Puravankara Limited (PURVA) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Q2 and H1 FY '26 Conference Call of Puravankara Limited, hosted by Emkay Global Financial Services Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Harsh Patak from Emkay Global Financial Services. Thank you, and over to you.

Yes. Thanks, Yashashvi. Good evening, everyone. On behalf of Emkay Global, I would like to welcome the management of Puravankara Limited and thank them for this opportunity. We have with us today Mr. Ashish Puravankara, Managing Director; Mr. Mallanna Sasalu, Chief Executive Officer, South; Mr. Rajat Rastogi, Chief Executive Officer, Western Commercial Assets; and Mr. Neeraj Gautam, Chief Financial Officer. Also wishing Neraji the best for his new role as the CFO. I shall now hand over the call to the management for the opening remarks. Over to you, gentlemen.

Thank you, Harsh. Good evening, everyone, and thank you for joining us today. As CFO of Puravankara Limited, I will take a few moments to highlight our key financial and operational achievements for Q2 FY '26. Provide context on the macroeconomic environment and share our outlook for the balance of the year. I will aim to keep this concise while addressing the metrics that matter most to you. Let me start with the broader macro landscape, which continues to underpin our sector's resilience. India's economy is growing at robust 7.8% year-on-year real GDP growth in Q1 FY '26, solidifying our position as the world's fastest-growing major economy. The IMF forecasts 6.4% growth for full year, while the RBI has upgraded its projection to 6.8%, fueled by a strong domestic consumption and a rural rebound. On the monetary front, the RBI has cut the repo rate by 100 basis points to 5.5%, adopting neutral stance amid healthy liquidity conditions. In residential real estate, demand remained strong, especially in the INR 1 crore to INR 2 crore segment with price appreciation ranging from 5% to 17% across major metros like Bangalore, Mumbai, NCR and Chennai. These fundamental positions Pur Lanka favorably to capture ongoing market momentum. Turning to our financial and operational performance. In Q2 FY '26, we recorded presales of INR 1,322 crores, a 4% increase from INR 1,270 crores in Q2 FY '25. Notably, this growth was driven solely by susten sales, underscoring the enduring customer trust on our portfolio and brand strength. Average price realization rose 7% year-on-year to INR 8,814 per square foot, reflecting sustained demand and effective pricing discipline. Customer collections reached to INR 1,047 crores, up 8% from last year, demonstrating a strong execution and payment adherence. For H1 FY '26, presales totaled INR 2,445 crores, up 4% year-on-year and collection hit INR 1,904 crores, up 1% year-on-year, maintaining a solid cash conversion ratio. On the PL side, revenue grew to INR 681 crores in Q2 compared to INR 520 crores last year. We reported a loss of INR 42 crores versus INR 20 crores in Q2 FY '25. Let me clear this. This is largely due to the timing of revenue recognition under Ind AS and our strategic investment in new projects. It is not indicative of any underlying operational weakness. Our cash flows are robust with operating cash generation supporting our growth initiatives and our balance sheet remains strong. Shifting to business development, we have made meaningful strides in bolstering our pipeline during H1 FY '26, adding over 6.36 million square feet of developable area with a potential GDV of approximately INR 9,100 crores. Key additions include a 24.6 acre partnership at KIDB Harbare Park in North Bengaluru, a preferred developer status for 8 societies in Chembur, Mumbai, adding 1.2 million square feet, a 5.5-acre joint development in Belgare, East Bengaluru value at INR 1,000 crore GDV. -- the prestigious Malawar Health redevelopment in Mumbai, contributing to 0.7 million square feet and the GDV of INR 2,700 crores premium residential sales. These moves diversify our exposure across premium and mid-income segments, enhancing revenue visibility. Our land bank now exceeds 32 million square feet, providing multiyear runway for launches and derisking our growth trajectory. Looking forward, our H2 FY '26 pipeline includes 15.53 million square feet across Mumbai, Bangalore, Chennai and Pune. This carrying a sales potential of INR 5,000 crores plus, which we expect to accelerate presales momentum with resilient demand, favorable financing and our proven execution track record, we are well equipped to deliver on these opportunities and sustain profitability improvements. In summary, Q2 FY '26 was marked by steady top line growth, disciplined cash management and targeted expansion that fortifies our long-term value creation. Despite the reported loss, our fundamentals are sound, healthy collections and fortified balance sheet and a high potential pipeline. We are committed to optimize costs, enhance efficiency and driving shareholders' return as we navigate the second half. Thank you for the continued support. Now I'll open the floor for questions. Thank you. Take first question from the line of Deepak from Swan Investments. Sir, my first question is related to the Mumbai pipeline, especially for the Air project and Miami project, it seems the launch has been delayed by another 3, 4 months. If you can give broader sense, how should we see? And what are the reasons we are facing the delays vis-a-vis the other players? That is my first question on the Mumbai. If you can please... I request my colleague, Mr. Rajat to answer this question. There. Just to answer your question first on the Ai launch. Ai launch, we have received all the approvals, including MOS. Vacation notice has already been served to the society. As we speak, members are leaving the society. We are in all good position to launch it in January. In fact, our sales office work and everything else has also started. Regarding the Miami launch, approvals are already going. We have already informed earlier that Miami launch is going to be either in quarter 4 or in beginning of quarter 1 next financial year. The way the approvals are progressing, we are most likely to have it in the month of March or in the month of April or May next year. So we seem to be on track. We are absolutely facing no regulatory problems. Our approvals are on track, and we're probably getting approvals at one of the fastest pace in the industry. A, maybe you can update them on your Bandra and your Thane approvals as well Yes. Of course, of course. And just to also inform you, we are expected -- we are also -- on the Thane approvals, we are working on the approvals. We're expecting to get all the requisite approvals by end of December, all good to launch by quarter 4 of this financial year. We should be able to get close to around 6 lakh square feet of inventory in Thane. In Bandra, we have also received the concession plans. We're expecting the IOD to come within a week's time. And post that, we'll serve the vacation notice for the society. Just to inform on Bandra as well, we are looking at getting all the approvals, including the environment approvals by end of December, post which I think we'll start working on the launch time line. So Bandra also, we are very, very positive that we should be able to launch in quarter 4 of this financial year. So would it fair to see that 3 out of the 4 projects at least should see launching in Q4 for the Mumbai project? Yes, absolutely right. Okay. And now moving to the Bangalore market as a whole. See, I mean, there also, if I were to look into some of the key projects which we were looking to launch in Q3, that has been now moved to the Q4 FY '26, like Belandur, West End and some of the other projects which has been pushed to the Q4. And especially in the context now, again, Bangalore Municipal Corporation would also come out with the election in some time. So in this context, how should we see the launch pipeline for our core market? Yes. This is Malana here. So I'll just try and answer your question. So with regards to the launches that Hebagori and KIADB are coming in this quarter itself. That means that the EI program, and I think that we are starting them. And it's just that MOEF1 approval that is -- the committee meeting got successively postponed for the last 3 weeks or 4 weeks and which has taken some time. And rest of the projects are there in the Q4, right? Some of them may go to the first quarter of the next year, but largely Malasandndra, I'm just looking at the investment proposal that the ICP that what we have circulated and I'm reading out of that, Malasandra, Kanapra and Western Hennur Road and Hebagodi and KDB, I don't see any problem. Bore is a touch and go and Citiesspire could be a touch and go and Grand Hills could be a touch and go. That means those 3 projects may go to the first quarter of next year. Otherwise, as planned that we are in line for the launches. Just to give you the perspective, and we were hit by many number of regulatory changes that came about from -- starting from the ECAT and then registrations because that once the ECAT is then the registration department had to have their software working with the revenue department, that was taking some time. Then we had the creation of GBA that is 5 different corporations because of which the fines had to be moved from one place to another place. So with all this, I think we are still confident that we are in for the launches. And I also believe that we are in the fag end of the whole transition in the long run, which may work out very well for Bangalore. -- but we got a little bit pushed back on our approvals because of this. Okay. Okay. And again, if I were to look into the cash flow statement, interest expenses have seen a sharp rise in this time as well. This has moved to the INR 177 crores. If you can give a sense why there has been a sharp jump in the interest expenses during this time? There's no sharp jump, I would say. The last quarter also, it was about INR 160-odd crores, and now it's INR 176 crores. And this interest payment is in the line of the debt which we have and some of the like SDFC loan facilities we have taken, which is payable in nature. However, we choose to pay them on time and not accruing that interest and will be paid when the projects are completed. And hence, the interest as and when project is doing well, I'm serving the interest IRR, which is applicable, and that is why it's increased marginally. Otherwise, as far as the cost for the quarter is concerned, it's about INR 168.58 crores for the quarter. If I look at immediate previous quarter, it was INR 160.9 -- and as compared to year end, it was INR 140 crores. Just to add to that, that we had this INR 1,150 crores of payable enable structure at 16%, 17% money. And then it took this long almost a year of 15 minutes for the projects to throw the cash flows out. And from that cash flows that we are now servicing that debt because of the higher debt cost that it has that we are -- that it looks like we have paid the debt higher. In fact, what's going to happen is that at some point of time, because of healthy cash flows that we may even look at reducing our debt position at higher cost and moving towards the lower debt cost. So it's a good thing that is happening. Before the good thing that's happening, you're seeing a little bit of more... Out today we are 100% paid on IRR. There's no interest accrued in the books and not paid 100% paid. And hence, on a tenure of the facility, we will be end up paying less interest because we are paying ahead on the time. As far as cost to the -- as I explained once again, if you look at the profit and loss statement, as far as cost, which has gone through the P&L, it's INR 168 crores. If I compare to immediate previous quarter, it was INR 160 crores. So it's not a substantial increase, just a marginal increase of interest. Okay. And then from the cash flow statement point of view, year as a whole for FY '26, how should we see the collection for this year and construction... If you look at the collection, collection, we have collected INR 1,900 crores for the half year basis. And as construction progress is going fast, collection has been robust, and we expect it to be better onwards because, a, the collection, which will come from my ongoing projects where construction is going in fast pace, plus the launch guidance just now both of you have spoken. The moment we launch these projects, that is the incremental collection will come. And hence, it will enhance here onwards. We've done a pure construction of INR 1,000 crores that we have done and INR 1,950 crores is what we have collected. And as you can see that it is going in almost like a 2x kind of a position and in the third and the fourth quarter next half year, and I don't see that from the ongoing projects where the construction is going on and the collections are going on, that should remain same. And whatever the additional collections that we are going to do from the launches is going to become addition to the cash flows that we already have. Okay. And finally, if you can give the update on the HDFC platform side, how much capital has been deployed so far on that platform? And also, any thoughts on the Pune launch -- Pune business development activity? If you can share thoughts on that part, that would be really helpful. That's it from... DC capital is concerned, we have already deployed INR 700 crores out of the INR 1,150 crores. And just to add out of the INR 700 crores, which we have deployed, we have already repaid also about INR 110 crores as while we are speaking today. And remaining INR 450 crores also, we have given them utilization plan. The fuel land parcel has already been identified and due diligence are on, and we are expecting to utilize in the next 3 to 6 months' time period, that money as well to fund our growth. As far as Pune is concerned, Pune, we have last PuraMOquare we have launched. And I would request Mr. Rajat to add some more thoughts about our plans in Pune. So yes, thanks, Neeraj. So Pune, we have -- so we are obviously aggressively expanding in Pune. We're looking at much more opportunities in Pune, primarily in the western side of Pune, where right now, we are in kind of advanced discussions for at least a couple of land parcels in the west side of Pune. Also, we have started looking at redevelopment opportunities in Pune since we have done so well in the Mumbai market. We're looking at a lot of encouragement from Pune societies with regards to Privankar as a redevelopment partner. So that is another one segment that we're looking at. And we are very hopeful that in the next quarter or 2 quarters, we should be able to at least get at least a couple of land parcels closures in Pune. Having said that, we still have enough and more inventory right now in our 4 ongoing projects in Pune, which is close to around INR 4,000 crores. And right now, the brand is playing a very, very strong role. I think we're doing very well in that MOSFET launch also and the project also. So we are pretty, I think, optimistic about the Pune market. We have a question from the line of Harsh Pak from Emkay Global Financial Services. So my question is on the Thane project. So we are seeing that the inventory there, it's still high. I mean in Panorama, it's around 73%, whereas in the first phase also there is 59%. So how is the pace there? What kind of demand we are seeing? And what are the steps we are taking to push sales at this project? Yes. So just to explain you about the Thane project, the existing towers we have not opened for sale. We are completing the existing towers. We're expecting the OC to come in quarter 4 for the existing towers, and that's when we're going to open these towers for sale. From the existing inventory right now, we are looking at launching 2 towers, which is one which is completed tower and other one a new tower, the one that we have launched. So hopefully, in quarter 4, I just now said that we are looking at the launch of that tower. And that's when we're going to see much more inventory being sale. Right now, on the overall market positioning side, we are very well positioned right now. We're getting a good pricing in the market. Our current realization is in close to around INR 20,000 a square feet. So from the launch perspective, we are quite hopeful that we'll do a very successful launch in quarter 4. Just to put that into perspective. So when we acquired the project, there was existing building there with sales done. So the strategic call was today, let's get that front building done, like Rajat said, we'll be completing that building in the next quarter. And we just believe that we'll get a greater value. So that stock was never opened up for sale, focus is on completing it and getting a higher value for the completed product. On the towers that we have opened up, we have seen extremely good sales. Now we are waiting for additional approvals to come and then we launch those cases. So Thane is absolutely not a concern in terms of sales or velocity. Sure. Understood. And also on the commercial side, so Zentech since we have opened for sale, there also, I mean, the inventory this quarter, we have sold around 2% of the inventory because from 95 days moved to 93. So what kind of response are we seeing there? And also, if you can give some update on the Aero City project, please? Yes, sure. On the Zentech project, what you are seeing, we have sold almost 60,000 square feet of area. We have also leased, which we're going to be announcing very soon a substantial area to one of the large retail players. I think that we are announcing very soon, which is close to around 80,000-odd square feet. We are getting very good response right now. We're in discussions to do a couple of large leasing and some sales transactions. So Zentech is getting good demand from the micro market, and that's what we are poised to do it. We are hopeful by end of this year, we'll be able to do a substantial amount of sales at ZenTech. Aercity also -- just coming back on Zentech, we're looking at getting the OC of the asset by February of the financial year. So hopefully, in quarter 4, we'll get the OC for ZenTech. And then that's when we say we'll expect the sales to get even more robust. On AerCity, right now, we are fulfilling a lot of RFPs right now. A lot of large players have shown interest in AerCity. We are hoping to get the OC of AerroCity in January, which is close to 1.2 million this year. And that's when I think the leasing will gain momentum of that asset. So on the AOP piece, on a plan piece, we seem to be on track on both these assets on the commercial side. So to dig more on the AerroCity project, maybe if you can give some color on what kind of interest we are seeing. I think it's around 2 million square feet of an area. So what kind of interest have we seen? And at what rates are we targeting? I mean, if you can give some color on -- with respect to the vicinity rates, something like that, please? Yes. So I think just to give you a perspective, right now, we are getting OC for the first 1.2 million square feet. The balance 9 lakh-odd square feet is something that we will do build in Phase 2, which will start pouring concrete in the next financial year. On the ongoing rental side, the current micro market is running at a rent of around INR 55 to INR 60 a square feet on the leasable area. And most of the traction that we are receiving right now is from large IT players who have been looking at 3 lakh to 4 lakh kind of square feet area. So I think most of these transactions will fructify once we get closer to OC. And as we speak, I think a lot of visits are happening at the site. So we are very hopeful that we should be able to close a large transaction in city soon. Understood. And any update on the Heal land? Hepa land, we are working. I think there were some -- there is a work in progress. So we've got a lot of work done in the last few months. We should be able to conclude the sale agreement by end of December. and start putting for approval. So I think we should be able to get the approvals in the next 6 months, and then we'll start pouring concrete. Sure. And any plans on adding further commercial assets? I mean, if we have some pipeline or are we scouting some projects there because we are hearing more and more developers get on the commercial side. So any additions that we have in our plans apart from the assets that we are already having? Yes. Of course, I think we're seeing commercial as a good growth sector for us. I think as building a large annuity income. Right now, AeroCity and Hebal will add as annuity income for us by 2030. We are also looking at opportunities in growing in good markets like Pune, where we are looking at business development activities for commercial. Yes, I think from a business perspective, we are quite optimistic about this segment, and we'll see if the right opportunity come, we'll look at investing in that o. Sure. So now coming to the debt side, I mean, it's commendable that despite the project additions, I understand they are largely asset-light in nature. So despite these additions, the debt has remained largely stable. So -- and I understand you did highlight about the collections part. So how do we see debt by the end of the year or maybe if you can give some target for FY '27, '28? So if you look at our Slide #22 in our presentation, if I not be doing anything, then debt will be down by INR 800 crores in the next 12 months. That's the scheduled repayment. And another second year, it will be down by INR 1,646 crores. So we have given the debt repayment schedule, how the next 4 years, if assuming I'm not adding any debt, that will automatically become 0. However, business is built on the basis of leverage. And as today, opportunities are more in the marketplace, and we are in growth phase. And hence, we will be continue to be utilizing the capital, which is available to acquire land and fund our growth. But at the same time, we are mindful about the debt and some of the debt which we repaid through the scheduled rep has during some time back, the SDFC platform, which we signed about a year back. Out of that, the 12 months was a lock-in period. The lock-in period over the first tranche of repayment done by INR 100 crores, and we will be progressing as we launching project, we keep paying the debt. And then continuously, we are monitoring the leverage versus the growth and we'll be continuously keeping the balance of it. Understood. So taking that forward, so on the project additions part, I mean, I understand Rajat highlighted for the Pune region. So additionally, how is the pipeline looking from the project additions front, especially in Mumbai and the South region? And what kind of additions are we expecting? Will there be more outright acquisitions or the focus remains on the asset model? So I'll just speak to the South, Malana here. I'll speak to the South. And basically, the pipeline is quite strong. There are quite a number of opportunities that we are pursuing in this quarter itself, as you saw that the KDB Hardware Park and Balager, we closed in South and of course, West is going to talk about Chambura and Malabar Hills. So coming back to the pipeline that is there that without getting into too much of details just because the last signatures have not happened, we have around INR 400 crores from HDFC to be invested. So we have -- which is in our good interest that we have to deploy it as quickly as possible. To answer your question that whether we are going to go for joint development kind of arrangement or outright. It's always an evaluation and also the preference of the landlord. When there is a money that's available for us at a 17% payable enable, if the landlord is going to make 25% from the current valuation of the land, definitely, we would like to -- we want to take that risk and buy the land parcel and then go for it, right? So it is just that calculation and also, of course, capital investment and the risk against it that will be made and then the decisions are going to be taken. So it's one way or the other. It is not really that how much capital we want to invest and there's no target. Any capital for growth will be invested. So yes, so that is the way it works in terms of the investment side. So just to add to what Malana said, I mean, so we continue to look at good opportunities in Mumbai and Pune. We're obviously the preferred player right now in the Mumbai different market. continue to add marquee assets like Malabah in Chembur. And right now also, as we speak, we're evaluating top redevelopment opportunity. On a business momentum side, as I think Malana also said that we are agnostic to the kind of opportunity coming. We evaluate on the basis of our internal parameters and be it a land buyout or a JDA or a redevelopment, we look at opportunity and then we decide whether we want to do it. But just to answer your question, I think we are very hopeful and very positive. I think the market is doing pretty well, and we continue -- we'll continue to add good assets in our portfolio. Right now, we are in advanced discussion with a couple of assets, and we hope to close them in the next half of the financial year. So maybe what would be the total GDV that we are currently into active discussions or maybe in advanced stages of discussions with the landlords? What I would say, is for whatever we acquired H1 GDV is worth INR 9,100 crores, which is already published, I also said. And rest of the -- as on -- as Mr. Malana and Mr. Rajat said, unless we sign the last paper, we will not be disclosing or which is not appropriate on our part to disclose what the GDV, what is the area, what is the location, et cetera. And as and when we conclude the deal, we'll keep updating and announcing those details. Understood. And one last question from my side. For the Malaba Hill project, what is the kind of profitability that we have kept into the consideration? What is the project level EBITDA margin that we have targeted? I would request Mr. Rajat to take this question. Yes. So I think without disclosing the exact EBITDA, I think the margins are pretty healthy. Of course, Malaba Hill is the most premium part of Mumbai and of course, most of the premium part of India. So the margins are pretty strong and healthy. And I think the margins are also meeting our internal requirements that are there. So the EBITDA margins, if I can tell you is upwards of 30% roughly. We'll take our next question from the line of Deepak Parwani from Swan Investments. Sir, firstly, I wanted to check it out. I mean, in the first half, we -- last year, we did a presales of INR 5,000 crores. This time in first half on the sustained basis, we had done a presales of roughly INR 2,400-something crores. So if you can share the broader thoughts, I mean, how should we look into FY '26 and '27 presales based on our launch pipeline as well as how do you see the current demand environment in each of the micro markets? Just looking at the numbers for FY '27 and so on and so forth would be a little bit of a stretch. And whatever is left out in this year, the second half of the year, as you rightly pointed out, we do around INR 1,250 crores to INR 1,300 crores of sustenance. And we think that we will continue to have that kind of sustenance numbers more or less, so which means that we've got another INR 2,600 crores -- and as we said that we have around INR 12,000 crores of launches that's coming up, even if you're able to launch around 80% of that INR 9,000 crores or INR 10,000 crores, we sell anywhere from 30% to 50%. And so I would not want to pick a number. I will let you do the calculation by yourself. So on some project could be 20%, some project could be 40%. So it's anybody's guess, right? But bringing the product to the market is going to be our responsibility, and that's probably going to happen up to around INR 9,000 crores to INR 10,000 crores. Answer to -- on the demand side, I think the demand seems to be pretty robust for top branded players like for Vantra. -- in all the micro markets where we are operating right now, I think we continue to be one of the top leaders in that micro market. both on the pricing side and also on the velocity side. So we're obviously very, very positive with these launches coming in. I think and now I'm sure we'll be able to showcase Purvanka brands and the kind of Purvanka products, especially in markets like Mumbai, where we will be something new like Ahi Lokunwala or maybe the Pali product that we have built in. So we seem to be -- we continue to be very, very positive with the market. The current market trend is very encouraging. So we don't see any challenges out there. Okay. And just continuing on the launch pipeline, we mentioned about we would be looking out to launch INR 12,000 crore kind of inventory in the H2. Sir, just wanted to seek it out, is it a full project? Or what would be the inventory value out of this that would get launched? So speaking about South and if you really look at around 11 projects, 9 in Bangalore, 1 in Coimbatore, 1 in Cochin, out of which the KIADB and the Cochin project that is the Win 2 are the 2 large projects, right? So basically, they will run for a longer time. And if you look at all other projects, it's 700,000, 600,000, 40,000, 520,000. We believe that there is no phasing for any of these things. They're all phase development and phase launch. So looking at the demand that what we have in KIADB, even though it is going to be in excess of 2,800 units, I believe it is going to be launch. And meaning to say the tower by tower that we sell, but launch is going to be launch. So probably that answers your question because it's quite distributed. I don't see a problem that all of them is going to be in a single launch. So for example, why I'm coming out to that point? For example, if I'm looking into the presentation, Dean project, that is 0.36 million square feet sellable area. Out of this, we are looking out to launch only the 60,000 square feet. Yes. I just -- I wanted to add to what Malana said in the West, I think the size of the projects are pretty huge, both in terms of the value and also sometimes in terms of the area also like in Thane is a very large project. So we'll be launching in branches, including Andiri Lokanwala where we're going to get -- we will do our launches in 2 phases. obviously getting INR 1,000-odd crores of inventory worth of inventory in Nandikunwala, almost around INR 1,000 crores worth of inventory in Thane. In Palir also, I think we would like to do INR607006000, 7,000 feet of area in tranches because I think this is a very, very high-end top-of-the-line project, and we would like to first showcase to the market, launch a small inventory and then probably you go with a larger launch. That's what the plan is. If I can add to help you with the math, if you are looking at our presentation, Slide #19, which we are saying is we have launched our guidance is 15.46 million square feet. Out of that we will take to the market 9.28 million square feet. If you look at the last row on the slide. So if I value today 9.28 million square feet as an average rate between Mumbai and Bangalore and Pune, say, INR 11,000 per square feet, it's come about INR 10,000 crores value. And hence, that is what Mana has said while speaking that we'll be bringing the inventory about INR 12,000 crores of inventory we'll bring to the market. Hope that clarifies. Yes. That clarifies my question. Yes. And second part, if you can also give some sense of project completion and delivery time line. I think in the first half, we have done approximately 1,300 units. How should we this delivery part in second half? And how should we see the revenue recognition in the second half? Is it going to grow exponentially with any other significant project, which is getting completed and hitting the revenues? Or how should we see from a P&L perspective in the second half of FY '26? Sure. So if you look at our Slide #34 in our ICP, we have 2.97 million square feet ready inventory OC received 352 units. Besides this, we are going to get some more OC during the period -- during the second half year of the period. And there were some issues in terms of giving position and handover in Bengaluru because of the IC issue and the registration issue, as you would have read in the newspaper. And that is where 2 of our large projects, we could not give position. However, our teams are working with the government and there is some -- the census also going on in the state government, thereby the government offices are a bit busy. But now I think everything is falling in place. And we are reasonably sure that we'll be able to hand over a substantial part of it during the second half of the period. And year as a whole, our numbers will be much better than which we have published as of now. Okay. So initial plan of delivering 3,000 units during this year, are we on track? Just to round it off, it's basically 4.3 million square feet is what we thought about. We gave the guidance that we are going to be delivering. And so basically now around 1.3 million is what we have delivered another 3 million square feet is what needs to be just registered. It has nothing to do with the construction delivery. Construction is over. OC has been received more than 2,000 units. The snacks have been already been corrected. -- where customers have come and accepted. It is the question here is that without the registration, it is hard to hand it over to the customer. So we've not handed over. Without the registration, we are not able to recognize them as sold units. So that's the reason that we are waiting for it. And it's -- in fact, you will see from this quarter and the next quarter that 5 months remaining in this second half of the year, we should be doing well. Okay. And just to get the update on recent 4 project addition, which we have done. So you can give us the broader status on each of these projects? How should we see into each of these projects? And what would be broadly the time line we are considering for launching each of the projects, for example, North Bangalore, Chambur, Mumbai and then East Bangalore and Malabar Hills? I'll talk about the 2 projects in Bangalore, the 24.59 acres in Hardware Park. It's around 3.48 million square feet of developable area. I think we signed the agreement some 7 months back or so, 6.5, 7 months back. And in probably January, February that this project is going to get launched. We are substantially that the approvals are already there and a little bit of the MOA and PCB approvals are pending and otherwise, everything is ready. And I'm sure that January, February, it will happen. Same thing with Balagareame again, it was signed 6 months back. Again, it is in advanced stage of approvals. That is a joint development in East Bangalore. That's what we call that. So both of them, I think both of them should be in this year. Other 2 projects which we added during the first half was 8 societies at Chenbur and the Malar Hills in Malara Hills, another redevelopment project. I'm requesting Mr. Rajat to throw some light on that, our plans for launch and these 2 projects. Yes, yes. So I think both these projects, I think, are redevelopment and they're all in this 39 scheme. And you're aware the redevelop projects are taking normally a longer time because of the society involvement and the delay process, et cetera, et cetera. So just to give a time perspective, I think we should be able to launch both these projects by quarter 3 or quarter 4 in the next financial year. Okay. And in both of these redevelopment projects, what is the kind of area sharing or broad sharing, which has been done with the tenant? Or how should we see from a profitability perspective in each of these projects? So both the projects are really -- I mean, in terms of the locations, Chembur being, I think, one of the most hottest property markets right now in MMR. This is close to a 5-acre land parcel that we are doing in Chembur and then probably one of the largest land parcels that we are doing in Malaba Hill. Both these projects are really one of the best land parcels that you have in the micro market. And we are very -- I think on the profitability side, I think both of them will fit out better than the market returns right now, I think because one is the size of the project and also, I think the location that they are in. So as I said earlier also, I think we're very, very positive with both these assets, and we are working very hard to finalize the due diligence and get these launches on track. We'll take our next question from the line of Chintan Mehta from Poiska Family Office. Sir, I just want to understand on debt part. What is the peak debt which we are targeting even in a per square foot basis? And we can expect debt per square foot for commercial to start declining once we monetize or rental yield start coming? If you look at today as an end of the quarter, we were a net debt of INR 2,894 crores. And if I look at the debt in terms of per square feet per square feet on residential was INR 1,111 sorry, it was blended debt and residential, it was INR 859 per square feet and commercial was INR 250 per square feet. Our commercial debt comprised of the debt for the 2 of our commercial projects, which the project Gentech, which we have already sold part of it, about 50,000 square feet already sold. And as it completes, we are planning to sell this project. And as we sell the project, the debt will be repaid. And the commercial project, AerCity, where we are planning to retain and lease it out once we lease this asset, we have taken a loan from SBI to construct the finance. There will be some more drawdown will happen for completing this asset. Once asset is complete, we'll be convert this loan to LRD facility. That is the terms already approved by SBI and the construction finance itself. And hence, it will go up a bit in the case of AerroCity to fund the rest of the construction cost. But once project is completed and leased and once we convert this loan into LRD facility, it will come down as far as per square feet basis as far as overall also. Okay. And sir, both of these major 2 projects will get completed by next year. So other commercial projects which you are targeting next 2 financial year, if you can throw some light on... 2 assets, as Mr. Rajat said during his conversation, we are expecting to complete or get the OC for both these assets by before -- on or before the March 31. And Gene, which is the first asset which I have spoken, have already partly sold and leasing is also underway, and we will be targeting to selling the substantial part of this asset during the coming financial year. As far as the second asset is concerned, as it completes a lot of inquiries have been done. Our target to lease is 1.2 million square feet. Once leasing will start, then as Mr. Rajat said, we'll be targeting to start construction for rest of the area in the next financial year. As there are no further questions, I now hand over the call to management for closing comments. Over to you, sir. Thank you. Thank you, everybody, for joining for this call. And if you need any further questions, any clarification, please write to us. me and my team is always available to answer your all questions and clarification. Thank you so much once again. Thank you. On behalf of Emkay Global Financial Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.