MAX ESTATES LTD (NSE: MAXESTAT) Q3 2025 Earnings Call dated Feb. 10, 2025
Corporate Participants:
Sahil Vachani — Vice Chairman and Managing Director
Rishi Raj — Chief Operating Officer
Nitin Kansal — Chief Financial Officer
Analysts:
Mohit Agarwal — Analyst
Pritesh Sheth — Analyst
Ritwik Sheth — Analyst
Vikas Mistry — Analyst
Krishna Shah — Analyst
Ronald — Analyst
Presentation:
Operator
Ladies and gentlemen, you have been connected to Max Estates Conference Call. Please stay connected. The call will begin shortly. Participants who have been connected to Max Estates Conference call. Please stay connected. The call will begin shortly ladies and gentlemen, good day and welcome to Max Estates Limited Q3 FY ’25 Earnings Conference Call. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on-date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. 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 this conference call, please signal an operator by pressing zero on your Dashtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Bachani, Vice-Chairman and Managing Director, Max Estates Limited. Thank you, and over to you, Mr Machani.
Sahil Vachani — Vice Chairman and Managing Director
Thank you, and good morning, everyone. Thank you for joining us on this Q3 and nine months FY ’25 earnings conference call. I’m joined today by my colleagues Rishi are Rishi Raj, who is our Chief Operating Officer; Nitin Kansal, who is the CFO; and Goel, who is the Head of Investor Relations and our IR partners from FGA. The earnings presentation has been uploaded on our website and stock exchanges.
To give a brief overview, the Indian real-estate market continues to witness robust growth with MCR, Delhi, NCR leading the way. The sector has seen strong sales and new launches driven by increasing disposable income, infrastructure upgrades and evolving consumer preferences. On the commercial real-estate side, the industry has seen record office leasing activity, wherein gross office leasing transactions have increased by 27% in the year 2024, reaching a historic figure of 79 million square feet across all the nine major cities. This surpasses the pre-COVID peak of 2019 and Delhi NCR approximately accounts for about 15% of the total leasing volume.
The key market drivers for this as we see it are is driven by the expansion of global capability centers, the rising domestic demand, increased adoption of flexible workspaces and a general shift towards premium office spaces. In 2024, GCCs alone contributed about 40% of the total office leasing. Around the sector trends, BFSI, e-commerce and technology firms collectively accounted for about 58% of the leasing activity, while domestic firms led space absorption contributing 45% to the overall leasing. On the residential side, the market reached a 12-year high in annual sales with properties in the INR20 million to 20 million to 50 million range saw a 62% year-on-year growth, driven by rising aspirations and confidence in India’s economic trajectory.
The NCR market dynamics, the market saw a slight correction to about 28,000 odd units and developers launched about 30,000 units in the second-half of H2 2024, aligning with buyer demand and around infrastructure growth. Primarily luxury and premium housing remains strong, reinforcing the region’s appeal for high-end home buyers and investors. On inventory and market trends, we saw that the unsold inventory rose 3% to about 106,000 units overall with quarters to sell at seven — about seven quarters. However, on the premium and luxury side, they showed stronger absorption with the quarters to sell of around four and in the 20 million to 50 million price point and 3/4 in the 50 million to 100 million price point, which we believe is a very healthy level given historic trends.
At an overview for Max Estates, the company has surpassed its full pre-year sales — full-year pre-sales guidance within the first-nine months, achieving about INR5,200 crores of pre-sales in the first-nine months itself. This reinforces our strong execution and market leadership position, demonstrating a year-on-year growth of nearly 300%. This is backed by collections of approximately INR750 crores as well. Our latest acquisition of 10 acre land parcel in Noida in sector 105 adds 2.6 million square feet of mixed-use development potential with a gross development value of INR3,000 crores, plus an annuity income potential of INR140 crores, which has enabled us to build now a truly well-diversified portfolio of about 17 million, 17 million square feet within Delhi NCR across residential, commercial and mixed-use development opportunities, positioning us for sustained growth in the years ahead.
A robust pipeline of 7 million square feet with a GDV potential of INR14,000 plus crores is planned for FY ’26 and ’27, further strengthening our growth outlook. With a very solid balance sheet and INR1,300 crores of growth capital raised, we are well-positioned to scale further. I’ll now invite Rishi to share some business updates. Thank you.
Rishi Raj — Chief Operating Officer
Good morning, everyone. Let me cover the business updates in three sections, mixed-use, residential and commercial developments. First, mixed-use development. As Sahil updated, we have won the bid to acquire 10.33 acres in Noida, Sector 105 adding 2.6 million-square-foot of mixed-use development with GDV potential of INR3,000 plus crores and annuity income potential of INR140 crores, annuity rental income potential of INR140 crores. This deploys INR300 crore of existing capital, including an upfront payment of INR284 crores, which is 40% of acquisition cost. Balanced cost is to be paid-in eight half yearly installment at an interest-rate of 10.5% to Noida authority.
Coming to our second mixed-use development, the Delhi One project in Sector 16 B Noida received approval and we are on-track to take
Operator
Sorry to interrupt you. We have lost your audio.
Rishi Raj — Chief Operating Officer
Hi, can you hear me?
Operator
Yes, and now we can.
Rishi Raj — Chief Operating Officer
Okay, I’ll repeat from Delhi 1. The Delhi 1 project received end-clad approval and we are on-track to take-over the entity housing the development with expected launch in FY ’26. It has 2.5 million-square-foot of development potential between sold and unsold units and a GDV potential of INR1,500 crore from new sales, INR500 crores from receivables of unsold — upsold units and annuity income potential of INR120 crore from commercial office and retail developments.
Next on residential development, with the successful launch of Estate 128 Phase-2, we have achieved INR869 crores in pre-sales. This takes the combined project sales for both the phases now at INR2730 crores. So we have in total collected INR550 crores from Estate 128. Coming to Estate 360, our Gurugram launch, we have recorded INR4,325 crores in pre-sales with 90% of units sold and INR645 crores collected. Our plan is to launch 18.23 acres adjacent to Estate 360 in calendar year 2025 is on-track. This has a development potential of 4 million-square-foot and GDP potential of INR9,000 crore. And finally, coming to commercial portfolio.
First, we are in the process of acquiring three flows in Match Towers for INR105 crore, consolidating our ownership. Post-acquisition, Asia under our ownership has increased from 3.1 lakh square-foot to 3.6 lakh square-foot, representing 63% of total. And with this, our annual rental potential will increase from INR42 crores to INR50 crores. Coming to Max Square with a leasable area of 6.8 lakh square-foot, we have achieved 93% occupancy with rental premium of over 25% compared to prevailing market rate in the micro-market. It features a significant leasing transaction that we recently closed of approximately 1,50,000 square-foot, making it one of the largest GCC deals in Noida.
Coming to our underdevelopment projects, Max Square 2 and Max 65 in. Both of them are under-construction, which is in-full swing, it is progressing well and our completion is expected in-quarter three calendar year 2027 for Max Square 2 in Noida and Phase-1 of our 65 project in Gurugram. For second phase of 65 project in Gurugram, occupancy is expected by quarter-four of calendar year 2028. Overall, our commercial portfolio, including operational assets under development and those at design stage at peak occupancy is poised to generate INR725 crore in annuity rental income over the next five years. Thank you. Coming to our growth outlook, we remain committed to expanding our development pipeline with a strategic focus on acquisitions in Delhi NCR.
And over next three years, we aim to achieve pre-sales booking of INR21,000 crores cumulatively and of this between development projects already in Gurugram and Noida, we have already secured INR14,000 crore of GDV potential and set for launch within next two years. With robust development pipeline, we are very confident to continue to add as per our guidance, at least 3 million-square-foot of development potential every year in the near-term. With this, I hand over to Nitin for financial highlights. Thank you.
Nitin Kansal — Chief Financial Officer
Thank you, Rishi. Good morning, everyone. I’ll — to begin with — I’ll start with the financial highlights for the nine months ended for financial year FY ’25. The revenue stood at INR121 crores. The EBITDA stood at INR35 crores, profit before-tax of INR16 crores and profit-after-tax of INR12 crores. Lease rental income showed a growth of 87% year-on-year, clocking INR83 crore in the nine months. The revenue from the facility management arm, Max Asset Services stood at INR30 crores. The total leased — commercial lease area in the portfolio stood at 12 lakh square feet at this point of time. On the liquidity front, currently, we have a debt of INR1,125 crores, including an LRD lease rental discounting debt of INR800 crores.
Against that, we have a cash-and-cash equivalents of INR1,600 crores, resulting in a net cash surplus of INR300 crores. On our capex, we are planning to deploy an amount of close to INR875 crores in next two years across our commercial portfolio. These projects have already achieved a financial closure through equity commitment from New York Life and the raising of debt from a consortium of banks led by SBI and ICICI Bank. In residential space, we are planning to deploy an amount of close to INR5,000 crores across as already launched assets. This capital is expected to be deployed from the sales receivables from the existing sales. The total collections from the residential portfolio stood at INR1,95 crores. Okay.
On the capital utilization and growth outlook, and around INR350 crores from the QIP funds has been earmarked for the sector 5 — Sector 105 upcoming development. Remaining capital will be strategically deployed for future acquisitions and expansions. With a well-capitalized balance sheet, we are well-positioned to execute our planned developments with — while maintaining financial difference — discipline. With this, we now open the floor for question-and-answer session.
Questions and Answers:
Operator
Thank you very much. We’ll now begin with the question-and-answer session. Anyone who wishes to ask a question may press star and 1 on their touchton telephone. If you wish to remove yourself from the question queue, you may press R&D. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star and 1 to ask a question the first question is from the line of Mohit Agarwal from IIFL Securities. Please go-ahead.
Mohit Agarwal
Yeah. Thanks and congratulations on a very successful launch in Noida. My first question is on the business development deal announced in Noida. So you’ve mentioned that there are consortium partners also. So could you elaborate on what is the attributable share to max estates, both on the residential side and on the rental business side.
Nitin Kansal
Thank you, Mohit. The share which is attributable to Max estates is 80% across both the residential and the commercial side.
Mohit Agarwal
And the capex outlay will also be in the same proportion or you are supposed or is — or you are supposed to — the entire INR700 odd crores is to be put in by stage.
Nitin Kansal
So we will be trying to achieve the financial closure of this project through the combination of debt and equity and the existing partners, the other consortium members will bring the respective share of equity required for the project.
Mohit Agarwal
Okay. Okay. Understood. My second question is, in your presentation, you mentioned you’ve given a margin guidance. So I see that given 40% to 45% for Noida project 128 and about 20% 25% for 360. Could you elaborate a bit why the difference and you can explain, is it because of the JDA arrangement? So I think there’s a big difference. So if you could explain that? And also these margins are gross margins or are these EBITDA level margins? Yeah. And yeah, and I think associated with that is, do we assume that the entire INR4 million, INR9,000 crore pending launch in 3C — in Gurgaon is also going to be at similar margins of 20% 25%.
Rishi Raj
Okay. So, Mohit, a few questions. I think one, what explains the difference in the margin? One is outright, second is joint development. In joint development, as you know, the land payment happens through revenue-share over a period of time, which makes cost look inflated. And hence, for a like-for-like comparison, we also look at IRRs and on the IRR front, both the projects have a very good healthy IRR of — in both the projects, we are estimating to cross 35% plus IRR in both the projects. So that’s one. I think your second question — yeah, on your second question with respect to Gurgaon project, yes, you can estimate similar margins for that project as well for INR9,000 crores, which will be launched over next two years.
Mohit Agarwal
Okay. Understood. On your presales, I think you’ve given a guidance of INR21,000 crore over the next three years, which kind of implies a 15% CAGR, 15% plus more than about 15% to 20% CAGR. So firstly, if you could confirm that? And secondly, you have only INR500 crores plus of unsold inventory. So when do we see the next launch happening? In your opening remarks, you have said that CY ’25 is when the next launch is planned. But if you could kind of be more precise about, let’s say, which quarter should we expect the next launch happening?
Rishi Raj
Absolutely. So yes, we confirm that number in terms of cumulatively INR21,000 crore and the CAGR that you just articulated. In terms of launch timeline, of this INR21,000 crore, as we shared, almost INR14,000 crore is secured in the three projects, which is the Gurgaon 18.23 acre and the residential component in Delhi once sold and unsold inventory and Sector 105 that we have recently-acquired. So this constitute INR414,000 of INR21,000 crore. As far as launch is concerned, our plan is to launch all of all the three in FY ’26 staggered from second-quarter onwards.
Nitin Kansal
Okay. Okay. Supplement one thing, which mentioned about the CAGR plant. Your understanding is correct, about 15%. If you take it from FY ’25 onwards, then we hit a CAGR of 15%. But we factor it from FY ’24, the number comes to a CAGR of 44%.
Mohit Agarwal
Yeah. Understood. Sure. And my last question is on — on business development, the schedule that you share, I see that about 1.3 million square feet of a business development project has moved from last quarter this quarter from a due-diligence stage to a definitive documentation stage. If you could elaborate a little bit on what could be the expected GDV and how soon could we see this closure happening? Any color on that? That’s my last question..
Rishi Raj
So your observation is correct. It has moved to definitive documentation stage. Mohit, if you can just allow us a couple of more months. Once we are — once we have been able to successfully close this, we will come back and discuss with you further details.
Mohit Agarwal
Okay. That’s all from my side. Thank you and all the best.
Operator
Thank you. Next question is from the line of Pritesh from Axis Capital. Please go-ahead.
Pritesh Sheth
Yeah, good morning, team and thanks for the opportunity. Just one question on — on the Delhi land pooling now that election outcome is there. What do you expect from on that land pooling policy like how much business development you know, how much new project additions can we do from that and what should be timelines? Has the discussion already started with the respective of representatives? So just your thoughts on that.
Sahil Vachani
Thank you, Pritesh. This is Sahil. Yes, we are very optimistic and bullish on the opportunity that Delhi has to offer now moving forward. In particular, the land pooling of a project that is there. To put that in context, we are talking about almost 6.5 odd million square feet of development potential. That’s primarily residential that could potentially open up in Delhi, in the geography of Delhi. So at this stage, it’s very early days in terms of how this will move forward, but we are very confident and very hopeful that this can become a huge value-add value-additive opportunity for States. I’d just like to clarify that what my colleagues Rishi and Nitin shared in terms of our GDV that we currently have and the plans for the next two years does not include any of the opportunities of land pooling. So any — any translation of this would be over and above all of what you have seen on our presentation?
Pritesh Sheth
Sure, got it. Got it. And just from our perspective, our scope of opportunities there would only be restricted to land pooling policy or there are other opportunities that are also emerging in Delhi considering I think there were three, four steps which are highlighted in the manifesto by the VJP government. So what other opportunities we can look at or do you think that land pooling policy itself is large-enough to keep that focus on that perspective itself?
Sahil Vachani
Yeah. I think for us, the land pooling opportunity is primary given that the family office entity has about 100 plus acres already, that has been almost all contiguous year. So we would like to focus on that given that there is a land-bank that it could be a relatively asset-light opportunity for Max estates as they consider it. So we believe that from a value-creation perspective for Max Estates, this could be the most optimal and value creative and accretive opportunity. But definitely, we are open to all other opportunities as well and it’s very early days for the for the change in government in Delhi, as you know. So we will be watching this also very closely over the coming months and we’ll explore opportunities as they become available.
Pritesh Sheth
Sure, sure. That’s really helpful. And always will always be good to hear any updates on this from you guys from you guys. Thank you. That’s it from my side.
Operator
Thank you. Thank you. Thank you. Next question is from the line of from Financial Consultants. Please go-ahead.
Ritwik Sheth
Yeah. Hi, good morning, sir. Sir, last question. Hello. Am I audible?
Rishi Raj
Yeah. Please go-ahead. If you can speak a little bit loudly?
Ritwik Sheth
Yeah. Sir, few questions from my end. Sir, firstly, collections in estates 128 seems to be on the lower side, assuming we have started collecting for the second phase. So can you just clarify because I believe we had collected INR450 crores in the previous financial year and you mentioned INR550 crores till-date we have collected from both the phases. So can you just give some update on that.
Nitin Kansal
Sure,, good morning., in the 128, we have from the Phase-1, we had done a collection of INR450 crores, which was close to 25% at the time of the launch itself. The next installment of the Fed becomes due in the month of March, April and we expect the money to be collected another INR450 crores to come at that point of time. Against estate 128 Phase-2, we have done sales of close to INR870 crores as we speak and against which we have done a collection of close to INR100 crores as we speak today and this number — the balanced number, we about 25%. This will be collected in the current financial year itself.
Ritwik Sheth
Okay. So everything is on-track and as planned.
Nitin Kansal
Yeah. Look, everything is on-track., we have got a collection efficiency of close to what, 95%, 96% as we speak to them.
Ritwik Sheth
Okay, great. And sir, collections for nine months FY ’23.
Operator
Sorry to interrupt you. Can you speak a little, please?
Ritwik Sheth
Yeah. Collections for Nine-Month FY ’25 is at INR700 crores. Can you just give us the figure for operating cash-flow also the pro-forma operating cash-flow for nine months FY ’25.
Nitin Kansal
So for the nine months, the operating cash-flow stands at close to INR450 crores and this number is expected to go to a number of close to INR700 crore INR750 crores by the end-of-the financial year.
Ritwik Sheth
Okay, got it. And sir, what is the pending construction cost at estate INR128 and 360.
Nitin Kansal
So okay. So on Estate 128, what we have deployed is a number of close to what INR7 I think all told, including land, we have deployed a number of close to INR650 crores to INR700 crores on the project and we expect to spend another INR450 crores on the project. Okay. And State 360 has just started on the construction, the balance amount which needs to be spent would be in the range of INR1,400 crores INR1,500 crores over the period of next three to four years.
Ritwik Sheth
Got it. Got it. And sir, my last question is on the commercial. Two projects are under-construction. How much equity we have already put in these two projects till-date? Date and anything pending
Nitin Kansal
So we have — I’d say currently on these two projects have already deployed equity of close to INR450 crores and the — so across two projects, we have put a number of close to — if I can say close to INR700 crores has been deployed on both the projects. Okay. And what we expected is in the INR100 crore 150 crores is supposed to come from both the partners put together to complete the equity commitment. But that commitment would be more year-ended because currently we have already achieved financial closure through raising of debt to the consortium of banks led by SBI and ICICI Bank.
Ritwik Sheth
Right. Okay, got it. And sir, one last question if I can squeeze in. Sir, you mentioned that approximately 78 million square feet, 700 projects are there in the pipeline and about 3 million square feet. So in FY ’26, what kind of outlay and what kind of GDV are we looking to add from these projects, if you can give a rough idea, we’ve added exceptionally well in the last 18 months with these three, four projects. So can we expect a similar run-rate for the next, say, 12 to 18 months? Thank you.
Rishi Raj
So me our stated guidance is to continue to add at least 3 million-square-foot every year. If you look at our track-record of FY ’25, we have surpassed that by more than 2 times. So we will continue to continue to be on that path as per our stated goal. In terms of GDV, if you look at cumulatively, cumulatively, we have stated INR21,000 crore over next three years. And as we said, INR14,000 crore is already in the secured portfolio. So our goal will be now to add another 4,000 crores to INR5,000 crore at least in FY ’26 and we will continue to build that portfolio.
Ritwik Sheth
Okay. Okay, sir. Got it. And all the best, sir. Thank you.
Rishi Raj
Thank you.
Operator
Thank you. Next question is from the line of Vikas from Moonshot Ventures. Please go-ahead.
Vikas Mistry
Thanks for the opportunity, Sail and Rishi, thanks a lot and you’ve done exceptionally well and we continue to see that you continue to do well. So my question is on first question is on Gurgaon project. You are saying that our margins will be in the same range, but the micro-market is still in good shape and demand is extremely high. So incrementally, if we sell the same project 10% even at premium, then we should be supposedly making slightly 4%, 5% higher-margin on that.
Rishi Raj
Yeah. So Vikas, great question. If you look at launch, we sold 85%, we are at 90% now. Let me take the opportunity to also update you how — what’s — how we are going to monetize that. We are going to use this 10% to build-out to further build-out depth in our distribution network in Gurgaon and we have already initiated a business development plan for our up-country and international market touch at least 10 upcountry and eight to 10 international markets in coming months as we move towards launch of our next project in Gurgaon. And also the objective is to inch up the price with this 10% remaining inventory. So yes, we should see improvement in margin, exactly how much we will come back and update you as we move-in that direction.
Vikas Mistry
Okay. Okay. Okay. That’s understandable. Rishi, one more thing that once you are saying that INR21,000 crores over a period of three years, it looks a lot conservative on the side because we are sitting — we have three years and BD team is doing extremely good and demand in NCR is really, really good. Or don’t you think that you’re underestimating by good margin?
Sahil Vachani
This is Sahil Ya Vikas. Thanks. I’ll take that. I think we have always focused on trying to meet the guidance that we have been giving for the last two or three years. And I think we’d like to — we would like to be a little conservative in our approach to continue to do that. So I think given that, this is what we are looking to — this is the guidance that we have formally given. Even this, if you look at it from FY ’24 is about a 44% CAGR. So just thought that we’ll share that perspective. And you’re absolutely right, if the market continues in the trajectory that it has in the last couple of years, there is no reason why we should not be able to upsize this as well.
Vikas Mistry
Okay. One last question from my side, slightly longer-term question. As we look you to be a credible partner in NCR, we do to be becoming as good as deal as we go over a period of time. But only thing piece missing here is that we don’t have land. And you already alluded in a couple of conference calls that you have sponsored standard record land. And once you say that once you start pooling that and building it and you are saying that to four, five, six minutes will come from that. We think that you can — if you start pulling that then development potential can be much, much higher from there?
Sahil Vachani
Okay. So firstly, I personally, I don’t think that the fact that Max Estates has not had a land-bank has been a disadvantage to the company. If you look at where we are today with the INR7,500 crores of sale or INR7,000-odd crores of sale that we’ve done already in residential plus another INR14,000 that we have got. So we are talking about a INR21,000 crore GDV that we’ve been able to acquire over the last two or three years of it 7,000 we’ve already sold. So I don’t know if — have not having a land-bank has been a disadvantage.
In fact, one could also argue that it has benefited us because it has enabled us to be agile, flexible. It enabled us to have a strong balance sheet and to be able to go to the locations and choose the micro markets that are absolutely prime and premium and we’ve been fortunate enough to have been able to do that. So that’s the first part of the question. We believe that we can continue to follow that approach and to do that as well. The second part is, yes, the benefit of having a land-bank without it being a drag on our balance sheet is definitely an opportunity for us with the sponsor land-bank that is there.
And we are very hopeful that in the coming years, the land pooling policy does translate into something more meaningful and into development potential, which will enable Max Estates to then have a best of in a sense both the opportunities of us acquiring the various land parcels and also partnering for the captive land parcel that the sponsor office has. So I hope that answers your question, but that’s our strategy moving forward.
Vikas Mistry
Yeah, that answers the questions, but we are looking — I think you’re looking from on the railway mirror where the cycle has been super strong and we are the beneficiaries of supers from cycle, but here on now, volumes will be the only growing and price may not be inching so much on upward direction. So it looks like that the asset strategy that has — we go into the micro-market, which is good and we just kill there. But going-forward, it will not be the case. So we think that over a period of time, if you have good lend bank, then it will be a good strategy and focus on commercial, then it will give good dividends. And in the end, I want to say thanks to the whole team and you do an exceptional work, continue to do so.
Sahil Vachani
Thank you so much. Just to address that for a second. Absolutely right. I think we believe that having a combination of not only like I said, the sponsor land that we’re trying to do in addition to the new opportunities that we have and the commercial portfolio is a derisked and a strong strategy. One could argue that maybe in a slowing market, getting newer opportunities may be slightly easier and more attractive and getting opportunities in a heated market may be tougher, but yes, I think — thank you, sir, your good wishes.
Vikas Mistry
Okay. Thank you. Thank you, Sal for that.
Sahil Vachani
Thank you.
Operator
Thank you. Next question is from the line of Krishna Shah from Ashika Stock Broking. Please go-ahead.
Krishna Shah
Sir. Sir, I have couple of clarifications. Firstly, on the BD guidance, you mentioned that we’ll be adding 3 million square feet per year or doing a GDV of adding GDV close to 4,000 to 5,000. Is that correct?
Rishi Raj
Yeah. And I think the guidance is minimum 3 million and minimum 4,000 to 5,000.
Krishna Shah
Okay. Got it. On annual basis, right?
Rishi Raj
On annual basis, yes.
Krishna Shah
Yeah. And secondly, for the launches, so what are the launches that we’ve planned for FY ’26 in terms of GDV?
Rishi Raj
So of INR14,000 crore that we have — that we have in our portfolio, it spreads across three projects, 18.23 acres of land in Gurugram, a residential component in Teliwan mixed-use and residential component in a sector 105 mixed-use land that we have acquired. Our plan is to bring this to launch in staggered phases starting second-quarter of next financial year.
Krishna Shah
Okay, got it. And the launches will go on till what time period in phased manner.
Rishi Raj
So the — the old — the launch, we will do it in two phases. Phase-1 will be launched in financial year 2026 and Phase-2 subject to-market and the response will go into FY ’27. The Delhi 1 and Sector 105, both the launches will happen in FY ’26.
Krishna Shah
Okay, got it. This is helpful. Thank you. Good
Operator
Thank you. Next question is from the line of Ronald from ICICI Securities. Please go-ahead.
Ronald
Thank you for the opportunity and sir, congratulations on great set of numbers. Firstly, on the sector that 360 project like it was a conscious decision to go with only 0.1 million square feet of launch or you know because the balance of 0.2 million-square-foot would it be launched in next two quarters in phases because how you are planning this the ANDA project? Because the next 0.2 million-square-foot, you’re taking at a much higher year realization of about 18% or higher than the current run-rate.
Rishi Raj
Sorry, just to be clear, if your question is, how we are planning to sell balanced inventory in a state 360?
Ronald
Yes, sir. And you only — you did — was it a conscious decision for 0.1 million got it. Sales in Q3?
Rishi Raj
So just to be clear on the facts first, 90% of total has been sold. The balance 10%, as I stated earlier, very consciously, we have kept that inventory to help us build further distribution depth and breadth, not only in and in NCR, but also now we are expanding aggressively in terms of our outreach to build the awareness about the brand and the product in up-country and the international markets in coming months. And this will help us, A, do that and B, also it will help us now improve the pricing beyond what we have already done in the launch phase.
Ronald
Right, sir. Great. And on the — like as you mentioned the launch pipeline, so around INR4,500 crore for Gurugram in FY ’26 and balance around INR2,500 crores. So you would be looking at around INR7,000 crores of new launches in FY ’26, right?
Nitin Kansal
More. So in FY ’26, what we are planning to launch is, as Rishi mentioned, estate 361, around 18 acres of land, which has a sales potential of close to INR9,000 crores in sector one of that.
Ronald
But that is around INR4,500 balance through at one goes, so around 2,500 balance.
Nitin Kansal
So entire inventory would be launched over the period of two years.
Ronald
Okay, okay. So the — the point I was coming to you is that you would be hiring 10% to 15% odd growth in for ’26-27.
Rishi Raj
We would be a growth of close to 15% to 20% year-on-year on the pre-sales number.
Ronald
Okay, great. And the last one would be, sir, we have seen a significant price appreciation over the last year, your project itself has given 40% higher. And quarter-on-quarter also there was a 15% jump-in estate INR360. So you know, still you are assuming some kind of price hikes going ahead. So are the land prices also following the same trend? How are you seeing that as the demand been stable enough to catch to absorb this kind of price hike? So overall NCR versus scenario in terms of luxury and so for luxury segment.
Rishi Raj
Yeah, so Ronald, if you look at what’s happening in NCR and you have to segment the market a bit. If you look at a corporate listed institutional developer with right location, product and experience, they’re able to command a top of the price bracket and continue to expect appreciation and premium on that. At the same time, you will also have players who are not able to deliver on that. So you cannot look at-the-market from a one-size fit all approach, so you will need to segment and see what’s happening with what cohort of players. As far as land is concerned, as far as land is concerned, two things I would say. One, if you look at the data for last two years, there has been enough supply of land.
In fact, in calendar year 2024 itself, out of 1,700 acres of land that got transacted pan-India almost 700 acres is in Delhi NCR, implying more than 100 million-square-foot of development potential. And from that perspective, in terms of what we want to acquire of 3 million-square-foot every year is a very reasonable target of less than 5%, close to 3% kind of a target. So from that perspective, as Sahil also alluded earlier, we don’t see a challenge in continuing to grow our portfolio. As far as pricing is concerned, you are right. If you look at over last couple of years, the pricing has — has definitely increased in terms of FSI cost across Delhi NCR and that also is one of the drivers along with cost of construction when it comes to price that you are seeing on the residential side. But coming to the moot question, which is our confidence in acquiring the right land at the right price in Delhi NCR, we are very, very confident because of what I just mentioned.
Ronald
Thank you. Thank you very much, sir, for the detailed reply and best of luck, sir.
Rishi Raj
Thank you so much.
Operator
Thank you. Participants, and one to ask a question as there are no further questions, I will now hand the conference to the management for closing comments.
Sahil Vachani
Thank you very much for participating today and look-forward to speaking again next quarter. Thank you.
Operator
Thank you very much. On behalf of Max Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you