Ajmera Realty & Infra India Limited (513349) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Ajmera Realty & Infra India Limited Q1 FY '27 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Gaurang Chotalia, Lead Investor Relations. Thank you, and over to you, sir.

Good evening, everyone, and a warm welcome to you all. On behalf of the company, I would like to thank you all for participating in Ajmera Realty & Infra India Limited Earnings Call for the quarter ended 30th June 2026. The call will commence with opening remarks by our Director of Corporate Affairs, Mr. Dhaval Ajmera and will be followed by the business performance discussion by our CFO, Mr. Nitin Bavisi. We have already shared the operational updates of the quarter in the second week of July 2026. The investor presentation and the press release based on the financial adopted by the Board have been uploaded on the stock exchange website and can be downloaded from our company website as well. Please do note that some of the statements in today's discussion may be forward-looking in nature, reflecting the company's outlook and may involve certain risks and uncertainties that the company may face. I would now like to hand over the call to our Director of Corporate Affairs, Mr. Dhaval Ajmera. Thank you, and over to you, sir.

Good evening, everyone. Thank you very much. I hope everyone is doing fine. And I just want to begin the entire conference with giving you a sector update and thereby the company update and the numbers will be then run through by our CFO. The first quarter of FY '27, we all know that the global economic environment continued to shape by the geopolitical tensions, new trade policies and persistent macroeconomic uncertainty. Despite these external challenges, India remained relatively resilient, supported by strong domestic demand, stable macroeconomic fundamentals and stable inflation and supportive policy environment. Against this backdrop, Indian real estate continued to exhibit strong structural fundamentals, while the industry witnessed a seasonally softer quarter, which I would say, which was more cautious with sequential moderation in presales and collections following a robust Q4 '26 -- FY '26. The underlying demand environmental health remains healthy. infrastructure-led development, improving connectivity, rapid urbanization and a sustained preference for homeownership continued to support the momentum. At the same time, the sector is evolving to be more mature and organized with homebuyers increasingly prioritizing quality, transparency, timely delivery and credibility of the developer. Speaking about the residential market, we've witnessed to see a structural shift, although over this entire quarter, we've seen lifestyle and premium development seeing good demand coming across all sectors. Customers are increasingly seeking projects to offer superior amenities, stronger connectivity and long-term value creation with competitive advantage of established developers with proven capabilities. On the commercial front, healthy office leasing activity also is being driven by the GCCs, the flexible workspace operators and expanding enterprise continues to strengthen Indian real estate ecosystem, while supporting residential demand across key employment corridors. We are pleased to announce that in this quarter, we have received an INR 89 crores towards our share of investment and profit from a property sale out of the INR 330 crores, which we had mentioned in our potential cash flows, which are coming. Looking ahead, we remain optimistic about sector's long-term perspective, continued policy support and infrastructure investment and a stable interest rate environment continues with the ongoing consolidation in the industry are expected to strengthen the position of the organized developers. We believe that a modern witnessed -- moderation witnessed across the quarter reflects normal industry seasonality rather than structural slowdown. As India continues its journey towards becoming a developed economy, we remain confident that disciplined execution, prudent capital allocation and customer trust will remain the key driver of the sustainable growth and long-term value creation. Speaking about our company and the projects -- of our ongoing projects, our flagship luxury development, Ajmera Manhattan 1 has achieved around 93% sales with progress in finishing and MEP work. Ajmera Manhattan 2, other projects in Wadala has also witnessed an encouraging customer response with more than about 50% of its inventory sold while the excavation work is in progress. The next phase of Ajmera Greenfinity A and B has recorded 94% sales and is also fast -- steadily moving towards completion and getting occupation certificate soon. Ajmera Vihara and Bhandup has received 81% sales with RCC work in progress. Rehab wings have already been almost completed and the sales wing has also seen good amount of progress in Wing B and Wing E, the fourth floor and first floor, respectively. Ajmera Solis, our hero for the last quarter has seen good demand, enabling us to achieve 86% of its inventory being absorbed, while the excavation work has just commenced and it is progressing steadily. Our commercial project at Bandra 33 Fifteen has also seen a steady transition in terms of its inventory where [ 99% ] of its inventory has been sold, while the piling and the shoring progress is going on, and we are looking at faster execution at these projects. And our luxury collective item, which we launched last quarter, Ajmera One by Ajmera in Versova, we are seeing good progress in terms of its work and also inventory has been slowly and steadily moving by 3% of its inventory being sold as of today. In Bangalore, our mid micro market housing portfolio is also continues to perform strongly, whereas Ajmera Iris has seen 90% of its sales happening and also that is steadily progressing towards occupation certificate where finishing work is in progress, while Ajmera Marina has also seen a 69% sales in its entire portfolio, whereas the work has commenced up to second slab where the basements are done and the second floor slab work is in progress. Looking ahead at our near-term growth trajectory, we'll be spearheaded by unlocking immense, the remaining potential of the strategic Wadala land bank, which holds an estimated GDV of around INR 18,000 crores, including the boutique office Phase 1, coupled with the FY '27 launch pipeline of in the range of around INR 3,000 crores, which is giving us a massive GDV opportunity of almost INR 21,000 crores in this entire pipeline. During the quarter, we've added an asset-light project in Bangalore with an estimated GDV of INR 400 crores, approximately, further strengthening our development pipeline while maintaining our disciplined growth strategy. With this, I would now like to hand over to our CFO, Mr. Nitin Bavisi, who will take you over to the financial and operational highlights. Thank you very much.

Very good evening to all, and thank you for joining us for this conference call for quarter 1 FY '27. Before we move on to the Q&A session, allow me to summarize the consistent operational and financial performance what we have delivered. Coming to the operational performance first, Ajmera Realty delivered steady start to FY '27, reporting sales value of INR 146 crores with a sales active area of about 43,000 plus square feet sold out and collections being at around INR 173 crores for the quarter. Coming to the financial performance, total revenue for quarter 1 FY '27 at around INR 320 crores, which is up 23% Y-o-Y from [ INR 265 crores ] quarter 1 FY '26, driven by continuous project execution. EBITDA grew at 18% Y-o-Y to INR 94 crores from INR 79 crores in quarter 1 FY '26 with EBITDA margin at around 29%. PAT at INR 45 crores, which is also a 14% Y-o-Y growth over INR 39 crores in quarter 1 FY '26 with margin stood at 14%. Additionally, Ajmera Solis, which became the first time qualified for the revenue recognition during this particular quarter due to its fast track execution and as well the exceptional customer response since its launch. On the back of the strong collection and asset monetization, we have reduced our debt by INR 57 crores in this particular quarter from INR 737 crores, which stood at around 31st March 2026 to [ INR 608 crores ] as on 30th June 2026. As a result, we achieved a debt equity ratio of 0.47x as on 30th June 2026. Moreover, our weighted average cost of debt also came down and which is at 11.01% in quarter 1 FY '26, highlighting our enhanced credit profile and disciplined financial management. Our revenue visibility remains very healthy, supported by strong sales from recent launches and steady progress across ongoing and OC received projects. Revenue visibility from these projects stands at INR 3,846 crores comprising of INR 1,661 crores from committed sales and INR 2,185 crores from available inventory to sell and upon the sale, the revenue gets recognized and recorded into the income statement. In addition, our upcoming launch pipeline is expected to contribute about INR 6,500-plus crores, taking our overall revenue visibility to INR 10,000-plus crores, providing a very solid foundation for sustained growth as we move forward on our ongoing and launch portfolio. The estimated cash flow potential pretax and post debt on ongoing projects, upcoming projects and other revenues is estimated to about [ INR 3,380 crores ] over the life cycle of the project. With this summary of business highlights and financial performance, I now invite your questions and look forward to further interactions. Thank you.

[Operator Instructions] We have our first question from the line of Dixit Doshi from White Stone Financial Advisors.

So my first question is relating to the Kanjurmarg. So if you can update that where are we standing right now? And last quarter you have mentioned that we are planning some strategic tie-up or even we are open for outright sale or the 7 acre plot to generate cash flows and also it will unlock the value. So where are we in that -- have we finalize or anything we can expect in near team and also the status of the land conversion. So I think the right time is December, so by then can we expect something over there?

So we are working very aggressively on the land conversion process. But yes, there is -- it's a regulatory process, which we've involved the government as well as the other processes which we need to do. So we are working on that. Hopefully, our target is we should be able to achieve that very soon, hopefully, in the next 2 to 3 months' time. We are very confident that it will happen, definitely happen before the December deadline as we are aware of the same. And as far as the strategic tie-up is concerned, we are -- yes, we are in active talks with a few and discussions are already going on, site visits are happening. Preliminary discussions are on, but we and them principally have agreed that we will only conclude once the conversion is taking place. So that's how we are moving in terms of all the strategic requirement. So more things are moving parallelly on...

Okay. So you are saying that the land conversion has to happen before any tie-up we finalize?

Yes, because that's a value.

Okay. And that will be like whatever you are seeing that site visits are happening and all. So is it for outright or we are doing some joint JDAs?

Both. Once --few are outright, few are JV.

For 7-acre only?

Yes.

Okay. So 7-acre will not be a one single deal. It may be a 2 deal or something like that?

It will be a one single deal. A few of those are asking for an outright exit and some are asking for JV. So that evaluation is going on.

Okay. Understood. So -- but you feel confident that at least in 2, 3 months, the conversion thing should get resolved, because it's been a long time since we move something in Kanjurmarg. So just your thoughts on that.

Yes. No, no, we are while at the background completely working on the progress in terms of while the approval processes which are on. But as far as the other things which are required for faster execution once the conversion is done, we have already been keeping things ready as far as some tax implication matters are concerned or transfer of land or other legalities, whatever needs to be ironed out. All that is parallelly we worked on so that we don't waste time then and get faster things executed.

Okay. And parallelly any update on the 55 acres, because that also we are planning for launch in FY '28.

So yes, that work in terms of master planning has been frozen. Now we have moved to the Phase 2 of all the technical evaluation and all that. As far as also the infrastructure work is concerned, that work has also been planned up, and we should be able to start that pretty soon. So by the next year, FY '28 when we launch, everything will be in order.

Okay. Now, coming to this year launch. So for this year we are targeting INR 6,500 crore launches, out of which, let's say 50% is the boutique office. Now I have the question over there like, firstly, whether we are confident of launching that in third quarter and how confident are -- do you feel that considering the current demand environment you feel that, that maybe postponed and the relative question is, earlier your -- you are planning the INR 1,800 crore launch for boutique office. Now we are doing it in a single phase around INR 3,600 crore. I think this will be the largest project of [indiscernible] not only commercial but recent [indiscernible] So how confident are you... [indiscernible]

Sorry to interrupt you, Dixit, your voice is breaking.

We got the gist of the question. So Mr. Dixit, we are -- a, if we had informed last time only that there has been some approval changes, and that is where we've got an additional 1 billion-odd square feet of FSI, which has loaded in our Wadala project by virtue of which we've got another INR 3,000-odd crores of GDV increase. And what we see over the last so many years with the growth story of India, the GCC growth has also been significantly higher and also now with data centers evolving in a larger way in outside of the city, and other GCC is also erupting in a bigger way and larger way, there has been a good demand for commercial premises all across Mumbai because of its strategic connectivity all across Mumbai. And Wadala being enjoying this strategic connectivity, we are seeing a great demand coming for commercial spaces in this particular micro market because of its connectivity to the new airport and BKC. So hence, we are confident, and that is why we are launching. Earlier, we were doing about 4, 5 lakh square feet of office space launch. Now we are going to do about 8 to 8.5 lakh square feet of office space launch. And that is why we are seeing this larger number coming. And then while we internally speak to our customers, our brokers and other people, they are very confident about a good turnaround coming in this space.

Okay. And last question in terms of other projects what we have planned for this year, do you feel that most of it will be -- we will be able to launch because I think we have moved some of the time lines like Borivali moved from Q3 to Q4, even Pune moved from Q1 to Q4. So is it any regulatory issue or just a demand scenario?

No. Some are regulatory issues, some are -- I mean, most of them are regulatory issues, which have come in, and we have actually commenced the work at Pune. In fact, even you've got the RERA number also, but we will only launch this once we reach. We have strategically decided that we will not launch this at what you call an execution or a ground level stage or like on the excavation stage. But we will launch this at a stage where we will be able to create a better demand and pricing, which will come during the flint level. And hence, we moved from first quarter to the last quarter.

[Operator Instructions] We have a follow-up question from the line of Dixit Doshi from Whitestone Financial Advisors.

So my next question is regarding the project in Ajmera One. I mean this quarter, we were not able to sell any flat there. So how do you see -- because it looks like the demand is not there for that project. So if you can give some thought over there?

No, it's not like that. We are very cautious in our sales. We have brought this as a luxury collective. In fact, if you go to -- see, there is demand which is coming for larger areas than smaller area, and we are evaluating all of that. We are speaking to the required brokers. And this micro market sees a demand for such larger apartments only once they are probably being come up to an RCC's level where they can actually see the buildings coming up. And right now, we are under an excavation stage. So we are mindful of that, and we are aware of this. So we are not pushing what you call a desperate sale to come in. We are very confident and even the channel partners and our investors, whoever are across, they all are very confident about getting good numbers coming as the building progresses. So obviously, building progress has started. It will take because it is 2 basements and a flint and a podiums to come in. So that about a year or so will go. We will see subdued sales this financial year for this project. But over the time and next year when the progress of the superstructure is happening, we will start seeing traction coming in a faster way.