Aditya Birla Real Estate Limited ($500040)

Ladies and gentlemen, good day, and welcome to Aditya Birla Real Estate Q4 FY '26 Earnings Conference Call hosted by HDFC Securities. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Jay Shah from HDFC Securities. Thank you, and over to you, Mr. Shah.

Good morning, everyone. On behalf of HDFC Securities, I would like to welcome you all to the 4Q FY '26 and Full Year FY '26 Earnings Conference Call for Aditya Birla Real Estate. Joining us today from the management are Mr. R. K. Dalmia, MD Aditya Birla Real Estate; Mr. K. T. Jithendran, MD and CEO, Birla Estate, and Mr. Keyur Shah, CFO, related. We will begin the call with opening remarks from the management following which we will open the floor for question-and-answer session. I would like you to hand over the call to the management for opening remarks. Thank you, and over to you, sir.

Thank you, Shah. I'm R. K. Dalmia. Good morning, everyone, and thank you for joining us for our Q4 FY '26 earnings call. India's economy remained resilient in the quarter ended March 2026, Q4 FY '26 FY '26 GDP growth estimated at 7.6% and FY '27 projections of 6.9%. It reinforces its position among the fastest-growing major economies globally, supported by strong domestic demand, a stable policy environment and continued investment activity despite of some global factors, including geopolitical tensions in West Asia and potential energy price pressures. Inflation has remained under control at around 3.2% to 3.4% in early 2026 and projections of 4.6% for FY -- the real estate sector continues to benefit from this largely supportive condition, strengthening sector's long-term growth trajectory. In terms of industry performance, the residential demand remained stable in Q4 FY '26. However, premium and luxury segments continue to outperform while affordable and mid-income demand softened. Tier 2 city supply showed a moderate dip with a growth absorption over the FY '26. MMR remained resilient with a moderate growth in both absorption and supply over the year. Market dynamics in Bangalore remained strong and favorable as it witnessed growth in both absorption and supply while delivering a healthy increase in price growth Y-o-Y. NCR has witnessed decrease in supply Y-o-Y, but growth in absorption coupled with increase in price growth. Pune has seen relatively sharper moderation in activity in terms of both supply and absorption. Further, pricing has shown a healthy growth across all the 4 regions, Y-o-Y growth, MMR 7.4%, Bangalore 13.9%, NCR 8.5% and Pune 6%. Overall, regional trends continue to premiumization and more selective buying behavior. Industry players are responding to this evolving demand environment through calibrated launches, disciplined pricing strategy and flexible payment plan to support absorption. On commercial front, the market continues to witness strong leasing activity supported by GCC and demand for Grade A assets, resulting in tightening vacancy level and a continued rental up cycle across key markets. Overall, the Indian real sector is stable with increasing emphasis on execution, brand strength and product differentiation. Now our performance for the quarter. I'm pleased to share that we have delivered exceptional close to FY '26. Q4 FY '26 has been one of our strongest quarters to date. achieved presales of INR 4,288 crores, reflecting a robust 69% Q-o-Q increase. Collection for Q4 FY '20 remained healthy at INR 994 crores, and we recorded area sales of 3 million square feet, making an impressive 75% Q-o-Q growth. This momentum fueled by the outstanding response to all our -- to our new launches across regions. Birla Arika Phase 2 in NCR continued this strong trajectory with 97% of large inventory sold in the launch quarter itself, contributing to INR 1,600 crores. MMR Birla Taranya witnessed increasing demand, delivering of INR 952 crores in sales. Our Birla Trimaya Phase 4 continue to build on the success of earlier phases of INR 649 crores and improvement. Birla Punya Phase 2 added INR 250 crores to the quarter, reinforcing our presence in Pune micro market. For the full year FY '26, we closed with sales of INR 8,156 crores, collections of INR 3,341 crores and area sold 5.5 million square feet reflected of that resilient and stability of our [indiscernible]. Our redevelopment front, we announced our major redevelopment project in Khar with a GDV potential of INR 1,700 crores. Discussions with several most societies are progressing well. And we remain optimistic about concluding additional partnerships in the months ahead. This segment will further contribute to our growth going forward. Operationally, our construction progress remain firmly on track across projects. Safety and sustainability continue to be at the heart of our execution approach. Our rigorous safety practices were recognized by the British Safety Council, which conferred our partners the price sort of honor, along with a 5 Golden Star Rating. Our commitment to forging an inclusive, diverse and equitable workplace is stronger than ever. We are proud to share that Birla Estate was recognized as one of the best organization for Women 2026 at the sixth edition of EP now. Our ESG leadership further acknowledged by British World, which ranked ABR, top-60 most sustainable companies and #2 in the real estate and REITs category. As we look ahead, our commitment remains unwavering. We continue to prioritize the giants, excellent customer-centric and the highest standards of safety and quality. We are building not just homes, but superior experience, creating long-term sustainable value for our shareholders. Thank you. Thank you so much.

Sir, should we open the floor for the Q&A.

Please go ahead.

[Operator Instructions] The first question is from the line of Karan Khanna from Ambit Capital.

Good morning and thanks for the opportunity...

Mr. Karan? Sir, the participant has left the queue, I'll request the participant to kindly rejoin the queue. I will take the next question. Okay. Karan Khanna is in the queue, sir, I'll just promote him. Karan Khanna, please proceed.

Am I audible.

You are audible.

Just a couple of questions from my side. Firstly, K.T. sustaining sales seemed quite healthy for the fourth quarter, almost 20% for the INR 7,300 crores of inventory that you have remaining, what kind of sustaining sales do you foresee going into FY '27?

Hi, Karan, can you hear me?

Yes, K.T, we can hear you now.

Yes. Yes. So as a sustenance, yes, so we had a very good traction in our Bangalore project, which is largely sustenance led and also Niyaara. Otherwise, the bulk of it was from new launches. So we're not giving active guidance for the next year. All I want to tell you is that I mean for the current year, we have got about INR 9,000 plus crores of new launches and INR 7,000 crores of sustenance sales coming up. But we are refraining from giving any guidance because it's very difficult to actually predict what kind of sales we can estimate. So that's why I'm not giving any guidance. Yes.

That's fine. Just following up on the Mumbai market, if you could just talk a bit about the overall market, given that you've seen 1% growth in absorption and 2% growth in supply. And yet your existing inventory in Mumbai is at about INR 4,000 crores, and the pipeline inventory for FY '27 is also very much concentrated in Mumbai, especially Worli. So how are you looking at the luxury market in MMR overall? And how do you plan to manage launch time lines to allow for ample response to the launches? And also on the launch pipeline, if you can talk a bit about at what stages of approval are all these projects currently at? And I'm just trying to understand the downside risk in terms of launch delays that one can build in these projects.

Yes. So I think we had a fairly good year last year with respect to Mumbai. Yes, the launches came at the very fag end of Q4. Thane, Birla Taranya did extremely well. We did about INR 9,960 crores or so of bookings a few days that was left for us in Q4 and the momentum continues. Niyaara also with whatever left of the inventory was there, I think they had a healthy strike rate at least 2 to 3 flats per month last year. And with the new launch, I think it will really pick up. That's a different product, and we expect a very strong response from the market. Already, we have a reasonably strong queue lined up for this project. We have also signed a new project in a Khar, which we are really working over time to make it launch ready, but hopeful that we will be able to make it, and it's a very exciting market, very strong demand coming up with a unique product. So pretty excited about that. Our launch in Boisar also, again, it was a very far end, but we did clock about INR 80 crores, INR 90 crores there. We are expecting to sell it out completely this year. So I think from the micro markets where we are in, especially the Thane, Navi Mumbai junction market, Worli especially with our brand and Niyaara, which has been created very strongly. And the new micro market in West in suburbs, we are pretty excited and I expect a very strong response for us in this coming -- this year. As far as the launch for Birla Niyaara Tower C is concerned, it's really touch and go. We are pursuing very hard to get the approvals. It could be touch and go. We're expecting first half of H1, it's quite possible that by the time we take the launch, it may be below to Q3 also. So fingers crossed about that. But overall, I think we have enough time for us to do very strong numbers in Bombay this year.

Sure. And just lastly on Bangalore, given that this has been the strongest market for you and also the strongest response and yet you don't have any major launches related for FY '27. So how should we think about the BD that you're targeting in this market going into FY '27?

Yes. Yes. Good question. I think we have had a wonderful as a response in all of our 5 projects. We have handed over one, and we are in the process of having another one this year. So we left the Trimaya and Evara. We're expecting very strong sustenance sales from both Trimaya and Evara. And we are also very aggressively looking at BD. We have quite a good sort of medium-sized proposals, which are working very hard. Largely, our total focus this year will be concentrated on building our BD portfolio. And we are quite optimistic about that.

We'll take the next question from the line of Jai Shah from HDFC Securities.

Can you hear me now?

Yes.

So can you quantify the launch timing, like in terms of H1 and H2 FY '27, which approvals remain key dependencies and also, like we are seeing that the -- like in Worli, there is quite a good supply now. So how are you -- like do you see any slowdown in luxury absorption or pricing resistance given the increase in South Mumbai supply like amongst the peers.

Okay. Thank you, Jay, for your question. So first, in terms of time lines, as I mentioned about Tower C Birla Niyaara, I mean the brand has come very strongly in that micro market. And we are still commanding a good premium and demand, and we expect covers to really accelerate that demand considering the initial response that sort of we are building up -- of course, we haven't launched it, but discussions with channel partners, et cetera. The only challenge is that we are working very hard to get the approval. So it may be -- we may just get a [indiscernible] the end of Q2 when we may launch it either in Q2 or maybe early Q3. But we want to make sure that we are completely ready in all terms when we launch it. So that is Q2/Q3. Birla Taranya new phase that will happen in Q3, which is the Thane second phase once we sort of exhaust our current phase substantially. Then we have got a new project we signed 3 development projects in Khar, which we are working over time to make it launch ready in this year itself. So definitely, that will be Q4. Then Birla Navya, the last phase in our Golf course extension location, that we're planning it in about Q3. Birla Punya in Pune, new phase launch we're expecting that should be in, again, Q3. And then Birla Evam in Manjiri, t's in Q4, Pune again. So this is largely the time lines.

Okay.. And also one more question on BD. So -- like can you share the current active BD discussions like by geographies, which is MMR, NCR, Bangalore and Pune and the preferred asset light versus outright acquisition?

Yes. I mean I can't share this with you in great details, but I can generally give you the trend that we are looking aggressively at Noida, sort of an outright Gurgaon JDA, Mumbai JDA and outright both, but lots on redevelopment, at least 4 or 5 projects. Pune outright and Bangalore JDA and outright.

Okay. But can you like quantify like the amount of GDV...

Overall, I would say roughly about INR 60, 000 crores of projects we are at this point of kind of pursuing. We are trying our best to maximize what we can do.

Okay. And what would be the mix for NMR in terms of like in the INR 60,000 crores?

MMR will be about INR 35,000 crores.

Okay. And lastly, on -- so I just wanted to know like what are you seeing in terms of target steady state or cash flows converging from presales over the next couple of years?

Sorry, what are you exactly asking? In terms of your customer collections? Are we talking about that?

Correct, retail...

Customer collections, Jai, we are largely -- most of it is related to construction progress, barring a few of them. But mostly, we attempt to collect at least 65% to 70% by the time we finish the structure of the building. So there is a little bit of flexibility in there, but largely, that's how we're looking at. So far, we have been doing very strong in customer collections. We grew by more than 23% from last year -- to last year's collection to last year. We are looking at a very healthy growth this year also from that number.

The next question is from the line of Pritesh Sheth from Axis Capital.

So just first one, I mean, to be very specific on Bangalore launches which Karan earlier asked for, I don't see a large phase of Trimaya coming this year. Any specific reason, right? Because we don't have any -- too much of inventory there, almost INR 150-odd crores only.

Yes. I think we are now focusing on execution. We have a lot of sold inventory. We are building it, and I think we can get a healthy margin. I think we'll wait and really maximize the last phase. -- price have really gone up there and every launch has been at a higher price. I think we really would like to now maximize the revenue from our final phase. As you mentioned, it's not much, but it's worth waiting for us. So this is a project which has taken about 5, 6 years, I mean, just because it has been a 52-acre project, so it's going to help us to really plan the launch of the last one in a big way in terms of there are any kind of price cost escalations or anything. So we just want to just keep that inventory as a hedge because there is enough on enough paying enough of positive cash flow is. So we're really focusing on now really maximizing on the last phase. So that there's no hurry to launch that now. Is it clear?

And in terms of, let's say, any business development we sign off from here on, right? We saw Khar getting added to the FY '27 launch pipeline, and we signed that project just in March or April. So any of the potential business development opportunities you think can be launched this year by Q3, Q4? or for this year, we are this INR 10,000 crores -- roughly INR 10,000 crores on guidance should be the number to look at?

Pritesh, I would really refrain from giving any -- I mean, any kind of guidance, you know better than that how indeterminate it is whatever guidance we may give. I'm only happy to say that we did give finally in the Q3 last year guidance that will exceed and we did manage to exceed that. We're pretty happy about it, but it is like that also happened without the launch of Tower C. We couldn't launch it. So any guidance that I give will be -- could be misplaced because of the very sheer uncertainty of when these launches can take less largely dependent on the approval schedule. Approvals are largely based on 2 things. One is the environmental and the NGT. So those are pretty in determinating we do our best in estimating them. So I don't really want to give any sort of clear estimates. Having said that, our whole attempt would be to launch as quickly as possible all of our projects because that's where we try to put all our efforts in since we pay full price for the land. I would love to be in a situation where I can grab a project, which has all the approvals and launch immediately. But it's quite unlikely, but it's very, very difficult to get that sort of project and also to our standards. So that seems a little too farthest, but I won't lose hope on that.

Got it. And just...

Mr. Sheth, I'm sorry to interrupt you, sir, I would request you to kindly rejoin the queue for the followup. There are those who are waiting. [Operator Instructions] We'll take the next question from the line of Akshay Thakur from Helios Capital.

My question is pertaining to your and in Taloja and Kalyan. So we have a huge chunk of land in Taloja. From what I got a sense from a previous meet that you plan to do a senior leaving project there and that area is getting more projects in a similar manner. So can you give any guidance on the GDV potential? Or what is the plan in terms of numbers for Taloja for Kalyan as well?

Akshay, yes. So as regards to these 2 parcels of land, this belongs to our historical land parts in that essentially in its kitty. Also you must remember that Taloja land is an agricultural land needs to be converted, et cetera. So it's in a very preliminary stage. It's not part of the Pune development scheme as of yet end. So the entire process of conversion, et cetera, is expected. It has not happened because the region has not come still under MRDA, et cetera. So it's about 45 acres of land. So we have plans, we have aspirations for that. Nothing is really clearly laid out as of now. Why we thought senior living is because the climate is proximity to the Aditya Birla Hospital. And also, the government is coming up with some friendly schemes for senior living, even if it is not converted zone. So we are exploring from those point of view, but too early to give any kind of clear details and numbers on this. Similarly, in Kalyan, we don't have, as of now, any land which is ready for development for the next few years. Whatever we had is all exhausted now. The large plant [indiscernible] all, it's too far-fetched and it will take a lot of time because a full production going on with more than 7,000 workers, et cetera. So that's not in the offing right count. So that's the update on Taloja and Kalyan.

One more question on Thane front, you had previously guided that there would be some sort of commercial projects also coming up. Could you share an update on that?

Yes. So we have this Birla Taranya, which is a land we got from Hindalco and we have a 50% investment from IFC, we launched a very successful residential first phase launch. We also have an aspiration to build a commercial portfolio there of about INR 5 lakhs. So we are in the process of designing that. but it would be either fully leased out or maybe partly maybe one tower, we may look at Strata sales faster cash flow and more demand and more frontal sales. So we are in the process of finalizing that. Once we get a clear picture on that ourselves as a team, then we'll be happy to disclose that. But definitely, there are plans to create at least about 5 lakh square feet of commercial.

In Thane?

Yes. In Birla Taranya.

The next question is from the line of Varun Julasaria from 361 Capital.

Sir, first of all, could you just update us on the cash from the ITC deal. When is it expected or what the current status on that?

Sure. The ITC transaction, the discussions with ITC are progressing well. As you are aware, we received a key regulatory approval, which is the competition commission of India. That application was made by ITC and government granted that approval. Now certain state-level approvals are pending, and we expect to conclude the transaction in this quarter. It's moving -- progressing well, and our estimation and expectation is that it should get completed in this quarter.

SP1 Okay. And sir, on the construction spend, sir, how is it looking like for the FY '27. And how much CapEx do we plan to spend on the BD's this year, sir?

So from a CapEx point of view, construction spend this year in '27 should be close to INR 1,000 crores. [indiscernible] I'm sorry, there's -- yes Yes. The construction spend this year -- our construction spend would be around INR 1,000 crores. As regards to CapEx, for land acquisition, we have a very strong cash flow and cash balance. Our operating cash flow is positive. We have almost INR 1,000 crores of mutual fund balances at a consol level. And we also have almost INR 1,300 crores of cash and RERA balances. So from a CapEx point of view, we have the adequate cash to make acquisitions. Further, we also have demonstrated partnerships with leading global players. So in case of any large acquisition, we have the ability to bring on partners as and when required for making CapEx for land acquisition.

Sir, for the construction spend, you mentioned INR 1,000 crores, right?.

So see, INR 31,000 crores includes all expenses. It's pure. I'm mentioning to you the pure construction spend because the project development outflow, which we show in 3131 includes operational expenditure that's around INR 920 crores for the current year. I stand corrected for the FY '27, it should be INR 1,200 crores. This also includes other items like approval costs, design costs, any deposit paid for the deal which we announced recently. So it's a combination of all of that. So 3131, which is there in the cash flow, that also includes Ind AS or accounting adjustment, whereby for revenue share. So that is not we have put in the cash flow. So in that sense, last year, we spent INR 924 crores on construction. This year, we should be spending INR 1,200-odd crores for construction.

Okay. And sir, on the BD front, since this year, we have not done any significant leading. So is it like is it the IRR or the expectation that is not allowing us to approve the BB? Or is it the land title or there's some other issue which is being holding up?

Hi Varun, yes, no, no, it's the combination of IRR, of course, we look for healthy IRRs because this is a multiyear project. Multi situations come up, cost escalations [indiscernible]. So we provide for all of that in our business plan. And we also look for a reasonable strong hurdle rate in terms of IRR. For outright, we look at least 16% and today JV upwards of 18%, 19%. But that's not really the hurdle because there are enough and more proposals coming. The only thing is that due diligence is you're very particular about what kind of risk we take. So some of them have happened, some of them doesn't happen. But I think it's always faced to be careful and prudent because, as I mentioned, the business goes through cycles, the business goes through different economic cycles also and real estate sentiment cycle. So we don't want to be caught hanging in any part of this risk we didn't consider. And therefore, it will come and kind of bite us back and put us back by a few years. It has happened. It happens in real estate all the time. We have to be careful to the extent possible while doing BD. But that's not the [indiscernible] BD is not something which we can keep on saying every quarter we can do so much because it's an exploratory thing with so many risks up there. As I mentioned, in the right combination of risk and return comes at any particular point. It's possible that we may do multiple projects in a single quarter or we may not do anything for a few quarters. So I think that we have also demonstrated that this happened in our -- in the last 2 years for us. So we are pretty confident, given our pipeline and the kind of projects you're pursuing that we are -- we'll be very soon announcing of them. The timing we can't, of course, predict very accurately. It's all estimated. But it's very probable that now that we have swung from the other side of the pendulum, certainly, we may announce quite a few deals together. So it's not lack of resources or lack of taking calculated risks. It is just the timing and all of these things should come together. So we are not really worried about that.

We'll take the next question from the line of Viplav Dev Verma from Emkay Global.

I don't see [indiscernible], don't see you have expand. I also don't see Arika or Mathura road. So Arika, I think there is a 1 Tower left, and you have sold everything excellent response and congratulations on that. So just wondering what happened to Arika and what is the status of Mathura road.

Yes. So Arika, I think of all the 7 towers we have sold now 6 towers, almost 100% performance. I would really like to do something extraordinary on the last hour. And I would like to wait and time it better in a much more market because in that market, and I've explained you in the past also, there's absolutely no supply. And this project has come out so well, [indiscernible] design well to really do something extraordinary on this. And I think we can improve our pricing considerably from what we have done today because the very unique positioning that project has obtained in that micro market. on the back of the Aditya Birla brand name. So I just want to kind of maximize the returns for that.

Mathura road?

Mathura Road, as we mentioned, in Delhi, we have been struggling with the approval thing. I think now we have found a way we can -- we are making progress there in getting approvals. But I don't want to take a chance and declare that will happen this year, but I'm quite confident that will happen early next year.

Okay. And my second question is on your -- beginning of last year, you gave some guidance of doing INR 15,000 crores of -- around that number in FY '28. And so for that, we need to have enough GDP in our portfolio. So do you think this -- I mean, I know you will be doing a lot of business development this year, I know that you're optimistic. So do you stick to that number? And would you be able to do enough BD to reach that number?

Viplav, I think, yes, we are very absolutely correct in saying that it's not just doing BD, but also the timing of BD is very critical in finding out which, how much sales booking will be done. Looking at this kind of trajectory that we're having today, it's quite possible that 15,000 instead of FY '28 may kind of slip over to FY '29. There is no definite possibility of that, though we'll be trying our level that to do this, but I think it's quite likely that it can move up from FY '28 to '29 as precisely for the reasons that you mentioned. But our attempt will be to continuously stack up our BD pipeline and to deliver on those.

The next question is from the line of Pritesh Sheth from Axis Capital.

Yes. So a couple of follow-ups. First, if you can highlight the status of the commercial projects that we are planning in Worli, essentially in Phase II and redevelopment of Century [indiscernible].

So Pritesh, our attempts are on to start these projects as quickly as possible. We are in the design stage, planning the layout, et cetera. It has to integrate with the rest of the planning locations. So we have already started doing that. We'll try our level best to actually start the construction from this year onwards. That's not a [indiscernible] again, sorry.

For both of them or just on one.

I would start with one of them at least, whichever goes of this thing, and we'll have to kind of plan our investments and our partners, et cetera, you should take both of them together or we should plan one after the other. How should we stagger it that is still under consideration. It also depends on how we get a partner for our projects. But whether we get a partner or not, we'll definitely start to commence the construction this year.

Got it. And second question on the cash flows. So we club the land spend construction overhead in one line called project development costs. Maybe can you, if you can help me with the split of this INR 3,100 rores that we have spent on project development cost, how much of it was for the land acquisition, how much it was for and pure construction and how much for the overheads? That would be helpful.

So maybe we can take that because a lot of -- I can take that offline, Pritesh.

The next question is from the line of [indiscernible] Bramabat from Choice Institutional Equities.

Good morning, everyone. So I have some...

I'm sorry to interrupt you, sir. Sir, your voice is feeble. We can't hear you clearly.

Good morning, everyone. My First question is on this other expenditure, which you have reported for Q4 FY '26, that is around INR 152 crores. So I just want to know what is the components of those other expenditure. And this is like one-off or we can expect this in coming period.

So we have an exceptional item in Q4 and overall for the full financial year. So there is a share of loss, which we have from the joint venture because the sales marketing expenses, et cetera, are not to be inventorized. And the other exceptional item is due to the labor code and also a provision we have made for one of the joint ventures in the textile business, which we've had that is the exceptional item. So both combined put together is around INR 39 crores -- INR 37 crores.

Okay. And so out of this INR 152 crores, you are saying INR 39 crores is the one-off related to labor code and the other -- the paper and fund business.

Amounts are in millions.

INR 152 crores. Okay. Yes, and also checking on this Khar development project. So have you signed DAA for this project or it just under the process?

[indiscernible] we have signed the DA. We have started the process of -- we've started a demolition process and all that.

And the last question related to collections. So our collection dips in this quarter Y-o-Y Q-on-Q. So any specific reasons like because of the delay in construction or getting approvals or like we haven't had any delivery during this quarter. So can you highlight a specific reason behind this?

No. So our collections have been very strong for the financial year. In fact, we did almost INR 1,000 crores of collections in the they are slightly lower than last year because we had major launches in March. So our collections for the bookings which we have announced in March would come in Q1 of the coming year. And as you are aware, we almost have a 97%, 98% collection efficiency. So whatever bookings we have done, those collections would come in the Q1 of this year. And the April collections also have been very strong. So that is saying that is the reason why there is the way the collections pan out.

The next question is from the line of Murali Krishnan from Sundaram Mutual Fund.

Just wanted to understand, so you are indicating that we are holding a few towers, Arika and other towers. But whenever we launch a project, those are almost like getting sold out. So what is our strategy, sales strategy while for a particular for larger projects. So -- and we are seeing that we are launching in phases also. So just wanted to understand the sales strategy.

So sales strategy, of course, is we tried to launch a certain number of towers, apartments, units, et cetera, depend creating a market assessment of that particular micro mark-to-market, how much is the demand that can be absorbed? What kind of strong velocity can we command? And what kind of ticket sizes we can deliver or we can launch in that market, which will get absorbed? So if you launch too much, then and we're not selling then, of course, there will be a cash flow mismatch because construction has to be done even if you sell 1 square foot. So we try to match the extent the best of our estimate how much demand is the market having and we should at least try to get about more than 50% of the product launched as sales. Also -- and we try to hedge the and manage the entire business plan cash flow by dividing the entire project into a reasonable size of phases if it is a large enough project. If It is not a large enough project, then we may do it in a single phase. Also depending on the which micro market it is. Now our aim constantly in sales is to get as quickly cash positive or cash neutral as possible. Once we have achieved that, and we see that the project is now completely in cash positive area is we'll try to maximize the margin, the EBITDA margins. But IRRs return on return on capital, return on capital employed is the first goal. So to that extent, we go after velocity. And once we achieve that, then we look at also maximizing the EBITDA margins. But that's largely which dictates our sales strategy.

The next question is from the line of Chetan Sharma from Systematic Shares & Stocks.

Am I audible?

Yes, Chetan.

And my question is right in the land bank. Okay. What the land bank we are having now? And what's the expected GDV we can expect from that?

I think we have sort of delineated in our presentation, the kind of plan we have about INR 70,000 crores, INR 72,000 crores of GDV today, of which about how much is launched about close to INR 30,000 crores -- INR 31,000 crores we have launched. The balance is our land bank. And of this, we have sold about 70%, 75% we launched. But all the details are there in our presentation -- investor presentation, you should check on to Slide #19.

The next question is from the line of [indiscernible] from AV Fincorp.

I see that you have a BD potential, the pipeline of INR 50,000 crores. Could you just throw some more light on this as to what part of this could get converted in this year? What projects are we looking at some more details on this?

This is confidential and not able to give more color on this. I wish that we can convert all of them. That will be -- but on how diligence progresses, the division goes well, then perhaps we can grab all of that. But it's quite likely that we may do about a percentage of it. Now how much percentage, I'm not in a position to to disclose.

Like no indicated number of what project out of this.

You really can't -- very difficult [indiscernible].

And also, I had a question, we were almost like on the rewards closing a INR 10,000 crores worth of BD project. Any update on that? You don't seem to have converted data progressing.

We are progressing. We are progressing on that.

That is a part of the INR 60,000 crore pipeline?

Of course, it is, yes.

The next question is from the line of Dikshit Doshi from Whitestone Financial Advisors Private Limited.

Sir, we have been invested in this company since the last 3, 4 years. And the 1 big reason is that our vision of becoming top 3 or top 5 real estate player in the country. But when we see our business development pipeline. So all the projects that we launched, we get a very good response. We have created a very good product. Our sales team is fine. We are getting good response. But when we see business development pipeline and see our competitors' business development, what they do. Do you still think we can become a #3 or #5 player in the country because our competitors are doing a big of, say, INR 20,000 crores, INR 30,000 crores, INR 40,000 crores. And we have done just INR 1,600 crores last year. So in terms of -- because until we do that, our sales pipeline will always remain lumpy.

I think it's a very good question Dikshit, one of the reasons I would strongly attribute to the outstanding success we had in our sales and launches is because of the way we choose or BD. If you had been casual about our BD selections, then I don't think we could have got such incredible success our launches and the way we priced it the kind of margins they are commanding. Having said that, of course, there's no question that we have to improve our BD. We have -- we are working on it. Again, as I mentioned in the past, that's not absolutely possible to do the in a systematic quarterly basis, depending on the risk and the kind of proposals we get, the kind of trigger due [indiscernible] we conduct some of them fail, some of them fall through, some of the move ahead. So several factors which have come together. So our attempt is there on that. And I wouldn't really hesitate to compare ourselves to anybody else. Each one has their own risk profiles, approach, strategy geographic market, market segments, so many variables are there. We are in a very particular clear segmented markets, very clear positioning with a very clear strategy. And in that segment, we are very clear how we are doing our BD and our approach is very clear. And we'll grow in that part, not get distracted by what competition is doing. However, we were aware that if there are any changes in our [indiscernible] would like to obviously back up and not be defensive about it. And we are very -- also very sure that we would we would like to be among the top real estate companies in India, but not just by size but also by reputation. It has to go both together, reputation and size, just by size is not something that we are going after. I hope I've been able to explain this a little bit shift.

And just a couple of small questions. Sir, how many units we would have sold totally in Niyaara 2.

Niyaara B, I think we have sold about net income of 119 out of 148. Okay.

And so regarding commercial projects, are we -- you mentioned something about the Worli, any other commercial...

We are looking outside of Worli also. They are having a strategy to really do premium commercial spaces across regions.

The next question is from the line of Vedanta from Unifi Capital IMA.

I would just like to ask 1 question on MMR that we have launched 2 projects here. And as a percentage of bookings -- as a percentage of GDV, we can see that we are less than 50%. And in other regions, that is NCR and Bangalore we are able to achieve greater than 95% of the GDV. So is there any specific reason for that, like demand or supply or are the launches were the launches were in the late of March -- at the end of March. And we can see in Q1 [indiscernible].

I think you have asked the question and answered it yourself. So I see that as we just launched the fag end of March and hoping that the whole testing will skew this year this year, I think, because of the Tower C launch and also a renewed focus on Taranya and Thane. I think we're seeing a very strong skew in favor of Mumbai region and Mama region this year.

Okay, sir. Got it. And regarding the Pune market, what is the situation that like there also, I can see that it's around 35% of GDV.

Yes. Pune is a steady market. It has its limitations also and strength also. I think it's a good market to be there, the steady demand not too much of a price rise, but because of the very nature of the commercial and the demand in that market and of course, from spillover from Mumbai and NRI demand I think it's a very good, strong market to be there. And we can't expect a good ground happening there. But I think steady, strong velocities we expect there.

The next question is from the line of Varun Julasaria from 361 Capital.

Sir, just wanted to know this quarter, we offered quite a few, like payment plans. So just wondering on how much of the proportion, like from [indiscernible] crores, how much was through these payment plans and how much was construction in plan?

See largely, almost a bulk of our proposals are all on construction-linked plan. And even if there is a sibling plan, largely, we try to ensure that by the time we finish the structure of the building, we try to get at least 60%, 65% of the money. So just barring here and there, depending on what that market trend is very strong trend what the others are doing in that market and strong demand from the market forces there. we may have to, at some point of time, given some sort of flexibility in payment. But again, the overall arcing a policy that we would like to collect at least 65% by the time we finish the structure of the building.

Sir, does this imply a bit of a slowdown in the velocity across the market? Or is it more to do with competitors offering it and...

If you look at our launches, we did about 9 launches last year. The bulk of them came in the last quarter because of no certainly because of the approval process. But if you look at our response has been outstanding. We have done 97%, 100% of launch sales. So I really can't blame that there is a slowdown. -- not in any of our projects. We have been exceptionally well taken back a lot, [indiscernible], launches, take it, Thane any of these markets you look at. So I really can't point a finger to any of our launches, there has been a slowdown. That is not yet reflected in any of our launches.

Yes, that's what we were thinking why this payment answer often when we are already clocking...

Market forces, and there has been this geopolitical development, which happened in the last quarter. People are not able to really take money, get money quickly into the market, it was all as things happen in the last quarter. So that's 1 reason why people found it really difficult to -- the desperate for making bookings, but the cash flow liquidity was a huge problem because the developments in the war scenario in Middle East and all that. So that generally impacted. So that's what we have to do some extensions in that market. Otherwise -- and all of them have come back very strongly this quarter with their payment plans. So I -- yes, so there is -- this is largely because of these recent developments.

Lastly, sir, on the construction material. Are we seeing any issue in sourcing and how much cost escalation we factor in like in that almost everything has gone up.

Yes. So because of oil prices and disruption in supply chains, there has been an impact on costs. But being a very prudent planners, we have already taken it in our contingency measures, et cetera. So as of now, we don't see any of them, but it's quite likely that if these situations continue, there could be an impact. but we have been prudent enough to take from reasonable contingencies and escalations in our business plans. But if these situation continues or deteriorates further, then of course, there will be an impact.

Availability is not an issue, right?

Availability is not an issue, but transportation is a bit of delay has impacted slightly.

The next question is from the line of Sinclair from Lalkar Securities.

Yes, I just wanted to know what is the potential for the senior living in -- for you all basically?

Yes. I think senior living by itself is an explosive market potential in India, huge demand as we all know, the India, the aspirational population is growing they have become wealthy comparatively much more wealthy than what they were in the past decade. They can afford a lot of things. They're looking for good convenience and luxury. And there's a lot of people in India who can afford it. And a huge part of it is people who are done well in life and many of them on the independent living, luxury living and a big part of it is in senior living. And they are looking for the same amount of comfort, which they can afford, and they always also want to be independent. I think there's a massive market for it. Now we are to find the right sizing and location for that. We see a huge opportunity in exploiting that. And we're looking very, very aggressively in that market, exploring.

Okay. Got it. SP1 Sir, any idea what would be the revenue potential?

It's too early to predict at this point of time. But I'm sure it will be very healthy and very strong.

The next question is from the line of Murali Krishnan from Sundaram Mutual Fund. The participant has left the queue. We will move on to the next question from the line of Viplav Varma from Emkay MK Global.

Sir, just 2 small clarifications. One is the commercial development world. What how many towers and total is it 1.3 million square feet? And what would be the estimated cost for CapEx of to be incurred for these projects.

Yes. I mean, I think we are looking at least about 1 single tower, roughly about 1.3 million, 1 million to 1.3 million in the process of designing that. cost is too early at this point to estimate. We'll have to come back to you on that, depending on we are in the positive design and then we do all the MEP and structures and all that. So it's very early stages at this point of time.

Entire 1.3.

Yes, it's 1 tower that we are looking at. It could -- it's in a range, it would be approximately about 1.3. It can vary a little bit here.

And second question is on the -- your launch pipeline. In terms of GDP, it appears broadly similar to what you had in FY '26 in terms of launches -- and in FY '27, pipeline also includes Niyara, where the expected disruption may be relatively lower compared to, say, Arika [indiscernible] Considering these factors, I'm assuming these factors are correct. Considering these factors, it appears challenging to expect -- I mean, the presales in FY '27 could be similar in the similar INR 8,000 crores or maybe slightly lower than FY '26 levels. How do you see this assessment?

I don't want to comment on that because, as I said, it's very difficult to give you -- in other words, you're asking for guidance which I can't at this point of time to give you. I only know that we have so much of inventory here, and we have to do the best utilization of that.

Thank you. Ladies and gentlemen, we will take that as a last question for today. I would now hand the conference over to the management for closing comments.

Thank you, everyone, for taking out time to attend today's call. We are very excited for the time to come and hope to come to you with a lot of more lot of news in the next call. Thank you very much for your interest in our company. Thank you. See you soon.

Thank you, members of the management. On behalf of HDFC Securities, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.