciting program to upgrade our ops monitoring piece within the system, which is underway. We’ve done 70%, 80% of the job that we are supposed to be doing under that initiative. It’s about to be conclude it, but this is a combination of managerial IT and system support, etc.
So all-in all, I think on the quality of vendors, quality of systems, SOPs, controls, softwares, all this put together is something that makes us believe that we are preparing ourselves upfront in taking up newer and higher challenges on execution. And as we speak, we are in a pretty decent situation on execution across projects.
Amit Srivastava
Okay. Great today, sir. I’ll come back-in queue for the question.
Mr. Kamal Singal
Sure. Tough.
Operator
Thank you. Thank you. The next question is from the line of Shreyan S Mehta from Equirus. Please go-ahead.
Shreyansh Mehta
Yeah, thanks for the opportunity. Sir, first, any clarity on our Surag project when we plan to launch that? Number-one. Number two, in terms of our Mumbai project, which we had signed last year, can you give some highlights on how we would like to price it in terms of — and even in terms of pricing as well as product launch, since this will be our first project launch in Mumbai, so if you could provide any flavor on that?
Mr. Kamal Singal
Sure. So Surat, I think we discussed last-time — last investors call that we’ve had that this project shifts by a couple of quarters. I think we are broadly at the same place. And we are hoping that we should be able to resolve everything which is involved in this case, lot of approvals, last project, 300 acres, et-cetera, et-cetera, has taken more than anticipate. But I think what we communicated last stays as it is, couple of quarters means by next quarter, we should be in a position to launch this project and we are working towards that.
Coming to Mumbai, yeah, this is a very unique product we’ll be bringing at the size and scale that Citi has seen very, very few times, if at all. Our pricing everything and details on that are still being worked out. Product has evolved already in a very significant way. Quite a few levers are already pressed on approvals, etc., maybe we are midway already and it’s on-track to be launched this year as such. So maybe By the start of next con-call, we will be in a better position to tell you specifics on pricing, et-cetera. But overall, the market has seen a very healthy trend of — whatever objective we’ve set as a business plan while we acquired this project are all expected to be met and prices are only better than what you would have otherwise assumed. So all-in all, a good news and good situation to be in as far as Mumbai entry is concerned.
Shreyansh Mehta
Got it. Got it, got it. Sure. Sir, and one more clarification. In the opening remarks, you said that probably we’ll intend to launch INR4,000 odd crores, of which INR1,000 odd crores would be from Ahmedabad. So I’m presuming one would be Surat and it would be in phases. The second could be the plotted or would — you know the new projects which we signed in Q4 this year?
Mr. Kamal Singal
Yeah. So Gujarat in general will be — when we say Ahmedabad, basically we mean Gujarat, yes, of course. So this will be majorly three projects. One is the new plotting that we acquired last quarter and then we will have industrial project getting launched this year and of course, Sura. So all these three put together will be in excess of INR1,000 crore launch.
Shreyansh Mehta
Got it. Got it. Got it. Sure. And sir, in terms of new BD this year, any guidance which you would like to provide?
Mr. Kamal Singal
So last two years, we were like INR4,000 last to last year, 44 50 last year, I mean the year we just went by March ’25. And this year should be more like a INR5,000 crores. We are in the process of investing now from here onwards INR1,000 more crores after having invested — what have invested in last couple of projects. In fact, it was a heavy deployment year for us last year. We deployed significant money in projects like, the plotting as we just mentioned and also the industrial one. But having done that, we got INR1,000 crores more in terms of fuel to invest. Including all that, our estimate is that we should be able to add around 5,000 thereabouts this year as well as new VD. New BD.
Shreyansh Mehta
Sure. And sir, one last question from my side. In terms of our P&L reporting, this quarter, the employee cost as well as the other expenses seem to be on a higher side. So how should one read into it?
Mr. Kamal Singal
So this year has also been a year where we’ve invested significantly in terms of systems, processes, et-cetera, to prepare ourselves for the higher bit of challenges and orbital change which is coming our way. We’ve employed some of the top-notch consultants who are helping us define our objectives, define our org, define our SOPs, et-cetera, et-cetera. So we’ve gone through a very, very elaborate exercise for the company as a whole. Those expenses have also kind of shown up in the numbers.
From a small base, these numbers are not too insignificant and they’re not too significant as well, but they are reasonable. And hence, the expenses are looking a little higher-than-normal. Generally, the expenses are range-bound and they are as per what they should be and what we’ve been showing in the past, barring these exceptions of upfront investments into some of these very important assignments that we’ve taken-up in the last couple of quarters.
Shreyansh Mehta
Got it. So broadly speaking, 25% to 30% remains intact in terms of margins.
Mr. Kamal Singal
So yeah, margin — EBITDA level, 25% is something that we always say, plus-minus 2% keeps happening from project-to-project and from period-to-period, but 25% is pretty much intact. And even these smaller that we just mentioned, they do impact a quarter because we get bunched up in a particular quarter, but 25% on an average margin in the project portfolio that we have right now is absolutely on-track.
Shreyansh Mehta
Got it. Got it. Thank you, sir. That’s it from my side. Thank you.
Mr. Kamal Singal
Thank you.
Operator
Thank you. The next question is from the line of Thanajay Mishra from Sunithi Securities. Please go-ahead.
Dhananjay Mishra
Yeah, thanks for the opportunity and congrats on very strong operating performance. So just one question, given the launch pipeline and the BD target, so what kind of free sales number we are looking for next two, three years in terms of growth on this INR1,270 crore base?
Mr. Kamal Singal
So it’s a great question to ask. We know that we should have done a little better on fresh sales if we had not missed our couple of launches, which have shifted into the coming quarter this and the next one, that means that there will be some pent-up happening in the coming quarters and for this year as a whole. If we had launched these couple of things which are generally delayed on account of approvals, last year, we would have easily met our general impression of achieving something like 25% to 30% growth in the fresh sales and that’s what we have been achieving consistently last several years.
Now our — I mean, obviously, the BD pipeline, acquisition pipeline, et-cetera, is pretty healthy. This pent-up will happen. And hence, we think that in a block of two to three years, we can count from previous year or this year or whatever way, we should be able to achieve and continue to achieve 25% growth put together between the two years as such.
Dhananjay Mishra
And which we are, yeah. And which all projects or phases you expect this year definitely will be launched.
Mr. Kamal Singal
So the launch pipeline per se is across all these three cities. We have, for example, Banagata, high-rise project, ITPL, high-rise project, Orchards plotting project, we have a project in Bangalore on Sarjapur Road and Airport Road. All these are lined-up to be launched in Bangalore. This totals up to around INR2,000 crores and that too only for the phases that we’ll be launching. We are not even counting the entire project per se. What we tell you as number of launches will be for the relevant phases only. So this is Bangalore.
Gujarat we just touched, majorly three project launches, industrial, Coal plotting and Surat adds up to INR1,000 odd crores. And remember, obviously, Pancapoli we’ve already announced Pancapoli topline is more like a crore project, but the phase should be half of that. So we add around INR700 crores there. And we are hoping that at least one society redevelopment should be getting into our portfolio very soon, extremely advanced stages of everything being done. We are waiting for one last milestone to be achieved, but otherwise, we are very close to announcing that project as well. So that should also get launched this year. So this is broadly the launch pipeline for the year, adding up to from like INR4,000 crores.
Dhananjay Mishra
Okay. Thank you all.
Mr. Kamal Singal
Thank you.
Operator
Thank you. The next question is from the line of Sheth from OneUp Financial. Please go-ahead.
Ritwik Sheth
Yeah. Hi, good afternoon, sir. Sir, a few questions from my end. Sir, firstly, is the confidence of the higher launches in current year due to the sharp increase in the investment that we have done in the current quarter. So is it heavy on the approvals that we have invested in Q4 FY ’25? That is what is giving us more confidence to launch projects worth INR4,000 crores?
Mr. Kamal Singal
Yeah. So I mean, it’s a function of two things. One that we slipped on a couple of launches last year. So obviously, they are getting adied into this year. That is for sure happening. And obviously, after having delayed the — for the kind of time that they are delayed, I think they will in any case happen. Plus we have been acquiring quite a few projects. So if we announced INR4,100 crores of BD last year, it has to start coming into the portfolio and launching, et-cetera, et-cetera, this year and that’s what’s happening. That’s what is happening naturally.
So it’s a combination of very clear focus on approval, of course. We know that this is one area we need to be having very, very sharp focus on. At the end-of-the day, whatever we’ve acquired in terms of new projects last couple of years, almost like INR8,000 plus crores put together have to start coming into the portfolio and that’s what is expected to happen. Just for your understanding, while previous year and last year, last year and three years to last year, we have launched almost like INR8,500 — we’ve acquired INR8,500 crores of fresh BD. While we have kind of sold only INR1,200, 70 say INR13 crores-odd this year and launches are also not that big.
So to assume that we’ll be launching 4,000 out of — out of 8,500 that we just added last two years is a reasonable assumption with reasonable conservatism as well, so to say. So this is something which is a very natural progression of launches given the BD that we’ve done in the last few years, two years mainly.
Ritwik Sheth
Sure. And sir, on BD, if you can just touch upon what kind of projects you are looking to acquire like in terms of horizontal vertical and geography — geography referenced now that we are in three states. So geography-wise and horizontal vertical, if you could give some sense on that.
Mr. Kamal Singal
Yeah. So I mean, we’ve already stated that we will bring about a little more of a kind of rationalization into our product portfolio. So we will be investing little heavier in vertical projects that gives a little more stability to the numbers and execution, et-cetera, et-cetera. That’s one. That essentially means that our investments in Bangalore will go up. In our portfolio, in verticals specifically, Bangalore makes more sense in terms of bottom-line as compared to what they do in Ahmedabad. And hence 8 Hence, when we say we need to do more vertical, it essentially means that we need to do more vertical in Bangalore. On an overall basis, the ratio possibly of investment will be more like a two is two one is two-one, two being Bangalore, one being Ahmedabad and another one being Mumbai, and that’s how we are looking at it. That should broadly be the case. So if it’s INR1,000 crores, it should be more like INR400 crores to INR500 crores going into Bangalore and INR250 each crores going into Mumbai and. Yeah. So these are broad. I mean, project acquisition is something which can — which can take any bulge depending upon what kind of project we come across, what is the excitement about that project, how big a sense it makes in terms of overall bottom-line growth, et-cetera, etc. We are a company where very clearly focused on cash flows and profitability. We chase growth with profitability and hence to that extent an exciting project coming in any of the market, which otherwise fits our strategy. We are flexible about it. But as a stated objective and kind of goal that we are chasing, investment should be more like two is two one is.
Ritwik Sheth
Okay. Okay. And sir, for INR5,000 crores, you will spend INR1,000 crores this year.
Mr. Kamal Singal
Correct. To create INR5,000 crores, this year total investment cycle is supposed to be INR1,000 odd crores.
Ritwik Sheth
Okay. So if we just look last two years, we have acquired approximately INR8,500 crores and we have spent close to INR750 crore or INR800 crores approximately in these two years for land payments and approvals related. So sir, does this mean that we are going to acquire more like ownership projects rather than asset-light or how do we look at this?
Mr. Kamal Singal
So absolutely right. We have been very heavy, extraordinarily heavy on JDs in proportion last couple of years. That has been the strength and we’ll continue to build-on that. But having said that, there’ll be at least two moderation in our portfolio bulge. One, as we just discussed that we’ll be a little more heavy on vertical as compared to what we were in proportion. The other obviously will be slightly more outright purchased projects in proportion to the deals that we’ve been doing in the past. So that is something which will happen and hence these ratios.
But having said that, the combination of JD and JV put together with outright purchases, INR1,000 crore should ideally be giving us little more than INR5,000 crores. Any combination of that should be more like a INR6,000 crore, INR7,000 crores. On a conservative side, we are saying that we are keeping a target of around INR5,000 crores with INR1,000 crore total deployment, which includes outright and JDs.
Ritwik Sheth
Got it, got it. And so what would be like the sources of funds, a, we have internal accruals, B, we have some room on leverage going up. So if you can just give us bucket why earlier you mentioned we have sources of funds from internal accruals or increasing debt and then the fundraise potential also. So if you could just touch upon that as well.
Mr. Kamal Singal
So I think broadly, I mean, we’ll still figure this out and tell you exact numbers as we go-ahead. But INR1,000 crores should broadly be coming from three sources, equally distributed, give-and-take, INR25 crore INR30 crores here and there between the internal accruals, the debt to be raised and the fresh equity. So equity could be a QIP pref for whatever, but all these three should be broadly equivalent plus-minus INR50 — I mean INR25 crore INR50 crores here and there. But these are the three sources broadly contributing equally in the coming year, adding up to INR1,000 crores.
Ritwik Sheth
Got it. Got it. And sir, would you like to give any guidance on the OCF for FY ’26, this year we have dipped slightly, but still healthy at, 25% 28% on pre-sales. So would you like to give some guidance?
Mr. Kamal Singal
So we’ve been — of course, we have been very, very healthy last couple of years, three years, maybe a little bit of a too much happening on that account in the last couple of years. But it’s going to remain very, very healthy and we are hoping that we should once again be kind of aiming INR300 crores INR350-odd crore of free-cash flow this year.
Ritwik Sheth
Okay. Okay, sir. Okay, sir. Thank you and all the best.
Mr. Kamal Singal
Thank you.
Operator
Thank you. To ask questions, please press char and one now. Participants who wish you ask questions may please press charge and when at this time. The next question is from the line of Amit from Hawa. Please go-ahead.
Amit Agicha
Good afternoon, sir. Am I audible?
Mr. Kamal Singal
Yes. Yes, please.
Amit Agicha
Thank you for the opportunity and sir. Congratulations for good set of numbers. So did I hear this correct? Like you’re saying INR1,000 odd crores will be the capex, which would be like part internal part debt and part equity, which will give us a target revenue of INR5,000 crores?
Mr. Kamal Singal
Yeah, correct.
Amit Agicha
Yes. So this is a target for which year how many years?
Mr. Kamal Singal
So it is this year. So in next three to four quarters, we are hoping to deploy INR1,000 crore additional — in new projects.
Amit Agicha
Okay, okay. Okay. And sir, besides that, like can you elaborate the pricing power and average selling price trends in top-selling projects?
Mr. Kamal Singal
So generally, if you’re asking specifically about our price vis-a-vis the competition next door, or so it obviously we have not yet tested ourselves in the market of Mumbai, but we were sure with the kind of experience we have and kind of product that we are trying to bring in Mumbai, Mumbai has to — has to get exposed to something very different when it comes to weekend homes. There are great products and projects available already there, but the kind of size and scale that it can absorb in our understanding has not been served.
And hence this will be something that will be very interesting to experience and take forward. There are no benchmarks of tons available for us at least. Ahmedabad, we clearly have an edge on pricing for anybody — I think we clearly lead the market when it comes to pricing the horizonal projects. We clearly have a lead of around 20% 25% premium that we charge for every project that we would have launched in the same micro-market. Bangalore, we are very — we’re in the top bracket. So a branded player, if this — if a branded player like any of these four, five big ones that we are talking about is at 100, we’ll obviously be 95 to 100, while the local ones could be something like 80. So if branded guys are commanding premium to the extent of 20% 25%, maybe we will be just about there or a couple of percentage points here and there.
That is where we are on the vertical ones. On horizontal, on a net-net realization basis, I think we are up there with the top quartil — I’m not quite rather top-five developers who would be doing horizontal in Bangalore. So we are up there. There is no discount. If the locals are supposed to be 70, these branded guys are 100 and we’ll be 100. That’s how it happens in horizontrill in Bangalore.
Amit Agicha
And sir, besides that, sir, our land acquisition costs rising in-markets like Bangalore?
Mr. Kamal Singal
So what exactly is the question? Land pricing as compared to
Amit Agicha
Acquisition cost like that you must be acquiring land and like or you are going to only redevelopment side?
Mr. Kamal Singal
Yeah. So land acquisition cost, land acquisition is one of the strengths that is our or the most important strategic pillar, our land sourcing in industry possibly is most efficient. This is one fact that we always boast about and this is acknowledged by industry in general. That is why our margins are much more consistent and healthier as compared to most of our peers of our cost of construction and sourcing of land.
Obviously, we price as per market. There, when it comes to the local players, obviously, we are much higher, but that’s not something that we should be focusing on. We are up there when it comes to pricing vis-a-vis the branded competition that we talk about in the similar ranges, et-cetera. But the real profitability and the real trigger of cash flows and returns, et-cetera, comes from the fact that our land sourcing has been very, very efficient and our cost of development has been quite comparative.
But I think significant portion of the margins or the extra margin that we are able to earn historically last 10 years has come from comparatively more efficient sourcing of land. You could see that in terms of the kind of margins we are — we are able to generate from projects like Great Lands or Orchards or now the park or are coming to Ahmedabad kind of margin that we would have earned at diversity or fruits of life or rhythm of life or up lens for that matter, high-growth, et-cetera.
I think land sourcing is one strength, which helps us in achieving what we’ve been able to achieve in terms of profitability.
Amit Agicha
Thank you, sir. If I can ask one more question, like how do you assess the contribution of plotted developments versus vertical housing in future launches?
Mr. Kamal Singal
So Horiental has gained significant traction post COVID. And I think, in fact, we as a company have a very strong belief that this trend is here to stay. People know the value of having a weakened home, having a home which is a little away both as first home and second-home for cities who have battery infrastructure or having a home, which is first home, but half-an-hour away from the city is also feasible. Ahmedabad survives and thrives on that where the first homes are 15 kilometers extra, maybe 20 kilometers extra, but that just means 20, 30 minutes extra over and above what they would have otherwise been spending, reaching offices, etc. So this trend is clearly here to stay. The proportions are reasonable today. But in our understanding, this market has already become very reasonable in size and it’s only going to be growing from here. And we clearly have a lead-in terms of capabilities to develop, design and deliver these kind of projects on a very, very large-scale. We’ve got many projects which are 100, 200, 300, 400, even 500 acres now, and we’ve been delivering these consistently., it’s a very exciting ever-growing segment from here onwards.
Amit Agicha
Thank you for the elaborate answer, sir, and all the best for the future.
Mr. Kamal Singal
Thank you.
Operator
Thank you. The next question is from the line of Ronald from ICICI Securities. Please go-ahead.
Ronald Siyoni
Good afternoon, sir, and thank you for the opportunity. Congratulations on healthy sales growth. One of my first question, sir would be on the Bangalore for projects which you had mentioned. So they total to around INR1,500 crores. So is there any F1 you know or are you planning to acquire and launch during the FY ’26, which totals to around INR2,000 crore.
Mr. Kamal Singal
So Bangalore, even the current broadly done up things are adding to INR2,000 crores-odd barring couple of them. So
Ronald Siyoni
I think banner ton IDPL is around INR1,000 crores, INR400 crore and INR600 crores.
Mr. Kamal Singal
So around INR1,200 crores are coming from what is already signed and done, which are under approvals and around INR700 crores INR800 crores are coming from new project in the pipeline we are creating right now. So all-in all, yes, this will be INR2,000 in total put together between what is already done and what is about to happen.
Ronald Siyoni
Okay. You mean sustenance plus new.
Mr. Kamal Singal
So these are fee launches. These are fresh launches we are saying. This is a value of fresh launches worth INR2,000 crores. This is not about fresh sales. This is about what inventory we are making available for the team to sell?
Ronald Siyoni
And just on the timeline, like as you had previously mentioned that Benarda may slip to-Q1. So are we on-track with respect to that getting launched in Q1? And if possible you can give some timeline for other launches, maybe say quarter two or H2 of this year.
Mr. Kamal Singal
So all-in all, this is a broad number., we are — we have almost reached the very last sages of our approvals. So it should happen this quarter or maybe latest next quarter, hitting the market, etc. But if you want to really go through more details of quarter-wise breakup of all these launches between Bangalore and Gujarat, I will encourage you to get-in touch with Vikram post this call and he’ll take you through a little more granulinity of how and when everything is expected to happen.
Ronald Siyoni
Okay, sir. And sir, lastly on the redevelopment phase, like you would be venturing this. So generally, we see that post acquiring there is always a six to nine months delay with respect to getting approvals and getting it launched. So are we confident enough that the same would get launched here in FY ’26 or it may get spilled on? So — and another thing is what kind of IRR sort of margins you are expecting from redevelopment project.
Mr. Kamal Singal
So we’ll come back with very specific details very soon on this project that we are hoping to close or the project that we are doing will not have some significant approval milestones like MOEF, et-cetera, the way it is sized and hence, the ambiguities around timelines are a little less, plus the fact that we know that it is a firm pipeline and quite a few things have already happened on this project, et-cetera, we are still not formally putting this into our portfolio because we want to make sure that certain very, very definitive steps must be completed beforehand. And then only we add this project into our portfolio.
That fact itself is taking care of some of the major ambities, which are generally associated with a project of redevelopment type. And hence, once those are achieved and we say, okay, now this project is under our portfolio, ambiguities from there onwards should be quite manageable and less significant. To that extent, we are pretty confident that this should be launched this year.
Ronald Siyoni
Sir, when do you expect to come to-market for equity raise, is it during H2 or maybe later.
Mr. Kamal Singal
So we’ve got a enabling resolution, which is one year. I think that one year is getting completed by September thereabouts. And obviously, we would prefer that we complete this process before that.
Ronald Siyoni
Thank you very much, sir, and best of you.
Mr. Kamal Singal
Thank you. Thanks a lot.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. The next question is from the line of Piyush Arora from. Please go-ahead.
Piyush Arora
Hi, sir. I actually joined the call later. I just have two questions. The first question is, what will be our guidance for bookings for FY ’26 because I think this year we have done well and last five years we’ve been doing well? And second question is, what’s the broader outlook on the industry demand because we’ve been seeing a discretionary consumption is slowing down. So what do you think about the discretionary demand as such for the real-estate sector?
Mr. Kamal Singal
Sure. So on the booking, possibly you missed the earlier part of the conversation. We have done little less than what you would have done otherwise because of our delays in couple of Bangalore launches on account of approval delays. So that has meant that we’ve just grown by 15-odd percent. At least as a minimum, we should have grown by 25% to 30%. And if these two launches were done as per what the plan was, we would have easily achieved and more than achieved the numbers.
But if you were to just add, this pent-up has to happen now in this year and obviously, this year’s independent growth also has to come because we have been adding the pipeline accordingly last couple of years and that result or the effect of all that has to come into this year together. So I think last year and this year put together, we should grow at a CAGR of 25% in any case. And accordingly, if last year was INR1,100 odd crores of fresh sales. Put together these two years should be around 25% plus 25% over 25% is something that we are hoping that we’ll be able to achieve this year.
Piyush Arora
Right. And sir, on our second question?
Mr. Kamal Singal
Yeah. I mean, demand generally is pretty okay. You might hear some of the stories of little bit of a slowdown happening in some micro markets, et-cetera. I think I think this is something on a broader level. At a macro-level, things are pretty solid and decent. You need to be a little wiser when you choose your micro markets. So there is — there is some degree of variability between one macro market to another.
And if you are — if you are right on choosing your market, et-cetera and the size of project, et-cetera, I think it’s pretty healthier situation out there. Bangalore is doing as good as it used to be. In fact, last quarter itself, we launched one of these projects. The prices are very different from what we would have otherwise done couple of years back, one year back. Despite all that, it has seen some amazing traction. So demand continues to be very, very strong. But yeah, you need to be wise about the locations you choose, the product you choose, the pricing you do, etc., etc. So it’s not that everything is going to be working out fine irrespective. You need to be good at it. And for guys who know and for the guys who can choose Wisely, I think there is a huge opportunity still waiting to be tapped for developers in general.
Piyush Arora
Okay. Thank you, sir, wishing you all the best by FY ’26.
Mr. Kamal Singal
Thank you.
Operator
Thank you. We take our last question from the line of Sheth from Financial. Please go-ahead.
Ritwik Sheth
Yeah. Sir. Thank you for the follow-up. Sir, how is the pipeline in MMR looking? And are we looking to add a vertical or will add another horizontal in the current year?
Mr. Kamal Singal
Yeah. So I mean, we — when it comes to MMR, the strategy is very clear. We’ll work on two major pillars. One is horizontal weekend homes, which we’ve already announced and maybe we’ll add one or two more projects in the coming months. The other is the society redevelopment. We see very clear preference and opportunity of in areas price between INR30,000 to INR40,000 thereabouts where there is very strong Gujarat Connect. There the brand resonance of the Connect and the trust factor immediately comes into play. That’s why we’ve been able to almost close our first society redevelopment. Those kind of projects obviously will be vertical.
To that extent, in the overall portfolio, it will be a very healthy combination of both vertical and horizontal, vertical being primarily driven by society redevelopment. But having said, we are also open to greenfield. So it’s not that we are not — I’m sorry, evaluating Vertical ones here. All the three are equally important, but clearly, the focus has been society redevelopment, which is vertical and horizontal weekend homes that we have always been doing in all other cities that we operate in as a strategy.
Ritwik Sheth
Okay. And sir, my last Question is regarding market-share in Ahmedabad and Bangalore. It is currently very miniscule for our size. So what is the aspiration in terms of market-share over the next three to five years in both these geographies since we have been in these cities — in these cities since now five years.
Mr. Kamal Singal
We — I mean, internally, we look more towards what is the growth that we should be able to achieve, absorb and be capable of. I think today the constraint is not market, the constraint is not demand. The constraint is also the managerial bandwidth and the capabilities. We think that a very healthy growth rate of around 30%, 40%, et-cetera, et-cetera is something which is — which we should be very careful about. It’s about building the organization one-step at a time, not get overheated or underheated. Conservatism is good. At the same time, it can’t be overdone.
Our too much of aggression might not as well be a great idea. And hence, we put ourselves in a situation where we say that let’s see how much is something that we want to ramp-up and what is the best and optimum way to grow to what extent, etc. So not in terms of proportion of market, percentage of market at this point. We are a very, very small component of overall market as we speak. So today, it’s important to focus on how much growth we should be targeting. And after we achieve critical mass, obviously, from that downwards, it’s important to get into market-share, etc.
But having said, within horizontal, for example, in the city of, we are the biggest, still not possibly relevant to count in terms of percentage of market, but we clearly lead the market with a big margin and we are the largest in that sense.
Ritwik Sheth
Okay. Okay, sir. Thank you.
Mr. Kamal Singal
Thank you. Thank you.
Operator
Thank you. As this was the last question, I would now like to hand the conference over to the management for closing comments.
Mr. Kamal Singal
Thank you. Thank you everyone for participating in this earning call of Hermin Smart Spaces. I hope we have 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 will connect with you offline and clarify and give further information as may be required. Looking-forward to an interaction with you all-in the coming quarters. Thank you very much for your time. Thanks a lot.
Operator
Thank you. On behalf of Irvind Smart Spaces, that concludes this conference. Thank you for joining us. And you may now disconnect your lines