Ganesh Housing Limited ($526367)

Ladies and gentlemen, good day, and welcome to the Ganesh Housing Limited Q4 FY '26 Earnings Conference Call hosted by Go India Advisors. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Rajat Gupta from Go India Advisors. Thank you, and over to you, sir.

Yes. Thank you, [indiscernible]. Good afternoon, everyone, and welcome to Ganesh Housing Limited earnings call to discuss the Q4 and FY '26 results. We have on the call with us today, Mr. Rajendra Shah, Chief Financial Officer; Mr. Neeraj Kalawatia, Vice President Finance; and Mr. B. Ravi, Corporate and Financial Adviser. We must remind you that the discussion on today's call may include certain forward-looking statements and must be, therefore, viewed in conjunction with the risk that the company faces. I now request Mr. B. Ravi to take us through the company's business outlook and financial highlights, subsequent to which we'll open the floor for Q&A. Thank you, and over to you, sir.

Thank you, Rajat. Good afternoon, everyone, and a very warm welcome to all of you to Ganesh Housing Limited's Q4 and FY '26 Earnings Conference Call. Thank you for joining us today and for your continued trust and engagement with the company over the years. At the outset, as you all know, FY '26 had been a little problematic year with the West Asia crisis and the economic and geopolitical challenges, which has been reflected in our numbers also when compared to FY '25. Due to this uncertainty, the cost of input materials and many other things have gone up, as you all know. We shall see the impact of this in the coming times. FY '26, however, has been a very important transition year for Ganesh Housing. The reported financial performance moderated as compared to FY '25, but you know that FY '25 was an exceptionally strong year. However, operationally and strategically, this has been one of the most significant years in the company's journey, that is FY '26. Over the last 12 months, we have moved from primarily being a land-rich real estate developer to building the foundation of a much larger integrated development platform across commercial, residential, township and annuity-led businesses. The progress achieved across Million Minds Tech City and Malabar Retreat, coupled with planned One 91 Thaltej and Million Minds Phase 2 gives us increasing confidence about the next phase of growth for the company. Before I discuss the quarter and the project updates, I would like to briefly touch upon the broader Ahmedabad and Gujarat growth story, which continues to remain extremely encouraging. According to several industry reports, Ahmedabad remains among India's most affordable major housing markets with the EMI-to-income ratios significantly lower than most metro cities. Over the last 5 months, the real estate market in Ahmedabad and wider Gujarat has seen a strong mix of infrastructure-led growth, premium housing demand, institutional interest and some emerging cost pressures, of course. The biggest driver continues to be the combined impact of GIFT City, metro expansion and large-scale urban development. Here are the key developments shaping the markets. The recent momentum around global capability centers, GCC, in short, technology parks and service sector investments in Gujarat is particularly noteworthy. Over the past few months, we have seen increasing policy support and institutional interest towards positioning Ahmedabad as an emerging technology and innovation hub alongside India's established GCC markets. I will, of course, come to the Million Minds project in this context a little later. GIFT City has become the biggest real estate catalyst. The strongest trend is the GIFT City ripple effect. North Ahmedabad corridors have seen major appreciation in both residential and commercial demand. Developers are aggressively launching mixed-use developments around the Gandhinagar-Ahmedabad belt. The market sentiments now treat the Ahmedabad-Gandhinagar belt almost as one integrated economic zone. The third development is the Ahmedabad Metro Phase 2, which is materially changing the valuations. The operationalization and expansion of Phase 2 of Gujarat Metro Rail Corporation, metro network have become a major valuation trigger. The fourth is the luxury housing that has become the fastest-growing segment in Ahmedabad. One of the biggest shift in Ahmedabad has been this, and this movement is from value housing city to premium luxury living city. Micro markets leading to this, that is the Vaishnodevi Circle, the Ambli-Bopal Road, Shilaj, SG Highway and Thaltej. Developers like Ganesh are also pushing Ahmedabad's AI smart-enabled homes, sustainable architecture, branded residences and township style developments. Record residential launches have been there as the fifth point in Q1 FY 2026 calendar. If you notice, Ahmedabad has recorded a major spike in launches in early 2026. According to Cushman & Wakefield, residential launches touched about 6,745 units in Q1 2026. This was about 29% higher year-on-year. This indicates developers remain highly bullish on medium-term demand. The sixth one has been the infrastructure-led corridors, which are outperforming. The strongest appreciation those, as I just said, are the SG Highway, SP Ring Road Belt and the Gandinagar GIFT belt. This is due to better road infrastructure, industrial growth, warehousing and logistics demand, data centers and fintech ecosystem and township developments. The market is now moving beyond traditional core Ahmedabad towards planned growth corridors. The seventh development has been that the commercial real estate has strengthened once again. It is in demand because of the improving BFSI and fintech companies, hospitality demand, co-working absorption and retail-led mixed-use projects. Motera and SG Highway especially are seeing stronger investment interest. The last in this is that Gujarat is increasingly viewed as a stable long-term ROI market compared to Mumbai, NCR or Bengaluru. Ahmedabad is still considered relatively affordable. Rental yields around 3.5%, 5% are attracting investors. Appreciation has been steady rather than speculative. This is attracting NRIs, family offices, SME business owners, long-term investors and manufacturing linked wealth from Gujarat. Of course, there are certain emerging challenges of increased construction costs and project delays, but these are either manageable or surmountable. In conclusion, the Gujarat real estate story is now shifting from affordable Tier 2 city growth to institutional infrastructure-driven urban expansion. Coming to the financial performance. For Q4 FY '26, the company reported revenues of INR 122 crores, registering a sequential growth of 33%. EBITDA stood at INR 98 crores with EBITDA margins of about 80.7% and PAT came in at INR 61 crores with PAT margins of about 50%. For the full year FY '26, revenue stood at INR 539 crores and PAT at INR 316 crores. While these numbers are lower than that of FY '25, it is important, as I said earlier, to remember that FY '26 was an exceptional year. FY '25, that is -- FY '26 was an execution and transitional led focused on project advancements, leasing progress and preparation for the next phase of scaling up. We are pleased to state that looking to the strong cash flows that the company has, the Board of Directors have recommended a dividend of 15%, that is INR 1.5 per share. Let me mention that even during this transition phase, our margin profile continues to remain strong and maybe the strongest in the industry. This reflects the inherent strength of our land bank, disciplined capital allocation and prudent fiscal management. Our balance sheet also continues to be robust. While we have utilized moderate project level borrowings during the year to support expansion and development activities, our overall gearing remains extremely comfortable and amongst the lowest in the sector. The company continues to maintain strong financial flexibility supported by internal accruals, valuable land reserves and prudent execution. More importantly, the inherent strength of Ganesh in terms of its standing in the real estate space of Ahmedabad as well as the large land bank at all the happening places, as mentioned above, ensures that the coming year and the years thereafter will be very exciting. Especially with all the projects lined up and being executed by Ganesh Housing. Maybe it's an appropriate time to quote a Sanskrit shloka, which best describes this. [Foreign Language] What this literally means is that a diamond or a gem may lie at one street, while a glass may be placed on one head. But when it comes to true valuation, when the true test comes, glass will remain a glass and the value of a diamond or that of a gem will always remain. Correct, if you have to apply this to our situation, a temporary fall in performance on fortunes does not diminish the intrinsic capability and value. Now let me discuss some of the key project updates. As you know, Gujarat and Union government have been encouraging setting of IT industry in the state. Against this backdrop, our Million Minds Tech City project has achieved an important milestone during the quarter. As many of you are aware, the Honorable Union Home Minister, Shri Amit Shah, inaugurated the first phase of Million Minds Tech City. This is not merely a completion of another commercial building for us. We believe that this marks the beginning of a long-term integrated technology and innovation ecosystem for Ahmedabad. Million Minds Tech City development is over approximately 65 acres, as you know, with a long-term development potential of over 18 million square feet across commercial offices, residential developments, hospitality, retail and social infrastructure. The Phase 1, which is about leasable area of about 0.85 million, has been inaugurated and fit-outs are progressing well. We are pleased to state that leasing traction has continued to improve steadily. We are seeing encouraging interest from global capability centers, technology firms, hybrid workspace operators and innovation-led enterprises. Discussion and leasing progress have advanced meaningfully over the last few months, and we believe that the project would not only be one of Ahmedabad's landmark Grade A commercial development, but also that of India going forward. We also believe the timing of this project is strategically very favorable. Ahmedabad's emergence as a GCC destination is still at an early stage, but the direction of growth is becoming increasingly visible. Large infrastructure developments, improving connectivity to GIFT City and the broader push towards service sector expansion and creating a strong long-term foundation for technology-led commercial real estate in the region is growing. Almost 60%, 65% of the leasable area of Million Minds Phase 1 has already been laid out or in the last stages of being finalized. The number of inquiries of these lease spaces after the inauguration on May 17 has jumped multifold, allowing us to believe that the remaining 35%, 40% of lease spaces should be quickly filled up. On to Malabar Retreat, the project continues to progress steadily and is now approximately 79% complete in all the space. As the project moves closer towards completion, we are witnessing increasing traction and stronger customer engagement, which is a trend in premium residential developments nearing delivery stage. Against an overall project value of about INR 450 crores, bookings and sales commitments are there nearly about INR 175 crores, and this has been growing day on day. And the traction continues to improve steadily as the project approaches completion. The One 91 Thaltej project is in the planning and design approval stages, which is in a very advanced stage. We should be able to tell you more about it specifically in Q1 FY '27. As you know, Ganesh Housing today has one of the largest strategic land reserves in Ahmedabad with approximately 518 acres of fully paid land reserves across multiple high-growth corridors. Certain new land acquisitions and negotiations are underway and would add to this number in the times to come. We are acquiring significant land parcels in some of the most exciting spots of Ahmedabad. This is in line with our strategy over the years of identifying growth corridors well ahead of the market and building long-term value patiently and prudently. Whether it was SG Highway earlier or the Ahmedabad GIFT Gandhinagar corridor now, we believe that the long-term urban expansion of Ahmedabad continues to create meaningful opportunities for well-positioned developers with execution capability and land availability. At the same time, we remain disciplined in our monetization approach. We concentrate and to continue to focus on value creation rather than volume-driven transactions. Our land monetization strategy remains flexible and calibrated depending on market opportunities and infrastructure development and the pricing trends. For example, at Godhavi Township till now, only approximately 46 acres have been monetized at healthy realizations averaging around INR 14.1 crores per acre, and there is huge possibilities lying ahead in this. Another important aspect of our business evolution has -- is the increasing contribution expected from annuity income over the coming years. With Million Minds now nearing operationalization, Ganesh Housing is entering into a new phase where recurring lease rentals will gradually complement development income and land monetization revenues. We believe that this will strengthen earnings visibility and improve the overall quality of our cash flows over the medium to long term. Looking ahead to FY '27, we believe it is going to be a very important year operationally for the company. We expect commencement of lease rentals of Million Minds, of course, probably completion of Malabar Retreat by the end of this year and booking of the sales thereof, which is all the project sales and further progress of our monetization of appropriate land parcels wherever the opportunity arises. Permit me to quote again because this is the right time to quote another shloka, which says, [Foreign Language] which means, I do not grieve for what is gone. Nor do I obsess over what is already done, that is the past years. I do not look at tomorrow with anxiety or worry. My present is joyful and full of life. And from this point onward, the future is going to be incredibly wonderful, grand and exciting. With that, I would now request the moderator to open the floor for question and answers. Thank you.

[Operator Instructions] Our first question comes from the line of Prit Nagersheth with Wealth Finvisor.

The thing I wanted to better understand is, do you have any kind of guidance on the top line as well as EBITDA numbers for FY '27?

We shall be doing that, Prit, in this results -- Q1 results when we announce that, we'll be telling at that time. That will be more clearer then.

So what is the reason why the company has been shy of giving guidance for the last, I would say, 4 quarters running. Every single quarter, I think we get told that the next quarter, we will be able to give a guidance. And then when that next quarter comes, that is further delayed by a quarter. So what's happening on the ground because of which the confidence isn't there to give any kind of guidance?

No, Prit. I would want to correct you slightly on that. And that is we give guidance for the full year at the beginning of the year, for the next year, that is. And for FY '26, we have given guidance at the beginning. And we had said that maybe quarter-on-quarter, whether we'll be able to meet up to the guidelines of FY '26 or not, that we had to say for the next quarter. But year-to-year guidelines, we always have given at the beginning of the year in Q1, and we'll continue to do that in for FY '26 also -- sorry, '27 also in Q1.

So is this because the launches see every quarter also, if you look back, right? Every single quarter, question gets asked on when is this project launching? And the answer is, hopefully, the next quarter. And let's say, Thaltej One, for example, 4 quarters running, it's been moved to a quarter ahead. Now what is really happening on the ground? If you can shed some light, is it possible that we'll see a launch this year? Is it planned for next year? How do you see this, if you can just give some color?

Sure, sure. See, the kind of projects which we are thinking about can keep changing as to what can come which quarter. And it also depends upon the various developments which keep happening in and around that area. And therefore -- and of course, the planning and approval process itself of various large projects takes time. With this background in mind, what I can definitely say that is that even for One Thaltej, we have looked at various configurations, various things which have been going on in that and are coming to the best alternative, which is good for the company in the longer run. So therefore, we will be able to exactly tell you, as I told you in my speech, as to very be specific on that in Q1 for sure. And that will be the time when we will be able to tell you exactly what is coming up in that project. Leaving that aside, this year, for sure, we are looking at because of the success which is there in Million Minds Phase 1, we are looking at 2 projects, which will be coming up in -- that is one commercial of Phase 2 in this year itself, maybe in Q2 and one residential project in the same one, which has not been done for some time. As you rightly said, we had not done that. That will also be coming up in Q3 of this year. It all develops -- doesn't depend upon just launching a project or something. We actually look at what are the developments which are happening in the surrounding what is best for the company in terms of various things which are happening, whether it is the profitability, whether it is the configuration of the project, so many things have to be taken into impact before we can actually launch. Why that is there is we have had a bad experience years back when we had launched and when it was not there, and it could not be sold for a long period for various reasons. These days, if you notice any project which has been launched is being launched with a very clear understanding of the time frame within which it will have to be completed and also given away in terms of the possession. So because of certain things, I agree with you that we have delayed certain launches, but it has always been for the good because ultimately, the land at which the area where we are trying to give any project has always been appreciating only likely to give us better value than what has been done in the past year.

Right. No, I understand that. See, the challenge is that there are other companies also in the same market, say, another listed peer. And these companies continue to launch projects and they are able to successfully do that, take the market, gain market share, while Ganesh continues to not launch and hence, thereby lose market share. Yes, your value on land increases. But for minority shareholders, that really doesn't add any value because in the near term, at least these financials don't add up or they don't come. So I think the concern was that fine FY '26 went as a transition year. But hopefully, in FY '27, we will see some launches.

Yes. FY '27, as I told in my speeches, would definitely comprise of 3 or 4 very different kinds of incomes for the company. And that's the reason why I said, let us wait for Q1 to be able to give you the guidance, which we are thinking about because some things will be fructifying by that time. And in terms of the market share in all, let's see, Ganesh Housing slightly sits on a different platform in terms of the other valuable companies in the market, worthy competitors that is. And that is the land bank itself. Now most of the time, the land bank being one of the -- also the verticals as we keep telling for the last 3 years, has been giving us enough value, revenues, profit and cash flow to be able to come to the stage where we are in. And that is one thing which we have monetized as and when we felt the opportunity to be right. Projects are another way of monetizing this land bank. And that comes with the various other things, that is whether there's a visibility, whether there's enough demand at the price at which we're going to launch and what makes more sense of that or the land monetization at a particular spot in time. So this is the reason why things might have been very different from the other real estate markets. But yes, to conclude on this, as you rightly said, FY '27, as I mentioned in my speech also, will be a very different year.

The next question comes from the line of Deepesh Sancheti with Maanya Finance.

Am I audible?

Yes, go ahead.

Yes. You mentioned 60% to 65% of your leasable area is either leased or under finalization post inauguration. Could you quantify the expected rental yield or annual annuity potential from Phase 1 once it is stabilized?

Yes. We had -- if you recollect, we had talked about about INR 72 crores being the annual lease revenues from Phase 1. At this point in time, with the traction which we already have and the various other inquiries which are in the process, we believe that we'll be exceeding that INR 72 crores, maybe even towards INR 75 crores or INR 77 crores. So I think we will not only achieve, but we'll also be probably exceeding INR 75 crores of rental income. And if things go well, well, it could be towards the higher part of INR 70 crores rather than being at INR 72 crores.

This is for the full year, right?

Yes, yes, we are talking about full year. Yes. FY '27, you might have a partial year only, but from '28 onwards, it will be the full year, yes.

Great. Okay. Ahmedabad is transitioning from affordable housing market to a more institutional and infrastructure-led real estate. How do you see Ganesh's position evolving relative to the national developer entering Gujarat?

No, we have been also -- if you see the Exotica project, which we completed and the Malabar Retreat, which we are doing are all on the premium side. So we are also looking at premium housing projects only. Even the one which is going to come up in the 65 acres Million Minds space, which is a nonprocessing, which I said phase, the first residential will be launched this year, also will be in a similar spot because that's what will actually give us the value. So we do believe that we have been in more or less always in that range. We've never been affordable housing that way. So we have -- we are in the mid segment and now we have moved to the premium segment.

And could you discuss the expected CapEx intensity for the upcoming phases of Million Minds and One 91? And how do you intend to fund these projects? Is it through internal accruals, construction finance, strategic partnerships or a preferential?

So One 91 Thaltej has a sale value of INR 2,100 crores and the cost of about -- so include land cost is about INR 1,500. And most of the land is already paid for. So that the construction cost is going to be incurred there on. And that's the reason why we'll have enough money from our internal accruals itself to develop that project. Even the housing projects, which we are talking about in Phase 1 of residential in Million Minds will -- that, of course, the cost and all that will be coming when we actually complete the plan and which when we launch it. So that may be about 2 quarters away from now. And therefore, we'll be able to tell you exact amounts therein. But what we have done is that we have a very good combination of our internal accruals and the sales from completed projects, which give us enough money to do this project construction on our own, like what we have done, Million Minds. That entire thing has been done from our internal accruals. We are not shy of borrowing the small amounts, as I always have mentioned in all our earlier addresses, that with a very good decent leverage, we are not shy of taking it for the right purposes and for expansion one. So you might see some debt in the current year, coupled with our internal accruals to fund all these projects.

Right. And when you say FY '27 is going to be a great year for the company, do you expect the sales to go similar towards FY '24, FY '25?

Rather than giving a number, let me tell you what can happen. There is this lease income, of course. Malabar Retreat is at the stage of which is right now, it could be completely handed over and completed by FY '27. That's what is targeted at this point in time. If that happens, that's going to be a big value for all project sales itself. Whatever number of INR 450 crores is the sales value, right? So that is going to be one big number of just the project. And of course, we have very good traction on the land side, which has been one of our very, very major verticals. That also is likely to be coming up in this year itself, and there will be income from that. So rather than give a number, which, of course, I'm going to give a guidance, as I told in Q1 FY '27, that is a month or 2 from now, I would say that these 3 sources of income are going to be leading towards the revenues that we are projecting, which we definitely believe to be better than what we have just registered.

Right. And from -- when you mentioned that INR 450 crores is the GDV, how much of it has been recognized in these in the last year, I mean, in FY '26?

No, we -- because it's only -- only after completion can be recognized, we haven't recognized anything right now. It's all on -- and advances which received is to be in work in progress or it will be in the stock.

The next question comes from the line of Majid Ahamed from PinPoint X Capital. sir?

Am I audible, sir?

Yes, yes.

Sir, at Godhavi Township, only 46 acres have been monetized so far at INR 14.1 crores per acre. Given the infrastructure development underway in the Ahmedabad GIFT City corridor, what is the management's view on the embedded value potential of the remaining land parcel?

See the remaining land parcel would be there to the tune of almost 400 acres or so, right, Neeraj?

411 acres.

411 acres. And 411 acres, given all that which is happening in that area purely on a value of land itself at the prices at which we have sold can only be increasing beyond that average price of INR 14 crores per acre. So the potential by itself of Godhavi is extremely high. We have been monetizing that as and when we get a very good traction on and a good deal. That kind of a deal should be continuing in this year also. So other than that, of course, if things go and because the entire development of the sports conclave and all, that whole thing is happening in that side only. And therefore, if it happens that the demand for the other kind of housing and other things are increasing in that area, then rather than just the land part, we will actually be doing development of projects also, which will be only increasing the value of that land apart from the value of land itself. So I think that's a very good potential we have as a huge land bank. And we have seen good traction in the years gone by. And we continue to believe that will happen in this year and the next year also.

Okay, sir. Got it, sir. And sir, for Malabar Retreat, how much of them have been recognized in the income statement?

No, Retreat cannot be recognized till the time the entire completion happens. We believe that FY '27, the completion will happen and the entire thing would be recognized because accounting standards don't allow us to do completion method. It only after the completion, it happens. So nothing has been recognized.

Okay, sir. Got it, sir. And sir, about -- in regards to Million Minds Tech Park, so when are we expecting the lease rental to come in, sir? And how much are we expecting this for this year?

The lease rentals should be starting from Q3 -- Q2 -- Q3, I think, of this year, that is October onwards because the project is already complete. The BU is just around the corner. And of course, the building permission -- the construction completion permission has already been received, building completion that is from the corporation. So BU is a formality on there on. After that, the fit-outs are going on. So I do believe that the rentals will start off from Q3 for sure, if not end of Q2 itself. But that will be partial for this year. And I think the full year's potential of INR 75 crores will be what we see from 1st April '27 onwards.

Okay. Sir, any plans to spin this off into a separate REIT model, REIT structure kind of thing? Do you have any plans to make the annuity model linked to that?

See, that is something which is always financially to be evaluated at appropriate time. So the moment these lease -- 100% lease are done and also there is a year or 2 which goes by, I'm sure that such kind of a premium building, which is I mentioned, one of the top buildings in the top building in Ahmedabad and some of the -- one of the few in India, we are sure that with full lease rentals kicking in, there will be plentiful opportunities of trying to monetize that. So you may -- next 2 years can be just monetizing the entire Phase 1. We never know. But yes, we are not -- I mean we thought about it at this point in time because we are concentrating on completion of complete lease. But yes, that can always be there on the cards.

Got it, sir. And sir, the presentation mentioned that the expected free cash flow generation of INR 9,950 some planned projects, including capitalized projects, SEZ assets. So could you help us understand the assumption behind this estimate and the expected time line?

See, all this calculation has been done on the current prevailing rate, both on the SEZ future development in terms of the commercial as well as the residential part as well as the potential development of the township from the current prevailing rate. And also, we have considered the Thaltej project also with the expected free cash flow from that project. So all these numbers, which is coming out in terms of INR 9,950 crores are on a conservative basis. Though with the progress of the time, the actual free cash flow will be increasing given the consideration of the increase in the prices in the year-on-year.

Got it, sir. Because as per your assumption, I was looking that the number, the realization is coming around INR 5,300 per square foot. So that's what I was assuming very conservative.

That's why I'm saying that we have considered as a prevailing rate on a conservative basis. So that [Foreign Language] at least we will reach to this level in the future.

Okay. Got it, sir. Sir, I just want to understand like how did we compute the free cash flow margins? Like what are the assumptions? If you can give some color, that will be helpful.

Largely free cash flow as of [Foreign Language], where we have considered all the invested part of the land as a sunk cost. So that the monetization of that part also will come from the revenue side as well as whatever the margin you will be making from the -- over the construction costs. So your free cash flow will be higher than your profit.

Sir, finally, just want to know about our Tishman Speyer partnership, how are we looking to -- how is it going currently, sir? And any future development with them?

That was completed for Phase 1. That was -- we had only taken them for Phase 1. And we look at it in terms of whether we need them for Phase 2 or not. That point has not yet been evaluated. But yes, the partnership with Phase 1 went well, and we'll see how Phase 2 is launched.

The next question comes from the line of [ Satyam Badera ] with [ Avinash Mentor Research ].

I have a couple of questions. As you mentioned, new land acquisitions are underway. Could you please elaborate on the strategy here? Are these acquisition around the existing clusters? Or are you entering entirely into new micro markets?

No, we are not entering into all new micro market. That much I can say. But I can add that it's not exactly adjacent to where we are having also those possibilities are never ruled out. But at this point in time, the major acquisitions are happening in the most happening places in Ahmedabad, all the places where I had mentioned in my speech also where a good development is happening. In terms of the infrastructure growth and the commercial as well as residential, these are the areas where we are acquiring good land parcels in the process at this point in time. I will not be able to disclose the exact area because, obviously, it's very sensitive in terms of what's the game plan of acquisition of land is always a sensitive matter. But I can only tell you that these are going to be at a good high-growth markets. That's what our [indiscernible] point has always been identifying and buying at a price which can always be giving us multiple growth in the years to come, which is what has led to where we are today, and we'll continue to work on those strengths of ours. So in short, at very, very attractive prices at very good locations. And all of them are in the current happening places, not in micro markets.

Okay. Okay. My other question is on Million Minds Phase 1, can you help us to understand the nature of the current leasing pipeline? Specifically, what percentage is under signed LOIs versus advanced negotiation? And what kind of tenant profile mix are you seeing between these two things for working operators and technology firms?

Well, the total, what I mentioned was around 60%, 65% is already leased and -- or just in the final closes of lease being signed. But as you know, the lease agreement will be done once the BU is received, but all these are LOIs at this point in time. We are seeing traction for the balance also. As I said, a lot of inquiries happened after the building was inaugurated. And if you see that, it is a very good structure is standing there, very attractive. So a lot of inquiries have started off in that. So we do believe that the balance also will be quickly closed. This is a good combination. It's not -- It's a co-working spaces, the GCCs, the IT, IT SEZ, all these kind of people are there who are either present or likely to be present in the future in terms of the balance lease. So we would see a good all-round development in terms of the occupants. I think the Phase 2 will be very different again. That can be the large GCCs and all that. But at this point in time, we have a very good mix of technology companies, the co-working spaces and innovation-led enterprises and such kind of people, which includes, of course, technology firms also.

Okay. Okay. One more question is Malabar Retreat is now 79% complete with bookings of INR 175 crores against the project value of INR 450 crores. As the project is near completion, do you expect any meaningful acceleration in pricing and bookings?

Yes. Every day, there is some movement or the other. And once the entire structure is ready, and you can see that there's a lot of blustering and those kind of work, the finishing work which is going on. The more the visibility of that happens, the traction increases. So we do believe, as I have told earlier also that by FY '27 end, we should be able to complete the entire -- not only booking of that, but also handing over.

The next question comes from the line of [ Ketu Vora ] with Monarch AIF.

I had a couple of questions. Could you help me with the land purchased in Q4 in acres?

We have roughly acquired around 7 acres of land during this quarter, last quarter.

Okay. All right. Sir, secondly, I see in our balance sheet, our loans have gone up compared to FY '25. Could you help me understand what are the loans -- these loans exactly taken for?

In the last quarter, the last week of FY '26, that is in March, we have taken about INR 150 crores about loan from -- on based on our leases, which were there LOIs, which were signed. So it was more of an LRD kind of a facility that we took on our Million Minds. This was for various opportunities which are coming up, both from our construction and as well as various business opportunities in terms of acquisition, which is likely to be in place. So till now, we completed everything with our accruals. And we thought that when an opportunity comes in, we should not be shy of borrowing. So we took a small INR 150 crore LRD-based loan. And that's the reason why the borrowing went up in the balance sheet.

I also see that short-term borrowings went to INR 149 crores. So what is that pertaining to?

These are largely the loans from the group companies and entities.

So what new entities?

Group entities, these are largely from a group companies...

Unsecured borrowings.

They are classified under the short [ term ].

All right. Sir, so is it now that we are going to see more residential unit projects coming up in FY '27, can we please expect a separate presales figure in our presentation and the press release? And along with it, if you could also just please add the LRD percentages now that we are open to taking up more debt. So that will be very helpful for us to analyze.

Sure, [ Hazel ]. We'll keep that in mind for sure. I think that would be more appropriate in the Q3 onwards. But yes, we take a suggestion. We'll keep that in mind.

Sure, sir. And sir, just one last question. In our Godhavi land parcel, are we open to also considering JDs with other developers since we have access to massive land that would also help us with developing it?

Yes. I mean the opportunities can never be ruled out. What you have said such kind of opportunities can come in. Till now, we have never done that, frankly, in terms of joint development and all. But when it comes up with a very good project, some real good brand comes up, we cannot rule it out. In the future because opportunity in business should always be tapped. That's all we believe and never say no to anything for that matter. But at this point in time, there's no such proposal.

The next question comes from the line of [ Sandeep Agarwal ] with [ Samarth Singh Investment Advisory ].

Firstly, congratulations on the operational progress across Million Minds and Malabar Retreat.

Thank you.

Okay. So my first question is like what -- with Million Minds like nearly operational, what could be the company's preferred capital allocation priority over like next for 2 to 3 years, next project launches or like land acquisition or scaling commercial assets?

It would have to be a very good mix and blend of both. While on one hand, we have to monetize the land with good development and especially in that Million Minds area, of course. And also, on the other hand, we might also sell, monetize the land as and when an opportunity comes in, but land being the raw material, which is always the case for any real estate development, the acquisition of new parcels of land will always be parallelly always of top importance because raw material has to be always there in the pipeline. So we do believe that the way the plans are there for the next 3, 4 years, Million Minds, Phase 2 and 3 of commercial, residential 1 and 2, these are the projects, 4 more projects which are definitely likely which we already have put earlier also, but we will definitely launch those. On the other side, whenever land opportunity comes in, in terms of Godhavi or any other place, we will monetize that land. That will be the project side, the projects plus land together. That's the revenue side. On the acquisition side, as I said, we have already in the process of acquiring more land, and we'll continue to do that in the future also.

Okay. So basically, you are saying that it will be a good blend and the land acquisition will be of the top priority?

Land acquisition and project execution, both will be of a top priority. Whichever time, it will be only a matter of time. Today, there may be an opportunity of both coming up together or today, it will be only land acquisition. Tomorrow, there will be only a project execution, which can be a top priority. Both these things are equally to be weighed.

Okay, sir. I have one more follow-up -- one more question. Like what kind of prelaunch interest you have witnessed for like Thaltej 91? And how does it compare with the management's initial expectation?

See, prelaunches are -- this is a project which is being done by known people that is -- and a very good brand and who have got a very good track record of execution and delivery. And therefore, in terms of booking, these soft bookings, a lot of people will always be interested in trying to say, come into such an area which is there as well as such a building. Having said that, the soft launches can be only told when the project is launched and when it is converted after the RERA, only then we can actually be able to tell anything on the quantum and all. So we'll have to wait for that.

The next question comes from the line of [ Arvind Mahadevan ] with [ Equi Venture Capital Advisors ].

My question number one would be in Q3 itself, the LOI received with regards to Million Minds were close to 60%. And in Q4, we are just at 66%. So can you give me an idea about why the growth rate has been so slow or the spurt of interest has been so weak with regards to Million Minds itself?

Yes. One, the earlier period, there were only just inquiries. And now that we are talking about, they are either already LOI signed or in the last stages. So therefore, the quality of that is, leave alone the percentage, the quality of the certainty is much better. That's one. And second, Yes, the percentages haven't dropped -- haven't increased dramatically only because of, one, the completion had to be seen. And the second, more often than not, very large ones who are there maybe sitting on the fence at this point in time would come in only when the BU is there, which is -- that is building the use certificate, in particular, though every other details permissions are there. So that is happening even as we speak, maybe today or tomorrow, that's as close as this. I think after that, this will jump. Especially after the inauguration, we saw the kind of inquiries which have jumped, the kind of footfalls and inquiries, we believe that people really want to see that everything is in place so that they can move in tomorrow, that kind of an opportunity. That's when it will really increase tremendous.

Yes. Fair enough. Understood. Apart from that, sir, I mean, since Malabar would get completed, there's a good possibility of Malabar Retreat getting completed this year. So there would be a significant jump in revenue for the -- of our current year for FY '26 per se. But sir, what about the future projects? For example, Phase 2 of Million Minds, when can we expect it to be commissioned by quarter 2 or quarter 3?

Of commercial, you're talking about, right? Phase 2?

Yes, sir. Yes.

Yes. Phase 2 is quarter 2. Phase 2 of Million Minds is quarter 2. The residential will be in quarter 3. Actually, the Phase 2 can be even preponed earlier. If we think that everything is placed, we might do it even earlier.

And we can expect it to be completed within 2 years' time period?

That has been the track record. So...

That will take 3 years.

The larger construction. That will take 3 years.

The next question comes from the line of [ Janak Shah ] from the [ Wealth Company ].

We are the biggest in terms of land bank in and around Ahmedabad and we have also seen very good progress in terms of Million Minds. My question was that like what we have been doing is in the last 2, 3 years, most of the profits, so it was in '24 was INR 461 crores and '25 is INR 598 crores and this year, INR 316 crores, mostly has been from the sale of land, right? And generally, the markets don't report in the sense, the markets always look at the operational -- pure operational performances. So because of the delay of Thaltej One and Smile City, I think maybe like can you give more clarity as to -- like I already heard that you have said that in quarter 1, you'll be giving the guidance regarding that. But like Smile City also, like it has been into the presentation since the last 18 months. but there is no progress on any sort of launch in Smile City. Vis-a-vis the -- like our nearest competitor is also Ahmedabad based and they have no land bank, but they have seen more than 4 launches in the last 18 months. So could you please explain on this?

Sure. One thing which we have always explained all these years, and we'll continue to do that now is that one of the very important verticals of Ganesh Housing apart from the various projects which we have launched, executed and handed over, whether it was Malabar Retreat, Malabar Exotica and all, this is also happening to be one of a very important vertical. And our historic prices of land and acquisition actually gives us the top opportunity to monetize that as and when required because land always is in short supply at the places where it is required, especially. And that is the strength of Ganesh, that is we have been able to monetize exactly at the appropriate time because we had bought it low. That will always continue in terms of being one of the verticals apart from the projects which we have launched or we are under construction or which we will be launched. What I can say that Smile City 1, that is where we have already -- it's not the project. Project may not necessarily be only a construction project. In Smile City, that is that Godhavi land, we have done -- sold about 46 acres, what I mentioned earlier. And that has been -- you might categorize as land or you can categorize it as a project because land by itself has been done as a land sale as a part of the total Godhavi project. It's such a big land parcel that not everything can be developed and that not everything can be developed in a few years. So as and when the opportunity comes up in that, we will do a development, which may be in this year or next year. But definitely, if an opportunity comes, we sell the land also. So that we can categorize as a land sale or whether you can categorize as a project sale. I would put it as a project sale because it's a Smile City project, which is comprising of land plus projects. So that is 65 acres. And the last 4 quarters have been comprising of that. Earlier to that, we agree. That was a pure land sale, which is one of the verticals, as I just mentioned. So it's a combination, I would call, which is leading to the total growth of Ganesh Housing. Maybe yes, the kind of what you're saying, people recognition and reward is -- could be slow in coming. But what is important is that for a real estate company is that it has got a very low acquisition cost for a large land bank, which is easily monetizable, one. Second, it has got a very good traction of execution for the future. And third, very importantly, has the cash available at an appropriate time to continue to develop new projects or buy new land and then balance out with a 0 debt. That kind of a possibility only happens when you have these inherent strength of the land bank to start with and then the projects to get along with. So it's a good combination of both, I would say. And I'm sure the markets will be able to recognize that as we go along.

But let -- the Thaltej One clarity would surely come in the quarter 1 results, right?

Yes, sure, sure. Yes, definitely.

My last question is that like our dividend payout, though we declared a 15% dividend, in 2024, it was 110% dividend, which came down to 50% and it is right now 15%. Now if we see we are at like in the sense like all three companies, we have just taken debt for name sake, then why can't the dividend be maintained also looking at the promising prospects of Ganesh Housing in the long term?

Yes. See, this time, I think the Board discussed and then came at the 15% because good opportunities are coming up where the cash can be utilized for the growth. So the growth of the company has been kept uppermost in mind while giving a lower dividend so that the cash can be conserved, and especially when such a lot of things are happening in Ahmedabad. So that is the only consideration. But I'm sure if the cash position and as the projects and all go as planned for the next year, the dividend, I'm sure the Board will always feel more enthused to give -- go back to their earlier levels.

Right, sir. And sir, a small other question. See, looking at artificial intelligence and how this is going on. Within Minds, we are going to do many, many such projects, like maybe 7. Then would some also be open for educational purposes and some other purposes or only it will be for lease?

Educational purposes, we haven't thought about at this point in time in terms of the planning. It is all...

Sir, I mean university.

Yes. No. In the future, today, whatever we have, it would not be there for the next phases for sure. We have thought about all of them being as a commercial development only. And we do believe looking at the GCC capability, which is coming up, which I think has received a lot of traction, that could be another center for that in the years to come. So it will be all commercial development.

Ladies and gentlemen, due to time constraints, we would take that as the last question for today. I would now like to hand the conference over to the management for their closing remarks.

Thank you all for joining the call and asking important relevant and pointing questions. I hope I've been able to satisfy you and answer all the questions, but we're always open to be asked through GIA or and ourselves also. I can surely say that we believe that the foundations being built today will position our company well, not just for the next 1 year, 1 or 2 years, but for the next decade. It could be demand -- that demand patterns are changing. And in this changing landscape, we believe that Ganesh Housing is uniquely positioned. So there may be a few delays, but the kind of a position that we are in with a near-zero debt, large strategic bank, strong execution capabilities and, of course, an increasingly diversified development platform, we do believe that these things will be all seen in the coming times. So as always, we remain committed to disciplined growth, transparent governance, prudent capital allocation and sustainable long-term value creation for the stakeholders. Goodbye, and see you soon. Thank you.

Thank you, sir. Ladies and gentlemen, on behalf of Go India Advisors, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.