Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Puravankara Ltd (NSE: PURVA) Q4 2026 Earnings Call dated May. 19, 2026
Corporate Participants:
Niraj Kumar Gautam — President, Finance
Mallanna Sasalu — Chief Executive Officer, South
Rajat Rastogi — Chief Executive Officer of West Region & Commercial Assets Pan India
Analysts:
Savita Singh — Analyst
Deepak Purswani — Analyst
Unidentified Participant
Harsh Patak — Analyst
Presentation:
Operator
Ladies and gentlemen, good morning and welcome to the Pura Pankara Limited Q4FY26 earnings conference call hosted by Dollar Capital Markets Private Limited. As a reminder, all participant lines will remain 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 the operator by pressing Star then zero on your touchstone telephone. Please note that this conference is being recorded.
I will now hand the conference over to Ms. Savita Singh from Dalek Capital Markets Private Limited for opening remarks. Thank you. And over to you, Savita.
Savita Singh — Analyst
Thank you, Ryan. Good morning everyone. I, Savita Singh, on behalf of Dalat Capital welcome you all for the Q4 earnings conference call of Purvankara Limited. I would like to welcome the management of Purvankara Limited and thank them for this opportunity. We have with us today Mr. Ashish Puran Purvankara Managing Director Malana Tashalu, CEO of South Mr. Rajat Rajat Astogi, CEO Ware and Commercial Assets and Mr. Meeraj Gautam, CFO for the company. I shall now hand over the call to Mr. Neeraj Gautam for the opening remarks.
Over to you sir.
Niraj Kumar Gautam — President, Finance
Thank you Savita. Thank you, Ran. Good morning everyone. I’m Neeraj Gautam and I welcome you all to Purvankara Limited earning conference call to discuss the performance for the fourth quarter and year ended FY26. The financial results, investor presentation and press release have been filed with stock exchanges and are available on the company website as well. I would also like to thank Develop Capital for hosting today’s call. I will begin with a brief overview of the macroeconomic and sector environment followed by the company’s operational and financial performance for the quarter and year ended FY26.
India’s economy remained resilient during FY25 26 with a real GDP growth estimated at 7.6% reinforcing its position among the fastest growing major economies globally. Growth was supported by a strong domestic demand, favorable policy environment and continued investment activity. Looking ahead, the RBI has projected a GDP growth of 6.9% for FY2627 compared to 7.6% in FY 2526 indicating a moderation from the current year’s high base. This expected easing is largely due to global sectors including geopolitical transition in West Asia which may lead to higher energy price, supply chain disruption and increased logistics cost.
Despite the external challenges, strong domestic demand continues to support the overall growth outlook on the Residential Real Estate front the market entered a phase of consolidation after a sustained period of Strong growth during Q4 fit in 26 housing sales across the top h CP is stood at approximately 4800 units. Buyer preference continue to shift towards premium and high value housing with homes priced above 10 million accounting for nearly 53% of overall residential sales reflecting a sustained demand for larger and lifestyle oriented developments.
On the commercial real estate side, India’s office market maintained a strong momentum recorded its highest ever quarterly leasing during Q4 FY26 with gross leasing activity reaching approximately 29.9 million square feet representing a 6% year on year growth. Demand remained broad based across key markets and continues to led by the global commodity centers which accounted for nearly 48% of total leasing activity during the quarter. The continued preference for high quality Grade A office assets coupled with limited new supply supported healthy occupancy levels and a stable rental growth across major office markets.
Overall, the outlook for the real estate sector remains positive supported by strong macroeconomic fundamentals, improving infrastructure, favorable demographics and continued institutional participation. Moving to our operational performance for the quarter and the Financial year ended FY26 FY26 has been a landmark year for the company. We have delivered our highest ever quarterly and annual sales performance supported by a strong launch momentum, healthy customer demand and improved realization across key Markets.
During Q4FY26 our presale stood at INR 3547 crores registering a strong growth of 190% year on year and 151% sequentially. The performance was driven by successful new launches and sustained traction across our existing portfolio for the full year. FY26 pre sale reached to an all time high of 7407 crores reflecting a robust year on year growth of 55%. Customer collection during Q4 FY26 is stood at INR12.13 crores up 36% year on year while FY26 collection reached to a record INR 4258 crores reflecting a growth of 15% year on year.
This growth was supported by a steady construction progress healthy conversion of sales into cash flows. Sales volume during Q4FY26 stood at 3.01 million square feet compared to 1.42 million square feet in Q4FY25 reflecting a strong demand momentum during the quarter. Average realization also improved significantly by 37% year year on year to INR 11,787 per square feet driven by better pricing and improved product mix across markets. For the full year FY26 total sales volume stood at 7.25 million square feet which average realization increased by 21% year on year to 10,213 per rupees per square feet highlighting a sustained demand for premium and higher value offering across the portfolio.
On the execution front, we handed over 1301 homes aggregating to 1.67 million square feet during Q4 FY26. This took our cumulative handovers for FY26 to 3747 homes aggregating 4.25 million square feet demonstrating our continued focus on timely delivery, execution excellence and customer satisfaction. Coming to financial performance for the quarter and year, total income grew to INR 1,541 crores in Q4FY26 compared to INR 564 crores in the same period last year reflecting a strong year on year growth of 1.173percent driven by higher handovers during the quarter.
For FY26, total income stood at 3846 crore compared to 2093 crores last year reflecting 84% year on year increase. On the profitability front we reported an EBITDA margin of 22% in Q4FY26 and reflecting a significant improvement in operational efficiency, better cost control, marketing leverage as a result of reported profit after tax of 111 crores for the quarter compared to a loss of 88 crore in single quarter previous financial year. Coming to our debt, our net Debt stood at INR2321 crores as on 31st March 2026 with a net debt equity ratio of 1.31 times during the quarter the net debt declined by INR160 crores.
Our cash and bank balance as on 31st March 2026 stood at INR16.95 crores indicating a strong liquidity profile and ensuring operational stability. Additionally, the cost of debt also declined further to 11.05%. Now moving to the launches and business development during the financial year we have launched three new projects Purva Silver Sky, Purva Northern Lights and Purva Estrella and seven new phases of existing projects with a total developer area of 6.39 million square feet of which approximately 3.939 million square feet came from new projects.
On the business development front FY26 was a strong year for us. We added six new projects across key markets including Mumbai and Bengaluru. During the year we added approximately over 12 million square feet of potential developable area with estimated gross development value of around 15,200 crores, significantly strengthening our long term growth pipeline in Mumbai. We secured two redevelopment opportunities at Chembur in Malabar Hills. The Chembur project involves eight residential societies spread across nearly four acres unlocking over 1.2 million square feet of developable area with an estimated GDV of around 2,100 crores.
The Malar project spans 1.43 acres and offers approximately 0.7 million square feet of developable potential with an estimated GDP of around 2,700 crores. In Bengaluru we continue to strengthen our presence across key micro market through multiple business development initiatives during the year. We recently added a joint development project in Henro Road with a salable area of approximately 0.84 million square feet with an estimated GDP of over 1,300 crores. We also added a joint development project in Bulgari in East Bengal with a development potential of around 0.85 million square feet for an estimated GDP of over 1000 crores during the along with 53.5 acres land parcel in Takti Valley having a development potential of approximately 6.4 million square feet and estimated GDV of around 4800 crores.
Earlier during the year we had entered into a joint development agreement with KKVN Property Holdings LLP in the Northern Bangalore near the airport with a developable potential of approximately 3.48 million square feet and an estimated GDP of INR 3300 crores. We subsequently launched Purva Northern Lights during 2, 4 highlighting our strong execution capabilities and ability to quickly operationalize and monetize acquired business development opportunities coming to the outlook for the next financial year.
Going forward, we remain positive on the momentum to long term outlook for the residential real estate sector supported by a strong macroeconomic fundamentals, improving infrastructure and sustained end user demand particularly in premium and well located developments. While global uncertainties may continue to impact sentiment, underlying demand across key markets remain healthy. For FY26 27 we would like to provide a guidance for both sales performance and debt reduction. We are targeting a presales value of approximately 11,200 crores for FY2627 of the total projected numbers around 48% is expected to be driven by sustained sales with the remaining 52% anticipated to come from new project launches.
On the balance sheet front, we are targeting a debt reduction of approximately 750 crores for FY2627 excluding any incremental borrowing undertaken for strategic business development opportunities. Thank you for your patience with this. We can open for the call for questions. Thank you.
Questions and Answers:
Operator
Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, a reminder. If you wish to ask a question, please press star and 1.
We take the first question from the line of Deepak Parswani from Swan Investment managers. Please go ahead.
Deepak Purswani
Yeah. Hi. Congratulations for very good set of operating metrics, strong guidance. Just wanted to check it out. Couple of things. Firstly, if I were look. If I were to look into the slide number 18 for the planned project pipeline. If you can give the broader sense in terms of the key project like Bandra, how we are placed in terms of the launch pipeline and what would be the GDV of these project as a whole which we are looking out to launch in the next year.
Unidentified Participant
Hi. Good morning everyone. My name is Rajat. The Bandra launch as of now the vacation notice is underway. Members are leaving by end of June. We hope that the members will vacate post which we will demolish and start working on our launching timeline. So I think we’re looking at around the share of the Diwali as a launch period for us to launch. The second part of the question was on the GDV the GDP of the asset right now is around 2700 crores up for a sale portion.
Deepak Purswani
And for the entire launch pipeline of 14.85 million square feet inventory as a whole, would it be fair to say this would be somewhere close to 20,000 odd Karo kind of inventory?
Niraj Kumar Gautam
22,547 crore to be the size.
Deepak Purswani
Okay. And see, I mean historically if I were to look from the launch pipeline point of view there has been some slippages in terms of the launching the project given. I do understand there has been some delay in the approval. Looking at the current progress of the launch pipeline, how confident are we we would be launching these project on time or how should we look into this pipeline from the next year perspective?
Mallanna Sasalu
Yeah, you’re right. And maybe the previous year that we had some launches that we did which did not go through. And that’s all the more reason why that we were confident that this will go through. Because whatever reason that whether the E KATA or some of the changing parameters in the planning authority and also creation of the global the greater Bangalore authority than the four, five divisions which really took control. And if you look at across Bangalore even all the entire sector in Bangalore is having difficulty in launching the projects.
So given that situation that now it’s all matured and they’re all in the last also. Now the question here is how to space them in such a way that the entire team and the resources and everything are deployed for successful launches of the project. We’re reasonably confident or I should say that most of the projects have to go through. The most of projects will go through to the launch.
Deepak Purswani
Okay. And just on the second part of the business just wanted to check it out on the cash flow point of view. See I mean we had a very strong sales momentum this time especially in Q4. And if I were to look here as a whole, I just wanted to get the sense if I’m looking into the sales collection number on the year on year basis it’s just a 15% and on the quarter on quarter relatively not seen significant growth. Especially if I were to look on the western side region collection which we have given in the presentation that seems to be more or less flattish since last three quarters.
So if you can give a broader sense in terms of the collection, how should we see from the next year perspective.
Niraj Kumar Gautam
What happened is if you look at our quarter on quarter sales that more than 3,000 crore sales has come in Q4. And this is this comes from largely because of the two big launches which we done in the quarter which is Northern Lights in Bangalore and Purva Stella in Mumbai. Because this launches happen in in the last quarter and hence collection will spill into the next financial year. So that means the sales has been committed, receivable has been committed all while we have to convert this into the billing and collection etc.
Hence all the collection for all these sales that the sales which PCs has done during the entire financial about 7,000 more than 10,000 crores. The collection will follow in the next financial year. And also we have given a guidance for 11,200 crore of sales for the next financial year. The collection from that sales also will come and hence we are. You know the outlook is absolutely positive and there is a sustained growth and collection which we are expecting for next financial year.
Deepak Purswani
Can you please quantify the collection for the next year point of view? How should we see that as a number?
Niraj Kumar Gautam
We have given a guidance for sales and debt reduction but correctly we have not given. But however I’ll give you estimates offline. We Connect and I’ll give you an estimate what kind of correction we are looking at.
Mallanna Sasalu
It will be reasonable to expect that it is not going to be flattish and it is going to be, you know, in double digits. You will see that, you know, it’s becoming better than what it is right now. It’s. It’s reasonable to estimate and we may not have the proper number to say that, but nevertheless then from the sales that whatever the projections that we have done and also the sales that has happened in the previous year, if 7,400 crore piece of sales have happened, it’s reasonable to expect that with those big launches in the first year that we collect almost 45 to 50% of the whatever the sales that might have happened.
So which should really augur well with our collections.
Deepak Purswani
Okay. And just finally on the operating surplus after interest and tax and interest. If I were to look into this year, this year we have done actually 270 crore versus 292 crore last year. On the collection part, we already had a discussion, just wanted to check it out. Another component which has seen significant increase is interest expenses which has increased to 600 crore. Now if you can give a sense, I mean you do realize that next year. Yeah, that will reduce next year.
Niraj Kumar Gautam
One thing you have to look at is that business. If I look at business as on a going concern basis, that means the kind of inflow I am doing in the business kind of outflow I am doing in the business. Whether overall basis I am generating the surplus after meeting all my expenses or not. So if you look at not Only the last 2 financial year for last 4, 5 more than 5, 5 financial year we have been generating continuously operating surplus. Now why it is, you know, kind of this kind of number. But operating surplus is also function of a kind of outflow I’m doing today as I given a kind of launch pipeline.
So today the collections from which collection we are making, not only I am investing that money on completing the construction of existing projects, we are also investing this money for making the other projects ready for launches. And hence the money was getting deployed on a business development only. And, and in the after this, all the business development expenses after the meeting, the launch expenses and construction also and all also paying all my interest, we are generating surplus. That is how we should look at the cash flow.
That is how we are looking at it. Interest, yes, interest is a little bit has gone up because of that incremental debt which we have taken though these debts we have not taken for the business operation. These debts we have taken for the business development. Yet we are servicing and paying off interest out of the ongoing inflows. And yet I’m generating surplus. That is how you have to look at it.
Deepak Purswani
So see, I mean if I were to look even if at the grant debt level which is somewhere close to 3900 or 4000 and if I were to look into the annual interest cost of 600 plus crore, that seems to be at a 15% kind of interest cost. Right? I mean how should we see this number on the absolute basis
Niraj Kumar Gautam
You have to select connect offline for this. What happens is it cannot be debt is taken over a period of time. Not that you know, it can be overall any calculate interest like this. Some of the processing fee also have to pay. Some amortization has to happen. I can give you the connect a bit offline. I can give you the detailed working of how infrastructure may write that.
Deepak Purswani
Okay. Okay. Finally if you can just give the update on the commercial property portfolio. I think we have received the OC for Zentech this time and how should we see commercial portfolio shaping up over a period of time? And finally on the position point of view or delivery point of view, how should we see FY27 as a whole? If you can throw light on these two aspects that would be really helpful.
Unidentified Participant
So Deepak, on the commercial business, we have received O.C. For Aero City. The leasing process for the asset is underway. We’re getting very, very good inquiries right now and we are pretty hopeful that ending the quarter we will start releasing in Aerocity. With regards to Zentech, we’re expecting the OC to come anytime this month. And right now I think last year was a good year for Zentech. In fact this year also we’ve started leasing in Zentec so that that asset is also picking up really well.
Overall last year we did almost 2.6 lakh square feet of sales and leasing in a commercial assets. And that number I think is going to substantially increase in this financial year.
Deepak Purswani
Okay, and what was the delivery guideline for the next year for FY27? I
Unidentified Participant
Think our two under construction assets have both been delivered. So I think we have a total of close to around a 2 million odd square feet of assets which is delivered now. The other assets which are in the other stages of construction and planning, they want to take some time for for delivery
Deepak Purswani
Delivery guideline for the residential business as a whole for FY27. How should we look into it?
Niraj Kumar Gautam
And Deepak, when you come we can give you the number offline.
Deepak Purswani
Sure, sure. No problem. Yeah. Wish you all the best and congratulations. Thank you. Strong operating. Thank you.
Operator
Thank you. Ladies and gentlemen, a reminder, if you wish to ask a question please press star and 1. We take the next question from the line of Rupin Matthew who is an individual investor. Please go ahead.
Unidentified Participant
Hello. Hello. Am I audible? Yeah, you’re
Niraj Kumar Gautam
Audible. Please go ahead.
Unidentified Participant
I just have a few questions. So where was the incremental debt used for?
Niraj Kumar Gautam
Incremental debt has used for the business development. If you look at. We have also mentioned about what kind of business development we had done in next 12 month. And if you go to our slide business development we will go to slide number 32. We have given us detail about six projects which have added of 15,200 crore of GDP. And that is that. That is where the incremental debt had been utilized. Partly the money would have also gone for the working capital for funding the launch expenses etc. But substantial amount of incremental borrowing has used only and only for business development purpose.
Unidentified Participant
Oh okay. And one more question was how much does the Lokhandwala project contribute for this quarter in three sales. So Lokhandwala has done slightly more than 800 odd crores of sales in water. Okay. Thank you. Thank you.
Operator
Thank you. We take the next question from the line of Chintan Mehta from Panashkia family office. Please go ahead.
Unidentified Participant
Thanks for the opportunity sir. But I’m congratulations on that query regarding total estimated surplus cash flow is 19,290 crore. To arrive at that number what kind of GDVS we have included and after this 19000 crore of cash surplus what kind of land we will remain with
Niraj Kumar Gautam
All three are. You know the. You know different question in. In itself. See if. If you go to our slide number 25. How we arrive at these surpluses are. We have. There is a component of. This is about 8,816 crore which is coming from the. The surplus from all current ongoing projects where either we have launched or you’re about to launch. If I reduce all my construction and project expenses what kind of surplus we are estimating to generate after that we have a 2 commercial asset. If we choose to come exit out of those assets what kind of surplus we are going to generate which is 2131 crore.
Beside that we have given a guidance for the guidance for the new launch pipeline. If those new launches. If I estimate a surplus from those new launches that will come up about another 8,343 crore and thereby it adds up all three. The collect estimated surplus from current Ongoing projects commercial projects. In the launch pipeline it comes to 19,219 crore. So coming to the what kind of GDV we are taken the launch pipeline GDB we are told is about 22,000 odd crore ongoing project. It’s not coming out of the GD the ongoing project is coming from the balance collection form sold or unsold units which is remain there and then that is.
That is how it can be calculated. I hope I clarified your questions.
Unidentified Participant
So this surplus is a free cash flow to the after all the expenses. So this. This cash flow
Niraj Kumar Gautam
Is. We have to meet sales and marketing expenses expenses out of it. We have to pay income tax out out of it. And of course there there are there what are our debts fitting our balance that debt needs to be paid out of the collections surplus.
Unidentified Participant
And after this how much land bank approximately we will be left with
Niraj Kumar Gautam
Land bank seat is. Land bank seat is up. Our current land set is about 56.48 million square feet. Out of that we have given a guidance of about 21 million square feet right now. So 56 minus 21 is about 3035 million square feet. Still lending will remain with us
Unidentified Participant
After this 19,000 crore even for present rating.
Niraj Kumar Gautam
Yes, yes that if you refer to our slide number 15 of our investor presentation there we are giving detail of what kind of a lens set we have and if I minus it from the launch guidance which you have given this number will come
Unidentified Participant
Understand. In fact last many times I was asking about any diversification apart from residential visit and we were some on initiation or some finding out we have on something on card
Niraj Kumar Gautam
Commercial has already we have commercial business already two commercial asset hasn’t developed a new as a has mentioned ebbal we are coming up with the new commercial business rest. I think both the CEOs are there they can give some thoughts about it that any new vertical you want to explore.
Unidentified Participant
So just to add to what we are doing on commercial we’re also slowly and steadily developing our retail portfolio. Like in Mumbai in one of our projects in Thane we have almost a 3 lakh square feet of retail portfolio that we are developing over there. Also as a business strategy and expansion we’re looking at the growth verticals like data center and warehousing where we are looking at right opportunities opportunities to enter. So from an overall business perspective I think we are open to opportunities in terms of whether we get the requisite benchmark IRR rates and then we’ll explore that.
But right now data center and warehousing and retail are the three areas that we are looking at opportunities but any timeline you want to give like two quarter. It all depends upon the right opportunity at the right time. So we are open in the market. We’re looking at a meeting meeting the respective partners. But right now I think it’s difficult to give any timelines. As I said, it’s the right opportunity that we’ll enter. Okay. On a Star works side, what is the current order book size and any possibility we can separately start reporting with it
Niraj Kumar Gautam
Right now. Starbucks. It’s not a segment of Purvanga related business. However, financial statement of Starbucks is currently separately published and uploaded on our website. It’s not a listed company hence I do not need to to the stock extent but our website we publish financial statement of Starbuck as as of now financial statement of Starbucks is up to FY 2025 is uploaded and available FY26. After this financial result will publish the starboard financial statement. As far as publishing is concerned, coming to the order book is concerned Starbuck today have a order book of more than 2000 crore.
Unidentified Participant
Okay, fantastic. And sir, last question from my side. In geographical diversification we are looking on the east side like West Bengal or we are the emerging real estate or a possible percentage xr. Again we are looking apart from south and belt. We are looking at NCR as a. As a. As expansion strategy for our business. I think our teams are there. Again as I said we’re looking at right opportunities. We’re looking primarily at the region of Delhi, Noida and Gurgaon to focus on right now. Okay. Not tier 2 towns or anything like kind of opportunities.
We are looking at not as part of the strategy right now. Okay. Okay. Thank you so much. That’s from my side. Congratulations on website of number. Thank you.
Operator
Thank you. We take the next question from the line. Who is an individual investor? Please go ahead.
Unidentified Participant
Hello. Am I audible?
Niraj Kumar Gautam
Yes. Yes you are.
Unidentified Participant
Yeah. So what is the update on Malabha project on the approval side and what is the price per square feet? We are looking in this project. So Malaba project. I think that the TA the has been completed. I think we are yet to register it which we were going to do in the by next 45 odd days. Subsequently we’re going to apply for approvals. So I think the approval timeline is between nine to 12 months. The pricing that we’re looking at is around 115,000 to 120,000 rupees on carpet areas. Okay. And I have one more question.
And also given the ongoing geopolitical uncertainties and Are you witnessing any change in customer behavior, particularly in delays in booking decisions from end users? And how is the actually company managing the impact of rising construction costs? Do you expect any meaningful effect on project margins or demand going forward?
Mallanna Sasalu
I think it’s in two buckets that you asked the question one is what is how are the non resident Indians or the buyers from outside how they are behaving? Since we had a very successful launch quarter last previous quarter that we didn’t, we didn’t find anything that is substantially different from what it is and in fact we had a good sales from NRI market. So as we go forward. Yes, you know, any such situation like a war is not something that is desirable and it will have the effect on people. But whether it is a positive or negative at this point of time we couldn’t say that because people, yes, generally people want to invest from outside the country in India when there is distress outside the country.
Also one thing that needs to be taken into consideration is the rupee depreciation. The rupee depreciation should encourage people to put more money into India coupled with uncertainties. At the same time we should also be mindful of people maybe having some uncertainties about their earnings outside the country because of whatever is happening. So we’re cautiously looking at it and maybe in couple of months that things will be sorting out. I believe let us look at it as part of the second part of this time as the construction cost at this point of time.
Yes, we are looking at some 6 to 7% construction cost going up in terms of the because of the diesel prices which went up recently. So but you know, with the kind of margins and all things that are already taken into consideration and the contingencies that are developed at this point of time, we are not unduly concerned about it. But as we go forward again in the next couple of months, we’ll have to wait and watch how all these things unfold.
Unidentified Participant
Okay sir, thank you for the opportunity.
Mallanna Sasalu
Thank you.
Operator
Thank you. Participants are reminder. If you wish to ask a question, please press star and 1. We take the next question from the line of Manik Shah who is an individual investor. Please go ahead.
Unidentified Participant
Good morning. So I just want to know like what is the per square feet we are charging on the Northern Light project? And like what is the broader margin on such development we can expect and what is the contribution of this project in this quarter? Like p sales contribution,
Mallanna Sasalu
Northern Lights we are at around 10,700 rupees per square feet. And above is what is the average Price realization is what we say. So that’s where we are at this point of time. And usually these kind of projects make in excess of 20 to 21% gross profit margins are there in a project like this. Apart from that, the third question is that I think it contributed for 1,100 crore rupees. 100 to 1200 crore rupees for the quarter SP sales number
Unidentified Participant
Also. Okay. And I also want to know like can you throw some light on the margins in the redevelopment projects as well as in Purva Polident and the Purva Land project on the retail projects. Our strategy has been clear and that we want to take opportunities which are close to around 20% margin and that’s what we’re following. Even in the recent launch that we did in Purva Estrela I think our margins are close to 20% now. Slightly upwards of 20%. Neeraj, you want to talk?
Niraj Kumar Gautam
Yeah. So Purva Land is if you’re referring to the plotted project, plotted project’s margin are 35% plus all the product. Maybe 40%. 35 to 40%. We earn a gross profit margin in the product development projects
Mallanna Sasalu
Also. It is, it is not, you know, it’s depend on the each project also. So there may be some projects where we go for joint development with a partner then maybe our margins could be a little bit lower as well. So it’s just project to project specific as Neeraj spoke. And it’s 30 to 35%.
Unidentified Participant
Got it. Thank you so much. Thank you.
Mallanna Sasalu
Thank you.
Operator
Thank you. We take the next question from the line of Harsh Pathak from Motilalos while Financial Services Ltd. Please go ahead.
Harsh Patak
Yeah. Hi, good morning and congratulations Ashish and team for the strong Q4 performance and very encouraging to see the growth guidance as well as you know the outlook on debt reduction. So my first question is. Yeah, so my first question is on the growth guidance that we have given and especially now that we are ramping up in Bangalore and Mumbai so particularly to Bangalore given this, you know, narrative on the demand impact due to AI. So what kind of dynamics are we seeing on ground and what are the strategies we are adopting to counter that?
Mallanna Sasalu
I don’t see that in the residential development at least that we are seeing any kind of a large difference. Yes. If you look at what I call the frenzy a year back that might not be there but it’s a very realistic market. Bangalore being where end user market. So it’s been. The sales have been steady. So you can also look at from our previous the launch that what we had, we did extremely well and we sold around 30% of our project. And also that now there are another three projects which are coming up and we are studying the market, warming up the market and we’ve got some encouraging results from there as well.
So whether it is AI, I would actually look at it as a positive thing for any place which is technology centric simply because AI also requires work and implementation and everything else that goes along with that. And with the kind of AI plus GCC that is the combination, I expect the markets to be doing better, even better. And it’s also kind of reflected in what’s happening in the commercial offer in the first quarter, what is happening in this quarter of the new year and also the last quarter of the last year.
So I believe that it is AI is a good thing to happen and it will be good for all businesses which serve the people.
Harsh Patak
In the last one or two months, have you seen some difference in the footfalls or the conversion ratios at the projects that are ongoing? Any color on that?
Mallanna Sasalu
As I said that if you look at the last one year, one year, one year before, the frenzy which I spoke about may not be there, but it is a very, very steady market. I have not seen any decrease in the footfall. Maybe people sometimes take a little bit more time to decide. But we are quite comfortable with it. And it is most of the sales and the numbers are matching. Whatever the plan for that, we had to sell. Quite comfortable.
Harsh Patak
Understood. And I see the response at the Lokhandwala project was also, you know, very strong. So what kind of strategies we have adopted? Because we have seen there are, there are players in the vicinity who have already been in the Mumbai market. So what kind of strategies did we adopt to, you know, capture this market and how do we intend to, you know, get capture a higher sales velocity at the upcoming projects? Mumbai,
Unidentified Participant
Honestly, I think our brand is playing a very, very key role in the overall, you know, the numbers that we are achieving right now. Of course not to say that we spend a lot of time in understanding the consumers, getting the right product in the market. And I think that’s going to be a strategy for even the upcoming launches that we’re going to be having in Mumbai. So we as a company, as a part of the process, there’s a lot of time we spend on design. I think that was one of the big differences.
We also spend a lot of time in identifying the asset that we want to enter, like for example, the Lokhanwala asset right next to the Lokhanwala market. And Lokonwala Circle I think itself was I think a big bonus point for us. Similarly like the other launches like that we’re going to have is the Pali Hill or A Breeze Candy or even the Devonar Bag launch that we’re going to have planning this year, the amount of effort that we making at each and every checkpoint asset, product and the sales strategy, I think that is all coming up to resulting in these kind of efficiencies numbers.
Harsh Patak
Understood sir. And in terms of our expansion in the Mumbai market, how are we you know looking at different micro markets and what is, what are the kind of projects under evaluation currently?
Unidentified Participant
So hush. I think as we, we’ve always said that we want to be catering to all parts of Mumbai. We start from Domibali and Thane to even the, you know, the most expensive part of Mumbai in Kapha or even in Bridge handy. So from a strategy point of view that will continue to be a mantra in Mumbai’s growth story. We want to be more in the western suburb. We also want to grow in the eastern side of the silic city. Also we want to grow in the Mumbai 3.0. So we will be technically in all parts of Mumbai and cater to entire consumer strata of Mumbai.
Harsh Patak
Understood. And Rajit, on the portion on the commercial segment that you mentioned in one of the earlier questions, so what is the kind of traction you said that you know you are getting an encouraging traction but if you can you know quantify or maybe give some deeper color into that that will be really helpful.
Unidentified Participant
Oh yeah, I think the traction is phenomenal. I think if you look at the Zentec asset we already almost 44% either leased or sold and I think all the leasing is gone to grade A company. So I think from a traction even I think when the OC is expected in next 15, 20 days time. So even before the OC we are on 40, 45% leased and sold. Similarly on the Everct I think with a large grade A platinum rated asset I think we are obviously talking to a lot of GCCs right now. We’re talking to a lot filling in a lot of RFPs.
In fact the quantum RFP that we build is on an excess of around a couple of million knots square feet. So we are very, very hopeful that in next couple of quarters we’ll be able to do a couple of large deals in Aero City and the traction is Gentex anyways going on. So I think the momentum on the commercial business is also very, very positive.
Harsh Patak
That’s really encouraging. And finally on the data center bit that you mentioned earlier. So what is the outlook there? I mean how are we planning to enter this segment and what is a broader roadmap to this?
Unidentified Participant
So as you know that data center is a very, very micro market centric business, right? I mean Mumbai is around 49% of the market followed by Chennai. We are open to opportunities, we are talking to partners. But I cannot give any timeline in terms of when we will enter this business. If a right opportunity basis our benchmark IRR meets us. I think that’s when we go to enter the segment.
Harsh Patak
So this will be I. I believe a broadly a leasing. Leasing business, right? Not we won’t be partnering with any data center operator or any such thing.
Unidentified Participant
Yeah. It will be purely on the leasing side.
Harsh Patak
Understood it from my side. And again many congratulations for the performance and you know, the encouraging guidance.
Unidentified Participant
Thank you.
Operator
Thank you. We take the next question from the line of Dhananjay Mishra from Centrum Broking. Please go ahead.
Rajat Rastogi
Yeah. Hello sir. Am I audible?
Mallanna Sasalu
Yes, you are.
Rajat Rastogi
So congrats on very strong operating performance and very encouraging guidance as well. Just a bookkeeping question with respect to debt which is not including NCD of 1400 crore. So in N P L whatever interest we are providing of 50 crore. So are we also considering interest to be payable on LCD in the Act 650 crore? Yes, yes of course, yes.
Niraj Kumar Gautam
Because because of the accounting norms and borrowing standards that is a payable debt or even if a debt which I have taken which is a payable as a performance function of the project also. But on a fair value accounting perspective I have to calculate the. The cost fair value cost of that instrument and we have to charge to the PNL that is accounting but we are not paying
Rajat Rastogi
Interest.
Niraj Kumar Gautam
Because for example I can give you the. If I. If I take in the money from which is our equity in nature where my repayment is a function of the performance of the project because the servicing and the prepayment has been linked with the performance of the project. So essentially if I, if I dissect if by any chance I’m sure all our project would do well. But by any chance project doesn’t do well then my cost of debt even for equipment that will come down. But for the all fair value accounting perspective today we have to get as a head the you know that continued and taken arm’s basis what could have been the cost.
On that basis we have a charge of PNL and that has been done.
Rajat Rastogi
So I mean interest cost or open rate, whatever you Say that will be higher than the 11 of the overall book, right?
Niraj Kumar Gautam
Of course fair value will be more of that particular instrument not over my overall book is at 11.05%. However, that particular instrument where which we. Against which we have raised money to buy land. That particular cost will be more. Again as I said the cost of more or less would be the function of the performance of the project. But today higher than the. You know the 11.05%.
Rajat Rastogi
Okay. So 750 crore reduction plan we have that is on net debt of 2300 crores not the gross debt. Right? It’s
Niraj Kumar Gautam
The same thing. That is after reducing cash and bank balances in my gross debt reduced by 750 crore. The same amount will be reduced by the net debt as well.
Rajat Rastogi
I mean if we use our cash to reduce our gross debt. So net debt will be same.
Niraj Kumar Gautam
I’ll not be seek cash is not that I’m. You know a. My scheduled repayment is about 800 crore. This. This. This financial 836 crore. So whatever said and done my debt will be reduced by 836 crore. Besides that I’ll be also you know doing some excess collection and then some loan repayment happen through the SI itself. So those repayment will happen from project level itself. As far as gas and gas and cash equivalent is concerned. It has multiple uses. If some cash is sitting in the rent account which is meet for only project is still after meeting all my project project cost servicing all interest.
If there any circles enough, I’ll use for EP as well.
Rajat Rastogi
So 750 crore reduction plan on growth date, right? Okay. Thank you.
Operator
Thank you. Participants who wish to ask a question please press star and 1. We take the next question from the line of Rohan Joshi, an individual investor. Please go ahead.
Unidentified Participant
Hi sir. Firstly I would like to thank you. Congratulate you on a great set of numbers. And sir, we have done really well in FY26 in terms of pre sales and collection. And I know we usually don’t give such forward looking guidance. But can we expect such growth going forward? And what will be the geographical split and how it we
Niraj Kumar Gautam
Have given guidance this financial year. In my opening remark we have mentioned that next financially we are targeting sales of 11,200 crore as a company as a whole. Out of that about 7,000 crore will come from the southern market. And remaining sales we are expecting to come from the west and commercial business.
Unidentified Participant
Okay sir, I would like to ask one more question that are we looking into the senior housing space as we have seen Many players from the north has entered into it and it has a bit of higher margins. So I just would like a comment on that.
Mallanna Sasalu
Yeah, so basically because we are developing large townships kind of projects, right? No one or some of the projects are in excess of 2 million and 3 million. And so where we have number of towers. And so now we would like to look at it, explore the possibility of putting one or two towers into this senior living at the same time. Senior living has three different components. That is one is the real estate, the other one is the hospitality, the other one is the health care. So do we want to become the service providers ourselves?
Is another question that we have to. We are just exploring internally but being in there as real estate developers and I think that that is a must for us as we go forward as the population also will age and also the people who have the affordability are becoming older. And so I’m sure that there is a great opportunity in this and we will definitely participate.
Unidentified Participant
Okay, that was it. Thank
Operator
You. Thank you. Ladies and gentlemen, have there are no further questions from the participants. I now hand the conference over to the management for their closing comments.
Niraj Kumar Gautam
Thank you everybody for joining this conference call and I hope myself and my colleagues have been able to answer all your questions. For any further questions you reach out to us on our mail ID which is provided in Investor Presentation. We’ll be happy to giving me information. Thank you very much once again.
Operator
Thank you on behalf of Dalet Capital Markets Private Limited. That concludes this conference call. Thank you for joining us. And you may now disconnect your lines.