Ganesh Housing Corporation Ltd (NSE: GANESHHOUC) Q1 2026 Earnings Call dated Jul. 21, 2025
Corporate Participants:
Unidentified Speaker
B. Ravi — Corporate and Financial Advisor
Rajendra Shah — Chief Financial Officer
Neeraj Kalawatia — Vice President
Analysts:
Unidentified Participant
Riddhi Shah — Analyst
Jahnvi Shah — Analyst
Henil Bagadia — Analyst
Dipesh Sancheti — Analyst
Aman Tiwari — Analyst
Raj Shah — Analyst
Preet Nagarsheth — Analyst
Alok Shah — Analyst
Amit Agicha — Analyst
Sandeep — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Q1FY26 earnings conference call of Ganesh Housing Corporation Limited who hosted by Goindia Advisors. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchdown phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Riddisha from GoIndia Advisors. Thank you. And over to you ma’. Am.
Riddhi Shah — Analyst
Thank you, Steve. Good afternoon everyone and welcome to Ganesh Housing Corporation Limited earnings call to discuss the Q1 FY26 results. We have on the call with us today Mr. Rajendra Shah, Chief Financial Officer. Mr. Neeraj Kalawatya, Vice President Finance and Mr. B. Ravi, Corporate and Financial Advisor. We must remind you that the discussion on today’s call may include certain forward looking statements and and must be therefore viewed in conjunction with the risk that the company faces. I now request Mr. B. Ravi to take us to the company’s business outlook and financial highlights subsequently to which we will open the floor for Q and A.
Thank you. And over to you sir.
B. Ravi — Corporate and Financial Advisor
Thank you, Hridi. Good afternoon everyone and a warm welcome to all of you on this Q1 FY26 earnings call of Ganesh Housing. I truly appreciate the time and interest you continue to show in Ganesh Housing Corporation. It’s a pleasure to connect with you again as we embark on a new financial year with fresh goals, evolving market dynamics and an exciting pipeline of opportunities. Q1 FY26. If I may say, it was a quarter of stabilization. While the macro indicators including the repo rate, expectations, cost of capital and urban consumption remained relatively benign. The real estate market in Ahmedabad saw a somewhat cautious sentiment.
Especially in the months of April and May with very few new projects being launched with a wait and watch approach. And that was especially in the housing sector. But by June, towards the third week and fourth week of June, we began to see a distinct pickup in activity with a stronger traction. This aligns well with our internal expectations. And if you recollect, we have mentioned in the last call that we anticipate a mid year turn in the buyer sentiment and that shift is now becoming visible. And of course in that Ahmedabad continues to be a place of action in Gujarat.
To elaborate further, Ahmedabad has cemented his position as Gujarat’s real estate powerhouse. The city now accounts for 42% of all real estate investments in the state as per the recent reports and leads in both residential and commercial development. What’s specially encouraging is the structural nature of this growth driven by infrastructure upgrades, migration trends, job creation and rising investor interest. And not just within Gujarat, but also from across India. Now let me walk you through the key projects, updates and operational highlights of Q1. The Malabar retreat project, which is a premium residential project, continues to move ahead of schedule.
The structural work is largely complete in the initial towers with about 43% of the construction completed. Sample flats were ready in the last month and for walkthroughs. As you know, this is a crucial milestone because in the premium segment, visual experience often drives conversion and we have improved right in that because we already see a clear uptick in footfalls since opening the show units. Bookings in Q1 were steady and we expect much stronger momentum from Q2 onwards as the festive season approaches. With about 160 units, the average realization of around 6,000 square feet, the project is well positioned to deliver strong margin appreciation.
Million mines SCZ project, that’s phase one. As you know, it’s again, it’s well ahead of schedule. As you already know, the leasing equity here continues to actually exceed expectations because as of Today almost around 80% of the leasable area is either under active discussions or concluded with letters of intent and expression of interest put together from a strong mix of global capability centers, hybrid workplace providers and tech firms. We are on track to commence lease income by Q3 Q4 FY26 latest with expectation of the rentals to be around 7 to 75% per square feet. It is ahead of what we had, you know, earlier mentioned.
The fit outs for this are already set to begin in Q2, maybe another month or so. That is this current quarter and we are now working in parallel for phase two. Two which may be in advanced state depending on the demand visibility. The one saltage commercial project of 1.8 million square feet that is in the final process of receiving all the design approvals and we do believe that the construction commencement could start towards the later part of this quarter. Once it is done, it will be generating about 2,100 crores in the lifetime revenue. The Godavi Township which is the 450 acres integrated development which you have had is really making a good progress.
It’s a very good land pass. As you know, with a lot of activities in and around that place and especially in Gujarati as we keep mentioning, it has got a lot of interest both from the end users as well as other developers. We have already monetized about 18 acres in FY21 as we spoke to you in the last call. The sales therein continue into Q1 of FY26 also and I think we did about 10 acres this quarter. The average sales realization, the price that is of both these things has been around 30,000 per square feet.
Majority of the Q1 income FY26 is from this project. We expect to pursue a hybrid monetization strategy on own plotting schemes along with bulk sales to repeated developers. We believe that the way it is going, the estimated sales potential could be well over rupees 5000 crores which we had initially envisaged. And this will be transforming Godavi into a self sustained urban micro market over the next seven to 10 years. Now to talk about the financial numbers. As we said and we had indicated this in the last call too that the numbers of this Q1 are muted.
The revenue in Q1 stood at 151 crores which is a yoy drop of about 30%. But with the EBITDA margins being stronger which have widened to 85% from 71%. The EBITDA YoY reduced only by 18% and it stands at 128 crore rupees. The PAT margins also widened by 10% from 51.6% to 61.6 and the PAT stood at 93 crores which is down from about 114 crores YoY. However, we expect the next quarters to be better and would make up for this slight decrease. On the balance sheet front, we continue to operate with negligible gross debt and a strong cash position.
This gives us ample flexibility to execute at high scale while maintaining financial discipline. Looking ahead, our focus remains consistent. As market conditions evolve, we are sharpening execution across all the three key areas of timely project execution, Revenue diversification and capital efficiency. As you know, we continuously invest in technology and we continue to do that for sales, CRM and project monitoring. Additionally, with this project, specially of SEZ that Million Mines Phase 1, the ESG principles are now integrated into our design and planning process. From green buildings to responsible land use. To sum up, we are optimistic but yet grounded.
The real estate cycle in Ahmedabad continues to move in a structurally positive direction. Demand is shifting towards branded developers, credible execution and well planned community areas where Ganesh housing is exceptionally well positioned. Thank you. We can open the floor for questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Janhvi Shah from Share India. Please go ahead.
Jahnvi Shah
Hello sir, are you able to hear me?
B. Ravi
Yes.
Jahnvi Shah
So sir, I just had two questions actually. The timelines of our planned projects have been consistently extended since we first launched them. Like for almost a couple of years they have been extended. Additionally, our earlier cash flow expectations have also been revised downwards. I just want to understand the status of these projects in more detail. Since we don’t have like no more like aggressively, we are not launching new projects. So can we expect these projects to progress in a timely fashion?
B. Ravi
Yes. And we. It’s relevant at this point in time to mention that yes, these projects have been, you know, delayed from whatever earlier timelines we have said. But that is very consciously done. Not as a fact of, you know, getting delayed because of lack of planning, but looking to the market conditions. We have been trying, we are trying to develop the projects when there is a demand for it in the market and not when, you know, when we are ready with it. We are ready with many of those projects. However, unless there is a specific demand, they could lead to inventory, stuff like that.
So while we might have postponed some of the residential project in scz, the Malabar Retreat project which we had done was not even there in the scales when we talked about a year and a half. But we got it because that was an area where we thought that would really do well. And yes, we have been proven there is traction in that. The one which we talk about, the Million Minds in downstream project we had mentioned last year, we had earlier said that we will be monetizing it last year itself. That is FY25 beginning. But as you know, we had said that there’s a lot of traction.
There’s a lot of development happening in the place in and around that. And that again we have been proved extremely correct because of late when we started to monetize that, we have been getting the prices which are much higher than what we had envisaged earlier. We have been getting as I just said, about 30,000 per square meter, which was far lesser than we had really talked about it, almost 20, 30% lower when we had predicted it and we had planned it earlier. So all this has been done with a very clear indication of an eye on the profitability and cash flow always being positive and strong.
And we are in the end, to answer your question, yes, we are confident that all these projects as envisage maybe with a lap lapse of maybe six to eight months or whatever will all come on stream because work on all this is going on simultaneously.
Jahnvi Shah
And so just like one more question since you spoke about Malabar Retreat, which inventory do we have currently. In terms of work in Malabar Retreat or overall in Malabar?
B. Ravi
In Malabar Retreat we have roughly around 280 crore of inventory there that’s under. Construction right now and bookings are happening even as we speak. So that way, yes, the inventory would be of the balance ones which are not yet booked.
Jahnvi Shah
Okay. And so since we are aiming at a growth of around 2030%, shouldn’t expect land sales to remain a significant contributor in the coming FY26 as well.
B. Ravi
No, because see, if you recollect we have been talking about one of the biggest projects being of the land, you know, the Township project. That that is where we have started to do. And this quarter almost the entire income is from that from the project. And therefore that land income as you, you know, as we have been understanding which we, which is one of the verticals is not there at this point in time. This is from the project itself. We had put it in, in the public domain saying that we will be monetizing it. So we have started that already.
Jahnvi Shah
Okay, sure. Thank you sir.
B. Ravi
Thank you.
operator
Thank you. The next question is from the line of Hanil Baghadia from Equicore. Please go ahead.
Henil Bagadia
Thank you for the opportunity, sir. I hope I’m audible. Hello.
B. Ravi
Yeah, yeah.
Henil Bagadia
So on the project side for the ITS EAS park. So if you could just put some explanation as in. So as we did commercial and we just held back to the commercial because we’re seeing a lot of traction and probably 20, 30% more realization. So how would you plan your projection on the residential part? Also given that they slow down plus the residential actually gives you a lot of upfront cash flows. So I mean if we for the plan to, I mean hold more phases of the commercial projects, so how would that work? So some understanding there.
B. Ravi
Yeah, And a small correction, what I said about the 20, 30% higher realization late was the Godavi million, the Township project, not the itsz. ITSCZ as you know, is the phase one is all on lease where I had mentioned that about 80% of that is Already being leased and probably looking to this faction the way we are giving out for fit outs next month itself. And we are going to have the leasing comes from maybe three, four months thereafter. We may plan the commercial that is phase two of million mines. That which was supposed to be later.
We might do that right away residential. You are right. We need to observe how the entire market is behaving in that. And we believe from August onward to be better. So it will have an immediate impact on our retreat project. And depending on how that is going, we can plan the next projects of residential also.
Henil Bagadia
Okay, so the 150 odd crores cash that is sitting in the balance sheet. I guess so that would help us, I mean to the phase two. And even if we plan to go on the same lease model for the phase two, would that be. Is this right? I mean is this the right way.
B. Ravi
To look at it? We are right because there will be two three streams of income. One, which is the profitability of the existing profits, you know, every quarterly performance. Two, we’ll have an excess amount which will be coming from the bookings because land is already paid for in Malabar Retreat. So that’s the money which can be used. That’s an excess cash which is available. And third, of course we will, we will start the lease rentals maybe from the next quarter as you said. Q4, 3 Q4 early beginning. That will help another way to ensure that the cost of the total construction is met from completely internal sources alone without the necessity of a debt.
Henil Bagadia
Okay, so that was helpful. So on the rental side I actually wanted to understand how the rentals have been working out because I mean from February to right now we’ve seen 100 basis correction on the repo side and probably we may see a future small correction or so. So I mean one of the things for the rental yield is I mean your basis points as well as your demand supply equation. So I mean further on if you actually and look say you are doing the phase two right now. So would that make more sense on the sale model or would that still make more sense on the lease model.
B. Ravi
At this point in time phase one is all expected to go on phase two.
Henil Bagadia
So on the phase two, I think so 80% is done on the noisy.
B. Ravi
Yeah. So maybe you know, phase two. Yeah, phase two also we’ll have to really see how this whole is the thing is developing. It could be on a lease model itself. Unless somebody really comes up and gives us that kind of value for the entire building. We keep our options open. But that is only from a deal perspective. But on a strategy perspective it’s expected that phase one and two also will be on the lease model. Phase one, two is getting completed. Phase two also would be on the lease model. And if there is a change, we shall come back to you well ahead to say that no, the model or the strategy has changed for phase two.
Henil Bagadia
From the phase two, if I’m not wrong. So we expect about the 6, 7% yield to. I mean continue. You don’t see a significant fall despite though. I mean the rapper fall just because of the demand being high?
B. Ravi
Yeah, no, absolutely not. Actually, you know, the rentals which we assume to come to the 6,7% yield is far lower than which already we have been getting in phase one. So obviously phase two, you know, the rentals will be higher today. The commercial market of Ahmedabad is having extremely good high rentals. And we have assumed a slightly lower and little more conservative estimate of the 70, 75 which we spoke. We are very clear that we should be able to do better than that. And therefore the yield will actually improve going forward.
Henil Bagadia
Okay, so coming on the regulation side, I mean some days back there was an AWDA board meeting wherein they actually rezoned about 160 meters of land near Godavi and abroad. So if you could give more clarity, I mean there was already there was a zoning that was done earlier. So I mean what was the reason for this rezoning? And I mean was our land parcel a part of that rezoning also? So some more clarity there.
B. Ravi
See if you could follow that news that we have said earlier also that Godavi is the one area which has been earmarked for the Olympic sports city by the government. They have. They have identified an allocated area which they want to develop as a sport city. The government has accordingly notified. But these are not our land because our land is a private land. So this, this is outside our territory. Okay, so that is. That is how they are planning for Olympic preparation.
Henil Bagadia
Okay. Yeah. For the entire parcel.
B. Ravi
Yeah, that is. See this is how after only that survey is only government is notifying those areas before survey they do notify. This was anyway expected, is expected sometime back now. They have done it frankly and it was anyway to happen along with all the development was to happen. It’s likely delayed, I would call it.
Henil Bagadia
Okay, so on the regulation side, I think so. They also discussed in the board meeting that they want to increase the intercity TDRs. I mean to reduce the illicit blood transaction that happens in Ahmedabad. Plus I mean TDRS also in a bit of A short supply in Ahmedabad. So I mean multi city TDR where I mean people holding land passes and side of Surat, Dodra etc. Can also I mean trade the TDRs with developers in Ahmedabad. So does that put a upward pressure on our GDBS given that? I mean we already are developing a lot of projects so we factored that in or are we yet to factor in? And how do you see the early signs?
Rajendra Shah
See if you see that is yet to be notified formally. And as such if the digital TDR is there that will add to the. The developer profitability. So that’s not something which people you are saying that will create a pressure rather that will add to a better.
B. Ravi
Yeah, you are right Anil. It will be an upward pressure for sure. But I would say you know it is a stated objective in all the plans. Once it gets started getting you know notified and then when the execution starts let’s see if there is any impact positive or negative for that matter. I’m being cautious about this. In our opinion the benefit will happen to the people who are having land and who can have this TDR available. And on that side front Ganesh housing is extremely well placed. So if at all there is an impact it will be positive.
Henil Bagadia
Exactly. So we have got a huge land bank in and around Ahmedabad regions. I Mean+intercity TDR is also probably beneficial for us. So I was just thinking.
B. Ravi
Yes. Yeah. Yeah.
Henil Bagadia
TDR also will require some land to be applied on.
B. Ravi
Meaning if you want to be given. Yeah.
Henil Bagadia
Okay sir. And given the current regulation wherein they’ve put a 20 year mobility plan. They’ve put. I mean they are increasing the. The bus rapid transport system. I mean beyond Ahmedabad because of the Olympic city gift and multiple developments. And we are also seeing. I mean things around the third ring road and the. I mean the area where we are also focusing on. So would that also open. I mean a large. Large open up to. I mean the city to a large competition. Given that right now Ahmedabad is more around unorganized players and Ahmedabad specific players with I mean just a very few probably go or somewhere or Godrej who are doing development.
I mean in the Ahmedabad region.
B. Ravi
See yeah. The competition till now hasn’t really impacted every quarter. Each of these have been very few and far in between and concentrated to particular areas only. Especially let’s say Gojre. What you said they have a godric city. That’s where they have been concentrating. They’ve really not gone elsewhere. But having said that see if there is this kind of a development which happens. And of course the infrastructure development and all this is happening in Ahmedabad with a really good speed, with a lot of eye and on the Olympics for sure. And plus otherwise also Ahmedabad has been little in the forefront in terms of infrastructure development.
All that will open up new areas. I think there will be enough for everyone to really come in and have a development done if at all. Really good competition is always welcome. Having said that, it’s history that not many who have come, ventured out of their states or out of their cities and gone into other states have necessarily succeeded barring a few very large developers. And therefore we do believe that if that happens, yes, there will be, you know, good healthy competition. But that’s good for the development and that’s good. And the especially homegrown brands like Ganesh will thrive.
Henil Bagadia
Then. Lastly, contrary to what is happening, I mean the government is increasing, supplies are increasing, I mean the healthy competition. But if we see the inventory build up that was on your slide, I mean 74% of the inventory, there’s a 74% spike in the region where we are, I mean the 1 to 2 crore range and the 2 to 5 crore range, which is shorter by 32 and 42%. So and I mean the absorption is up to about seven quarters. So how do you see this figure going ahead given that? I mean launches have also become very cautious.
B. Ravi
This is how, you know, real estate really behaves. There is always cycles and then therefore when there is demand and a lot of people come into that and suddenly there’s a inventory build up. But we have seen in the last three to four, five years especially this inventory slowly gets absorbed with the growth which is there. And with demand picking up, these are normally very short cycles. And we do believe that this inventory buildup is not going to last for too long and new projects will come up. And that’s where we have mentioned that from the second or third quarter onwards with see good development in the real estate in Ahmedabad.
Henil Bagadia
So a lot of players have heard the news. I’m not very sure on the range, but a lot of players have actually, I mean gone below the belt and they’re Giving about say 1 2% concession on the stamp duty because they’re expecting government to actually reduce the stamp duty. They’re probably coming up with 10, 19, 80, 20 plans. I mean that is increasing leverage on the side of developers. At the same time it is also, I mean it is making the customers more cautious because I mean they are getting very good deals as of now.
B. Ravi
So do you, do you still See.
Henil Bagadia
For a long time or no see that some stopping somewhere.
B. Ravi
This has to stop. To answer the last question first, these things happen when people have become little more over ambitious, if I can say. And those who do not have too much of staying power, then they have bought land and they have constructed and they have to sell for the sake of, you know, closing the inventory so that they can go on to the next project. That happens in a very small pocket or with those unorganized ones. And you might see such kind of concessions being given. But that’s not to be applied or to be thought that it is an industry phenomena.
It is not. It is only specific to those projects, are specific to those builders. And therefore I would not venture to conclude on a generic basis that this will happen. But at the same time there is a sentiment which is there on this basis because of that only precisely earlier I answered to Janhvi’s question that we have been very calculative in that so we don’t have to. We don’t have any pressures to either build or to liquidate. And a similar kind of good company, good builders are there around. So I don’t think it’s an industry phenomenon.
Henil Bagadia
Okay, so thank you very much for the detailed answer.
B. Ravi
Thank you.
operator
Thank you. The next question is from the line of Dipesh Sanchiti from many of finance. Please go ahead.
Dipesh Sancheti
Hi, am I audible?
B. Ravi
Yes.
Dipesh Sancheti
Okay. You’ve guided around 72 crores annual rental from Million Minds phase one. What is the expected stabilized yields on the project cost and how does it benchmark against the commercial assets in Gift City and that catchment.
B. Ravi
Rental is could be in the vicinity of 10 to 12% on the other cost or how much is that?
Rajendra Shah
6 to 7.
B. Ravi
7%. Sorry. Okay. On our. But including our land cost it will be much higher. Right. There’s only on the construction. Okay, yeah. So sorry, what was the other part of the question?
Dipesh Sancheti
What is the expected stabilized deal and how does it benchmark against the commercial assets in Gibbs City catchment?
B. Ravi
There are two different pockets and the people who will be going into Gibson, especially the. The part of it that is the ifsc that we’re different and here it will be both processing and non processing. It may not be one on one comparable, but the rentals, you know, all of 7%. What we just said, the way it is calculated, the current 72 crores. Right. So in all likelihood this is going to be increasing with the rentals being slightly higher than what we had estimated. As I said earlier. And this may not be one on one compared to Kip City.
But I think in and around, that’s my guess. I really need to work on that more. But maybe these are around 6% there too in Gibbsity.
Dipesh Sancheti
That’s in the construction cost or even on the land.
B. Ravi
The land on the project cost on the project. I said. Okay, that’s. That’s where the gift city is looking. Looking like See. Yeah.
Dipesh Sancheti
Can you mention that you are adding something in this.
B. Ravi
No, no, no, you go ahead. We’ll come back to that if there more clarification needed later. Yeah, please go ahead.
Dipesh Sancheti
Yeah, you. You mentioned planned development of SPF potential of around 99.5 billion over the next decade. Could you share how much of that you expect to realize the next three years?
B. Ravi
And also you have over.
Rajendra Shah
Sorry, I missed a question. What, what was the question?
Dipesh Sancheti
The free cash flow potential of around 99.5 billion over the next decade. That is what you had mentioned. Now can you share how much do you expect to realize within the next three years?
Rajendra Shah
We are planning two of the residential phases of ITS as well as one full commercial project that is 191 Southeast. So this three project is being targeted for next three years where the cash flow will be coming gradually as and when every quarter there will be booking and collection because all three, these three projects are built to sell only.
Dipesh Sancheti
So how much will that be around? Let’s say if you cover 2100 crores.
Rajendra Shah
And 500 each for both thousand crores.
B. Ravi
Around 3100. 3100 crores. That means 1/3 of this is what we are talking about. Right? Okay. And also. Cash flow wise it will come. He’s asking for cash flow for three years. Yes, please go ahead.
Dipesh Sancheti
Yeah. And also with your 500 acres in your land reserves which are the mini markets, you are likely to see the next development activity after 1000.
B. Ravi
This is one that 400 acres, 430 acres that we have of Godali. That’s actually an ongoing month. As I said we have been doing that for the last year as well as this quarter. So. And those two residential ones at SZ itself, that’s going to be the one which is coming up apart from what’s already ongoing. And yes, space two of million wines that you know the commercial property that is expected to come on looking to the traction which you have had. So I think if you talk about in the next one year itself, apart from the ones which you are already doing the project at Molavi, there is one line, one salted residential and ssz.
So it is three or Four projects.
Dipesh Sancheti
Okay. And just wanted to understand what is your guidance for the next three years of sales growth as well as ROE? Because right now what we have done is around 35, 36%. You think it will be around in the same line?
B. Ravi
We always have given a guidance for a 30% CAGR on the bottom line. I think in spite of this one quarter which is slightly lower, we do believe that the 30% increase CAGR here on year on the profit will be maintained.
Dipesh Sancheti
Okay. And I could sense that there was some cautiousness in your guidance. Is it because of the market scenario and how do you think, I mean you think that this cautiousness is only for the time being or it it will actually determine your land acquisition strategy also?
B. Ravi
No, it’s actually for the time being one and I’ve not been in the guidance. We haven’t been cautious. We have maintained always that we’ve been doing between 30 to 35% bottom line increase CAGR. And I think I’m still continuing to guide that it will happen. So there’s no caution on that, only on the new projects. And the last this quarter being slightly muted. That’s where I was being cautious saying that we need to really look at what the project start time is before we can just launch them. That’s the only cautiousness. But otherwise we do believe that things are looking up.
Dipesh Sancheti
Okay. And you see that this quarter will be, I mean this first half of the year would actually take care of this. I mean downward performance of the first quarter, you think that way or overall we should look at it the whole year, compare it year on year.
B. Ravi
I think it should be better to compare year on year. Let’s. Let’s see how the next quarter goes. Little early to really talk about it, but it’s more prudent to compare year on year.
Dipesh Sancheti
Okay. Okay. If there are any other questions, I’ll fall back in line. Thank you so much.
B. Ravi
Sure. Thank you. Thank you. Deepesh.
operator
The next question is from the line of Aman from Ariane Capital. Please go ahead.
Aman Tiwari
Yes, sir. So how sensitive is the end user demand in your micro market to mortgage rate movement and what is the base case assumption for the rate cut and the potential demand fill up in H2 26?
Rajendra Shah
See, in terms of the customer sentiment, you say little, a little people will more. The sentiment were disturbed largely because of the economic circumstances. You see, the first quarter has been largely been disturbed because of that Indo Pakistan challenge as well as the international. Whatever has been happening, especially from the US side on Terry, terrible uncertainty, a lot of These things have created a lot of uncertainty in the economy and that actually created some sort of caution kind of sentiment until unless that thing gets settled. So you will see this kind of turbulence in terms of customer sentiment.
But overall on a demand side we don’t see any challenge on the customer demand. The customer demand is still stable as well as it is because the kind of inquiry which we are receiving in our current project as well as the upcoming project also though we are seeing the customer demand is still static. It’s not like customers are not running away. It is just a matter of time when the things getting settled.
B. Ravi
So the rate cut definitely is a very good incentive for people to really come back when the going is good. So that will help in you know, faster growth and faster sale of units. Whenever it happens starts happening. But the first ice has to be broken on the sentiments part of it which we believe in a couple of months it will change. And it’s as Neeraj said, it’s already started to see the green shoots.
Aman Tiwari
Okay. So thank you.
B. Ravi
Thank you Aman.
operator
Thank you. Our next question is from the line of Raj Shah from Capital Bridge. Please go ahead.
Raj Shah
Yeah, hi. So I just wanted to fence on how many square meters is the terminal of the Godhavi project in Q1.
Rajendra Shah
See we have sold around 10 acre of this thing area in the Gujarat square meters.
Raj Shah
Okay, that’s fine. So that helps us understand the split between the land.
B. Ravi
Sorry, come again, we lost you in the middle.
Raj Shah
The acreage is fine even if you don’t have the square meters numbers.
B. Ravi
It’s 41,000 square meters. Yeah, yeah.
Raj Shah
And also based on your estimates, you know, could you help us understand what would be the split between the project profitability and pure land trading in S26.
B. Ravi
Land. Pure land sale will be just a land. If there’s a project, there’ll be construction profit project. Also if there’s construction, you know, development, there’ll be construction profit. So only on a pure land sales basis we had earlier guided that we’ll have 5,000 crores of cash flows from there which actually has been much better than that. And as I said in a little while ago it’s almost like 20, 30% higher already. If you add construction profit to it it’s going to be only better than where we are right now.
Raj Shah
I was specifically talking about S26.
B. Ravi
Talking about. Sorry, FY26. The. The pricing. You’re saying the pricing of this. So I’m saying that let’s say you know q. Q1 we did 41, 000 square meter sales of Punhabi project. Because of that the profitability has come. In a major league. That’s Q1. You said.
Raj Shah
Understanding an estimate for full year FY26. How much profitability would be contributed by projects like let’s say.
B. Ravi
Almost like 80, 90% is what we look at.
Raj Shah
Okay. And could you just help us the type of companies if you could share the name that we’re engaging for the Million Minds Phase 1 projects.
B. Ravi
Sorry Raj, at this point in time no we. We have not yet got the you know permission to really disclose all the names. I think next quarter because that’s when the fit outs have been given. I’ll be in a better position to give that. So excuse us for this moment please. Once we have binding agreement with our tenants, that is the time when we can disclose their names. Right now it is pre loi and Alloy state. We can’t. We are by the ND NDA with them. We. We just can’t do it.
Raj Shah
Fair enough, fair enough. And what would be the current acreage of the company? I think the Last quarter was 535 acres if I’m not wrong.
B. Ravi
Yeah, it will be. Yeah, around 525 acres. Yes.
Raj Shah
Okay, good bit. Okay, and this last question. If you could just share the leisure area for the phase two million by the IT project.
Rajendra Shah
See phase one or phase two you are talking about.
Raj Shah
Phase one is 180,000 square feet, right.
Rajendra Shah
If I’m not wrong, that is a total, total development area in phase one is 1.4 million. And okay, feasible area GLA will be around 8.5 lakh. And the phase two will be almost on the similar line of phase one only because we are trying what we. Are identical joining adjoining building to. So phrases will be identical almost kind of.
Raj Shah
Okay, okay, got it. That’s it. From my side. Thank you and all the best.
B. Ravi
Thank you Raj.
operator
Thank you. The next question is from the line of Preet Nagar said from wealth Fenwiser, please go ahead.
Preet Nagarsheth
Yeah, the question I wanted to ask was that in the Godavi township, what regulatory milestone be it rera, late approval layout approvals infra tie ups would still need to be cleared before the plotted launch.
B. Ravi
See if you’re talking about the construction part of IT on all that’s different because otherwise the provisions are there. You know, unless you’re not really looking at a township per se and therefore there’s nothing else needed for this. But yes, you want to add something.
Neeraj Kalawatia
See the phase one of this township, what we had originally envisaged and the Way it is going is entirely floated development. And if you want to sell plot just like that, there is hardly any permission which is required. Meaning you are, you are essentially selling the land and infrastructure has already reached to the. To the plot where we are selling. So there is not even trunk infrastructure which is required to be developed. So we are just phase one, what we had enemies said we are doing that phase two onwards what to do. We will decide, meaning whether to develop those areas and then sell prevailing land prices.
Then we’ll decide and prevailing finished inventory prices and demand supply in that location and that micro market will guide us to what we should do phase two onwards.
Preet Nagarsheth
So in other words, does this mean that you will be able to move quickly ahead with the phase one for Godavi, say by end of Q2 because there will not be anything regulatory that will hold you back. Is that a safe assumption to make at our end?
B. Ravi
Yes, from a regulatory perspective, yes. But from the actual demand and all that, obviously that will follow the demand and all we do believe that the kind of development which are happening there, this can be completed very quickly, may not necessarily be just one year, but because the parcels are really big. But it can be, can be done in a couple of years. Couple of years of the.
Neeraj Kalawatia
Secondly, see the way prices and vital importance of that area is increasing, it might be meaning strategically important to hold on to that inventory and sell whatever minimum which you are required to sell. Because the way price appreciation is happening over there, it will be prudent to hold on to maximum area which. Which is possible because lot of infra intra work and everything is going around that which is accessibility of that area is increasing. Olympic City is planned around that. So meaning it is anybody’s guess.
Preet Nagarsheth
Understood? No, that makes sense. So in terms of phase one, what is the total area that you’re looking to sell in that particular phase one?
Neeraj Kalawatia
Phase one was 50 acres initially. So we are kind of almost nearing completion of the that phase.
B. Ravi
Yeah, around 18 plus 10, 28, 50% done.
Neeraj Kalawatia
50% of phase one is what we have already done.
Preet Nagarsheth
Right. So in Q1, 1010 and in Q, I think 23 odd acres were sold last.
Neeraj Kalawatia
Yeah.
Preet Nagarsheth
So of the remaining set into spending, you plan to get that out within the. Within Q2, Q3, Q4 of this year?
B. Ravi
Yeah, it could happen. Yeah, it would happen. That’s what we had said earlier and I think we are going on track.
Preet Nagarsheth
And then phase two is something that you would launch subsequently, which could be somewhere around next year.
B. Ravi
Yes, we will talk about that. You know, towards a Later part of this year when we give the guidance for next. But yes, the way it’s going it is highly likely that we should be doing that. That’s possible.
Preet Nagarsheth
Could you help me understand how will you reach that 30% profitable guidance? Say you closed last year at close to 600. You put 30% on that. That becomes say around 787, 70 kind of a number.
B. Ravi
Yeah.
Preet Nagarsheth
Get there. Your land sales will need to have to be much larger because your million mines is going to give you annually what about 70, 75 crores of leaves income.
B. Ravi
Yes, that’s right. And you, you are right in that the question is when you say land sales is. It’s a combination of what we are doing in Godavi plus our third vertical of land which we have been always doing in the last three, four years. A good combination of both these things we said we will be able to do and that’s the reason why we said about 30% CAGR we will be able to maintain. I think the development towards this side will be more clear once one more at least quarter goes quick and that time I’m sure that things would be such that I’ll maintain the same kind of confidence that I’m talking about.
But let’s wait for a quarter.
Preet Nagarsheth
Gotcha. Gotcha. Great. Thank you so much for that.
B. Ravi
Thank you.
operator
Thank you. The next question is from the line of Ishan from Ishan Investment. Please go ahead. Mr. Ishan, your line has been unmuted. Please go ahead with your question. As there is no response we’ll move on to the next question. It’s from the line of Alok Shah from Shri pms. Please go ahead.
Alok Shah
Hello, Am I audible?
B. Ravi
I just want to understand that what is the ratio of the land cells versus the project sales for this quarter.
Alok Shah
And what will be for the whole year?
Rajendra Shah
For this quarter it is 100 from the project sale only.
Alok Shah
Okay.
Neeraj Kalawatia
And for for entire year right now it will be difficult to say because we have many projects which are going on plus meaning that we will be leasing out certain areas. Again we don’t know some of the leased out area might be might be in interested parties might be some. Some of the investor who are looking at lease rental as a return on investment. So.
B. Ravi
But you know Alok, I would say that it could be guest towards the way it’s going to. I think it will be majority in project sales alone. Majority will mean a good majority. Not just 51% but good majority will be all from sales from project sales.
Alok Shah
Thank you.
B. Ravi
Thank you.
operator
The next question is from the line of Amit Agicha from HG Hawa. Please go ahead.
Amit Agicha
Good evening sir and thanks for the opportunity. So my question is connected to the 500 acres of land bank which we have like how much is it unencumbered and how much is year mark for Township?
Rajendra Shah
The 100% of land is unencumbered.
Amit Agicha
And how much obviously earmark for township.
Rajendra Shah
Township. Currently we have around 422 acre balance left because 28 acre we have already sold out. So 422 acre on total is still. Pending.
Amit Agicha
For township as well as the commercial project. Right?
Rajendra Shah
Not purely. I am talking with the township for other projects.
Amit Agicha
They are. The balance of the lands are still there. Okay.
Rajendra Shah
The township was mean for 450 acres of the land across five phases.
Amit Agicha
Okay.
B. Ravi
Yeah, go ahead, go ahead.
Amit Agicha
Yeah. So with Ahmedabad seeing rapid absorption in like say 5 to 10 million ticket segments, what’s your demand forecast in that price category for the coming year?
B. Ravi
Which five? Two? No, no, we are. I mean we don’t have any specific but I think the way it is going, only the last quarter there has been a little good traction on the affordable segment. That’s called an affordable segment. But you know we believe that that will actually move towards the higher than that for two reasons. Why the affordable definition itself has now shifted. You know it’s not anymore 50. It become almost like 80 lakhs. That is 8 million rupees. So I think we will, we will we see traction in the upper segment rather than this.
Sorry.
Amit Agicha
If you track the market also you see majority of the absorption in the 50 lakh rupees is now for last year have been moving to more than 50 lakh category.
B. Ravi
Yeah. Above 1 billion. Yes, above 1 million is something which is little better category for sure. But I would put it little in the middle of 1 to 2 million as the place where you know attraction is happening and people are also willing to move to a little larger accommodation guide. So that I think is the right spot.
Amit Agicha
I think. So you’re saying 1 crore to 2 crore, right?
B. Ravi
Yes, that’s right. Yes.
Amit Agicha
Thank you sir.
B. Ravi
10 million that is. Yeah, thanks.
Amit Agicha
Yeah, yeah. All the best for the future.
B. Ravi
Thank you.
operator
Thank you. A reminder to all participants that you may press star N1 to ask a question. Our next question is from the line of Sandeep, an individual investor. Please go ahead.
Sandeep
Yeah. Hello, can you hear me? Yes, yes, yeah. I want to understand regarding the Gujar with land back. I heard that we got all approvals to build the township back in 2011. 12 something. And still we didn’t build anything in Godari. Am I correct?
B. Ravi
Yes. It’s not that. See there are. The township is one aspect of it but ultimately it’s land. And then we are seeing that, you know, rather than get constricted towards naming it as a township and then following all the rules there are always. Now we see a much better possibility of taking it as a real estate development itself and not as that. So therefore we would not call, we would not like to you know, keep mentioning about that. But I think the development is such that the approvals which we need for construction or for any real estate development, construction plan and all that is the only thing which will be left now for a land and all which you have already started to monetized that is a plotted development.
As Rajendra by said there is no need for any approvals which is online. So effectively today we do have all the approvals in place which is needed to monitor that land except for the construction plan and the approvals whenever we get into the construction.
Sandeep
Okay. So are we planning to go into the construction in Gujarat?
B. Ravi
Oh yes, we will. They will be such kind. There’ll be hybrid development, it’ll be land, it will be construction. They will be as per the requirement in and around that area which we believe it will keep coming up especially with all the development happening in that place. So we think we will need to do the construction also maybe much earlier than what we believe.
Sandeep
Okay. Do we have any number that how much we will construct and how much we will sell as a plotted land or like that?
B. Ravi
Yeah, we are not actually trying to, you know, put that in any boxes because flexibility is always the key in such areas. And especially when now we have talked about flexibility overall rather than restricting ourselves to a township, we would like to continue to have that kind of flexibility. And whichever opportunity, whenever it comes up which gives us our stated profitability, construction margins and all, we’ll go ahead with that.
Sandeep
And regarding this 100th project. Yeah. Did we get all the approach and are we going to start the construction?
B. Ravi
We are. It’s in the almost the final stages. So I think it’s a matter of couple of months when we’ll start the construction.
Sandeep
Okay. Can you, can you give me the idea that how much area we are going to build over there?
Neeraj Kalawatia
See this is 2 million square construction area.
Sandeep
2 million?
B. Ravi
Yeah.
Sandeep
Okay.
B. Ravi
2100 crores value.
Sandeep
2100 crore value. This is a project cost, right.
Rajendra Shah
These are project sales value. Estimated value.
Sandeep
Okay. Estimated value. Okay. And regarding this million minds Only phase one we are constructing. Right. Right now we are not doing anything regarding the phase two.
B. Ravi
No, not yet. But it’s in plan. Looking to the traction I think we should be able to start on the phase two also pretty quickly. But yes, at this point in time we have not launched phase two.
Sandeep
Phase two also will be at the same campus but the same area.
B. Ravi
Oh yeah. It’s all as part of the 64.
Neeraj Kalawatia
Acres same larger complex which will accommodate seven phases which will be adjacent to each other.
Sandeep
Yeah. Okay. If right now. Right now total phase one we have a project was 285 crore, right?
B. Ravi
No, that. That will be. We’ll be operating on that. Because we have done a area as well as the type of construction. Much bigger and much better than that. So we shall come back with you once we start in the next quarter or so. When we this construction complete. We’ll tell you the real project cost of that.
Neeraj Kalawatia
Lot of. Lot of upgradation in specification is what we have done earlier. This used to be. This was supposed to be a sustainable project. This has become a platinum sustainable project. Right now it has got platinum certification. It has got lot of specification improvement. It is one of the. It is the best building as far as Ahmedabad, Gujarat is concerned.
B. Ravi
The cycle area also has changed. There are common things which for other phases also we developed in phase one. So we shall come back when the construction is complete. Sanjeev, we will try to give you a complete detail on the project itself and the value of it.
Sandeep
Okay. Can you give me the idea that how much total expenditure will occur on the phase one?
B. Ravi
But that’s. That’s. That’s the. It’s in the final closure. Right? So we shall be doing that in September. By September. Then we’ll give you. Why the approximate. We’ll actually give you the actual ones itself.
Sandeep
Okay. And out of total 525 acre land which we have today only 425 something we have in the Gudavi and 64 something we have in this million. It.
B. Ravi
Yes.
Sandeep
And the remaining land.
B. Ravi
It’s there where 1191 percentage is coming. And in where the Malabar retreat. And those areas spread over.
Neeraj Kalawatia
And mind you, this 525 acres is one which is fully paid for. As. As we are speaking. There is lot of. There is land acquisition which is happening. For which there are some partial payments which have happened is not included here. Oh.
Sandeep
Okay. Okay. Understood. And I heard that Ganesh housing is not directly purchasing the land but we are purchasing land through third party. Is it correct?
B. Ravi
No, it’s always land. Agricultural land is always purchased to third parties because unless it is converted into na, corporates cannot hold as of the current rules. So that’s what we are doing. That’s what everybody else does also.
Sandeep
Huh? Okay. Okay. Got it, got it, got it. And regarding this Malabar Retreat, is it my. It will be my last session. Total, total construction. Whatever. Whatever number of units we are going to construct out of that, 43 has been sold out. 43%.
B. Ravi
No, no. 43%. Construction is completed.
Sandeep
Okay. And how many units has been.
B. Ravi
I think this quarter and all we will be giving you because last quarter was, as I said, muted. And the sample house was being constructed. Now that is done. So the real bookings started now. So it will happen in this current quarter and therefore, September results will give you a complete update on all the numbers. But at this point in time, it would be good to say that about 15% or so of the little more than that has been booked. 30% booking has been done. Sorry.
Sandeep
Yeah. And whatever income this quarter we have generated, all from the project itself, right?
B. Ravi
It is from the project sales alone.
Sandeep
Yeah. Project sales means the Malabar Retreat.
B. Ravi
Only the Malabar Retreat is under construction. Therefore, we cannot recognize the project unless it’s completed and handover. We cannot recognize sales.
Sandeep
Okay, so project sell. When the Godhavi Land bank cell.
B. Ravi
That’s right.
Rajendra Shah
Plus, they are the units from the completed projects.
Sandeep
Sorry.
Rajendra Shah
They are the units from the complete project which have been sold and booked also.
Sandeep
Okay. Okay. Got it. Got it. Yeah. Thank you. Thanks a lot.
operator
Thank you. Ladies and gentlemen, that was the last question for today’s conference call. I now hand the conference over to the management for their closing comments.
B. Ravi
Thank you. Thank you everyone for the continued interest that you’ve been showing and being a part of our journey. Last year, FY25 was a very record year for us. But this year also is not going to be less exciting. Last year was a launchpad for us. With that robust pipeline that we have and the kind of leadership team, we are sure that FY26 also will be very exciting. Thank you and see you next time. Bye.
operator
Thank you. On behalf of Go India Advisors, we conclude this conference. Thank you for joining us and you may now disconnect your lines. Thank you.
B. Ravi
Thanks a lot.