Ladies and gentlemen, good day and welcome to the Prestige Estates Q2 FY 2026 Earnings Conference Call hosted by Axis Capital. As a reminder, all participant lines will be in a 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 a touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pritesh Sheth from Axis Capital. Thank you, and over to you, sir.
Thank you, Muskan. Good afternoon, everyone. On behalf of Axis Capital, I welcome the management and participants to the call. From the management of Prestige Estates, we have Mr. Irfan Razack, Chairman and Managing Director; Mr. Zayd Noaman, Executive Director; and Mr. Amit Mor, the Chief Financial Officer. I'll now hand over the call to the management for their initial remarks, and then we can open the floor for question and answer. Over to you, sir.
Hi, everybody. Actually, I'll ask Zayd to give his opening remarks. After that, we'll take Q&A.
Good afternoon, everyone, and thank you for joining us today. FY 2026 has begun on a very strong note for us, building on the momentum of the last few years. We've delivered yet another strong performance this quarter, both operationally and financially. Riding on the sustained demand across our key markets and a healthy pipeline of launches, we achieved a record-breaking sales of INR 18,143 crores in the first half of the financial year. That's a 157% year-on-year growth, surpassing our entire FY 2025 full-year sales in just six months. In Q2 alone, we clocked sales of INR 6,017 crores, up 50% year-on-year, with 4.42 million sq ft sold across 2,069 units. Average realizations continue to strengthen, with apartment prices rising 8% year-on-year to nearly INR 15,000 per sq ft, and floor realizations increasing 43% to INR 9,500 per sq ft.
Collections also remain very healthy at INR 4,213 crores in Q2, marking a 54% increase year-on-year, taking our half-yearly collections to INR 8,735 crores, a 55% growth compared to last year. Our performance continues to reflect a balanced geographic mix, with Bangalore, NCR, and Mumbai leading the way, together accounting for over 80% of sales this quarter. It's also worth noting that our NCR portfolio contributed a significant 45% of the half-yearly sales, reaffirming our success in scaling up outside our home markets. On the development front, we launched 3.87 million sq ft in Q2, with a GDV of nearly INR 4,000 crores, taking our half-yearly launch to 18.81 million sq ft, with a GDV of 17,500 crores. Some of the key launches included Mayflower at the Prestige City in Indirapuram; that's NCR. Plotted developments such as Autumn Leaves, Greenbrook, and Crystal Lawns in Bangalore.
We also achieved completions of almost 8 million sq ft in the first half, including large-format residential projects like Aspen Greens and Avalon Park at the Prestige City, Bangalore. This quarter also was a very special one for us, as we crossed the milestone of 200 million sq ft of completed development since inception. This is a very proud moment that reflects the scale, the consistency, and the legacy of our growth journey. On the business development side, we continue to build a strong pipeline for our future growth. During the quarter, we added five new residential projects, translating to a GDV of about INR 12,600 crores. This takes our total business development for the half-year to around INR 33,000 crores across Bangalore, Hyderabad, Mumbai, and Chennai, reinforcing the momentum of our expansion across our key micro markets.
We also entered into a leasehold agreement with BLR; that's Bangalore International Airport, for 14.2 acres of prime land for development of a world-class convention center with a luxury hotel, along with retail and office space near the airport. Turning to our financial performance, in Q2, our revenue stood at INR 2,698 crores, up 11% year-on-year. EBITDA grew 57% to INR 1,176 crores, with margins expanding to 43.6%. PAC nearly doubled, growing 95% year-on-year to INR 458 crores, with margins at around 17%. For the first half of the year, revenue was INR 5,166 crores, up 16%, and EBITDA rose 31% to INR 2,231 crores. PAC for the first half came in at INR 769 crores, up 42% year-on-year. Across our annuity portfolio, performance was steady. In offices, we saw gross leasing at 2.3 million sq ft during Q2, with portfolio occupancy at 93%. FY 2026 exit rentals projected at INR 820 crores.
In retail, our malls recorded a 10% increase in GTO, touching INR 623 crores, with footfalls of INR 4.8 million during the quarter and occupancy at a high 99%. Exit rentals for FY 2026 are expected at around INR 275 crores. Overall, it's been a period of strong growth, geographic diversification, and operational discipline. We continue to focus on executing well across our existing projects while preparing to launch a robust pipeline in the coming quarters. With this, I open the floor to your questions and suggestions.
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 touchtone telephone. If you wish to remove yourself from question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Akash Gupta from Nomura. Please go ahead.
Am I audible?
Yes.
Yeah, perfect. Hi, sir. Thank you for taking my question. Congrats on excellent performance. My first question is that, is there any update on the Prestige Hospitality IPO? What's the status there?
It's a work in progress, Akash. We are working with the bankers, and we are trying to see that the book is fully done. And hopefully, it should happen soon.
Okay. And my second question is on your pre-sales guidance. We have already achieved 70% of our guidance in the first half. And if I understand, your sustenance sales are already running at INR 30 billion-INR 35 billion per quarter. So just on sustenance sales, we'll achieve the guidance for this year. So is there any upside risk to the guidance? How are you thinking about FY 2026 pre-sales?
Yeah, I mean, we'll take it as it comes. You already answered it that my sustenance sales will give me another INR 6,500 crores for the next two quarters. So you've done the math. Then if you have some few launches which we are planning, it will obviously pick up the whole thing. Let's see how it goes. I don't want to either decrease or increase the guidance which I've given you earlier.
Okay. Sir, we have a GDV of new launches in our PPT that we have disclosed that it's roughly at INR 273 billion. How much of these launches are we planning in the second half? Are we planning this entire launch pipeline in the second half, or we are planning some percentage of this? Or what are key launches in the third quarter or fourth quarter?
Yeah, now, this is a function of getting the approvals and getting the way around. I believe that four projects can get launched this quarter itself, which is the Marigold Phase II. And then we've got Prestige City Fernvale as well as the Eaton Park, both in Prestige City Sarjapur. And then we have got in the Raint ree Park, the Evergreen component. So it will be Evergreen at Prestige Raint ree Park. That's also a fairly large GDV. So these three residential high-rise, and Marigold, of course, is a plotted development. I think this 3 + 1, 4 should be able to get launched in this quarter itself. There could be a slip in case there's any delay in approval. But all things are pointing out that we should be able to pull this off.
We do have in Hyderabad, we have the Golden Grove in Tellapur, which is a fairly large development, which is about 9 million sq ft. That's a function of approval. If it doesn't happen this quarter, it will certainly happen the following. We have also the Banjara Hills property. Finally, I think we'll get the approval, Charan, in a couple of days. If I'm able to get RERA, maybe we can launch that itself. That is called Prestige Rock Cliff. We won't launch that till we spruce up that whole place and get our things. It's all work in progress.
Got it. And my final question, sir, is on the BKC and Mahalaxmi assets. Any update on the leasing demand, or how is it panning out?
The leasing demand is actually very encouraging. In BKC, we have pre-leased over 1.6 million sq ft. And so also in Mahalaxmi, there's quite a good demand. Now, I have asked my team to go slow and not to commit anymore because let the asset get ready. Otherwise, it will be a whole lot of pressure. Of course, we like the pressure. I think BKC should be ready for customers to the occupiers to start fit out in the calendar year 2027. 2026, the project should get ready. And in 2027 calendar year, we should be able to give it for fit outs. And similarly, for the Mahalaxmi, we should be able to get the project up and running in the calendar year in 2028 or 2029 beginning. That's a high-rise, whereas BKC is not high-rise. It's only 19 floors.
And they're out of the ground fully, and I think work is going at a brisk pace.
Got it, sir. That's all the questions I have. Thank you so much for your time, sir.
You're welcome.
Thank you. The next question is from the line of Saurabh from JM Financial. Please go ahead.
Yep. Hi, I'm audible?
Very audible.
Yep. Thanks for the opportunity, and congrats on the very good set of numbers. I just wanted to check a couple of things. Firstly, on the lease agreement that you have done with the Bangalore authority, if you can share more details in terms of specifications for the development potential there, that would be helpful. And secondly, the lease agreement with Bangalore that we have done during the quarter.
Buy-in? Okay.
No, no.
It's a mixed development. Saurabh, do you have any other question? You finish then and answer.
Yeah. Again, secondly, again on the Hyderabad auction line, while you have outlined the residential portion in that project, how should one think about the development potential for retail and office?
Yeah. No, the first one, buy-in, is that going to be a mixed use? We've done that in a hospitality vertical because that needs more of hospitality, convention, and performance arts and culture. So it's going to have a centuries-old hotel. It's going to have a Marriott Marquis and a big, huge convention center, as well as support retail in terms of food and beverage and a bit of luxury retail. And leftover FSI will obviously be office. So that's how the overall master planning is in progress. We've got a foreign architect called SOM that is doing the design. So once the designs are ready, we'll be submitting for approval. Then you talked about Hyderabad, which we just recently purchased. Hyderabad, I think the development potential there is about 3 million + sq ft. Out of that, 1 million sq ft will be residential. 1/3 of it will be residential.
That is the entire of the total development. And the balance, 2 million sq ft, will be office. Of course, again, the same thing. We'll have some support retail in terms of food, beverage, and some support retail will be there part of the whole thing. And there will be some other stuff like city club and other things. So that's also work under progress for design. Yeah, we've got Omar as the architect. And we are pushing them hard to get us the design.
Sure. Thank you. Those were my questions. And just last, one more bit. Of the 24 million sq ft ongoing commercial project that we have, although we have done quite a good progress on leasing, just wanted to check how much of this 24 million sq ft is pre-leased so far?
Well, it's all work in progress. I think finally, by the time the product gets ready, we will be leased out. In fact, we are not leasing out everything in one go because then it will be quite a loss. So we are on the job. And I believe that there is a good traction, good demand. And once the product is ready, it will be leased.
Sure. Thank you. That's all. Those are my questions. Thank you.
Thank you. The next question is from the line of Parvez Qazi from Nuvama Group. Please go ahead.
Hi. Congratulations for a great set of numbers. A couple of questions from my side. First, I mean, you mentioned about the four project launches that you expect to happen in Q3. It would be great to hear your views on some of the project launches that you're targeting for Q4. And also, what is the status of approvals on those projects?
Parvez, I just mentioned that we are going to launch the Prestige Raintree Park Evergreen component and Prestige Fernvale, as well as Eaton Park, both in the Prestige City and Prestige Marigold plotted development. All of these will happen in this quarter. And the following quarter will be the Golden Grove. And we'll also have the Rock Cliff in Hyderabad. So this is a work in progress. This is how it will pan up. If one or two other approvals do come, we'll also put that in.
Sure. Secondly, our business development has been very strong in H1. I think we have already added projects with a GDV of about INR 33,000 odd crores. So what kind of, I mean, what's our philosophy in terms of quantum or BD that we want to target? Is there a fixed number that we want to achieve for FY 2026, 2027? Just wanted to get your views on that.
See, we want to definitely build up a robust pipeline. At the same time, we are not going to town picking up something which doesn't make business sense. It has to be viable. It has to appeal to the market, as well as it should also protect the bottom line of the company. You've seen our bottom line now of late. So we are very conscious that while we are doing what we are doing, it should also benefit the company. We are not only looking at cash flows or top line. We are looking at the bottom line too. And I think to that extent, whatever BD that is done, we shall protect not only our landowner or joint developer's interest, but we will also protect the company's interest. And yes, whenever a good opportunity does come, we will always explore it.
And lastly, your views on Jijamata project and what's the status there, and when can we see maybe some first launch there?
That's nice. Actually, Jijamata is a work in progress. See, now, all these days, we were saying work in progress to clean up the land. Now, fortunately, the land is totally clean. Now, my first focus is to build EWS, and we have to build almost 4,041 homes. And those will be the first focus. But however, once that is going on, we have engaged SOM as our architects for this. They have come up with several iterations. We've gone through many, many iterations on the overall business plan. And I think within maximum a month or so, we would have closed out the entire planning. And after that, it's just which process that happens, getting in the plans approved and everything else. I think even there, we should be able to go to market in about three to four quarters.
Sure. Thanks and all the best.
Thank you.
Thank you. The next question is from the line of Puneet Gulati from HSBC. Please go ahead.
Yeah. Thank you so much, and congratulations on great performance. On the leasing side in Mumbai, can you talk about what kind of rentals are you seeing currently for the area that you've leased?
It's all upwards of INR 400, Puneet.
Okay. Secondly, on the construction side, the spend has gone down a bit on a quarter-to-quarter basis. How should one think about the second half of the spend?
No, it's all work in progress. Sometimes you have a slightly the graph goes up. Sometimes it will, this thing stabilize. But I think it's a steady spend that will happen.
Just to add there, Puneet, in the first half, especially during the March quarter, most of the contractors, they read the bill, which gets paid off in the Q1. And the construction after that staples down. So for the entire year, we are estimating close to INR 7,500 crores-INR 8,000 crores on the residential business side.
Understood. That's very helpful. On the price growth side, are you still seeing price growth in the market, or do you see price goods slowing down a bit and the focus will be more to sell volumes than value?
No, no. There is value, of course. But the thing is, the price can't go on infinitely higher. We've reached certain peaks. And I believe my whole endeavor will be to make sure that the price doesn't go up more than this because then it's counterproductive. As long as the company's bottom line is properly protected, I wouldn't want the price to go up because then we are only shooting ourselves in the feet. The thing is, the demand will just drop. And affordability basically drops. And we can't afford that.
Understood. That's very helpful. That's all from my side. Thank you so much and all the best.
Thank you. The next question is from the line of Parikshit Kandpal from HDFC Securities. Please go ahead.
Yes, sir. Hi. Congratulations on a good quarter and a half here. So my first question, I need some data points. So out of the total INR 17,500 crores of new launches in first half, so what was the contribution to the pre-sales?
Amit?
Just hold on.
See, the thing is, while Amit gets the numbers, what happens is we are very low on the old inventory. So whatever we've launched only is what has given us the numbers. So it's basically all new launches only that have got us the numbers.
Wrong level. It's the wrong INR 11,000 crores.
Yeah. It's around INR 11,000 crores. So sustenance is running on an average of about INR 3,500 crores- INR 4,000 crores. So I think Irfanjan earlier told that INR 6,500 crores is what you're looking at in H2 without any major new launches. So is my understanding correct? Like INR 6,500 crores is what I think Irfan told earlier in H2?
That's where the inventory is. Whether I do a launch or not, that's what schedules we get there. So all the launches will be multiplier, which will be the plus-plus.
Yeah. So 10,000. So I think the launches which you highlighted is, I think GDV I calculated is around 10,000. So if we sell whatever percentage of that, that adds to that guidance of INR 25,000 crores, which takes you to a number of INR 30,000 crore + on pre-sales. Is that the right assumption?
I'm not giving any guidance on that.
Okay. So the question is not that. The main question is that this year we had sales of INR 8,300 crores coming in from NCR, which is largely your Indirap uram Project. So this doesn't seem to be—I mean, we don't have any major land banks for the next year to make up for this big boost we got this year. So how are you thinking on the business development side, especially on NCR, given that Noida has given such phenomenal numbers and we don't have any major land bank beyond under the two projects? So do you think that over the course of the next 12 months, we can add up new projects, new land bank there, and maybe supplement this sales which we had seen in this year?
No, no. See, BD is a work in progress. There are too many offers coming from all over the place. So I can't tell you on the call what are the things that are happening. But if we do close up, we have some very, very hot prospects. And if those are closed out—and because basically we are looking at not at deals, but we are also looking at what makes financial sense. I can't tie up property at optimistic levels and then market changes. We are caught in the wrong side. So I think, but there is a huge demand—I mean, huge opportunities that are there. And I believe NCR also, Noida, Gurgaon, all these are presenting us with many opportunities.
And I'm very, very sure within the next two quarters, there'll be a lot more things that will be tied up and that will come in for the next financial year.
Sure. This last question is the same thing for MMR. So MMR has given—I mean, I think the bold decision which you took during COVID and did a major expansion in Mumbai, which helped us a lot. Now, on the revenue side, we have significantly run down our inventory, except Jijamata. So all the projects have done relatively better than the market. So now, on the business development side, how does one look at MMR beyond the Jijamata Nagar project? What are the other projects? Or any other—I mean, what are the directionally how the business development one should look at here to supplement the sales we have seen in the last two, three years from the Mumbai region?
Yeah. Mumbai region, it has to be work in progress. And I'm very happy to say that we are almost on the verge of closing up something big in Thane. And then we are looking at other new Mumbai also, Navi Mumbai. And obviously, we've got within town itself many opportunities. But those are high-priced properties. But they'll still not give me volumes. They'll give me huge value. But then it is there. The opportunities are there.
And lastly, on the data centers with the announcements which we have done with the Maharashtra government, so what exactly are we trying to do? Are we going to build data centers, invest in data centers? So what exactly will be the business model here?
See, our thing is, we have land is now available. We've got the expertise to build the data center. And we would like to partner with someone who will be able to run the data center also. It's a great business. We are looking at it very seriously. And I believe it's a big opportunity that we are sitting on.
So this will be on a CapEx model?
It will be CapEx only. Ultimately, let's see now today, whatever we are doing, whether on retail malls, on office, or data centers, it will be more on CapEx and then taking it to a REIT in terms of exit.
Sure, sir. Thank you for answering my questions. I'll join back you for more. Thank you.
Thank you. The next question is from the line of Biplab Debba rma from Antique Stock Broking. Please go ahead.
Thank you. Good afternoon, everyone. Congratulations on the excellent performance. My first question is on the pre-sales. I won't be asking guidance. But, sir, just wondering, would you consider holding back some launches once you cross, say, INR 25,000 crore or INR 26,000 crore increases, INR 25,000 crore, INR 26,000 crore increases, and roll these new launches over to the next year?
No, I think that will not be really necessary. See, we believe in turning cash flows. And when the market is good, we would also like to see that the product comes in. And that will also give us the opportunity to do more in the next year and the next year. So it's counterproductive for me if I've got the approval, if I've got all of it, not to launch. If I believe the market is not good, then we have to wait and watch. But today, the market is good. Everything is going well. So why not hold back? I don't think we'll ever—we've never held back. And here also, we won't hold back.
Okay. That's great to know. And, sir, just that you have a CapEx to be in front of around INR 14,000 crore in commercial and retail. And I'm just wondering how to see it because in the event of a slowdown in the residential cycle, which doesn't look likely, but suppose it happens, how would this impact your CapEx spends? I mean, how do you intend to fund this INR 14,000 crore over the next three, four years? And what kind of pressure it would have on your balance sheet? So just if you could give us some color.
Wherever CapEx projects we are handling, we've done financial closes across the board. I don't see any sort of—what's that called?—pressure on us. Our overall thought process is to get these projects ready, lease them out, and finally do a REIT for both residential—I'm sorry, retail as for office. I think it will be turned back. Even our hospitality IPO is only annual. That even the hospitality will go off into a separate company, will have its own separate balance sheet. There's a proper plan for all this. Then finally, what will be left over will be the residential component. That will be churning all the time. If there is a slowdown in the residential, obviously, we'll have to also play it that way.
Sir, in the near term then, where do you see till this REIT happens or till these big projects come for leasing operation? Where do you see, say, next two, three years, this net debt? Because it continues to go up. I know debt-equity ratio is a comfortable level. Still, net debt going up. Where do you see net debt can go up in the next, say, two years or so?
Amit, you want to answer that?
Currently, our net debt is at 0.45. I think so it will remain within 0.5 levels because in the next couple of quarters, I think so we'll get our hospitality IPO done. Once that is done, as for the DRSP, what we have filed, the debt will be retired. So I would say in the next two, three years, the debt levels will be within 0.5 levels.
In absolute terms?
In maximum terms, we have not guided anything. But it should be around—net debt should be less than 12,000.
Okay. How much?
10,500.
It's down to 7,000 something. 7,300. It should not cross the threshold.
And I'm quite positive on this, sir. There's no sort of scare there.
Okay. Okay. Okay, sir. And all the best. I'm sure you'll cross INR 30,000 crore in pre-sales in this round.
I don't know. Wait for it.
Thank you, sir.
Thank you. The next question is from the line of Ms. Pritesh Sheth from Axis Capital. Please go ahead.
Yeah. Thanks for the opportunity. Just a couple of questions on the residential side. So we already have acquired INR 33,000 crore of GDV this year. And it's all sitting in the land bank right now. How much time it will take for us to bring that into the upcoming or forthcoming pipeline? And apart from this 250 acres, there is another 750 acres of land sitting in our balance sheet since quite some time. By what time? By when can we start launching these projects? Just trying to get clarity on our pipeline beyond INR 57,000 crore, which we have already disclosed as the upcoming pipeline. Yeah.
Yeah. I think I'll break up your question into three parts. One aspect is you spoke about the GDV of upcoming launches. Then you spoke about the land bank. When is that going to turn into projects? And the other one is the recent GDV of new acquisitions. I think each—I think it's on a case-by-case basis because it's multiple projects. But our whole intent is to convert them into projects as soon as possible. Each of them are in various stages. And we'll bring these quarter on quarter. I think some will shift into upcoming. Upcoming will become ongoing. And the land bank will become upcoming. I think within a period of 12 months- 18 months, you'll see a lot of changes in the land bank, especially. And of course, the upcoming launches that will reduce by quite a lot.
Because right now, as you see, Mr. Razack has already mentioned, outlined that Evergreen, Eaton Park, Marig old, Fernvale, Rock Cliff, all will get launched. Of course, you have a Goa project, which is Sea Scapes, which is already highlighted over here. This also should get launched, if not this quarter, the next quarter. Garden Trails in Mumbai has already been launched very recently, which is this current quarter. So these upcoming launches will shrink. And you will have new projects coming in from the land bank and the new acquisitions. So it's a continuous process.
Thailapur. Thailapur also, which is highlighted in the GDV of new acquisitions. This is also Mr. Razack spoke about. This is a project called Prestige Golden Grove. And this will also be launched in this or the next quarter.
So it's all work in progress.
Got it. Just to simply put it, I mean, whatever we have acquired, at least this year, monetizable within a year or so? Or some might take a little longer as well?
The target is to do it within 12 months.
Within 12 months. Okay. Okay. That's helpful. And second on the?
Sorry, a s far as we are concerned as a company, we like to turn land, which is raw material, into projects as quickly as possible. We don't like to sit on it. If I'm sitting on land, there'll be some trouble in that land, or there'll be some litigation on that land, which I need to sort out. But if it's clean and clear, the churn becomes almost immediately. So there's no sort of lag from the time we buy a land to bring it to the market. It's only a question of doing the design and then going in for approvals.
Got it. Got it. And second on the residential margins, I think I've noticed since last five, six quarters, our residential margins are ranging at 25%-30% on the reported basis.
We had earlier guided for around 23%-25% . Is there upside drift to that guidance? Or is it just the timing issue of certain high-margin projects getting recognized now, and hence it's looking temporarily higher? And this might not be the trend going ahead.
Going ahead also with these margins. Because earlier, the margins were a little subdued because we were incurring all the corporate overheads in the P&L. But because of competing contract, the revenues were not flowing in. Now, especially this financial year, the revenues have started flowing in for projects what we have launched in 2022. So you will see a margin what we have declared to continue in the future as well. So on a sustainable basis, I would say 28 %-30% you can expect margins on the residential segment.
Perfect. That's pretty helpful. That's it from my side. And all the best.
Thank you.
Thank you. The next question is from the line of Kunal Lakhan from CLSA. Please go ahead.
Yeah. Hi. Good evening. Thanks for taking my question. If, sir, I just wanted to understand if the impact of, say, these global layoffs or announcements trickling down on, say, our core markets like Bangalore and also maybe Hyderabad, both in terms of, say, leasing inquiry for office space or demand for that matter, as well as on the residential side, footfalls and inquiry. Have you seen any change in the trend in the recent months or recent quarters?
In fact, on the other side, you see, things are still pretty robust, even including leasing. Now, for instance, Prestige Skytech in the financial district, which is a 2.3 million sq ft asset, now that's almost fully leased. We've got about 300 or less than 300,000 sq ft left over to lease. And even that, there's a line of sight for leasing the balance also. So, I mean, people said there was oversupply, but I think a good asset, good location somehow gets taken up. So we have to wait and watch. But I think as of today, there's nothing for us to really get concerned about or bother about at the moment. On ground, things seem to be quite good.
Sure. Would you say that for the industry also or just for your assets?
I think, see, if the industry is doing well, we do well. It's just not that we are only doing well and the industry will not do well. That's not the way. It is okay if the industry does well. We do better because we have a slightly cutting edge over the others. But then we hope and pray that the atmosphere is good and the economy is good and things are robust. That's the only way. See, we have to hope for the best for everybody.
Sure. Thanks. And my second question is on the unrecognized revenue of, say, INR 60,000 crore or what are the gross margins or EBITDA margins that we expect to clock?
Kunal, that's what I was mentioning. It will be in the range of 28%-30% on whatever unrecognized revenue we should have a margin.
Okay. 28% on these. Of roughly about 30% of this should come as EBITDA in our P&L in the next two to three years?
60% will be over a period of four to five years.
Four to five years.
Yes. Yes.
Understood. All right. Thank you so much.
Thank you. The next question is from the line of Yash Gupta from Asit Koticha Family. Please go ahead.
Good afternoon, sir. Sir, in the Q1 con call, we have discussed the revenue recognition will be around INR 15,000 crores-INR 16,000 crores from the residential side of the business on the completion projective basis. So what's our current expectation from the H2?
In H2, we have some major completion, especially in TPC Sarjapur. So you will see a pickup happening. Already, we have reported INR 5,000 crores in the first half on the residential segment. And in the second half, it should be better. I think so. For the entire financial year, it should be around INR 11,000 crores-INR 12 crores, which is what the pre-sales we did in FY 2022.
So any particular reason for from INR 15,000 crores-INR 16,000 crores, or we should look at from the point of view of whatever pre-sales we have done four years ago that will be the revenue recognition?
It will be broadly what revenue we did four years back should be the revenue recognition currently. Plus, only difference will be plotted developments. Wherever we have plotted developments, you can say that the revenue recognition for that will happen within a period of four years.
Then the thing is we have about INR 60,000 crores worth of unrecognized revenue in the books. Unless we revert back to the percentage completion method, this INR 60,000 crores will get recognized only when the product gets ready.
Yes, sir. So my next question is on the same line, like some of the listed company in India are doing like they are going back to this partial revenue recognition method. So any thoughts on that?
No, no. See, it all depends on the auditor because it's a question of they say in Maharashtra RERA, the RERA doesn't allow a customer to cancel. So they say if you are doing work only in Maharashtra, we would have reverted back to the percentage completion method. And you are now doing some work in Maharashtra, some work in all other states. So in fact, they recommended that we sensitize our states also to amend it based on the Maharashtra because the Maharashtra RERA is based on the Central Act. They say in our Karnataka Act, there is a flaw that allows the customer to walk out if he wishes to. Whereas in the Maharashtra RERA, the customer is not allowed to walk out. Once he gets into the contract, he has to go through with it fully. So it's a question of how you view it.
But in fact, the auditors have even said in case you believe that you've got a lot of numbers coming in from Maharashtra, we'll do two types of accounting. But that's too confusing. So we'll wait and watch. Let's see how it goes.
Yes, sir. And sir, how's the demand going? How's the luxury demand going? And a lot of the projects what we have added in Q1 and Q2 looks like from the mid segment. So what's your view on the demand side from the mid segment or the luxury?
Demand so far for all segments is good. Now the question is how long will this demand sustain? How much more of these sort of high-priced products will have the sort of demand? It needs to be seen because according to me, I believe that high-priced luxury product, which is above that INR 50 crores, INR 75 crores, there's only one small amount of people that can afford it. So let us see. I mean, I wouldn't like to go too much on that huge luxury side. But then wherever there is a demand, we'll take it as it comes. So far, we've been very successful. And so far, we are very happy that we've been able to do it.
Okay. Sir, last question on this slide number 26. GDV of the new acquisition is only including residential projects. And any further detail on this Business Bay Mumbai?
Actually, we all forgot about Business Bay. If Business Bay does come in, that will be a fully for-sale commercial. But that will happen in the last quarter, I presume.
But which project? Can you just throw some light on it?
That's in Bandra. That's called the LIG. And that is offices for sale. And that will probably be one of the office buildings which the company would like to sell and not keep it for REIT. And that also will give us fairly decent revenue. But that's kept for the last quarter of the year.
And it's a partner with Southern Star or it's our outright awards?
Sir, it's a redevelopment project, sir. It's called LIG Housing. I have to do some redevelopment housing. So after we do the redevelopment of the housing, there are shares, the for-sale area. Instead of doing residential again and flooding the market, we are doing the offices, galas that you call it, for sale because it's just next to the new high court that's going to get built where the government has already got the plans, everything done. And I believe there's a huge potential for that.
Okay. Sure. Thank you very much, sir.
Thank you. The next question is from the line of Shubham Dasmani from Asit Koticha Family Office. Please go ahead.
Yeah. Am I audible?
Yes, sir.
Am I audible?
Yes, sir.
How much revenue have you worked from Aspen Greens and Avalon Park in Bangalore?
How much revenue we've locked in Bangalore?
And Aspen Greens for Q2 FY 2026?
We have for the entire half year, we have recognized revenue close to INR 1,000 crores for Avalon Park as well as Aspen Greens.
As that was the last question for the day, I would now hand the conference over to the management for the closing comments. Over to you, sir.
Thank you, everybody, for most insightful and most participative interaction. We've got a lot of good questions. I hope we've answered them all. However, Zayd, Amit, Kejra, and Mike are available anytime to clarify any further doubts that are there. The company and the team are all committed to outperform themselves, and they'll keep doing things which will obviously protect the cash flows as well as the bottom line of the company as we go along.
Thank you. On behalf of Axis Capital, that concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.