Aurum PropTech Limited (NSE: AURUM) Q3 2025 Earnings Call dated Jan. 21, 2025
Corporate Participants:
Vanessa Fernandes — Investor Relations
Ashish Deora — Founder and Chief Executive Officer, Aurum Ventures
Onkar Shetye — Executive Director, Aurum PropTech
Kunal Karan — Chief Financial Officer, Aurum PropTech
Hiren Ladva — Chief Executive Officer, Aurum WiseX
Analysts:
Mayuresh M — Analyst
Yash Garg — Analyst
Vidit Shah — Analyst
Ritesh Shah — Analyst
Rahul Jain — Analyst
Presentation:
Operator
Ladies and gentlemen day and welcome to Aurum PropTech 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. I now hand the conference over to Ms Vanessa Fernandes. Thank you, and over to you.
Vanessa Fernandes — Investor Relations
Thank you,. Good evening, everyone, and a warm welcome to the quarter three FY 2025 earnings call of Aurum Prop Tech Limited. Joining us on the call today, we have Mr Ashish Diora, the Founder and CEO of Aurum Ventures; Mr Onkar; Executive Director, Aurum Proptech; Mr Kunal Karan, CFO, Aurum Proptech; and Mr Hiren Ladwa, CEO, Aurum Isacs. Today, we shall take you through our performance for the quarter and Nine-Month period ended December 2024 as well as our future outlook.
Before we proceed, I would like to remind everyone that the forward-looking statements we may discuss are subject to risks and uncertainties that are detailed in our prospectus and the annual report. We encourage you to review these documents, which are available on our website to fully understand the risks associated with any future projections or statements.
We shall now start the call with Mr Ashish.
Ashish Deora — Founder and Chief Executive Officer, Aurum Ventures
Thank you,. Good evening, everyone. It’s a privilege to welcome you to the 15th earning call of Aurum as we reflect on another quarter of consistent growth and relentless execution. Q3 FY 2025 has been once again about staying true to our purpose of creating an integrated ecosystem, while delivering consistent sustainable growth across all financial metrics. I’m excited to share that Aurum Crop Tech has continued its steady growth trajectory. We once again achieved an impressive 24% year-on-year growth.
What makes this achievement even more remarkable is that it aligns with our efforts over the past seven quarters to improve profitability margins and focus on unit economics. This is also a validation of how all our stakeholders are adopting tech as a catalyst for change. The journey we embarked on to establish an integrated prop tech ecosystem is now gaining significant traction. It is now our responsibility to deepen this connection with our stakeholders and lead the way in transforming the real-estate landscape.
Talking specifically about our three business segments, I would now like to start with the rentals. Within the rental business segment, we continue to meet the growing demand for organized rental housing through our platforms Hello World and. Strong occupancy rates and new offerings like Nestaway Light have enabled us to cater to more tenants and property owners, while maintaining healthy margins. Also, we are seeing a trend reversal with top IT firms resuming hiring as indicated by their recent quarterly reports. This is a great positive for our business as it creates tremendous opportunity for us to expand supply and drive higher occupancy.
Moving on to our distribution business segment. Tech remains at the heart of our approach. Developers are increasingly adopting tech solutions, recognizing the value of industry-specific AI solutions like our CRM platform and our data analytics platform, Aurum Analytica. Talking about our capital business segment, we are excited about the transformative opportunities on the horizon. We are eagerly awaiting the SMD license and we are on-track to launch our first asset under this model in the coming quarters. This will be a path-breaking opportunity to redefine factional ownership, bringing more accessibility and transparency to real-estate investments.
As we chart our path forward, we firmly believe it is time for our products and companies to shift to a mindset of hyper-growth. Having demonstrated the strength of our unit economics, we are confident of driving exponential growth through our businesses. In the initial quarters of journey, we focused on acquisitions and proof-of-concept. This was followed by a period of strong focus on unit economics and achieving profitability. With all profitability metrics showing consistent improvement, we should now aim for hyper-growth and market-share expansion in the coming quarters. We are working with our business leaders to assess how they can double their product revenues while maintaining strong unit economics.
Our roadmap for the next financial year is in-place, ensuring that in each quarter, we focus on putting one-product at a time onto a hyper-growth trajectory. We are excited about the opportunities ahead and will continue to deliver value to all our stakeholders.
Thank you for your continued support. I hand over to Onkar for further details.
Onkar Shetye — Executive Director, Aurum PropTech
Thank you, Mr. I’m thrilled to share that Auro has continued its steady growth trajectory for the nine-month period ending, 31 December 2024. This quarter was about relentless focus on execution and unit economics. We achieved an impressive 24% year-on-year growth with consistent improvement across all profitability metrics. Within the rental business segment, we continue to build-on the momentum from previous quarters. Revenue was up 28% year-on-year for the nine-month period ending 24 December. We now cover 33,500 rental units under management between co-living, student living and be rentals across 200 plus micro markets in the country.
The blended occupancy was at 75% with young professionals driving maximum demand. Notably, Nestaway, India’s largest rental marketplace platform, achieved sustained year-on-year growth for the period. Key contributors for revenue growth were improved customer experience. Nestaway ratings now improved to 4.3 out of five. New revenue schemes, including Nestaway Light continue to enhance wallet share and allow us to serve a broader customer-base. Continued focus on portfolio management approach, flat organizational structure and automation of tasks with technology help control cost and unit economics.
The demand for organized rental accommodations is to broad rental units across the country and we believe we are well-positioned to this large graph with efficient, scalable and customer-centric technology. Building on the strong performance of our rental business segment, we have also made significant strides in our distribution business segment where technology remains at the heart of our approach. The restructured distribution business, services and non-core businesses demonstrated a 55% year-on-year growth for the period. This came at a significant net margin of 18%, a validation of our commitment to profitable growth with strong control on unit economics and focus on technology at-scale.
The data analytics business was a key driver with 89% year-on-year growth in revenue. This was mainly fueled by larger account penetration and higher retention rates across existing accounts. Additionally, new accounts also saw growth in Tier-1 and Tier-2 cities as well. Analytica, centrally operated from NCR, now serves 300 plus micro markets across the country with its data link. There was also an impressive cost-reduction in our sales automation business out to. This was majorly done with increase in account penetration, customer wallet share and also better control on automation of tasks.
Moving to our capital segment, we continued our consultation with Semi on SM REIT application and are fine-tuning our go-to-market in anticipation of — in anticipation of the license, which is set to unlock a INR50,000 crore AUM SM REITable supply across the country. We shall continue to build our integrated corporate ecosystem for scale and customer-centricity.
I will now hand over to Mr Kunal Karan, CFO of to take us through the financial results.
Kunal Karan — Chief Financial Officer, Aurum PropTech
Thank you, Onkar. Thank you everyone for joining the call. I will quickly take you through the consolidated results for the quarter and nine months period ended, 31, 2024. First, the results for the quarter. The revenue from operations INR64.58 crore, total income INR70.23 crores, loss before-tax INR9.63 crores compared to INR12.1 crores in the previous quarter, an improvement of 414 bps in terms of PBT to total income. The EBITDA for the quarter 24.7% compared to 21.5% in the previous quarter, improvement of 320 bps BPS.
Now the results for the nine months period ended December 31, 2024. Revenue from operations INR193.43 crores, total income INR206.94 crore, loss before-tax INR35.47 crores compared compared to INR71.15 crores in the corresponding same year corresponding period previous year, an improvement of 2,540 bps in terms of PBT to total income.
Now the segment information. For the quarter, rental revenue contributed 68% of the total revenue from operations at INR43.98 crores. Revenue for distribution and capital segment were INR17.85 crores and INR2.75 crores respectively. Rentel and Capital segment had a loss of INR3.6 crores and INR2.35 crores respectively, while the distribution segment made a profit of INR2.44 crores. For the nine months period ended December 31 December 2024, rental revenue contributed 64% of the total revenue from operations at INR123.57 crore. Revenue for distribution capital segment were INR58.09 crore and INR11.77 crores, respectively. Rental and capital segment at a loss of INR9.01 crore and INR5.73 crores respectively, while the distribution segment made a profit of INR5.12 crore.
I will now hand over the call to Yassri to take it forward.
Questions and Answers:
Operator
Thank you. Should we begin the question-and-answer session, sir? Thank you. Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. To ask a question, please click on the raise and icon tab available on your toolbar or on the QA tab available on your screen. Kindly turn-on your mic when the operator announces your name. You may post your text questions as well. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We’ll take our first question from Mayuresh M, an individual investor. Please go-ahead.
Mayuresh M
Thank you very much. Do you — do you hear me?
Operator
Yes.
Mayuresh M
Okay. Thank you for this opportunity and I congratulate you for the great set of numbers. I also asked some questions during the last con-call and some forecast was provided of 45% year-on-year growth in FY ’25 for the whole financial year and the revenue — for the revenue of INR300 crores until March 2025, which means there will be a revenue of INR110 crores in the last quarter. Do we still — are we still confident of achieving this number
Ashish Deora
So, this is Ashish here we have we have focused on unit economics as a metrics. We heard from many of our investors are to say, look, that is very, very important and very critical as a public company. We have over last many quarters, in fact, last seven quarters, improved our profitability while maintaining a very steady growth. So we are not really kind of as of now saying what is going to be the Q4 numbers. But yes, as I tried to address in my opening sort of remarks that we are now talking to each of the business leaders that we have in our ecosystem to say how can their companies, their products be taken on a hyper-growth scale. We are feeling very confident about that now with unit economics in-place. So we believe that whatever growth we have shown over last few quarters, the growth in the next few quarters will surpass that as a percentage, if that helps you.
Mayuresh M
Okay. So I could assume that the next quarter, the revenue would be at least INR65 crores as in similar to this quarter, at least it may surpass, but we do not guarantee the number that you had provided last-time of INR300 crores for the whole year.
Ashish Deora
So that is not what we are saying. But yeah, if — I mean that is not what we are saying, but yes, I think that we will definitely surpass the current quarter revenue numbers, right? I mean that is
Mayuresh M
— no, I was talking about the target that was provided in the last con-call, like are we still confident of achieving — achieving it or considering the numbers are quite large that we need to cope up with for the last quarter.
Onkar Shetye
, from a industry point-of-view, real-estate being a very cyclical end of our business. Q4 numbers are typically better in all the four quarters. We will definitely aim to surpass the — like you said, the base numbers of around INR65 crores. And while — when we look at Q4 more optimistically, while we have demonstrated a consistent base number, we will definitely look to surpass that in Q4.
Mayuresh M
Okay. Thank you. Thank you. And any updates on the rights tissue that was — that was planned in Q4? Will it still be coming out in Q4?
Ashish Deora
Yes, we are looking to start the process in this quarter, in the Q4 quarter. And Paul for the rights money in next few months, but the process will be started in this quarter as we had committed earlier.
Mayuresh M
Perfect. Sounds good. About the depreciation, I see we have like close to INR20 crore depreciation in our books for this quarter and also for the last few quarters considering that we are an asset-light business and we don’t own any assets ourselves we rent them we rent them from the owner and then further rent them to individuals. May I know why do we have so much depreciation in the books.
Kunal Karan
Look, the depreciation that you see in the books is not for the assets that we carry-on our own. The depreciation are for the assets that comes to us as a write-off news asset, which comes because of this mostly because of the business where it enters into long-term agreements with the landlords and as the practice of the accountings, requirement of the accounting standard, those assets need to be shown as a ROE asset and out of, say, the total depreciation of INR59 crore that you see for the nine months, around INR42 crore comes on account of that. So that is not an asset — not a for asset, not a depreciation for asset that we carry. So definitely that asset-light philosophy stands good for us.
Mayuresh M
But the asset is owned by the owner himself so why do we have to put the close to INR59 crores of depreciation on our side?
Kunal Karan
So that is the requirement of the accounting standard. Zone. So when we enter a long-term lease agreement with the landlord, that time the standard request us to show that asset as a write-of-use asset and the cost of the asset gets depreciated, that is why it is solid.
Mayuresh M
Okay, okay. Understood.
Kunal Karan
So there are two kinds of contracts. Long-term contracts and other short-term contracts, short-term contracts where the contract expires within 12 months and long-term where it is more than 12 months because our business requires us to have properties which we can keep under our control for a longer period. That is why we enter the long-term goals.
Mayuresh M
Okay. Okay. Thank you for the clarification. And regarding the occupancy of 75%, is it — is it seasonal or is that the average occupancy throughout the year?
Onkar Shetye
This is the average occupancy of for the quarter. What is notable is that the occupancy of 75% is maintained despite the stress that the student living business went to in the city of Kota. If we take Kota out, the city of Kota, which is majorly housing student living units, if we take that out, the average occupancy actually goes up to 85%. So that’s been the strength of business coming in from young professionals who are working in-markets like micro markets like Bangalore, Pune, NCR, which is also a large market for us and Hyderabad.
Mayuresh M
Understand, understood. And last question from my side. About units, we had a target of around 50,000 units until the end of FY ’26. Do we still — are we still confident of achieving it?
Onkar Shetye
Yes. So we are at 33,500 rental units under management as of now. We would definitely look to scale it up to 50,000 units under management in the mid-term like we said. And in fact, our aspirations are quite larger. We would like to in the longer-term scale it up to one lakh rental units under management. But in co-living and also the family.
Mayuresh M
Yes, I noticed 1,500 units were added in this quarter. And I think if we keep going-in the same pace, increasing the number of units incrementally this target is possible. About — sorry, this is the last one. The RDIT license, any news if we could — if we could get it this quarter or it still depends on SEBI to take that call.
Hiren Ladva
Hi, this is Hiren here. Yes, I mean you gave two answers, both of them are correct yes. It must definitely depend on but has its own process of going through the applications. There was industry-wide discussion also happening in the previous quarter because of which the existing players of registration is most likely to get approved in this particular quarter for all of us.
Mayuresh M
So there is nothing depending from our side maybe it’s just a question is it totally on SEBI side or are they waiting for some information from our side to process the file?
Hiren Ladva
So this is an iterative process. So you know, as of now, as we speak, we have submitted our information that was required by. We are awaiting their response. If no further queries, then it should be the last leg. But again, can’t comment on what exactly can come back with.
Ashish Deora
But just to add to Hiren. Just to add to Hiren, I think the — the conversation with has been so transparent and so sort of forward-looking, it’s really very, very heartwarming, right, despite being the regulator, despite they’re trying to do something new, bring — democratize the real-estate investments, they have been very, very forward-looking and our compliments to them.
Mayuresh M
That’s great. Thank you very much for clarifying all my questions and good luck.
Operator
Thank you. We’ll take our next question from Yash Garg and shareholder. Please go-ahead. MR. Yash Garg, you’re on talk mode now, please sir.
Yash Garg
Yeah. As we are hearing about the market stagnition throughout the Indian stock market, how companies like yours, which is operating in a niche sector like look to excel given the challenges and opportunities created by growth of AI? And also did you consider making a D2C platform like housing.com or magicals
Onkar Shetye
So I’ll answer the later part first we have we already have India’s largest C2C platform, which deals on the rental management side. What we are going to definitely — we are definitely doing a POC on how do we also tap on to the resale market that comes by the virtue of our visibility in the rental units. And as we are aware that the rental or the resale market is much larger than the primary sale market in India. And the opportunity to disrupt that from a — from a consolidation standpoint, from a technology standpoint, it’s quite — from a customer experience standpoint is immense. So is where we are going to bank on to the C2C offering.
Coming to your question on utilization of AI. We feel AI and all the new Gen AI practices are more of an enablers and we have a three-pronged strategy there is to first how do we use AI to increase our top-line by increasing wallet share of customers and consumers; number two, how do we increase our bottom-line by increasing the efficiency of our team structures, organizational structures, automation of task; and number three, how do we run new business models? Like we spoke about the C2C model for resale on platform. That comes by the virtue of AI, where we are able to understand the yield — the rental yield of a certain rental apartment under management and offer it to consumers on a prompt basis who sell and for the owners I hope we are here
Yash Garg
Yeah thank you sir
Operator
Thank you ladies and gentlemen to ask a question please click on the raise and icon tab available on your toolbar we’ll take a text question from Mitesh Jain from Impex International so many companies have received the SM right license but our license is still pending is there any particular issue what’s the likely time by when we can get the same
Hiren Ladva
Here again I think we have answered this question already. In terms of the timelines, expectations and discussions with, you already covered that.
Operator
Thank you. We’ll take our next question from Vidit Shah from Spark BWM. Please go-ahead.
Vidit Shah
Yes. Hi, thanks for taking my question. My first question was on the profitability of the business. We’ve seen the losses here gradually come down over the last four quarters. We’ve seen a very sharp increase in the loss at the segmental level results from INR1.2 crores to INR3.7 crores. So could you please help us understand what has caused this? Is there a one-off? And how do we see the profitability of this business given RCG’s focus on unit economics that he spoke
Onkar Shetye
Vidik, your voice was quite muffled but we could quickly decipher some parts of your question and we will probably elaborate it later but from an understanding standpoint your question was on the profitability of the rental business. We feel that the rental business is still in the — I would say at an inflection point from a scale-up standpoint. We are between both the — both between Hello and added 33,500 units under management. And to reach an ideal state in the micro markets that we operate of — I would say in-depth, which is five key micro markets, you still take some of, I would say, it will take some time to reach that ideal state from a supply standpoint, from portfolio management teams that are managing that supply standpoint and from the demand that we end-up generating on a continuum basis in that micro-market standpoint. Once that is in effect, then I think the network effect for each micro-market will drive profitability at that scale. We feel that scale should be at a 50,000 rental units under management. Of course, those 50,000 rental units will not be concentrated in five micro markets, but we will have — we will have 70% of the micro markets, which will have an — sorry, 60% of the micro markets will be at this state and balance will be in the scale-up position at that stage.
Vidit Shah
Is my voice better now or has it still
Onkar Shetye
It is that better it is it is that better yesterday
Vidit Shah
So okay let me just am I audible now?
Onkar Shetye
It’s better is it
Operator
I’m sorry to interrupt. I’m getting an echo on from your line
Vidit Shah
Better.
Operator
You can go-ahead.
Vidit Shah
Okay. So my question was around is 50,000 units a breakeven level or do we become reasonably profitable after that? And two, I just wanted to understand this particular quarter what has led to the increase in losses
Onkar Shetye
Well I’ll start with the later part. For the quarter the rental segment has operated at INR9 crore loss — sorry, sorry, sorry, let me just quite myself for the nine months period ended December 31, ’24, the rental segment operated at a INR9 crore loss, which we feel — which we feel will has consistently sort of decline and we will continue to improve this. The 15,000 rental units under management, like I said, we’ll have 60% of them at an ideal state which will have micro markets that are operating at a breakeven. There will be certain micro markets which we would want to scale. So Tier-1 cities once in control, Tier-2 cities, we will focus on building on scale and that is — that’s where we will probably need to sort of look at certain I would say losses.
Vidit Shah
Okay, understood. And just one last question on the REIT license once it is you know given to us this quarter, what is the strategy going-forward? How easily can we scale-up the AUM in year and what is the target AUM that we’re seeing over the next years.
Hiren Ladva
Hi,, this is Hiren here. So once we receive the license or rather before that, we’ve already started working on our go-to-market strategy around that. I won’t go too much in detail, but broadly, we are looking at Grade A commercial assets to launch them to start with. By definition and by regulation, already the size of the assets are more or less defined in terms of the AUM size per scheme. But from a growth aspirations point-of-view, in the next two to three years, we would be looking to scale-up to an AUM of around INR2,000 odd crores to start with and then we’ll look to see based on how the acceptance of the product is in the market, how quickly are we able to take the schemes to the market and based on that we’ll recalibrate our long-term aspirations
Vidit Shah
Okay. And what channels are we looking to scale-up this area? I mean what is our marketing strategy there? Are we up with nursing wealth managers or are we
Operator
— you’re not very clear with it. I’m sorry to interrupt. This is the operator here.
Vidit Shah
So I think there’s a problem with my line. I’ll just get back-in queue. Thank you.
Operator
Thank you. We’ll take a text question from Vimalit Agarwal. The question is hi. I — one moment, please. Hi, I want to know the reason why the company is not calling for the rights issue money from the investors as the same will help the company to grow its business
Ashish Deora
So the company, this is something that is as a roadmap we had decided in the very beginning of the rights issue and that is why the rights issue was sort of done in a manner that it was supposed to be called in three tranches we have we have done the two first two tranches and now the third tranche is expected to be done in the in the current to upcoming quarter having said that, I think the company didn’t require as much capital till now or actually in fact, it doesn’t even require as much capital as we are raising with the rights issue because as you have seen the losses kind of are coming down substantially over last seven quarters. So it’s not that we didn’t call for the cost of growth, it was just not required. Having said that, I think rights issue will be rights issue, final tranche will be called in this quarter.
Operator
Thank you. The next question is from Ritesh Shah, an investor. Please go-ahead.
Ritesh Shah
Yeah, hi. I wanted to check what are some of the benefits that we are seeing from the ecosystem of the — all the entire Prop tech companies coming together as Aurum — is the only company which has such an ecosystem. So just wanted to see if we are seeing some benefits of the collaborative nature.
Onkar Shetye
So there are actually immense benefits that we get operating as an ecosystem together and I’ll just give you a couple of examples to give you some color on it. What we spoke about using AI to generate new business models on existing businesses. So for example there are opportunities that come in where the hello World Score living business which has got a good visibility on rental yields of poor living assets which are typically buildings, housing student living and poor living apartments go very adjacent to a business of SMB or a where there is a rently being asset that can be put onto that platform. So that’s one instance for example.
The second instance for example is how the Analytica and the business, which both operate in the enterprise segment have got good visibility on projects in launch base on the enterprise side. So at an ABM level, it definitely helps for them to go-to-market. Also, also they are able to work-in tandem with each other. So if you see the project life-cycle of a primary sale, post-sale of an apart — a sale of a building, the consumer communication and the post-sale process needs to be managed with cadence. So post Analytica’s work of data analytics and is done for that project, it is backup by business, which takes care of the entire post-sales business of it.
And assumed in the same building, once the entire lifecycle of handover is complete, tenants start coming in, moving in, becomes active and starts reselling or managing those rental limits under management. So that is where the true benefits of the network effect of the entire enterprise and consumer tech should also come. So as we as we as we go quarter-to-quarter, we have been doing on each of these consortiums in micro markets that we feel are prominently good for these
Operator
Mr Jain sorry Mr Ritesh, does that answer your question?
Ritesh Shah
Yes. That answer my question. Thanks.
Operator
Thank you. We’ll take our next question from Rahul Jain from Dolat Capital. Please go-ahead.
Rahul Jain
Hi, I hope my line is audible.
Operator
Yes, sir. Please go-ahead.
Rahul Jain
Yes. Thanks for the opportunity. One question on this HelloWorld business, specifically about the quota City. This is the info that you have shared, it seems the level.
Operator
I’m sorry, your voice is breaking. Can you just repeat your question please?
Rahul Jain
Yeah, hi is it any better?
Ashish Deora
Yes,
Rahul Jain
My question was about hello world business and the quota City specific question that it seems the utilization here is pretty low. So if you could share the contribution of this city to the business and how we plan to mitigate the weak demand situation in that market.
Onkar Shetye
So I’ll answer this into two-parts. One, as per I would say as of on the supply-side, we have some 10% of the entire rental mix under management spread in Kota, which is around 3,000 to 3,500 oddits to be — to be specific, it’s around 3,200 obbits in quota. The occupancy witnessed in this season with the present challenges is in the range of 57% to 60% in the city. So that is where the concern. Whereas just to underline or just to point out, in a good market, the city was operating at an 85% kind of an occupancy. This is last year same season. So we will be optimistic on the city coming back to its previous quarters because we feel that student living as a business has got immense opportunity with around 40 lakh odd students looking to stay-in co-living apartments or student-living apartments.
What have we done from a mitigation point-of-view, the teams that were managing or that were required to manage a capacity of 75% occupancy in these cities have been moved to adjacent cities in the same, I would say, adjacent to these micro markets. So for example, 60% of the team has — sorry, 30% of the team has been moved to Indor, which has now which is which is operating at a 77% kind of an occupancy. And that is how we were able to control the damage on costs and operations that was emerging out of this. See, I would say seasonal, but yes macro challenge
Rahul Jain
Hi. And one more question on the light version of Nestaway. So we are seeing significant growth in this particular sub-segment. So is it any specific differentiation that we have in terms of operating metrics in this business, I assume, of course, the per unit rental would be lower, but in terms of commission rate or average tenure of occupancy, is this a more better business or slightly lower-profile business compared to the usual Nestaway customer?
Onkar Shetye
So Nestaway Light is a byproduct of our — of our MIs that came in where we saw that there was a lot of supply that was coming in as request, which wanted to only do the rental transaction bid, which means the bias of the supply/demand meet transacting for that rental property and then moving on. At least for that one year, we do not take any property management services that would go on to add to their service partner network. And that is where Life was born out of that we — where we lash on to that supply and the transaction model where a rental transaction is facilitated and the teams move on, whereas the relationship with the property owner still remains with us and is that service for the next turn of that next turn of the tendency Raul I hope we’ve been able to answer your question?
Rahul Jain
Yes, yes. That’s pretty helpful. And just last question from my side. If you could share any bit on Analytica in terms of how the metrics are shaping up in terms of customer addition or lead value or transaction efficiency, any color on that would be helpful. Thank you.
Onkar Shetye
Yes, definitely. I think you see Analytica is a very — is a very — is a very interesting business to us. From the time we added out it onto our portfolio to now, it has been one star performer. The model is similar to the 99 acres and the housing.com of the world where they are in the lead sale business for primary real-estate projects. What is different in their approach is that they use beta metrics to sell the leads. Now as a metric Analytica has grown in a number of projects this year from, I would say, Q1 to Q3 by almost 100%. We started the year at around 80 real-estate accounts where our services or developers rather where our services were offered and now we have almost doubled it in Q3.
We are operating in more than 250 micro markets, which means those many number of locations are giving us enriching our data lake and allowing us to offer more services in these. Cumulatively we have in this year quite being able to sell close to 200,000 leads in — for the projects that we are that we are sort of service. I would also like to point out that we’ve been able to also do two successful projects outside India with the model, specifically where with a large real-estate enterprise, one of the top — which comes in the top-five enterprises in the country. We were able to help them monetize their residential real-estate project or luxury one in and we’ve got repeat business for that — for that micro-market and now we are looking to also add some adjacent colleaks in that micro-market.
Operator
Rahul, does that answer your question?
Rahul Jain
Yes, I’m good. Thank you.
Operator
Thank you. We’ll take a text question from Subham from Value Research. Could you please outline the company’s strategic focus in the coming years? Will it be more towards driving profitability or focusing on growth. If profitability is the priority, when do you expect the company to breakeven or reach a sustaining profit margin?
Ashish Deora
I think the way we have built this so-far is we have tried to balance between profitability and growth. And I think as an overarching principle, we will continue to do so. However, we are seeing some of the products and their potential, which can be grown exponentially over next one or two years. And we want to — we want to kind of allocate capital. We want to allocate more management bandwidth to these businesses and ensure that they do justice and get their required and desired revenue market-share. So this is something that is a — that is a balance throughout the — throughout the day, throughout the quarter and I think we’ll continue to do so.
Operator
Thank you. We have one more text question from Vimalesh Agrawal. Thank you very much for the answer. My suggestion is that the company should make expense in out-of-home advertising so as to gain more visibility among public and this will help in acquiring the clients which are not aware about business.
Onkar Shetye
Thank you for the suggestion. We will definitely consider this and thank you for participating in our sort of conducive observations. One thing that we always try to point out is that we have always had a digital-first approach. A majority of our spend on advertising goes on to direct digital marketing, which is basically taking the brand or project or the product directly to the consumers hand-end or desktop-based digital device, which is a mobile or a laptop with where most of the timeshare from — from a transaction from a discovery standpoint happens. Outdoor advertising or out-of-home advertising will give us definite brand visibility and we will keep that in mind. We have done these exercises for the Nestaway business, which is largely C2C and does require that brand approach and we have done that for business. We will definitely consider this in the future.
Ashish Deora
To add to what Onkar is saying, as a company, as, we have always been product and customer-centric rather than promotion-centric. We believe that it takes longer for people to then identify and find you, but then your customers are long-term customers because they see more value in you. So as a philosophy, we have built businesses over last three decades with the product and customer-centricity rather than promotion centric centricity. But thank you for your suggestion.
Operator
Thank you. We’ll take our next text question from Amit Agisha from. Hawa; Company. What is the current status of the SM REIT applications with SEBI? And when do you anticipate approvals? Could you share details about investor interest and funds raised under SM REIT so-far? With EBITDA and profitability improving, when can we expect the company to turn net positive on earnings
Hiren Ladva
So the first part of the question has already been covered. This is India, maybe on the EBITDA profitability part also.
Ashish Deora
So on the EBITDA, we — we have now for last few quarters, we have started kind of declaring our ESOP adjusted EBITDA. And that has constantly improved to a point where it is now minus 2.2.4%, which means on a INR70 crore revenue, it is INR1.8 crores, approximately INR1.7 crores, sorry, not even INR1.8 crores. So in three months, INR1.8 crores is not really a big, big sort of number for us to control if we have to. But the key also is to continue to grow at a 20-odd percent at least on a six-monthly basis, right. So while the — while the profitability has been changing, while the profitability has been improving throughout and we believe that we can turn the company net positive literally at any point of time because of the way we have kind of brought down the profitability, brought down the losses in the country.
Operator
Thank you. We have a text question from Shivang B from MK. A clarification, you said quota occupancy decreased to 60% this quarter compared to 85% in Q3 FY ’24. Is that right? If yes, what exactly changed?
Onkar Shetye
Yes, that’s correct. Has been majorly hit this year. What has changed this year has been a certain negative I would say perception built over the last few quarters on these coaching institutes and coaching centers and the that students typically go to there were very unfortunate suicides happening in some micro markets across the country with pressures mounting on delivering results for students. New regulations also which were bought in I think earlier or Q4 last year from the policymaking bodies also impacted certain curriculums and confusions or perceptual confusions because of certain reasons that these two things have actually contributed to some headwinds in this business but we feel that this is there are corrective actions that are taken at all levels including specifically for student suicides, there is immense level of public awareness campaigns that are happening by institutions we have also done we’ve also done a bit in this area parents are getting educated about what does need to be do as a proactive, prohibitive measure and on the policy-making also the policymaking bodies are being more proactive in, I would say, bringing out clarification that at times are very, very helpful for parents and to understand their and so on.
Ashish Deora
Just to add to what Okar said on this point, from our foundation, foundation also we are trying to work with the stakeholders of Ota, just so that kind if there is any kind of any kind of contribution we could do in terms of — in terms of education, in terms of bringing this issue to the forefront. This has nothing to do with our profitability metrics, but this we wanted to do since it’s a very, very strong pause that we can associate ourselves with.
Operator
Thank you. We’ll take our text question from Sejal Ajmera from CRISP Idea. Which location do you see in next year to leverage your rental business and what
Onkar Shetye
Next year we feel that NCR which has built a good momentum over the last two quarters will continue to deliver results for both the whole living and the rental business alike. Similar and this is primarily coming in from I would say not just startups but a lot of IT companies also shifting bases looking at NCR as a good talent pool market. NCR offers a larger micro-market pool for talent coming in from the Northern India region and that has attracted a lot of IT companies to go on set base there. The other regions that we feel will continue to sort of give good results is Bangalore, which is backed by an uptick in the GCC micro-market.
The GCC micro — sorry, the GCC industry, which is largely the global capability centers of large enterprises, large IT companies that are setting base in Bangalore and other regions will drive more people to come and work here and also avail the co-living and the rental, the family rental facilities. So primarily these two micro markets is where we see the larger demand coming in. The other micro markets are also quite promising and will continue to grow at the same trajectory that we’ve been witnessing.
Ashish Deora
The limitation here is not — the limitation here is not the TAM. The limitation here is how many micro markets can you really service now profitably. And that is why we’ll probably add few micro markets and we will — we will keep going more deeper into the micro markets that we are already present. Thank you.
Operator
Thank you. Next question is from Maitri Shah. Any guidance CAGR for the next two to three years and the company turning to net profitable, can that happen by next fiscal year?
Onkar Shetye
Thanks,. Questions like these always keep — sorry, my. Questions like these always keep us on and up and away and are make sure that we have continued focus on delivering numbers. We have grown consistently. So if you look at FY ’23, ’24 and now I think we have delivered a 30% kind of CAGR in the last two years. While we go into the next year, I think in next two years with the existing businesses and also some inorganic nature of our strategy we will look to double the revenue in the next two years
Operator
Thank give me a moment please this next question from Shreyansh any update regarding the call
Ashish Deora
So I think I’m hoping that the next call that we have, this question will no longer be required. So I think we have to, we have to work with that timeline, which we are already doing. There are many questions today on the on the rights issue and we’ll ensure that as we had committed in last few quarters, the rights issue process would have started within the Q4, which is JFM 2025.
Operator
Thank you. Ladies and gentlemen, we’ll take that as a last question for today. I would now like to hand the conference over to Ms Vanessa Fernandez for closing comments. Over to you.
Vanessa Fernandes
Thank you,. Thank you everyone for taking the time-out to join us on this call. We allheadedly appreciate your interest in Aurum Proptech and we look-forward to having you all-in the next call again. Have a good evening ahead.
Operator
Thank you, members of the management team. On behalf of Aurum Prop Tech Limited, that concludes this conference. Thank you for your participation and you may now exit the meeting. Thank you