Ladies and gentlemen, good day and welcome to Puravankara Limited Q3 and nine months FY 2026 conference call hosted by Emkay Global Financial Services Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harsh Pathak from Emkay Global Financial Services. Thank you, and over to you, sir.
Yeah. Thanks, Rudra. Good morning, everyone. 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, Mr. Mallanna Sasalu, Chief Executive Officer, South, Mr. Rajat Rastogi, Chief Executive Officer, West and Commercial Assets, and Mr. Neeraj Gautam, Chief Financial Officer. I shall now hand over the call to them for the opening remarks. Over to you, gentlemen.
Thank you, Harsh. Good morning, everyone. I'm Neeraj Gautam, CFO of Puravankara Limited, and I welcome you all to Puravankara Limited's earnings conference call to discuss the performance for the third quarter and nine months ended FY 2026. The financial results, investor presentation, and press release have been filed with the stock exchanges and it's available for your reference. I will begin with a brief overview of the macroeconomic and sector environment, followed by the company's operational and financial performance for the third quarter and nine months ended FY 2026. India's macroeconomic environment continues to remain resilient despite ongoing global uncertainties, supported by strong domestic consumption, sustained government capital expenditures, and a stable policy framework. India remains one of the fastest-growing major economies globally.
Referencing the strength, the Reserve Bank of India has revised its FY 2026 GDP growth estimate upward to 7.4% from its earlier estimate of 6.5%, supported by robust economic momentum, including a strong GDP growth of 8.2% in Q2 FY 2026, and easing inflationary pressures. On the residential real estate front, end user demand continues to remain resilient, aided by interest rate cuts and income stability. While aggregate housing sales across the top eight cities moderated marginally on a year-on-year basis, underlying market fundamentals remain stable. Buyer preferences continue to shift towards mid and premium segments, with homes pricing above INR 10 million accounting for approximately 50% of total [residential] sales, highlighting sustained demand for the largest and high-value homes. On the commercial real estate side, India's office market maintained a strong momentum.
Gross leasing during calendar year 2025 reached 56.4 million square feet, representing a 20% year-on-year increase and marking a new all-time high. Global capability centers remain the primary demand driver, accounting for nearly 38% of total office absorption, supported by a continued expansion in multinational occupiers and a preference high-quality Grade A office assets amid limited new supply. Overall, the sector outlook remains positive, supported by strong macro fundamentals, declining interest rates, and improving affordability. Moving to the company's operational performance for the quarter. During Q3 FY 2026, we recorded a pre-sales of INR 1,414 crore, registering a 17% year-on-year growth, largely driven by sustainable sales across the key markets.
On the collection front, we delivered our highest-ever quarterly collection of INR 1,140 crore, representing a 22% year-on-year growth, supported by a steady construction progress and strong customer traction. Sales volume during the quarter stood at 1.49 million square feet, while average realizations improved by 12% year-on-year to INR 9,500 per square foot, reflecting a strong pricing momentum across the portfolios. For the nine months ended FY 2026, pre-sales stood at INR 3,859 crore, up 9% year-on-year, while collections amounted to INR 3,045 crore, marking an 8% year-on-year growth. Sales volume for the nine-month period aggregated 4.24 million square feet.
On the execution front, during the quarter, we handed over 1.23 million square feet comprising of 1,116 homes. This took our cumulative handover for the nine months ended FY 2026 to 2.58 million square feet across 2,446 homes, underscoring our continued focus on timely delivery and risk-free project execution. Coming to our financial performance. Total income grew to INR 1,104 crore in Q3 FY 2026 compared to INR 334 crore in the same period last year, reflecting a strong year-on-year growth of 230% driven by higher turnovers during the quarter. For the nine-month period, revenue stood at INR 2,305 crore compared to INR 1,529 crore last year, reflecting a 51% year-on-year increase.
On the profitability front, we reported an EBITDA margin of 23% in Q3 FY 2026 compared to 10% in Q3 FY 2025, reflecting a significant improvement in operational efficiency, better cost control, operating leverage. As a result, we reported a profit after tax of INR 58 crore for the quarter, compared to a loss of INR 94 crore in the Q3 FY 2025. Coming to our debt position. Our net debt stood at approximately INR 2,482 crore as of 31st December 2025, with a net debt-to-equity ratio of 1.47x . During the quarter, gross debt reduced by INR 35 crore while net debt declined by INR 244 crore, reflecting effective debt management. Our cash and bank balance as at 31st December 2025 stood at INR 1,082 crore, indicating a strong liquidity profile and ensuring operational stability.
Additionally, the cost of debt declined further to 11.08% from 11.32% in September 2025. Now moving to launches and business development. During the Q3 FY 2026, the company launched Purva Silversky in Bengaluru with a total saleable area of approximately 0.77 million square feet . Cumulatively, launches during the nine months ended FY 2026 stood at 2.83 million square feet, including new phases launches across existing projects. On the business development front, during the nine-month period, we added five new projects, including two projects in Mumbai and three projects in Bengaluru. In total, we added 12.76 million square feet of potential development area with an estimated gross development value of approximately INR 13,900 crore. In Mumbai, we secured redevelopment projects in Chembur and Malabar Hills.
The Chembur redevelopment involves eight residential societies spanning 3.78 acres with approximately 1.2 million square feet of developable area and an estimated gross development value of INR 2,100 crore. The Malabar Hills project covers 1.43 acres, offering around 0.7 million square feet with an estimated gross development value of INR 2,700 crore. In Bengaluru, key additions include 53.5 acres land acquisition in Attibele, contributing approximately 6.41 million square feet with an estimated gross development value of INR 4,800 crore. A joint venture in North Bengaluru with KVN Property Holdings LLP , spanning 24.59 acres and about 3.48 million square feet with an estimated gross development value of INR 3,300 crore located near the airport. A joint development in East Bengaluru at Balagere covering 5.5 acres land parcel with around 0.85 million square feet and estimated gross development value of INR 1,000 crore.
Collectively, these additions significantly strengthen our long-term growth pipeline and enhance geographic diversification across key markets. Going forward, we remain continuously optimistic on sector outlook. The combination of a strong macroeconomic environment, declining interest rates, and sustained end-user demand continues to support residential real estate. We remain focused on project launches, accelerating construction activities, and maintaining healthy connections. We are committed to optimize cost, enhance efficiency and driving shareholder return. Thank you for listening to us. With this, we can now open the call for the questions.
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 touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Deepak Purswani from Svan Investment. Please go ahead.
Yeah. Hi. Good morning to the team, and congratulations for a very good set of deliveries turning into profitability this time. Firstly, wanted to get the sense on the launch pipeline in Mumbai for the Q4 FY 2026. I think Lokhandwala project is already launched at this point of time. Firstly, if you can give the sense on that, and then if you can also update about what are the launch pipeline. How should we see other project launch pipeline in the Mumbai at this point of time?
I request Mr. Rajat to take this question.
Hi. Good morning. Rajat here. From a launch perspective, we have already received RERA for our Andheri project, and we are looking forward to launch it in the coming week. Andheri, Lokhandwala will definitely happen in the month of February. For our Thane launch which is the two towers, we are in the final stages of securing the approvals, and we are very positive that we should be able to launch it in quarter four, maybe end of February or the first week of March. Our approvals have already secured IOD for our Pali Hill project. Vacation notice has already been sent to the society. We are looking forward to launch it by end of March or in April.
Similarly, for our Miami By Puravankara project, we are in the advanced stages of getting the approval, hoping to get it by end of February, and then subsequently we will issue a vacation notice. We are hoping that in quarter one of the coming financial year, we should be able to launch our Breach Candy project with Miami By Puravankara . Rest all the projects are in the various stages of either approvals or documentation, and the work is going on.
Okay. If you can also share the medium-term perspective for Mumbai as a market. How should we see this entire region from the organization as a whole, given the launch pipeline? And what is the kind of potential we would look to explore from this particular western region as a whole?
We remain quite bullish in terms of our progress in the western market, both in Bombay and Pune, where we have projects going on. Not only that we have been acquiring projects, we are also raising strong sales momentum in both these markets. Our Andheri launch so far, response that we have got from the market has been very encouraging. We are hoping that we will have a very good launch. Similarly, our response so far in Thane market, where we are now looking at the two towers that we are going to be launching, has already been good. We are experiencing a good premium sales that we are getting over there. From a market positioning point of view, I think Puravankara now, I think we are in a very strong position to deliver good numbers from the western region. Pune also continues to be a strong market for us.
We will try and add a couple of projects in Pune also in the coming financial year to strengthen our overall Pune layer in terms of the overall coverage that we have in the Pune market. Finally, trying to be in the western part of Pune. From overall company numbers, I think our numbers will continue to be healthy and grow from here.
The project which we mentioned about, I mean, Thane project, what would be the GDV which we would be launching in the month of March? And how should we see the sales response for this project?
We are coming with a new inventory of approximately INR 800 crore. As I said, so far I think the project has received very positive response from the micro market. I think by end of March, the numbers will strongly improve from there.
Okay. Now, coming to the southern region. Similarly, if you can also share the pipeline for the southern region. How should we see the key launches in Bangalore from the Q4 perspective and then from the medium-term perspective? If you can share the overall perspective on the southern region as well, please.
Yeah. Thank you very much. Mallanna here. As we have given the guidelines in our investment presentation that we had around 11 projects for launching. They are in various levels of approvals, and for sure there is going to be four projects that are going to be launched in this quarter. Namely, Hennur Road, and there is a project called Westend, and Kanakapura, and KIADB. The value of that would be approximately INR 4,700 crore, which is going to come to market within this quarter. We are trying to see if we can add a couple of more projects into it. As you know that [inaudible]
Hello. Hello. Hello.
Hello. Hello. Am I audible?
The management line has been reconnected. Please go ahead.
Yes. As I mentioned that four projects are going to be launched in this quarter. We may add a couple of more projects of the 11 projects that we actually listed in our investment presentation. It is all in line with the way we want the approvals or the launches to go. Maybe one or two projects may go into quarter one and quarter two the next year.
Okay. Sir, if I were to put into the perspective, I mean Q4, we would be looking somewhere close to INR 4,700 crore in Bangalore, and then Mumbai there would be the three project. Putting it all together, that should be roughly INR 2,000+ crore . All these are on track to get launched in Q4?
I believe so, yes.
Okay. So, sir, if I were to see from the overall perspective, looking at the current market environment, what is a typical kind of run rate we are believing we would be managed to sell it out during this time? Also from the medium-term perspective, if I were to look your sales trajectory, we had a very good run up in the last few years moving to the INR 5,900 crore, and then last year we were at INR 5,000 crore, and in this nine months INR [3,859] crore. If you can share your perspective from next two-, three- year perspective, how should we see this entire things and where we are planning to head up and what are our internal targets which we are looking in terms of the pre-sales looking at this launch pipeline?
Okay. It's a loaded question, so I'll try and answer this. If we really look at the pipeline and forgot the INR [3,859] crore are already been done and the pipeline that in generally we do around INR 1,100 crore-INR 1,200 crore from our sustenance, which means that when you add them together, we're already at INR 4,200 crore. It is anybody's guess what happens in the launches. Generally, we sell around 30%-40%, even if we sell around 25% in this launch of whatever the numbers that you just now rolled out and you can do the calculation. I think we should be in a number. But rather than putting a number to the whole thing that I'm giving you kind of a guidance as to where this may be heading towards.
Looking at the next two, three years with the business development that is going on and as you may be seeing that there is an announcement almost every couple of months once about our business development activity. We think that this run is going to continue stronger and stronger over the next one, two, three, four years, I believe.
Okay. Any broader targets or internal targets we have set up in terms of the pre-sale which we would be looking out from this launch pipeline along with the sustenances which we are looking it out?
As I said, it is around 25% that we should be able to sell of everything that we are going to be launching. From the launches itself, we should be getting around somewhere around INR 1,800 crore-INR 2,000 crore and add to that another INR 1,000 crore of sustenance. You have your number there. We should be doing better than what we initially thought about the year or also compared to the previous years.
Okay. Second part of the listing, if you can also give the broader sense in terms of the, definitely this time there has been a significant ramp-up in terms of the execution of the projects and delivery of the projects. If you can share your perspective, how should we see deliveries in Q4 as well and FY 2027 as a whole? What are the key projects which will flow in terms of the delivery schedule? If you can give a broader sense on that part as well, please.
Yeah, I think, rather than getting into the numbers itself, and as you might have seen that in the last couple of years, that our construction, the burn rate, has improved and that we are constantly spending more money on the construction side, which means that we are moving more towards completion. At least there are two to three projects which are going to be delivered probably a year before the dates that what we have promised to the customers. Also that we have given in our investor presentation as to what is our Q4 to the numbers that we are going to be delivering in terms of the handing over thing in Q3 FY 2026, that we are looking at almost 2.40 million square feet to be handed over and pending to be recognized in this unit is that these are 2,443 units.
We are moving faster and maybe that you will see even more brisker handing over in the coming years. That is next year and the year coming up.
Okay.
Just to add, we have a strong delivery pipeline for our—
Sorry to interrupt you, sir, but if you have a follow-up question, please rejoin the queue. Thank you.
Sure.
Our next question comes from the line of Vatsal Kothari from AlfAccurate Advisors. Please go ahead.
Hello, sir. Hi, a very good morning. Congratulations on a good set of numbers. I have a couple of questions, actually. I will just start off with a broader question in terms of just curious about the pricing strategy in the new projects for the upcoming launches in Mumbai specifically, and if you could be more specific with terms to the strategy in place for different micro markets. I think you have a number of launches coming in Q1 FY 2027 as well. Pricing strategy for the next couple of quarters, and then I can ask my next question with regards to Andheri project.
Hi, this is Rajat here. With regards to our pricing strategy in the west region, I think Puravankara by default has been a premium player. Whatever projects that we are doing, certainly also they are all at least 5%-10% higher than the micro market. Our strategy in the Andheri market as well as in the Thane market always be slightly not higher than what the local pricing is. I think with the kind of reception we are getting from the customers, I think people are willing to pay a premium to Puravankara's quality of product. I think from a strategy point of view, that is very clear. Also from a distribution point of view, for the launches, we are in almost all the micro markets in Mumbai, and we are trying to get deeper into each and every micro market.
That is going to be our strategy for the medium to long term. From there, I think we will pick up on the pricing part.
[crosstalk] Yeah, sorry. No, please carry on.
The thing that I want to emphasize is that there are micro markets and the quality of the land and the place where it is located and also the local economics actually drive what is the kind of pricing strategy that will happen. As larger as a company, the strategy is very simple, where we are among the crowd, then we got to be better than everybody else in terms of our pricing by 5%, 10%, 12%. There are certain micro locations that what we are doing at this point of time in Bangalore is to be really be going away from the competition itself. That is to place ourselves little far away from the competition by producing products which are standout products.
That is, you can always look at a micro market and say where everybody is selling at INR 13,000, and if differentiation means how do we move to INR 15,500 rather than being INR 250 or INR 300 more than the competition. That is the strategy. As we move forward, that is going to be consistent in our pricing strategy.
Sounds good. Thank you so much for that. My next question is specifically with regards to the Andheri project. Just a few layman questions in terms of the GDV and details of the rates and the prices at which we are planning to launch this. Secondly, when would the second phase of the project be launched? What are the timelines of the project? If you could just throw some color on that would be great.
Sure. The overall GDV of the project right now is around INR 1,550 crore. Right now what we are launching is close to around INR 850 crore worth of inventory. Pricing, frankly, we still have to reveal the pricing to the market, but I think as I said that the current micro market is hovering in a range of around INR 38,000- INR 40,000 and definitely I think at Puravankara we are looking at getting a slight premium in terms of the launch.
That is number one. In terms of the phase two launch, we are expecting it to happen by the end of quarter one or early quarter two.
Super.
Okay, next.
Any update on the Breach Candy project? Sorry, just one more.
Oh, yeah. I just updated that. We are in the advanced stages of getting the final approvals. In fact, most of the approvals have already been received. We are just waiting for getting the IOD from the respective authority, which should happen hopefully by end of February, and then the vacation notice. Hopefully, I think in quarter one, we should have a Miami By Puravankara launch as well.
Super. Fantastic. Thank you so much, and wishing you all the best.
Thank you.
Thank you. Our next question is a follow-up from Deepak Purswani from Svan Investment. Please go ahead.
Yeah. Thank you for the follow-up opportunity. Sir, just wanted to get the sense, if you can, now since we have gained the traction in terms of the project pipeline. Over the next 6- 12 months, there would be a lot of launches which are coming out. If you can share your perspective, how should we see this in terms of the cash flow? If you can also give broader sense for the debt, how should we see the debt level over the next 6- 12 months, and what are our internal targets? Consequent to it, if you can also share your perspective on the cash flow. Interest expenses, which are flowing into the cash flow statement. In nine months, they are currently at INR 450- odd crore. How should we see this number over the next 12 months?
Thank you, Deepak. If you are referring to my cash flow, please refer to slide number 26 on investor presentation. This quarter, we have done our total customer collections was INR 1,360 crore, and we have generated an operating surplus of INR 64 crore. As a nine-month basis, our operating surplus was INR 755 crore. If you look at our cash flow over a period of time, consistently, we are generating operating surplus. We have been meeting our interest obligation on quarter- on- quarter basis and all the, as an owner. Further, to understand on the context, we have also added, if you look at the last nine-month period, we have added 12.76 million square feet of business development, which is a potential of INR 13,900 crore. These investments in the new land parcels and new projects require capital investment.
Hence, to that extent, this needs to be financed from the external capital, and that is where we have borrowed debt. By and large, if you look at our debt, even if you look at just quarter-on-quarter basis, if I compare my debt, compare to immediate previous quarter, where gross debt has come down. My cash and cash equivalent is about INR 1,000 crore, and thereby my net debt is down by about more than INR 200 crore. So though we are continuously watching our debt, the cash flow and liquidity position, but at the same time, business development is key for the long-term success of the organization. Hence, we will be doing this business development, acquiring land parcels to receiving long-term shareholders value for the company. At the same time, we will be managing the debt, and we will see that debts are not going beyond acceptable limits.
Just rest assured, we are managing it well for the shareholders.
I think the only addition there to the cash flow would be, I think all the effort in the business development that has happened over the last, I think 12- 18 months to secure all these projects. Right? I think what we are planning is we are going to see a new launch almost between the west and the south, almost on a monthly basis. Right? So all these projects, the investment is already done. So now with the sales, you are going to see an exponential improvement in terms of cash flows, et cetera. So you are going to see the benefit of that.
Okay. Finally, sir, just wanted to reconfirm in terms of the launch pipeline, on the approval and everything now, everything is looking much better at the current juncture, and we are ready to launch a lot of projects. How should we see this? If you can give a broader sense on that part.
You are mostly right on that. Yeah, absolutely. Of course, approvals are a large set of variables, right? But give or take one or two months of the planned idea that we should be there, as we have projected.
Okay. Would it be fair to say over the next six to nine months, even in Bangalore as well, we will see a lot of launches coming out? Out of these 11 projects, which we have shown in the planned pipeline, most of them are lined up, yeah, in Q4 and Q1. We are almost on track for all the approvals for these projects?
The next six to nine months, and probably all these projects should have been launched. I think if it is beyond that—
Hello?
The line for the management has been dropped. Please stay connected as we rejoin them back to the call. The line for the management has been disconnected.
Hello.
Hello.
Hello.
Hello. Can you hear me? Hello.
I am here.
Yeah.
Please proceed, sir.
Sir, if you can give a broader sense in terms of the approval pipeline and launch traction, that would be really helpful, especially for Bangalore. Since there has been a lot of delays in the last 6- 12 months for the launches. If you can give the broader sense, how we are placed at the current juncture in terms of the approval pipeline as well as the launch pipeline, and how should we see over the next 6- 12 months for this planned project pipeline in Bangalore?
I think, till Mallanna comes back online. I think about six, eight months ago, there were a few changes that the authority had done in certain setback rules, et cetera, and therefore we had to sort of redraw the plans. That said, I think that is behind us. We should be almost hitting a 90% target in terms of the launches that we have identified in our investor presentation. Most of them are all, at least I think 60% would be in the final stages of approval, and the balance also should be secured as per the direction and the guidance that we have given in the presentation.
Okay. That's interesting and looking like we are well on track now in—
Yeah.
—accelerating the launches.
Yes.
Thank you, sir. Thanks for patiently answering all the questions, and wish you all the best, sir.
Thank you.
Thank you. Our next question comes from the line of Samarth Khandelwal from ICICI Direct. Please go ahead.
Thank you for the opportunity. My questions have been answered. Thank you.
Thank you. Our next question comes from the line of Jahnvi Shah from Share India Securities. Please go ahead.
Hello. Thank you for taking my question, and congratulations on the numbers. I had two questions, mainly one about the industry and other on the business. I wanted to know what is the split between the mature projects and the newly launched projects in the nine-month pre-sales for this financial year. That split, and the second question was basically, what is our outlook on the residential prices, price appreciation in the next couple of years? Will it be appreciating the way it did in the last couple of years, or will it be more on the moderate pace?
I think a significant contribution in the nine-month sales have been from the sustenance projects. In fact, we are ahead of our targets in terms of our annual operating plan. I think everyone knows, due to changes in the South in terms of bylaws, et cetera, the launches got sort of delayed. So all the sales, most of it that you see is from the sustenance. What was the second question?
Sorry.
In terms of pricing.
Yes, pricing.
In terms of pricing as well, I think we have been extremely strategic in terms of the various locations that we have secured in terms of new projects. If I give you an example, even in a city like Bombay, right? We have been extremely careful, so we are very well spread out. We have Thane, we have Lokhandwala. Almost at every price point, right, we have Breach Candy, we have Bandra. That is point number one. Point number two, even in Bandra, while there are so many projects that are going on, we have been careful in terms of size. I think ours will be one of the largest projects in the micro market of Bandra. What does that mean?
That means that in terms of the amenities, in terms of the lifestyle, in terms of the product, there is a clear USP for our project as against competition. It is very carefully and strategic acquisitions of projects. Similarly, even if you look at Bangalore, right, if you look at the locations.
Yes.
For example, what we are about to launch. These are very high- velocity micro markets. Let it may it be Bannerghatta Road, let it be, Hennur Road or, for that matter, Hardware Park. For example, we have one project which we are in advanced stages of completion in Hardware Park. Maybe if you track that project, we had almost sold out 85% of that project in the first eight months of the launch at a 10% higher APR than the micro market did. These are, I think, very strategically acquired projects. I am pretty confident even in terms of price appreciation because of those micro markets, should be pretty healthy year-on-year.
Okay. Sir, if I can ask one more question.
Sure.
Just on the business development. In the last nine months, we had a good BD. Next year, are we thinking along the same lines, or it will be more or less 10% right on that?
See, one basic thumb rule for business development is it has to sort of surpass your annual sales in terms of square footage. At least you need to replenish, if not more. For example, if your annual run rate is going to be 5 million square feet a year if you are going to sell, 5 million square feet-6 million square feet a year if you are going to sell, your basic business development will have to, in terms of growth year- on- year also, right? You need to create that pipeline of projects. You need to at least acquire 20%, 25% higher than that number to give you the headroom for growth. I think BD is a continuous process. We are always evaluating deals in the market, but extremely strategic.
Also as an internal strategy, we are very clear, and I think that is something that you would also track from acquisition to launch. Back in the day, it would take a really long time. Today, we are able to turn these projects around within six to eight months of acquisition, which means even in terms of acquiring new projects, we are very clear most of the land approvals should be in place in terms of, for example, conversion. We are not getting into projects where we acquire it and then we got to do certain land approvals or converting it from agri to non-agri, et cetera, which takes eight months, 10 months, or whatever. These are converted clear lands. The minute we acquire it, we immediately go into design and approvals, and as a strategy, we would like to take these to market six to eight months from acquisition.
Faster turnarounds.
Okay. Thank you so much. Thanks for answering.
Thank you. Our next question comes from the line of Harsh Pathak from Emkay Global Financial Services. Please go ahead.
Yeah, thanks for the opportunity. First of all, congratulations for the strong set of operation and financial performance. Ashish, my question is regarding the launch strategy. It is encouraging to see how we have brought the projects in the West market within one to two years of acquisition. What is our strategy around the Chembur project and the next phase of the Andheri and the Pali Hill projects? How are we thinking about those?
In terms of—
Yes. You are back online. Please go ahead.
Harsh, just to give you a perspective, first I will answer for the Andheri project. Andheri phase two, we are good to launch. We have all the basic approvals in place, be it MoEF, et cetera. We just need to load in FSI and launch it. We would probably look at launching it in the end of quarter one or beginning of quarter two. The Chembur project is moving good. We are in the final stages of securing the basic approvals at the site level, and then we will go for the formal approval for the project. I think we should be in a position of launching it in quarter three of the coming financial year. Malabar Hill also I think is on track.
I think we are working with the society to conclude the development agreement, which I think is 100% should be concluded the month of February, and then we go for the approval. Malabar Hill should happen between quarter three to quarter four of the coming financial year. From a project pipeline perspective, all the projects that we have signed for, they are all on track. I think they are all in obviously the various stages of planning and approvals. And we are looking at in next six to nine months, all these projects will be launched.
Sure. In terms of growth, how should we evaluate the coming financial year? Because I think for Q4, your launch pipeline looks very strong. How should we look at the next fiscal? What kind of growth shall we expect?
Ashish, you would like to answer that?
I can take that. Mallanna here. I think it's quite strong, right? Basically, if you look at that today, we are sitting at around INR 4,000 crore of sales, and the next quarter that we are launching close to around INR 6,000 crore of stock into the market, and we do sustenance of around INR 1,000 crore, INR 1,100 crore. You add the math, and even if we sell around 20%-25% on launch, even the conservative estimate says a good number. Rather than putting a number, this is the number that we are going to achieve. I'm just trying to give you a guidance on where it is going.
For the coming years, it's very clear from where we are, the remaining that what we have already given in the investor presentations about the launches that have deferred to the first quarter and the second quarter of next year. Also that you're hearing quite a bit from us about the deal closures. Those deal closures are already, as Rajat said, they're all in the different levels of designing and approvals and NOCs and so on and so forth. We seem to be in a good footing now, and rest is the future.
Harsh, just one more thing to add. I think also, all these projects that we are doing are large projects in nature, which obviously will be done in various phases. Once you get these basic approvals, all you have to do is to get the next tranche of approval is to get the FSI loaded. At least I'm talking about the West region. For example, Thane is a INR 4,000 crore project for us, and we are launching around INR 800 crore now, INR 300 crore that we have done in the past. I think Thane, you will see a lot of action happening continuously over the period of next few years because we will keep on getting new towers and new phases in that.
From a numbers perspective, I think there will be a lot of action happening because every project that we are trying to do is large in nature, will have a substantial in terms of sales velocity that is going to come. We are very positive on the overall thought process in the next 6- 12 months.
Sure. That is great. What is the update on the commercial projects, the Purva Zentech and Purva Aerocity?
The Purva Zentech project is doing really well. I think we have sold almost 127,000 sq ft. We have also leased to IKEA, which is close to 90,000 sq ft. That project is getting good momentum in the micro market. Happy to share that both these projects will get their occupation certificate by end of March. I think that is when I think we start handing over. Purva Aerocity also is getting a very good traction from global companies. GCC is doing lot of visits. We are hoping that we will be able to sign a good deal in the coming quarters.
Sure. Any maybe interest from the potential leases that we have already signed? If you can just highlight something around that.
You are referring to Purva Aerocity?
Yes.
Purva Aerocity, as I said, we have filled in a lot of RFPs, really marquee ones, big deals. Nothing concluded so far, but we are in the top one or two stage with a couple of large players. As I said, this is a long-driven process and we are expecting the OC to come by end of March. I think we should be able to conclude something in next quarter or so.
Sure. My last question is around the debt front. I think sequentially, there has been some decline in the debt number and Ashish rightly highlighted that the collections are going to significantly increase. How should we think about the debt number maybe in the next two to three years from the current levels?
If at the same time we have mentioned our debt schedule also, what are the kind of debt slated for repayment this coming financial year from now, from December onwards, if it targets 6- 12 months from hence, the scheduled repayment itself is INR 682 crore. Besides that, the projects where we have taken money and the collection happens and through SI and all the mechanism, it has been our experience that we always pay the loans ahead of schedule. So INR 682 crore in next 12 months, any which way we repay from the scheduled repayment and besides that, if collection goes up, I will be repaying the debt. As I mentioned, and also Mr. Ashish mentioned, and all of us mentioned that we are continuously monitoring the debt and wherever there is an opportunity, the collection it will immediately going for the repayment.
That will happen, but at the same time we will be looking at the business development, construction progress, and we will always be trying to keep the debt at optimum level, manageable level, and which creates the higher shareholders value on overall basis.
Sure. That is great. That is it from my side.
Thank you. Our next question comes from the line of Chintan Mehta from Puniska Family Office. Please go ahead.
Thanks for the opportunity, sir. I have just a question on the commercial part. What is the current lease rental income which you would see would end the square foot we own and the guidance for FY 2027 and FY 2028 and 2029? Thanks.
The current rental yields that we are expecting or rather the rentals that we are expecting right now in Purva Zentech is around INR 75 a square foot. Of course, the IKEA transaction that we have done is at INR 97.5 in the retail area. And for our Purva Aerocity project that we are expecting is somewhere in the range of around INR 60- INR 65.
So combining total at the end of quarter consolidated level, how much rental income we are going to earn on FY 2027 and FY 2028 and 2029?
The assets are coming for OC only by end of March, and that's when the rental is going to start. All these, both the assets of Purva Aerocity and Purva Zentech once fully leased, will fetch us a rental of close to around INR 200 crore annuity.
Okay. Do you have any other project which is in pipeline?
We have a project in Bangalore in Hebbal. I think we have not started construction. We are now putting for approval, so we should be start pouring concrete in the project by quarter two of the next financial year.
The second phase of Purva Aerocity.
And the second phase of Purva Aerocity. Yes.
Yeah.
Thank you.
Thank you. Our next question comes from the line of Rajiv Rupani, an individual investor. Please go ahead.
Yes, sir. My first question was, in our Mumbai redevelopment portfolio, our share is 2.67 million square feet. Could you please guide us what kind of revenue will this generate for the company as a whole, this full 2.67 million square feet?
See, all our redevelopment projects got fully launched. The total GDV value for all our projects put together is close to around INR 15,000 crore. That includes projects which are not even launched right now. This portfolio continues to grow because we are looking at marquee acquisitions in this arena. We are one of the most premium players or premier players rather in this segment. We will continue to be actively looking for opportunities in redevelopment portfolio. The ones that we have already signed, launched, and in the various stages of approvals are close to around INR 15,000 crore.
Okay. My next question was a follow-up question on the debt. Sir, year ending March 2020, our debt was about INR 2,700 crore, our interest cost about INR 340 crore. Now in nine months, September 2025, our debt is about INR 4,500 crore and the interest cost is about INR 495 crore. I was just seeing the trend. The trend is the debt has gone up and the interest cost has doubled. How do you plan to, going forward in the next three, four years, do you plan to increase more debts for buying land or this shall be stable here or how do you plan to make it come down?
One preamble to that is that if you can just sort of evaluate the kind of business development that has happened over the last 24 months across the South and the West region. For good or bad reason the approvals are getting delayed. That is the reason the number went up. These, again, like I mentioned earlier, these are across the West and the South. These are extremely marquee locations, excellent projects. I think they have come together. We have got the best of consultants, international consultants on board, and the product has really come out well. From now on, from the next 12 months, the way, may go a little bit here and there, but almost every month you are going to sort of see a launch between the West and the South.
All the effort that has gone in over the last 24 months in terms of business development, the debt number going up, the investments that have gone into these projects for pre-launch, et cetera, once we put it into production, y ou are going to automatically start seeing cash flows on that bucket. Therefore, as the sales pick up, the collections pick up, you are going to see those debt numbers specific to those projects go down.
Add to what Ashish said, the most important part of this one is if you go back to 2020 and look at what was our portfolio value, that is, our ability of the lands that were tied up and which were about to be launched and the pipeline of the projects. Maybe I do not know the exact number. Maybe it was INR 15,000 crore, INR 18,000 crore.
Today, I think we have surpassed INR 50,000 crore of top-line portfolio number that we are currently handling. That is, projects which have been launched and projects which have been launched and yet to be sold, and the projects which are about to be launched, and the projects which already money has been paid and in various stages of approvals. Also some of the places where we have already advanced the money and the last bit of due diligence is going on. If you look at this thing, we are in excess of INR 50,000 crore of portfolio. If you are saying that, what you mentioned is that the debt has gone from INR 2,700 crore to INR 4,700 crore. That is around INR 2,000 crore of debt increase has resulted in more than INR 30,000 crore of capability to develop has increased.
It means that it is a combination of that debt that what we have taken and the money that we have earned consistently by delivering what we are delivering at this point of time.
To add to that, as a strategy, we are financing our growth. These investments we have done largely from the performance-linked instruments, where the servicing of debt is linked to the project performance, and hence it is not impacting our overall cash flow or the pressure on the project. You also refer about the interest accounting, all those performance-linked instruments which we have issued, but interest as a prudent measure, we keep accounting the interest and creating a liability in the balance sheet. But in effect, it is not impacting overall the operational cash flow for the company.
Also to add to that, if you look at the pre-sales numbers from 2020, 2021 till now, we have even doubled there as well. That is already showing. The numbers are showing that where the trajectory is moving towards in the coming years.
Thank you. That was helpful. My next question was on the dividend policy of the company. Our company has been very erratic in terms of paying dividend. It gives a dividend one year, then it skips for two years, and then it is again giving a dividend. So what is going to be the dividend policy going forward?
Yeah. Ashish, please.
Yes. I think by intention, let me say, I think the intent is obviously to reward the shareholders for the support and the faith they have in the organization. I think the last four, five years have been unpredictable, starting from COVID, et cetera. And the call is today we are seeing the consolidation that is happening across the major cities in terms of the strong brands. If I go back seven, eight years, even in a city like Bangalore, at CREDAI we had 250 members. Almost 50% of them were launching projects. But today we are seeing you cannot name more than 10 or 15 developers maximum in a city that are actively launching projects. So we are seeing projects come to us. So in terms of business also, there is a capital requirement for growth. This is the time in consolidation.
There are certain projects which are in trouble. There are certain banks that are offering us projects. So this is nothing but investing for our future over the next five to seven years, securing marquee projects. So quite honestly, it is a decision between those two. But as an organization, yes, it is always there on our minds. And wherever the opportunity allows us, I think those years we will issue dividend.
Thank you.
Thank you. Participants who wish to ask a question may press star and one on the touch-tone telephone. Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Thank you. Thank you, everybody, for joining our call. Myself and my team is always available. If you have any further question, please write to us. We will answer those questions. Thank you very much.
Thank you.
Thank you. On behalf of Emkay Global Financial Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Thank you.