Ladies and gentlemen, good morning, and welcome to the Puravankara Limited Q4 FY 2026 earnings conference call hosted by Dolat Capital Market Private Limited. As a reminder, all participants online will remain in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal the operator by pressing star then zero on your touchtone cellphone. Please note that this conference is being recorded. I will now hand the conference over to Ms. Savita Singh from Dolat Capital Market Private Limited for opening remarks. Thank you, and over to you, Savita.
Thank you, Ryan. Good morning, everyone. I, Savita Singh on behalf of Dolat Capital, welcome you all for the Q4 earnings conference call of Puravankara Limited. I would like to welcome the management of Puravankara Limited and thank them for this opportunity. We have with us today Mr. Ashish Puravankara, Managing Director; Mallanna Sasalu, CEO of South; Mr. Rajat Rastogi, CEO, West and Commercial Assets; and Mr. Neeraj Gautam, CFO for the company. I can now hand over the call to Mr. Neeraj Gautam for the opening remarks. Over to you, sir.
Thank you, Savita. Thank you, Ryan. Good morning, everyone. I'm Neeraj Gautam, and I welcome you all to Puravankara Limited's earnings conference call to discuss the performance for the fourth quarter and year-end FY 2026. The financial results and this presentation impressively have been filed with the stock exchanges and are available on the company website as well. I would also like to thank Dolat Capital for hosting today's call. I will begin with a brief overview of the macroeconomic and sector environment, followed by the company's operational and financial performance for that quarter and year-ended FY 2026.
India's economy remained resilient during FY 2025-2026, with the real GDP growth estimated at 7.6%, reinforcing its position among the fastest-growing major economies globally. Growth was supported by a strong domestic demand, a stable policy environment, and continued investment activity. Looking ahead, the RBI has projected a GDP growth of 6.9% for FY 2026-2027, compared to 7.6% in FY 2025-2026, indicating a moderation from the current year's high base. This expected easing is largely due to global factors, including geopolitical transition in West Asia, which may lead to higher energy price, supply chain disruption, and increased raw goods cost.
Despite the external challenges, a strong domestic demand continues to support the overall growth outlook. On the residential real estate front, the market entered a phase of consolidation after a sustained period of strong growth during Q4 FY 2026. Housing sales across the top eight cities stood at approximately 84,800 units. Buyer preference continued to shift towards premium and higher-value housing, with homes priced above INR 10 million accounting for nearly 53% of overall residential sales, reflecting a sustained demand for larger and lifestyle-oriented developments.
On the commercial real estate side, India's office market maintained a strong momentum, recording its highest-ever quarterly leasing during Q4 FY 2026, with gross leasing activity reaching approximately 29.9 million square feet, representing a 6% year-on-year growth. Demand remained broadest across key markets and continued to be led by the global services centers, which accounted for nearly 48% of total leasing activity during the quarter. The continued preference for high-quality Grade A office assets, coupled with limited new supply, supported healthy occupancy levels and a stable rental growth across major office markets.
Overall, the outlook for the real estate sector remains positive, supported by strong macroeconomic fundamentals, improving infrastructure, favorable demographics, and continued institutional participation. Moving to our operational performance for the quarter and the financial year ended FY 2026. FY 2026 has been a landmark year for the company. We have delivered our highest-ever quarterly and annual sales performance, supported by strong launch momentum, healthy customer demand, and improved realization across key markets. During Q4 FY 2026, our pre-sales stood at INR 3,547 crore, registering a strong growth of 190% year-on-year and 151% sequentially.
The performance was driven by successful new launches and sustained traction across our existing portfolio. For the full year FY 2026, pre-sale reached to an all-time high of INR 7,407 crore, reflecting a robust year-on-year growth of 55%. Customer collections during Q4 FY 2026 stood at INR 1,213 crore, up 36% year-on-year. While FY 2026 collections reached to a record INR 4,258 crore, reflecting a growth of 15% year-on-year. This growth was supported by a steady construction progress, healthy conversion of sales into cash flows.
Sales volume during Q4 FY 2026 stood at 3.01 million square feet compared to 1.42 million square feet in Q4 FY 2025, reflecting a strong demand momentum during the quarter. Average realization also improved significantly by 37% year-on-year to INR 11,787/sq ft , driven by better pricing and improved product mix across markets. For the full year FY 2026, total sales volume stood at 7.25 million square feet, with average realization increased by 21% year-on-year to INR 10,213/sq ft , highlighting a sustained demand for premium and higher value offerings across the portfolio.
On the execution front, we handed over 1,301 homes aggregating to 1.67 million square feet during Q4 FY 2026. This took our cumulative handover for FY 2026 to 3,747 homes, aggregating 4.25 million square feet, demonstrating our continued focus on timely delivery, execution excellence, and customer satisfaction. Coming to financial performance for the quarter, total income grew to INR 1,541 crore in Q4 FY 2026, compared to INR 564 crore in the same period last year, reflecting a strong year-on-year growth of 173%, driven by higher home handover during the quarter.
For FY 2026, total income stood at INR 3,846 crore compared to INR 2,093 crore last year, reflecting 84% year-on-year increase. On the profitability front, we reported an EBITDA margin of 22% in Q4 FY 2026, reflecting a significant improvement in operational efficiency despite higher marketing yields. As a result of reported profit after tax of INR 111 crore for the quarter, compared to a loss of INR 88 crore similar quarter previous financial year. Coming to our debt. Our net debt stood at INR 2,321 crore as on March 31st, 2026, with a net debt equity ratio of 1.31x . During the quarter, the net debt declined by INR 160 crore.
Our current and bank balance as on March 31st, 2026 stood at INR 1,695 crore, indicating a strong liquidity profile and ensuring operational stability. Additionally, the cost of debt also declined quarter to 11.05%. Moving to the launches and business development. During the financial year, we have launched three new projects, Purva SilverSky , Purva Northern Lights, and Purva Estrella, and seven new phases of existing projects with a total developable area of 6.39 million square feet, of which approximately 3.39 million square feet came from new projects. On the business development front, FY 2026 was a strong year for us.
We added six new projects across key markets, including Mumbai and Bangalore. During the year, we added approximately over 12 million square feet of potential developable area with an estimated gross development value of around INR 15,200 crore, significantly strengthening our long-term growth pipeline. In Mumbai, we secured two redevelopment opportunities at Chembur and Malabar Hill. The Chembur project involves eight residential societies spread across nearly four acres, unlocking over 1.2 million square feet of developable area with an estimated GDV of around INR 2,100 crore.
The Malabar Hill project spans 1.43 acres and offers approximately 0.7 million square feet of developable potential with an estimated GDV of around INR 2,700 crore. In Bangalore, we continued to strengthen our presence across key micro markets through multiple business development acquisitions during the year. We recently added a land development project in Hennur Road with a saleable area of approximately 0.84 million squre feet with an estimated GDV of over INR 1,300 crore. We also added a joint development project in Balagere in East Bangalore with a development potential of around 0.85 million square feet for an estimated GDV of over INR 1,000 crore.
Along with 53.5 acres land parcel in Attibele having a development potential of approximately 6.4 million square feet and estimated GDV of around INR 4,800 crore. Earlier during the year, we had entered into a joint development agreement with KVN Property Holdings LLP in the Northern Bangalore near the airport with a developable potential of approximately 3.48 million square feet and an estimated GDV of INR 3,300 crore. We subsequently launched Purva Northern Lights during Q4, highlighting our strong execution capabilities and ability to quickly operationalize and monetize acquired business development opportunities.
Coming to the outlook for next financial year. Going forward, we remain positive on the momentum to long-term outlook of the residential real estate sector, supported by strong macroeconomic fundamentals, improving infrastructure, and sustained end-user demand, particularly in premium and well-located developments. While global uncertainties may continue to impact sentiment, underlying demand across key markets remain healthy. For FY 2026-2027, we would like to provide guidance for both sales performance and debt reduction. We are targeting a pre-sales value of approximately INR 11,200 crore for FY 2026-2027.
Of the total projected numbers, around 48% is expected to be driven by cement sales, with the remaining 52% anticipated to come from new project launches. On the balance sheet front, we are targeting a debt reduction of approximately INR 750 crore for FY 2026-2027, excluding any incremental borrowing that is taken for acquiring business development opportunities. Thank you for your patience. With this, we can open the call for questions. Thank you.
Thank you. Ladies and gentlemen, we will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Ladies and gentlemen, a reminder, if you wish to ask a question, please press star and one. We take the first question from the line of Deepak Purswani from Svan Investment Managers. Please go ahead.
Yeah. Hi. Congratulations for very good state of operating that we take. Strong guidance. Just wanted to check with you a couple of things. Firstly, if I were to look into slide number 18 for the planned project pipeline, if you can give the broader sense in terms of the key projects like Bandra, how we are placed in terms of the launch pipeline, and what will be the GDV of these projects as a whole, which we are looking to launch in the next year?
Hi. Good morning, everyone. My name is Rajat. The Bandra launch, as of now, the vacation notice is underway. Members are leaving. By the end of June, we hope that the members will vacate, after which we will demolish and start working on our launching timeline. I think we're looking at around Dussehra to Diwali as a launch period for us to launch. The second part of the question was on the GDV. The GDV of the assets right now is around INR 2,700 crore up for sale portion.
And for the entire launch pipeline of 14.85 million square feet inventory as a whole, would it be fair to say this would be somewhere close to INR 20,000 crore kind of inventory?
INR 22,547 crore to be precise.
Okay. Historically, if I were to look from the launch pipeline point of view, there has been some slippages in terms of launching the project. I do understand there has been some delay in the approval. Looking at the current progress of each launch pipeline, how confident are we that we will be launching these projects on time? Or how should we look into this pipeline from the next year perspective?
Yeah, you are right. Maybe the previous year that we had some launches which did not go through, and that's all the more reason why we are confident that this will go through. Because whatever reason that, whether the e-Khata or some of the changing parameters in the planning authority, and also creation of the Greater Bengaluru Authority, then the four or five divisions, which really took a toll. If you look at across Bangalore, even the entire sector in Bangalore is having difficulty in launching the projects.
Given that situation, now it's all mature and they're all in the last steps. Also now the question here is how to space them in such a way that the entire team and the resources and everything are deployed towards the successful launches of the project. We are reasonably confident, or I should say that most of the projects will go through to the launch.
Okay. Just on the second part of the business, just wanted to check it out from the cash flow point of view. We had a very strong sales momentum this time, especially in Q4. If I were to look here as a whole, I just wanted to get the sense, if I'm looking into the sales collection numbers on a year-on-year basis, it's just 15%, and on the quarter-on-quarter, relatively not seen significant growth. Especially if I were to look on the western side region collection, which we have given in the presentation, that seems to be more or less flattish since last three quarters. So if you can give a broader sense in terms of the collection, how should we see it from the next year perspective?
What happens is if you look at quarter-on-quarter sales, more than INR 3,000 crore sales has come in Q4. This comes largely because of the two big launches which we've done in the quarter, which is Northern Lights in Bangalore and Purva Estrella in Mumbai. Because these launches happened in the last quarter, hence collection will spill into the next financial year. That means the sales have been committed. The approval has been committed. All we have to convert this into the billing and collection, et c.
Hence, all the collection for all these sales, the sales which we feel has been done during the entire financial, about more than INR 7,000 crore. The collection will follow in the next financial year. Also we have given a guidance for INR 11,200 crore of sales for the next financial year. The collection from that sales also will come, hence the outlook is absolutely positive and there'll be a sustained growth in collection, which we are expecting for next financial year.
Can you please quantify the collection for the next year point of view? How should we see that as a number?
We have given guidance for sales and the debt reduction. Collection we have not given, but however, I will give you estimate offline. We connect and I will give you an estimate what kind of collection we are looking at.
It will be reasonable to expect that it is not going to be flattish and it is going to be in double digits. You will see that it is becoming better than what it is right now. It is a reasonable estimate and we do not have a proper perfect number to say that. Nevertheless, from the sales predictions that we have done, and also the sales that has happened in the previous year is INR 7,400 crore piece of sales that happened. It is reasonable to expect that with those big launches in the first year, that we collect almost 45%-50% of the whatever the sales that might have happened. So we should really augur well with our collections.
Okay. Just finally on the operating surplus after tax and interest. If I were to look into this year, this year we have done actually INR 270 crore versus INR 292 crore last year. On the collection part, we already had a discussion. Just wanted to check it out. Another component which has seen significant increase is interest expenses, which has increased to INR 600 crore. If you can give the sense, you do analyze it that next year. Debt will reduce?
One thing you have to look at is data business. If you look at business as on a going concern basis, that means the kind of inflow I am doing in the business, kind of outflow I am doing in the business, whether overall basis I am generating the surplus after meeting all my expenses or not. If you look at not only the last two financial years, but last four, five, more than five financial years, we have been generating continuously operating surplus. Now why it is this kind of number. But operating surplus is also a function of a kind of outflow I am doing. Today, as we have given a kind of launch pipeline.
Today, with the collection we are making, not only I am investing that money on completing the construction of existing projects, we are also investing this money for making the other projects ready for launches. Hence the money was getting required on a business development only. After this, all the business development expenses, after the meeting the launch expenses and construction also, and also paying all my interest, we are generating surplus.
That is how we should look at the cash flow. That is how we are looking at it. Interest, again, interest is a little bit has gone up because of that incremental debt which we have taken. Though this debt we have not taken for the business operation. This debt we have taken for the business development, yet we are servicing and paying off this debt instead out of the ongoing inflows and yet I am generating surplus. That is how you have to look at.
See, if I were to look, even if at the ground base level, which is somewhere close to INR 3,900 or INR 4,000, and if I were to look into the annual interest cost of INR 600+ crore, that seems to be at a 15% kind of interest also, right? How should we see this number on the absolute basis next year?
Deepak, we have to connect offline for this. What happens is this is taken over a period of time. Not that it can be overall and you calculate interest like this. Some of the processing fee also have to pay. Some amortization has to happen. I can give you the. If we connect a bit offline, I can give you the detailed working of how exactly I arrived there.
Okay. Finally, if you can just give the update on the commercial property portfolio. I think we have received the OC for Zentech this time. How should we see commercial portfolio shaping up over a period of time? Finally, on the possession point of view or delivery point of view, how should we see FY 2027 as a whole? If you can throw light on these two aspects, that would be really helpful.
Yeah. Deepak, on the commercial business, we have received OC for Aeroc ity. The leasing process for the asset is underway. We are getting very good inquiries right now. We are pretty hopeful that in this quarter we will start leasing in Aeroc ity. With regards to Zentech , we are expecting the OC to come any time this month. Right now, I think last year was a good year for Zentech. In fact, this year also we started leasing in Zentech. So that asset is also picking up really well. Overall last year we did almost 2.6 lakh square feet of sales and leasing in our commercial assets, and that number, I think, is going to substantially increase in this financial year.
Okay. What are the delivery guidelines for the next year, for FY 2027?
I think our two under-construction assets are both being delivered. I think we have a total of close to around 2 million odd square feet of assets which is delivered now. The other assets which are in the other stages of construction and planning, they are going to take some time for delivery.
And delivery guideline for the residential business as a whole for FY 2027, how should we look into it?
Deepak, we can give you the number offline.
Sure, no problem. Wish you all the best and congratulations.
Thank you.
Strong operating performance. Thank you.
Thank you. Ladies and gentlemen, a reminder. If you wish to ask a question, please press star and one. We take the next question from the line of Rupin Mathew, who is an individual investor. Please go ahead.
Hello? Am I audible?
Yes, you are audible. Please go ahead.
I just have a few questions. Where was the incremental debt used for?
Incremental debt has used for the business development. If you look at, we have also mentioned about what kind of business development we are doing next 12 months. If you go to our slide, business development, if you go to slide number 32, we have given a detail about six projects we have added of INR 15,200 crore of GDV, and that is where the incremental debt has been utilized. Partly the money would have also gone for the working capital for funding the launch expenses, et c. But substantial amount of incremental borrowing has used only and only for business development purpose.
Oh, okay. One more question was how much did the Lokhandwala project contribute for this quarter in pre-sales?
Lokhandwala has done slightly more than INR 800 odd crore of sales in quarter four.
Thank you. That is it from my side. Thank you.
Thank you. We take the next question from the line of Chintan Mehta from Puniska Family Office. Please go ahead.
Thanks for the opportunity, sir. Sir, congratulations on that. Sir, a query regarding on slide 35, on the cash flow provision. Total estimated surplus cash flow is INR 19,290 crore. To arrive at that number, what kind of GDVs we have included? And after this INR 19,000 crore of cash surplus, what kind of land we will remain with?
All three are different questions in itself. If you go to our slide number 25, how we arrive at these surpluses are we have the component of this is about INR 8,816 crore, which is coming from the surplus from all current ongoing projects where either we have launched or we are about to launch. If I reduce all my construction and project expenses, what kind of surplus we are estimating to generate. After that, we have two commercial assets. If we choose to come exit out of those assets, what kind of surplus are we going to generate? Which is INR 2,131 crore. Besides that, we have given a guidance for the new launch pipeline.
If I estimate a surplus from those new launches, that will come about another INR 8,343 crore, and thereby if adds up all three, the estimated surplus from current ongoing projects, commercial projects in the launch pipeline, it comes to INR 19,219 crore. Coming to the total kind of GDV we have taken, the launch pipeline GDV, we are talking about INR 22,000 odd crore. Ongoing project is not coming out of the GDV. The ongoing project is coming from the balance collection from sold or unsold units, which is remaining there, and then that is how it has been calculated. I hope I've clarified your question.
This surplus is a free cash flow because after all the expenses are there, right?
This cash flow, if we have to meet sales and marketing expenses out of it, we have to pay income tax out of it, and of course, there are. What are our debts sitting in our balances, that debt needs to be paid out of this collections surplus.
Understood. After this, how much land bank approximately will be left with?
Our current land asset is about 56.48 million square feet. Out of that, we have given a guidance of about 21 million square feet right now. So 56 million square feet - 21 million square feet is about 35 million square feet. Still land bank will remain with us.
After this INR 19,000 crore you are surplus generating?
Yes. If you refer to our slide number 15 of our investor presentation, there we have given detail of what kind of a land asset we have, and if I minus it from the launch guidance which we have given, this number will come.
Understand, sir. Last many times I was asking about any diversification apart from residential project and either some on initiation or some finding out. We have something on cards?
Commercial, as already we have commercial business already. Two commercial assets have been developed and as Rajat has mentioned, Hebbal is coming up, a new commercial business. Rest, I think both the CEOs are there. They can give some thoughts about it, that any new vertical we want to explore.
Sir, just to add to what we are doing on commercial, we are also slowly and steadily developing our retail portfolio. Like in Mumbai, in one of our projects in Thane, we have almost a 3 lakh square feet of retail portfolio that we are developing over there. Also, as a business strategy and expansion, we are looking at the growth verticals like data center and warehousing, where we are looking at right opportunities to enter. So from an overall business perspective, I think we are open to opportunities in terms of whether we get the requisite benchmark IRR rates, and then we will explore that. But right now, data center and warehousing and retail are the three areas that we are looking at opportunities.
Understand, sir. But any timeline you want to give, like two quarter or one year?
It all depends upon the right opportunity at the right time. We are open in the market. We are looking at meeting respective partners. But right now I think it's difficult to give any timeline. As I said, it's the right opportunity that we'll enter.
Okay. Sir, on Starworth front, what is the current order book size and any possibility we can separately start reporting with it?
Right now, Starworth is not a segment of Puravankara Limited business. However, financial statement of Starworth is currently separately published and uploaded on our website. It's not a listed company, hence I do not need to do the separate thing. But our website, we publish financial statement of Starworth. As of now, financial statement of Starworth up to FY 2025 is uploaded in a public level. FY 2026, after this financial result, we will publish the Starworth financial statement as far as publishing is concerned. Coming to the order book is concerned, Starworth today has an order book of more than INR 2,000 crore.
Okay, fantastic. Sir, last question from my side. Any geographical diversification we are looking on an east side, like West Bengal or Bihar. T He emerging real estate or a possible percentage HR again we are looking apart from southern belt?
We are looking at NCR as an expansion strategy for our business. I think our teams are there. Again, as I said, we are looking at right opportunities. We are looking primarily at the region of Delhi, Noida and Gurgaon to focus on right now.
Okay. Not a tier two towns or anything like kind of opportunities we are looking at?
Not as part of the strategy right now.
Okay. Thank you so much, sir. That is from my side. Congratulations on good quarter from there.
Thank you.
Thank you. We take the next question from the line of Arun Gangwani, who is our individual investor. Please go ahead.
Hello, am I audible?
Yes, you are.
Yeah. Sir, what is the update on Malabar project on the approval side, and what is the price per square feet we are looking in this project?
Malabar project, I think the DA that has been completed. I think we are yet to register it, which we are going to do it by next 45 odd days. Subsequently, we are going to apply for approvals. I think the approval timeline is between 9- 12 months. The pricing that we are looking at is around INR 115,000- INR 120,000 per carpet areas.
Okay. I have one more question. Also, given the ongoing geopolitical uncertainties, are you witnessing any change in customer behavior, particularly in delays in booking decisions from end users? How is the company managing the impact of rising construction costs? Do you expect any meaningful effect on project margins or demand moving forward?
Yeah, I think it's in two buckets that you asked the question. One is, how are the non-resident Indians or the buyers from outside, how they are behaving? Since we had a very successful launch quarter, previous quarter, we didn't find anything that is substantially different from what it is. In fact, we had a good sale from NRI market. As we go forward, yes, any such situation like a war is not something that is desirable and it will have the effect on people. But whether it is a positive or negative at this point of time, we couldn't say that because, yes, generally people want to invest from outside the country to India when there is distress outside the country.
Also, one thing that needs to be taken into consideration is the rupee depreciation. The rupee depreciation should encourage people to put more money into India, and coupled with uncertainty. At the same time, we have to also be mindful of people maybe having some uncertainties about their earning outside the country because of whatever is happening. So we're cautiously looking at it, and maybe in a couple of months that thing could be sorting out, I believe, and let us look at it. As part of the second part was the same as the construction cost.
At this point of time, yes, we are looking at some 6%-7% construction cost going up because of the diesel prices which went up recently. But with the kind of margins and all things that were already taken into consideration and the contingencies that have developed, at this point of time, we are not unduly concerned about it. But as we go forward again, in the next couple of months, we'll have to wait and watch how all these things unfold.
Okay, sir. Thank you for the opportunity.
Thank you.
Thank you. Participants, a reminder. If you wish to ask a question, please press star and one. We take the next question from the line of Manik Shah, who is an individual investor. Please go ahead.
Good morning. I just want to know what is the per square feet we are charging on the Northern Lights project, and what is the broader margin on such development we can expect? What is the contribution of this project in this quarter, like pre-sales contribution?
Northern Lights, we are at around INR 10,700 per square feet and above, is what is the average price realization is what we say. That's where we are at this point of time. Usually these kind of projects make in excess of 20%-21% gross profit margins are there in a project like this. Apart from that, the third question is that I think it contributed for INR 1,100-INR 1,200 crore for the quarter. Pre-sales number.
Okay. I also want to know, can you throw some light on the margins in the redevelopment projects as well as in Purva provident and the Purva Land project?
On the redevelopment projects, our strategy has been clear that we want to take opportunities which are close to around 30% margin, and that's what we're following. Even the recent launch that we did in Purva Estrella, I think our margins are close to 30% now. I think above 30%. Neeraj, want to talk?
Yeah. Purva Land, if you're referring to the plotted project, plotted project margins are 35% plus. All the plotted projects may be 35%-40%, we earn the gross profit margin in the product development projects.
Also, it depends on each project also. So there may be some projects where we go for joint development with a partner, then maybe our margins could be a little bit lower as well. So it is project to project specific. As Neeraj spoke, 30%-35% on land is possible, yes.
Got it. Thank you so much. Thank you.
Thank you.
Thank you. We take the next question from the line of Harsh Pathak from Motilal Oswal Financial Services Limited. Please go ahead.
Yeah. Hi, good morning, and congratulations, Ashish and team, for the strong Q4 performance. Very encouraging to see the growth guidance as well as the outlook on debt reduction. My first question is on the growth guidance that we have given, and especially now that we are ramping up in Bangalore and Mumbai. Particularly to Bangalore, given this narrative on the demand impact due to AI. What kind of dynamics are you seeing on ground and what are the strategies you are adopting to counter that?
I don't see that in the residential development at least that we are seeing any kind of a large difference. Yes, if you look at what I call the frenzy a year back, that might have not been there, but it's a very realistic market. Bengaluru being very end user market. It's been the sales have been steady. You can also look at some our previous, the launch that what we had, we did extremely well and we sold around 30% of our projects. Also that now there are another three projects which are coming up, and we are studying the market, warming up the market, and we've got some encouraging results from there as well. Whether it is AI, I would actually look at it as a positive thing for any place which is technology-centric.
Simply because AI also requires work and implementation and everything else that goes along with that. With the kind of AI plus GCC, that is the combination, I expect the markets to be doing better, even better and even it is also kind of reflected in what's happening in the commercial offtake in the first quarter and what is happening in this quarter of the new year and also the last quarter of the last year. I believe that AI is a good thing to happen, and it will be good for all businesses which serve the people.
Sasalu, in the last one or two months, have you seen some difference in the footfalls or the conversion ratio that the projects that are ongoing? Any color on that?
As I said, that if you look at the last one year before, the frenzy which I spoke about may not be there, but it is a very steady market. I have not seen any decrease in the footfall. Maybe people sometimes take a little bit more time to decide, but we are quite comfortable with it, and most of the sales and the numbers are matching whatever the clients that we had to sell, quite comfortable.
Understood. I see the response at the Lokhandwala project was also very strong. So what kind of strategies we have adopted because we have seen there were players in the vicinity who have already been in the Mumbai market. What kind of strategies did we adopt to capture this market? And how do we intend to capture a higher sales velocity at the upcoming projects in Mumbai?
Honestly, I think our brand is playing a very key role in the overall numbers that we're achieving right now. Of course, not to say that we spend a lot of time in understanding the consumers, getting the right product in the market, and I think that's going to be our strategy for even the upcoming launches that we're going to be having in Mumbai. As a company, as a part of the process, it is a lot of time we spend on design. I think that is one of the big differentiating factor. We also spend a lot of time in identifying the asset that we want to enter.
Like for example, the Lokhandwala asset right next to the Lokhandwala market and Lokhandwala circle, I think itself was a big bonus point for us. Similarly, like the other launches like we're going to have is the Pali Hill or Breach Candy or even the Deonar Baug launch that we're going to have planning this year. The amount of effort that we're making at each and every checkpoint, asset, product, and the sales strategy, I think that is all coming up to resulting in these kind of numbers.
Understood, sir. In terms of our expansion in the Mumbai market, how are we looking at different micro markets, and what are the kind of projects under evaluation currently?
Harsh, I think as we've always said that we want to be catering to all parts of Mumbai. We've started from Dombivli and Thane to even the most expensive part of Mumbai in Cuffe Parade or even in Breach Candy. From a strategy point of view, I think that will continue to be our mantra in Mumbai's growth story. We want to be more in the western suburb. We also want to grow in the eastern side of the city. Also, we want to grow in the Mumbai 3.0. We will be technically in all parts of Mumbai and cater to entire consumer strata of Mumbai.
Understood. Rajat, on the portion on the commercial segment that you mentioned in one of the earlier questions. What is the kind of traction you said that you are getting an encouraging traction, but if you can quantify or maybe give some deeper color into that will be really helpful.
Oh, yeah. I think the traction is phenomenal. I think if you look at the Zentech asset, we're already almost 44% either leased or sold, and I think all the leasing is going to Grade A companies. I think from a traction, even I think when the OC is expected in next 15, 20 days' time. Even before the OC, we are around 45% leased and sold. Similarly, on the Aeroc ity, I think it's a large Grade A platinum-rated asset.
I think we are obviously talking to a lot of GCCs right now. We're talking to a lot, filling a lot of RFPs. In fact, the quantum RFPs that we put is on in excess of around a couple of million odd square feet. We are very hopeful that in next couple of quarters we'll be able to do couple of large deals in Aeroc ity, and the traction in Zentech is anyways going on. I think the momentum on the commercial business is also very positive.
That's really encouraging. Finally, on the data center bit that you mentioned earlier. What is the outlook there? How are we planning to enter this segment, and what is the broader roadmap to this?
Harsh, as you know that data center is a very micro-market-centric business. Mumbai is around 49% of the market, followed by Chennai. We are open to opportunities. We are talking to partners, but I cannot give any timeline in terms of when we will enter this business. If a right opportunity basis our benchmarks, IRR meets us, I think that's when we're going to enter this segment.
This will be, I believe, a broader leasing business, right? We won't be partnering with any data center operator or any such thing.
It will be purely on the leasing side.
Understood. Sure. From my side then, again, many congratulations for the performance and the encouraging guidance.
Thank you.
Thank you. We take the next question from the line of Dhananjay Mishra from Centrum Broking. Please go ahead.
Yeah. Hello, sir. Am I audible?
Yes, you are.
So congrats on very strong operating performance and very encouraging guidance as well. Just a bookkeeping question with respect to data, which is not including NCD of INR 1,400 crore. In P&L, whatever interest we are providing of INR 650 crore. Are you also considering interest to be payable on NCD in that INR 650 crore?
Yes, of course. Because of the accounting norm and borrowing standards, that is a fair available debt or even if a debt which we have taken, which is a performance or function of the project also, but on a fair value accounting perspective, I have to calculate the cost, fair value cost of that instrument, and we have to charge to the P&L. That is accounting regulation.
But we are not paying interest.
We are not paying interest. Because for example, I can give you that if I have taken money which are equity in nature, where my repayment is a function of the performance of the project because the servicing and the repayment has been linked with the performance of the project. So essentially, if I take it, if by any chance, I am sure all our project will do well, but by any chance, project doesn't do well, then my cost of debt, even for even debt, will come down. But for the overall fair value accounting perspective, today we have to treat as if this debt continued and taken arms and basis what could have been the cost on that basis, we have to charge to the P&L, and that has been done.
I mean, interest cost or coupon rate, whatever you say, that will be higher than 11% of the overall book, right? On the NCD.
Of course, fair value will be more of that particular instrument, not my overall book is at 11.05%. However, that particular instrument against which we have raised money to buy a land, that particular cost will be more. Again, as I said, the cost of more or less would be the function of the performance of the project.
Okay.
But today it is higher than 11.05%.
Okay. So INR 750 crore reduction plan we have, that is on net debt of INR 2,300 crore, not the gross debt, right?
It is the same thing. Net debt is after reducing cash and bank balances. If my gross debt reduced by INR 750 crore, the same amount will be reduced for the net debt as well.
I mean, if we use our cash to reduce our gross debt, so net debt will be same, no?
No, it will not be. Cash is not that. My scheduled repayment is about INR 800 crore. This financially, INR 836 crore. So whatever selling then my debt will be reduced by INR 836 crore. Besides that, I will be also doing some excess collection, and then some loan repayment happen through the SI itself. So those repayment will happen from project level itself. As far as cash and cash equivalents concerned, it has multiple uses. If some cash is sitting in the reserve account which we need for how many projects, if still after meeting all my project costs, servicing all the interest, if there any surplus in a certain, you can mark debt as well.
Okay. So INR 750 crore reduction plan on gross debt, right? Okay. Thank you.
Thank you. Participants who wish to ask a question, please press star one. We take the next question from the line of Rohan Joshi, an individual investor. Please go ahead.
Hi, sir. Firstly, I would like to thank you, congratulate you on a great set of numbers. Sir, you have done really well in FY 2026 in terms of pre-sales and collection. I know we usually don't give such forward-looking guidance, but can we expect such growth going forward and what will be the geographical spread to it and how it-
We have given guidance this financial year. In my opening remarks, we have mentioned that next financial year, we are targeting a sales of INR 11,200 crore as a company, as a whole. Out of that, about INR 7,000 crore will come from the southern market and remaining sales we are expecting to come from the west in commercial business.
Okay, sir. And sir, I wanted to ask one more question that are we looking into the senior housing space? As we have seen many players from the north has entered into it. It has a bit of higher margins. So I just would like a comment on that.
Yeah. So basically because we are developing large townships kind of projects, right now some of the projects are in excess of 2 million and 3 million. There we have number of towers. Now we would like to look at it, explore the possibility of putting one or two towers into this senior living. At the same time, senior living has three different components.
That is, one is the real estate, the other one is the hospitality, the other one is the healthcare. Do we want to become the service providers ourselves is another question that we are just exploring internally. But being in there as real estate developers, I think that is a must for us as we go forward, as the population also will age and also the people who have the affordability are becoming older. I am sure that there is a great opportunity in this, and we will definitely participate.
Okay, sir. No other. Thank you.
Thank you. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for their closing comments.
Thank you, everybody, for joining this conference call. I hope myself and my colleagues have been able to answer all your questions. For any further questions, you reach out to us on our mail ID, which is provided in the press presentation. We will be happy to give you information and explanation. Thank you very much once again.
Thank you. On behalf of Dolat Capital Market Private Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your line.