Ladies and gentlemen, good morning and welcome to the Aditya Birla Real Estate Ltd Q1 FY26 Post Results Conference Call hosted by Antique Stock Broking Ltd. 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 touch-tone telephone. Please note that this conference is being recorded. I will now hand the conference over to Mr. Debbarma from Antique Stock Broking Ltd for opening remarks. Thank you, and over to you.
Thank you, Ryan. Good morning everyone and welcome to the Q1 FY26 Earnings Call of Aditya Birla Real Estate hosted by Antique Stock Broking. Please note certain statements made during this call may be forward-looking in nature and are subject to risks and uncertainties.
Actual results may vary materially. Today we have with us the management of the company represented by Mr. R. K. Dalmia, Managing Director, Aditya Birla Real Estate Ltd, Mr. K. T. Jithendran, Managing Director and CEO, Birla Estates, Mr. Snehal Shah, CFO, Aditya Birla Real Estate Ltd, and Mr. Keyur Shah, CFO, Birla Estates. Without further ado, let me hand over the call to Mr. Dalmia. Over to you, sir.
Thank you. Good morning everyone and welcome to the earnings conference call for the first quarter of the financial year 2026. As many of you know, at Aditya Birla Real Estate we are in the midst of strategic transformation shaping the company into one of India's most focused and future-ready real estate platforms. Financial 2025 was a landmark year in this journey and we have entered financial 2026 with the same level of discipline and long-term ambitions.
During the first quarter of financial year 2026, our primary focus was on execution, consolidation, and preparing for a robust launch pipeline in the quarters ahead. We begin this year with the backdrop of a resilient Indian economy. With the strong macroeconomic fundamentals and stable GDP growth projection, the long-term structural demand for quality real estate remains unequivocally strong. It is within this promising context that we are executing our refined strategy with a focus towards our real estate sector and therefore we are in the process of divesting our sales. India's residential real estate sector is in the phase of steady growth driven by execution, excellence, product differentiation, and brand trust. The market has seen a good traction with absorption of exceeding new supply by 8.3%. In financial 2025, the luxury segment continued to outperform fueled by discerning domestic audience and growing interest from NRIs.
Mumbai Metropolitan Region, Pune, Bengaluru, and NCR continue to remain a key market contributing to 50% of units sold in financial year 2025. As this was a quarter without any new project launches for the company, our efforts were concentrated on driving sales momentum in our existing portfolio and ensuring strong construction progress across all sites. Consequently, our booking value for the quarter stood at INR 423 crores, which grew by 51% year on year. The area sold for the quarter grew by 327% year- on- year to 0.3 million sq ft. Our collection for the quarter grew by 12% year- on- year at INR 545 crores. This performance reflects the sustained interest in our marquee project and underlying strength of Birla Estates brand even in a period of planned consolidation ahead of our next growth phase.
One of the most notable developments during the quarter for our company was that Birla Estates concluded a $50 million, or around INR 420 crores, investment from International Finance Corporation, a member of World Bank Group. The investment has been made in Manjri project in Pune having approximately 3.13 million sq ft in the urban area and in the Thane project with approximately 6.43 million in saleable area. This partnership shows a strong vote of confidence from one of the largest and highly respected global investors. The partnership also boosts our ESG and supports sustainable inclusion summary accordingly. Additionally, on ESG front we achieved the Bureau of Energy Efficiency Certification for both Birla Aurora and Birla Centurion, recognizing our efforts to create energy efficient, environmentally concrete development and set a new benchmark in sustainable real estate.
On the marketing front, we increased our investment in strengthening our brand and forging a deeper connection with our customers. We raised our IPL association by becoming the principal sponsor of the Royal Challengers Bengaluru, which significantly boosted brand visibility and making Birla Estates one of the most important real estate brands during the season. Looking ahead, our growth trajectory is clear and well -defined. Our total portfolio now has a gross government value potential of around INR 70,000 crore, providing us multi-year growth visibility for the remainder of the financial condition. We have a robust launch pipeline with an estimated gross development value of over INR 30,900 crore. This includes much-anticipated projects such as next phases of our Birla Niara project, new phases at Birla Navya in Gurugram, and our new developments in high-growth corridors like Thane and Boisar in MMR.
With that, we can now open the floor for the question and answer session. Thank you.
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 touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. 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. The first question comes from the line of Karan Khanna from Ambit Capital. Please go ahead.
Thanks for the opportunity and good morning to the entire team. My first question to you, K. T. If you can talk a bit about the luxury housing market in Mumbai, particularly because we've seen some signs of slowdown in the MMR luxury market.
If you can also talk a bit about the Niara project where we've seen INR 360 crore of sales in the fourth quarter and this quarter that's down to about INR 60 crore. How are you thinking about sales velocity for the balance INR 2,300 crore of inventory that you have in phase I and II? More importantly, how should one think about the launch of Niara phase III later this year?
Yeah. Hi, good morning. Yeah, so Birla luxury market continues to be very strong. We are very bullish on this market. It's true that there have been more launches, more projects have got launched here. I think that will be too premature to judge the demand in the market unless there is a clear launch which has happened.
As far as we are concerned, we had a strong quarter last year and this quarter we had a few cancellations. Otherwise, I think still there was about five or six units which were sold over the quarter. Actually, quarter one is a little early for the momentum looking up. We are very confident the number of walk-ins, the number of demands, the number of strong leads that we still have, the price which is holding, the demand for the product, etc. I think we are very confident that we will have a strong response over the year and we are very excited and looking forward to the new phase launch which will most probably happen in the last, the quarter three or early quarter four.
Sure, this is helpful. K. T.
Jithendran, my second question, if we look at, you know, the launch timeline for FY 2026 and beyond, that's there in slide number 17 of the investor presentation for the nine launches that are slated for later this year. Can you give some timelines in terms of what could be the launch distribution across the three quarters?
Yes. So most of the launches are, and in the commercial, all launches are kind of pitched from Q3 and Q4. Since we had a very strong launch quarter in Q4, we will be planning all these launches as per our planned calendar. It was stated to be in Q3, Q4. The good news is that for Manjri, we have already got the RERA. Our launch preparations have started. Unless you're completely ready in terms of going into the market, we'll take our time. We have enough time.
Either it will be in the last quarter of Q2, but most probably in the first phase of Q3. All the others, I can assure you, we are going well as per the track and we are pretty confident of launching all this in various months of Q3 and Q4.
Thirdly, in slide 27 of the investor presentation where you've spoken about the estimated surplus potential from the loan for projects which stands at about INR 7,300 crores across. You previously mentioned that the surplus potential from launch and pipeline projects would be closer to 22,000 crores. Two questions here. One, do you still expect to realize about 15,000 crores in surplus from the pipeline projects? Two, what would be total surplus cash flow that would accrue to Birla Estates?
Yeah, I'll ask.
Thanks.
Basically, we have estimated the collections from all inventory which is sold, that is over 11,000 crores, which is the sold inventory. From the unsold inventory, we will collect around 6,000 crores. That is how we have estimated the collections. After reducing all the costs pertaining to the completion of the entire project, we estimate 7,300 crores. That's how we have considered it.
This is Birla's share in the. Lastly, in terms of BD, you know, what's the progress here? Are you on track to achieve the 15,000 crores BD target that you mentioned earlier?
Yeah. So BD, we have guided. I mean, last year as you know we did about 25,000 crores. We have a very strong pipeline in all our regions, our targeted regions.
This whole process takes its own time to make sure that we do the right deals and the right returns and the right market, right looks, pricing. Very confident of doing somewhere around that. I can't assure you it will be the 15,000 or 10,000 or 20,000, but that's what we're targeting and we are well on course of achieving that.
Sure. I'll come back in the queue for any follow-ups.
Thank you. We take the next question from the line of Akash Gupta from Lomora. Please go ahead.
Hi sir. Am I audible?
Yeah. How are you?
Yeah, I'm great sir. Thank you for the opportunity. Sir, my first question is with respect to the Sector 150 Noida project and IFP JDA project. What is the status of those two projects as well as the Thane approvals for these three projects?
Yeah.
As far as Noida 150 is concerned, we haven't made much and I'm not very hopeful. We're not really counting on that. What was your second question?
The status of the IFP JDA project and as well as the Thane approvals with respect to the Thane project.
IFP is also going slow. Unfortunately, we are hoping that there will be some progress. It's really not happened, but pretty hopeful that this will come around. We are not taking it in our target for launch this year. Thane, we are gearing up for the launch,
so even Thane we should expect it in the third quarter.
Yeah, Q3.
Okay. My second question, sir, if you can give us some visibility with respect to the third tower Niara, any availability on what type of configurations are we looking at and what type of price points we are looking at?
Akash, we're planning to do this launch in Q4 or late Q3. We are still in the process of firming up the pricing and the configuration. At the right time, we'll let you know.
Okay. Thank you. That's all from my side. I'll join back in the queue.
Thank you.
The next question comes from the line of Dixit Doshi from Whitestone Financial Advisors Pvt Ltd. Please go ahead.
Yeah. Thanks for the opportunity. My first question is regarding the Niara only. I think net, net, you said that we had some cancellation but we are maybe around 99 or 100 flat. Obviously, the market looks slightly slow, but you are much more confident. Do you have any number in mind that say 120, 125, 130. This much X number of flight will be sold and then only we will plan for the third phase.
Ladies and gentlemen, we have lost the line of the management. Please stay connected while I rejoin the management. Mr. Doshi, we have the management reconnected. If you can please repeat your question for the management again.
Yeah, yeah. My question was that we heard that market looks slow in the world but you are quite confident of launch. My question is that do you have any number in mind where let's say 121, 130 X number of units will be sold in Tower 2. Then only we will plan for Tower 3.
We are already now achieved that number. We have crossed. I mean we were planning about 2/3 and then we shall move ahead. We are around that. We are now fully gearing up launching the new phase.
Okay. My second question is in earlier calls you have mentioned that the cost is around INR 25,000 in Worli.
Is it also for the Tower 1 also because all exclusive
average cost for the entire over the next five, seven years. That's what it includes. All towers.
It's an average cost including all towers. Okay. Okay, fine.
Thank you.
Thank you. The next question from the line of Amit Srivastava from B& K Securities. Please go ahead.
Yeah. Hi. Thank you for the opportunity. sir, my question is on a launch pipeline. Basically if you look at for the FY 26 we have very strong pipeline of INR 14,000 crore which is going to be launched over the next six quarters. If we look at for the future we have a strong GDP of INR 32,000 crore for going ahead. Larger part of this is concentrated in Worli and coming around INR 45,000 crore which will be launched over the phased manner in multiple years.
Considering that the new project which we will sign in the next couple of quarters that will take time to launch. Are we getting these part of launch pipeline in FY 27 to maintain the INR 14,000-15,000 crore of launch for that year?
Yeah. To keep the momentum of growth going we will of course keep looking for addition of new projects but not at the cost of financial discipline and you know returns and brand equity etc. We realized that to keep the momentum growing we need to add new projects in all locations. We are mindful of that and we are working towards that. Amit, is that. Yeah.
Yeah. Basically we are confident that we can launch similar kind of numbers in a quarterly set. That's all.
We need to add projects. We're working towards that.
Only that we have been careful that we add the right projects and we take the right risk and maintain financial discipline.
Sure, sure. In terms of the project specific in Bengaluru, sir, we have a GDV of INR 3,000 crore. We sold around INR 800 crore this quarter. We have not seen much, as we have not launched any more tower or what was the current and any progress on our Century Bazaar development plan.
As far as Birla Evara is concerned, we had launched inventory of INR 1,594 crore or thereabouts and we have sold about INR 900 crore, so I think we still have enough room to move ahead. There was a slowdown in the first quarter in terms of rig and picking up and all the noises around the IT industry, etc.
I think the real momentum will pick up when the festival season starts and the product is very good as the product comes up. We will take stock of that, whether we want to launch the next few buildings that are there, depending on demand, consumption of the currencies. Happy to note that we have sold more than 50% of the inventory, and the rest of the inventory we will time accordingly.
Sir, that's good.
That's planning in progress. Still several options we are considering. The key thing is to time it with the overall market supply and also don't want to clash it with Birla Niara. That work is going on. We are in no hurry to launch that.
Okay, next question is basically on a very good strategic alliance which we have done with International Finance Corporation and Vishal Shiv.
From a long-term perspective, how are these going to play in our development or scale of our company? Is this a scalable partnership, or is it, and how are we going to prioritize them in a future project? Because we have Mitsubishi, which itself is large, and still we got International Finance Corporation. So have we shown these projects to Mitsubishi also, and then accordingly it has gone to International Finance Corporation? How is it working for that?
We have been pretty distinct, fortunate to have such good partners. Both are very, very high-profile partners. Mitsubishi Estate Company globally, not only in terms of financial strength but also in terms of real estate know-how, and International Finance Corporation, of course, equally strong, financially strong, sustainability, huge focus in that, and very high in terms of feasibility of projects, checking in on the right requirements, etc.
Our projects have stood very high in their profile, and I think they were also, of course, International Finance Corporation, we just signed it last quarter, but Mitsubishi Estate Company and we are going great. They are looking forward to many more such profitable ventures, and I think it's a very good strategy that we are not doing JDs. You think there is too much concentration of capital, and we could perhaps diversify it and do a proper risk management strategy for bilateral going forward. Maintain stronger financial discipline and learn a lot from how to do large-scale business and focus on execution, etc. Safety, faster construction technologies. It's a very win-win, good, distinct partnership that we have evolved, and we are looking forward to building it further.
Okay, great. Last, just a clarification on the paper business, when can we expect a completion of these paper?
Yeah, unit is on track. We expect to complete this process by end of calendar year 2025.
Okay, sir, thank you, thank you.
The next question comes from the line of Puneet from HSBC, please go ahead.
Yeah, thank you so much, sir. My first question is if you can elaborate a bit more on what value is Mitsubishi bringing to the JV and also if there is a plan to do a similar sort of setup in Worli as well because you guys will have land bank which is adjacent to each other. Any thoughts there?
Yeah, so Mitsubishi, of course, as I mentioned, the value is immense. We told you when they came into the project after we have worked on this land quite a bit, we have worked on the risk, and they have given us an adequate and quite profitable premium there.
Also, we are getting a 6% DMC, and over and above that, promote, which is also very lucrative. More important than just the financial part in the strategic partnership that we're looking at them and the kind of knowledge and experience and how they bring into real estate. They were almost 70, 80 years global real estate company, $70 billion or thereabouts, globally big, so very sophisticated ways of working, processes, etc. What really worked with us is our transparency, processes, fair play, the legacy of the brand, etc. The value systems matched, and therefore they were also very happy. Among several developers in India, they chose us to go ahead with, and with that, Worli's concern, we are not really looking at a partnership for the residential portfolio.
We really don't need it, well established in Worli, and the capital investment is not much, so I think we're not really looking forward to partner with them in the residential part of the Worli portfolio. We are thinking also about developing the commercial portfolio there. It could be a worthwhile exploration process so that they would be interested and we are exploring amongst several other large institutions, Mitsubishi is also a candidate for that.
That's very helpful. Secondly, on the ISC JV, will that limit you to do projects on the affordable nature? Are you free to do upper mid income? Mid income experimental?
As you know, none of our projects are affordable in that sense. Projects are all very aspirational, you know, higher mid income or premium. I think there's absolutely no such limitations.
Understood.
Thirdly, if you can also talk a bit about, you know, any new cities that you're planning to enter at this point of time.
Right now as we see, given our management bandwidth, focus required, complexities of approvals in various cities, real estate essentially being a very regional play, the wrappers from region to region, I think we're very happy to establish ourselves, consolidate, expand, expand ourselves into four cities that are chosen. They continue to be the most sought after, number four top cities. I think there's a lot of work for us to do here and establish ourselves so that moving into, you know, fewer or expanding into more cities is a little further away.
We always are looking and we are watching out, we're looking out any cities that are showing strong long term potential and I'm sure there will be some cities that will come up and we are keeping a close watch on all of that. At the moment we are focused on growing ourselves and expanding ourselves in the four cities.
Lastly, for Keyur, there is a rental income INR 275 million which declined both YoY and QoQ. How should one think about it? Both our properties are fully occupied. There's one of the renewal was underway. That will get normalized at the full year end. No, so that and they are 100% occupancy.
Absolutely no worries there.
Yeah, which is why I was surprised to see a decline here. I thought it should have been a pretty stable number.
A momentary transitionary stage where once, you know, we are in process of renewing a rent so there will be maybe a month or two of, you know, rent free period etc. Only growing. Okay. On the cancellation for Worli which you talked about, what kind of amount do you end up forfeiting? Forfeiting? Yeah, yeah. If somebody cancels. No, we have abided by the RERA, whatever 10% that law, whatever the loss that is there as per RERA, we follow the RERA rules clearly. Also, as a long-term customer, the thing we take a look at is what kind of reasons are there for canceling. It's very serious. We take a view from our long-term customer centricity point of view.
Understood. Thank you so much and all the best.
Thank you.
Thank you. We take the next question from the line of Dhananjay Mishra from Sunidhi Securities.
Please go ahead. Yeah, thanks for the opportunity. Most of our launches will be coming in Q3 or later part of Q4. We also have inventory of close to INR 6,000 crore. What kind of sales booking are we looking at in Q2 overall FY26?
I hesitate to kind of give any forward-looking guidance on this part. We will do our best and all markets are looking stable. As you know, all the real spikes come during launches. That's where the whole excitement is. The bulk of the growth prospects will come in Q3, Q4 when the launches happen. We will be really looking for our numbers. I mean, bulk of it will come from the launches.
It should be similar, I mean, what we are doing currently or steady or maybe better than this as we expect Q2 should be, there is a pickup momentum, etc., depending on overall market sentiment. The real punch will come from the launches.
Q2 should be much better than Q1 and overall FY20 will be some growth in number over FY25. Right? That is the right guidance.
I have in the past told you that we are not really giving you a guidance here, too short term, too much impacted by short-term events, uncertainties, interest rate fluctuations, international news, etc. The entire approval system is subject to severe shocks and uncertainties. I wouldn't like to do the injustice of guiding the team into something which is not very certain.
That's why we have taken a long-term view of giving you a long-term three-year horizon where we are more sure of giving us more certain guidance. I really don't want to take you into any other direction, so we are focused on giving a long-term growth and long-term guidance to you.
Okay, thank you.
Thank you, Dhananjay.
Thank you. We take the next question from the line of Debba rma from Antique Stock Broking Ltd. Please go ahead.
Good morning everyone. My first question is on IFC deal. On the recently announced private equity deal involving IFC, it appears that the transaction has been done close to our acquisition cost. I mean, it is around INR 600 crore and Manjri is around INR 300 crore, and if you see 44% to IFC for INR 420 crore, it translates into some INR 950 crore.
It looks like we are doing the deal close to acquisition cost. What was the, given that we are on the verge of receiving cost proceeds from the paper business divestment, what was the urgency or liquidity need to close this PE deal and what is the strategic rationale? I mean, why did you actually do this deal, and have you received the fund from IFC already or is it still in the process? This is my first question.
Before I hand over to KU to give you all the details of the deal on a strategic level, I just want to express to you that if you carefully look at these two deals, both the Ritzani deal and the Manjri deal, you would very clearly appreciate that we are not paid the full value of the land.
These are both deferred land acquisitions, so we have not really paid the value of the land. In fact, we have paid only a part of it, and that is true for both these particular projects. Having said that, there is also a premium that we have taken in terms of warehousing income interest in both these projects, so it's not at acquisition cost. It is a higher cost than that, but the larger and broader scale is that whenever there is a kind of acquisition where the concentration of capital is because of the outright, it is more than what we would look at. I think it's a very effective financial risk management strategy that we get a partner, a strategic partner, through sharing the risk. You must understand that all of these are equity in nature.
They are not any structured debt or debt or equity in the form of a debt or something. It is pure equity, and the upside and downside both are very shared proportionately. These are not requirements for capital, and capital will keep coming and going. If we have a paper, the discounting of paper may go and get some capital, we may go raise capital from many other sources, etc. I think it's a good long-term strategy to have global partners who will also help us give a second opinion on the kind of acquisitions you're making. Capital always, capital always available. Those people who understand and are willing to, and we should make these partnerships, I think for these partnerships really when we actually don't need them, when we actually need and we go to people that are not the right thing to get the right valuation.
I think it's not that, you know, I looked at my 12 months or six- month requirement and said, oh, there is a shortage of capital, so let it run to somebody. These are long term calls taken over the next five, 10 years. How should we grow the business? Good times, bad times, etc. That's how we sought this out at the strategic level.
These transactions with both Mitsubishi Estate Company and International Finance Corporation take 12 to 18 months or more to conclude. At that time when we were initiating the discussions, there was no divestment of paper on the table. Now we have demonstrated that we have global partners who are putting their balance sheet money for 15, 20 years. We also kind of get access to their way of working, and International Finance Corporation has categorized this under the green category for this particular investment.
We want to be cutting edge in ESG. That's one of our mandates and charters because that's going to be the future. Also, we earn DM fees and promote, so innovation for us. That's the reason why we decided to go ahead with this, and going forward whenever we need to access capital, these partners are readily available to put capital with us because all the heavy lifting has already been done and now we have a platform in place which can be quickly replicated. Vipula engine strategy. We also capital just opens up another capital avenue. Revenue caprice is never adequately. Always there are opportunities. You need capital and also it's risk management. It works to us both ways very well.
Basically, this is not just a short term, you know, divestment for liquidity mix. It's basically strategy, a long term strategy. Understood. Understood.
My second question is on the upcoming launch of Tower 3. Just trying to understand what would be your target customer segment. I mean obviously HNI, but I mean are you focusing on NRIs? What kind of, how much do you think, like 10%, 20% would be sold to analysis. I know you divide the year, but HNIs from Indian, other Indian cities or specific offshore geographies like yours, U.K., North America. I'm asking this question given that significant competing supply are there in the Worli market all by, you know, leading developers and you may be aware of them, many of them are listed also. Just trying to understand how do you intend to position Niara and how do you intend to differentiate and who, who, what would be the target audience?
Because it's very important for the Villa Estates and then Niara third tower do as well as Tower 1 and Tower 2 did. Yes sir. That's my second question.
Yeah. If you may allow me. I know Niara already created a very strong position in the market irrespective of time. Over the last few years it has firmly established itself as one of the most premium developments based on the design, based on the brand equity, based on the investment we have done in understanding our consumers and positioning it accordingly. More importantly, on the size of the project, the plot size itself. I don't think, however, market developers, with due respect, all of them, they have the advantage of such a fantastic location and the size of the location. That plays a heavy advantage to us. We are not really concerned about positioning or repositioning Niara.
Niara is very firmly positioned primarily by these qualities which I mentioned, which I think it's hard for anybody else to replicate because they don't have what we have. Having said that, from tower to tower, of course there will be tweaking and amendments, etc., depending on the short term or the current market, ups and down demand, supply gap, etc. We are carefully tuning it so that, not primarily in the long term, I think everything will get sold. The product is so good and so premiumly positioned, but largely from maximizing the offtake at the launch time. With that, we are working in progress. Of course, it will be slightly different from Tower B, different from Tower A. We're trying to bring out some things, too early for us to disclose it today.
This market, like what we've been in the past, will be heavily from the South Mumbai, coupled by the large Indian cities, the Mukasul cities of Maharashtra and, you know, strong like it has happened in the past from the Middle East, Singapore, UK, US. We have had a pretty strong 20+% demand from all these sectors. I think that demand will continue.
Okay, okay, great. Answer that question. Have you received the funds from ISA already? That one,
the funds were received in July.
Okay. In July. Okay. Okay, fine. Thank you, sir. Thank you. All the rest,
thank you.
Thank you. We take the next question from the line of Himanshu Javel, an investor. Please go ahead.
Yeah, hi. I wanted to ask, there is a lot of redevelopment happening around Mumbai as you are aware. What are your views three to five years down the line?
Do you think the excessive supply of redevelopment will be affecting our long-term plans for the company? In terms of supply, I'm talking.
Yeah, very valid. I think the way forward for the development of Mumbai will be substantially skewed towards redevelopment. Redevelopment has its pros and cons. As you know, Mumbai, there is hardly any industrial land available. Most of that got consumed. The last few are for taking. Buildings have got old. If you look at South Bombay and other major parts of the island city and even now the suburbs. I think redevelopment is a very strong phenomenon and it has to be addressed. We also believe that we have a, we should have presence there and we should create a niche there. We are working towards it. We have a dedicated team looking at the opportunities.
I think the biggest advantage we have as a brand is the trust. Redevelopment largely works on trust. Families move out of their societies, out of their plots, trusting and giving it into the developer, hoping that the developer will get them back to their within a single amount of time. We have a huge advantage there. We are working towards building a strong presence in that market, taking a strong market share. Of course, the ticket sizes will be small. I think it can quickly scale up by the number of projects. We consider that as an essential part of our future leading strategy for Mumbai. Are we looking at some big redevelopment projects for the company? We are. We are very aggressively looking at adding some projects to that channel.
Okay, that's it from my side. Thank you.
Thank you very much.
Thank you.
Ladies and gentlemen, if you wish to ask a question, please press star and 1. We take the next question from the line of Akash Gupta from Lomora. Please go ahead
Thank you for the opportunity again. So sir, my question was regarding Birla Punya. I think this year we are planning to launch roughly INR 20 billion of PDV here. I think we already have the RERA approval for this one. What is the reason for holding this project?
Akash, we had the radar for the first phase. After that, remember last year we could launch only a small part of the inventory because of some changes in rooms. We need another fire service floor above the 17th floor, etc. We launched only till 16 floors. Now we are gearing up. We need a new RERA. There's some three, no, which is all we have covered.
We have brought the clearance also. We are waiting the RERA. We will launch a big branch this year.
Got it. Got it. Sir, just wanted to understand on the cash flow situation. How should we look at the year-end market for the company?
From the way the cash flows are, we are expecting very strong cash flows from our collections. As we've already been saying, our outflows are lesser than our collection. From an overall operating level, we will be cash surplus, including after the debt servicing which is planned to be done. We will be cash surplus. From that perspective, the proceeds from the sale of business also will kind of help us from our overall cash flow position. We are very, very comfortably placed from our cash flow position.
Okay.
Sir, just wanted to understand, are we waiting for the proceeds from this ITC deal to come in and then we go for a lot of BDs? Is that how we should think about it
earlier? That is not the case. We are not waiting for the, we have sufficient scope to borrow additional money without our debt equity ratio significantly. That capability we have. As Keyur mentioned, first of all, there will be some cash surplus coming from the real estate business which will be the first use for the BD, and if there is any additional capital required, we are quite in a good position to borrow extra to meet that requirement. It is not that we are seriously waiting for the paper deal. When it happens, it will only help us reduce our debt.
Sir, that's it from my side. Thank you.
Thank you.
We do have follow up questions from the line of Himanshu Javel, an investor. Please go ahead.
Yeah, so I was looking at for the Prabhade Project Century Bagha 1, I think. I wanted your views on that. What is the long-term plan? As you know, the Opera360 has done extremely well in terms of the premium project sizing and another project. What are your plans for that particular project? Maybe
I do apologize. We have lost the line of the management. Please stay connected while I rejoin the management. Thank you for your patience, Himanshu. We have the line of the management reconnected. Please proceed with your question.
Yeah, hi. I wanted your views on the Prabhadari Central project. As you know, the operate 360 project has done extremely well. What is our long-term plan for that particular project? Are we looking at the same kind of premium project?
It's an extremely prime location for the company.
Yeah. We don't have any plans right now for that project. It's not in our short-term plans. We will l ook at it at the right time.
Okay. The investor presentation is showing the Worli new plot is the one which we bought recently, right? There's a small plot showing a Worli West project, which—that's a small one.
Yeah. That's about three and a half acres or part of the diagram. Yeah. That's an additional part of the—part of the map that is there. It is not in the map that we presented.
Okay. What are the particular places where we are looking for the BD in this financial year, particularly Mumbai, etc., or Mumbai?
Mumbai is a very strong focus, NCR, both Noida, Bengaluru, and KP.
Your views on the NCR region?
I'm reading some articles, a lot of supply coming in for NCR, and the pricing also is looking very, very—you know, the prices have gone up very sharply in the last—
What I see is that the right location, pricing—pricing, right—pricing is very important. If you overprice in a location, then there's a good chance the project may not really take off, which has happened, I think, for a few projects recently. I think right pricing, right location, strong brands, strong—absolutely—the right design, understanding consumer, all those factors, if you get it all right. There have been extremely successful launches, as you would have noticed in the last quarter, with strong brands. If you read the market right, there is enough and more opportunities, and we are pretty good. We are pretty bullish.
Thank you, K. T., and good luck for the future.
Thank you.
Thank you.
We take the next question from the line of Rahel from Crown Capital. Please go ahead.
Hello, good morning, can you hear me?
Yes, we can.
Yeah. Have you given any pre-sales and collections guidance for this year, FY 2026?
No, I think we are not giving any guidance. We are more focused on long- term. Yeah, can you hear us, Brian? Sorry, your voice. Any annual guidance for this year? Because it didn't really make sense given, you know, so many uncertainties and approvals, etc. We are rather happy giving you our long-term three-year guidance, which we have guided you for annual sales of INR 15,000 crore in no particular order. It will be more back-ended. That's the best I can sort of give a direction today.
This INR 15,000 crore by then. Sorry, why is it dropping three years?
In three years' time.
In three years' time. Okay.
Annual sale and this. Got it, got it. This collection which you've mentioned, you know, the surplus in your presentation. By when do you, like, what timeline will they come in for the company?
Yeah, we have already started getting, you know, enough and more collective. It started from last year. We have amped it up this year and it will continue to have more and more surplus as we go on. We are already at the surplus. It's pretty reasonably healthy surplus this year by the time we end this year and we expect that to keep growing with the gap year on year.
Okay. Okay, fine. Got it. Thank you and all that.
Thank you.
Thank you. We take the next question from the line of Isha Shah from Mirza Enterprises. Please go ahead.
Hello, sir. Am I audible?
Yeah, yeah, you are Isha.
Okay. Okay.
My question is how are we moving in terms of execution across all the projects? Is it going after our timeline?
Yeah. I think the most key focus as a company we do is on getting projects on time. Primary focus is safety, quality, timelines, and within the budget so far. I'm very happy and proud to say that all our projects are as per our timelines.
Okay. Okay. Thank you, sir. That was from my side.
Okay, thank you.
We take the next question from the line of Sujit Jain from Bajaj Life Insurance. Please go ahead.
Yeah, thank you. I hope I'm audible. Sales has been an issue at least for this quarter for us.
Others have also reported, people like Uber, etc., and luxury segment it looks like in terms of pre-sales still under pressure and when we hear commentary from housing finance companies also, yesterday one of the largest has also spoken about soft real estate market. In this scenario, how do you ensure that rather than reacting to a potential slowdown in sales, proactively you kind of get your pre-sales going.
Sujit, if you would have noticed the trend and likely the real surge in sales happens during the launches and bulk of the inventory gets absorbed during the launches. It's really hard to judge any kind of trends when there are no launches. Again, the markets, and speaking for ourselves, most of the markets that we are representing, there is hardly any of the housing finance. It's not much less than 50% or much lower than that.
Having said that, I would say our pre-sales have been far below expectations, more or less as we had expected because of the huge absorption in Q4. Bulk of our inventories had got absorbed, so there was a lack of good inventory because there were no launches and because of very strong absorption of Q4. We are left with very poor relative inventory in Q1. I would say that is not the reflection of the market at all. I think the market is still going good for the right brand, as I mentioned in the past, at the right location, right pricing. If you get carried away and do overpricing, then there is cost for response. I think we are very prepared and we are very positive in the market.
The segments in which we are in, we look forward to a very resilient future for real estate in the next nine months. I think the festival season is also going to really pump up demand. There's a lot of new launches coming at the right locations, and if you design the product right, prices right, I think there is worry. The overall macroeconomic demand-supply positions are very strong and expect that to continue for a few more years.
I get that, but when I look at, and you can correct me on these numbers, Birla Niara, you have phase II and phase I put together, a free INR 2,400 crores of inventory to be sold.
If I look at selling this inventory as per our strategy, closer to possession, if you look at Tower 1 , out of 414, we have already sold more than 400 apartments.
I'm not really pushing, if you can imagine. If you sold more than 90%, and you know these are very leftover inventory. We are not really looking at pushing or selling these things, so you have to contextualize in the right thing. As far as Birla Niara two is concerned, we almost sold about 99 out of 148, and they're not really pushing it because the bulk of the inventory is gone and there's been a huge uptake in Q4. We still sold a sizable one in Q1. We had a few calculations, some long-term pending issues for some of the customers, and there is so much demand coming in, so much inquiry coming in. Strong leads recently, worried about lack of demand. Demand is very much there.
Sure.
Just on pre sales, while you're not guiding as you said, is it safe to assume that you will exceed what you did in FY25 and by a decent margin?
Yeah.
So it's actually going to be strong like you said.
Exactly. You are basically trying to put words in the mouth. I can't say that. I'll refrain from giving you any sort of guidance on that. Thought I would. I maintain my position that we are looking at a larger long term view. INR 15,000 crore per annum is what we are looking at and it's not going to be a straight line.
Okay. Directionally, would the pre sales be strong this year as well? That is what
the launches come up very strong. We have about INR 13,000 crore plus of launches coming. Very, very excited looking towards that.
Okay, perfect all the way. Thank you.
Thank you.
We do have follow up questions from the line of Biplab Debbarma from Antique Stock Broking Ltd. Please go ahead,
sir. Two quick questions. One is on the paper business management. I was under the impression that deal would be closed in this quarter, I mean July, August, but now it looks the deal will be closed towards the end of calendar year 2025. Could you clarify if there is any risk or uncertainty around the deal not closing as planned?
No, there are no uncertainties and deal is on track and we expect to complete by end of this calendar year 2025.
Okay, sir. Second question is on the payment and land payment, land related payments still pending for Mandarin Khane projects. How much we have paid or how much still pending in Mandarin Khane book, how much we have to pay?
So now, which is told you, I can discuss that with you offline in Thane. The payment has already been made and with the IFC funding coming in, there's no further payment which we have to contribute to.
I mean planned payment.
Yeah, we don't need to contribute. As in a Birla Estates point of view, our commitment is already fully.
Okay, that's all. Thank you.
Thank you.
Thank you. Ladies and gentlemen, there are no further questions from the participants. I now have the conference over to the management for their closing comments.
Thank you all for participating in this earnings phone call. If you have any further questions or would like to know more about the company, please reach out to our IR managers as alum advisor. Thank you for your interest in our company. Thank you.
Thank you.
On behalf of Antique Stock Broking Ltd, that concludes this conference. Thank you for joining us. You may now disconnect your line.