Ashiana Housing Limited (NSE: ASHIANA) Q4 2025 Earnings Call dated Jun. 02, 2025
Corporate Participants:
Unidentified Speaker
Varun Gupta — Whole Time Director
Vikash Dugar — Chief Financial Officer
Analysts:
Unidentified Participant
Himanshu Upadhyay — Analyst
Anubhav Goyal — Analyst
Rohit — Analyst
Rahul Jain — Analyst
Presentation:
operator
Foreign.
operator
Ladies and gentlemen, good day and welcome to the Q4FY25 Ashiana Housing Limited 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 assistant during the conference call, please signal an operator by pressing Star then zero on attached to a phone. Please note that this conference has been recorded. I now hand the conference over to Mr. Kannav Khanna from ENY. Thank you. And over to you sir.
Unidentified Speaker
Thanks and welcome everyone. And thanks for joining the Q4 and FY25 earnings call for Ashiana Housing Limited. The results and the investor presentation has been mailed to you and it is also available on the Stock exchange. In case you have not received the same, kindly write to us. We’ll be happy to send it over to take us through the results for this quarter and full year and answer to all your queries. We have with us Mr. Varun Gupta, whole time director and Mr. Vikas Dukkhar, CFO. We will start the call with a brief overview of the company’s performance of the quarter and then follow it up with Q and A.
I would like to remind you that everything said on this call that reflects an outlook for the future which may be construed as a forward looking statement must be viewed in conjunction with the uncertainties and risks that they face. These uncertainties and risks are included but not limited to what we have mentioned in the prospectus filed with SEBI and subsequent annual reports which you find on our website. With that being said, now I hand over the call to Mr. Duggar. Over to you sir.
Vikash Dugar — Chief Financial Officer
Thank you, Kanav. Good afternoon everyone. I hope you and your loved ones are keeping well. I welcome you all to our Q4 and full year FY25 earnings call and thank you for taking the time out to join us today. Financial year 2025 has been a year of steady operational progress for Asana marked by consistent sales performance and strong cash flow generation. Despite challenges on the delivery front, towards the end of the year we achieved value of area booked of Rupees 1936.75 crores for the year up 7.7% from FY24s 1798.22 crores. This growth was driven primarily by improved realization per square foot supported by a favorable project mix and broader price improvement across key locations.
We continue to expand our portfolio across regions with launches during the year including Ashiana Amara, phase 4 and 5 in Gurugram, Ashiana Malar phase 3 in Pune, Asana Advik phase 2 in Bhiwadi, Asana Ekansh phase 4 and Nitara phase 2 and 3 in Jaipur, Ashana Amod phase 2 in Pune, Asana Sorang phase 1 in Chennai, and phase 2 of 144 in Jaipur. On the construction front, equivalent area constructed for FY25 was 20.12 lakh square foot broadly in line with 20.68 lakh square feet in FY24. However, total revenue for FY25 came in at Rs. 557.45 crores down from 966.52 crores last year.
This was due to delays in the delivery of projects such as Advik Phase 1, Anmol Phase 2 and Shubham 4B which were originally scheduled for FY25 but now have shifted to FY26. Path for FY25 stood at 18.24 crores compared to 83.4 crores in FY24. The decline was primarily due to lower revenue driven by lower than expected deliveries. The company posted its highest ever pre tax operating cash flow of 429.9 crores during the year. A testament to the underlying strength of our sales and collection engine. Our credit rating for bank facilities were also reaffirmed at ICRA A stable during the year in Q4 specifically we recorded 574.72 crores of sale value vis A vis Q3 is 5 454.16 crores 26.5 year on year increase 26.5% year on year increase.
Launches in Q4 included Asana Amara phase 5 in Gurugram and Nitara phases 2 and 3 in Jaipur. We also initiated handovers for asana Amanthan Phase 3 in Jaipur. With this I conclude my opening remarks and look forward to your questions and suggestions.
Questions and Answers:
operator
Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may Press the R N1 on the touchdown telephone. If you wish to remove yourself from question Q, you may press star and two participants are requested to use answers while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. First question is from the line of Himanshu Upadhya from Bugle Doc pms. Please go ahead.
Himanshu Upadhyay
Yeah. Hi. Good afternoon. My first question was in case of asana Nitara phase one we sold till Q3FY24 only 42,000 square feet. But in phase two and three, we sold nearly 4 lakh square feet. It’s 90% of launch. So what led to this great performance in that project? And it will be helpful to understand what has happened here.
Vikash Dugar
Good afternoon Himanshu. So Nitara, phase two and three are apartments and phase one were villas. Okay, so phase one villas were expected to be a little slower anyways because the ticket size is much bigger. You know, size of the units are bigger per square foot. Pricing is also higher because of it being villas. So in apartments we got a lot more volumes. Because of that we launched apartments this time.
Himanshu Upadhyay
Okay. And one more thing. On the Gurgaon, we initially launched ashand Amara at 6,000 per square feet and currently it is at 15,000 square feet. In phase 5, how different is the specifications currently versus in the initial phase 1 and 2?
Vikash Dugar
Very different internally Manchu, the phase 5 specifications like the doors are different, the tiles are different. There is an added kitchen cabinet from phase two onwards. Phase one didn’t have a kitchen cabinet. Phase five also three, four and five have different kinds of overall specifications as compared to phase one and two.
Himanshu Upadhyay
Why I was asking this question was because we have a significant amount of inventory to selling phase four and five and phase one and two will start getting completion in next year. Can it be a case that people who are getting deliveries in next one year start competing with us? Because the realizations have increased quite significantly. I think for people who have bought in 1 and 2 and 5 there is remarkable difference and hence the question of competition or people trying to sell will not be such a big issue when we are selling phase four and five.
Vikash Dugar
So will there be competition? There will be some competition. Because you know, the project is the same, the unit layouts are the same, but yes, the specifications are different. So there will be some differentiation involved between what we are providing in phase five and four as compared to what’s being provided in phase one and okay.
Himanshu Upadhyay
But competition can be there.
Vikash Dugar
Yes, the retail competition could be there, but the kind of supply squeeze that is there in the Gurgaon market in delivered units, I don’t see too much of a challenge. Because people who are looking to buy then ready to move in homes are very different from people who are willing to go. And Gurgaon continues to be squeezed on the supply side in ready to move in homes either if you want to rent or if you want to buy. So I think our timing should be fortuitous overall.
Himanshu Upadhyay
And one last thing, progress on Asana Aroham in Gurgaon, where are we in terms of launch?
Vikash Dugar
So we have environmental clearance approval received in building plan approvals. Unfortunately, we had to go back to the drawing board in terms of drawings because a new regulation came in in December. So we were all ready to file for building plan approvals. And then new regulations came in in December and we had to go back and change some of our applications. So we still sort of, I think hopefully we should get approvals in the next quarter and launch in the third quarter of this year.
Himanshu Upadhyay
Okay. Okay, thanks. That’s all from us.
Vikash Dugar
Thank you, Himachu.
operator
Thank you. A reminder to all the participants, you May Press are n 1 to ask the question. A reminder to all the participants, you may press star and one to ask questions. Participants may press star and one to ask question. The next question is from the line of Ravi Rohit from Security Investment Management. Please go ahead.
Unidentified Participant
Yeah, hi. Thanks for taking my questions. Varun, couple of things, you know, can you just share how’s the demand been, you know, in the senior living space and how are we progressing geographically for, for our senior living space? And then second is, you know, now that lot of real estate markets in India have kind of become a little, I don’t know whether they are like at least Gurgaon. I think you also called out in the previous call. There’s a lot of heating up of the markets there. So land sales or land transactions themselves. Have become very expensive. So if you could just kind of give us, you know, general flavor of each of our major home markets and how are, you know how our land deals happening there from a future pipeline point of view. And the first question which is on the senior living space, you know, if you could just share something.
Varun Gupta
So last year I think in senior living sales value we clocked around a 25% growth. I think we, we went to closer to 375, 360 odd crores of pre sales in senior living last year and the year before that was 300 and which was 100 about five years prior to that and we had traveled and this year we are looking to cross 450 crores of pre sales and senior living. So we expect senior living to become a much bigger part of the business overall as we go into the future. It is the 33% of our total saleable area pipe at this moment of time.
Our deals also when I come to that second piece also the large focus of the company in terms of deals is also on the senior living piece there. So you know we have announced three transactions in the recent times where we have done agreements or mous where there are condition presidents pending of which two are in senior living, one in Panvel and one in Bangalore. And we are looking to do more in senior living. I think what happened last year was two things. One, the Pasha Amod project in Talegaon, we have been able to ramp up prices significantly.
So the second phase of the project is north of 8,000 rupees a square foot in price points. And we were able to launch Ashana Swarang in in Chennai. And Swarang is the second project, third project for us in Chennai and senior living. But first time when we have two simultaneous projects open for sale in any city and we’ve been able to clock more than 9,000 rupees a square foot in Swarang as price points. And that has opened up a different sort of confidence for us that we can get a consumer base which is willing to pay more to come for senior living.
And I would say for the next few years senior living is where we will deploy significant part of the incremental capital that we generate and incremental cash flow flows that we have. I think it is going to be an important, important piece. And what we are looking to do is be concentrated in ncr, Chennai, Mumbai, Pune and Bangalore sort of these kind of markets and try and do multiple senior living products in these markets in different locations, different price points and different formats of let’s say high rises, villas, G4 and get multiple projects operating in these cities.
I think that’s the intent of the organization going forward and that will be sort of a key in scaling up senior living as you go forward and coming back second in terms of home markets. So let’s say Jamshedkur, Jaipur and MCR being home markets. Jamshedpur, we have a project to launch in the pipe and we are looking for one more. Jamshedpur is the same as before, one project every couple of years kind of a market. We keep looking at it, do JVs similar terms generally in the mid-20s kind of range of revenue share and you know we’ll continue to do that.
I think that it has limited appetite in terms of Jaipur and ncr. I find the land prices elevated. I find it difficult to make sense on the current apartment prices for the land prices. So we are looking for transactions, we are looking for ways where locations where we can create value which are a little bit more untapped opportunities or come up with products which are different. Fortunately in Gurgaon we have a project to launch in Jaipur. We have signed up an agreement with Mahindra World City there and we are waiting for them to put together some.
Satisfy some condition precedents for us to be able to get there. And I think that’s, that’s the direction we are sort of going. And we’re looking for parcels in Biwari as well. But land prices are very like. Biwari is a case in point where no transactions have happened. No other developer is able to sell stock at a price which covers even construction cost. But land prices have keep going up.
Varun Gupta
Correct.
Unidentified Participant
Correct. So how does it.
Varun Gupta
Yeah, sorry, please finish.
Unidentified Participant
No, go ahead please. So how does this kind of, you know, give us a sense of the future pipeline?
Varun Gupta
Right.
Unidentified Participant
So we have, we are fairly well covered and we’ve done well in the last three years. Right. Deliveries of which will happen in the next three to four year period.
Varun Gupta
Right.
Unidentified Participant
But in terms of, you know, pipeline or future pipeline, building future pipeline and, and maintaining a certain amount of minimum level of pre sales every year, is there some such kind of. Is it the right way of looking at it? Can a real estate company realistically sustain a certain amount of minimum pre sales over a longer period of time or. Of course we’ve seen cycles in the past and we’ve seen significant drawdown in pre sales also over a period of time. So how are we kind of, you know, working on that or is there any visibility that we have over the next three to four years that we will be able to, you know, kind of sustain certain amount of pre sales every year?
Varun Gupta
Ravi, Very difficult question philosophically to say. Yeah. So I, we have a couple of views, right. One of the things is if we start chasing pre sales. No, the worry comes along is you misallocate capital during the upcycle. Right. So any business which is cyclical, this challenge comes along and you like wondering what to do. So for us the key piece has been can we look for things which are less cyclical in nature and therefore one piece comes along is senior living. Okay. So the idea is to invest more and more into senior living, make that a larger number.
Okay. So instead of let’s say sustaining a minimum level of pre sales, the question is, can we sustain a minimum level of gross profits on an absolute level which will take care of our overheads and throw off a minimum return on equity.
Correct. And what periods can you ride without pre sales and still make return on equity because your previous pre sales are feeding into the business is still. And how much time can you have? Fortunately, I think we’ve covered till about FY30. Okay.
So we have a five year piece which is covered from a let’s say delivery perspective. And we are covered for about two to three years from a pre sales perspective. But as long as a minimum threshold of return on equity gets covered I will be okay with doing a little lower pre sales in a year.
And to me getting some. Getting the senior living. So rather than worrying about home markets, if you are able to get senior living to a scale where it starts doing thousand crores plus of pre sales a year, I think that will provide a lot of stability to the business. And I think that’s the. That’s the direction we are going in. And so hopefully we will have deal announcements for senior living in the near future coming in which will sort of give. Give you more comfort. We are working hard on doing senior living transactions in all these markets.
Unidentified Participant
Okay.
Varun Gupta
Okay.
Unidentified Participant
Got it.
Varun Gupta
Okay.
Unidentified Participant
Great. Varun. Thanks a lot and all the best. I’ll get back in the queue.
Varun Gupta
Thank you, Ravi. Thank you.
operator
Thank you. The next question is from the line of Anubhav Goyal from Cosma Ventures place. Please go ahead.
Anubhav Goyal
Hi sir. So I just wanted an update. You mentioned the Mahindra World City in Jaipur. I just wanted an update on the two land deals we did back in November. The one, the 11 lakh square feet one and the 20 lakh square feet one with Mahindra World City.
Varun Gupta
So we have done three transactions which are under CP’s. Bangalore, Panvel and Mahindaval City in Jaipur. All three. Right now we are awaiting landlords to fulfill certain conditions. You know I get updates from them. Things are moving. But you know none of these are done till they’re done. Got it. But they’re not done till later.
Anubhav Goyal
Got it, sir. So this includes the Bangalore parcel you mentioned last quarter, right?
Varun Gupta
Yes. In Bangalore also we have all commercial terms are closed. Some financial transaction has also happened. MOUs are done but certain CPs are pending. And even in Panvel what we have done is an agreement to sell. And we are waiting for the landlord to fulfill certain conditions for the transaction to close. Unfortunately one thing in the deck there was a typo that we said it was acquired. It’s been. ATS has been done. We’ll be sending an updated deck. In the last quarter we did an agreement to sell. We are hoping that CPS also there get satisfied relatively quickly and then we can move forward.
Anubhav Goyal
So sir, for all these it might take time. But we expect all of them to close. No hiccups as such.
Varun Gupta
Yes. We are actually working on like drawings and stuff like that on both. So we expect them to close. But I give A caveat. In our business in these kind of situations, nothing is done till it’s done. Okay. I think we should always have that cave.
Anubhav Goyal
Got it sir. Got it sir. And so among your, among your senior living projects I think most are seeing good traction quarter on quarter. I just wanted an update on the advic phase to senior living where it seems to have slowed down this quarter.
Varun Gupta
So ADVIC phase two slowed down a little bit because we were launching building in that as a separate. So we phase two actually from a sales perspective we launched it in two pieces. So it was a little slow in this quarter because we were building up on a pipe for sort of a new, sort of a new building launch within that phase which has happened in the Q1 of this year. You will see better sales reported in that in this quarter.
Anubhav Goyal
Okay sir.
Unidentified Participant
And so you can, can you throw some color on the launches for this year in FY26.
operator
So we’ll have phase launches mostly. So we will have Ashina Aroham’s launch in this as a completely new project. We plan to launch Ashina Amaya in Jamshedpur as well. This year we are working to get Jai Singhpura also launched in Jaipur. So we hope to launch about three projects like that and one part where we we’ll update the deck. Unfortunately we haven’t updated the deck on it. In one of our legacy projects in Jaipur we had about a lakh square foot of salable area stuck in regulatory issues. It was so small that it was not covered.
It’s called Aravalli and we should be launching Ashina Aravali also within this financial year. So that’s that. And we’ll have phase launches. So all of our senior living projects should see phase launches in this year. And we should also launch let’s say a phase in Malhar as well going forward. So that’s what I think we will do this year.
Anubhav Goyal
Got it sir. Got it. And can you mention the saleable area for Aroham which We launch in Q3.
Varun Gupta
Around 11 lakh square foot total. I think we should launch a third of that in the first phase.
Anubhav Goyal
Got it. Got it. And so just my last question is the previous participants also mentioned this. So this year and last year has been very good from a bookings point of view and it will come in the P L with good profitability. But from a former bookings point of view for this year possibly it it will be quite short of 20, 1800. Say that again the bookings number for FY26 it will be like it it will be much lower than the number we have clocked this year. Right.
Varun Gupta
In FY25 we are targeting for 2000 crores internally again for this year.
Anubhav Goyal
Okay, okay, okay.
Varun Gupta
So you know we have like if you look at we have about 1500 crores of unsold stock stock within the launch projects. And we will be launching Roham, we’ll be launching Amaya. So we are looking to get to 2000 crores this year as well.
Anubhav Goyal
So sir, for 26 and 27 we have some visibility for maintaining this 2000 crore bookings number even for next year.
Varun Gupta
I think. So with Aroham coming in in Gurgaon that would create a. That would help have. Yes, the idea is to maintain that basis. Yes.
Anubhav Goyal
Got it sir. Thank you.
Varun Gupta
Thank you so much.
Anubhav Goyal
Thank you. Thank you.
operator
Thank you. I reminded all the participants you may best are in one to ask questions. The next question is from the line of Rohit Palakrishnan from. I thought pms. Please go ahead.
Rohit
Yeah. Hello. Am I audible, sir?
Varun Gupta
Yes.
Rohit
Yeah. Hi. Good afternoon sir. So I joined. Yeah, I just joined the call a bit late so maybe. I don’t know if this question was asked earlier but sir, we had said that between 25 to 30 financial year we probably do close to 11,000 crores or I mean the pre sales will sort of get converted over this period in terms of book revenue. So in that. So if I look at the presentation FY 2726 and sorry 262728 we have about 4000 odd crores of revenue that we think that will get booked. Of course plus minus 1 2/4 here and there that may happen.
But so sir, from that perspective and you just said that another 1500 crore we have.
Varun Gupta
So. In the presentation slide number 15 I think you have like a 6000 crore kind of number which is there of which 4800, 4400 has been sold and the remaining is yet to be inventory. So for the remaining. So this is like halfway mark of that 11,000 crore roughly. So how do you bridge this gap from 5506,000 crores to 11,000 crores. So I mean just wanted to get a sense. Just I wanted to clarify.
We’ll send it. I think there’s a typo that 4364 should be close to 4500 crores which is in the previous slide in slide number 11. Okay. So 4500 is sold. We have another 1500. So that about. That’s about 6000 crores of launched cross phases in Terms of unlaunched phases of existing projects, you have got about 36 lakh square foot. Okay. And let’s say Even at like 6,000 rupees a square foot, that’s about 2,000 crores of sale value. I don’t know exactly where these things will be priced. I’m being a little bit conservative at 6.
My guess is that they would be probably closer to 7. So about maybe around 2500 crores will come in from here. In terms of land available for future development that we plan to launch. I’ll exclude Milakpur even. This is slide 24. Even Panvel is sort of an ATS with conditions, precedents to meet. But there are three land parcels totaling about 25 AD lakh square foot including Aroham Jaisingpura Land and Ashina Amaya in Jamshedpur. These put together will be around another 2000, two and a half thousand crores. So when you put these and with the unlaunched phases you get to about 10 and a half, 11,000 crores.
And my view is that we need to launch all of these within this year and then work hard to make sure we can Deliver this by FY30. Just a little tight on the construction cycle. Construction cycles are generally 5 years plus for projects of 10 lakh square foot. We are looking to see if we can crunch it down to four and a half and sort of making and putting it out there here. So we also feel a little bit of pressure to get them in that timeline in and that’s that. And we would be hopeful we have deals in the pipe.
If they close within this year and we launch to launch them in FY27 then we will have some of their phases hopefully coming up for delivery in FY30 to create that some buffer room into the, into the numbers that we are looking at here. So that’s the sort of, that’s the place we are coming from in terms of looking at that.
Rohit
So sir, from our point of view, the number that, I mean the critical point is that whether we are able to have the launches of these three projects in this financial year. Right. Because if we delay that then I think everything then gets sort of cascaded down in terms of us achieving that number, right?
Varun Gupta
Yes. If we delay this, it will cascade. It is critical that we launch them within this year. Absolutely. And in terms of us launching. So what is it? Sorry again, maybe this was asked earlier. I’m sorry, but these three projects, what is the tentative timeline that you’re thinking? I mean which quarter or Q3 and. Amaya in Q3 and you learned Jason Pura in Q4 of this year.
operator
Okay. So again launches will be moved back ended again this time.
Varun Gupta
Yes.
Rohit
Okay, understood. And sir, from a profitability point of view like again like you had mentioned in a few calls before that cumulative profits of over 2000 crores is what you expect on this 11,000 crores. So while a lot of the other projects which we have done already, you could know, I mean from your current sales and some of the book sales and whatever is happening from a sell through point of view. So you know fairly the profitability for these three. What is your. I mean you’ve not even launched so. But, but I wanted to just get your sense like at 6,000 rupees or 6,500, whatever price that you’re underwriting will we be able to get those 15, 20% kind of net margins at an aggregate level?
Varun Gupta
Yeah. The deals have been done earlier, particularly Asana Aroham. Of all these three, Aroham has the biggest value because we did the deal two years ago at very different price points as compared to the current market pricing there. And Aroham should generate a chunk of those profits because of the favorable land value terms that we were able to do. And we have an idea of the sales pricing because we are selling Amara in the similar micro market. Right. It’s not very different market. So we are able to put those estimates in. I think that’s where we are coming from.
Again Maya and Jamshedpur and Jaisingpura, these are micro markets where we are already operating with projects. So sale price expectations are built. Because we know those micro markets, they are not not only the city, the micro markets are also not completely new to us.
Rohit
Got it. And Amaya again. So like we would be selling. Amaya would be a smaller project.
Varun Gupta
Right.
Rohit
Which is in dakshit. Probably about 4,5 lakh square feet.
Varun Gupta
Yeah, it’s about 4,4,4 or 4 and a half lakh square foot.
Rohit
Yeah, got it. And. And Jing Pura would be about a million square feet, right?
Varun Gupta
Yeah, but it’s about 1.1. Yeah.
Rohit
Okay. And okay, got it. And so all these three. So. So Jingpura would be across how many places, sir, that will launch J Simpular.
Varun Gupta
Should be over four phases.
Rohit
Four phases. Okay. And all four. Okay, got it. So for those four phases you should sort of get launched in FY26 and 27. Is that how one should think about it?
Varun Gupta
Yes, that’s what, that’s how you should think about it. Maybe one phase going to 28. But that’s what we are looking at.
Rohit
Understood. Got it. And so in terms of the. In the last conference call I think we had this land. We have been going through this deal in acquiring a land in Kanakpura road in Bangalore if my memory serves right. So any update on that?
Varun Gupta
We are waiting for landowners to fulfill conditions precedent on the same road.
Rohit
Okay. Okay. Some regulatory approvals they need to get on the land stage which is with the landowner. We’re just waiting for them to finish that. So probably by end of Q2 is that a fair expectation or don’t have a timeline here?
Varun Gupta
End of Q2 is a fair expectation.
Rohit
Got it. And in this Panvel, this thing that you announced sometime back. So this is 7 lakh square feet. So when do you sort of start moving on this project in terms of launch etc how long will that take?
Varun Gupta
This also was we. We have again this is an agreement that is done with certain CPS for the landlord to fulfill this as well. Yeah. I’m hoping that this year.
Rohit
And these both are outright. Sorry, this is an outright land purchase.
Varun Gupta
Or a GDP is an outright transaction and Bangalore is a development agreement.
Rohit
Okay, got it. And one more question I had. Sorry for FY26 from this year. Some of the sales I think got pushed out to. I think you said that from a delivery point of view this year especially the second half was a bit slow. So you. Some of it would get done transferred to Q. I mean to FY26. So what is the top line and broad profitability that you are looking at for FY26? I’m sorry, if you’ve checked this FY26.
Varun Gupta
The top line would be around. So there was one totaling error in the sheet. We share it. We would expect around 1200 crores of top line this year. We haven’t done the profitability math yet so I don’t have the profit profitability numbers on us.
Rohit
Okay. Okay.
Varun Gupta
It will be the last year of low margin on a full year basis. To us I think margins will still be lower because we it will be the last year of legacy project getting delivered with higher land costs. Except for Malhar which will continue but will be a very small fraction this year. We will have not, not the margins will. It’s the 27 and 28. When we see margins significantly improve 26 we will have quarters with good margins but on a full year basis margins is not going to be very very good yet because of the legacy projects particularly Anmol, Shubham and Malhar which are not the Best of margins over.
Rohit
Okay, got it. So your target of ROE of about 15% plus on a reported basis. Do you think FY26 you will be able to cross that or that.
Varun Gupta
I would expect. So we need to crunch the numbers. Yeah. So economic basis we have crossed. We are not worried on an economic basis now we are likely sooner or later they’ll come show up in the reported numbers. Right, but we need to crunch the numbers to exactly know. But I would expect, I would expect.
Rohit
Sure, sure, sure. Thank you, sir. I think this is a crucial year. So all the very best for you and your team. Thank you.
Varun Gupta
Thank you, Rohit. It is an important AIs.
Rohit
Thank you.
Varun Gupta
Thank you so much.
operator
Thank you. A reminder to all the participants. You may press star and run to ask questions. The next question is from the line of Anubhav Goyal from Cosmaventures. Please go ahead.
Anubhav Goyal
So just wanted some more color on Amara Phase 5. I think we have done about 23% bookings. So you feel this will, this will now take some time to ramp up or maybe we can reach about 50, 60% in a few quarters.
Varun Gupta
We should be able to reach 50, 60% in these few quarters. Ideally our benchmark for launch is at 20%. That becomes a good number for us to have across that. And monthly sales seem to be good. So I don’t see a challenge in monthly sales bookings.
Anubhav Goyal
Okay. And so on senior living as a whole, are we now seeing more players entering or do you feel, you know, we can still hold on to our niche for some more time?
Varun Gupta
So senior living people are entering. Yeah, but nobody is making the commitment to senior living in the way we have done yet. The scale of our projects, the quality of our projects, the kind of activities we do, the kind of lifestyle we are able to bring to the table because, you know, just, because it was surely just bigger projects, you know, and that is because we have, we have made a commitment to it. So at this moment of time, the large size projects I only see from Antara in and that too in ncr, they haven’t launched elsewhere.
So right now we do continue to see that we will be able to scale the business at a bigger piece because we have made a different kind of commitment to it.
Anubhav Goyal
Right, right. And sir, the visibility on land deals say versus three months back, six months back, do you feel it’s still very tough or maybe we can expect some major deals this year.
Varun Gupta
You can expect deals particularly in the senior living space. This year we see a lot more possibilities in the senior living space. This year. So hopefully we’ll announce more transactions within the senior living space.
Anubhav Goyal
Okay. Okay. And so just, just last question. I just, I just wanted this on the delays in delivery. You know, since we are, we are heavily focused on profitability. Is it, is it, is it a sort of an internal issue or you feel it. It’s more normal. The delays in deliveries. We see quarter on quarter.
Varun Gupta
So two things. Quarter on quarter movement in deliveries is normal. Okay. It’s very difficult to be very quarterly precise because when we go for deliveries we do have to get approvals. So like in Gurgaon, even though we were ready from a consideration instruction perspective by end of last year, our occupancy certificate only came in in first week of April. Now if it had come in by 25 March, it would have gotten done in March itself. But if it came in in the first two weeks of April it goes to that situation. And then so some of so quarter on quarter delays are.
Definitely has some external input involved but I would be wrong to completely ascribe it to external pieces. There are a lot of things which is within our control and the thing we are looking to do within the company is make the commitment to meet the annual numbers. We are anyways are not a quarter on quarter business. So I am okay with things slipping from one quarter to the other. What we are not okay with is things slipping from one year to the other. And therefore where we need a little bit more see how do we buffer in and make sure it’s the Q4 schedule of deliveries that worry me and bother me a little bit bit from that perspective that we need to get them, get them in.
But what we’re looking to do is create internal tension that you know, you know, external environment may something might happen. What do we do to figure it out that we get deliveries in place.
Anubhav Goyal
Got it sir. And sir, you know just coming back to that pre sales figure like you mentioned, senior living is about 33% now and incrementally more and more capital allocation will go there. So is it now key? To a very large extent we’ll focus only on senior living and not on say premium homes and mid premium homes because you know it will start affecting the base.
Varun Gupta
Not completely true Anubhav. So what I would say is that we want to become a company which does multiple residential products in multiple cities. I think that’s the intent with a few markets. What we see right now is that deploying capital into regular residential real estate in this cycle is it’s better to deploy in senior living at this moment of time given the land prices in the locations where we are active. Second I think in home markets ncr Jaipur and Jamshedpur, regular residential real estate will continue to dominate and we will look to do deals, look to do pre sales, look to build out.
I don’t think we will not we will stop doing that. I think what we will do is what senior living provides us is an opportunity is that in cycles where land prices are elevated we can find other pockets of opportunity where land prices may not be as elevated and deploy capital there. And why not do that if those opportunities are available to us? I think that’s where we are coming from.
Anubhav Goyal
Under Understood sir. Thank you sir.
Varun Gupta
Thank you.
operator
Thank you. The next question is from the line of Rohit Balakrishnan from I thought pms. Please go ahead.
Unidentified Participant
Sir. Just couple of questions again. One is so now this inventory that we have sold inventory in the phases. So I mean what is the sales through that is happening in these projects now? So what do you expect? I mean in your expectation when do you think this inventory should ideally get sold off? I mean 70, 80% of it. So what is that’s my first question.
Varun Gupta
Okay. And yep. So the given the run rate, we don’t track annual run rate actually when everything will get sold out. What we track generally is our projects comfortable to sell out completely by the time they are ready. Okay. So we don’t have a lot of substantial built unsold inventory. Some built unsold inventory happen. Some projects units are unfavorable. Different phases have different, you know kind of units are moving less moving at this moment of time. I don’t see any project which will have substantial buildup of unsold inventory the way we are progressing at this point of time.
Unidentified Participant
Okay so so basically this, so when so you said that when you launch your you’re comfortable with the 20, 25% sell through in the initial phase and the remaining get sold as the project. I mean as, as you sort of market it or as, as as I mean over a period of the completion. So like typically how does the cycle work generally as a rule of thumb if you have like year one like let’s say launch is 20% then year one of launch then year to let’s say takes four, four, four and a half years, four to five years.
So like broadly how does it just for us to understand I’m sure there each project is different. But if there is a rule of thumb, I mean from your perspective.
Varun Gupta
My perspective is what we look at is you know, each project has a different sort of expected customer handover date. These vary between 30 to 45 months from launch generally. Okay. Closer to 30 to 36 months from launch generally. About 36 months would be generally where we are looking to do and depending on the inventory we expected to sell by then. Okay. Some projects are moving faster, some projects are moving slower. If we launch, sell 20% at launch and the remaining 80%, we are selling about 25% a year. We are comfortable with it. If it’s not moving at that pace, then we become a little uncomfortable.
That’s what we look for. What we are not looking for is normal. I don’t have a natural or a normal cycle. What we have is a minimum accepted cycle. Anything better than that is okay.
Unidentified Participant
So you’re saying 20 at launch and 25% every year subsequent to that. Roughly.
Varun Gupta
That’s very good. Yeah.
Unidentified Participant
That is something that meets your expectation and.
Varun Gupta
Yeah, and anything below is unacceptable. Anything above great. What we shoot for is better than that, obviously. Yeah.
Unidentified Participant
And all of these projects that you’ve launched are either meeting expectation or above expectation, right?
Varun Gupta
Yes.
Unidentified Participant
Okay, that’s great to hear. And sir, if I look at your pre sales from 20 FY20 to FY26, I think we would have sold roughly 5,500 crores of pre sales in terms of our bookings. So on these, if you were to hazard a guess in terms of your profitability embedded profitability cumulatively, what would that be for you?
Varun Gupta
Yeah, so as I said earlier, we talked about that total book including these running to about 11,000 crores of sales and about 2,000 crores of profit. So there were 18, 19% kind of after tax margin. I would be handling a guess on the older profile. So I would say 14 on the, on the kind of what, whatever. You know, we have sold, we have unsold sold but not recognized for revenue is about 4,500 crores of revenue. I would sort of estimate about 14, 15% of margins on a blended basis across the same. I expect future sales to be better margins because they are on lower land cost.
So let me put it this way. My land cost for Amara is the same on a per square foot basis. But Amara phase one was sold at 6,000 rupees a square foot. Amara phase five is being sold at 15,000 rupees a square foot. I have very different profitability between those two phases. So, you know, average. So therefore, as we are going along, we have lots of newer phases to launch and those newer phases have higher price points. Than the earlier phases and therefore they are more profitable than the older phases. Does that make sense?
Unidentified Participant
Yeah, makes sense, yeah.
Unidentified Participant
So we have run it on the entire. Our mathematics was done on the entire sort of portfolio. It was less worried about year on year.
Varun Gupta
We were more worried. Can we get this block in by FY30?
Unidentified Participant
Got it. So essentially your. So what you’re saying is your, the, the run ones which are you’re selling now and the ones which you’ll sell in the next, both coming quarters, the profitability is much higher given the elevated price levels and the lower land cost that you had already originally bought them at. So they would be more than 20% and that’s how you average close to 18, 19%.
Varun Gupta
Yes, correct.
Unidentified Participant
So, I mean, just as a general sort of comment, so, sir, I mean today our market cap is around 3000 crores. We are saying we would probably return. I mean as a. Not return, I mean earn accumulatively 2000 crores roughly plus minus 10, 15% here and there. So roughly two thirds of our market cap we’ll be able to sort of earn as profits. I mean, it seems to me that, I mean either we will not do that or the market is not believing we’ll do that either. Which, I mean, if you don’t do that, it’s a separate thing.
I mean, the stock seems to be very, very undervalued. So are you considering. Hello.
Unidentified Participant
Go ahead.
Varun Gupta
Yeah. So are you considering any sort of buyback or. We did one buyback last year, I think around 12 months back. So I’m thinking of doing another buyback. Buybacks have become very tax inefficient for shareholders, so that becomes a little bit of a challenge overall to do so. Therefore, we have not done a buyback and you know, on whether the pricing of the market cap is correct or incorrect, that’s for. Not for me to reflect upon.
Unidentified Participant
Of course, of course.
Varun Gupta
Of course for us to reflect upon is can we get to those earnings that we’re talking about? And we are pushing hard to get there. I think we have. I have a belief that we have a strong possibility for it. So we are fairly confident of getting there. I think before earlier, I don’t know if you said that or some other person on the call said that this is a critical year for us and, and getting this year right is going to be sort of. I think that that will pave the way for both confidence in the market and confidence elsewhere that, you know, these numbers will happen.
I think delivering this year is going to be key. On the sale figures.
Unidentified Participant
Right. And sir, given. I mean generally, because it’s a sort of a critical year for our overall numbers and targets. So is there a thought that we can sort of space out the launches? Because let’s say if you are doing more Q3 and Q4, and let’s say there is some. Something that happens in those quarters, in those geography, in those micro markets or in general, and then it gets. Everything gets pushed or some regulatory thing or something like that. So I mean, just as a matter of procedure, that is something that idea.
Varun Gupta
Is to press the pedal on getting approvals and launching as quickly as we can and then hope that things don’t go wrong and work when things. But things do go wrong, eventually they will go wrong somewhere. As management, can we find ways around that and work around that. What we don’t try to do is plan over few quarters when deliveries will happen, when sales will happen and do all this, I think it just becomes too much planning. Rather just go for action to get things done. And then when we have it in those times, take a call whether we have the team to sell, whether market is ready.
And then you can delay if you want three, four months here or there to get ready and take that call accordingly. I think. But there is no thing, you know, juggle things around to smoothen things out. I think.
Unidentified Participant
No, my point was not smoothing things out. No, no, I’m not saying smoothing things out. I’m just saying that if every critical project for our. I mean, let’s say if you’re doing every launch in one quarter and God forbid there is something that happens in that quarter, it gets pushed out. So that’s the only reason I’m not trying to smoothen things. That was not the intent of the question.
Varun Gupta
Yeah, unfortunately, we live with those risks. Yeah. What to do those risks are there. So let’s see what we can do.
Unidentified Participant
Yeah, no, sure. And sir, just one more point on.
Varun Gupta
That last question from you, Rohit.
Unidentified Participant
Yeah, of course. Yeah, for sure. Sorry, what was just that, I mean, as owners, as promoters, are you also thinking. I mean, given the general attractiveness of the company, at least that’s what it seems to me. Are you also thinking to maybe increase your allocation or anything on those lines? I did see that. You guys did around Covid. That was. I did see that. But I mean, if there is anything on that.
Varun Gupta
Not really, Rohit. We don’t have any personal balance sheet to do that. We have. We have some other intent of sort of building homes for two of the brothers right now. And our personal funds are actually just allocated towards that. Sure. So there is no intent of actually increasing holding there. We don’t have the funds to do it. Intent is not right. But we don’t have the funds to do it.
Unidentified Participant
Okay, got it. Thank you so much and all the very best. Thanks.
Varun Gupta
Thank you. Thank you.
operator
Yeah, thank you. The next question is from the line of Rahul Jain, an individual investor. Please go ahead.
Rahul Jain
Yeah, so sorry if I. If somebody has already asked this. I joined a bit late. So my question is that I see that Asiana Amara has got phase one delivery, has got pushed from FY26 to 27. So is there some reason, like what was the reason for this and will it have some impact on our profitability?
Varun Gupta
It will have an impact on our profitability because Amara is overall a profitable project, Rahul. So. But it’s only a timing issue. I think it’ll be just move from one year to the other. In terms of profitability from a cash flow perspective, we are mostly locked in. It’s only the last sliver of cash flows in terms of the OC related payments that get a little bit deferred. That said, we are still pushing hard to try and get amara into the Q4 this year. What is happening in NCR now is if you are not able to get things ready by October and have our OC applied for it, be ready to take out checklists by then.
Then the delay is not 15 days. If I delay it’s, you know, 15, 20 days, then the delay goes actually three, four months. Because we lose about two and a half months now now to NGT construction bands during that time. And given the experience this year of what happened by even 1520 day delays in a couple of NCR projects which led to that kind of an issue, we just thought we’ll buffer in time for Amara as well given that concern.
Rahul Jain
And so I think last to last quarter conference call we had kind of given a rough estimate like we’ll do around 1100 crores in FY26 with a cat margin of around 12 to 13%. So I think so. Will that, will this be kind of impacted because of Amara?
Varun Gupta
The revenue figure should remain similar. The margin should do get impacted because some things moved from 25 to 26. But they are not, not nearly as profitable as Amara is. We haven’t run the percentage profitability numbers internally. So I can’t tell you where the profit expectations would be. We will be running those numbers in the next call. We can give a guidance of the.
Rahul Jain
Same as well and are you seeing some kind of pricing pressure across the micro markets where you are operating? I think Gurugram has some.
Varun Gupta
There are no pricing pressures anywhere in any market. We are not concerned with sale prices in any market at this point of time. Even Gurgaon. We are post the launch also. Sales have continued this quarter and we seem to be comfortable in the direction we are going.
Rahul Jain
And any, anything you’re seeing on the supply side like supply is increasing too much. Land prices are like unsustainable or something along like like you had mentioned around. Yeah 2021 that to me land prices. Are unsustainable in some micro markets. Because.
Varun Gupta
They are factoring in in a much different price as compared to the price points we are selling at overall. So I think they just complete like you know in Jaipur to make sense of the land prices people are quoting, I have to think of a price point which is 30% higher than the current price point.
You know 5%, 10% is one business. Right. But 25% higher price point, 30% higher price point than the current price points. That’s why I say land prices are unsustainable. I just might be wrong. And prices of apartments might increase 30% to catch up on the same.
But you know since I’m a buyer there, I might be also a lot more conservative than others. But that’s my view overall on prices.
Rahul Jain
Yeah, that makes sense. Also are we seeing some like sizes of the apartments are getting smaller, something along those lines or is it like.
Varun Gupta
Apartment price sizes are not getting smaller in any of the micro markets we are operating in. Okay, so we don’t see that trend in the micro markets we are operating in. That would be a trend where then it shows that there is sales price pressure. The fact that either apartment sizes are staying the same or increasing a bit. Okay, that gives me a sense that we are on the right track overall. Thank you for that Rahul. I think we’ll close the call going forward on this. I will hand over to Vikash ji for closing comments please.
Vikash Dugar
Thank you once again for joining us on this earnings call and for your continued interest in ashana Housing. While FY25 had its share of delivery related challenges, we are encouraged by the strength of our sales momentum, launch pipeline and operational cash flows. We remain focused on timely handovers in FY26 and on building long term value through disciplined execution and customer centric development. If there are any questions we were unable to address today, please feel free to reach out to us directly. The investor presentation relevant materials are available on our website and we’ll be happy to provide any further clarifications you may need.
Wishing you all good health and a productive year ahead. Thank you.
operator
Thank you. On behalf of Asiana Housing Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.