Ajmera Realty & Infra India Limited (AJMERA.BO) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Q2 FY '26 Post Results Conference Call of Ajmera Realty and Infra India Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Abhishek Dakoria from Churchgate Partners. Thank you, and over to you.

Yes. Thank you. 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 and Infra India Limited Earnings Conference Call for the quarter ended 30th September 2025. The call will commence with the opening remarks by our Director, 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 October 2025. The investor presentation and the press release based on the financial results adopted by the Board have been uploaded on the stock exchange website and can be downloaded from our company's website. 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. With that, I would now like to hand the call over to our Director, Corporate Affairs, Mr. Dhaval Ajmera. Thank you, and over to you, sir.

Thank you very much. Good evening, everyone. Hope everyone is doing fine. I just want to begin our discussion by sharing the overall sector updates, how the market is performing, how the real estate market is, thereby taking you over to what the company has been performed and what do we see as the future outlook. So just giving you an overall perspective. In our view and terms, the Indian real estate market is transacting to become a very matured market and is going in a steady growth in FY '26 following record sales achieved in FY '24 and '25 as well. So I mean, the outlook remains balanced with momentum always being favorable with credible developers. Obviously, what we witness and personally see is in the luxury housing, primarily in Mumbai per se is performing really well. But the mid-income and the premium segment has also strengthened. That is what we have been seeing, supported by -- this all has been possible because of the cumulative impact of the lower interest rates. The industry's ongoing consolidation reflects a more strategic approach. Developers are aligning new launches with market demand to safeguard margins. With approval processes and regulatory bottlenecks easing out, project execution time lines are also improving, reinforcing overall market stability. Investment activity also remains robust and with the capital -- increased capital deployment in office space and retail assets alongside continued traction in the land and development set acquisitions. So we are also seeing a good demand coming in not only in the residential segment, but also in the commercial and the retail assets as well. The ongoing festive season, along with the support of the government for the reduction in GST in many sectors has seen a good amount of liquidity following in the market, which has helped overall having a positive impact during the festive season. And the RBI's monetary of easing earlier this year was also expected to significantly boost demand in the affordable and the bid segments. So overall, the sentiments are looking positive, and customers are coming in the right way for the right launches. Coming to our performances at Ajmera Realty, I'm very happy and proud to say that this has been our highest ever quarterly bookings and has been having a great collection as well. In the late September, that is just a few weeks before the month was ending, we had 2 landmark launches. One is Ajmera Manhattan 2 at Wadala and one is Thirty3.15 in Bandra, which was a commercial project. Both of these combined JDV is about INR 2,100-plus crores and very happy that these launches have been successfully done. The market has responded great. And this has resulted in our highest ever quarterly bookings and showing it at INR 828 crores of advanced sales, thereby showcasing over 50% of our full year guidance coming in just these 2 quarters. So the overall performance by the market, from the people and also by the team has worked well to have great -- 2 great launches coming in the last -- in September itself. Ajmera Manhattan has witnessed exceptional traction. We've done -- about 38% of our inventory is already sold in less than a month of the launch. This clearly shows that community living openness and when you give a great product with an absolute -- has a perfect demand and it also gives a great stage for accelerated development for the remaining Wadala land parcel. Because we have witnessed that if 38% of our inventory from the launch is being sold just within a month or less than a month, then definitely, our launches for the future parcels also come in at an accelerated pace. Our commercial launch of Thirty3.15 in Bandra has also done good traction. We've sold about 5% to 6% of our inventory, and this was done just at the last week or the last few days of September. So overall, the project -- both these projects have been doing extremely well. Amongst our ongoing projects, the Ajmera Manhattan Phase 1, that's the first tower has achieved 89% of its sales. The construction is progressing well. We are almost about 80% to 90% of progress in terms of construction done. The next phase, that is Ajmera Greenfinity, has recorded 74% sales and even the construction of that is -- the structural work is almost completed, and we are now gearing up for finishing. Ajmera Eden has completed its structure and achieved 98% sales. Ajmera Vihara Bhandup has achieved 81% sales and it's on the 9th floor for the rehab slab, and we are on the plinth of the sale building. In Bangalore, our mid-market housing portfolio also is continuing to have strong momentum. Lugaano & Florenza nearly sold out with 97% of its inventory being sold, and we have received OC in 2025 -- September 2025 for these 2 buildings. Ajmera Iris has launched recently and has seen about 70% sales, while Ajmera Marina, which was launched in Q4 of FY '25, has seen robust demand in 68% sales and foundation work is in progress -- sorry, it's Q2 of FY '25. So while all of this, it has been on track, and we see a great momentum in terms of work and in terms of sales in our launch projects and in our existing projects as well. We are extremely on track, and we remain to see our estimated GDV of INR 6,400 crores in FY '26 of the launch pipeline, what we are going to do, and out of which 2 projects have already been launched of INR 2,100 crores. So looking ahead, our upcoming 7 projects with a combined GDV of INR 4,300 crores across 1.6 million square feet of carpet area. We are very confident that this will have a great run in both, in terms of booking and construction. On delivery side, we are gearing up to have almost about 1,000 possessions to be done in this financial year, out of which 533 homes have been already given, and I'm very happy to say that we have delivered 533 homes in the first half of FY '26. And we will continue to give the other balance in the next 6 months. This is also being supported by accelerated progress in all our projects, be it Mumbai or Bangalore. Reinforcing our focus on timely delivery and sustained value creation for all stakeholders. With that, I just want to say that the company is gearing up for an aggressive launches and aggressive construction for the existing projects. We have about 9 projects which are undergoing and about 6 to 7 launches coming in. Overall, 15 to 16 projects with a total GDV looking in and around INR 8,000-odd crores is what the company is looking to deliver, construct and sell in the next 3 to 4 years' time. I would like to hand over the call to our CFO, Mr. Nitin Bavisi, who will take you through the financial and operational highlights. Thank you.

Very good evening to everyone, and thank you for joining us. Before we move on to Q&A session, allow me to summarize the consistent operational and financial performance, what we have delivered for quarter 2 and H1 financial year '26. Coming to the operational performance, the company has achieved its highest ever quarterly sales with sales value tripling Y-o-Y basis, which is to INR 720 crores, which is sales adding up to INR 828 crores, which is 48% Y-o-Y growth. In H1 '26, sales volume terms, it is 2,93,000 square feet carpet area sold, which is also a 20% Y-o-Y growth and collection also with a 52% growth at INR 454 crores. Coming to the financial performance, revenue at INR 481 crores during the first half of FY '26, which is 20% growth Y-o-Y, supported by very consistent execution across the projects. EBITDA at 6% growth, which is at INR 139 crores and PAT at INR 71 crores with a growth of 2% on a Y-o-Y comparison. The company maintained a strong financial position with total debt of INR 690 crores as on the quarter end September 30, 2025, with a healthy debt equity ratio of 0.55x the net worth, well positioned to lever for its strong growth pipeline. Moreover, 24 basis point reduction in the weighted average cost of debt to 11.51% highlights our enhanced credit profile and disciplined financial management. Our revenue visibility has strengthened significantly, driven by, of course, the exceptional sales we witnessed during these launches, a couple of launches, and steady progress across our Ongoing and OC Received projects. The total visibility from this stands at about INR 3,599 crores, comprising INR 1,582 crores from the committed sales and about INR 2,000-plus crores from the available inventory to sell and revenue to recognize upon the life cycle. Additionally, our upcoming launch pipeline is also expected to contribute INR 4,357 crores, which is the GDV of the balance 7 projects. And that's why the overall revenue visibility is at a robust number of sub INR 8,000 crores with a strong growth momentum ahead. In terms of the cash flow, the net cash flow pretax post debt from OC Received and as well as the Ongoing projects is estimated to generate about INR 1,526 crores. With this concise summary of our business highlights and financial performance, I now invite your questions and look forward to further interaction. Thank you.

[Operator Instructions] We take our first question from the line of Dhaval Jain from Sequent Investments.

Sir, just one question on my side. I went through our annual report and it says that we have an investment in Bahrain and U.K. So wanted to understand if there's any outcome of these investments that we have made in these countries?

So, yes, we have started receiving and it has been while that we started receiving the repatriation from U.K. and the mix of the funding structure of loan and as well the equity investment is coming down sequentially. And on the Bahrain project, we exited and we received the down payment, and we do have the inventory entitlement there. And upon the advanced stage of the completion of this project, we expect this inventory to get monetized. And then after the repatriation of the Bahrain also is expected in about a couple of quarters from here on.

We'll take our next question from the line of Dixit Doshi from Whitestone Financial Advisors.

Congrats for successful launch of Wadala and Bandra project. So since both of the projects were launched at the fag end of the Q2, if you can just highlight how is the momentum in the October as well, if you can guide?

So as we said that Manhattan, we had launched just a few days of -- just at the fag end, but obviously about a week prior to the quarter ending, and we've had a tremendous response, and we got really good numbers coming in. We have now moved into the sustenance phase in Manhattan, and we are looking at that sustenance sales continuing over the next few quarters because the launch pipeline will, I mean, sales pipeline will continue there. The Bandra one is continuing to see the momentum, and we are looking at good numbers coming in from that region. But yes, of course, as we said, this is commercial sales. So that will have its time line going in. But overall, both the projects are looking at a positive end, and it is not that we want to get on a pause mode, but sustenance sales will continue.

Okay. Now my second question is regarding the pipeline of the project. So if you can just broadly update on, let's say, Vikhroli and Versova, which we are planning in this quarter. Where are we in terms of regulatory approval? And obviously, for the fourth quarter in terms of the Kanjurmarg, have we applied for the EC because many of the competitors have already started having the hearings in the EC. So if you can update on our project as well.

So Vikhroli, I'll give you project-wise. First is Vikhroli. Vikhroli, we are in advanced stage of getting approvals. Hopefully, in the next few days, I would say, or next few weeks, we should be able to complete all the approvals in place, and we should be able to start launching the project. Versova, we are also on track to get the approval. But obviously, because it's a society redevelopment, the approvals come in phases, after you get one principal approval, then you break the society and then you get the CC and then you get the RERA. So that's the process which we are following. We have got that NIC of approval. Hopefully, the breakdown of the building should start in the next 20-odd days' time by this month end or probably in this month. And then we should be able to get the CC and RERA as soon as possible.

Okay. And in terms of Kanjurmarg?

Kanjurmarg, we are in the process of getting approvals for -- different, different approvals from the collector and other requisite permissions which are required. That is going on where -- because it's an ongoing process and every time there are some challenges coming in for the approvals related to -- because different departments are getting involved in terms of collector, in terms of BMC, in terms of environment. So we need to mitigate all of this, and we are working on this. But we are very confident that we will have the basic approvals coming in place very soon.

Okay. And we have applied for the EC or it is maybe sooner, we will apply.

We are yet to apply, but we are all ready -- we have already started getting EC. ECs are now coming in regular time. Before EC, we have to apply for the Fire NOCs and all of that, which we have got. And I think now in this month, we should be applying for EC.

Okay. And in terms of time line, I mean, where are we standing for that which we are planning like from leasehold to pre-hold of the property?

Well, that is related to government where we've already applied and working on it. There is no fixed time line to it, but we are working towards getting that approval coming in.

Okay. And last question from my side. Since we are having a BMC election next month, so do you foresee any delay in the approval process because of that?

Yes, 100%, there will be. That is where we are pushing to get all our approvals, whatever for the project launches, which we need to do in place because once the BMC elections are announced and people will start getting busy, there will be delays coming in over there. But we are -- for all our launches, what we have planned, I think we should be through that shouldn't be too much of a challenge.

We'll take our next question from the line of Manas Agrawal from SANFORD C. BERNSTEIN.

A couple of questions. From a completion perspective or revenue recognition, Manhattan, one, when do we expect the milestones to be hit in terms of completion? That is a. Second, I was looking at MMRDA announcements, they've started to auction plots close to your plot for Wadala CBD. So I wanted to understand how rates are panning out. I think there is some discussion for you guys for a commercial also in the area in the future. So those are the 2 questions.

First part of your question regarding the revenue recognition, it is on the 25% threshold of completion on the cost basis versus the overall budget for the entire project. So that is the benchmark and the threshold. Once we cross that, then after the revenue eligibility starts. And of course, there are other conditionalities of the critical permissions for the construction to begin for the project is being availed. And there are -- within the project recognition, the sales, whatever achieved, the 10% of the collection also been achieved and those are the criteria and the eligibility for the revenue recognition. And that's why how the erstwhile guidance note and as well the percentage of completion method what we are following under the Ind AS as well. Coming to the MMRDA part. So very happy that when we look today at the way the MMRDA has taken out the auction and if you look at the reserve price, which they have put in, right, they are merely looking at least, I believe, INR 10,000 to INR 15,000 a square feet minimum on the land plus there will be construction cost plus there will be a premium cost. And thereby, the end product, what we see this coming out to be not below INR 50,000 minimum. So otherwise, I don't think it becomes too viable for a developer. However, we need to get into the details and we ourselves are looking out to get some tenders in that to understand what the nitty-gritties are. But overall, for us as a project, if we just put this as a benchmark, we are looking at the FSI cost of minimum INR 10,000 to INR 15,000 a square feet.

Understood. I think your first question that you answered was from Manhattan 2. My question was for Manhattan 1. Like when do we expect completion?

Manhattan 1 as a project, we should be able to complete, our target is by next year, December. But in RERA time lines, obviously, they are higher, but our target is between December '26 to March '27 is what we are looking at completing it.

We'll take our next question from the line of Saurabh Sadhwani from Sahasrar Capital.

Congratulations on the 2 launches. I just wanted to know your thoughts on the 2 metrics, the sales volume and the realization. These both have contributed fairly equally to the growth for the first half of this year. How do you see these metrics going forward? And what do you bank on for your growth in your sales value?

So as far as the sales volume is concerned, as we -- as you know that we've got this great traction coming in from the launches, and we are very confident with the kind of list what we have for our launches coming in the next half of the financial year. This momentum will continue, and it will also be supported by our existing projects, which are ongoing and sustainable sales coming in from that. As far as realization is concerned, I think we are looking at -- if you see the first half of last year, we were at about INR 22,800 a square feet. This time, we are at INR 28,000 a square feet. And this is primarily because it depends on the project to project and what is the value of the project or the price of the project what we are selling in. This time, Manhattan was the hero. So obviously, the pricing was INR 30,000, INR 32,000 a square feet. Next quarter, we are looking at Vikhroli being the hero where we will see a larger number of volume coming in sales. Obviously, the sales price will be a little lower. But that is completely variable in terms of volume and velocity of sales. So overall, we will continue to grow with this momentum and continue with our sales trajectory coming from all projects what we have envisaged. And I think the realization will be varying quarter-to-quarter based on the launches.

Okay. And what would be your progress on project additions this year?

So for project additions, we are working on 3 to 4 projects where our active work is going on. We are trying to have some regulatory clearances coming in at the basic ones. Once that is there, then we can sign up on a dotted line and take those projects in our books. So hopefully, we are looking at about INR 3000-odd plus crores of revenue targets coming from 2, 3 land parcel what we are talking to.

Next question is from the line of Vijayraj Solanki, an individual investor. Can you use your handset, please? Your voice is not clear.

It is good to know that from our Wadala project, Manhattan project, from 1.5 kilometer distance, there is a project of Lodha and they are giving 70% open area and we are giving 50% open area. So is there any challenges we are facing to sell our Wadala project, Manhattan?

I think there is some mistake in some terms of numbers. I'm not too sure about what the open spaces in Lodha are, but definitely for us, it is above 50%. So if I purely look at the openness, what we are, if I just give you one example of Manhattan, where we have currently launched, we have a podium of 7 acres, which is completely open and car-free what we are launching, and we are going to have only 4 buildings coming in over there. So technically, it's not 50%, but it will be in the range of about 80% or something. I don't know the exact numbers, but it will be around 80% openness coming in over there. So because of 7 acres of podium with complete openness, having 4 buildings standing on it. So I don't think it's 50%, it will be even higher. That's what I'm trying to say.

We'll take our next question from the line of [ Avi Shah ], an individual investor.

Yes. So one of my questions -- I have only one question. So it's regarding the 3 projects, Manhattan 1, Greenfinity AB and Vihara. The sales figure shows the same amount compared to previous quarter and the current quarter. So can you just throw some light like why is that reason?

So Greenfinity, Manhattan and Vihara, all 3 projects, if you go to see Manhattan has sold about 90% of its velocity or like the total sales, 90-odd percent have happened. Greenfinity, we are at about 74%, 75%. And Vihara also, we are at about 70-odd percent. Typically, what happens is that when you have reached that kind of a level, the choice of flats become a little challenging for a customer to buy. And that is where you will see some sort of lower sales coming in because there is less number of flats available and people want to have a particular choice of flats coming in. So that's where you will see some kind of numbers panning out to be almost same or maybe some customers who have probably not been paying and we want to cancel their flats and then rebook it with a new one. So we do not -- our system is that we do not -- we do a net booking. So even if someone's canceled it, we do not -- we cancel the number of flat and then probably add it right now only rather than doing it at the end of the project. So these are the 2 possibilities, and that's how we've just been doing it over here.

So can you just say like when will you able to sell the remaining quantity of flats remaining?

So Manhattan, we've left with about very few flats, about 40, 50-odd flats, which are there. I think by next 6, 8 months, we should be through. And for Greenfinity also around the same time. And Vihara, we will, probably a year or so, is what we are looking at.

Next question is from the line of Dr. Taruna Maheshwari from Prosperion Consulting.

This is with reference to overseas investment in Bahrain as well as in London, so we would like to understand, first of all, we would like to request you to put it a part of a presentation so that we can understand and we can track the cash flow. Second, in particular, I would like to understand that how far money we have received from Bahrain and in which area we will get it in particular?

So Bahrain, we have received about INR 35-odd crores and that too when we exited the project in a few years before in FY '22, and balance of the inventory entitlement of 10,000-plus square meters, and it is ongoing and advanced stage of the completion of the project. And we are expecting to monetize this inventory because we don't intend to hold on the inventory in that particular geography, and that was the moot reason when we exited the project. And yes, we will be receiving the repatriation and it will be appropriated against the loan and as well the equity funding, which is into the balance sheet. On the U.K. side, we have the similar structure of the funding, and we have been receiving the funds and we have been appropriating in the balance sheet on the loan and as well on the equity side.

I would also like to request you to present it in the presentation as a cash flow item to make the tracking clear for the investors.

It is part of the cash flow item, which is the -- in the piece of INR 330 crores expected cash flow from the other avenues, which are the part of this one and two assets which we intend to monetize. So it is very much part of the cash flow estimation within the INR 2,800-plus crores of the cash flow overall, what we have estimated. And yes, we have disclosed that one as well.

We'll take our next question from the line of Nilesh Sharma from Anantnath Skycon Private Limited. I'm sorry, sir, his line is disconnected. I'll move to the next question from the line of Karan Bhatelia from MAIQ Capital.

Congratulations for such a great set of results. Just going to one thing, what is the reason for the drop in the EBITDA margin for this quarter, if you could explain?

So basically, sir, it is because of the composition of the project, which are participating into the top line revenue recognition. And as you know that we are recognizing the revenue on the percentage of completion and on the sustaining sales of the ongoing projects what we have been. And most of the projects are being that of the Bangalore and as well the low margin -- relatively low-margin projects, that of the Vihara and such other project. So that's how the relatively a couple of basis points drop into the EBITDA one.

Got it, sir. And sir, second question, it's a very generic question I wanted to understand. I understand we have a very like a robust land parcel amongst ourselves. But since Bombay has so many redevelopment going on. So what are your views? And what as a company, are you looking for taking more such projects for redevelopment?