Ladies and gentlemen, good day and welcome to Aditya Birla Real Estate Q2 FY 2026 results conference call hosted by Ambit Capital Private Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star ten zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Karan Khanna from Ambit Capital. Thank you and over to you, sir.
Thank you, moderator. Good morning, everyone. On behalf of Ambit Capital, I welcome you all to the Q2 and H1 FY 2026 earnings call of Aditya Birla Real Estate . In today's call, we have with us the management of the company represented by Mr. R. K. Dalmia, Managing Director, Aditya Birla Real Estate , Mr. K. T. Jithendran, Managing Director and CEO, Birla Estates, Mr. Snehal Shah, CFO, Aditya Birla Real Estate , and Mr. Keyur Shah , CFO, Birla Estates. Without further ado, let me hand over the call to Mr. Dalmia, post which we can set the floor open for Q&A. Thank you and over to you, sir.
Thank you, Karan. Good morning, everyone, and welcome to the earnings conference call for the second quarter and half year of the financial year 2026. As many of you know, at Aditya Birla Real Estate , we are in a strategic transformation, shaping the company into one of India's most focused and future-ready real estate platforms. The broader macroeconomic environment in India has remained supportive during the quarter under review. India's GDP grew by 7.8% in the second quarter of calendar year 2025, exceeding expectations, prompting the Reserve Bank of India to revise its full-year growth outlook upward from 6.5% to 6.8%. Inflation eased to 7.20% in August 2025, supported by lower commodity prices and monetary easing. The stability of the Indian economy, underpinned by resilient domestic consumption and continued public capital expenditure, has reinforced positive sentiments across both the residential and commercial real estate segments.
Under this backdrop, the Indian real estate market continues to demonstrate resilience and steady growth, with sales outpacing launches in Q2 and for the first half of this financial year. The luxury and premium housing categories continue to outperform, with sales in units priced above INR 10 million, growing by 13% year-on-year and now constituting over half of all transactions. Price appreciation has been particularly strong in NCR and Bengaluru, with recorded increases of 19% and 15%. Projects with the right product, right location, and trusted brand name are continuing to witness healthy traction. There is a growing emphasis on sustainability and innovation. Green building practices, energy-efficient design, and smart infrastructures are increasingly influencing both buyers' preferences and regulatory frameworks. It is important to note this is an area where Birla Estates excels.
During the second quarter of financial year 2026, our primary efforts were directed toward driving sales momentum in the existing portfolio, ensuring strong construction execution across all sites, and preparing for a robust launch pipeline in the quarters ahead. Consequently, our performance reflects the sustained interest in our projects and the underlying strength of the Birla Estates brand. I am happy to report that we had very strong bookings for the quarter of INR 890 crore, up by 111% against the previous quarter. Despite the absence of launches, operational traction remained healthy in our flagship projects. Birla Niyaara in Mumbai and Birla Evara in Bengaluru recorded robust sales of INR 320 crore and INR 326 crore, respectively, reflecting continued customer preference for our brand and product quality. As on 30th September 2025, 80% of our launched areas across India had been sold, underscoring the depth of demand across our portfolio.
We have strengthened our launch pipeline with the RERA approval received for our two projects in Pune, Birla Evam at Manjri and Birla Punya at Wellesley Road. Our launches pipeline for the remainder of financial year 2026 remains robust, with an estimated gross development value (GDV) of INR 13,900 crore. We continue to remain confident of achieving this launch pipeline as guided for the year. This also includes the next phase of our marquee Birla Niyaara in Mumbai, the new phase of Birla Navya in Gurugram, and fresh development in Thane and Bhuleshwar. Overall, our total GDV stands at INR 70,000 crore, providing multilayer growth visibility. On the sustainability front, I am delighted to share that Birla Niyaara and Birla Tisya have won the prestigious Sword of Honour from the British Safety Council, demonstrating excellence in the management of health and safety risks at work.
It is important to note these are the only real estate projects across India to receive this prestigious honour. Additionally, Birla Estates has been recognized as a global and regional sector leader in the 2025 GRESB Real Estate Assessment, including number one ranking in Asia under the residential category. These recognitions underscore our unwavering commitment to responsible, sustainable development and industry-leading ESG. Overall, our performance in Q2 reflects resilience amid consolidation and strong fundamentals supporting our long-term growth. With a healthy balance sheet, strong brand equity, and an exciting launch pipeline, we remain well-positioned to deliver our strategic priority in the coming quarters. With that, we can now open the floor for the question and answer session. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Akash Gupta from Nomura. Please go ahead.
Hi, am I audible?
Yes, Akash, you are.
Hi, sir. Congratulations on good performance in the second quarter. Sir, my first question is with respect to your project in Thane. I think we have been waiting for approvals for this project for quite some time. My question is, what is the current status of approvals for your project in Thane, and how confident are we that we will be able to launch it in the second half? That's my first question.
Yeah. As we all know, Akash, the NGT ruling which prevented state authorities from issuing the environmental clearances is gone now. We have already had our hearing at the MoEF committee. We are expecting the minutes of meeting any day, and we are expecting the RERA to be achieved this quarter itself. We are all set for the launch in Q4.
Got it. Sir, my second question is with respect to your operating cash flow. In the first half, our operating cash flow was - INR 4 billion. Our project development cost was INR 10 billion, while collections were INR 9 billion. My question is, how are we looking at the collection trajectory and operating cash flow trajectory in the second half?
Our cash flows, sir, are very, very healthy. I can assure you that. There has been a minor shift in our billing. We had a billing schedule after reaching Niyaara Tower A, 65th floor, for 10%. That got shifted to October, but we did the billing on 5th of October. It's a billing of about INR 265 crore. That money has already started coming in. Similarly, there was another billing for Tower B based on reaching podium five, which is about roughly INR 350 crore. That billing will happen in November. With that, all that funding gaps, about INR 600 crore of healthy cash flows are coming in. We expect a solid cash flow collection of about INR 2,000 crore up to December cumulative. That should set us right for all our cash flow problems.
Akash, just to add further, the amount of collection shown in the cash flow excludes the collection which is done in the joint venture with Mitsubishi. That's almost INR 150 crore, which is not because that does not get consolidated. That's number one. Number two, the project development cost, which is shown in the cash flow, also includes the land purchase prices paid.
Got it. Got it, sir. Sir, my final question is with respect to Niyaara . Two questions. Where is, how are we looking at the competitive intensity here? Number two, if you can give us some visibility on what kind of format are we bringing here and are we confident of getting this done in Q2 itself, considering the competition?
Yeah. I can only tell you, Akash, that we are an exceptional sales performance in Tower B in the last quarter, adding up till yesterday. We have sold almost now 113 units out of 148 units. In Tower A, 400 out of 413. It's been very strong, and the demand continues to be strong. That's the least of our worries. We are all set to launch Tower C as quickly as possible.
There has been a minor delay because of the issues with that, you know, we losing that land to BMC. We had to extricate that out of our integrated development scheme, but that has happened now. We have already got that approval. We are going after the environment clearance and others and the fire NOC, etc. It's just a part of the process. Hopefully, in March, we should be able to launch this project, Tower C. It's a little too early for us to disclose the layouts, but we are well in tune with the market.
Okay. Is there any risk of getting it pushed next year? Because March is like a touch and go, right?
We are trying our level best. As of now, we are confident that we are handling it in Q4. Unless something really just happens, it may get pushed to April. I am hoping that shouldn't happen.
Perfect, sir. I'll join back in the queue. Thank you so much, sir.
Thank you. The next question is from the line of Biplab Debbarma from Antique Stock Broking. Please go ahead.
Good morning, everyone. I have three questions. First is on the net debt. We saw, I think, a quarter-on-quarter increase in net debt by INR 2.8 billion. There have been no new land deals. Even if the PE funds have been classified as debt, they should be offset against corresponding PE cash inflow. I'm just wondering what led to this increase in net debt by INR 2.8 billion.
As K. T. mentioned, we've got some of our collections, which were done in October. We further have another tranche of collections coming up in November for Niyaara Tower 2. Almost INR 500 crore of cash flow would be coming in October and November. That's one aspect. Otherwise, from the overall debt perspective, we are very comfortable. We have to incur payments for FSI premiums and all of that. It's part of the ordinary cost. Because the payment milestones are linked to the collections, there can be a small mismatch. If you see from an H1 perspective, there's a very minor increase in the cash flow, a minor decrease. That's going to be covered up by the billings, which we have already done.
Okay, that's fair enough.
Yeah. Biplab, it so happens we are in that kind of position where we are, we have got RERA for some of the projects. Some of the projects, the RERAs are just on the annual. All the spending for approvals and land costs has been done, but the launch has not happened. It is that juncture we are. As soon as the launch happens, all these collections will come and the debt will be covered, all of this. We happen to be somehow in that position where we have two RERAs. Other RERAs are expected. We are in the midst of that particular point. If you look at this after maybe three months or so, the situation will be entirely different.
Okay. That's good. Sir, the second question is, are you offering any relaxed payment terms in any of the projects, especially in Niyaara or in Gurugram to expedite or to improve our sales? If yes, which projects currently have relaxed payment plans?
Yeah. We continue with our payment plan. We keep adjusting the NPVs of the payment plan. There is no change in our prices; we have uniform pricing for everybody. If there are situations where somebody has some issues and wants to do some adjustments in the payment plan, we are open to that. We are happy to do that, but not very drastic and with no change in the NPV.
No, are we doing it, sir, in some of these projects?
I mean, on a case-to-case basis, we may have done it or may be doing it.
Okay.
Largely, most of the sales which have happened are on normal payment plans.
Okay. Okay. The third question is, sir, how many projects in business development are currently in the due diligence stage? What would be the GDV of those projects? Only due diligence stage.
We have about INR 30,000 crore of projects which are in the advanced stages of GDV. Some of them are in Noida, some of them are in Gurugram, and some of them are in Mumbai, and a couple of them in Bengaluru and Pune. We are hoping that some of these will get rectified very soon. Roughly, the GDV is in the range of about INR 30,000 crore.
Okay. Okay. Final question is on the Thane projects. Have we paid all the land-related payment, around INR 600 crore, if I'm not mistaken?
No, we haven't. It's a milestone payment, so we haven't paid that. Also, we have the.
How much have we paid till date?
We have paid INR 450 crore till date. Now, the ISC funding has come, so there is no further outflow from our side. That's the SP we will pay. In fact, we got cash out after the ISC funding because we had already funded and we took out 44% of our share, which ISC has contributed as its economic interest in the project. Now, there's no further payment which we have to make as Birla Estates. The SP will make the payment.
Okay. Thank you. All the best for the second half.
Thank you, Biplab.
Thank you. A reminder to all the participants, you may press star and one to ask a question. The next question comes from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Yeah. Thanks for the opportunity and season's greetings to everyone. First question is on launches. You know, INR 14,000 crore worth of launches planned for the second half. I can say in a few of the projects, we are probably not launching the full potential of that project, especially in the Sector 71, Gurugram, Manjri project in Pune. Just wanted to know, you know, is it just some strategic decision of launching it in phases to have a better price appreciation in the second phase? Are we okay if we see a better demand? We are okay to open up a little more inventory than we are planning to launch, actually, in these phases. Yeah. That's my first question.
Yeah, Pritesh. Thanks for that question. Sector 71, depending on the AOIs we get, we may perhaps think of launching the entire phase, the entire project because it's not very large, about INR 1,400 crore top line. Depending on the situation, we have given a muted guidance. I think the current situation looks like we may go after the full phase, the full project in one go. Birla Evam at Manjri, that's a pretty large project. It's about 2 million sq ft. How much is that?
2 million sq ft.
2 million sq ft, right? That essentially, we'll have to do it in phases. That will also be asked for a price increase phase-wise. I think that we will go as per the phases only. Our current phase itself is quite a big one. We are looking at about INR 765 crore of launch. For Pune market, I think that's a sizable one. I think we'll go with that phase launch.
Sir, any thoughts on Thane and the plotted development in the same context? Plotted also, we are launching like half of it.
Yeah. Plotted again, you know, based on the demand at that point of time, how it is, we can take a call whether we want to finish off the whole thing or not. Yeah, it's quite probable that we may actually think of launching the whole thing. Essentially, Thane, that, of course, we have to launch in phases. It's a very large project.
Yeah.
That will essentially come in phases.
Got it. That's helpful. On the cash flow, for the project development cost, we lumped land and approvals as well as construction cost. If you can break up the first half number that we have spent on project development, that's roughly INR 1,000 crore, how would that split between land and approvals and pure construction cost?
Broadly, the construction cost is INR 350 crore. We also have expenses on design, liaison, and brokerage. That comes to almost INR 150 crore, another INR 200 crore. The land purchase is around INR 150 crore, and there are other operational costs of around INR 130 crore. That's how broadly INR 1,030 crore is broken up. Also, interest cost because interest, which is capitalized to the relevant inventorized to the various projects. That's how the breakup comes.
Sure. Sure. That interest will be part of the other operational cost, is it?
No. Other operational cost is around INR 130 crore, and interest is around INR 140 crore.
Okay. Got it. Got it. Fair enough. That's it from my side. All the best. Thank you.
Thank you.
Thank you. The next question comes from the line of Amit Srivastava from B&K Securities. Please go ahead.
Thank you very much for the opportunity. Congratulations, sir, on an impressive performance on our sustained sales. My first question is regarding the Pune project itself, which you have already given some clarification. It's basically this project. We got the RERA approval in June, July, yet it has not been launched so far. Typically, we launch within a month of approval. Is there any specific reason for the project getting pushed? Second, how are we positioning the pricing versus enabling projects? If any indicative ticket size for the projects, it would be helpful.
There was the RERA which came in the name of the previous owner. There were some challenges there. Now we got that rectified. The EOI collection is in full, you know, going on. The channel partner meet happened. It's been very successful. The EOI buildup is happening very strongly and aggressively. Very soon, we will start booking. The bookings will be done, I mean, very clearly this quarter itself. We are pretty confident of having very strong bookings here. What is our launch? The calendar launch is INR 700 crore. Yeah, around INR 700 crore. How many units is that? Yeah. So INR 700 crore, and largely ranging from about INR 50 lakh to INR 1.5 crore. Roughly about INR 7,000 per sq ft would be the INR 7,000-INR 7,500. That's the range we're looking at.
Okay. Sure. Sir, in terms of the Birla Niyaara phase III, if we look at our GDV value based on that, the average square feet is coming around 63,000. For the phase II, we have a INR 57,000 average realization. Basically, a 10% premium is based on the current prices. We have factored the GDV, or we have considered the premium. Additionally, have we taken any price hike during the quarter in phase II?
No, no. We didn't take any price hike now for Tower B. Tower C, of course, we haven't decided. That we'll decide closer to the launch. In our listing, I think it will be roughly about INR 4,500 crore for Tower C.
Yes. This is based on the current prices which we are selling, right? INR 4,500 crore with GDV which we have calculated.
Ladies and gentlemen, the line for the management has been disconnected. Please stay connected while we connect them. Ladies and gentlemen, the line for the management has been connected. Over to you, sir.
Yeah, Amit, are you there?
Yes, sir. Yes, sir.
Yeah. Have I answered your question or any part balanced?
I was asking, sir, that INR 4,500 crore GDV you have calculated is based on the current prevailing price of Birla Niyaara phase II?
Yeah. I mean, we broadly said now that fine-tuning of the pricing, we will do it closer to the launch depending on the demand, supply, and the buildup.
Sure.
Yeah?
Sir, your next is in terms of the other than Pune project, two projects which are expected to launch, any other project possible to launch in Q3?
Q3, Q3, we are looking at Birla Punya, which is at Pune. Of course, Manjri Evam, which is again this quarter. Also, we're looking at Gurugram Sector 71.
Okay.
These three launches, we are hoping to clearly do that. We are also expecting the RERA for the Thane project this quarter.
Okay.
Yeah.
One last question. In terms of the first half, we have already shared the construction cost. Any ballpark figure for the second half construction is being planned?
It will be on similar tracks. It will be around INR 750 crore pure construction cost.
Okay. Thank you very much, sir. This was.
Thank you, Amit.
Thank you. The next question comes from the line of Harsh Pathak from Emkay Global . Please go ahead.
Yeah. Hi. Thanks for the opportunity. First of all, it's good to see the sales momentum back at Worli . My question is, have we started running some interest checks for the third tower? I know you have commented that it's early to talk about the project configuration, but any broad range of the ticket size that we are thinking for this particular phase?
Too early to comment, Harsh. We'll disclose it closer.
Sure. Okay. In terms of realization, for most of the projects, we have seen realizations are up on a sequential basis. For the Worli project, have we taken some particular price increase, or is it just a function of higher floor sales, something like that?
No, we have taken a price increase now. From now on, we're taking a price increase. It will be more like an average of about INR 1.1 trillion.
Sure. Sir, lastly, in terms of the ITC deal, is it on track? By when do we expect that to conclude?
Yeah. ITC deal is on track. ITC have applied already to CCI. Meetings are going on. Hopefully, it is on track, and we will be able to close in this financial year.
Sure. The cash flows for the same will be received this year, or shall we incorporate in FY 2027?
Hopefully, in this year, in this financial year.
Okay, sir. Okay. That is from my side. Thanks a lot.
Thank you. The next question comes from the line of Dixit Doshi from Whitestone Financial Advisors Private Limited. Please go ahead.
Thank you for the opportunity. Firstly, you did mention that Niyaara Tower C, we are planning around March and Thane in Q4 and Sector 71 and Pune projects in Q3. Regarding the other projects, are they also on track for Q4, or is there a possibility of some of them going into Q1 next year?
In addition to whatever I mentioned, Doshi, we are going to launch Boisar plotted in Q4. We are going to launch Birla Arika in Gurugram phase II in Q4. We're also planning to launch new phases of Birla Punya in Q4. In addition to that, we're also launching Trimaya phase IV in Bengaluru, again in Q4. All of these launches are planned.
Okay. Yeah. Okay. One more question is, in the page number 17, we have given the full pipeline. There, let's say, just let's say Thane project, the GDV for FY 2026 is INR 1,630 crore. This is the entire GDV, right, and not the 56%?
This is the entire GDV. Yes, you're right.
Okay. For all the projects where our share is lesser, the entire GDV we are mentioning.
Correct. Correct.
Okay. One more question is regarding the commercial projects. Are we thinking anything in the near term in Worli for a commercial building? I'm also asking this question because next to us, Mitsubishi is also planned, going to come only with the commercial projects. Are we thinking that we should be ahead of them, or how are we thinking?
I think it's high time that we start the commercial office space, so roughly about 1 million sq ft. We are in the process of designing and planning for that.
Okay. Okay. Just last question on the Niyaara Tower C. I think we are still having a Tower 1 and 2 inventory of almost INR 1,800 crore. Do you see any impact on Tower C because of this inventory?
Absolutely none. We have done very well in Tower 1 and 2. I think it's very important for us to bring fresh inventory into the market. The market is craving for it. They're all waiting for it, as all of us are. We are just working towards launching it. There's a huge demand buildup for Tower C, and the market is just waiting for it. I think we have done more than, you know, what we are far beyond our expectations in Tower A and B. Tower A, as you know, is 95% sold. Tower B is also about 75% sold. I think we really need to now launch Tower C.
Okay. Just last question on the Tower C. You know almost all the inventory is above INR 30+ crore, and there is a lot of competition in that price point in that locality also. Are we thinking of Tower C with, let's say, INR 15 crore-I NR 20 crore inventory as well, or will it be more similar to what we are doing currently?
See, our experience, considering the location, the size, the amenities, the brand, the way we are progressing on construction, the uniqueness of our layout, has definitely positioned us in a very unique way in that whole market. The proof of the pudding is how we have performed in the last quarter. We are not really worried about who the competition is and how much the competition is. The competition, which is coming up today, is also five to six years beyond delivery. We are not really worried about it. We will independently decide what kind of layout we want to do and what size of the ticket size we will plan. Depending on our current demand for Birla Niyaara , there is a big queue for Birla Niyaara 's new project.
With that, keeping that in our background, in our mind, we are in the process of designing the ticket size for Tower C. It is a little too premature for us to disclose now.
Okay, that's it from my side. Thank you.
Thank you.
Thank you. The next question comes from the line of Hardik Jain from White Stone Financial. Please go ahead.
Thank you for the opportunity. All my questions are answered. Thank you.
Thank you. The next question comes from the line of Hitaindra Pradhan from Maximal Capital. Please go ahead.
Hi, sir. I hope I'm a udible. Thanks for the opportunity. My question.
Hi, Hitaindra.
Hello, sir. Yeah. It's regarding the clarification you made on the collections. Like, you know, there was some kind of slipover happened during this quarter. What was that amount? Was that INR 500 crore or INR 900 crore?
It's INR 260 crore + INR 250 crore, about INR 600 crore, INR 600-odd crore.
Got it, sir.
Yeah.
Sir, the second question is related to slide number 27, where you have articulated the cash flow potential. If I understand it correctly, then it is split into your FY 2026 kind of already launched projects and to be launched in the pipeline projects, right? Like the GDV and what is the?
We have only considered the projects which we have launched so far. The projects which are not yet launched, like for example, Thane is not included. In Pune, which we have started the market warming, that is not included.
These are all projects which are launched till last year. No new launches happened so far. It's all till last year, whatever has been already launched.
On launch projects, sir, the 46,000 basically is like your 13,000 that you're going to launch this year and 33,000 that you're planned from the future.
Yeah. Yeah.
Could you give a follow-up on the cost and the timeline on the launch projects? What is your internal kind of estimates or any kind of ballpark figures on this?
We've already mentioned the launch pipeline, which is around INR 900 crore. Broadly, K. T. also mentioned earlier what's going to happen in Q3 and what's going to happen in Q4. That's broadly what we have here.
I was asking regarding the on launch, sir, like the 46,000 that you mentioned here, any kind of, you know, internal. I know that, you know, it's in the future.
Roughly, we consider about 25% EBITDA, so you can make your calculation accordingly.
Got it, sir. That's helpful, sir. Thank you.
Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference call, we request you to kindly limit your questions to two per participant. Should you have a follow-up question, kindly rejoin the queue. The next question comes from the line of Ronald from ICICI Securities. Please go ahead.
Thank you, sir, for the opportunity. Congratulations on good sales run rate. On the collections front, as you mentioned, the INR 2,000 crore would be the cumulative till December. From Q4 onwards, should we see the collection run rate, you know, quarterly run rate to range in about INR 700 - 1,000 crore? Or, you know, it would still revert back to around INR 500-odd crore quarterly run rate?
No, we would be having a strong cash flow because there are two aspects to the collections. One is the launches where there is a chunky collection which comes in when we launch a project. The second is the milestone-based collection which will be coming in. We expect to grow as compared to the collections which we did last year.
Okay. Secondly, on this INR 30,000 crore BD which you're eyeing, can you shed some light, you know, what share would be the owned projects? Are you looking purely on JV basis? In terms of capital allocation going ahead, are we eyeing for more owned projects? What kind of split is there in this INR 30,000 crore BD?
What I mentioned is that this is a sort of current pipeline that we are having with term sheets signed in advanced stages of negotiations. As I've said in the past, we're pretty confident that we look forward to doing about INR 10,000- INR 15,000 crore of GDV, finalizing before the end of this financial year. I said it would be a judicious mix of joint ventures and outrights in all parts of the country.
Own land is only Tower C. Own land is only Tower.
Yeah. Among the new projects coming, these are all going to be, you know, acquired. None of these is going to be our own land. That is only whatever we had in Worli, and that's it. Nothing more than that. Yeah. Does that answer your question, Ronald?
Yes, sir. Yes, sir. Just one last question, sir. On the launches front, whatever you are launching, would you go to sell more than 80% or 90%? Or would you hold back, say you would take a launch?
No, we won't hold back. Whatever we launch, we'll go after it. There's no question of holding back. I also wanted to let you know that, depending on how we are positioned as our sales for the current quarter, for the first half, we are now pretty confident that we will exceed what we sold, what bookings we did last year. We'll be exceeding that target.
Great, sir. Great. Thank you very much. Best of luck.
Thank you, Ronald.
Thank you. The next question comes from the line of Himanshu Javedi, an individual investor. Please go ahead.
Yeah. Hi, K. T.
Hi, Himanshu.
K.T., I just wanted a broad vision for our company in the next three to five years. Where do you see yourself going in terms of the sales in the next three to five years? Can we foresee that we can be a, like, INR 20,000 crore top-line company in the next three to five years?
Of course. No doubt about it. We will be among one of the largest real estate companies in the five years to come. Not only just size. Size is one very critical aspect, but also in terms of reputation and customer-centricity, we want to be the most reputed and the most customer-centric company with deep focus on design, customer-centric design. That's the vision we are having. As a company, in five years' time, it should be in the forefront of sustainability, in the forefront of operational excellence, no delays in execution, timely delivery, best in quality. Those go hand in hand with growth. Our total focus is on the operational excellence that we believe totally in while growing in size. It has to grow hand in hand.
Okay. That's great. One more thing, K. T . If you see in Mumbai, there's a lot of redevelopment going on, you know, every second, third building is getting real. I wanted your thoughts in terms of what is your thinking, is the supply going to be very, very large in the next three to five years? Is it going to affect the prices? Your views, appreciate it.
Yeah. I think the redevelopment is very encouraging. The next phase of Mumbai growth will be redevelopment. I think it will come in fits and starts and in packages. It will not come all at the same time. There are lots of challenges in redevelopment because these sizes are small. They're in such locations where you need to have proper accesses, titles, disputes between society members, the boundary disputes. So many challenges are there. To get it all together, it takes time, patience, innovative ideas, government support, all of that. We are also pretty excited because the brand plays a very strong equity here. We are in advanced talks with several projects, redevelopment opportunities in South Mumbai, Bandra, Juhu, Khar. We're quite excited about it because it gives us a very good platform to express ourselves and do a great job in giving some fantastic products.
We are working towards it. It takes time and patience, and we are there to solve all issues of the current members. I think it will not flood the market and say there's a huge deluge of supply. It will come in phases and in spurts. I don't think that's going to really have a big impact on the pricing. I really don't think so.
Okay. Going forward, K. T., do we see like around the INR 20,000 crore GDV, steady over the next three to five years every year? If you want the company to grow.
You are talking in terms of booking? Sales booking?
I'm talking about the BD deals, sorry, BD.
Of course. With a lot of funds coming in and strategic partnerships and the paper sale happening, I think we'll be going very, very aggressive in all of our chosen markets.
Because this year has been a little quiet, you know. That's why I was just asking.
Yeah, I agree with that because it sometimes takes time to find the right projects. We have a very healthy pipeline, and we are confident that we will be doing at least INR 10,000 -INR 15,000 crore of BD before the end of this year.
Okay. That's great. Thank you, K.T. Thank you.
Thank you, Himanshu.
Thank you. The next question comes from the line of Akash Gupta from Nomura. Please go ahead.
Hi, sir. Thank you for the opportunity for a follow-up question. My question was regarding the INR 10 billion debt that we are using. Is it mostly for BD, or is it related to this platform mismatch?
No, it's mainly for business development, Akash.
Okay. Sir, my second question is about our execution capability. Now, we are launching like four projects simultaneously in three to four cities. Could you give us some understanding, like, how are we building our execution spend in these four cities?
Akash, we did about 6 million sq ft of construction last year. We are building 11 million sq ft this year, 35 million sq ft next year, and then scaling up to 50 million sq ft. The idea is, of course, we have expanded our team. We were about 300, 400 people. Now we are almost 700 +, and we keep expanding. We keep looking for the best of talent within our company and especially for the operations team. Apart from that, we also embarked on a very ambitious operation excellence program with BCG to deliver high-quality product at scale. The global BCG team is working with us with global standards and practices, how to really optimize costs and standardize designs, digitize, bringing technology, strategic partnerships, all of that together and combining a very special and unique way of Birla way of execution. We are well into that program. It's doing very well.
It's already yielding great results. I think that's the way moving from hardcore labor-oriented programs to technology-oriented programs. That's how we are trying to transition into this high-scale delivery.
Got it, sir. That's all from my side. Thank you.
Thank you, Akash.
Thank you. A reminder to all the participants, you may press star and one to ask a question. The next question comes from the line of Biplab Debbarma from Antique Stock Broking. Please go ahead.
Sir, my first question is on the, you know, some of these developers are delivering fairly large projects within three to four years. If I check our RERA delivery dates for some of our ongoing projects, I notice that, you know, the delivery timeline is so stressed, like five years, six years. I am just wondering why this significant difference, or is it the normal? It is not that we are seeing any challenges in sales. We are selling very fast and selling well. Why is it taking so much time to deliver a project which is fairly sold out?
I’ll be very excited and eager in this thing to understand who are these people who are delivering three to four years. My data says very different. The kind of delivery that we are doing, we would like to believe we are the fastest and among the best in the industry. Look at Worli, the time taken for all the deliveries which has happened of various projects. I mean, look at ours. I see a very different picture. We are ahead of most of the other competition here. I’ll be very keen to understand and also learn from the people who are delivering in three to four years large projects. I’m sure there will be something great to learn from it. All eager. As of now, I don’t have any such data. We’ll sit with you and understand how this is doing.
We’ll be very keen to learn the ways of doing that.
Second question is on the slide 17, sir. Just a clarification. The estimated surplus cash flow potential, you have shown around INR 74 billion. Is it Birla's share or this includes the partners here?
No, we have excluded the partnership, Biplab.
This is only Birla's share.
You're referring to slide 27, right?
No, I am referring to slide 17, sir. You gave one table, which, yeah, the estimated surplus, estimated cash flow. Yeah, slide 27. Yeah, you're right. Does it?
That is after excluding the payout to the partners, landowners, partners, etc., that's.
Does this include your PE partnerships?
Those projects we've already launched, not yet launched. Thane and Pune, we have not yet launched. For the Bengaluru one, yes, it includes that. We will clarify that. I'll clarify that separately.
You have PE investors in a few of these projects. I'm just wanting to know if this cash flow includes the PE partners' cash flow also, as well.
No, just to clarify, this does not include the PE partners' cash flow. The unlaunched projects where we have PE investors are not included in the INR 23,000 million launched portfolio. That's what I'd like to clarify.
Yes, thank you. Thank you. Finally, what would be the ticket size of Thane project?
Yeah, Biplab, it should be anywhere between INR 75 lakh -INR 2 crore.
Okay. Thank you, sir, and all the best.
Just one more clarification. I'd just like to clarify. We have made payments of INR 385 crore for Thane till date. I correct my previous.
Okay, sir. Okay, sir.
Thank you.
Thank you. The next question comes from the line of Ronald Siyoni from ICICI Securities. Please go ahead.
Thank you for the follow-up, sir. Just one query regarding the new Worli land parcel of 2.6 million sq ft. Are we, you know, because for FY 2025 to achieve research growth ratio, you know, the best project to be launched would be very much important. Will this project be launched in 2027? If yes, will it be in phases or the entire project? Just a view on that.
Yeah, good question, Ronald. After the launch of Tower C, we are already in the planning for that phase. We will then work on that, and hopefully, maybe that year or the year after that, we'll launch this. We are now focusing on Tower C.
Depending on how it goes, yeah.
Yeah, we would rather do it next year itself. We will take that call once we see the performance of Tower C.
Okay. Thank you very much.
Yeah.
Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over back to the management for closing comments.
Thank you all for participating in this earnings con call. If you have any further questions or would like to know more about the company, please reach out to our IR managers at Aditya Birla Real Estate . Thank you so much and good day.
On behalf of Aditya Birla Real Estate , that concludes this conference. Thank you for joining us today, and you may now disconnect the lines.