Ganesh Housing Corporation Ltd (NSE: GANESHHOUC) Q3 2025 Earnings Call dated Jan. 17, 2025
Corporate Participants:
B. Ravi — Corporate and Financial Advisor
Unidentified Speaker
Neeraj Kalawatia — Vice President, Finance
Analysts:
Rajat Gupta — Analyst
Unidentified Participant
Krishna Shah — Analyst
Ishita Lodha — Analyst
Rohit Shinde — Analyst
Sarthak Awasthi — Analyst
Prit Nagersheth — Analyst
Khushwant Pahwa — Analyst
Yasmin Shah — Analyst
Neeraj Badani — Investor
Kshitij Saraf — Analyst
Amber Jain — Individual Investor
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Ganesh Housing Corporation Limited Q3 FY ’25 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Rajat Gupta. Thank you, and over to you, sir.
Rajat Gupta — Analyst
Thank you. Yeah, thank you, Sagar. Good afternoon, everyone, and welcome to Ganesh Housing Corporation Limited Earnings call to discuss the Q3 FY ’25 results. We have on the call with us today Mr Shah, Chief Financial Officer; Mr Niraj Kalawatia, 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 must be therefore viewed in conjunction with the risks that the company faces.
I now request Mr B. Ravi to take us through the company’s business outlook and financial highlights, subsequent to which we’ll open the floor for Q&A. Thank you, and over to you, sir.
B. Ravi — Corporate and Financial Advisor
Thank you, Rajas. Good afternoon, ladies and gentlemen. It’s my pleasure to welcome you all to the Q3 FY ’25 earnings call for Housing Corporation Limited. I trust that you have had an opportunity to review our latest presentation shared on the exchanges. We are pleased to state that the 3rd-quarter of FY ’25 has been yet another remarkable period for Ganesh Housing, continuing the momentum built over the previous quarters.
With every passing quarter, we have surpassed all our earlier numbers and have grown from strength-to-strength, further establishing our credentials as Ahmedabad’s foremost real-estate company. First, the industry highlights. First, India’s real-estate sector has maintained its strong trajectory in the entire year of 2024 with institutional investments in Indian real-estate reaching an all-time high of $6.5 billion, which is about 22% growth from INR5.4 billion in 2023 calendar. This surge was driven by the industrial and warehousing segments particularly, which attracted INR2.5 billion, accounting for about 39% of the total investments, followed by the office sector, which is having a share of 36%. The resident residential sector also showed significant momentum, growing 46% year-on-year to $1.1 billion.
External investments comprised 66% of the total inflows, while domestic investments also rose and they rose by 27%. The final quarter of 2024 was particularly dynamic with about INR1.9 billion investments and local investors contributing 43% of the total inflows, underscoring growing confidence in India’s expanding real-estate landscape. Ahmedabad also has been marching ahead. The Ahmedabad’s real-estate market has reached a significant milestone in 2024 with residential unit sales hitting a 10-year high. Residential sales grew by 15% year-on-year with about 18,400 odd units sold compared to 16,100 in 2023 last year. The mid-range segment comprising properties priced between INR50 lakh to INR1 crore did dominate the sales, but the premium segment also has seen an increase. The year also witnessed a record introduction of 22,000 units, reflecting strong dynamic market. Notably, the office transactions volumes surged by 64% compared to the previous year with 3 million square feet transacted, driven by the city’s evolving economic landscape and robust government support. Ahmedabad’s emergence as a financial and economic hub supported by initiatives like the establishment of the international Financial Services Center has further solidified this position as a real-estate.
Housing also saw a similar traction in the office space with the IT SEZ that million mines attracting huge inquiries. Now on the operational highlights, Danish House continues to play a pivotal role in driving real-estate growth. Let me share a few updates on the ongoing projects. First, retreat first, the project was which launched in the end-of-quarter four of FY ’24 continues to receive strong market traction. Construction has progressed to about 22% and pre-sales have crossed over INR110 crores. Demand from premium apartments has been rising and in our case, it is expected to rise further as construction milestones are achieved. The sample apartment is being readied anytime now and after that we see that this will actually increase. So this project will be a landmark project in premium housing in that area of Ahmedabad and we are sure it will exceed customer expectations.
On the million mines, SEZ Phase-1, this marquee commercial venture is almost one year ahead of schedule with completion expected by end of Q4 FY ’25, that is this year, it’s expected to a good possession for fit-outs by April, May 2025. Marketing efforts targeting major IT players have garnered significant, almost overwhelming interest, reinforcing the confidence with which we started. This project aligns with emerging hub for technology and innovation and we are committed to ensuring its success. I’ll talk about more of that later on in the question-and-answer session. On the one front-page, this commercial project, again another marquee project on SG, it spans about 1.8 million 8 million square feet as a, the process of securing all necessary approvals with the plan having been submitted.
The project is projected to generate revenues of about INR2,100 crores and is set for completion by H2 FY ’28. Its strategic location and design make it — makes it a highly-anticipated addition to Ahmedabad commercial landscapes. To remind you here, the commercial landscape of Ahmedabad was really quite a vacant all these years because after COVID, people had not been investing in new commercial spaces. So our business — actually the entire traction has started and we believe that we’ll really go cases in the coming years. Now on Township, I already informed to you earlier, the surrounding project has attracted huge interest and work on building sports complex is to begin soon. With this, the buzz around this area where we have — where we have one of the largest land banks is building with every passing day.
We believe that the earlier plan where we had earlier announced that we shall be working out the monetization of this in Q2 FY ’26 is on-schedule. So in addition to these developments, we are actively scouting opportunities for various land acquisitions in high-potential areas. Our expensive land-bank remains a cornerstone of our strategy, enabling us to respond swiftly to-market demands while maintaining cost-efficiency. Now coming to the financial performance. In Q3 FY ’25, Housing has once again surpassed all earlier quarters. Revenue surged to INR264 crores, reflecting a 44% year-on-year. EBITDA stood at about INR218 crores, a growth of 51% 57% Y-o-Y with an EBITDA margin at 83%, supported by effective cost management and operational efficiencies.
PAT reached INR160 crores, a 60% increase over Q3 FY ’24, resulting in a PAT margin of 61%. For the nine months ended December 2024, our revenues have reached INR734 crores, which is a growth of 19%. EBITDA has grown by 23% to INR589 crores and PAT has grown by 25% to INR433 crores. This PAT is almost equal to the entire full year’s PAT of FY ’24. This robust performance positions us well to exceed our projected 30% to 35% PAT growth for FY ’25, as already told you to you earlier. Ganesh Housing is poised to capitalize on growth trajectory. By leveraging our extensive land buying, we are uniquely positioned to deliver high-value developments across residential and commercial segments. Our focus remains on mid to premium housing, driven by evolving consumer preferences for spacious and luxury homes. Despite significant investments, our balance sheet remains robust with near-zero debt and strong liquidity. This financial strength enables us to pursue growth opportunities and deliver long-term value to all stakeholders.
We also remain committed to leveraging technology and sustainable practices to enhance project efficiency and reduce environmental impact. Our roadmap for the next five years has already been announced. It includes the expansion of our presence in three growth corridors. With a strong pipeline of projects, we are confident in our ability to sustain growth and drive innovation in the real-estate development. In closing, I want to express gratitude to the entire team for their unwavering support and of course, to the entire community at large, all the stakeholders. Together, we are reshaping skyline while creating enduring value for all our stakeholders. Our commitment to excellence, innovation and customer satisfaction will continue to guide our journey forward.
With this, I would open the floor for questions. Thank you.
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 their touchstone phone. If you wish to remove yourself from the question queue, you may press star. Participants are requested to use handsets while asking a question ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from Akash from Nomura. Please go-ahead.
Unidentified Participant
Hi, am I audible?
B. Ravi
Yes.
Unidentified Participant
Hi, sir. Congrats on the great results. So my first question is on your pre-sales. So can you give me an expectation of what kind of pre-sales can we expect over the next two years? And second question is on the demand trend in Ahmedabad. Like how are you looking at the on-the-ground demand? Any negative signs with respect to demand? And second is like how are you looking at the pricing trends overall?
B. Ravi
Let me start with the demand and the pricing trends first. Ahmedabad demand doesn’t seem to be dipping. In fact, yes, for the last 1/4 probably been a little slower than ever before. But because of the developments which are happening continuously in this area, the demand hasn’t slowed down or it hasn’t dipped for sure. The prices also have been on the increase year-on-year in-line with every other development whether it’s part of the construction or even just inflationary trends.
And the prices for real good apartments or office context the premium one has never really abated. On the pre-sales, if you really see the project which we have today is the Malabar retreat, okay, that is supposed to be completed, let’s say in the next two years. Now that’s the only one which we have on-the-ground. Apart from that, yes, we will be having the residential projects of SSL, now as we had with million mines that are non-processing zones or maybe in the next six months, that will be whenever it is announced, we will be able to talk about the at that point in time. At this point in time, I think we will only talk about retreat. But for the next two, three years, yes, there will be retreat, which probably would have been completely sold-out, then there’ll be SSI residential one and two, one country. And one more addition would also happen is one, which commercial one which I just talked about, that is likely to come up, let’s say, in the next quarter or so, that will add to pre-sales from — starting from next — maybe second or 3rd-quarter of FY ’26.
Not to not to forget the township project, that is the project, let’s Call-IT as a project because it’s a huge land-bank there. That is also going to, as told you just now is going to start maybe in the Q2 of FY ’25, ’26. If that happens, then that will be a big pre-sales itself. So I would want to say that as of today, if you really want to talk about the pre-sales, I think we should wait for a real number, good number. We have to wait for Q2 or FY ’26.
Unidentified Participant
Okay, great, sir. Thank you so much.
B. Ravi
Thank you.
Operator
Thank you. Our next question comes from Krishna Shah from Ashika Stock Broking. Please go-ahead.
Krishna Shah
Hello, am I audible?
B. Ravi
Yeah.
Krishna Shah
Yeah. So my first question is on the margins line. So how are our net EBITDA and PAT margins so high, if you could just explain our moat for these numbers?
B. Ravi
Is that you see your question or should I go-ahead with and-answer?
Krishna Shah
Yeah, this is my first question, if you can answer it possible.
B. Ravi
Yeah. See, these are all historical — historically invested land banks. And therefore price — investment costs have been quite lower. Therefore, automatically, when we sell it at this juncture where the pricing is really high in the market, the margins — the cost being so low, the margins are very-high. So the margins is only a factor of the cost itself being lower.
Krishna Shah
Got it. Got it. So this is a land that is driving this margin. So if you just quickly explain for any of your competitors, what would be the land price as a percentage of the video cost — land cost and what is yours currently?
B. Ravi
Yeah, the price per square are you talking about all other…
Krishna Shah
Land cost — land cost as a percentage of revenue?
B. Ravi
No, we did not get your question exactly.
Krishna Shah
I’m just trying to ask that if, for example, your competitors, what would be the land cost, which would form part of your cost-of-goods-sold Konka, land cost versus what is yours currently as a percentage of revenue, which is why the margins are so high, right?
B. Ravi
So there are two-parts to my answer. One is got it. One is if you are developing a project, in case one is developing a project, generally land cost depends on what area, what location you are having your project, but a good year is provided by so where allows you to withdraw about 30% of the collections of projects, assuming it to be land cost.
Krishna Shah
Okay. Got it. Got it.
Unidentified Speaker
There are — meaning our margins — net margins and our EBITDA margins are high only because of two factors. One, a lot of our revenue and profits are from sale of land and not from projects. And secondly, the land also, whatever we have sold is one which is historically acquired about seven, eight years back. And that is why historical cost of that land was very low. However, this is sold at real market prices. And hence the margins are really high.
B. Ravi
Let me add to this, see, if you really want to have a comparison, Ganesh Housing has been always investing for a future growth. So wherever the land banks have been acquired, they have been acquired with a vision for the next five, 10 years and more. And therefore, historical cost of the land has always been lower in all the projects also. Now that cannot be probably the same if you have to compare with others because all other developers almost really having a similar kind of a land-bank, others may actually a land-bank buying and add value to it in terms of construction. So they cannot be one, you know what I call measuring around for all the projects, but generally, the land cost can be, you know, comparative to the current market prices of that, if it is bought at that time and then develop, it can be very low if it’s been already there in the book in our case. I hope that’s clarifying.
Unidentified Speaker
Got it. Just to add to what just said, in fact, we — I would like — I would go one-step further in stating that we would have competitive edge for other developers because generally we tend to develop projects are only on the land, which we historically own. So I there are my chances of making or making higher margins are very, very-high as compared to anybody who acquires land from market.
Krishna Shah
Got it. Got it. So just a last question. Firstly, how much land bank do we currently have and if that is paid-for everything or not, are there any payments left? And secondly, about the revenue that we have currently of crores in this quarter, what has been the split between land sold versus units sold?
Neeraj Kalawatia
See, total land-bank we have in Housing and subsidiary and which are fully paid around INR535 acre of land and this land is fully paid-for and fully account for. And in terms of the breakup of the sale which will land and say around 90% to 95% of the sale is coming from the land in this quarter and the rest is coming from the project sales.
Krishna Shah
Okay. And going-forward, where do you see this revenue target going?
Neeraj Kalawatia
See this, Malay, at least for coming quarter and the coming year we see momentum will keep on-going on. And subsequently, we will have a substantial revenue coming from this develop project which we explained in the earlier call was project and 1,000. It will have a substantial pre-sale value will add to the top-line and bottom-line.
Krishna Shah
Okay. Okay, sir. Thank you so much. I’ll come back-in the queue, sir.
B. Ravi
And one more thing this mix is going to remain so for some time because SEZ, what we are developing processing area of SEZ is meant for long-term lease. So we will not — we will be incurring lot of expense. We will be constructing projects. However, we will be earning a rent in terms of — in terms of revenue. So there will not be sale kind of thing.
Krishna Shah
Got it. You are currently for annuity income in million, right?
B. Ravi
Yeah. Right.
Krishna Shah
Okay. Thank you so much.
Operator
Thank you. Before we take the next question, a reminder to all the participants, you may press star and 1 to ask a question. Our next question comes from Soheil Kananian from ULJIK. Please go-ahead.
Unidentified Participant
Hello, am I audible?
B. Ravi
Yes, please. You are.
Unidentified Participant
Yeah. So my first question is regarding the 1,000 commercial project. So are we still on-track to begin the construction this quarter and what are the initial market responses to this development?
B. Ravi
No, it is — it may not be starting this quarter because we — the approval, the plans are — we have been completed and the approvals may or may not come by this quarter, but surely the next quarter.
As I said, in terms of the demand, there have hardly been any good commercial space has been given out of late. And people have diversed all their attention from commercial to the residential ones and after the COVID, the impact of the two years up to ’21, ’22. And therefore, the addition of good commercial spaces has hardly been there and now people have started and therefore, we do believe that one percentage demand of that will be high as soon as we start. And generally, we have always been getting a good traction for these kind of places, especially the kind of a building that we are building, right?
And this is going to be very close to a commercial hub, like there is a mall opposite, there are various offices that I mean the also that it’s quite close towards the — you might be knowing Cup of Mall of, Bombay, that’s there in also yes. It’s going to be that. So — and also it is there very close to the next PVD that is the — is the demand. So I think this particular line has been really growing. So we do believe that we’ll get a very good traction for this.
Unidentified Participant
That’s perfect. That’s perfect. Okay. And I had one more question regarding the tried to comment on the trends and consumer preferences in the residential properties in the mid segment and say the premium segment, say 3 BHK also in Ahmedabad or are there any shifts right now towards any other segments?
B. Ravi
No, it will be,, premium, all this has been the ones which have been mostly in-demand.
Unidentified Participant
Okay. Okay. Yeah. I think that answers my questions. Thank you. I’ll be back-in the queue.
B. Ravi
Thank you. Thank you, sir.
Operator
Thank you. The next question comes from Ishita Lodha from SVAN Investments. Please go-ahead.
Ishita Lodha
Hello, sir. Thank you for the opportunities. Sir, is it possible to comment on the profile of the buyers of the land?
Neeraj Kalawatia
That’s not possible right now. No, but they are so very well-known, known developers of, though not being organized and all that. But all are having very, very…
Ishita Lodha
No problem. And I have another question. Our land-bank is about 535 acres. And even in last call — con-call, you had mentioned it was 535 acres and we had sold some land. So at the same time, we are buying some land. So are we buying at the same-location?
B. Ravi
Yeah, it is the still — the buying can happen at different locations, and the selling is happening around the, as we had said last-time too. We do have surplus land around that, which we have done it with development cost objective as well as land sale objective itself. So we do have enough for the townfield project. So other than that, whatever we believe can be a good one to sell it off, we have been selling in that area too. Buying has been happening at different locations on a required basis.
Ishita Lodha
So it is nearby area or it is far off like…
B. Ravi
Nothing in Ahmedabad is really far away. Even Godhavi from where we are sitting right now once 1,000 is a matter of 20 minutes. So at the last — we are buying land not from a distance perspective, we’re buying it from a future development. So even if let’s say this let’s say, 20 kilometers away or 15 kilometers away, we believe that is where the expansion of the city will happen. This is what we have done, whether it was the — the SEZ that million mines what we are doing today, that was what historically many years back. Also was bought 20 years back. So this is well in advance that we’re looking at. So this sense is many times by the time the development comes in, they and the distances are hardly there.
Ishita Lodha
Okay. Okay. So my understanding is right that the thought process behind buying and selling on the land is because we believe that the land where we are buying where the development would be better and there we could do better sales.
B. Ravi
Yeah, it’s a mix also. So even if you believe that the land that we have in, we are selling some places near, these are all areas which are also developing. We actually look at saying that whether it makes better sense to develop that piece of land or it makes sense to sell it off, we are getting a good price. And sometimes the latter wins our development. That’s where we sell. So these are part of the vertical, right? So we can sell wherever we believe that makes more sense than just developing it.
Ishita Lodha
Thank you so much. That’s it from my side. Yeah.
B. Ravi
Thank you,.
Operator
Thank you. The next question comes from Rohit Shinde from Market Memories Wealth Advisors Private Limited. Please go-ahead.
Rohit Shinde
Good afternoon, sir. Am I audible?
B. Ravi
Yes.
Rohit Shinde
Yeah. So I have two questions. So my first question, sir, is how has the Malawar project advanced given the earlier weather-related delay and are you on-track to meet the revised completion timeline?
B. Ravi
Your revised actually Malabar retreat will like all other projects, we are sure that will be completed before time. As you know, Exotica was completed almost 10, 12 months before the due date. The same thing would happen because in a matter of a few months, let’s say, by seven, eight months, the structure has come to almost in the two towers comes to almost INR6 crores and eight crores. So we believe that it’s absolutely on-track, maybe even earlier. And the sale part of it will pick-up once the viewing happens on the sample flats, which is expected to 15 days from now maybe or one month.
Neeraj Kalawatia
Yes. Yes, there are. I think there is slight confusion here. There is no delay in terms of construction. I think you’re coming out the last quarter call where we have said the progress has been a little slower. Now we explained during that call also the progress was lower because of the rainy season. And whenever we account for the total completion period, we account for those contingency also a monsoon period where the work remains lower. So there is nothing like it is not as per the schedule or it is delayed. It is as per the schedule only. And this progress is well accounted for when we take into account the total period of the completion.
Rohit Shinde
Got it, sir. Thank you very much. And my second question, sir, is that you have deployed technology to reduce labor dependency across your projects. So are there plans to adapt other innovative construction methods across projects?
B. Ravi
At this point, see that’s a continuous development. Maybe my goal is also there., would you like to take that?
Unidentified Speaker
We are always exploring new technology even as we — as we develop the township, we can probably use technologies like 3D printing for smaller villas. So we are always exploring technology. So as and when the new projects come up depending on the size and scale of the project, we definitely implement our newer technologies.
Rohit Shinde
Thank you very much, sir, for answering both my questions.
Operator
Thank you. The next question comes from Sarthak Awasthi from Sea Funds Management India Private Limited. Please go-ahead.
Sarthak Awasthi
Thank you, sir, for giving me the opportunity. Am I audible?
B. Ravi
Yes.
Sarthak Awasthi
Yeah. So sir, my question is on the supply-side in the Ahmedabad city. So how much supply we have seen increase in the past five years and how much we are expecting in the upcoming five years because that will be the defining pricing point in that city. So can you brief on that?
Neeraj Kalawatia
Now in terms of the supply, if you see one of the latest report which is published there in terms of the total launches, in fact, they said a reduction in terms of the launches, but whereas there is an increase in the absorption. So why if you see on the demand-side, though there the market is progressing, but on the launches side, there is a little — I’m saying a hold back by the developer largely because of there is one big major event which is taking place in Ahmedabad is the revision of the rates. Now because that is impacting the cost of the project. So last year is which we are the developers are waiting and watch before launching their project.
Unidentified Speaker
So we are not expecting a lot of supply-side, meaning supply-side pressure. And secondly, the areas in which we operate, in fact, Gane housing happens to be the one of the largest developer in that area. So again, a micro geography while also we don’t expect lot of competition from local developers or developers operating in that area. From that perspective, actually we are kind of I would say well-equipped and we are safe.
Sarthak Awasthi
Okay, sure. And my second question is on that we — we have a moat in Ahmedabad, like we have an other companies and we have a land-bank. So are there any plans to cater to enter into new cities, the emerging cities, which can be the future. So where — my question is on the capital allocation part. As we are on the cash surplus, so where we are going to allocate that capital so that the returns to the shareholders should be maximum.
B. Ravi
So at this point in time, we have enough firm hand in terms of developing various projects which we have announced in itself. And therefore, though we do explore other cities, we haven’t yet gone into any other cities and there are no immediate plans of that. Having said that, I don’t think if a very good opportunity comes in, it will be ignore. But there are enough things happening in Ahmedabad, which is keeping us busy. And we do believe that in the next two, three years also, this will continue to be busy.
Sarthak Awasthi
Okay. Thanks. Thank you, sir. And all the best.
B. Ravi
Thank you.
Unidentified Speaker
Thank you.
Operator
Thank you. The next question comes from Prit Nagersheth from Wealth Finvisor. Please go-ahead.
Prit Nagersheth
Yes. Just one clarification. MR. You mentioned the Godhavi Township to be launched by quarter two of the — of financial year ’26. Is that what you had said?
B. Ravi
That’s right. This is at the same time last quarter we had said that looking to all the developments which are happening, we are trying to realign our planning in-line with that. And therefore, yes, as of today is absolutely on-track. They stay as what announced already Q2 FY ’26.
Prit Nagersheth
Got you, got you. And what do you think would be the impact of the or the circle rate increases that have been planned? How do you see that impact, Ganesh?
B. Ravi
At this point, it is very difficult to say exactly because nothing is certain. There have been all various kind of rates, various values, various news which has been coming in, but nothing really concrete. So it’s very difficult to really pinpoint as to what could be the impact. I think we have to wait for the dust to settle to be able to tell anything very concrete. Generally, as you see, this can — it can beneficial also going-forward and it has got its both pros and cons and actually it’s a debate, which is exactly what’s going on right now also in the market. So I think we’ll have to wait for some time to be able to comment on that.
Prit Nagersheth
Thank you. Right, right. Right. And lastly, sir, a booking — bookkeeping question, we seem to be on-track for the target that you had mentioned guidelines for this financial year. What about the next financial year? Any guidelines that we can we can have from you.
B. Ravi
By — we’ll have to first, when we have our budgets done in the next Board meeting before the next year, I think that would be appropriate time to talk about it, it will be year-to-year. So I think in the next call, we’ll surely will tell you what would be the target. Because we have not been giving the projections as such, we have been only giving one year view. So I think we’ll do that in the month of May.
Prit Nagersheth
Wonderful. Thank you so much. Wishing you guys all the best.
B. Ravi
Thank you, Prit.
Operator
Thank you. A reminder again to all the participants. If you wish to register for a question, please press star N1 on your touchstone phone. The next question comes from Khushwant Pahwa from KPAC. Please go-ahead.
Khushwant Pahwa
Am I audible?
B. Ravi
Yes, you are.
Neeraj Kalawatia
Yes.
Khushwant Pahwa
Congratulations on a great set of numbers. My question is regarding your Project Mind. You mentioned that you will be finishing the construction in Q4 of current financial year and giving it for fit-outs April onwards. Correct. I also recall one of the discussions in previous con-call wherein we said that as per IndAS 115, we can only book revenue when the construction is complete or OC is given and sale deal is happening. So just wanted to understand when do you see the revenue for this project getting booked in this fiscal year or next fiscal year?
B. Ravi
This will be in FY ’26 starting. I’ll explain, as you know, million mines is the Phase-1 what we are doing right now is all going to be on the lease-out basis. It’s going to be giving us continuous annual lease rentals. And the kind of a traction I told in my opening remarks, I’ll be talking about the traction in the SEZ, now the time to talk about the million lines.
Though there are about 14 floors, 14 or 15 floors, including the utility one, we — the kind of a marketing which has been done and it’s been continuously happening at various roadthroughs in various cities, top — top price in tier cities, we have got an inquiry for leasing out almost 30 floors. So it’s almost double than what we have available as an inventory. That is the traction which I earlier also turned toward about the commercial spaces are really receiving very good attraction in the city of Ahmedabad.
So with that, we do believe that though earlier in terms of whatever we had said that leased happens once the building is completed, it might happen for — in the next six months fully leased-out. The way the traction is that we may be able to get a majority of the lease rentals in the next FY ’26 itself. So almost like what we had said about INR70 crores is the lease rentals we’ll be earning on that year-on-year. So the way it is, it will be more than INR70 crores, it’s not really less, but even more than that. And also the lease-out can happen because of that the demand which has come up, it can happen quite immediately, giving us almost the entire INR70 odd crores or more in the year FY ’26 itself. So the revenue will start flowing. It’s not going to be sold. See, it was sold yet, it would have been as and when sold, it would have come up. We’ve released out — it released rentals for that month itself.
Khushwant Pahwa
Understood. Understood. And just one more question. Your — your land back continues to be around 535, 35 acres. Can you just give an idea about how much land was bought and sold-in this quarter in terms of acreage?
B. Ravi
We can tell you the sold, the ones which are there in acquisitions can always be 531 has already acquired, of which about 25 26 acres have been sold and there will be more additions also because there are things which have been added.
Khushwant Pahwa
All right. Thank you so much. Congratulations and all the best.
B. Ravi
Thank you very much.
Unidentified Speaker
Thank you.
Operator
Thank you. The next question comes from Yasmin from Antique Stock Broking. Please go-ahead.
Yasmin Shah
Yeah, hi, congratulations on a good set of numbers. Question pertains to basically, one is land sales. I think you sold around 20, 25 acres last quarter also, right, a similar number this quarter?
B. Ravi
True, very true. Yeah, that’s around the same 23 and now 25 correct.
Yasmin Shah
And what was the sales from that in terms of crores or rupees?
B. Ravi
I think it was almost like INR250 at — 90%.
Yasmin Shah
Sorry, 90%
Neeraj Kalawatia
. 90% of the total remaining of that quarter comes from the land, 266% to 90%.
Yasmin Shah
So that is on the land sales.
Neeraj Kalawatia
Yes, yes, quarter.
Yasmin Shah
Okay. Yes, sir. Say you said this land was in that belt, right?
Neeraj Kalawatia
Not necessarily like we have a lot of surplus land in and around, like there area like,, which are to the area where we are holding a surplus land also.
Yasmin Shah
Right, right. So my last question, so basically last two quarters, you wouldn’t really had a lot of house sales, but more of land sales is what is driving the — yes. And going ahead, you are expecting probably home sales to kind of and rentals to kind of drive the numbers, right?
Neeraj Kalawatia
Yes. Both of them. In fact.
B. Ravi
But three things, land. Land being this vertical will always be there. Then there is this Godhavi, as I just said, starting in Q2, that will be actually project sales. Then there are these rental incomes which will start next year itself from million miles Phase-1. That will be also all project sales and annuity. So I think these are the things it will attribute to the sales in FY ’26.
Yasmin Shah
Right. And my — okay, understood. So — and your annuity income what you’re targeting is upwards of INR70 crores INR100 crores, right?
B. Ravi
INR70 crores.
Neeraj Kalawatia
INR70 crores per annum.
B. Ravi
Upwards of INR70 crores, correct per annum.
Yasmin Shah
That will come in from Q1?
B. Ravi
No. Yeah, Q1, but may not be an entire amount of INR7 crores happening in — or INR6 crores happening in the month of April itself, but a majority of the INR70 odd crores will happen in FY ’26, give maybe let’s say, 70%, 80% of that because leasing out, when we give it out — for pit outs in April, May, there will be a couple of one or two months which we are already here. So we can take safely 10 months of rental probably of this, the next year…
Yasmin Shah
INR60 odd crores per annum is what you’re saying, right?
B. Ravi
Yeah. Yeah. Yeah, not per annum only for FY ’26, thereafter to be the full 70 each per annum.
Yasmin Shah
Right, understood. Okay. And any rough number in terms of this project, what could be the potential in terms of sales once you have the blueprint or you start executing the phases?
Neeraj Kalawatia
See, we have already given that number on a basic plot to plot game where if you develop the entire area on the basic plotting side, it gives us roughly around the sales potential of INR5,000 crore.
Yasmin Shah
INR5,000 crores. Okay. Yes. And how many acres would that be?
Neeraj Kalawatia
That is a 450 acres.
Yasmin Shah
Okay. Okay. And all of it is owned by you, right?
Neeraj Kalawatia
Yes, yes.
Yasmin Shah
Okay. Okay. It will be over how many years?
Neeraj Kalawatia
It is part of our seven — seven to 10 years of plan.
Yasmin Shah
Okay, understood. All right. All right. That helps. Thank you very much and all the best.
B. Ravi
Thank you.
Operator
Thank you. The next question comes from Sweta from Monarch AIF. Please go-ahead.
Unidentified Participant
Hello, am I audible?
B. Ravi
Yes,.
Unidentified Participant
Yeah. Hi. So I had just two quick questions. I believe earlier you had mentioned that 1 million mines commercial Phase-1 may also be sold-out because it was seeing a good traction. So is that plan like — like are we not going ahead with the plan? Are we sticking to leasing the commercial Phase 1?
B. Ravi
We would — we always preferred leasing Phase-1 and therefore, I think if the traction for leasing is there, we will go-ahead with that rather than sales.
Neeraj Kalawatia
That option is still open. If you get a good kind of opportunity there also.
Unidentified Participant
So by when could we have some clarity on that part, say, in the next two, three quarters?
B. Ravi
The way it stands today, the almost the entire first phase would be on lease basis and therefore, the rentals will start-off, as I said, maybe after the period, but for at least 10 months for next year from the end of first-quarter or second-quarter of FY ’26.
Unidentified Participant
Understood. Understood. And just one clarification. So this 500 acres of land inventory that Ganesh Housing has, that is over and above the future development plans, right?
Neeraj Kalawatia
This is part of this land-bank is part of that future plan, which we have already disclosed.
Unidentified Participant
Understood. Understood. That’s it from my side. All my remaining questions are answered. Thank you so much.
B. Ravi
Thank you.
Operator
Thank you. The next question comes from Neeraj Badani, Investor. Please go-ahead.
Neeraj Badani
Hi, hi, everybody. So my question, one question was regarding the million SEZ. So from what I understand, we do have a lot of inquiries. Now SEZ usually have to occupy usually get benefits the previous sections of the Income Tax Act. So will the occupiers of million mines also get that benefit, have we got those provisions in-place?
Neeraj Kalawatia
In terms of income tax, now that benefit has gone that the scheme which was available for the, the contract cost has already been offered. But now you see more than the income day, GST is the largest tax component for any business nowadays. And this is at — this is a GST tax loan. So as against the tax, the GST benefit will be much larger to the unit holders.
Unidentified Speaker
Apart from that, government has announced lot of other benefits and to unitholders and developers of. All those benefits will be available. However, the income tax benefit, what you just said, that is something which will not be available.
Neeraj Badani
The benefit is available in Gift city from what I understand when I just read online regarding the Gift City, which is basically our closest competition for all these MNCs in corporate setting up shop at your million mines project because if they will compare a Gift City and million mines, then what do you think where do we stack-up? Because I’m pretty certain that Gift City of entities are actually getting ties.
B. Ravi
These areas, see, it’s not exactly one-on-one comparison, I’ll tell you what tax benefits are there in Gift City are in the IFSC zone only. It is only for the financial services. What we have in SEZL is a combination of SEZL and non — so the 50-50, we can have SEZ unit 50 and 50 coming non-SEZ units also. So it is not exactly for the reasons of tax benefits that people will be coming to this, but for the infrastructure. But for our Gift City, it will be only for the financial services sector going for the tax benefits. So that’s a very difference between these two.
Neeraj Kalawatia
Now you see…
Neeraj Badani
I get it like million minus is IT and I think you are focusing on the tech part of it and Gift City is setting — is looking at the finance participend is a fair point and well taken. But like in that case, when we are talking to different — I don’t know-how it is in the rest of the country that — so you are saying that nowhere you know when a new IT company sets up a shop in the SEZ, they don’t get income tax benefit anymore. Is that right?
Neeraj Kalawatia
Because that income tax benefit is withdrawn now.
Neeraj Badani
Okay, okay.
Unidentified Speaker
Yeah, okay. Okay. And this was IT-enabled services scope is very, very wide to include virtually all the businesses which are — which one can think of. So not only financial services, which is the case with has again that also again a new manufacturing area, which is called, which is going to have a lot of semiconductor and battery, EV, these kind of manufacturing capabilities over there. Even those kind of companies who are setting up shop there are looking to have space at million mice because first of all, we are closer to them than any other SEZ electricity. So we are much closer to them, plus they get a lot of benefits on R&D and other services as well, not only services.
B. Ravi
We have done it ourselves and we have decided.
Operator
Sorry to interrupt sir, we are losing your audio in between.
Neeraj Badani
Hello, am I audible now?
Operator
Yes, sir.
B. Ravi
Yeah, Neeraj.
Neeraj Badani
I’m saying that like you — so I understand that gift is gift sitting, the land belongs to the government and they lease-out to various developers to make projects. So there are some restrictions. But here in circles, this is a private land owned by the Ganesh Housing Corporation, right?
B. Ravi
Yes.
Neeraj Badani
So this is our internal decision that we have decided about to give it out to IT. So tomorrow, if we want to give it out to, say, a financial guy also, nobody stops us. That’s why I ask.
Unidentified Speaker
Yeah. So for the special economic zone region, we have — so anything from IT services, manufacturing-related, R&D related, we can do anything like that. And in the domestic region, which is the other 50%, we can give out offices to anyone. It doesn’t matter the industry.
Neeraj Badani
Okay. As long as they are exporting our services and stuff, it’s fine with you. Like we do qualify for GCCs, right, like from say after — yeah, yeah. Okay. And now that since we have so much demand for million mines like explain it, instead of 14 floors, we actually have a demand of 30 floors coming in, do we plan to you know like prepone our Phase-2?
B. Ravi
Bang on, that is almost certainly likely to happen. We’ll — of course, we’ll have to wait for a proper announcement on that, but you are right that looks to be on the card for sure.
Neeraj Badani
Okay. And this million, we are going to lease-out as a core and shell basis or I’m gonna finish it and give it.
B. Ravi
They aim at giving it a score shell. If somebody asks for it and we have to do it for them, we charge them and do it for it also…
Neeraj Badani
Because our revenue realizations is pushed forward if we finish and give.
Neeraj Kalawatia
If we give govern in our revenue can start flowing in immediately. So yes, okay. And any particular reason as to why we are so bullish on the Guabi area. I am not from Ahmedabad, I’m not from Gujarat, so I don’t really know if you could throw some light as to what is the realization because I don’t know if it’s a rumor or something, somebody had told me that probably that is the reason where the Olympic village is supposed to be setting up or something like that. So I mean, I’m just trying to corroborate is this — that is the reason why you’re so bullish on because when you’re selling land also, you’re still buying it in that area.
B. Ravi
Now, I’ll tell you. On the call, I can only say that there is a lot happening around that period. I would definitely wish that you come over here. We will actually have a personal meeting, maybe all of you who can come over and we’ll take you and give you a proper presentation on that. But on the call, call because it can be — you know, it can take a long-time to really explain what all has been happening. I can tell you there is something very interesting happening around that place.
Unidentified Speaker
Yeah. And for that matter, even if Olympic doesn’t happen over there for arguments sake, if we say that if it doesn’t happen, even in that case also the Godhawi happens to be natural extinction of South Bopal of predominantly saturated residential area, which is going to extend to that area. So anywhere city is expanding into that area and we will have good in that.
Neeraj Kalawatia
Also, one more effort that I can give is that we — the most prime area is SG highway where all the main clubs are located. So clubs become like certain hubs, so Club, Raj Club, etc. Now is even before the newer ones that Karnawati and Rajpad are building. So it is in-between that and people are developing things up ahead of Gujabi already. A lot of developments are happening ahead of. There is a bank space in-between. So a lot of development is poised to happen over there.
Neeraj Badani
I might have missed this, but so essentially, are you planning to shell plotted lands only or will it be a mix?
Neeraj Kalawatia
Is it the current number which we have given that is largely on the plotted development only. So on a conservative basis. As and when…
Neeraj Badani
The entire 450 acres of plotted land will catch you INR5,000 crores?
Neeraj Kalawatia
Yes, yes, yes. And if the development horizon changes, then this number will automatically be increased to that extent.
B. Ravi
Yes.
Neeraj Badani
Okay. Okay. Thank you so much. All my questions are answered. Thank you so much.
B. Ravi
Thank you.
Operator
Thank you. The next question comes from Kshitij Saraf from Tusk Investments. Please go-ahead.
Kshitij Saraf
Hi, good afternoon. Congratulations on the continued good performance. I wanted to understand, since you focused only on Ahmedabad, are you planning to add more asset classes in the mix. So you’re focused on resi and commercial right now. Are you going to look at likes of hospitality, likes of retail and sort of widen your breadth in terms of your development?
B. Ravi
The master plan at that million mines also has this kind of big deal.
Unidentified Speaker
So if you just check the website of million mines, you will be able to see the master plan where we have — we are going to come up with co-living spaces, co-working obviously will obviously be there in the commercial part, but there will be co-living spaces, hotels, service apartments. So all of these are future plans. So once we have — once we have a certain amount of development already there, then we will execute these projects. So in the coming — in the future call, we will address these questions in more detail.
Kshitij Saraf
Okay. Got it. Got it. Thank you. And from a cash deployment standpoint, we have — we have the cash on the books. Are you planning — are you planning to pay it out in the form of dividend primarily?
B. Ravi
A dividend decision to be taken at the end-of-the year-by the Board? Yes, I mean, we had given the dividend last-time. That was a good payout of more than 20% and…
Neeraj Kalawatia
110%.
B. Ravi
But, being more than 20%, 20%. So I think we have — giving the kind of a numbers we have shown and what we likely show, that could continue, but it’s little early to say how will that be. Of course, there are a lot of projects to be used. So there will be a good — it will be a very proper decision taken by the Board, which will happen in the next four months.
Operator
The line for the current participant has been dropped from the queue. We’ll move on to the next question. The next follow-up question comes from the line of Khushwant Pahwa, KPAC. Please go-ahead.
Khushwant Pahwa
Yeah. Thanks once again. Just one question. You know, we see that about 90% of the revenue and to that extent profits are coming from sale of land. And even though the rental incomes may pick-up INR70 crores next year from million mines and all, the mix of land may continue to be a be significant in the overall revenue-share. So are you expecting to maintain the run-rate of land sales quarter-on-quarter? Any thoughts if you can share any guidance that you can give broadly?
B. Ravi
I’ll give you a very short answer to this. If you — if you go-ahead with the plans that we have announced about Godhavi, whether it’s project or construction or as a plotted development from Q2 FY ’26, the majority of the revenues would be from the project sales and not land sales. Now this land sales is always a vertical, but it’s not that it will continue to be in the similar magnitude as we see now. So this is an opportunity which we are seized at this point in time. Next year onwards, the way the project developments are happening, majority of the revenue would be from the housing, from lease rentals, from and the like and maybe from one or so in terms of the project after the execution. So it will not necessarily be a significant portion for all — for the next three years or something. But yes, for one or two years, it can be significant or if you — the project of starts off next quarter, next, as I said in next year, then this land sales will become a lesser significant number of the total.
Khushwant Pahwa
Okay. Understood. But then the revenue recognition for those will happen only when we are able to complete those projects, right? So there may be a lag.
B. Ravi
I mean, sorry to interrupt, but is not only construction, it can also be plotted. So if it is plotted, then the revenue recognition happens immediately.
Khushwant Pahwa
Understood. Understood. Thank you. Thank you so much.
B. Ravi
Thank you.
Operator
Thank you. The next question comes from Amber Jain from — an Individual Investor. Please go-ahead.
Amber Jain
Hi, sir. Congrats first of all for the fantastic result. I just wanted to know as Speer is one of your marketing partner in million mind. So by and they are one of the — I think so prominent IT leasing player involved. So is there any plans for this in this million mines project for getting off some data center or something like that? This is — yeah.
Neeraj Kalawatia
See, as of now, in the total SEGI portion, there can be a potential. But for Phase-1, currently, the data center cannot be set-up in this kind of building that require a different kind of infrastructure altogether. So maybe in the total area, it can be set-up as part of some of the strategy planning, but not in Phase-1.
Amber Jain
Okay. Okay. Okay. And as if now, as you said that there are a lot of traction in terms of inquiry in million mines, but any LOIs or any intent that has been closed or it is still under discussion on negotiations?
B. Ravi
No, no, I mean, there are very close to LOIs itself. I think we’ll have to wait for just a month, two months where we’ll be able to make a larger announcements on this.
Amber Jain
Okay. And sir, the last question, the one projects that you are planning to start, is there any pricing visibility of it that what pricing we are planning to launch or something on that? It is yet under discussion?
Neeraj Kalawatia
In terms of what sellable pricing you’re saying?
Amber Jain
Sellable pricing, yeah, per square feet of maybe total revenue that we are planning maybe.
Neeraj Kalawatia
That is largely in the range of INR6,000 to INR7,000. INR6,500, you can say the INR7,000 are sellable area.
Amber Jain
Okay. Okay, okay. So this was my question. Thanks a lot, sir.
Operator
Ladies and gentlemen, that was the last question for the day. I now hand the conference over to the management for closing comments.
B. Ravi
Thank you, everyone. That was an interesting call. Thanks for all the questions. As said, we’ll continue to focus on performance and delivering all our promises. We look-forward to seeing you all soon, maybe in and also for the next quarter call, this will be the yearly call. Thanks once again, have a nice day.
Operator
Thank you. On behalf of Ganesh Housing Corporation Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.