Max Estates Limited (MAXESTATES) Q3 FY2026 Earnings Call Transcript & Summary

Good morning, ladies and gentlemen, and welcome to the Max Estates Limited Q3 FY '26 Earnings Conference Call. [Operator Instructions]. Please note that this conference is being recorded.

And good morning to all for joining us on this Q3 and 9 months FY '26 Earnings Conference Call for my access dates. Joining me today we have Nitin Kansal, who is our Chief Financial Officer; Archit Goyal, who heads IR and Corporate Finance for us, and also SGA, our Investor Relations advisers. Our presentation has been issued to the stock exchanges and uploaded on our company's website. During the quarter gone by Max Estates launched the first phase of STATE361 in Sector 36 Gurgaon with a gross development value of about INR 2,500 crores. This community, State 361, is envisioned as a forest led community spread across 18 acres, offering a distinctive forest in the backyard experience. This development is also intergenerational and feature senior living residences managed by Antara Senior Living, along with an integrated wellness center also managed by Antara, thereby delivering a holistic well-being ecosystem focused on proactive preventive and personalized care. The encouraging market response reaffirms the sustained demand for high-quality, differentiated and wellness centric residential developments. We are very pleased to report presales of over INR 1,900 crores in Gurgaon. The strong response underscores the robustness of our live well philosophy and the strength of our product offering. More so average price realization in this development currently stands at INR 22,000 a square foot, reflecting a significant premium to the prevailing micro market as well as to our previous launch project Estate 360, which was launched last year. Driven by this encouraging response to 361 Max Estates is now planning launches, aggregating about INR 4,000 crores GDV in Noida, comprising of Max One in Sector 16B and a project in Sector 1 of port targeted for Q4 FY '26. Post ST 361 Phase I launch, MAX State has a launch pipeline with a GDV potential of about INR 14,500 crores. In addition, the company aspires to add between $1 million to $2 million in the residential segment every year. For the commercial real estate portfolio, we are seeing continued strong leasing momentum, highlighted by the signing of an LOI for a long-term lease, preleasing 200,000 square feet at Max District Sector 65 in Gurgaon, securing gross rentals of over INR 270 crores over the lease period. This transaction has been concluded 2.5 years ahead of the project completion and at a 35% premium to the prevailing micro market rentals. The company also maintains a robust leasing pipeline for both our under construction projects, Max Square and this 1 MAX District. Overall, commercial portfolio is poised for a net rental income potential of more than INR 700 crores annually on a 100% basis across delivered under construction over the next few years. Here as well, we aspire to add 1 million square feet of the commercial office space segment every year. The company has also initiated solar power sourcing for our Max Square project, representing a key milestone in our sustainability and decarbonization road map. This marks the first move towards Max Estate's long-term goal of shifting 50% of our portfolio's energy usage to renewable sources by 2030, aligned with India's climate pledge. With these brief highlights, I'll now hand over the call to my colleague, Nitin, for the business update for Q3 and 9 months FY '26 on the outlook for the business. Over to you, Nitin.

Thanks, Al, and good morning, everyone, and thank you for joining us on the call. we cover the business update in the 3 sections, residential, mixed use and commercial developments. Starting with the residential portfolio, at our flagship project at 128 Noida, we have achieved presales numbers of INR -- in excess of INR 3,700 crores with 100% inventory sold and collections stand close to INR 1,100 crores. At a 36 Grupo, we have recorded presales of INR 4,831 crores with a collection of over INR 1,100 crores. We launched Phase 1 of S-361, again -- with a gross development value of approximately INR 2,500 crores, we are pleased to announce that we report presales numbers of over INR 1,900 crores in Gurugram. We have also entered the market by securing different rights on prime land parcel of 7.25 acres tactically located on in sector 59 Gurgaon on the Golf Coast extension road RECONNECT with a development potential of 1.3 million square feet and gross development value of more than INR 3,000 crores. The company is developing Ultra Labor Residence Graybar office pace, unrated high-street retail and exclusive club amenity, the project seamlessly integrates the LiveWell work well and the play well losses spread across a technical parcel with a development potential of 2.5 million square feet -- the project is targeted to launch in the current quarter and carries a GDV potential of over INR 2,000 crores, along with an estimated annuity annual potential of INR 120 crores. Additionally, the company has also acquired a 10.2 acre time land parcel in Sector 105 strategy be located under Nordais, -- the project will comprise of a mix of residential and commercial development with a total development area of 2.6 million square foot Phase 1 alone offers a GDV potential of over INR 3,000 crores -- coming to the commercial portfolio. Our operational commercial real estate assets, Maxar, Noida, Macau Phase 1 and Phase 2 at Okla and MaxCare, again at Noida continue to upgrade at 100% occupancy generating an annual rental income of over INR 155 crores. MAX Noida project having a leasable as of 1 million square feet is on track and expected to receive occupation certificate by the quarter 2 of FY '26. Max Pacific sector 65-gram having a leasable area of 1.6 million square feet is also on track of completion and expected to receive occupancy certificate in 2 cases. quarter 2 of FY '28 and quarter 3 of FY '29. With this, let me also provide you with a financial update for the 9 months FY '26. Our consolidated revenue stood at INR 150 crores for the 9 months and a control EBITDA stood at INR 27 crores. Consolidated profit before tax stood at INR 29 crores and PAT INR crores. The total lease are in the portfolio stood at 1.23 million square foot. The lease renting income is up 38% year-on-year to INR 115 crores in 9 months. Max Asset Services and facility management continues to clock revenue of INR 40 crores in 9 months. The debt as on December 25 stood at INR 1,700 crores, including LRD of INR 1,000 crores. Cash and cash equivalents as of December 25 stood at INR 1,284 crores, resulting company having a net debt of INR 414 crores. Now I'd like to open the floor for the question answer session.

[Operator Instructions] We have the first question from the line of Mohit Agrawal from IIFL Capital Services.

Congratulations to the team on the launch of the Gorgon project. My first question is on the Gorgon project. So between the last year when we launched this project, there was obviously a very different response. It was a completely complete sellout. This time around, obviously, it's been a smaller launch and the response has still been great in terms of 50%, 60% sellout. Any learning in terms of, let's say, the type of behavioral change in the mindset of the customer in terms of, let's say, the ticket size for or expectations in terms of payment plans? Or anything that you want to share, what has changed between last year when there was so-called a euphoric market and now it's been a more subdued overall market that we've been talking about. So any learnings that you may want to share.

So great question, this is Sahil. So firstly, absolutely, we see for us, particularly of the inventory that we've sold almost 66% to 70% is driven by end users, where we have seen families that have come and visited the experience center about 5 to 6x at least. So what we are delighted with is that the end user is buying the product, there is a preference for the unit sizes, the customer experience, the hospitality and the well-being offering that we're doing and a deep appreciation of that. And you can see that we -- our payment plans have also been very similar to what we did even last year. So the payment plans have not changed like the market has changed. We continue to hold our payment plans and have also been able to have a good premium, not only to the micro market but also to our previous launch of Estate 361. So we are seeing end user demand be an appreciation for the end client experience a lot more than we had done earlier.

Okay. Great. My second question, Sahil, is a little longest question, but for, let's say, for your guidance to be met you will have to do the 2 launches, the MAX -- the Noida development under 105, both launches have to happen and you need to have a, like a, meaningful success in both of them. So that is the first part. So how confident you are on that, if you could -- we obviously know that Noida is doing better. So some color on that. And then the second part of that question is then for next year, for FY '27, you have the Golf Course extension, which we recently acquired and the remaining part of 361, right? Is that the basically launch pipeline for FY '27 -- or do you plan to meaningfully add something and that would be also a meaningful part of FY '27 on. So color on basically fourth quarter in FY '27, that would be helpful.

Yes. So I think at this stage, what we can say is that we remain very confident with our products that we are bringing to the market in Q4. As you can imagine, I'm not able to share more detail on that at this stage. But I'm sure that at the end of the quarter, we will obviously share a detailed update on that. So we remain very confident on our launches for Q4. The second aspect is in terms of next year's pipeline, yes, we are going to be having those 2 projects that you mentioned. And also a pipeline for a launch in the Noida market as well, which we will be sharing in due course. So those are our plans. And as we are consistent with our strategy, to be able to be across both Noida and Gurgaon across both residential and senior living, and offer both independent senior living and intergeneration communities as well. So that continues to remain our strategy and plan.

Okay. And then last 1 is '27, do you expect a kind of a double-digit growth in PC. Is that you're still building that number?

I think I wouldn't like to comment on that at this stage. But what I would like to say is that we are continuing to remain extremely encouraged by the response that we are getting, like I shared with you, both from an end user perspective -- more so from an end-user perspective and also for our senior living development. So for both, we are receiving tremendous and very encouraging response. So we continue to remain extremely bullish and hopefully will outperform the market in terms of what our delivery is.

[Operator Instructions]. We have the next question from the line of Pritesh Sheth from Axis Capital.

First, on the pre-leasing that we did, if you can throw some details on in per square feet that we have signed up, how they are versus our expectations that we had set or what we have underwritten for? And second question is, again, on your upcoming launches in Noida. We know how you're seeing initial signs. Is that market -- how that market is doing compared to Gurgaon? And what kind of ticket size are you targeting? And what still works for that market as for your initial market feedback that you're getting?

This is Nitin. Just to answer your first question, the reason which we have done in Gurgaon and Max District, what we have been able to better what we had estimated in our projections of INR 723 crores centers on a full loan basis. And the entity which has taken over this space is a listed entity. And this looks this as a long-term vision for their office space in Gurugram.

What's the term for which it is signed?

This is, again, for a 9 years period with the same standard template of 3 plus 31st with an escalation.

Okay. Got it. And this INR 270 crore that you have putted also includes the contractual escalation.

Yes, yes. That also includes that.

Which is 15% 3 years or 5% every year?

It's 15% every 3 years.

We have the next question from the line of Ronald Siyoni from ICICI Securities.

Just on the leasing front, so are we seeing any interest from GCCs also? And this entity, whether if you can highlight which sector, especially these entities and what kind of pre-leasing pipeline you are seeing in this project once this deal is also done. So are you seeing other good inquiries for this project?

So this comes from the GCC sector itself, this transaction and we are getting a very good traction and have a very healthy pipeline for both our projects in Noida at Max Estates and Gurgaon. We expect the significant leasing to take place by the time the building operations.

Okay. Great, sir. And on the oral, we also see this time, the new business development includes more of deals with respect to Noida. So should we be expecting premium luxury projects, getting good traction in the mid-premium or lower segments only are gaining traction. So if you can buy back it, what kind of deals you're getting in Noida?

Yes, I think -- we are mostly in the premium segment. We continue to operate in that, and we are very focused in that segment. Like I said, we are both in the premium segment and also in the senior living segment. And they straddle the range of the entire premium category upwards of INR 6 crores, INR 7 crores up till about INR 12 crores, INR 13 crores, INR 14 crores. So that's the range that we operate in, and we believe that Max Estates has developed a good brand credibility and a very good end user traction in those segments, and we continue to build upon that. We will continue to focus there, not just in the Noida market but also in the Gurgaon market.

Okay. And the stress which we had earlier further residential market, should that be behind the sector behind for the sector as a whole?

I don't know which stress we are referring to. But in the last 3 or 4 years, I don't think that there's been any stress per se in the market. In fact, there's been a buoyancy in the market. And particularly for us, even in Gurgaon, we don't see any stress. In 35 days, we've launched -- we've been able to sell 60% of what we've launched. So frankly, I don't think that's just in any imagination. And we, like I said, not only, but the encouraging thing for us is it's driven by a very large proportion of end user demand, which we are very, very encouraged by.

Okay, sir. And lastly, on the OPM, operating margins this quarter. So you might have been booking sales and marketing costs related to this project launch. So if you can bifurcate that or if you can adjust for that, what kind of operating margins were there during this quarter, whether upwards of 20% or lower than that?

Yes. I think rightly pointed by Ronald, because of accounting standards, we are not advertising and marketing expenses go in the P&L at the wins and the revenue comes later. If we exit for that, we would be looking at an operating margin in excess of 25%.

25% for this particular quarter, Q3 FY '26.

We have the next follow-up question from the line of Pritesh Sheth from Axis Capital.

Yes. My second question got answered on the Noida market. But on the cash flow side, if you can briefly highlight what were the spends during the quarter in terms of construction spend, CapEx and land investment? Because I just want to reconcile the increase in net debt that we see this quarter.

So Pat, what is happening, what we have incurred in the current quarter is a number in and around INR 350 crores on the project. In addition, in the current quarter, we also pared out for the new acquisition, which we did on the Galdos extension role, which had an outlay of close to INR 450 crores. So this is how the number has got incurred. So if you say the debt number has not gone up since the cash got deployed in the new acquisition, the net debt number has come up. And there is a swing from net cash to net debt but not incremental it has not been taken during the period. The only regular construction finance debts have been taken.

We have the next question from the line of Samarth Agarwal from Ambit Capital.

Just wanted to get some sense on collections, what would be the payment scheme for the customers of the first phase of S61 -- and what kind of collections are you expecting in FY '27 from all the projects?

Thanks, Samad. So what is happening? We maintain an Eco-distributed collection plan in line with our construction time lines. All the subjects have an included distribution over the life cycle of the project. In FY '27, what we expect the collection to happen from we're expecting collection to happen from the existing sales and also from the new launches which are expected to take place. from the existing sales, what we're expecting to make a collection in the range of INR 1,500 crores to INR 1,750 crores and an incremental number of INR 1,000 crores to INR 1,300 crores to come from the new sales, which we plan to do in the next.

Okay. So total would be around INR 2,500 of collection.

It will come -- it will be more range close to in the range of INR 2,800 crores to INR 3,000 crores.

And just 1 update any update on the Dairyland pooling policy, any chance when we can see Mark started to add projects in the value market.

So far, there is no incremental progress basis what we had last reported, but we continue to work for the approvals and are very hopeful that in the coming year or so, we should be able to move the needle on the approval process.

Understood. And just 1 last thing. I think I might have heard it on the fourth quarter total launches for the residential side would be at around INR 4,000 crores or INR 5,000 crores.

Between INR 4,000 crores to INR 5,000 crores.

We have the next question from the line of Amit Akita from HG Hawa & Company.

My question is connected to the geographic strategy like NCR currently the sole focus under what conditions would be company considered entering another geography? Or is the intent to remain originally on the tenant specialist player.

Thank you, Gil. That's a great question. At this stage of our journey, we remain committed to the National Capital Region. And if you look at it, while on the outside, it may look like a concentrated strategy, we believe that it's a very well thought through risk-adjusted strategy because not only are we in Gurgaon and in Noida, which are 2 very large micro markets of the NCR market. But within that, we are in the residential and in the senior living space. And then obviously, there's commercial as well across these -- both of these micro markets. So for the foreseeable future, we continue to remain very focused in the NCR market and really emerge as the top 2 players in the NCR space.

And sir, second question, how confident is the management about like office leasing demand visibility beyond FY '27, '28, especially like contain hybrid work trends?

We are very confident. I think office demand is going through a very bullish cycle at this time. There's also a limited supply or grade as supply that's coming up. So we continue to remain very optimistic and particularly with the brand, the track record and the experiences that access state has already set up for its commercial offering. We remain very confident of demand moving forward. And that is not just our same, but that is now validated by the pre-lease that we have signed, which is again at the premium to the micro market, and it's much, much before our completion of the project. So for Max Estates in particular, we remain very optimistic. But more so, we remain also overall optimistic on the demand scenario for office leasing in the national capital region.

And a follow-up to that is do you foresee cap rate compression or expansion over the next cycle for grade A LCRs?

It's very difficult to comment on this because I think this is also an outcome and a factor of interest rates at some point. But I do think that we will see that grade A assets will come more and more at the premium and the availability of those assets. will be very limited. So in general, we are seeing a very strong demand for Grade A or Grade A+ as assets, particularly those that Max Estates developing. But difficult for me to comment on how we see interest rates or cap rates moving forward in the coming few years, tough to say at this stage.

And sir, the last question for myself. So over the next 5 years, do you envision the company evolving more into a residential developer or an annuity heavy real estate platform, like what will be the steady-state mix ratio between the both?

So we are looking at both. And as Nitin mentioned in his comments, we are looking at almost a INR 700-plus crores of annuity income, right, annually. So I don't see that is insignificant or small by any steps, and we're looking to grow that as well. So that's not a fixed number. It's what we have with our pipeline today. And as we have said that we will look to grow that pipeline. And on the residential side, we've already done INR 5,500, INR 5,300 crores last year, and we look to grow that in the coming years as well. So we are looking at both very equal passion and commitment to grow both of these portfolios. As you are aware that we have New York Life as a platform partner, 49% across all our commercial assets. So we remain very committed to building out both these strategies in the National Capital future.

[Operator Instructions]. We have the next question from the line of Parikshit Gupta from Fair Value Capital.

Good morning, and the team, and thank you very much for the opportunity. I'd like to ask a question on the growth pipeline. It's a very exciting pipeline, but we see meaningful change from the projects that were in Q2 versus in Q3, notably removal of some projects in Gurgaon and addition of more mixed-use projects in Noida. Furthermore, most of the new projects in the pipeline are now outright purchases as opposed to JDS earlier. So can you please help us understand the strategic rationale behind these decisions both from the perspective of what you are seeing in these micro markets as well as the company's capital allocation strategy?

Yes. To answer that question this lift in the pipeline, is there a dynamic process, which you keep on evaluating at all points of time. And we have got a long list of assets which we evaluate. The assets which come more on priority and look very near to certifying some in the table, which goes out for the investor presentation. That is the reason you may see some churn in terms of how the list has been shown in the debt. Now coming specifically on the assets which you mentioned on the mixed land use in Noida, these are few options which have been announced by the local authority in Noida, which are expected to happen in the current financial year itself, which are supposed to be done outright. Now the only difference is authority itself gives you a payment plan option to be paid over 4 years. So rather than having a lateral partnering view, the authority gives you that leverage to pay over a period of time. That is the reason we would have -- we have mentioned as an outside purchase over here. But in terms of capital allocation, the capital allocation would be more akin to a joint development agreement transaction evaluating in Gurgaon.

Understood. Just a follow-up on this, please. So in terms of -- I know this question has been asked in different forms earlier. In terms of the growth prospects of each of these markets, Gurgaon and Noida, considering the crowding and competitive intensity. Have we selectively moved more toward Noida, which remains a key footprint for our business? Or is it just a balanced strategy in this quarter, just the pipeline seems to be more focused toward Noida?

I'll take that. This is Sahil. Actually, if you look at it, we are equally in both Noida and Gurgaon. If anything, our square footage may be slightly higher in Gurgaon. So there is no such plan to kind of move more to 1 micro market or less to 1 micro market. We believe that the social ecosystem is in both micro markets in Noida and Gurgaon they are separate markets, and therefore, we will continue to operate in both and look to scale in growth. I think a lot of our strategy is also driven by the location per se, right, and the capital risk framework that we follow internally. We have certain micro markets that we are extremely optimistic and bullish on. And therefore, we do go very aggressively in those micro markets to acquire assets. And where the balance sheet sizes are -- where there are risk portfolio and balance sheet conservatism comes in. We look to do opportunity like joint development like we've done in the 30-acre parcel that we have in Gurgaon. So it's a little bit of an agile and nimble framework that works, but it's driven more by location and micro market.

We have the next question from the line of Diboll Palesa from Nest Amplifier.

Congratulations. Just a few clarification questions to start with. On Slide 3, you mentioned that in the Estate 361, we have sold of products till date -- till date, that means December 31 or we are talking of in Feb today when we are talking.

December 31, please.

Okay. For the State 361, the GDV mentioned is INR 9,000 crores, of which we have launched INR 500 crores, a little higher than 25%, and we have sold INR 500 crores, which is approximately 1/6th of GDP. If I look at the Noida projects, the 2 projects that we intend to launch in Q4, the combined GDP is close to 5,000. And I know different projects, different sizes will get launched. And whatever we launched, like you earlier said you intend to sell close to 2/3 to probably full. But when I try and add the numbers, I'm just trying to make sure that how close are we expected to reach on the overall sales guidance of INR 5,000 crores to INR 6,000 crores versus the INR 99 crores of presales that we have done in 9 months. If you can provide some clarity on that math, that would be helpful, please.

Yes. This is Nitin. To answer, to what is happening in -- in terms of Estate 361, the remaining inventory is also on sale, and we expect a significant amount of sales also to happen from the remaining launched inventory of Estate 361, and the launch, which we're expecting to do for the Noida is close to INR 4,000 crores to INR 5,000 crores. And we are hopeful and bullish that we would be able to achieve sales to meet our guidance, which we have provided to the market.

Okay. I think essentially, what you're saying is that in case of Noida products, you intend to launch most of the GDP on -- from the go rather than launching part of the projects. Would that be a fair guess?

You can infer that also.

[Operator Instructions]. We have the next question from the line of Richard from Vana Finance.

Sir, a couple of questions. Sir, firstly, I don't know if I missed -- sorry, I've joined a bit late. On the business development front, what is the plan for FY '27 in business development front? I know we have guided for 2 million, 3 million square feet. So what kind of projects we are looking to acquire in terms of GDV as well? And any plans to acquire anything in Q4 FY '26?

This is Nitin. So what we are planning, you lightly mentioned you're planning to acquire in the 1 million to 2 million square feet of residential every year and it was to 1 million to 1.5 million square feet of commercial every year to augment our portfolio. In terms of GDV, what we expect is to deploy capital of close to INR 1,000 crores across the residential and commercial, and this would be -- and the FX that you proposed to acquire would be a combination of an outright and a joint development agreement, where by optimizing the capital deployment on the projects?

Would it be like -- so if you're doing INR 6,000 crores of presales this year and assuming, say, some growth on that in FY '27, would it be fair to assume that we would at least target to replenish that kind of inventory?

We aspire to replenish the inventory for the -- if you see the pipeline which we have got, we already have got sales pipeline for FY '27 and also a certain portion of '28. We would like to replenish and build on inventory of an FY '28 to FY '29 also on the coming current year business development initiatives. Just so that to be clear, if you see the presentation, it shows that we have full pipeline for FY '26, full of '27, and we already have some part of '28. So we are very comfortable in terms of our growth pipeline.

Sure. And what is the debt on the books for the commercial or the residential...

We will have an incremental discounting, which is completely on the commercial asset, it is close to INR 1,000 crores. And the construction finance rate of close to INR 600 crores, which is a commercial thing. On the residential basis, we're not carrying any debt.

Okay. So it is gross debt -- there's no gross debt on the residential piece.

Yes.

Okay. Got it. And is there any cash on the residential book.

So on the residential side, we're sitting with a cash balance of close to INR 1,200 crores, which is all logged in the rail accounts.

Got it. And 1 final question, Nitin, for you. What is the collection that we have received? And what is the construction cost that we have done so far in 9 months FY '26?

So in the 9 months FY '26, what we would have collected would be a number of close to INR 1,100 crores as we speak, and we would have incurred a cost of close to INR 450 crores on the projects undergoing projects.

Okay. And how is it expected to close like in FY '27?

So we are on track for our collection plans. The -- I think we will be -- I think once you give us our annual numbers since the launches would be happening as we speak in the 4,000 to 5,000 launches will happen in February, March. -- we would -- we expect that we'll be on track of our collection target for the year.

Okay. Got it. And what would be the other cost other than the corporate overheads and other fixed costs for the full year?

So we incurred a corporate average cost in the range of INR 50 crores to INR 75 crores through the year.

[Operator Instructions] We have the next question from the line of Alper Kumar from Unifi AMC.

So just wanted to understand, I mean, execution of a project is important. So just wanted to understand how is the accountability structure internally and the systems, what are in place so that we can avoid execution slippages and cost overruns?

So I'll take that. This is Sahil. So just to share with you, are we -- I don't know if you picked up, but I think 6 months ago, we made some organizational changes, and we hired Mr. Machan Singh, who joined us as Chief Operating Officer, Projects. He now -- he spent about 35 years in the industry across organizations like DLF, Tata, R&D, and many others. We have a team of almost 300 people that are under him across civil, structure, NEP and other capabilities. that we are driving construction. We're very delighted to share that so far everything that we've delivered has been on cost and within the committed time lines that we have. So we continue to drive this process and this is a separate organization that is purely a wholly focused on what we call the execution of the projects side, obviously being in the national capital region and being across in 1 geography, broadly, Noida/Gurgaon, helps us a lot in terms of execution, delivery scale and scale now has helped us a lot. We are doing multiple projects and with the scale that we have, that also has come to our benefit. So I think that the organizational change that we need, the capability that we built, geographical focus and execution focus. We are very confident that we will be able to deliver on our commitments here.

We have the next question from the line of [indiscernible].

Again, it's a follow-up on our FY '26 guidance. So this INR 1,900 crores of presales is till Jan, if I'm correct, right? INR 1,500 crore, which you mentioned was for 360 until December, but the 1 which we have mentioned in Slide 4 is still Jan. So of the INR 2,500 crore, which we have launched, almost INR 19 crores have been sold.

Just to clarify, against INR 2,500 crores have done sales of INR 1,500 crores and INR 400 crores was existing inventory of estate 360. In total, with the number comes to INR 900 crores. So 60% sales.

Got it. Got it. Got it. And sir, for the rest of the year, again, on the 2 side, you mentioned that INR 5,000 crores is something which would come from the Noida -- and can we expect the balance launch of 360 as 1 because we have targeted somewhere in the range of INR 9,500 crores kind of launches and probably even if Noida comes in, the total launch number would be around 7,500. So...

Yes, sorry, I think I got the question. Just from that perspective, we will be more focused on what are the sales that we are doing versus the launches. So our launch strategy will get determined closer to the time and be a little bit more nimble and agile around it depending on how we are able to achieve our numbers, but we are very confident across this, and there's obviously a lot more to be launched in the Gurgaon projects as well.

Yes. And lastly, as much of our projects have been launched during the Q3 and Q4 time, any guidance would you like to give for FY '27 on the price part?

At this stage, we would not like to give guidance for FY '27. I think we are focused in the next 1.5 months of achieving what we had said. And then obviously, once we have the next call, again, hopefully, we'll be able to share some more color at that time.

We have the next question from the line of Varun Bell from Pluto Investment.

I was just wondering the series of launches which you have carried out from, say, FY '24 and you go on to FY '27, what are the kind of margins that you're looking?

So if you see what we have launched is we have got a combination of outside and adjournment agreement. So what we have been guiding is -- in the case of S2, we would be having margins in the range of 40% to 45%, which is an outright asset. And in the case of S336 361, which are in the nature of joint development agreement, we will have a margin of 22%, 25%. But interestingly, both the projects will have IRRs in the -- of the same nature because the capital deployed on the JDA is significantly less as compared to an outright purchase.

Yes. Completely appreciate that. The numbers look almost scarcely believable, depending on how the handovers play out, we could be looking at figures of INR 1,500 crores plus of profitability in FY '21, '20, depending on how the handovers played out?

Yes. Yes. This is depending on how the handovers play out. we can expect the numbers will get accounts.

We have the next question from the line of Vikas Atria Individual Investor.

My first question is, is there a phase to win sector 105 Noida? And what is the revenue potential of that?

Thank you, Vikas. And yes, there is. And we are still working out our plans for the final design and we'll be able to share revenue potential in the next quarter, we may not be able to share that as of now because it may not be crystallized.

Okay. And my next question is regarding the sponsor land bank, is it possible for you to give a brief idea what is the revenue potential from that?

Thanks, Vikas. Yes. So that is obviously a 100-acre land parcel mostly contiguous as per the current guidelines of the land pooling policy that are in place. We are talking about potential revenue of upwards of INR 10,000 crores of GDV.

Okay. And will that be a mixed-use project? Or will it be purely residential?

It's primarily residential with some mixed-use components as part of it.

Okay. And sir, my last question is we've been listed for almost, I think, 10-plus years or almost 10 years. And by when do you think can we become a dividend paying company?

We're very hopeful that with the completion of our residential projects in the next 2.5 years, we should get to that point because, as you know, the accounting and the real estate company the profit will only be recorded on the books once we are able to get the OC. So we're very hopeful and confident that once that cycle starts for us with state 128, we should be in a good position to be able to do all of that.

We have the next follow-up question from the line of Arpit Kumar from Unifi AMC.

Just a follow-up. Just wanted to understand on the approval side of Estates 361 and 105 have we received the RERA? Or is it pending? We receive building plans. We are just awaiting the final data approval. Okay. And when it is expected, if you could.

Very shortly.

Thank you very much. As there are no further questions from the participants. That concludes the question-and-answer session. I now hand the conference back to the management for closing comments. Thank you and over to you.

Thank you, everyone, and look forward to speaking again in the next quarter and a and stay well. Thank you.

Thank you. On behalf of Max Estates Limited, that concludes this conference. Thank you for joining with us today, and you may now disconnect your lines. Thank you.