Puravankara Ltd (NSE: PURVA) Q3 2026 Earnings Call dated Feb. 13, 2026
Corporate Participants:
Unidentified Speaker
Harsh Patak — Investor Relations
Niraj Kumar Gautam — President, Finance
Mallanna Sasalu — Chief Executive Officer, South
Rajat Rastogi — Chief Executive Officer of West Region & Commercial Assets Pan India
Ashish R. Puravankara — Managing Director
Analysts:
Unidentified Participant
Deepak Purswani — Analyst
Vatsal Kothari — Analyst
Janhvi Shah — Analyst
Presentation:
operator
Sa. It. Sa. Sa. Sam sa. Sa. It. Sa. Sa. Sa. Sam. Sa. Foreign. Ladies and gentlemen, good day and welcome to Puruvankara Limited Q3 and 9 months FY26 conference call hosted by MK Global Financial Services Limited. 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 Star then zero on a Touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harsh Patak from MK Global Financial Services. Thank you. And over to you, sir.
Harsh Patak — Investor Relations
Yeah. Thanks Rudra. Good morning everyone. I would like to welcome the management of Purvankara Limited and thank them for this opportunity. We have with us today Mr. Ashish Purvankara, Managing Director. Mr. Malana Sasalu, Chief Executive Officer South. Mr. Rajat Rasogi, Chief Executive Officer west and commercial assets and Mr. Neeraj Gautam, Chief Financial Officer. I shall now hand over the call to them for the opening remarks. Over to you gentlemen.
Niraj Kumar Gautam — President, Finance
Thank you, Harv. Good morning everyone. I’m Neeraj Gautam, CFO of Purvankara Limited And I welcome you all into Purvankara Limited’s earning conference call to discuss the performance for the third quarter and nine months ended FY2026. The financial results, investor presentation and press release have been filed with the stock exchanges. It’s available for your reference. I will begin with a brief overview of the macroeconomic and sector environment followed by the company’s operational and financial performance for the third quarter and nine months ended FY26. India’s macroeconomic environment continues to remain resilient despite ongoing global uncertainties. Supported by a strong domestic consumption, sustained government capital expenditures and a stable policy framework India remains one of the fastest growing major economies globally.
Referencing the strength, the Reserve bank of India has revised its FY26 GDP growth estimates upward to 7.4% from its earlier estimate of 6.5%. Supported by robust economic momentum including a strong GDP growth of 8.2% in Q2 FY26 and easing interest rate pressures on the residential real estate front. End user demand continues to remain resilient aided by interest rate cut and income stability. While aggregate housing sales across the top cities moderated marginally on a year on year basis. Underlying market fundamentals remain sustainable. Buyer preferences continue to shift towards mid and premium segments with homes pricing above INR 10 million accounting for approximately 50% of total residential sales.
Highlighting sustained demand for the larger and high value homes. On the commercial real estate side, India’s office market maintained strong momentum. Gross increasing during calendar year 2025 reached to 86.4 million square feet representing a 20% year on year increase and marking a new all time high. Global capacity centers remain the primary demand driver accounting for nearly 38% of total officer Johnson supported by continued expansion in multinational occupiers and a preference high quality grade A office assets amid limited new supply. Overall the sector outlook remains positive supported by a strong macro fundamentals, declining interest rates and improving affordability.
Moving to the company’s operational performance for the quarter during Q3FY26 we recorded a pre sales of INR 14 crores registering a 17% year on year growth largely driven by sustained sales across the key markets. On the collection front, we delivered our highest ever quarterly collection of INR 1,140 crores representing a 22% year on year growth supported by a steady construction progress and strong customer traction. Sales volume during the quarter stood at 1.49 million square feet while average realization improved by 12% year on year to INR 9,500 per square foot reflecting strong pricing momentum across the portfolio.
For the nine month end date FY26 pre sales stood at INR 3,859 crore up 9% year on year while collection amounted to INR 3,045 crores marking an 8% year on year growth. Sales volume for the nine month period aggregated 4.24 million square feet. On the exclusion front during the quarter we handed over 1.23 million square feet comprising of 1,116 homes. This took our cumulative handover for the nine months ended FY26 to 2.58 million square feet across 2,446 homes underscoring our continued focus on timely delivery and discipline project execution. Coming to our financial performance, total income grew to INR 1,104 crores in Q3FY26 compared to INR 334 crores in the same period last year reflecting a strong year on year growth of 230% driven by higher handovers during the quarter.
For a nine month period, revenue stood at 2,305 crores compared to INR15.29 crores last year reflecting a 51% year on year increase. On the profitability front, we reported a ebitda margin of 23% in Q3FY26 compared to 10% in Q3FY25 reflecting a significant improvement in operational efficiency, better cost control operating leverage. As a result, we reported a profit after tax of INR 58 crores for the quarter compared to a loss of INR 94 crores in Q3 FY25. Coming to our debt position, our net debt stood at approximately INR 2,482 crores as of 31st December 2025 with a net debt to equity ratio of 1.47 times.
During the quarter, gross debt reduced by INF 35 crores while net debt declined by INF 20, 244 crores respectively, reflecting effective debt management. Our cash and bank balance as 31st December 2025 stood at INR10.92 crores, indicating a strong liquidity profile and ensuring operational stability. Additionally, the cost of debt declined further to 11.08% from 11.32% in September 2025. Now moving to launches and business development during the Q3FY26 the company launched Purva Silver sky in Bangalore with a total salable area of approximately 0.7 10 million square. Cumulatively, launches during the nine months ended FY26 stood at 2.83 million square feet including new phases launches across existing projects.
On the business development front during the nine month period we added five new projects including two projects in Mumbai and three projects in Bengaluru. In total we added 12.76 million square feet of potential development area with an estimated gross development value of approximately INR 13,900 crores. In Mumbai, we secured redevelopment projects in Chembur and Malabara Hills. The Chembur redevelopment involves eight residential societies spanning 3.78 acres with approximately 1.2 million square feet of developed area and estimated gross development value of 2,100 crores. The Malabar Hills project covers 1.443 acres offering around 0.7 million square feet with estimated gross development value of 2,700 crores in Bengaluru.
Key addition includes 53.5 acres land acquisition in Asi Valley contributing approximately 6.41 million square feet with an estimated gross development value of INR 4,800 crores. A joint tender in North Bengaluru with KBS Properties Holding LLP is 2024.59 acres and about 3.48 million square feet with an estimated gross development value of INR 3300 crores located near the airport and a joint venture joint development in Kangaroo at Belgrade covering 5.5 acre land parcel with around 0.85 million square feet and estimated gross relevant value of 1000 crore. Collectively these additions significantly strengthen our long term growth pipeline and enhance geographic diversification across key markets.
Going forward, we remain continuously optimistic on sector outlook. The combination of a strong macroeconomic environment and declining interest rates and sustained end user demand continues to support residential real estate. We remain focused on project launches, accelerating construction activities and maintaining healthy collection. We attempted to optimize cost, enhance efficiency and driving shareholders returns. Thank you for listening to us. With this we can now open the call for the questions.
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 the Touchstone telephone. If you wish to remove yourself from the question queue you may press Star and two 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 the line of Deepak Purswani from Swan Investments. Please go ahead.
Deepak Purswani — Analyst
Yeah hi, good morning to the team and congratulations for very good set of deliveries turning into the profitability this time. So firstly wanted to get the sense on the I mean launch pipeline in Mumbai for the Q4FY26. I think Lokhanwala project is already launched at this point of time. Firstly if you can give the sense on that and then if you can also update about the what are the launch pipeline. How should we see other project launch pipeline in the Mumbai at this point of time?
Niraj Kumar Gautam — President, Finance
I request Shahid to take this question.
Unidentified Speaker
Hi, good morning. So Rajat here from a launch perspective we have already received for our Nheri project and we are looking forward to launch it in the coming week. So it will definitely happen in the month of February for a Thane launch which is the two towers. We are in the final stages of securing the approvals and we are very positive that we should be able to launch it in quarter four, maybe end of February in the first week of March. Our approvals have already secured IOD for our Palihan project Vacation notice has already been sent to the Society.
We are looking forward to launch it by end of March or in April. Similarly for our Miami project we have in advance stages of getting the approval hoping to by end of February and then subsequently we will issue a vacation notice. So we’re hoping that in quarter one of the coming financial year we should be able to launch our breach candid project with Miami rest. All the projects are in the various stages of either approvals or documentation and the work is going on.
Deepak Purswani — Analyst
Okay so I mean if you can also share the medium term perspective for the Mumbai as a market, how should we see this entire region from the organization as a whole given the launch pipeline and what is the kind of potential we would look to explore from this particular western region as a whole?
Unidentified Speaker
So we remain quite bullish in terms of our progress in the western market both in Bombay and Pune where we have projects going on. Not only that we’ve been acquiring projects, we’re also raising strong sales momentum in both these markets. Our Andheri launch so far response that we’ve got from the market has been very encouraging. We are hoping that we’ll have a very, very good launch. Similarly, our response so far in Thane market where we now looking at the two towers that we’re going to be launching is already been good. We are experiencing a good premium sales that we are getting over there.
So from a market positioning point of view I think Prabankara now I think we have a very strong position to deliver good numbers from the western region. Pune also continues to be a strong market for us. We will try and add a couple of projects in Pune also in the coming financial year to send in our overall Pune layer. Layer in terms of the overall coverage that we have in the Pune market. Primarily trying to be in the western part of Pune. So from overall company numbers, I think our numbers will continue to be healthy and growing from here.
Deepak Purswani — Analyst
And the project which we mentioned about the, I mean Khana project, what would be the GDV which we would be launching in the month of March and how should we see the sales response for this project?
Unidentified Speaker
So we are coming with a new inventory of approximately 800 crores. And as I said that so far I think the project has received very, very positive response from the micro market. And I think by end of March I think the numbers will strongly improve from there.
Deepak Purswani — Analyst
Okay. Now coming to the southern region, I mean similarly if you can also share the pipeline for the southern region, I mean how should we see the key launches in Bangalore from the Q4 perspective and then from the medium term perspective and if you can share the overall perspective on the southern region as well, please.
Mallanna Sasalu — Chief Executive Officer, South
Yeah, thank you very much. So Maluna here as we had given the guidelines in our investment. Presentation that. We had around 11 projects for launching and so they are in various levels of approvals and for sure that they’re going to be four projects that are going to be launched in this quarter, namely Henur Road and there is a project called West End and Kanakapura and KADB and the value of that would be approximately 4700 crore rupees and which is going to come to market within this quarter. And we are trying to see if we can add a couple of more projects into it. As you know that. Approved.
Deepak Purswani — Analyst
Hello. Hello.
operator
Hello.
Deepak Purswani — Analyst
Hello. Hello. Am I audible?
operator
Yeah, you’re audible. I think there is a management line has been reconnected. Please go ahead.
Mallanna Sasalu — Chief Executive Officer, South
Yeah, so as I mentioned that four projects are going to be launched in this project in this quarter we may add a couple of more projects of the 11 projects that we actually listed in our investment presentation. So it’s all in line with the way we want the approvals, the launches to grow. Maybe one or two projects may go into the quarter one and quarter two of the next year.
Deepak Purswani — Analyst
Okay. So sir, if I were to put into the perspective, I mean Q4 we would be looking somewhere close to 4700 in Bangalore and then Mumbai would be there would be the 3 project putting it all together that should be roughly 2000 plus. All these are on track to get launch in Q4.
Mallanna Sasalu — Chief Executive Officer, South
I believe so. Yes. Yes.
Deepak Purswani — Analyst
Okay. So sir, if I were to see from the overall perspective, I mean looking at the current market environment, what is a typical kind of run rate we are believing we would be managed to sell it out during this time. And also from the medium term perspective if I were to look your sales trajectory, I mean we had a very good run up in the last few years moving to the 5,900 and then last year we were at 5,000 and in this nine month 3,800. So if you can share your perspective from next, from next two three year perspective how should we see this entire things and how where we are planning to head up and what are our internal targets which we are looking in terms of the precis looking at this launch pipeline.
Unidentified Speaker
Okay, it’s a loaded question so I’ll try and answer this. If we really look at the pipeline and for the three 3900 crores are already being done and the pipeline that in general we do around 1100-1200 crores from our sustenance which means that when you add them together we’re already at 4200 and it is anybody’s guess what happens in the launches. Generally we sell around 30 to 40%. Even if we sell around 25% in this launch of whatever the numbers that you just now rolled down and you can do the calculation. I think we should be.
Rather than putting a number to the whole thing that I’m giving you kind of a guidance as to where this may be heading towards. And looking at the next two, three years with the business development that is going on. And as you may be seeing that there is an announcement almost every couple of months once about our business development activity. And we, we think that this run is going to continue stronger and stronger over the next 1, 2, 3, 4 years, I believe.
Deepak Purswani — Analyst
Okay. And any broader, I mean targets or kind internal targets we have set up in terms of the presale which we would be looking out from this launch pipeline along with the sustenances which we are looking at out.
Unidentified Speaker
As I said. It’S around 25% that we should be able to sell of everything that we are going to be launching. So from the launches itself, we should be getting around somewhere around 1800 to 2000 crores. And add to that 10802000 crores and add to that another thousand crore of sustenance. So you have your number there. So we should be doing better than what we initially thought about the year or also compared to the previous years.
Deepak Purswani — Analyst
Okay, okay. And second part of the listing, if you can also give a broader sense in terms of the, I mean definitely this time there has been a significant ramp up in terms of the execution of the projects, delivery of the project. If you can share your perspective. I mean how should we see deliveries in the Q4 as well and as FY27 as a whole, what are the key project which will flow in, in terms of the delivery schedule? If you can give the broader sense on that part as well, please.
Niraj Kumar Gautam — President, Finance
Yeah, I think rather than getting into the numbers itself and as you might have seen that in the last couple of years that you know, our construction, the burn rate has improved and we are constantly spending more money on the construction side, which means that we are moving more towards completion at least there are two, three projects which are going to be delivered probably a year before the dates that what we have promised to the customers and also that we have given in our investor presentation as to what, what is our Q4, FY Q4, the numbers that we are going to be delivering in terms of the handing over thing in Q3, FY26, that we are looking at almost 2.40 million square feet to be handed over and pending to be recognized in this unit is that it’s 2,443 units.
So we are moving faster and maybe that you will see even even more riskier handing over in the coming years, that is next year and the year coming up.
Deepak Purswani — Analyst
Okay, Just to add, I think just to add, we have a strong delivery pipeline for a project but if you.
operator
Have a follow up question, please rejoin the queue.
Deepak Purswani — Analyst
Sure.
operator
Our next question comes from the line of Vatsal Kothari from Alfaccurate Advisors. Please go ahead.
Vatsal Kothari — Analyst
Hello sir. Hi. A very good morning. Congratulations on a good set of numbers. So I have a couple of questions actually I just start off with a broader question in terms of, you know, just curious about the pricing strategy in the new projects for the upcoming launches in Mumbai specifically and if you could. Be more specific with terms to the. Strategy in place for different micro markets. I think a number of launches coming in Q1 FY27 as well. So pricing strategy for the next couple of quarters and then I can ask my next question with regards to and project.
Rajat Rastogi — Chief Executive Officer of West Region & Commercial Assets Pan India
Hi, this is Rajat here. So with regards to our pricing strategy in the west region, I think Purvankara by default has been a premium player. And whatever project that we are doing also they all at least 5 to 10% higher than the micro market. So our strategy in the Andheri market as well as in the Thane market always be slightly not higher than what the local pricing is. So just to, and I think with the kind of reception we are getting from the customers I think people are willing to pay a premium to Prabhankar’s quality of product.
So I think from a strategy point of view that is very, very clear also from a distribution point of view for the launches we are in almost all the micro markets in Mumbai and we’re trying to get deeper into each and every micro market. So that is going to be our strategy for the medium to, you know, long term. And from there I think we’ll pick up on the pricing part.
Vatsal Kothari — Analyst
Yes, no, please, please carry on.
Rajat Rastogi — Chief Executive Officer of West Region & Commercial Assets Pan India
So what I, what the thing that I, what I want to emphasize is that there are micro markets and the quality of the land and then the place where it is located and also the local economics actually drive what is the kind of pricing strategy that will happen larger as a company. The strategy is very simple. Where we are among the crowd then we got to be better than everybody else in terms of our pricing by 5%, 10%, 12%. There are certain micro locations that what we are doing at this point of time in Bangalore is to be really be going away from the competition itself.
That is to place ourselves little far away from the competition by producing products which are standout products. That is you can always look at a micro market and say everybody is selling at 13,000. And so if differentiation means how do we move to 15,500 rather than being 250 rupees or 300 rupees more than the competition. So that’s the strategy as we move forward that is going to be considered debt in our pricing strategy.
Vatsal Kothari — Analyst
Sounds good. Thank you so much for that. My next question is specifically with regards to the Ndheri project. So just a few layman questions in terms of the GDV and you know, details of the rates and the prices at which we are planning to launch this. And secondly, when would the second phase of the project be launched? What are the timelines of the project? If you could just throw some color. On that, that’d be great.
Rajat Rastogi — Chief Executive Officer of West Region & Commercial Assets Pan India
Sure. So the overall GDP of the project right now is around 1550 crores. Right now what we are launching is close to around 850 crores worth of inventory. We still to reveal the pricing to the market. But I think as I said that the current micro market is hovering in a range of around 38 to 40,000 rupees. And definitely I think at Prabhangskar we are looking at getting a side premium in terms of the launch. So that is number one in terms of the phase two launch. Phase two launch we’re expecting to happen in the, in the, in the.
By the end of quarter one or early quarter two. Super, super.
Vatsal Kothari — Analyst
Any updates on the breach candidates? Sorry, this one last.
Rajat Rastogi — Chief Executive Officer of West Region & Commercial Assets Pan India
Oh yeah, I just updated that. So we are in the advanced stages of getting the final approvals. In fact most of the approvals have already received. We just waiting for getting the IOA from the respective authority which should happen by hopefully by end of Feb and then the vacation notice. So hopefully I think in quarter one we should have a Miami launch as well. Super.
Vatsal Kothari — Analyst
Fantastic. Thank you so much and wishing you all the best.
Rajat Rastogi — Chief Executive Officer of West Region & Commercial Assets Pan India
Thank you.
operator
Thank you. Our next question is a follow up from Deepak Poswani from Swan Investments. Please go ahead.
Deepak Purswani — Analyst
Yeah, thank you for the follow up opportunity. So just wanted to get the sense as you can now since we have gained the traction in terms of the project pipeline. I mean in the over the next six to 12 months there would be a lot of launches which are coming it out. If you can share your perspective, how should we see this in terms of the cash flow and if you can also give broader sense for the debt, how should we see the debt level over the next six to 12 months and what are our internal targets and consequent to it? I mean if you can also share your perspective on the cash flow, I mean interest expenses which are flowing into the cash flow statement, I mean in nine months they are currently at a 450 odd growth.
I mean how should we see this number over the next 12 months?
Unidentified Speaker
Thank you Deepak. As far as if you look at. If you’re referring to my cash flow please Refer the slide number 26 on investor presentation. We this quarter we had done a total customer collections was 1,360 crore. And we have a generated operating surplus of 64 crore. And and as a nine month basis our operating surplus about 755 crore. So if, if you look at our cash flow over a period of time consistently we had. We are generating operating surplus and our. We have been meeting our interest obligation on quarter on quarter basis and all the you know has owner.
And further to understand on the context we have also added. If you look at the last nine month period we have added 12.76 million square feet of business development and which is a potential of 13,000 crore. So these investments in the new land parcels and new projects requires capital investment and hence to that extent this needs to be financed from the external capital and that is where fees we have borrowed debt. But by and large if you look at our debt even if you look at just quarter on quarter basis. If I compare my debt compared to the media period has come down my cash and cash equivalent about 1000 crore and thereby my net debt is down by about 200 more than 200 crore.
So though we are continuously watching our the debt, the cash flow and liquidity position. But at the same time business development is key for the long term success of the organization. And hence we will be doing this business development acquiring land parcels to the achieving long term shareholders value for the company. At the same time we’ll be managing the debt and we’ll see that debts are not going beyond acceptable limits. But just rest assured we are managing it well for the shareholders.
Rajat Rastogi — Chief Executive Officer of West Region & Commercial Assets Pan India
I think the only addition there to. The only addition there to the cash flow would be I think all the effort in the business development that has happened over the last I think 12 to 18 months to secure all these projects. I think what we would or what we are planning is you’re going to see a new launch almost between the west and the south, almost on a monthly basis. Right. So all these projects the investment is already done. So now with the sales you’re going to see an exponential sort of improvement in terms of cash flows etc.
So we’re going to see the benefit of that.
Deepak Purswani — Analyst
Okay. And finally sir, just wanted to reconfirm in in terms of the launch pipeline, I mean on the approval and everything now everything is looking much better at the current juncture and we are ready to launch lot of project. How should we see this? If you can get a broader sense on that part.
Rajat Rastogi — Chief Executive Officer of West Region & Commercial Assets Pan India
Yeah, absolutely. So of course approvals are a large set of variables. Right. But you know giving give or take one or two months of the planned idea that we should be there as we have projected.
Deepak Purswani — Analyst
Okay. So would it be fair to say over the next six to nine months even in the Bangalore also as well we will see a lot of launches coming out. I mean out of these 11 project which we have shown in the plan pipeline, most of them are lined up.
Deepak Purswani — Analyst
Yeah. In Q4 and Q1. So we are almost on track for all the approvals for these projects the.
Rajat Rastogi — Chief Executive Officer of West Region & Commercial Assets Pan India
Next six to nine months and probably all these projects would have been launched another I think, I think if it is, if it is beyond that.
Deepak Purswani — Analyst
Hello?
operator
The line for the management has been dropped. Please stay connected as we rejoin them. Back to the call. Sam. The line for the management has been reconnected. Hello?
Deepak Purswani — Analyst
Hello?
operator
Hello. Hello, can you hear me? Hello, I’m here. Please proceed. Sir.
Deepak Purswani — Analyst
Yeah. Sir, if you can give a broader sense in. In terms of the approval pipeline and I mean launch traction that would be really helpful especially for the Bangalore. I mean since there has been a lot of delays in the last six to 12 months for the launches. If you can give the broader sense how, how we are placed at the current juncture in terms of the approval pipeline as well as the launch pipeline and how should we see over the next six to 12 months for this plant project pipeline in the Bangalore?
Unidentified Speaker
So I think Malana comes back online. I think about six, eight months ago there were a few changes that the authority had done in certain setback rules, etc. And therefore we had to sort of redraw the plans. But that said, I think that is behind us. We should be almost hitting a 90% target in terms of the launches that we have identified in our investor presentation. Most of them are all at least I think 60% would be in the final stages of approval and the balance also should be secured as per the direction and the guidance that we’ve given in the presentation.
Deepak Purswani — Analyst
Okay, that’s interesting and looking like we are on well on track now in accelerating the launches. Thank you sir. Thanks for patiently answering all the questions and wish you all the best.
Unidentified Speaker
Thank you.
operator
Thank you. Our next question comes from the line of Samarth Khandelwal from ICICI Direct. Please go ahead.
Unidentified Participant
Thank you for the possibility. My questions have been answered. Thank you.
operator
Thank you. Our next question comes from the line of Janhvi Shah from Share India Securities. Please go ahead.
Janhvi Shah — Analyst
Hello. Thank you for taking my question and congratulations on the numbers. I had like two questions mainly one about the industry and other on the business. I wanted to know what is the link between the mature projects and the newly launched projects in the nine month pre sale for this financial year. That’s it. And the second question was basically what does our outlook on the residential prices, price appreciation in the next couple of years? Will it be appreciating the we did in the last couple of years or will it be more on the moderate pace?
Mallanna Sasalu — Chief Executive Officer, South
I think a significant contribution in the nine month sales have been from the sustenance projects because. And they’ve been in fact we are ahead of our targets in terms of our annual operating plan. Like I think everyone knows due to changes in the south in terms of bylaws etc. The launches got sort of delayed. So all the sales, most of it that you see is from the sustenance. What was the second question. In terms of pricing as well, I think we’ve been extremely strategic in terms of the various locations that we have secured in terms of new projects.
So if I give an example even in a city like Bombay, right We’ve been extremely careful so we are very well spread out. So we have Thane, we have Lokhanmala. So almost at every price point, right. We have Breach Candy, we have Bandra. That is point number one, point number two. Even in a Bandra while there are so many projects that are going on, we’ve been careful in terms of, in terms of sites, I think ours will be one of the largest projects in the micro market of Bandra. Now what does that mean? That means that in terms of the amenities, in terms of the lifestyle, in terms of the product, there is a clear USP for our project as against competition.
So you know very carefully and strategic acquisitions of projects. Similarly even if you look at Bangalore, right If you look at the location, so for example what they’re about to launch. So these are very high velocity micro markets. Maybe Banargata Road, let it be, you know, Hennu Road or for that matter Hardware park. And for example we have one project which we are in advanced stages of completion in Hardware Park. Maybe if you’ve tracked that project, we had almost sold out 85% of that project in the first eight months of the launch at a 10% higher APR than the micro market there.
So these are I think very strategically acquired projects. So I’m Pretty confident even in terms of price appreciation because of those micro markets should be pretty healthy year on year.
Janhvi Shah — Analyst
So if I can ask one more question, it would be on the business development. In the last nine months we had like a good bd. Next year, Are we thinking along the same line or it’ll be more or less. Can you throw some light on that?
Mallanna Sasalu — Chief Executive Officer, South
One basic thumb rule for business development is it has to sort of surpass your annual sales in terms of square footage at least you need to replenish, if not more so. For example, if your annual run rate is going to be 5 million square foot a year, if you’re going to sell 5, 6 million square foot a year, if you’re going to sell your basic business development will have to in terms of growth year on year. Also you need to create that pipeline of projects. You need to at least acquire 20, 25% higher than that number to give you that headroom for growth.
So I think TD is a continuous process. We are always evaluating deals in the market, but extremely strategic. Also as an internal strategy we are very clear and I think that’s something that you would also keep track from acquisition to launch. Right back in the day it would take a really long time. Today we’re able to turn these projects around within six to eight months of acquisition. Which means we are, you know, even in terms of acquiring, new projects are very clear. Most of the land approvals should be in place in terms of, for example, conversion.
So we’re not getting into projects where we acquire it and then we go to do certain land approvals converting it from agri to non agri, etc. Etc. Which takes 8 months, 10 months or whatever. So these are converted clean clear lands. The minute we acquire it, we immediately go into design and approvals and as a strategy would like to take these to market six to eight months from acquisition, so faster turnaround.
Janhvi Shah — Analyst
Okay, thank you so much. Thank you. Answering.
operator
Thank you. Our next question comes from the line of Harsh Pathak from MK Global Financial Services. Please go ahead.
Harsh Patak — Investor Relations
Yeah, thanks for the opportunity. So first of all, congratulations for a strong set of operational and financial performance. So Ashish, my question is, you know about regarding the launch strategy. So it’s encouraging to see how we have, you know, brought the projects in the west market within one to two years of acquisition. So, so what is our strategy around the Chembu project and you know, the next phase of the Andheri and Palil projects, how are we thinking about those?
Mallanna Sasalu — Chief Executive Officer, South
So in terms of. Yes, back online. Okay, please go ahead
Unidentified Speaker
okay, so harsh. Just to give you a perspective for the answer for the Andheri project. Andheri phase two, we are good to launch. So we have all the basic approvals in place, be it MoEF, etc. We just need to load in FSI and launch it. So we would probably look at launching it in the end of quarter one or beginning of quarter two. The Chembur project is moving good. We are in the final stages of securing the basic approvals at the site level and then we’ll go for the formal approvals for the project.
So I think we should be in a solution of launching it in quarter three of the coming financial year. Malaba Hill also I think is on track. I think we are working with the Society to conclude the development agreement, which I think is 100% should be concluded the month of February and then we go for the approval. So Malaba Hill should happen between quarter three to quarter four of the coming financial year. So from a project pipeline perspective, all the projects that we have signed for, they’re all on track. I think they’re all in obviously the various stages of planning and approvals and we are looking at in next six to nine months all these projects would be launched.
So in terms of growth, how should we evaluate the coming financial year? Because I think for Q4, your launch pipeline looks very strong. So how should we look at the next fiscal. What kind of growth shall we expect? Ashish, you would like to answer that.
Mallanna Sasalu — Chief Executive Officer, South
I can take that, Malana, here. So I think it’s quite strong, right? You know, basically if you look at today we are sitting at around 4,000 crore rupees of sales and then next quarter that we are launching close to around 6,000 crore rupees of stock into the market and we do sustenance of around 1,100 crore rupees. And you add the math. And even if we sell around 25%, 20, 25% on launch, even the conservative estimate says a good number. So rather than putting a number, this is the number that we are going to achieve. I’m just trying to give you a guidance on where it is going and.
For the coming years. It’s very clear from where we are, the remaining that what we’ve already given in the investor presentations about the launches that have deferred to the first quarter and the second quarter of next year. And also that you’re hearing quite a bit from us about the deal closures. And those deal closures are already, as Rajat said, that they’re all in different Levels of designing and approvals and NOCs and so on and so forth. So we seem to be in a good footing now and rest is the future.
Ashish R. Puravankara — Managing Director
And harsh. Just one more thing to add. I think also all these projects that we’re doing are large projects in nature which obviously will be done in various phases. So once you get these basic approvals all you have to do is to get the next chance of approval is to get the SSI loaded. At least I’m coming to the west region. So for example, thane is a 4000 crore project for us and we are launching around 800 crores now that we have done in the past. So I think Thane, you will see a lot of action happening continuously over the period of the next few years because we will keep on getting new towers and new phases in that.
So from a numbers perspective I think there will be a lot of action happening because every project that we are trying to do is large in nature, will have a substantial in terms of sales velocity that is going to come. So we are very positive on the overall thought process in the next six to 12 months. Sure, that’s great. And what’s the update on the commercial projects, the Zentec and Aero City? The Zentec project is doing really well. I think we’ve sold almost 127,000 square feet. We’ve also leased to IKEA which is close to 90,000 square feet.
So that project is getting good momentum in the micro market. Happy to share that both these projects will get an occupation certificate by, by end of March. So I think that’s when I think we start handing over. Aero City also is getting a very good traction from global companies. GCC is doing lot of visits. We’re hoping that we’ll be able to sign a good deal in the, in the coming quarters.
Harsh Patak — Investor Relations
Sure. So any maybe interest from, you know, the potential leases that we have already signed? If you can just highlight something around that
Mallanna Sasalu — Chief Executive Officer, South
you’re referring to Aero City.
Harsh Patak — Investor Relations
Yes.
Mallanna Sasalu — Chief Executive Officer, South
So Aero City, as I said we filled in a lot of RFPs, really marquee ones, big deals, nothing concluded so far but we are in the, in the top one or two stage with a couple of large players. As I said that this is a long driven process and we are expecting the OC to come end of March. So I think we should be able to conclude something in next quarter or so.
Harsh Patak — Investor Relations
Sure. And my last question is around the debt front. So I think sequential that sequentially there has been some, you know, decline the debt number and like Ashish rightly highlighted that you know the collections are you know going to significantly increase. So how should we think about the debt number Maybe in the next two to three years from the current levels.
Ashish R. Puravankara — Managing Director
So if it at the same time we have mentioned our debt schedule also the what are the kind of debt slated for repayment and this. This financial means coming financial year from now means from December onwards if it targets it 12 months from hence the scheduled repayment itself is 682 crore. Beside that the project where we have taken money and the collection happens and that through SI and all the mechanism we it has been our you know experience that we always pay the loans ahead of schedule. So 682 crore next 12 months any which will be repaid from the scheduled repayment and beside that the collection goes up I’ll be repaying the debt as I mentioned.
And also Mr. Office mentioned and all of us mentioned that we are continuously monitoring the debt and wherever there’s an opportunity the collection it will immediately going for the repayment that will happen. But at the same time we’ll be you know looking at the business development, construction progress and will will always be trying to keep the debt at optimum level, manageable level and which creates the higher shareholders value on overall basis.
Harsh Patak — Investor Relations
That’s good. So yeah that’s it from my side.
operator
Thank you. Our next question comes from the line of Chintan Mehta from Punishka family office. Please go ahead.
Unidentified Participant
Thanks for the opportunity. Just a question on the commercial part. What is the current lease rental income which would receive and the square foot we own and guidance for FY27 in FY28 and 9. Thanks.
Mallanna Sasalu — Chief Executive Officer, South
So the current rental yield that we are expecting or rather the rentals that we’re expecting right now in Gentec is around 75 rupees a square feet. Of course the IPR conversion that we have done is at 97.5 being the retail area and for our Aero City projects that we’re expecting is somewhere in the range of around 60 to 65 rupees.
Unidentified Participant
So combining total at the end of. Quarter consolidated level how much rental income we are going to own on FY27 and FY28 and 9.
Mallanna Sasalu — Chief Executive Officer, South
So the assets are coming for roti only by end of March and that’s when the rental is going to start. So all these both the effect of erasity and renting once fully leased will fetch us a rental of close to around 200 crores annuity.
Unidentified Participant
Okay. Any other project which is in pipeline.
Ashish R. Puravankara — Managing Director
We have a project in Bangalore, in Hebbal. I Think we have not started construction. We are now putting for approval. So we should be starting start pouring concrete in the project by quarter two of the next financial year.
Mallanna Sasalu — Chief Executive Officer, South
And the second phase of LCT and.
Ashish R. Puravankara — Managing Director
The second phase of.
operator
Thank you. Our next question comes from the line of Rajiv Rupani, an individual investor. Please go ahead.
Unidentified Participant
Yes sir. My first question was in our Mumbai redevelopment portfolio Our share is 2.67 million square feet. So could you please guide us what kind of revenue will this generate for the company as a whole?
Unidentified Speaker
This full 2.67 million square feet. See all our redevelopment projects was fully launched. The total GDP value for all our projects put together is close to around 17,000 crores. That includes projects which are not even launched right now. So I think from our and this portfolio continues to grow because we are looking at monthly acquisitions in this arena. We are one of the most premium players or premium players rather in this segment.
So we continue to be actively looking for opportunities in the open portfolio. The ones that we have already signed, launched and in the various stages of approvals are close to around 15,000 crores. Okay, my next question was a follow up question on the debt, sir. Year ending March 2020 our debt was about 2700 crores. Our interest cost about 340 crores. And now in nine months, September 25, our debt is about 4500 crores and the interest cost is about 495 crores. So I was just seeing the trend. The trend is the debt has gone up and the interest cost has gone as doubled.
Unidentified Participant
So how do you plan to going forward in the next three, four years? Do you plan to increase more debt for buying land or this shall be stable here or how do you plan to make it come down?
Mallanna Sasalu — Chief Executive Officer, South
One preamble to that is that if you can just sort of evaluate the kind of business development that has happened over the last 24 months across the south and the west region. And for good or bad reason, you know, the approvals are getting delayed. So that was the reason the number went up. But these again like I mentioned earlier, these are across the west and the South. These are extremely marquee locations. Excellent projects. I think they have come together. We’ve got the best of consultants, you know, international consultants on board and the product has really come out well.
So from now on, from the next 12 months, the way you know may go a little bit here and there but almost every month you’re going to sort of see a launch between the west and the South. So all the effort that has gone in over the last 24 months in terms of business development, the debt number going up, the investments that have gone into these projects for pre launch etc. Once we put it into production, right. You’re going to automatically start seeing cash flows on that bucket. And therefore, you know, as the sales pick up, the collections pick up, you’re going to see those debt numbers specific to those projects go down.
Unidentified Speaker
And add to what Ashish said. The most important part of this one is if you go back to 2020 and look at what was our portfolio value, that is our ability of the lands that were tied up and which were about to be launched and. And. The pipeline of the projects, maybe I do not know the exact number, maybe it was 15,000, 18,000. Today I think we have surpassed 50,000 crore rupees of top line portfolio number that we are currently handling. That is projects which have been launched and projects which have been launched and yet to be sold and the project which are about to be launched and the project which are, which are already money has been paid and in various stages of approvals and also some of the places where you already advanced the money and the last bit of duration going on.
If you look at this thing that we are in excess of 50,000 crore rupees of portfolio. So if you’re saying that what you mentioned is that the debt has gone from 2700 to 4700, that’s around 2000 crore rupees of debt increase has resulted in more than 30,000 crore rupees of capability to develop has increased. So which means that it’s a combination of that debt that what we have taken and the money that we have earned consistently by delivering what we are delivering at this point of time.
Niraj Kumar Gautam — President, Finance
To add to that as a strategy, as a strategy we are financing our growth. These investments we have done largely from the performance link instruments where the servicing of debt is linked to the project performance and hence it is not, it is not impacting our overall, you know, the cash flow or the pressure on the project. And you also refer about the interest accounting though all those performance instruments which we have issued. But interest as a prudent measure we keep accounting the interest and creating a liability in the balance sheet but in effect it is not impacting overall the operational cash flow for the company.
Unidentified Speaker
And also to add to that one, if you look at the pre sales numbers from 2020, 21 to now, we doubled there as well. So that’s already showing, the numbers are showing that where the trajectory is moving towards in the coming years.
Unidentified Participant
Thank you, that was helpful. My next question was on the dividend policy of the company. Our company has been very erratic in terms of paying dividend. It gives the dividend one year, then it skips for two years and then it’s again giving it, giving a dividend. So what is going to be the dividend policy going forward?
Rajat Rastogi — Chief Executive Officer of West Region & Commercial Assets Pan India
Yes, I see. I think by intention, let me say, I think the intent is obviously to reward the shareholders for the, for the support and the faith they have in the organization. I think the last four, five years have been unpredictable, starting from COVID etc. And then the call is today we are seeing the consolidation that’s happening across the major cities in terms of the strong brands. If I go back seven, eight years, even in a city like Bangalore as Kridai, we had 250 members. Almost 50% of them were launching projects. But today we are seeing, you cannot Name More than 10, 15 developers Maximum in a city that are actively launching projects.
So, you know, we are seeing projects come to us. So in terms of business, that’s a capital requirement for growth. This is the time in consolidation. There are certain projects which are in trouble. There are certain banks offering us projects. So this is nothing but investing for our future over the next five to seven years, securing marquee projects. So it’s a, it’s a, you know, quite honestly, it’s a decision between those two. But as an organization, yes, it is always there on our minds and you know, better the opportunity allows us, I think those years we will issue dividends.
Unidentified Participant
Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one on the touchstone telephone. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Ashish R. Puravankara — Managing Director
Thank you. Thank you everybody for joining our call and me, myself and my team is always available for if you have any further question, please write to us. We’ll answer those questions. Thank you very much. Thank you.
Harsh Patak — Investor Relations
Thank you. On behalf of MK Global Financial Services limited That concludes this conference. Thank you for joining us and you may now disconnect your lines.
Unidentified Speaker
Thank you.