Shriram Properties Ltd (NSE: SHRIRAMPPS) Q4 2025 Earnings Call dated May. 27, 2025
Corporate Participants:
Unidentified Speaker
Gopalakrishnan J — Chief Executive Officer
Ravindra Kumar Pandey — Chief Financial Officer
Analysts:
Unidentified Participant
Dhananjay Mishra — Analyst
Vidisha — Analyst
Nitin Jain — Analyst
Raj Mehta — Analyst
Hitentra Gupta — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Sriram properties queue for NFY 25 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Gopal Krishnan, J. Ed Group CEO, Sriram Properties Ltd. Thank you. And over to you, sir.
Gopalakrishnan J — Chief Executive Officer
Good evening everyone and thank you for joining us on our Q4 and FY25 earnings call. My name is Gopal Krishnan. I am Ed and CEO for Sriram Property. I am joined by my colleague Mr. Ravindra Pandey, our new CFO who will be walking you through the presentation and then both of us will join in answering questions as you may have. Before he starts, I wish to make an introductory remark saying we have delivered a resilient and a satisfying performance during FY25 despite external challenges on the approval and OC front faced during the year. Our results are testament to the strength and agility of our operating platform, our focused strategy and unwavering commitment of our team.
For the full year we achieved sales volumes of 4.3 million square feet, sales values of 2284, 2284 crores and our Q4 was a more robust quarter with a strong momentum in handovers. With over 1400 homes delivered during quarter alone. All of these factors in Q4 has contributed to our strong revenue recognition on a full year basis. We conclude the year with a total revenue of 973 crores and a net profit of 77 crores marking it as our highest annual profit since listing. Importantly, our operational excellence also translated into a record high customer collections of 1484 crores and a reduction in net debt by by 26% to take the debt equity to about 0.241, among the lowest in the sector.
Our performance highlights our commitment to prudent capital allocation and Disciplined growth. With over 305 crores of operating cash flows and 273 crores of free cash flow before new investments, we are well positioned to accelerate our growth agenda. Looking ahead, we are entering FY26 with a strong momentum. With robust pipeline including key launches in Bangalore and Pune, we are confident of sustaining our growth trajectory. Our focus will remain on faster execution, timely handover and value creation for all our stakeholders.
At this stage I would request my colleague Mr. Ravindra Pandey, our CFO to walk us through the results both quarterly and full year financial performance and operating performance. Once he completes the presentation, I will join him in answering questions that you may have. Thank you. And over to Mr. Pandey.
Ravindra Kumar Pandey — Chief Financial Officer
Good evening everyone. Thank you for taking time to join us today as you present the performance highlight for Q4 and FY25 and also the outlook for FY26. You have uploaded the presentation on the website of the company and the stock exchanges and I hope all you have access to it. I am referring to the presentation number. Presentation page number three. I want to set the context for my performance. FY25 has been a muted but satisfactory year viewed in the context of significant external and regulatory headwinds faced not just by us but the regional industry. Q2 and Q3 were particularly challenging quarters as we encountered delays in approvals and OC processes.
Apart from election, regulatory transitions and new policy changes like E. Khata and Cauvery, two glitches in Bangalore which impacted our initiations. These delayed approvals and OC came through but not but only towards end of the Q4. This pushed our launches to Q1 26 and state revenue recognition to some extent even though we improved most of the deferred revenue during Q4. That said, we made significant strides in Q4. I will walk you through quarterly and full year highlights now. Before I do, just want to emphasize that the approval and OCE concerns are hopefully behind us. We have launched our Pune project already and Bangalore launch is scheduled next month.
From the market perspective, demand remained strong and muted absorptions were clearly due to supply side concern. Demand has been underpinned by resilient economy, stable interest rate and favorable demographics all pointing to continued appetite for quality housing in our core market. We are already seeing sign of regulatory process stabilization and our launch momentum is picking up. This gives us confidence in a stronger FY26 with a well start and timely launch pipeline. In summary, while FY25 posed real challenges, we responded with focused execution, operation resilience and commitment to delivery. We have not only met our revised guidance but also laid the groundwork for a more robust and growth oriented FY26.
Now I refer to slide number 4. Let us now look at performance highlights for FY25. We achieved sales of 4.31 million square feet and sales value of 2,288 crore, both nearly flat at last year levels due to delay in launches led by approval consent, we relied heavily on sustainable sales. We witnessed highest ever collections of 1484 crore driven by robust construction program. On the handover side, we navigated significant headwinds and delivered nine projects involving 4.2 million square feet and successfully handled over 3,150 units which is a new benchmark for self delivering 1,400 plus units in one quarter.
That too with OC coming only towards end of the quarter reaffirms our internal capabilities reflecting renowned handover momentum in Q4 we closed this year with revenues of 973 crores, gross profit of 249 crores, EBITDA of 203 crores and profit after tax of 77 crores. Margin remains healthy 30% at GAAP, 21% at ETA and 8% at PAT. Had we received OC and E Cata on time, our handover volumes and revenues could have been materially higher. Referring to slide number five, looking at Q4 it was clearly one of the strongest quarter of the year both operationally and financially.
Even with deferred 1.32 million square feet up by 5% quarter on quarter, Sales value remained flat due to product mix variations on collection. Q4 was outstanding at 455 crores, a growth of 35% year on year and 31% quarter on quarter. This was largely driven by the handover of 1396 units, 119% increase over Q3. Q4 revenues stood at 427 crores, EBITDA at 89 crores and paired at 48 crores, up by 137% year on year and 267% quarter on quarter. Q4 not only helped us recover last ground from the earlier part of the year, but also reaffirmed the strength of our execution, collections and delivery mechanism even in low launch quarter.
Referring to slide number six, we have captured quarterly trends in the KPI that we spoke short while ago. Moving to slide number seven, let me now share some insight on the market environment. We observed consistent demand in the mid and Mid Housing segment, SPL’s strategic pivot in recent years. To us this segment has proven to be the right move. As I mentioned short while ago, industry wide launches remain subdued throughout FY25 primarily due to regulatory bottlenecks. SPL sales trends are in sync with the SSD as can be seen from the bottom chart. On the regulatory front, we are seeing greater predictability and stability.
The challenges around approvals that affected Most of your FY25 appears to be easy. While we remain cautious, we do not expect the kind of disruption we saw last year to repeat in FY26. SPL is fully prepared to capitalize on the momentum building in the market. Re Enter your 526 with renewed confidence and clarity. Referring to slide number 8, we have highlighted most of these points earlier. Just re emphasize a few sales volume and value nearly flat year on year reflecting the impact of deferment of launches to Q1 FY26 FY25 collections at the card high Q4 collections are up by 35% year on year and 31% quarter on quarter.
Completed nine projects involving 4.2 million square feet of developments in FY25. Customer handovers at a record high for full year and Q4 marked strong growth on quarter, on quarter and year. On year, 26% of our handovers of FY25 were in JV projects, namely Sriram 107 SE and Sriram Whitefield in Bangalore. Hence a part of the handover impact reflected in our revenues from operations and remaining a share of profit from gv. Since both are our core operations, they are presented appropriately in the financial statement unfinancials it was satisfactory here as delayed OC have impacted during Q to Q3, but we could overcome substantially in Q4 despite receipt of OC by end of the quarter.
If we had succeeded in these earlier, our revenue could have been materially higher. Our full year revenue and earnings were nearly flat but were Significantly higher during Q4. I will explain more in detail in the financial slide on project pipeline. Our business development momentum is picking up strongly. We have added 2 million square feet last year and have substantial number of opportunities at advanced stage of closure. We expect to add multiple projects during FY26 and you will see the improving additions on quarterly basis during the year. Referring to slide number nine, let me take a moment to talk about our Launch performance in FY25 despite the regulatory delays and launch deferments, SPL launches three new projects in FY25, one each in Bangalore, Chennai and Kolkata.
Also, we launched three new phases in existing projects, one in Bangalore and two in Chennai. All launches adds up to 2.6 million square feet of the saleable area during FY25. This was lower than our original target, but deferred launches have now been cleared and are going live during Q1FY26. One such project is our maiden project in Pune that has gone live in Q1 already. The launch has been very successful as can be seen in the next slide. Referring to slide number 10 is the Pune launch. We have successfully launched our Pune project under the code name Superstars in exciting market.
We are thrilled to report that the launch generated an incredible response. In first two days of the launch we recorded more than 400 watts and sold 125 units within 48 hours of launch. This response, received especially in a new market for us, has been encouraging and validating our product positioning and market understanding. The momentum is continuing and we expect this project to deliver great success for SCL in pune. Slide number 11 which gives a glimpse of our launch day activity at Pune. Slide number 12, the Bangalore project is also approved and is awaiting RERA. We have begun pre launch activities and targeting to launch in June 2025.
Referring to slide number 13, turning towards delivery performance, we successfully completed 4.28 million square feet during the year covering nine projects. Most notably, all nine projects were delivered well ahead of ERA timelines and in some cases by as much as 6 to 12 months ahead of ERA. This is a strong validation of STL’s robust execution capabilities and reflects our deep focus on operational discipline and customer commitment. I’m referring to slide number 14 on the pricing front. Market remained stable after having done strongly over the last three to four years. Pent up demand has largely been absorbed and prices have reached a level of equilibrium in our view.
At SCL we witnessed an average price increase of around 3% across our portfolio in FY25. Notably, projects nearing completion are already completed for relatively high appreciation. This reinforce our belief in maintaining price discipline while ensuring volumes and absorption dimensionally. Referring to slide number 16 now let me take you through financial performance of the company. Q4 was a standout quarter for us both operationally and financially. It accounted for nearly 44% of our annual revenues reflecting the strong handover momentum on the CETA 4C in March25. Accordingly, Q4 accounted for 44% and 62% are bearing at different levels.
One important point to note is that we handed over nearly 1400 units to customer in Q4 alone and that has contributed to this bumper quarter. Out of this, nearly 37% of the units were handed over in the JV projects and hence the impact of robust handover is partly reflected in our share of profit from JV and the rest is reflected in revenue from operations since both reflects our core operations and profitability. EBITDA after JV share of profit is the appropriate metric that reflect two profitability for the company. The same is reflected in financials from this slide.
Slide number 17 Turning to financial performance for the quarter and the full year as mentioned, Q4 was a standout quarter operationally and financially. We recorded a revenue of 428 crore up by 138% quarter on quarter and 19% year on year. This sharp recovery reflects significant momentum in handover during the quarter. Despite receipt of OCS towards end of the quarter, the company handed over 1,400 units to customer in Q4 alone. This helped us recoup most of the deferred revenues from the previous quarter reflecting healthy revenue recognition momentum. EBITDA and Turing share of earnings from JVs improved from 46 crore to 98 crore 89 crore up by 94% year on year.
Finance cost were lower by 22% at rupees 24 crore and thus PBT jumped from 12 crore rupees to 62 crore rupees in Q4. Net profit is higher by 137% year on year to rupees 48 crore in Q4FY25 on a full year basis. Total operating revenues were nearly flat despite significant lower revenues recognized during first nine months in the span. Q4 revenues helped us in ensuring nearly flat revenues. EBITDA including JV income was at 203 crore nearly flat from last year and reflects EBITDA margin of 21%. EBITDA is higher by 15% year on year at rupees 87.9 crores and fat ends up marginally from rupees 75.4 crore in FY24 to 77.3 crores in FY25.
Overall margins have remained stable 30% at GAAP level, around 21% at EBITDA level and around 8% at PAC level. Margins are the state below what we would have liked to stabilize, but while regaining revenue recognition momentum, we expect to go back to 22.20 to 25% margin at EBITDA level and 8 to 10% at PAC levels in the coming year. In summary, despite a tough operating environment in the first half, we delivered a strong close to the year and looking forward to improving profitability and healthy cash flows in FY26. Slide number 18 the slide summarizes what I have discussed so far on the financial performance.
Moving to slide number 19. Our cash flow performance was strong again this year. We generated 305 crore of cash flows from operations which includes proceeds from line monetization as well. We had net outflow of rupees 32 crore on financing operation mostly related to interest payment. During the year we generated free cash flow of 273 crore in FY25 against rupees in FY24. Against this strong free cash flow generation we invested 143 crore towards new project commitment and thus finished the year with net free cash flow of 130 crore. Leaving us with the cash and cash equivalents of 320 crore at the end of the year.
We have a strong war chest and hence fully equipped to fund our accelerated business development efforts during current year. Moving to slide number 20. Over the last three years SPL has cumulatively generated rupees 545 crores of free cash flow from operations and invested 365 crore towards new project commitment and generated 179 crore of net free cash flow post investment. This clearly reflects the strength of our operating cash generation and disciplined capital allocation. Moving to slide 21. Turning to our borrowings and balance sheet position. The gross borrowings have largely remained flat during the year and net Debt has dropped by 115 crores.
Our net debt is down approximately t o. 326 crore and reduced our debt to equity ratio from 0.35% in FY24 to 0.24 now. Reflecting a strong and more balanced capital structure. The CASA fund remains stable with weighted average cost dropped marginally to 11.3% in FY25 comp compared to 11.6 last year. Overall, our balance sheet remains strong and stable complemented by encouraging cash flows that support our growth initiatives.
I will now request Mr. Gopal to carry the presentation forward on our medium term outlook and guidance for FY26. Over to you, sir.
Gopalakrishnan J — Chief Executive Officer
Thank you. So what we have heard so far is about a trend of a very strong Q4 which to a large extent recouped all the volatility we had during Q2 and Q3 when we faced some volume issues because of approval related delays across the entire sector in the region. Completion certificate or occupancy certificate related prolonged administrative processes that prevented revenue recognition. Most of these are behind us. We overcame a large part of it if not completely in terms of ensuring recouping all those revenues. And thus Q4 was a very strong quarter with Q4 offsetting for the negative impact to a large extent or almost entirely.
The full year results reflect a bit of mutual performance but nearly stable or flat as previous year. We would have liked it to be slightly stronger than what it is today, but we are confident that recouping of lost ground will happen even in FY26. With that summary of what we have heard so far, let me turn to slide 23 which fundamentally talks about the five year trend in our performance. Yes, there are volatilities from time to time, short term as well as annual, but overall we are on a rising path. We believe with the strong operating platform and the execution track record that we have built so far, we are geared for the next leap.
What we are entering 26 with is significant strength and opportunities in front of us in terms of launches, pipeline, execution capability and execution track records and a sufficient time cushion or learning from the previous year’s episodes on approvals and above all a positive sector outlook with that kind of right ingredient I think we entered this year. Fortunately we started with a very good launch in Pune which is our maiden entry which was a bit delayed last year but finally I think it has taken off very nicely as Mr. Pandey pointed out has generated some interesting level of responses from customers in the west and we thank the western India for receiving us well.
But with all this backdrop, all I wanted to share in Slide 25 was to share where we are and how confident are we in a medium term plan or the mission target that we set for ourselves and announced publicly over the last during the last year. As some of you are aware, we had some targets set out as our mission for the medium term rolled out and I think September last year we went public. Just want to crystallize and recap that we are trying to achieve a mission target of about 5000 crores of sales value by FY28.
Revenues of around 3000 crores are between 2,500 3000 crores and an earnings of around 250 to 280 crores all by FY28. I wanted to give you appreciation of before I talk about the FY26 targets, I want to actually give you appreciation of how rightly we are on the path and how confident are we on the delivery. This I believe will help analysts, investors and external stakeholders get an appreciation of what we are thinking in terms of moving forward over the next one to three years. This 36 month mission for us is critical and it is contingent on very significant addition to our project Pipeline which we are working hard to assemble.
Let me start with the right hand side of the chart. The biggest critical factor for us, as I said a minute ago, is assembling or accumulating a nice. Assembling a nice project pipeline. As we have consistently reiterated out of the overall pipeline, excluding ongoing projects, excluding the FSI monetization, we have roughly about 17 million square feet of new projects in the pipeline. If we have to achieve this mission target of 5,000 crore annual sales value by FY28, we are talking about an annual sales of 7.5 million to 8 million square feet of sales volume or between 7 and 8 million of sales volume in FY28, which means cumulatively over the three year period of FY26 to 28 we would have to sell about 20 million, roughly about 18 to 20 million square feet.
To achieve that kind of scale and volume cumulatively over three years we need at least about 25 to 30 million square feet of pipeline required even on a conservative basis. Optimistically, we probably need about 30 odd million square feet of pipeline to achieve 20 million sales. As you can see from the graph below, 30 to 35 million square feet of pipeline as a prudent strategy out of which we have only about 20 million square feet in our hand today. 17 million of new project pipeline and opening inventory of over 3.5 million square feet which represents 15% of unsold volume, unsold share of ongoing projects.
Therefore, we are trying to focus on adding another 15 million square feet to maximum 20 million square feet over the next 12 to 18 months. I have explained this last time also, but I want to just recap that. As to that being the critical part of our project, critical part of our mission towards assembling this 1520 million square feet, we are already accelerated our BD activities. We have over 30 plus projects are under evaluation. 3 million square feet are nearing closure where they have moved out of the due diligence phase and are into documentation phase.
5 to 6 million square feet of new projects aggregating to 5 to 6 million square feet of development potential are at an advanced stage of diligence and completion. On top of this we have another 10 plus million square feet under active evaluation, post term sheet or in the in and around the term sheet stage. They might take about three to four months to materialize. So we have assembled over the last eight months we have accelerated the business development activities both in Bangalore, Chennai and also now we will be accelerating further. In Pune we have assembled some nice 30 projects, about 18 million square feet under various stages of evaluation and consummation.
We are very confident of assembling this 15 to 20 million square feet of new project over and above what we already have in hand over the next 18 months time max. Once we achieve that, we are able to deliver on the sales volume or the sales value that we have set for our mission. For in the interim, existing 17 million square feet of pipeline in hand will support our ongoing activities in FY26 and part of 27 to feed growth for these years. So therefore we are comfortably positioned for the next 12 to 18 months in terms of supplying new projects for maintaining growth momentum.
And we are confident of adding new projects in the interim to support growth momentum beyond the 18 month period. And that’s a critical part of our mission. Once we are on that path, the rest of the metrics we believe will fall in place relatively more comfortable. Why I say that as you know in the real estate sector, majority of the problem is all costs are today, all revenues are down the line. So therefore what we have sold over the last three years, which is the form of ongoing projects in our portfolio, will what determine what revenues we earn over the next three years.
So therefore I would like to draw attention to the table or box on the left. As you are aware, we always talked about our ongoing project pipeline roughly about 20 million square feet. So about 19.2 million square feet is the ongoing project out of which 15.7 million is sold, 3.5 million is not yet sold. That’s the 3.5 million. I said as a sustained inventory we have on top of 17 million in the right hand side box. If you see 20.5 million square feet coming back to the left box. So out of 15.7 million square feet sold, 8 million is already recognized.
Therefore we have a sold unrecognized portfolio of about 7.7 million square feet of ongoing projects which are progressing well and at different stages of completion. We believe most likely ahead of rera, we will be able to deliver these projects over the next 2436 months. And the unsold inventory of 3.5 million square feet in our portfolio can also be sold in less than a year’s time based on our current run rate, which means 11.2 million square feet of area. Ongoing projects will be available for revenue recognition over the next three years and they carry a sales value of roughly about 5000 crores.
As you know, we do both projects in own JDA as well as joint venture and also in development management model. This 5,000 crore is the total value, say sold sales value or potential sales value of this entire 11.2 million square feet. Therefore I want to break that down. Own and JD account for 6.1 million square feet out of this. And they account for a revenue recognition potential of 3,100 crores. And that has to be recognized. That will be available for revenue recognition on completion and handover which we believe will happen over the next 24 to 36 months.
And JV, obviously the 1800 crores of revenue will not come into our top line. But their earnings will come as a share of JV profits and loss. As you know, we recognize the losses as we spend the marketing expenses. Today when these projects come for completion, their net earnings will show in our P and L as a share of JV profits. Which means in 36 months 3000 crore is definitely recognizable in my books. And a profit from this 1800 crores will also get reflected in our EBITDA. So that is what gives us the confidence that three years down the line our annual revenue recognition can be in the 2,500 to 3,000 crore range.
Cumulatively. Therefore they will account for about 3,900 4,000 crore over the years or slightly more than that. And nearly about 70% of that comes from the ongoing project portfolio. And the balance only comes from projects in pipeline in hand. Can you give me a breakup of so that fundamentally is in which we are progressing and we are therefore confident that we will be able to deliver our mission targets of doubling our sales value from where we are today, tripling our revenues from where we were last year I believe and quadrupling our profits in the coming years.
So that’s our mission as you can see from the slide and I hope I clarified you, I gave you some appreciation of how we are going to reach there and how comfortable are we in reaching there. Let me take a stance now. Let me shift gears and try to focus on current year outlook. Slide number 26 talks about what we see as a potential for us to deliver during FY26 around 5.2 to 5.5 million square feet of sales. 3000 to 3300 crores of sales value, roughly about 1800 odd crores of collection, 3300 plus units to be handed over.
All this will come from the completions will come from eight to 10 projects that are scheduled for completion and we’ll be delivering another 4 million square feet next year. While doing all of this, as I said, the critical to our mission is to achieve the pipeline addition. We’re looking to add about 7 to 8 million square feet to the pipeline of existing pipeline of 17 million square feet of new project pipeline, we’ll be adding another 7 to 8 million square feet with a GDB addition. Should hopefully be in the range of 5000 crores or so to be added during the year.
That’s our overall overall targets for current year and I gave you the presentation for three year outlook. The slide 27 and 28 actually breaks down the KPIs that we are planning to deliver in FY26 in various forms between their geographies, between their nature of project and the nature of product. And sure I’ll leave all of it to all of you to appreciate on your own. Slide 29 obviously talks about the pipeline that I just walked you through. Therefore I would not take much of your time to again walk through that to end last slide. I just want to give you again reiterating the fact that there has been a lot of news and we have clarified multiple times in the last six months Promoter Acquisition Promoter Promoter Holdings Getting restructured no change from a listed company’s perspective no material impact on SPL assets Promoter holding will remain unchanged at 28%.
Changes are envisaged only at the holdco level where two promoters were owning. The promoters promoter group company promoter holding Sriram Properties Holdco shareholders are changing their holding among themselves and therefore it is a Holdco level shareholding changes and not a listed company level change. SPL will continue to operate under the brand Sriram Properties perpetually. We expect the royalty payments to stop. We currently use a tagline called a member of the Sriram Group. We intend to discontinue usage of that during this year and therefore entire royalty payment will completely stop as we stop using the member of Sriram Group as well.
But Shriram Property will continue to be used perpetually and no cost will be associated with that from Sriram Property’s perspective. So with this I want to end by saying we’ve had a reasonably strong quarter, a very stable full year outlook. External challenges that we face during the year seems to have been behind us or at least there is greater clarity and visibility on how to handle them going forward. New market entry has been successful. Market environment is conducive for us to continue our growth momentum. We have enough inventory in our hand in terms of existing sustenance inventory of 3.5 million square feet and a new project inventory of over 17 million square feet to support growth momentum over the next 12 to 18 to 24 months.
In the interim, what we are attempting to is to grow our new project pipeline beyond the 17 million square feet more aggressively robust and we are confident of reaching our targeted addition of 15 million square feet by 12 in the next 12 to 18 months. And therefore that will support us in continuing going forward. And in the meantime, sales already made in our ongoing project will have to be focused for execution and a timely manner and that will feed us our revenue recognition capability over the next 36 months, the next three financial years 26, 27 and FY28 and therefore with a growing scale profitability should improve and if not improve at least remain the margins and profitability should remain at least at the targeted level of mid 20s at the EBITDA level and about 8 to 11% at the PBT level.
We therefore think the company is in for a reasonably strong ride over the next couple of years. And quarter to quarter volatile these will continue, seasonality impact will continue. But we believe on a year to year basis we’ll keep making progress and hopefully meet your expectations in the coming years.
With this I rest the presentation and I and Mr. Pandey and rest of my colleagues in this room will join me in addressing all the queries that you may have on this call. Over to you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use ANSIT while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Dhananja Mishra from Sunidi Securities. Please go on.
Dhananjay Mishra
Thanks for the. Am I audible?
operator
Yes sir.
Dhananjay Mishra
Yeah, so thanks for the opportunity and congratulation on very decent operating performance and also providing very encouraging roadmap for next three years.
operator
No sir, there’s some disturbance.
Ravindra Kumar Pandey
You know very, very, very.
Dhananjay Mishra
There may be some dishones from my side. I don’t know so how to go ahead. Yeah, maybe I will, I will, I will rejoin. Yeah. How it is better.
operator
Yes.
Dhananjay Mishra
Yeah. So my question is that as we have very encouraging pipeline in terms of new launches for next for FY26 and then next three years also. And also we have just strong targets. So my question is that which category of home we will target. Like as we have seen in the slide industry wise this 50 to 1 lakh oh one tor categories has seen a drop as percentage of sales like 38% to 34% while the mid Premium segment and premium segment is doing well. So at least for the new launches are we going to go for premium category or we will continue with our this affordable or mid category.
Gopalakrishnan J
So let me, let me approach this question a different way. So if you look at the last three years Mid market and mid premium together right here, both the numbers you have to add together, their share has gone up consistently from calendar. These are all calendar year data because all the IPCs published calendar year, not the fiscal year. Calendar year 21 onwards it has consistently moved up from 34 35% share of mid market to about 64 65% now. Like if you look at here, 74% of calendar 24 sales happened in mid market and mid premium.
So that is a segment to be in. As you know, that is why we try to deemphasize the affordable in the last year, year and a half. We’ll continue with that strategy. We will remain focused on mid market and mid premium for three reasons. Reason one, when an alternative capital providing segment like stock market or others when they tend to be volatile, we always have a problem or we always see the volatility more prominently in the top end of the market which is the luxury and ultra luxury. That’s not the segment where we want to actually focus on for a right reason.
One, because our brand itself is seen as a mid market brand, we would like to first consolidate our trend there before focusing on anything on the top end of the market. Second, that’s the segment where we have always seen as a very strong player. Today we are in the top three top five players in each of our markets. However, if you go into the subdividing these markets, Sriram will be a very strong brand in the mid market segments because we don’t operate in the luxury. Therefore we tend to have much stronger dominance with Basically the entire 4 million 4.5 million volume is going into mid market.
Whereas some of our peers large part of their volumes, annual volumes are going into luxuriance, ultra luxuria as well. So we have a very strong market share in the mid market segment. Therefore we want to stay there as focused. Third one, because it is end use driven, mostly investment demand is very low in mid segments because it is end use driven. It is driven more by nature of economic growth and economic operation within the salary in purchasing power of the common man than the investment demand. And therefore there tends to be a low volatility in this segment.
Therefore I think it makes sense for us for Shriram at least to continue in mid market and mid premium for a few more years. So therefore I don’t see me moving away from mid market, mid premium over the next three years. Is it permanent? As of now I think this will be our dominant share of our portfolio. We may have one project here and there adding in CBD which has a very high ticket size and all that. But so therefore non mid market mid segment in the overall portfolio will not be a significant percentage. Maybe 5, 10%, 1, 2 project here and there may have some luxury beyond that we don’t want to have. We want to stay focused on this one.
Dhananjay Mishra
So when we face the market, how we see the sales happening across this category, I mean which, which category we see faster sales in our project.
Gopalakrishnan J
It’s always mid market. Mid market will have the highest velocity. As I told you, 74% of India’s demand consumption happens in mid market. So luxury is a low volume, high value activity like some of our listed players in Bombay do. We don’t want to be there and therefore I don’t have a full visibility on what the velocity currently will be in Bangalore. And Bangalore we still have a view. Bangalore in a market is about 60 to 70,000 homes a year. Pune I was told about 80,000 homes a year. Chennai is roughly about 25 30,000 homes a year.
Nearly 70% of these homes are in mid market. So that’s the kind of velocity in a year we are looking for. So we are very comfortable with the consumer behavior there and demand pattern there. So I think that’s where we will launch our new projects.
Dhananjay Mishra
And this couple of project got deferred in Q1 like Pune and Bangalore. So had it happened in Q4 what would have been additional sales booking from these project? Number one and secondly also you said that some OC received on at the fag end of the March. So what would have been the additional revenue recognition happened if it had not happened? You can quantify that?
Gopalakrishnan J
Yeah. So if both launches had happened, if both launches have happened, I assume we would have reported another 400,000 square feet more. 0.4 million at least. Because the first weekend of our first two weekends of our launch in Pune we have already done about 125, 130 plus bookings actually plus 48 hours alone we got about 120 bookings. So that 120 booking translates to about 125,000 square feet of saleable area. So I think overall we have definitely lost about 4 lakh square feet in Q4 from a last year potential because we moved, these lunches have been moving, Getting delayed from Q2 onwards, Q2 to Q3 and then Q4 and then finally came through only towards the end of the month, end of March.
So I think that 4 lakh is a net loss to us. But it’s a deferred to current subsequent years. From a revenue perspective Mr. Pandey is showing me a pending realization of about 200 is the pending recognition between at least two key projects that only partly got recouped from the revenue recognition perspective. So we still have another. Out of 500 crore that got deferred. We realized about 230 to 50 crores. Another 250. 280 crores is to be further recognized in these projects. And the work is going on. It is not just the oc. We also had unfortunately a lot of changes in Karnataka at least where Pristine state is located which is a plotted development where I think out of 280 crores of pending recognition 140 crore belongs to Pristine in Bangalore where introduction of E.
Katha in October November in Karnataka government led to a huge amount of disruption to the overall registration process which you would have read from other developers press release as well. So in Karnataka now you cannot register a home without Ikata and Ikatha systems are not working smoothly. Plus the new upgrade that they did in registration software went into a complete mess. It’s called Cauvery 2.0. And so the registration got pushed up. In fact we have several signed agreements from the customers on Pristine estate in Bangalore which is pending with the registrar for enabling the registration.
So there are a lot of issues. But I don’t want to keep talking about only the problems that we face. We overcome most of them. So let’s move on. So we have about 280 crores of projects to be revenue recognized Both in Prar Park 63 in Chennai, 140 crores and pristine estate about roughly 140 crore in Bangalore.
Dhananjay Mishra
Okay. And lastly on this this year launch pipeline so we have Pune, Bangalore which. Got. Launched and Bangalore we are at pre launch stage. So and we are targeting a GDP value of 4,000 crore from new launches and 2,000 crore from from the new project for which another projects we are going to launch in this financial year. If you can give some timeline for that.
Ravindra Kumar Pandey
We will have about seven to eight launches during the year in addition including the Pune and Bangalore. And if I can summarize by the city, if you’re looking for as you can see from the chart here, it’s already there in the chart here. But if you want a specific number. I can give you. Because if you look at the 810 launches in slide number 27. We have roughly about half of them are in Bangalore. About 20% in Chennai. One project in Chennai and Kolkata is in one project. And Pune would be. Our Pune is already done. So if you want I can give you the. Srikant can give you the data as required. Can you?
Dhananjay Mishra
No, no, sir. Not required. I will go through the slide. So I hope this year we will not.
Gopalakrishnan J
You can. You can let us know. Srikanth, my. My colleague Srikanth, whom you must be familiar with. He’ll be able to share with you offline project project locations and the size of the project.
Dhananjay Mishra
It’s not there in ppt You are saying
Gopalakrishnan J
PPT has a graph which shows the percentage.
Dhananjay Mishra
No, no. I wanted specifically the name of the projects you are going to launch. Anyway, I will. I will take it offline and.
Gopalakrishnan J
Yeah, then you can go ahead and check with them.
Dhananjay Mishra
I hope this year we will not face any approval delay. And whatever we are targeting for this year in terms of new launches we will achieve. Thank you. All the best.
Gopalakrishnan J
Thank you.
operator
Thank you. Participants who wish to ask a question may press star and one at this time. The next question is from the line of Shreya Gandhi from CR Kothari Stockbroking. Please proceed.
Vidisha
Hello sir. My name is Vidisha. So I’m looking new to this company. So I just want to understand. So out of the 3,000 to 3,300 sales value that you mentioned for FY26. How much of this flows in to the P and L as your revenue?
Gopalakrishnan J
Madam, as you know, the sales that we do today under the accounting standard as 115 we will not be able to recognize unless the apartment is completely constructed and occupancy certificate is received and handed over to the customer. Therefore, the revenue that will come to our P and L would be from the volumes that have been sold over the last couple of years. And those plots. Those apartments or plots are getting handed over to customer. Only then we will be able to recognize it is in this context the slide that I talked about. Slide number 25 is relevant.
Out of the 12 million 11.2 million square feet that we are not. We are supposed to. We have ongoing projects where they’re supposed to be pending revenue recognition. We expect about three will be handed over. Three and a half million square feet will be handed over to customers during the year. Roughly about 3,300 to 3,300 to 3,500 homes. Those revenues will come. We Believe our revenue growth from where we are today should be reasonably strong in the current year. And obviously we are a shade below 1000 crore as we speak. I believe anywhere between 25 and 35% growth in revenue is possible from a top line perspective based on the timeline of completing these projects and our expectations of how many ocs we’ll get and how many Andovers we’ll do.
So that’s how the dynamics of this industry works. You use, you sell today, wait for three years or two and a half years to complete the project and hand over to customers and then you recognize revenue.
Vidisha
All right, Got it sir. And secondly, this 3100, our own share that you mentioned. So this includes the 1400 deferred revenue.
Gopalakrishnan J
Yeah, this is the revenue as of the 31st of March. The 3100 crores of our own project, 6 million square feet is as of the 31st of March with all whatever we have achieved so far, that’s all is removed, deferred everything.
Vidisha
All right. And also for FY25 other income makes up roughly 150cr. So can I just know the breakup of that other income, what does it consist of?
Gopalakrishnan J
No, no. As I think we’re consistently clarified the other income. If you look at the presentation, there are two components to it, right? There is other operating income which accounting standards requires us to call it other income. And that’s why you must be seeing in the auditor’s report. If you look at slide 17, our true other income for the full year is about 24.2 crores which is predominantly comprising of interest income, gain on mutual funds and so on and so forth. That’s the true other income which is not related to real estate operations. Whereas the other operating revenues for us historically and even in future will continue to include any real estate development related activities which are not part of income from operations will be called other operating revenues for this year.
Our other operating revenues include impact of ask, that is a joint venture partners exit from Sriram Prestige Estate a plotted development in Bangalore. Fair value gains of project joint ventures where the project pricing has gone up, costs have come down, our profitability has improved the underlying value of the joint venture which we recognize in our books the fair value of those instruments have gone up and therefore those will be there. And if you are doing any monetization of development rights which is sale of tdr, sale of fsi, this keeps happening in a real estate development company.
We keep buying and selling TDRs because we buy in someplace we may don’t need it. So we sell it back whereas we procure in another location where the project needs cdr, fsi, additional fsi. So those monetization of any development rights gain or loss will also be part of other operating revenues. So when you consider our total top line or EBITDA, I strongly urge you to look at slide 17 which talks about how income from operation and other operating revenues minus cost of revenue, employee cost and other expenses what our EBITDA would be given that we also operate as a joint venture in projects which are completed and those income come in our books as we complete and handover share of JV loss and profit which we traditionally book loss when the marketing only marketing expenses are there when the project consummate when the project is completed and handed over only then they become profit, their income is recognized and therefore profit is recognized and that is also part of our operating income and therefore we consider EBITDA including other operating income and also the share of our operations in the joint venture format.
So all three are to be taken into account when you look at our overall profitability. So I request your attention to slide 17 and happy to have a more detailed discussion if you require outside this call.
Vidisha
That answers my question. Sir, just one last question. Any update on the West Bengal dispute?
Gopalakrishnan J
As of now there is none. It is progressing, progressing at a snail’s pace, recently gained momentum but I’ve as I said in the last earnings call I would like to not speculate on the timeline one more time because I’ve done that once and we have not been able to reach the timeline because it’s government and they are taking their own speed timeline. Things have regained momentum after a period of 34 months of lull in end of last quarter. Q4 has been a good traction on the Bengal front. I’ll come back to you once I have an update on it.
I would like to stay away from putting a new timeline to it though hopefully it should happen during this year but burnt my finger once earlier by committing on some timeline of FY25 which given the governmental influence or governmental impact there I have not been able to commit and I’m not able to commit a new timeline to it. But I think all I can say is it has moved further from where we were in Q3 and Q4. Moving well but I assume conservation should happen soon. But we’ll have an update as soon as we have much better visibility on it.
Vidisha
Thank you so much for answering my sir, it was appreciation. All the best to you sir.
operator
Thank you. The next question is from the line of Nitin Jain from Fairview. Please proceed.
Nitin Jain
Yeah, thank you for the opportunity and congratulations on the board members. I have just one question, so if. You can elaborate even more on what kind of OC related challenges you were facing and the reasons behind them so you know we can get a good judgment as to whether you will face them going ahead or not. Thank you.
Gopalakrishnan J
On an earnings call like this, I would like to simply restrict my view to say it’s a prolonged administrative process that we went through. Not just us, the entire fraternity of real estate developers in Karnataka as well. As in Tamil Nadu. It will be appropriate to discuss this offline one of these days. I would welcome a call separately because it’s a prolonged administrative process, but I think the developers in the state have found a workable proposed solution for this. So we therefore think overall it should be more smooth going forward because there seems to be an alignment between. The. Real estate developers forum and the regulators of the state authorities. More particularly what we faced in Karnataka last quarter last there’s one project, one of our project went through unusual problem and that I can explain more in detail because this is in a public domain general problem is something that administrative process can discuss. Outside Pristine Estate is a plotted development that we had in Bangalore which was taken over from one of the lender. It’s a stressed asset acquired by us from iifl who was a lender to the original developer and original developer has been working on it for many years and we took over and we sold it in about 18 months.
Development authorities said that they had approved this project long ago to the developer and therefore we should pay additional consideration to the government for delayed development which we challenged them. And then finally we landed up with court challenging government of Karnataka, the development authority, the local development authority. We secured the judgment in our favor in Q3. Therefore we were confident of recognizing revenue because there’s a high court order authorizing or request instructing the authorities to issue that completion certificate to Sriram Properties without any additional payment. But since it involved additional payment being overruled by the court, government took its own time to drag this.
Finally we got this, we went back to the court asking for contempt of court. And then finally we got the release order around end of March. So that was a one off case. But other than that, generally the industry in South India has been facing both Kannad, I don’t know about Hyderabad, Bangalore and Chennai have been facing some delays in administrative processes on completion certificate, some rediscovering of themselves in the administrative system, but I believe that is behind us now. So there is a workable visible path ahead. Once we have a path clear, then we know how to navigate that.
The path was not clear both on the approval front and the plan approval front as well as on the completion certificate front. There was some hazy haze in the, in the path. Now I think that issue is behind us. I hope that clarifies. Yeah, that is quite helpful, sir. Thank you for the clarification. Just one follow up to this. Any reason, what, what reason would you ascribe for the delay in Pune launch? I think all governments are same. That’s all I can say with a little bit of smile. I can say governments are same, politicians are same everywhere.
Whether it is Karnataka, Maharashtra, but, but, but give you little more granular, little more visibility. So Pune went through a bit of a discovery there when, when we filed the plan, government went into election mode. Election happened. Whatever the delay in formation of the new regulatory body subsequent to the government formation, then people appointed, then it took some more time. And by the time they reviewed our plan and what should have taken much faster reviewed the plan and gave the feedback was much, much, much later. Finally we got the whole thing through by almost like last week of March when we got the final sign off when the Pune municipal authorities were put back in place.
Pune rera. The RERA authorities were reconstructed. Whatever RERA framework got reset. All these people came back into their job. And as you know, this is very common. I don’t want to go more in detail. It’s very common in a, in a situation where the government changed from one regime to other regime. Because the RERA is nothing but appointment of new ruling party. Appoint their own people. So that takes time and they come and they settle down for some time. And then only things start moving. Bureaucrats can do only to some extent help in terms of processing papers and reviewing the paper.
So anyway, be that what it may, I think unfortunate that we lost, I must admit at least about five to six months of delay. At least from our perspective. But behind us, hopefully, unless there’s a new change in another government, we don’t see, we don’t expect to face this in the near future in Pune at least. Right.
Nitin Jain
Thank you sir. That’s extremely helpful. Congratulations once again and good luck. Thank you.
operator
Thank you. Before we take the next question, we would like to remind participants that you may press star and one to ask a question. The next question is from the line of Raj Mehta from Raj Mehta Associates. Please proceed.
Raj Mehta
Thank you for giving the opportunity and congratulations for a good set of numbers. So I have few questions. First of all sir, we are increasing our share in mid and premium segment and we have already increased in previous few years and the affordable segment is right now going through a very tough phase and they are. It is. I think the sector as a whole in affordable segment is at a very difficult phase right now. And the premium or a mid market segment was doing well in last two to three years. So if we are taking the opportunity and buying new projects in made and premium segments.
So will that affect the pricing after two to three years since that sector is already doing much better in last two to three years and the price appreciation on the capital on the. On the land or on the plot which we are going to buy in future, will that affect the margins? Not now. Maybe after two to three years. How do you see the trend going ahead?
Gopalakrishnan J
No, I don’t see. I don’t see a margin pressure. I’ll tell you why the industry always product pricing is based on raw material pricing. Okay. And product price have moved up so therefore some part of land parcel value also would have gone up. So our evaluation is very simple. Right? Whatever the micro market can absorb the selling price for a given velocity. That is our paying capacity for land. And therefore we at Shira Material we don’t go overboard and buy land at exorbitant prices and then suffer on selling price or suffer inability to increase selling price.
But from a mid market perspective we are looking at are we going to suffer selling price and margin because we are focusing on mid market? No. If you look at our own project pricing in the past pre Covid my average basket portfolio pricing of our mid market segment was less than 5,000 rupees. Today I’m selling at 6,600, 6,700 rupees. So the pricing is moving up. Well, will it continue to move up 10, 15% every year? No, I think prices were more of a pent up demand and a catch up which was happening earlier. Going forward we think about 5%, 6%, 7% is a fair expectation of price movement that we can expect and that should more than compensate for inflationary pressure on raw material.
Because construction cost is typically half of selling price. Typically. And therefore we should be able to that 5, 6, 7, 8%, 5 to 8% price hike would mean about 10 to 15% of escalation in raw material which can compensate. So therefore we don’t see a price driven margin enhancement that is point number one. We also don’t see a price driven margin pressure from a raw material side I don’t think it can have a pressure. Because as long as you’re not an aggressive mindless buyer of raw material or land, I don’t think it will really hurt you in the margin.
Therefore we think margin should be stable. Can improve with the operating economics or the scale of operating scale. But is unlikely that we will see a big price driven margin enhancement at least over the next one to three years.
Raj Mehta
Okay. And for affordable segment.
Gopalakrishnan J
Affordable has become a little skewed. One of the reason why we moved away for the last one and a half two years we have been moving away affordable. There is a huge demand. There is very little supply nowadays happening because cost of constructions have moved up to that extent commensurate the prices are moving up. Therefore many people have de emphasized affordable. So this is becoming like another economically weaker section is another segment within affordable which was a huge demand. Bottom of the pyramid. Nobody was supplying homes there. So the affordable will eventually become something like that. Where theoretically 45, 50 million rupees.
50 lakh rupees as the threshold set under PMBOI. I don’t know how many people are interested in supplying projects at that price point and still make money. We are at least moving away from it. We would like to focus on mid market and mid premium which we believe offers volume scope as well as price scope commensurate with inflation.
Raj Mehta
Okay. And sir, my next question is regarding the upcoming projects which we are under discussion which you have mentioned in your presentation. So is there any possibility where we are we are taking a higher project by sales value and not through the volume base. Our increasing share. Our. We are increasing our volume share and not towards the. Maybe not launching more projects but launching few projects and increasing the sales value. Are we focusing more on those categories or will be diversifying and have more projects in our pipeline and the lesser volume per project. How are we going to focus going ahead?
Gopalakrishnan J
Don’t think I understood your question. Sorry, if you can repeat.
Raj Mehta
I was trying.
Gopalakrishnan J
No, I told you price. Sorry. If my colleagues are explaining to me saying. Are you saying will we focus on high value projects and less volume? Is that what you are saying?
Raj Mehta
Yeah. Because if you are shifting our focus was mid and upper mid segment. So will our category of the deals which we will do in coming future which will be more towards more. More towards lesser volume and more price.
Gopalakrishnan J
I think. I think there is a disconnect in. Our conversation right now. Because between mid and mid premium there’s no big huge price delta Mid market on an average trades between 7,000 in Bangalore and Chennai and Pune at least it trades around 6,000 to 8,000 rupees per square feet. As a mid market product. 8 to. 10, 8 to 11,000 max would be a mid premium. So it actually depends on the ticket size. If you are about 1.25, 1.3 crores for a two bedroom apartment, that’s a mid market product, 1.5 to 2 crore will be mid premium. So we are not talking about a huge delta in selling price because of change in focus. Yes, it will improve from where we were earlier. But it is not like Mumbai. 40,000 rupees a square feet. So if you are asking will we start selling in 40,000 30,000 rupees market and therefore sell less volume may not be the possible strategy.
In Bangalore, Chennai and Pune at least it may be possible. If you focus on Mumbai where the suburban markets also trade at 30,000 rupees may not be possible in. Not in the near future in Bangalore or Pune or Chennai. Bangalore Other than CBD nobody trades at 30,000.
Raj Mehta
Okay. And my last question.
Gopalakrishnan J
Yeah, sorry.
Raj Mehta
Yeah, yeah. Thank you. And my last question was related to the debt to equity. What levels we would be more comfortable and going forward since we have too many projects under evaluation and we are going aggressive on building the pipeline. How are you going to fund those? Can you just give a glimpse of what we would.
Gopalakrishnan J
We would be very comfortable. We would not be comfortable beyond 0.5 is to 1. Maybe for a short term if it moves up it’s fine. But not like some of our peers of 2x. And I hear some of our peers have unlisted peers have six is to one. So all that is not serum DNA. Will I go to one is to one? Not very unlikely. In the near future will I remain at 0.24? I don’t think so. So it will be somewhere. 0.5 is a safe equilibrium number that I will have. We may temporarily can move up because I’ll tell you where I’m coming from to lock this 15 million square feet that we are talking about.
We are talking about a land commitments. Assuming we buy all of these lands it would cost you between 1500 to 1000 crores. If we do majority on JDA, we don’t need to bring that kind of money. The capital commitment required to secure this will be somewhere around 600 to 700 crores of capital to acquire all of them with the JDA model or with some financial investors like Ask platform or Motilal platform. All that we have is we can do all of this out of the 500, 600 crores of capital required from the Sriram properties as its contribution.
We see about 350 crores of cash coming from our own operations over the next 24, 30 months from existing projects as they get completed. We should get about 350, 360 crores of capital over the next two, two and a half years. Therefore there may be a temporary, like a bridge, temporary borrowing till the cash flows come. We may borrow something and buy, secure these land parcels. And then as and when the project cash flows come, we will repay. As you have seen over the last. We have grown up, we have increased our pipeline but still our debt has not gone up.
Gross debt or net debt. So that’s the managing process we need to have. So I think it is safe to assume we will not be on a sustainable basis. Will not be beyond 0.5 is to 1. And we would like to, we would like to maintain within 0.5 is to temporarily. It can go up but I think we’ll be very nervous if it goes beyond, if it goes anywhere close to one is to one. We’ll be very nervous as a management.
Raj Mehta
Okay. And sorry, last question was related to what I think you have mentioned in your financial highlights about the unwinding impact of. About the royalty which we are going, which we are paying previous year which will be. We won’t be next year onwards. So what would be that amount for a full year basis which we will save.
Gopalakrishnan J
Roughly about 15 to 20 crores.
Raj Mehta
Okay.
Gopalakrishnan J
Per quarter is a royalty charge that we provide. And as I answered in the previous question to another colleague on this call, I think we are waiting for resolution of that And I think we believe it is aligned between us and government of West Bengal and how to resolve. We just need to complete the legal process going ongoing at the Kolkata High Court.
Nitin Jain
Okay. Yeah. Thank you.
Gopalakrishnan J
Thank you for exhaustive questions.
operator
Thank you. The next question is from the line of Hitentra Gupta from Systematics Chairs. Please proceed.
Hitentra Gupta
Okay. Thank you. Sir. Good evening. Congratulations for the good set of the numbers which you have posted especially for the fourth quarter. I refer directly to your slide number 25 wherein you have just talked about 20.5 million square feet which says pipeline available, ongoing, unsold plus pipeline Life which is 3.5 plus 17. How do we match this number to the left hand side flowchart which you have shown. Can we have some clarity on this?
Gopalakrishnan J
So 3.5 plus 17, you see the number on the right hand side?
Hitentra Gupta
Yeah, that I can see. So I’m trying to find the 17 number 17.
Gopalakrishnan J
17 will not be there. 17 will be in slide number 29.
Hitentra Gupta
Slide number 29. Okay.
Gopalakrishnan J
So this 2019.2 million is a launched ongoing project. That’s why you don’t unsold is only 3.5. You see a 3.5 here. Yeah, you’re not going to see 17 because 17 is still not launched. That you can see in the upcoming projects called called as upcoming projects in slide 29.
Hitentra Gupta
Upcoming project slide number 29. Okay. Upcoming 17 million 9.6, 4.3 and there’s a graph which is over there. Okay, okay okay, got it. And my second question is with regarding to your EBITDA especially the the jv the share of profit from or loss from the jv. Can we have the the top line of this particular thing because just want to understand what kind of a margin we are able to make in the jv.
Gopalakrishnan J
Yeah, I. We may have to come back to you but I’m sure it is.
Hitentra Gupta
Can it be shared on a regular basis on the PPD itself? It would be quite helpful for I believe the whole analyst fraternity.
Gopalakrishnan J
No, we’ll explore that but I’m not so sure JV revenue should be shared. But. But we’ll explore but offline I’m sure you can. You can check but more or less.
Hitentra Gupta
What kind of a margin we have made over here. If just. No, if not the figure but not the revenue figure but the margin would be how much over here .
Gopalakrishnan J
Gross margin Should be somewhere around 20 plus it’s a slightly low margin business. At least the project. The faces that you recognize now I’ll give you some granular color on it. We’ve recognized in joint venture two joint ventures have come into first phases of two projects have come into revenue recognition mode. Sriram 107 Southeast is what was originally set up as an affordable housing or a low cost, low cost, low margin business because it was in a new market called Anekal which is just after Electronic City before end of Karnataka border targeted people from Bozur and down beyond Electronic City crowd.
The selling price when we launched in 2018 for this project was about 4,000 rupees. Therefore it the phase one was sold at around 4,000 3,800 4,000 rupees. Today we are selling at about 6,500 for phase three.
Hitentra Gupta
Okay.
Gopalakrishnan J
Right. So therefore the first phase which you are recognizing now may be less profitable than compared to SEC phase 2 and 3 which will come up for revenue recognition in FY26 and 27. Similarly in WIT which is Sriram WIT called Whitefield Youth Town. The second joint venture we have 50:50 joint venture with the landowner. First phase came up for revenue recognition. That would be a much attractive 2019 launch. Pre Covid. Small apartment, 600 square feet for. I mean pretty small even by Bombay standard intent was 50 lakh rupees for a two bedroom house. For a software guys.
For him it is a 30 minute drive from his office. That was the intent of target group. So the phase one was launched at 5,500 rupees. Therefore they’ll give you a margin of somewhere around 20, 25%, not more than that. Whereas currently it is selling at about 6,800 6,900 rupees. So the second phase of that would be more profitable. Project as a whole will still deliver 25%. The current phase will not deliver that kind of margin. So therefore my colleagues will call you and give you the data.
Hitentra Gupta
Yeah, that would be great. Okay. And coming to the your entry into the Pune and therefore for the Maharashtra market. What’s other plan other than Pune and and within Pune also. Do you have more plans over there? Can you have some color on that? This year and next year.
Gopalakrishnan J
One step at a stage is what we are thinking about Pune. New market, new regulators, new administrative, political environment. So we need to be careful about how we put our foot. I think the first move, as one of your colleagues just asked on the call, we’ve taken a long time to learn these tricks of the trade in Maharashtra, right? We’ve taken about seven, eight months that systematics. I’m sure we have discussed this almost 2/4 ago or 3/4 ago. So that is the kind of learning curve we have gone through. So we are more careful now we have in that given the learning curve.
We had actually suspended signing up new term sheets and new projects in Pune for the last almost three, five, six months. Because we didn’t want to go on signing up and making capital commitments without knowing how to navigate this whole administrative approval system. Now that we have better visibility and we have understood how the system works, we have now resumed re accelerated our business development activities. We have a fairly large evolution portfolio which we have consciously scaled down. About 18, 17 or 18 are available. I would imagine over the next 12 months we would sign up at least minimum two, maximum three projects into a development agreement stage.
Whether it is JDA or Diem project. Because Pune is a very large capital consuming capital commitment market. Every, even a giant development in Pune will require hundreds of crores because you have to buy tdr. Whereas in Bangalore, a joint development. I don’t need more than 20 crores. You see the big difference in capital dynamics and therefore I would imagine. And. But having said that we want to be an aggressive meaningful player in Pune. So unless we have at least three to four projects up and running simultaneously we can’t call ourselves as a serious player. We will reach that point in the next 12 to 18 months.
We will worry about rest of Maharashtra later. There is only one more market if at all we want to think about. Maharashtra is only Bombay which is a much larger market which I would like to. We would like to think carefully before entering because our southern peers are already there. Some of them have good experience, some of them have not so good experience. I think we have to learn from there. And basically one step at a stage, let’s expand to Pune, stabilize ourselves with a couple of projects and then we will go into further. Think about expanding further.
Hitentra Gupta
Okay. Okay. Thanks. Thanks a lot for your elaborate answers. I will join the queue. Thank you.
operator
Thank you. Due to time constraint that was the last question. I would now like to hand the conference over to the management for the closing comments. Thank you. And over to you sir.
Gopalakrishnan J
Yeah. Thanks everyone for being online in late evening and giving us an opportunity to present our Our perspective on Q4 and full year performance as well as our outlook for 26 and next three years. And also thanks for the insightful questions many of you asked. If you have any more questions we are happy to always available to respond to them as much as we can and looking forward to continued interaction and looking forward to have your continued support even in the future. Thank you and have a great evening. Thank you. Thank you sga. Thank you. Thank you all. Thanks Brinkal.
operator
Thank you. Sriram Properties Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.