Ladies and gentlemen, good day and welcome to Q2 and H1 FY 2026 Conference Call of Puravankara Limited, 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 the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Harsh Pathak from Emkay Global Financial Services. Thank you, and over to you.
Yeah. Thanks, Yashaswi. Good evening, everyone. On behalf of Emkay Global, 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. Niraj Kumar Gautam, Chief Financial Officer. Also wishing Niraj-ji the best for his new role as the CFO. I shall now hand over the call to the management for the opening remarks. Over to you, gentlemen.
Thank you, Harsh. Good evening, everyone, and thank you for joining us today. As CFO of Puravankara Limited, I will take a few moments to highlight our key financial and operational achievements for Q2 FY 2026, provide context on the macroeconomic environment, and share our outlook for the balance of the year. I will aim to keep this concise while addressing the metrics that matter most to you. Let me start with the broader macro landscape, which continues to underpin our sector's resilience. India's economic bravery hit a robust 7.8% year-on-year real GDP growth in Q1 FY 2026, solidifying our position as the world's fastest-growing major economy. The IMF forecasts 6.4% growth for full-year, while the RBI has upgraded its projection to 6.8%, fueled by strong domestic consumption and a rural rebound.
On the monetary front, the RBI has cut the repo rate by 100 basis points to 5.5%, adopting neutral stance amid healthy liquidity conditions. In residential real estate, demand remains strong, especially in the INR 1 crore to INR 2 crore segment, with price appreciation ranging from 5% to 17% across major metros like Bengaluru, Mumbai, NCR and Chennai. These fundamental positions Puravankara fairly to capture ongoing market momentum. Turning to our financial and operational performance. In Q2 FY 2026, we recorded pre-sales of INR 1,322 crore, a 4% increase from INR 1,270 crore in Q2 FY 2025. Notably, this growth was driven solely by sustenance sales, underscoring the enduring customer trust on our portfolio and brand strength. Average price realization rose 7% year-on-year to INR 8,814 per square foot, reflecting sustained demand and effective pricing discipline. Customer collections reached INR 1,047 crore, up 8% from last year, demonstrating strong execution and payment adherence.
For H1 FY 2026, pre-sales totaled INR 2,445 crore, up 4% year-on-year, and collection hit INR 1,904 crore, up 1% year-on-year, maintaining a solid cash conversion ratio. On the P&L side, revenue grew to INR 681 crore in Q2 compared to INR 520 crore last year. We reported a loss of INR 42 crore versus INR 20 crore in Q2 FY 2025. Let me clear this. This is largely due to the timing of revenue recognition under Ind AS and our strategic investment in new projects. It is not indicative of any underlying operational weakness. Our cash flows are robust, with operating cash generation supporting our growth initiatives and our balance sheet remains strong. Shifting to business development, we have made significant meaningful strides in blossoming our pipeline during H1 FY 2026, hitting over 6.36 million sq ft of developable area with a potential GDV of approximately INR 9,100 crore.
Key additions include a 24.6 acres partnership at KIADB Hardware Park in North Bengaluru, a preferred developer status for eight societies in Chembur, Mumbai, adding to 1.2 million sq ft, a 5.5-acre joint development in Balagere, East Bengaluru, valued too at INR 1,000 crore GDV. The prestigious Malabar Hills redevelopment in Mumbai, contributing to 0.7 million sq ft and a GDV of INR 2,700 crore premium residential space. These moves diversify our exposure across premium and mid-income segments, enhancing revenue visibility. Our land bank now exceeds 32 million sq ft, providing multi-year runway for launches and de-risking our growth trajectory. Looking forward, our H2 FY 2026 pipeline includes 15.53 million sq ft across Mumbai, Bengaluru, Chennai and Pune. This carries a sales potential of INR 5,000 crore plus, which we expect to accelerate pre-sales momentum.
With resilient demand, favorable financing, and our proven execution track record, we are well equipped to deliver on these opportunities and sustain profitability improvements. In summary, Q2 FY 2026 was marked by steady top-line growth, disciplined cash management, and targeted expansion that fortified our long-term value creation. Despite the reported loss, our fundamentals are sound, healthy collections and fortified balance sheet in a high-potential pipeline. We are committed to optimize costs, enhance efficiency, and driving shareholder return as we navigate the H2 . Thank you for the continued support. Now I'll open the floor for questions. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone 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. We'll take our first question from the line of Deepak Purswani from Svan Investments . Please go ahead.
Yeah. Good evening, sir, and thank you for the opportunity. Sir, my first question is related to the Mumbai pipeline, especially for the Andheri project and Miami By Purva launch . It seems the launch has been delayed by another three, four months. If you can give broader sense, how should we see and what are the reasons we are facing the delays vis-à-vis the other players? That is my first question on the Mumbai. If you can please explain this?
I request my colleague, Mr. Rajat Rastogi to answer this question. He is there in the call.
Yeah, I am there. Hi, Deepak-ji. Just to answer your question first on the Andheri launch. Andheri launch, we have received all the approvals, including MoEF. Vacation notice has already been served to the society. As we speak, members are leaving the society. We are in all good position to launch it in January. In fact, our sales office work and everything else has also started. Regarding the Miami By Purva launch, approvals are already going. We have already informed earlier that Miami By Purva launch is going to be either in Q4 or in beginning of Q1 next financial year. The way the approvals are progressing, we are most likely to have it in the month of March or in the month of April or May next year. So we seem to be on track. We are currently facing no regulatory problems.
Our approval is on track, and we are probably getting approvals at one of the fastest pace in the industry.
Rajat, maybe you can update them on your Bandra and your Thane approvals as well.
Yeah, of course. Just to also inform you, we are also on the Thane approvals. We are working on the approvals. We are expecting to get all the requisite approvals by end of December. All good to launch by quarter four of this financial year. We should be able to get close to around 6 lakh sq ft of inventory in Thane. In Bandra, we have also received the concession plan. We are expecting the IOD to come within a week's time, and post that we will serve the vacation notice for the society. Just to inform on Bandra as well, we are looking at getting all the approvals, including the environment approval, by end of December. Post which, I think we will start working on the launch timeline. Bandra also we are very positive that we should be able to launch in quarter four of this financial year.
Would it fair to say that three out of the four project at least should see launching in Q4 for the Mumbai project?
Yeah, absolutely right.
Okay. Moving to the Bengaluru market as a whole. I mean, there also, if I were to look into some of the key projects which we were looking to launch in Q3, that has been now moved to the Q4 FY 2026, like Bellandur, Westend , and some of the other projects which has been pushed to the Q4. Especially in the context now again, Bengaluru Municipal Corporation would also come out with the election in some time. In this context, how should we see the launch pipeline for our core market?
Yeah, this is Mallanna here. I'll just try and answer your question. With regards to the launches that Hebbagodi and KIADB are coming in this quarter itself. That means that the EOI program and I think that we are through starting them. It's just that MoEF one approval that is, the committee meeting got successively postponed for last three weeks or four weeks, and which has taken some time. Rest of the projects are there in the Q4. All right? Some of them may go to the first quarter of the next year. But largely Mallasandra, I'm just looking at the investment proposal that the ICP that what we have circulated, and I'm reading out of that Mallasandra, Kanakapura, and West end, Hennur Road, and Hebbagodi and KIADB, I don't see any problem. Bellandur is a touch and go.
City Spire could be a touch and go, and Grand Hills could be a touch and go. That means those three projects may go to the first quarter of next year. Otherwise, as planned that we are in line for the launches. Just to give you the perspective, and we were hit by many number of regulatory changes that came about, starting from the e-Khata and then registrations, because that once the e-Khata is done, the registration department had to have their software working with the revenue department. That was taking some time. Then we had the creation of GBA. That is five different corporations because of which the files had to be moved from one place to another place. With all this, I think we're still confident that we are in for the launches.
I'd also believe that we are in the fag end of the whole transition in the long run, which may work out very well for Bengaluru. But we got a little bit pushed back on our approvals because of this.
Okay. If I were to look into the cash flow statement, interest expenses have seen a sharp rise in this time as well. This has moved to INR 177 crore. If you can give the sense why there has been a sharp jump in the interest expenses during this time?
Cash flow. One minute. There's no sharp jump, I would say. The last quarter also, it was about INR 160 odd crore, and now it's up INR 176. This interest payment is in the line of the debt which we have and some of the HDFC loan which facilities we have taken, which is payable and available in nature. However, we choose to pay them on time and not accruing that interest, and it will be paid when the projects are completed. Hence, the interest, as and when project is doing well and serving the interest IRR which is applicable, that is why it's increased marginally. Otherwise, as far as the cost for the quarter is concerned, it's about INR 168.58 crore for the quarter. If I look at immediate previous quarter, it was INR 160.90 crore. As compared to year end, it was INR 140 crore.
Just to add to that we had this INR 1,150 crore of payable and available structure at 16%, 17% money. Then it took this long, almost a year of 15 minutes for the projects to throw the cash flows out. From that cash flows that we are now servicing that debt. Because of the higher debt cost that it has, that it looks like we have paid the debt higher. In fact, what's going to happen is that at some point of time, because of healthy cash flows, that we may even look at reducing our debt position at higher cost and moving towards the lower debt cost. So it's a good thing that is happening. Before the good thing that's happening, you're seeing a little bit of more-
Payout. Because payout is accrued today. In this facility, we are 100% paid on the IRR. There's no interest is accrued in the books and not paid, 100% paid. Hence, on a tenor of the facility, we'll end up paying less interest because we are paying ahead on the time. As far as cost, as I explained once again, if you look at the profit and loss statement, as far as cost, which is going through the P&L, it's INR 168 crore. If I compare to immediate previous quarter, it was INR 160 crore. So it's not a substantial increase, just a marginal increase of interest.
Okay. From the cash flow statement point of view, year as a whole for FY 2026, how should we see the collection for this year and construction outflow?
If you look at the collection, we have collected INR 1,900 crore for the half year basis. As construction progress is going fast, collection has been robust, and we expect it to be better onwards. Because, A, the collection which will come from my ongoing projects where construction is going in fast pace, plus the launch guidance, just now both of you has spoken. The moment we launch this project, that is the incremental collection will come, and hence it will enhance here onwards.
We have done a pure construction of INR 1,000 crore that we have done, and INR 1,950 crore is what we have collected. As you can see that it is going in almost like a 2x kind of a position. In the third and the fourth quarter next half year, I do not see that from the ongoing projects where the construction is going on and the collections are going on, that should remain same. Whatever the additional collections that we are going to do from the launches is going to become addition to the cash flows that we already have.
Okay. Finally, if you can give the update on the HDFC platform side. How much capital has been deployed so far on that platform? Also, any thoughts on the Pune launch, Pune business development activity? If you can share thoughts on that part, that would be really helpful. That is from my end.
As far as HDFC Capital is concerned, we have already deployed INR 700 crore out of the INR 1,150 crore. Just to add, out of the INR 700 crore which we have deployed, we have already repaid also about INR 110 crore while we are speaking today. Remaining INR 450 crore also, we have given them utilization plan. The few land parcels have already been identified and due diligence are on, and we are expecting to utilize in next three to six months time period that money as well to fund our growth. As far as Pune is concerned, Pune we have last Purva Atmosphere we have launched. I would request Mr. Rajat to add some more thoughts about our plans in Pune.
Yeah. Thanks, Niraj. We are aggressively expanding in Pune. We are looking at much more opportunities in Pune, primarily in the western side of Pune, where right now we are in kind of advanced discussions for at least couple of land parcels in the west side of Pune. Also, we have started looking at redeveloping opportunities in Pune since we have done so well in the Mumbai market. We are looking at a lot of encouragement from Pune societies with regards to Puravankara as a redevelopment partner. That is another one segment that we are looking at. We are very hopeful that in next quarter or two quarters, we should be able to get at least couple of land parcels closures in Pune. Having said that, we still have enough and more inventory right now in our four ongoing projects in Pune, which is close to around INR 4,000 crore.
Right now the brand is playing a very strong role. I think we are doing very well in Atmosphere launch also and the project also. We are pretty, I think, optimistic about the Pune market.
Okay. Thank you, and wish you all the best.
Thank you. Ladies and gentlemen, to ask a question, please press star and one on your phone. Participants who wish to ask a question are requested to press star and one on their phone now. We have a question from the line of Harsh Pathak from Emkay Global Financial Services Limited. Please go ahead.
Yeah, thanks for the opportunity. My question is on the Thane project. We are seeing that the inventory there, it is still high. In Purva Panorama, it is around 73%, whereas in the first phase also there is 59%. How is the space there? What kind of demand we are seeing and what are the steps you are taking to push sales at this project?
Yeah. Just to explain you about the Thane project, the existing towers, we have not opened for sale. We are completing the existing towers. We are expecting the OC to come in quarter four for the existing towers, and that is when we are going to open these towers for sale. From the existing inventory, right now, we are looking at launching two towers. One which is completed tower and the other one a new tower, the one that we had launched. Hopefully in quarter four, I just now said that we are looking at the launch of that tower. And that is when we are going to see much more inventory being sold. Right now, on the overall market positioning side, we are very well positioned. Right now, we are getting a good pricing in the market. Our current realization is in close to around INR 20,000 a square feet.
From the launch perspective, we are quite hopeful that we will do a very successful launch in quarter four.
Just to put that into perspective. When we acquired the project, there was existing building there with sales done. The strategic call was today, let's get that front building done. Like Rajat said, we'll be completing that building in the next quarter. We just believe that we'll get a greater value. That stock was never opened up for sale, focus is on completing it and getting a higher value for a completed product. On the towers that we have opened up, we have seen extremely good sales. Now we are waiting for additional approvals to come, and then we launch those phases. Thane is absolutely not a concern in terms of sales or velocity.
Sure. Understood. On the commercial side, Purva Zentech, since we have opened for sale, there also, I mean, the inventory this quarter, we have sold around 2% of the inventory because from 95%, it has moved to 93%. What kind of response are we seeing there? Also if you can give some update on the Purva Aerocity project, please.
Yeah, sure. On the Purva Zentech project, what we are seeing, we have sold almost 60,000 sq ft of area. We have also leased, which we are going to be announcing very soon, a substantial area to one of the large retail players. I think that we are announcing very soon, which is close to around 80,000 odd sq ft. We are getting very good response. Right now, we are in discussions to do a couple of large leasing cum sales transactions. Purva Zentech is getting good demand from the micro market, and that's what we are poised to do it. We are hopeful by end of this year, we'll be able to do substantial amount of sales at Purva Zentech. Just coming back on Purva Zentech, we are looking at getting the OC of the asset by February of the financial year.
Hopefully in quarter four we'll get the OC for Purva Zentech, and then that's when we'll expect the sales to get even more robust. On Purva Aerocity, right now, we are fulfilling a lot of RFPs right now. A lot of large players have shown interest in Purva Aerocity. We are hoping to get the OC of Purva Aerocity in January, which is close to 1.2 million this year, and that's when I think the leasing will gain momentum of that asset. On the AOP piece, on the plan piece, we seem to be on track on both these assets on the commercial side.
To dig more on the Purva Aerocity project, maybe if you can give some color on what kind of interest we are seeing. I think it's around 2 million sq ft of an area.
What kind of interest have we seen and at what rates are we targeting? If you can give some color on with respect to the vicinity rates, something like that, please.
Yeah. I think, just to give you a perspective, right now, we are getting OC for the first 1.2 million sq ft . The balance 9 lakh odd square feet is something that we will do build in Phase II, and we will start pouring concrete in the next financial year. On the ongoing rental side, the current micro market is running at a rental of around INR 55 to INR 60 a sq ft on the leasable area. Most of the traction that we are receiving right now is from large IT players, who've been looking at a 3 lakh to 4 lakh kind of square feet area. I think most of these transactions will fructify once we get closer to OC. As we speak, I think a lot of visits are happening at the site.
We are very hopeful that we should be able to close a large transaction in Purva Aerocity soon.
Understood. Any update on the Hebbal land?
Hebbal land, we are working. I think there is a work in progress, so we have got a lot of work done in last few months. We should be able to conclude the sale agreement by end of December and start putting for approval. I think we should be able to get the approvals in next six months, and then we will start pouring concrete.
Sure. Any plans on adding further commercial assets? If we have some pipeline or are we scouting some projects there? Because we are hearing more and more developers get on the commercial side. Any additions that we have in our plans apart from the assets that we are already having?
Yeah, of course. I think we have seen commercial as a good growth sector for us, I think as in building a large annuity income. Right now, Purva Aerocity and Hebbal will add as an annuity income for us by 2030. We are also looking at opportunities in growing in good markets like Pune where we are looking at business development activities for commercial. Yeah, I think from a business perspective, we are quite optimistic about this segment, and we will see if the right opportunity come, we will look at investing in that opportunity.
Sure. Now coming to the debt side, it is commendable that despite the project additions, I understand they are largely satellite in nature. Despite these additions, the debt has remained largely stable. I understand you did highlight upon the collections part, so how do we see debt by the end of the year o r maybe if you can give some target for FY 2027, 2028.
So, if you look at our slide number 22 on our presentation, if I not be doing anything, then debt will be down by INR 800 crore in next 12 months. That's the scheduled repayment. And another next second year, it'll be down by INR 1,646 crore. So we have given the debt repayment schedule, how the next four years, if assuming I'm not adding any debt, that will automatically become zero. However, business is built on the basis of leverage. And as today, opportunities are more in the marketplace and we are in growth phase, and hence we will be continuing to be utilizing the capital which is available to acquire land and fund our growth. But at the same time, we are mindful about the debt and some of the debt which will repay through the scheduled repayment as in 10 statute during the sometime back.
The HDFC first platform, which we signed about a year back. Out of that, the 12 months was lock-in period. The day lock-in period over, the first tranche of repayment are done by INR 100 crore. And we will be progressing as we launching project, we keep paying the debt. And then continuously we are monitoring the leverage versus the growth and we'll be continuously keeping the balance of it.
Understood. So, taking it that forward, on the project additions part, I understand Rajat highlighted for the Pune region. So additionally, how is the pipeline looking from the project additions front, especially in Mumbai and the south region? And what kind of additions are we expecting? Will that be more outright acquisitions or the focus remains on the asset model?
So I'll just speak for South, Mallanna here.
Okay.
I'll speak for the South. Basically, the pipeline is quite strong. There's quite a number of opportunities that we are pursuing in this quarter itself. As you saw that another, the KIADB Hardware Park and Balagere we closed in South. West, as Rajat is going to talk about Chembur and Malabar Hills. Coming back to the pipeline that is there, without getting into too much of details is because the last signatures are not happened. We have around INR 400 crores from HDFC to be invested. It is in our good interest that we have to deploy it as quickly as possible. To answer your question that whether we are going to go for joint development kind of arrangement or-
Okay
Outright. It's always an evaluation and also the preference of the landlord. When there is money that's available for us at a 17% payable, when able, if the landlord is going to make 25% from the current valuation of the land, definitely we would like to. We want to take that risk and buy the land parcel and then go for it. It is just that calculation. Also, of course, capital investment and the risk against it that will be weighed, and then the decisions are going to be taken. So it's one way or the other. It is not really that how much capital we want to invest, and there's no target. Any capital for growth will be invested. So that is the way it works in terms of the investment side.
Just to add to what Mallanna said, we continue to look at good opportunities in Mumbai and Pune. We're obviously the preferred player right now in the Mumbai redevelopment market. Continue to add mark assets like Malabar and in Chembur. Right now also, as we speak, we're evaluating top redevelopment opportunities. On a business momentum side, as I think Mallanna also said, that we are agnostic to the kind of opportunity coming. We evaluate on the basis of our internal parameters and be it a land buyout or a JDA or a redevelopment, we look at opportunity and then we decide whether we want to do it. But just to answer your question, I think we are very hopeful and very positive. I think the market is doing pretty well and we'll continue to add good assets in our portfolio.
Right now, we are in advanced discussions with a couple of assets and we hope to close them in the next half of the financial year.
Sir, what would be the total GDV that we are currently into active discussions or in advanced stages of discussions with the landlords?
What I would say, Harsh, is for whatever we acquired, as one is GDV is worth INR 9,100 crore, which we already published, I also said. The rest of the, as Mr. Mallanna and Mr. Rajat said, unless we sign the last paper, we will not be disclosing or it is not appropriate on our part to disclose what is GDV, what is the area, what is the location, et cetera. As and when we conclude the deal, we will keep updating and announcing those details.
Understood. One last question from my side. For the Malabar Hills project, what is the kind of profitability that we have kept into the consideration? What is the project level EBITDA margin that we have targeted?
I would request Mr. Rajat to take this question.
Yeah. I think without disclosing the exact EBITDA, I think the margins are pretty healthy. Of course, Malabar Hills is the most premium part of Mumbai and of course, one of the most premium part of India. So the margins are pretty strong and healthy, and I think the margins are also meeting our internal requirements that are there. So the EBITDA margins, as I can tell you, is upwards of 30% roughly.
Sure. That answers. Thanks a lot for taking my questions.
Thank you. We will take our next question from the line of Deepak Purswani from Svan Investments. Please go ahead.
Yeah. Thank you for the follow-up opportunity, sir. Sir, firstly, wanted to check it out. In the first half, last year we did a pre-sales of INR 5,000 crore. This time, in first half, on the sustainment basis, we had done a pre-sales of roughly INR 2,400 and something crore. So if you can share the broader thoughts, how should we look into FY 2026 and 2027 pre-sales, based on our launch pipeline, as well as how do you see the current demand environment in each of the micro markets?
Looking at the numbers for FY 2027 and so on and so forth would be a little bit of a stretch. Whatever is left out in this year, the second half of the year, as you rightly pointed out, we do around INR 1,250 to INR 1,300 crore of sustenance. And we think that we will continue to have that kind of sustenance numbers, more or less. So which means that we have got another INR 2,600 crore. As we said that we have around INR 12,000 crore of launches that is coming up. Even if you are able to launch around 80% of that, INR 9,000 crore or INR 10,000 crore. We sell anywhere from 30% to 50%. So I would not want to peg a number. I will let you do the calculation by yourself. So some project could be 20%, some project could be 40%. So it is anybody's guess.
But bringing the product to the market is going to be our responsibility, and that's probably going to happen up to around INR 9,000 crore to INR 10,000 crore.
Just to answer on the demand side, I think the demand seems to be pretty robust for top branded players like Puravankara. In all the micro markets where we are operating right now, I think we continue to be one of the top leaders in the micro market, both on the pricing side and also on the velocity side. We're obviously very positive with these launches coming in, I think. Now I'm sure we'll be able to showcase Puravankara brands and the kind of Puravankara products, especially in markets like Mumbai where we've been something new, like Andheri Lokhandwala or maybe the Pali Hill product that we have built in. We continue to be very positive with the market. The current market trend is very encouraging, so we don't see any challenges out there.
Okay. Just continuing on the launch pipeline we mentioned about, we would be looking out to launch INR 12,000 crore kind of inventory in the H2. Sir, just wanted to seek it out. Is it a full project or what would be the inventory value out of this that would get launched?
Speaking about South, if you really look at around 11 projects, nine in Bengaluru, one in Coimbatore, one in Cochin. Out of which the KIADB and the Cochin project, that is the Provident Winworth, are the two large projects. Basically they will run for a longer time. If you look at all other projects, it's now 700,000 sq ft, 600,000 sq ft, 440,000 sq ft, 520,000 sq ft. We believe that there is no phasing for any of these things. They're all one phase development and one phase launch. Looking at the demand of what we have in KIADB, even though it is going to be in excess of 2,800 units, I believe it is going to be one launch. Meaning to say the tower by tower that we sell, but launch is going to be one launch. Probably that answers your question because it's quite distributed.
I do not see a problem that all of them is going to be in a single launch.
For example, why I am coming out to that point. For example, if I am looking into the presentation.
I know.
The Deccan project. Deccan project, that is a 0.36 million sq ft saleable area. Out of this, we are looking out to launch only the 60,000 sq ft.
Yeah. I wanted to add to what Mallanna said. In the West, I think the size of the projects are pretty huge, both in terms of the value and also sometimes in terms of the area also. Like in Thane is a very large project, so we will be launching in tranches, including Andheri Lokhandwala, where we will do our launches in two phases. Obviously getting INR 1,000 crore worth of inventory in Andheri Lokhandwala, almost around INR 1,000 crore worth of inventory in Thane. In Pali Hill also, I think we would like to do it at 60,000 sq ft, 70,000 sq ft of area in tranches because I think this is a very high-end, top-of-the-line project and we would like to first showcase to the market, launch a small inventory and then probably you go with a larger launch. That is what the plan is.
If I can help you with the math. If you are looking at our presentation, slide number 19, which we are saying is we have launched by guidance is 15.46 million sq ft. Out of that, we will take to the market 9.28 million sq ft. If you look at the last row on the slide. So if I value today 9.28 million sq ft as an average rate between Mumbai and Bengaluru and Pune, say INR 11,000 per sq ft, it is come about INR 10,000 crore value. And hence that is what Mallanna had said while speaking, that we will be bringing the inventory, about INR 12,000 crore of inventory we will be bringing to the market. Hope that clarifies.
Yeah, that clarifies my question. Yeah. And second part, if you can also give some sense of project completion and delivery timeline. I think in the first half we had done approximately 1,300 unit. How should we this delivery part in H2 , and how should we see the revenue recognition in the H2 ? Is it going to grow exponentially with any other significant project which is getting completed and hitting the revenues? Or how should we see from the P&L perspective in the H2 of FY 2026?
Sure. So if you look at our slide number 34 in our ICP, we have a 2.97 million sq ft ready inventory OC received, 2,352 units. Besides this, we are going to get some more OC during the period, during the second half year of the period. And there were some issues in terms of giving possession and handover in Bangalore because of the e-Khata issue and the registration issue, as you would have read in the newspaper. And that is where two of our large projects we could not give possession. However, our teams are working with the government, and there is some census also going on in the state government. Thereby, the government officials are a bit busy.
Now I think everything is falling in place, and we are reasonably sure that we will be able to hand over a substantial part of it during the second half of the period. And year as a whole, our numbers will be much better than which we have published as of now.
Okay. So initial plan of delivering 3,000 plus 100 units during this year, are we on track?
Absolutely on track.
Just to round it off, it is basically 4.3 million sq ft is what we thought about. We gave the guidance that we are going to be delivering. So basically now around 1.3 million sq ft is what we have delivered. Another 3 million sq ft is what needs to be just registered. It is nothing to do with the construction delivery. Construction is over. OC has been received, more than 2,000 units. The snags have already been corrected. The customers have come and accepted. It is a question here, is that without the registration, it is hard to hand it over to the customer. We have not handed over. Without the registration, we are not able to recognize them as sold units. That is the reason that we are waiting for it.
And it is in fact, you will see from this quarter and the next quarter that in the five months remaining in this second half of the year, we should be doing well.
Okay. Just to get the update on recent four project addition which we have done. If you can give the progress status on each of these projects, how should we see into each of these projects, and what would be broadly the timeline we are considering for launching each of the projects? For example, North Bengaluru, Chembur, Mumbai, and then East Bengaluru and Malabar Hills.
I will talk about the two projects in Bengaluru, the 24.59 acres in Hardware Park. It is around 3.48 million sq ft of developable area. I think we signed the agreement some seven months back or so, six and a half, seven months back, and in probably January, February that this project is going to get launched. We are substantially that the approvals are already there and a little bit of that MoEF and PCB approvals are pending and otherwise everything is ready, and I am sure that January, February it will happen. Same thing with Balagere. Same again, it was signed six months back. Again, it is in advanced stage of approvals. That is a joint development in East Bengaluru, that is what we call that. So, I think both of them should be in this year.
Other two projects which we added during the first half was a society that Chembur and the Malabar Hills. Another redevelopment project. I am requesting Mr. Rajat to throw some light on that, our plans for launch and these two projects.
Yeah. I think both these projects are redevelopment and they are all in this DCR 33(9) scheme. You are aware this redevelopment projects are actually taking normally a longer time because of the society involvement and the DA process, et cetera. Just to give time perspective, I think we should be able to launch both these projects by Q3 or Q4 in the next financial year.
Okay. In both of these redevelopment projects, what is the kind of area sharing or broad sharing which has been done with the tenant or how should we see from the profitability perspective in each of these projects?
Both the projects are really, in terms of the locations, Chembur being, I think, one of the most hottest property markets right now in MMR. This is a close to a 5-acre land parcel that we are doing in Chembur, and probably one of the largest land parcel that we are doing in Malabar Hills. Both these projects are really one of the best land parcels that you have in the micro market. I think on the profitability side, I think both of them will fetch out better than the market gate terms right now, I think because, one is the size of the project and also I think the location that they are in. As I said earlier also, I think we are very, very positive with both these assets and we are working very hard to finalize the due diligence and get these launches on track.
Okay. Thank you and wish you all the best.
Thank you.
Thank you.
Thank you. Ladies and gentlemen, to ask a question, please press star and one on your phone. We will take our next question from the line of Chintan Mehta from Puniska Family Office . Please go ahead.
Thanks for the opportunity. Sir, I just want to understand on debt part, what is the peak debt which we are targeting even in our per square foot basis? And we can expect debt per square foot for commercial to start declining once we monetize our rental yield start coming? Thank you.
Chintan, if you look at today as in end of the quarter, we were a net debt of INR 2,894 crore. If I look at the debt in terms of per square feet, our per square feet debt on residential was INR 1,111. It was blended debt, and if residential, it was INR 859 per sq ft, and commercial was INR 252 per sq ft. Our commercial debt comprise of the debt for the two of our commercial projects, which the project Purva Zentech, which we have already sold part of it, about 50,000 sq ft we have already sold. As it completes, we are planning to sell this project. As we sell the project, the debt will be repaid.
The commercial project, Purva Aerocity, where we are planning to retain and lease it out. Once we lease this asset, we have taken a loan from SBI to construct the finance. There will be some more drawdown will happen for completing this asset. Once asset is complete, we will convert this loan to a LRD facility. That is the terms already approved by SBI and the construction finance itself. Hence, it will go up bit in case of Purva Aerocity to fund the rest of the construction first. But once project is completed and leased, and once it converts this loan into a LRD facility, it will come down as far as per square feet basis, as well as overall also.
Okay. Sir, both of these major two projects will get completed by next year in rental yield. Are there other commercial projects which we are targeting next two financial year, if you can throw some light on it?
In these two assets, as Mr. Rajat Rastogi said during his conversation, we are expecting to complete or get the OC for both these assets on or before March 31. Purva Zentech, which is the first asset which I have spoken, have already partly sold, and leasing is also underway. We will be targeting to selling the substantial part of this asset during the coming financial year. As far as the second asset is concerned, as it completes, lot of inquiries are being done. Our target to lease is 1.2 million sq ft. Once leasing will start, then as Mr. Rajat Rastogi said, we will be targeting to start construction for rest of the area in the next financial year.
Okay. Thank you. Thank you so much. All the best.
Thank you. Ladies and gentlemen, to ask a question, please press star and one on your phone. Participants are requested to press star and one to ask a question. Ladies and gentlemen, to ask a question, please press star and one on your phone now. As there are no further questions, I now hand over the call to management for closing comments. Over to you, sir.
Thank you. Thank you, everybody, for joining for this call. If you need any further question, any clarification, please write to us. Me and my team is always available to answer your all questions and clarification. Thank you so much once again.
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.