Ladies and gentlemen, good day and welcome to Aditya Birla Real Estate Q4 FY 2026 earnings conference call, hosted by HDFC Securities. As a reminder, all participants' 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Jay Shah from HDFC Securities. Thank you, and over to you, Mr. Shah.
Hi. Good morning, everyone. On behalf of HDFC Securities, I would like to welcome you all to the 4Q FY 2026 and full year FY 2026 earnings conference call of Aditya Birla Real Estate. Joining us today from the management are Mr. R.K. Dalmia, MD, Aditya Birla Real Estate; Mr. K.T. Jithendran, MD and CEO, Birla Estates, and Mr. Keyur Shah, CFO, Birla Estates. We will begin the call with opening remarks from the management, following which we will open the floor for question and answer session. I would like you to hand over the call to the management for opening remarks. Thank you, and over to you, sir.
Thank you, Jay. I'm R.K. Dalmia. Good morning, everyone, and thank you for joining us for our Q4 FY 2026 earnings call. India's economy remained resilient in the quarter ended March 2026, Q4 FY 2026. With FY 2026 GDP growth estimated at 7.6% and FY 2027 projections of 6.9%, it reinforces its position among the fastest-growing major economies globally, supported by strong domestic demand, a stable policy environment, and continued investment activity despite of some global factors, including geopolitical tensions in West Asia and potential energy price pressures. Inflation has remained under control at around 3.2%-3.4% in early 2026, and projections of 4.6% for FY 2027. The real estate sector continues to benefit from this largely supportive condition, strengthening sector's long-term growth trajectory.
In terms of industry performance, the residential demand remained stable in Q4 FY 2026. However, premium and luxury segments continue to outperform while affordable and mid-income demand soften. Tier 2 cities' supply showed a moderate dip with a growth absorption for over the FY 2026. MMR remained resilient with a modest growth in both absorption and supply over the years. Market dynamics in Bengaluru remained strong and favorable as it witnessed growth in both absorption and supply by delivering a healthy increase in price growth YoY. NCR has witnessed decrease in supply YoY, but growth in absorption coupled with increase in price growth. Pune has seen relatively sharper moderation in activity in terms of both supply and absorption. Further, pricing has shown a healthy growth across all the four regions.
YoY growth MMR 7.4%, Bengaluru 13.9%, NCR 8.5%, Pune 6%. Overall regional trends continue to reflect pre-premiumization and more selective buying behavior. Industry player are responding to this evolving demand environment through calibrated launches, disciplined pricing strategy, and flexible payment plan to support absorption. On commercial front, the market continues to witness strong leasing activity supported by GCC and demand for grade A assets, resulting in tightening vacancy level and a continued rental upcycle across key markets. Overall, the Indian real sector is stable with increasing emphasis on execution, brand strength, and product differentiation. To our performance for the quarter. I'm pleased to share that we have delivered exceptional close to FY 2026. Q4 FY 2026 has been one of our strongest quarters to date.
We achieved pre-sales of INR 4,288 crores, reflecting a robust 69% QoQ increase. Collection for Q4 FY 2020 remained healthy at INR 994 crores, and we recorded area sales of 3 million sq ft, making an impressive 75% QoQ growth. This momentum was fueled by the outstanding response to our new launches across regions. Birla Arika Phase 2 in NCR continued its strong trajectory with 97% of launch inventory sold in the launch quarter itself, contributing INR 1,600 crores. In MMR, Birla Taranya witnessed increasing demand, delivering INR 952 crores in sales. Our Bengaluru launch, Birla Trimaya Phase 4, continued to build on the success of earlier phases, generating INR 649 crores.
In Pune, Birla Punya Phase 2 added INR 250 crore to the quarter, reinforcing our presence in Pune micro market. For the full year FY 2026, we closed with the pre-sales of INR 8,136 crore, collections of INR 3,341 crore, and area sold to 5.5 million sq ft, reflecting the depth, resilience, and stability of our business. On our redevelopment front, we announced our maiden redevelopment project in Khar with a GDV potential of INR 1,700 crore. Discussions with several more societies are progressing well. We remain optimistic about concluding additional partnerships in the months ahead. This segment will further contribute to our growth going forward. Operationally, our construction progress remained firmly on track across projects. Safety and sustainability continue to be at the heart of our execution approach.
Our rigorous safety practices were recognized by the British Safety Council, which conferred upon us the prestigious Sword of Honour, along with a 5-golden star rating. Our commitment to fostering an inclusive, diverse, and equitable workplace is stronger than ever. We are proud to share that Birla Estates was recognized as one of the best organizations for women 2026 at the sixth edition of ET Now. Our ESG leadership was further acknowledged by British World, which ranked ABREL among India's top 60 most sustainable companies and number two in the real estate and REITs category. As we look ahead, our commitment remain unwavering. We continue to prioritize designs, excellence, customer centricity, and the highest standards of safety and quality. We are building not just homes, but superior experience, creating long-term sustainable value for our shareholders. Thank you. Thank you so much.
Thank you, sir. Sir, should we open the floor for the Q&A?
Yes, please go ahead.
Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions may please press star and one on their touchtone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only 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 Karan Khanna from Ambit Capital. Please go ahead.
Yeah, hi. Good morning, and thanks for the opport-
Mr. Karan? Sir, the participant has left the queue. I'll request the participant to kindly rejoin the queue. In the meanwhile, we'll take the next question. Okay. Karan Khanna is in the queue, sir. I'll just promote him. Thank you. Karan Khanna, please proceed.
Yeah. Hi, am I audible?
Yes, you are audible now.
Yeah. Hi. Good morning, and thanks for the opportunity. Just a couple of questions from my side. Firstly, K.T., sustaining sales seem quite healthy for the fourth quarter, almost at 20%. For the INR 7,300 crores of inventory that you have remaining, what kind of sustaining sales do you foresee going into FY 2027?
Hi, Karan. Can you hear me?
Yes, K.T., we can hear you now.
Yeah. As a Sustenance, we had a very good traction in our Bangalore project, which was largely Sustenance-led and also in Niyaara. Otherwise, the bulk of it was from new launches. We're not giving a clear guidance for the next year. All I want to tell you that, I mean, for the current year, we have got about INR 9,000+ crores of new launches and INR 7,000 crores of Sustenance sales coming up. We are refraining from giving any guidance because it's very difficult to actually predict what kind of sales we can estimate. That's why I'm not giving any clear guidance.
No, that's fine. Just following up, you know, on the Mumbai market, if you could just talk a bit about the overall market, given that, you know, you'd seen 1% growth in absorption and 2% growth in supply, yet, your existing inventory in Mumbai is at about INR 4,000 crore, the pipeline inventory for FY 2027 is also very much concentrated in Mumbai, especially Worli. How are you looking at the luxury market in MMR overall, and how do you plan to manage launch timelines to allow for ample response to the launches? Also on the launch pipeline, if you can talk a bit about at what stages of approval are all these projects currently at. I'm just trying to understand the downside risk in terms of launch delays that one can build in these projects.
Yeah. I think we had a fairly good year last year with respect to Mumbai. Yes, the launches came at the very fag end of Q4.
Thane Birla Taranya did extremely well. We did about INR 960 crore or so of bookings in the few days that was left for us in Q4. The momentum continues. Niyaara, also with whatever leftover inventory was there, I think we had a healthy, you know, strike rate of at least two to three flats per month last year. With the new launch, I think it will really pick up. That's a different product, and we expect a very strong response from the market. Already we have a, you know, reasonably strong queue lined up for this project. We have also signed a new project in Khar, which we are really working overtime to make it launch-ready.
I'm quite hopeful that we'll be able to make it, and it's a very exciting market, very strong demand, coming up with a unique product, so pretty excited about that. Our launch in Boisar also, again, it was a very far end, but we did clock about INR 80 crores-INR 90 crores there. We are expecting to sell it out completely this year. I think, from the micro markets where we are in, especially, you know, the Thane, Navi Mumbai junction market, Worli especially with our brand and the Niyaara, which has been created very strongly and the new micro market in Western suburbs, we are pretty excited, and I expect a very strong response for us in this year. As far as the launch for Birla Niyaara Tower C is concerned, it's really touch and go.
We are pursuing very hard to get the approvals. It could be touch and go. We're expecting first half of H1, but it's quite possible that by the time we take the launch, it may spill over to Q3 also. Fingers crossed about that. Overall, I think we have, you know, enough time for us to, you know, do very strong numbers in Bombay this year.
Sure. Just lastly, on Bangalore, given that this has been the strongest market for you and also the strongest response, and yet you don't have any major launches slated for FY 2027. How should we think about the BD that you're targeting in this market going into FY 2027?
Yes, yes. Good question. I think we have had a wonderful, you know, response in all of our five projects. We have handed over one, and we are in the process of handing over another one this year. We'll be left with Trimaya, Ojasvi, and Evara. We expecting very strong Sustenance sales from both Trimaya and Evara. We are also very aggressively looking at BDs. We have quite a good sort of, you know, medium-sized proposals which we are working very hard. Largely, our total focus this year will be concentrated on building our BD portfolio, and we are quite optimistic about that.
Great. Thank you, and all the best, Kirti.
Thank you.
Thank you. Thank you, sir. We'll take the next question from the line of Jay Shah from HDFC Securities. Please go ahead. Mr. Shah, I have unmuted your line. Please proceed.
Hi. Can you hear me now?
Yes.
Yeah, Jay.
Yes. Hi, sir. Can you quantify the launch timing, like in terms of H1 and H2 FY 2027, which approvals remain key dependencies? Also, we are seeing that the like in Worli, there is quite a good supply now. How are you? Do you see any slowdown in luxury absorption or pricing resistance given the increase in South Mumbai supply amongst the peers?
Okay. Thank you, Jay, for your question. First, in terms of timelines, as I mentioned about Tower C, Birla Niyaara, I mean, the brand has come very strongly in that micro market, and we are still commanding a good premium and demand, and we expect Tower C to really accelerate that demand. Considering the initial response that, sort of, you know, we are building up, of course, we haven't launched it, but, you know, discussions with channel partners, et cetera. The only challenge is that we are working very hard to get the approvals. It may be, you know, we may just get RERA at the end of Q2, and we may launch it either in Q2 or maybe early Q3.
We wanna make sure that we're completely ready in all terms when we launch it. That is Q2/Q3. Birla Taranya new phase, that will happen in Q3, which is the Thane second phase. Once we sort of exhaust our, you know, current phase substantially. We have got a new project we signed, redevelopment project in Khar, which we are working overtime to make it launch-ready in this year itself. Definitely that will be Q4. Birla Navya, the last phase in our, you know, Golf Course Extension location, that we're planning it in about Q3. Birla Punya in Pune, the new phase launch we're expecting, that should be in again Q3. Birla Evam in Manjari, it's in Q4. Pune again. This is largely the timelines.
Okay. Thank you, sir. Also, one more question on BD. Like, can you share the current active BD discussions, like, by geographies, which is MMR, NCR, Bangalore, and Pune, and the preferred asset, like, versus outright acquisition?
Yeah. I mean, I can't just share this with you in great details, but I can generally give you the trend that we're looking aggressively at Noida. Sort of an outright Gurgaon JDA. Mumbai, JDA and outright both, but lots on redevelopment, at least four or five projects. Pune, outright and Bangalore JDA and outright.
Okay. Can you, like, quantify, like, the amount of GDV?
Overall, I could say roughly about Yeah, roughly about INR 60,000 crore of projects we are at this point of kind of pursuing. We are trying our best to maximize what we can do.
Okay. What would be the mix for MMR, in terms of, like, in the INR 60,000?
MMR will be about 35.
Okay. Sure. Lastly on, just wanted to know, like, what are we seeing in terms of target steady-state operating cash flows converging from pre-sales over the next couple of years?
Sorry. What are you exactly asking? In terms of your customer collections, are we talking about that?
Correct. Correct. Pre-sales,
Customer collections?
Yeah.
Customer collections, Jay, we are largely, most of it is linked to, you know, construction progress, barring a few of them. Mostly, we attempt to collect at least 65%-70% by the time we finish the structure of the building. There is a little bit of flexibility here and there, but largely that's how we're looking at. So far, we have been doing very strong in customer collections. We grew by more than 23% from last to last year's collection to last year. We are looking at a very healthy growth this year, also from that number.
Okay. Okay. Thank you so much.
Thank you, Jay.
Thank you. The next question is from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Yeah. Thanks for the opportunity. Just first one, again, to be very specific on Bengaluru launches, which Karan earlier asked for. I don't see a last phase of Birla Trimaya coming this year. You know, any specific reason why? Because we don't have anywhere too much of inventory there. Almost 150 odd only.
Hi, Pritesh. I think we are now focusing on execution. We have lot of, you know, sold inventory. We are building it, and I think we can get a healthy margin. I think we'll wait and, you know, really maximize in the last phase. Prices have really gone up there, and every launch has been at a higher price. I think we really would like to now maximize the revenue from our final phase. As you mentioned, it's not much, but it's worth waiting for, also. This is a project which has taken about five, six years. I mean, we just because it has been a 52- acre project.
It helps us to, you know, really plan the launch of the last one in a big way in terms of there are any kind of cost escalations or anything. We wanna just keep that inventory as a, you know, as a hedge, because there is enough of done, enough this thing, enough of positive cash flow is there. We're really focusing on now really maximizing on the last phase. That's why there's no hurry to launch that now.
Sure.
Yeah.
It is clear. In terms of, you know, let's say any business development we sign off from here on, right? We saw, you know, KAR getting added to the FY 2027 launch pipeline, and we signed that project just in March or April. Any of the potential business development opportunities you think can be, you know, launched this year by Q3, Q4 or for this year we are, you know, this 10,000 crore, roughly 10,000 crore kind of launch guidance should be the number to look at.
Pritesh, I would really refrain from giving any, you know, I mean, you any kind of guidance. You know better than that how, you know, indeterminate it is, you know, whatever guidance you may give. I am only happy to say that, you know, we did give finally in the Q3 last year guidance that we will exceed, and we did manage to exceed that. We are pretty happy about it. It is like that also happened without the launch of Tower C. We couldn't launch it. Any guidance that I give will be, you know, could be misplaced because of the very sheer uncertainty of when these, you know, launches can take place, largely dependent on the approvals schedule. Approvals are largely based on two things. One is the environmental, and the NGT.
Those are pretty indeterminable things, so we do our best in estimating them. I don't really want to, you know, give any sort of clear estimates. Having said that, our whole attempt would be to, you know, launch as quickly as possible all of our projects, because that's where we try to, you know, put all our efforts in since we pay full price for the land. I would love to be in a situation where I can grab a project which has all the approvals and launch it immediately, but it's quite unlikely because very difficult to get that sort of project and also to our standards. That seems a little too far-fetched, but I won't lose hope on that.
Sure. Got it.
And just.
Mr. Sheth-
A couple of more-
Mr. Sheth, I'm sorry to interrupt you, sir. I would request you to kindly rejoin the queue for follow-ups.
Sure
There, there are others who are waiting. Thank you so much, sir. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to only two per participant. Should you have a follow-up question, please rejoin the queue. We'll take the next question from the line of Akshay Thakur from Helios Capital. Please go ahead.
Hello. Hi, sir. Thanks for the opportunity. My question is pertaining to your land in Talegaon and Kalyan. We have a huge chunk of land in Talegaon. From what I got a sense from a previous meet that you plan to do a senior living project there, and that area is also getting more projects in similar manner. Can you give any guidance on the GDP potential, or what is the plan in terms of numbers for Talegaon and for Kalyan as well?
Hi, Akshay. Yeah. As regards these two parcels of land, this belongs to our, you know, historical land parcel that, you know, Century Textiles had in its kitty. We must remember that Talegaon land is an agricultural land. It needs to be converted, et cetera. It is in a very preliminary stage. It is not part of the Pune development scheme as of yet. The entire process of conversion, et cetera, is expected. It has not happened because the region has not come still under PMRDA, et cetera. It is about 45 acres of land. We have plans, we have aspirations for that. Nothing is really clearly laid out as of now. Why we thought senior living is because, of course, the climate, its proximity to the Aditya Birla Hospital.
The government is coming up with some friendly schemes for senior living, even if it is not, you know, a converted zone. We are exploring from those point of view, but too early to give any kind of clear details and numbers on this. In Kalyan, we don't have, as of now, any land which is ready for development for the next few years. Whatever we had is all exhausted now. The large plant, Centurion and all, that's too far-fetched, and it will take a lot of time because it's a fully production going on with more than 7,000 workers, et cetera. That's not in the offing right now. That's the update on Talegaon and Kalyan.
Thank you for that. One more question on Thane front, you had previously guided that there would be some sort of commercial projects also coming up. Could you share an update on that?
Yeah. We have this, you know, Birla Taranya, which is land bought from Hindalco, and we have a 50% investment from IFC. We launched a very successful residential first phase launch. We also have an aspiration to build a commercial portfolio there of about INR 5 lakh. We are in the process of designing that. But it would be either fully leased out or maybe, you know, partly, you know, maybe one tower we may look at the strata sales for, you know, for, you know, faster cash flow and more demand and more, you know, frontal sales. We are in the process of finalizing that. Once we get a clear picture on that ourselves as a team, then we'll be happy to disclose that.
Definitely there are plans to create at least about 5 lakh sq ft of commercial.
In Thane?
Yes. In Birla Taranya. Yeah.
Okay. Thank you so much, sir. See you.
Thank you.
Thank you. The next question is from the line of Varun Julasaria from 360 ONE Capital. Please go ahead.
Yeah. Hi, sir. Sir, first of all, could you just update us on the cash from the ITC deal? When is it expected or, what are the current status on that?
Sure. The ITC transaction, the discussions with ITC are progressing well. As you are aware, we received a key regulatory approval, which is the Competition Commission of India. That application was made by ITC, and government granted that approval. Now, certain state- level approvals are pending, and we expect to conclude the transaction in this quarter. It's moving, progressing well, and our estimation and expectation is that it should get completed in this quarter.
Okay. Sir, on the construction spend, sir, how is it looking like for the FY 2027, and how much CapEx do we plan to spend on the BDs this year, sir?
From a CapEx point of view, construction spend this year in 27 should be close to INR 1,000 crores. I'm sorry.
Yeah.
There is a-
Method.
Yeah. Yeah. The construction spend, this year, pure construction spend, would be around INR 1,000 crores. As regards CapEx for land acquisition, we have a very strong cash flow and cash balance. Our operating cash flow is positive. We have almost INR 1,000 crores of mutual fund balances at a consol level, and we also have almost INR 1,300 crores of cash and RERA balances. From a CapEx point of view, we have the adequate cash to make acquisitions. Further, we also have demonstrated partnerships with leading global players. In case of any large acquisition, we have the ability to bring on partners as and when required for making CapEx or land acquisition.
For the construction spend, you mentioned INR 1,000 crore, right? Because this year we've done INR 31 crore.
See, INR 31 crore includes, you know, all expenses. It's the pure. I'm mentioning to you the pure construction spend because the project development outflow which we've shown, 3,131, includes, you know, operations expenses. That's around INR 920 crore for the current year. I stand corrected. For the FY 2027, it should be INR 1,200 crore. This also includes other items like, you know, approval costs, design costs, you know, any, you know, deposit paid for the deal which we announced recently. It's a combination of all of that. 3,131, which is there in the cash flow, that also includes Ind AS or accounting adjustment whereby for revenue share. That moat we have put in the cash flow. In that sense, last year we spent INR 924 crore on construction.
This year, we should be spending INR 1,200 odd crores for construction.
Okay. Sir, on the BD front, since this year we have not done any significant BD, sir, is it via, like, is it the IRR or the expectation that is not allowing us to approve the BD? Or is it, you know, the land title, or there is some other issue which is being holding up?
Hi, Varun. Yeah, no, it's a combination. The IRRs, of course, we look for healthy IRRs because, you know, this is a multi-year project. You know, multi situations come up, you know, cost escalations and all that. We provide for all of that in our business plans. We also look for a reasonable, you know, strong hurdle rate in terms of IRRs. For outright, we look at at least 16%, and if it is a JDA, upwards of 18%-19%. That's not really the hurdle, you know, because there are enough and more proposals coming. The only thing is that, you know, due diligence, we are very particular about what kind of risk we take. Some of them happen, some of them doesn't happen.
I think it always pays to be careful and prudent because, as I mentioned, the business goes through cycles, the business goes through different economic cycles also, and real estate sentiment cycles. We don't want to be caught, you know, hanging in any part of, you know, "Oh, this risk we didn't consider," and, you know, therefore, it will come and kind of, you know, bite us back and put us back by a few years. It has happened. It happens in real estate all the time. We have to be careful to the extent possible, while doing, while doing BD. That's not the real case.
See, what BD is not something which we can keep on saying every quarter we can do so much because it's an exploratory thing with so many risks up there. It's as I mentioned, if the right, you know, combination of risk and return comes at any particular point, it's possible that we may do multiple projects in a single quarter, or we may not do anything for a few quarters. I think that we have also demonstrated that this happened in the last two years for us. We are pretty confident, given our pipeline and the kind of projects we're pursuing, that we are, you know, we'll be very soon announcing of them. The timing we can't, of course, predict very accurately. It's all estimated.
It's very probable that, now that you know, we have swung from the other side of the pendulum, suddenly we may announce quite a few deals together. It's not lack of resources, you know, or lack of taking, you know, calculated risk. It is just the timing. You know, all of these things should come together. We are not really worried about that.
Okay. Just last question for this quarter.
Mr. Varun, I'm sorry to interrupt you, sir. I would request you to kindly rejoin for follow-up. Thank you so much. We will take the next question from the line of Biplab Debbarma from Emkay Global. Please go ahead.
Good morning, everyone. Sir,
Fine, Biplab.
Good morning. Sir, I don't see Trimaya, I don't see you have explained. I also don't see Arika or Mathura Road. Arika, I think there is one tower left, and you have sold everything. Excellent response, and congratulations on that. Just wondering what happened to Arika and what is the status of Mathura?
Hi, Biplab. Arika, I think, you know, of the towers, seven towers, we have sold now six towers, with almost, you know, 100% performance. I would really like to do something extraordinary on the last tower, and I would like to wait and, you know, time it better, you know, in a much more market. In that market, and I've explained it to you in the past also, there's absolutely no supply, and this project has come out so well, come out designed well.
To really do something extraordinary on this, I think, you know, we can improve our pricing, you know, considerably from what we have done today because the very unique positioning, that project has attained in that micro market, on the back of the Aditya Birla brand name. I just want to kind of, you know, maximize the returns for that.
Mathura Road?
Mathura Road, as you mentioned, in Delhi, we have been struggling with the approval thing. I think now we have found a way we can, you know, we are making progress there in getting approvals. I don't want to take a chance and, you know, declare that will happen this year, but I'm quite confident that will happen early next year.
Okay. My second question is on your, you know, beginning of last year, you gave some guidance of doing INR 15,000 crore, around that number in FY 2028. For that, we need to have enough GDP in our portfolio. Do you think this, I mean, I know you'll be doing a lot of business development this year. I'm really optimistic. Do you stick to that number, and would you be able to do enough BD to reach that number?
Biplab, I think, you know, yeah. You're very absolutely, you know, correct in saying that it's not just doing BD, but also the timing of BD is very critical in finding out which year, how much, you know, sales and booking will be done. Looking at this kind of trajectory that we're having today, it quite possible that 15,000 instead of FY 2028 may kind of slip over to FY 2029. There is a, you know, definitely possibility of that. Though we'll be trying our level best to, you know, do this, but I think it's quite likely that it may move up from FY 2028 to 2029, as, you know, precisely for the reasons that you mentioned.
Our attempt will be to continuously stack up our BD pipeline and to deliver on those.
Thank you, sir. Thank you. All the best.
Yeah.
Thank you. The next question is from the line of Pritesh Sheth from Axis Capital. Please go ahead.
Yeah.
I have two questions.
Yeah. Hi. The, couple of follows. First, if you can highlight the status of the commercial projects that we are planning in Worli, you know, Centurion Phase 2 and redevelopment of Century Bhavan.
Pritesh, our attempts are on to, you know, start these projects as quickly as possible. We are in the design stage, you know, planning the layout, et cetera. You know, it has to integrate with the rest of the planning location. We have already started doing that. We'll try our level best to actually start the construction from this year onwards. That's our attempt. Again, once... Sorry?
For both of them or just one each?
I would start with one of them at least, whichever goes obviously. We'll have to kind of plan our investments and who our partner is, et cetera. Whether we should take both of them together or we should plan one after the other. How should we stagger it? That is still under consideration. It also depends on how we get a, you know, a partner for our projects. But whether we get a partner or not, we'll definitely commence the construction this year.
Got it. Second question on the cash flows. We club, you know, the land spends, construction overheads in one line called project development cost. Maybe, Keyur, if you can help me with the split of this INR 3,100 crores that we have spent on project development cost. How much of it was for, you know, the land acquisition, how much was for pure construction and how much for overheads? That would be helpful.
Maybe we can take that because there are a lot of items; maybe we can take that offline, Pritesh. Okay.
Okay. No worries. Thank you. Yeah. That's it from my side. All the best.
Thank you, sir. The next question is from the line of Fenil Brahmbhatt from Choice Institutional Equities. Please go ahead.
Hey, good morning, everyone. I have some quick questions.
I'm sorry to interrupt you, sir. Sir, your voice is feeble. We can't hear you clearly.
Hello. Am I audible now?
Sir, please use your handset.
Yeah, I'm using my handset only.
Increase the volume at your end.
Hello. Am I audible now?
Yeah. Please raise. Yes.
Yeah. G ood morning, everyone. My first question is on this other expenditure, which you have reported for Q4 FY2026, that is around INR 152 crore. I just want to know what is the components of those other expenditure, and this is like one-off or, we can expect this in coming period.
We have a exceptional item in Q4 and overall for the full financial year. There is a share of loss which we have from the joint venture because the sales, marketing expenses, et cetera, are not to be inventorized. The other exceptional item is due to the labor code and, also, you know, a provision we have made for one of the joint ventures in the textile business, which we've had. That is the exceptional item. Both combined put together is around INR 39 crores, INR 37 crores.
Okay. Out of this INR 152 crore, you are saying INR 39 is the one-off related to labor code and the other, this paper and pulp business.
Okay.
The amounts are in millions.
152.
Okay. Okay.
Yes.
Yeah, also checking on this Khar development project. Have you signed DA for this project, or it's just under process?
No, Mr. Brahmbhatt. We have signed the DA.
Okay.
Yeah. We started the demolition process and all that.
Okay. The last question related to collections. Our collection dips in this quarter YoY, QoQ. Any specific reasons, like because of the delay in construction or getting approvals, or like we haven't had any delivery during this quarter? Can you highlight any specific reason behind this?
No. Our collections have been very strong for the financial year. In fact, we did almost INR 1,000 crore of collections in the Q4. They are slightly lower than last year because we had major launches in March. Our collections for the bookings which we have announced in March would come in Q1 of the coming year. As you are aware, we almost have a 97%-98% collection efficiency. Whatever bookings we have done, those collections would come in the Q1 of this year. The April collections also have been very strong. To that extent, that is the reason why there's a, you know, the way the collections pan out.
Okay, got it. Thanks. Thank you so much.
Thank you. The next question is from the line of Muralik rishnan from Sundaram Mutual Fund. Please go ahead.
Thanks for taking question. Just wanted to understand, so you are indicating that we are holding few towers, Arika and other towers. But whenever we launch a project, those are almost like getting sold out. What is our strategy, sales strategy, while, you know, for large projects? We are seeing that we are launching in phases also. Just wanted to understand the sales strategy. Yeah, thanks.
Hi, Muralik rishnan. See, the sales strategy, of course, you know, is, you know, we try to launch a certain number of towers, apartments, units, et cetera, depend creating a market assessment of that particular micro market, how much is the demand that can be absorbed, what kind of strong velocity can we command, and what kind of ticket sizes we can, you know, deliver or we can launch in that market which will get absorbed. If you launch too much, then you know, and you're not selling, then of course there will be a cash flow mismatch. Because construction has to be done even if you sell 1 sq ft .
We try to match, to the extent the best of our estimate, how much demand is the market having, and we should at least try to get about more than 50% of the product launched as sales. We try to hedge the, and manage the entire business plan cash flow by, you know, dividing the entire project into reasonable sizes or phases. If it is a large enough project. If it is not a large enough project, then we may do it in single phase. Also, depending on the which micro market it is. Now, our aim constantly in sales is to get as quickly cash positive or cash neutral as possible.
Once we have achieved that and we see that the project is now completely in cash positive area, is we'll try to maximize the margin, the EBITDA margins. IRRs return on capital, return on capital employed, is the first goal. To that extent, we go after velocity. Once we achieve that, then we look at also, you know, maximizing the EBITDA margins. That's largely which dictates our sales strategy.
Understood. Thanks. That was it.
Thank you. The next question is from the line of Chetan Sharma from Systematix Shares and Stocks Ltd. Please go ahead.
Am I audible?
Yes, Chetan.
Yes, please.
Yeah. Thanks for the opportunity, sir. My question is regarding the land bank. Okay. What's the land bank we are having now, and what's the expected GDV we can expect from that?
I think we have sort of, you know, delineated it in our presentation, the kind of, you know, land bank. We have about INR 70,000-INR 72,000 crores of GDV today. Of it about, how much is launched? About close to INR 30,000 crores. I think it's all laid out in our presentation.
INR 31,000 crores you've launched.
INR 31,000 we have launched. The balance is our land bank. Of this, you know, we have sold about 70%-75% of what we have launched.
Okay.
All the details are there in our, you know, presentation, investor presentations. You should check onto slide number 19.
Okay, sir. Thank you. That was from my end.
Thank you. The next question is from the line of Darshika Khemka from AV Fincorp. Please go ahead.
Hi. Thank you for the opportunity. I see that you have a BD pipeline of 60
Ma'am, I'm sorry. I'm sorry to interrupt you. Your voice is muffled. Can you please use your handset?
Yes, sure.
Ma'am, it's feeble. Can't hear you.
Sorry. Just a second.
Yeah, better now.
You have it now? Please proceed.
Yes.
Yeah.
I see that you have a BD potential, BD pipeline of INR 60,000 crore. Could you just throw some more light on this as to what part of this could get converted in this year? What projects are we looking at? Some more details on this.
See, at this juncture, this is confidential and not able to give more color on this. I wish that we can convert all of them. You know, that could be our attempt. Depending on how the due diligence progresses, you know, if the due diligence goes well, then, you know, perhaps we can grab all of that. Quite likely that, you know, we may do about a percentage of it. Now, how much percentage, I'm not in a position to disclose.
All right. Like no indicative number of what project are at this-
You can't. You really can't.
Probably nearing finalization.
Yeah, it's very difficult. It's very difficult to predict. Yeah, very difficult to predict, Darshika. Yeah.
All right. Also, I had a question. We were almost at like on the verge of closing a INR 10,000 crore worth of BD project. Any update on that? We don't seem to have converted that as well.
We are progressing. We are progressing. We are progressing on that. We're progressing.
I believe that is a part of the INR 60,000 crore pipeline that we're talking about.
Yes, it is. Of course it is. Of course it is, yeah.
All right. All right. That's it from me. Thank you.
Thank you.
Thank you. The next question is from the line of Dixit Doshi from Whitestone Financial Advisors Pvt Ltd . Please go ahead.
Thank you for the opportunity, sir. Sir, we've been invested in this company since last three, four years, and the one big reason is that our vision of becoming, you know, top three or top five real estate player in the country. When we see our business development pipeline, so all the projects that we launch, we get a very good response. We have created a very good product. Our sales team is fine. We are getting good response. When we see business development pipeline and we see our competitors' business development, what they do you still think we can become a number three or number five player in the country?
Our competitors are doing a BD of, say, INR 20,000 crore, INR 30,000 crore, INR 40,000 crore, and we have done just INR 1,600 crore last year. In terms of, you know, because until we do that, our sales pipeline will always remain lumpy.
I think it's a very good question, Dixit. One of the reasons I would strongly attribute to the outstanding success we had in our sales and launches is because of the way we choose our BD. If we had been casual about our BD selections, then I don't think we could have got such, you know, incredible success in our launches and the way we priced it, the kind of margins we are commanding. Having said that, of course, you know, there's no question that, you know, we have to improve our BD. We have to, you know, we are working on it. Again, as I mentioned in the past, that it's not absolutely possible to do BD in a systematic, quarterly basis.
Depending on the risk and the kind of proposals we get, the kind of rigor of due diligence we conduct, some of them fail, some of them fall through, some of them move ahead. As several factors which come together. Our attempt is there on that. I wouldn't really hesitate to compare ourselves with anybody else. Each one has their own risk profiles, approach, strategy, geographic market segments. Many variables are there. We are in a very particular, clear segmented markets, very clear positioning, with very clear strategy. In that segment, we are very clear how we are doing our BD, our approach is very clear. We'll go in that path, not get distracted by what competition is doing.
Be well aware that, you know, if there are any chinks in our armor, we would like to obviously, you know, buck up and not be defensive about it. We are also very sure that we would like to be the among the top real estate companies in India, but not just by size, but also by reputation. It has to go both together, reputation and size. Just by size is not something that we are going after. I hope I've been able to explain myself a little bit, Dixit.
Yeah. Sure, sir. Thank you.
Thanks.
Just two small questions. How many units we would have sold totally in Niyaara 2?
Niyaara Tower B, I think we have sold about net about 119 out of 148.
Okay. Regarding commercial projects, you mentioned something about the Worli and any other commercial projects on your mind?
We are looking outside also. We are looking outside of Worli also. We are having a strategy to really do premium commercial spaces across regions.
Okay.
Yeah.
That's it. Thank you.
Thank you, Dixit.
Thank you. The next question is from the line of Vedant Rane from Unifi Capital IMA. Please go ahead.
Hello, sir. Hi, sir. Good morning, and thank you for the opportunity. I would just like to ask one question on MMR. We have launched two projects here. As a percentage of booking, as a percentage of GDV, we can see that we are less than 50%. In other regions, that is NCR and Bengaluru, we have able to achieve greater than 95% of the GDV. Is there any specific reason for that, like demand or supply of, were the launches in the late, you know, late of March, at the end of March, and we can see in Q1 acceleration?
Hi, Vedant. I think you have asked the question and answered it yourself.
Yeah.
Precisely that, because we just launched at the far end of March. I'm hoping that the whole this thing will skew this year. This year, I think because of the, you know, Tower C launch and also a renewed focus on Birla Taranya in Thane and Boisar, Birla Mrida, I think we'll see a very strong skew in favor of Mumbai region, MMR region this year.
Okay, sir. Got it. Regarding the Pune market, what's the situation there? Like, there also I can see that it's around 35 odd percent of GDV.
Yeah. Pune is a steady market. It has its limitations also and strengths also. I think it's a good market to be there. There's steady demand. Not too much of a price rise, but because the very nature of, you know, the commercial and the demand in that market, and of course from, you know, spillover from Mumbai, and NRI demand, et cetera, I think it's a very good, strong market to be there. You know, we can't expect a Gurgaon happening there, but I think steady, strong velocity is what we expect there.
Okay, sir. Got it. Thank you so much, and all the best.
Thank you. The next question is from the line of Varun Julasaria from 360 ONE Capital. Please go ahead.
Yeah, thank you for the follow-up, sir.
Hello
This quarter, we offered quite a few, like payment plans. Just wanted to know how much of the proportion, like from INR 4,300 crore, how much was through these payment plans and how much was construction-linked plan?
See, largely almost, bulk of our proposals are all on construction link plan. Even if there is a payment link plan, largely we try to ensure that by the, by the time we finish the structure of the building, we try to get at least 60%, 65% of the money. Just barring here and there, depending on what that market trend is, very strong trend, depending on what, you know, the others are doing in that market, and strong demand from, you know, the market forces there, we may have to, at some point of time given some sort of flexibility in payment.
Again, the overall arching premise is a policy that we would like to collect at least 65% by the time we finish the structure of the building.
Sir, does this imply a bit of a slowdown in the velocity, you know, across the market? Or is it more to do with, you know, competitors, you know, offering it, and you also offering it?
If you look at our launches, we did about nine launches last year. A bulk of them came in the last quarter because of, you know, because of the, you know, the approval process. You look at our response has been outstanding. We have done 97%, 100% of launch sales. I really can't blame that there is a slowdown, not in any of our projects. We have been exceptionally well. Take it, Bangalore, Sustenance, take it, Gurgaon launches, take it, Thane, any of these markets you look at. I really can't point a finger to any of our launches; there has been a slowdown. That is not yet reflected in any of our launches.
Yeah, that's what we were thinking, you know, why this payment plans are offered when we are already clocking very high-
Payment plans are more market forces, and there has been this geopolitical development which happened in the last quarter. People are not able to really take money, get money quickly into the market. It was forced. You know, all these things happened in the last quarter. That's one reason why people found it really, you know, difficult. They're desperate to making bookings, but the cash flow liquidity was a huge problem because the developments and, you know, the war scenario in Middle East and all that. That generally impacted. That's why we had to do some extensions in that market. Otherwise, all of them have come back very strongly this quarter with their, you know, payment plans.
This is largely because of these recent developments.
Lastly, sir, on the construction material, are we seeing any issue in sourcing and how much cost in escalation we, you know, we factor in like given that almost everything has gone up?
Yeah. Because of, you know, oil prices and, you know, disruption in supply chain, there has been an impact on cost. Being very prudent planners, we have already taken it in our, you know, contingency measures, et cetera. As of now, we don't see any of them, but quite likely that if these situations continue, there could be an impact. We have been prudent enough to take, you know, reasonable contingencies and escalations in our business plans. If the current situation continues or deteriorates further, then of course there will be an impact.
Availability is not an issue, right? I mean, it's not stopping.
Availability is not an issue, but transportation, it's a bit of delay, has impacted slightly.
Okay, sir. That's it from me. Thank you.
Thank you. The next question is from the line of Sinclair from Lalkar Securities . Please go ahead.
Hello. I'm on audio.
Yes.
Can you be a little louder, please? Yeah.
Yeah.
Yeah, I can. Is this better?
Yeah, yeah. Good.
Yeah. I just wanted to know what is the potential for the senior living, for you all basically?
Yeah. I think senior living by itself is a huge, explosive market potential in India. Huge demand. As you all know, you know, India, the aspirational population is growing. They have become wealthy, comparatively much more wealthier than what they were in the past decade. They can afford a lot of things. They're looking for good convenience and luxury; there's a lot of people in India who can afford it. A huge part of it is, you know, people who have done well in life and, you know, many of them want independent living, luxury living, and a big part of it is in senior living. They are all looking for the same amount of comforts which they can afford, and they always also want to be independent. I think there's a massive market for it.
We have to find the right sizing and, you know, location for that. We see a huge opportunity in exploiting that. We are looking very, very aggressively in that market.
Okay, got it. Any idea what would be the revenue potential?
It's too early to predict at this point of time, but I'm sure it'll be very healthy and very strong.
Got it. Thank you.
Thank you. The next question is from the line of Muralik rishnan from Sundaram Mutual Fund. Please go ahead. Mr. Muralik rishnan, I have unmuted your line. Please proceed, sir. Sir, the participant has left the queue. We will move on to the next question from the line of Biplab Debbarma from Emkay Global. Please go ahead.
Thank you. Sir, just two small clarification. One is the commercial development in Worli. How many towers and total area? Is it 1.3 million sq ft ? What would be the estimated cost for CapEx cost to be incurred for this project?
I mean, I think we are looking at least about one single tower, roughly about INR 1.3 million, INR 1 million-1.3 million, yeah. We're in the process of designing that. Cost is too early at this point to estimate, Biplab. We'll have to come back to you on that. We are in the process of design, and then we, you know, we do all the MEP and structures and all that. It's very early stages at this point of time.
Entire 1.3, F1.
Yeah. It's one tower that we are looking at. It's in a range. It could be approximately about INR 1.3. It can, you know, vary a little bit here and there. Yeah.
Second question is on the your launch pipeline. In terms of GDV, it appears broadly similar to what you had in FY 2026 in terms of launches GDV. In FY 2027, pipeline also includes Niyaara, where the expected absorption may be relatively lower compared to, say, Arika, Trimaya or even Taranya. Considering these factors, I'm assuming these factors are correct. Considering these factors, it appears challenging to expect the presales in FY 2027 could be similar in the similar INR 8,000 crore or maybe slightly lower than FY 2026 levels. How do you see this assessment?
I don't want to comment on that because, as I said, it's very difficult to give a, you know, In other words, you're asking for, you know, guidance, which I can't at this point of time give you. I only know that we have so much of inventory here, and we have to do the best utilization of that.
Okay, sir. Thank you, sir.
No worries.
Thank you. Ladies and gentlemen, we will take that as the last question for today. I would now hand the conference over to the management for closing comments. Thank you, and over to you.
Thank you, everyone, for taking out time to attend today's call. We are very excited for the times to come and hope to come to you with lot of news in the next call. Thank you very much for an interest in our company. Thank you. See you soon.
Thank you, members of the management. On behalf of HDFC Securities, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.