Shriram Properties Limited (SHRIRAMPPS.NS) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY '26 Earnings Conference Call hosted by Shriram Properties Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Murali, Chairman and Managing Director from Shriram Properties. Thank you, and over to you, sir.

Thank you. Good evening, everyone, and thank you for joining us today. We are pleased to share that Q2 has been yet another encouraging quarter for Shriram Properties with strong operational performance and sequential growth across key metrics. Despite temporary headwinds on the financial side due to regulatory transitions in Bangalore, our fundamentals remain robust, and we are confident of delivering a strong second half and achieving our full year goals. During the quarter, we achieved sales volumes of about 1.1 million square feet, up 39% quarter-on-quarter, valued at INR 685 crores, a growth of 58% sequentially. Cumulatively, for the first half sales stood at about 2 million square feet was INR 1,126 crores, reflecting a 19% year-on-year increase. In terms of business development, FY '26 has been a productive year so far. We added 5 new projects with an aggregate development potential of 2.3 million square feet and a GDP of INR 2,350 crores. We are also at advanced stages of finalizing additional projects with over 6 million square feet of potential in the second half, providing healthy visibility for growth ahead. Looking forward with multiple launches lined up and regulatory issues behind us, we expect a strong rebound in H2, driven by project completions and revenue recognition. Our priorities remain on accelerating execution, driving cash flow generation and unlocking value from our growth portfolio. With that, let me now hand it over to Mr. Ravindra Pandey, CFO, to take you through the financial details.

Thank you, sir. Good evening, everyone. My name is Ravindra Pandey. I'm the CFO of the Shriram Properties. Thank you for taking time to join us today as we present the performance highlights for Q3 FY '26. We have uploaded the presentation on the website of the company and the stock exchanges, and I hope you all have access to it. Over the next 2 minutes, I will walk you through the operational and financial performance of the company for the quarter gone by and our strategic priorities and growth road map for H2 FY '26. I'll be referring to the slides of the presentation what we have uploaded. I'm referring to the Slide #2. So before we move to the performance section, a quick overview of Shriram Properties, especially for those who have joined the call for the first time. We have leadership and trust with against across Bangalore, Chennai, Kolkata and Pune. Our delivery record stands at 48 completed projects and over 29 million delivered backed by consistent execution standards. Customer trust continues to be our core strength, over 31,000 happy customers with nearly 1/4 of our sales driven by referrals. Financially, we remain developer in the sector with a debt equity of 0.3x and CS A- positive rating, reaffirming our governance and financial prudence. In essence, Shriram Properties is a credible mid-market and mid-premium residential bank built on legacy driven by performance and trusted by thousands. Moving to the Slide #4 of the presentation. Q2 FY '26 was one of the challenging quarters as the regional industry witnessed once in a lifetime event involving division of BMP, the old municipal corporation effective 2nd of September 2025. This transition nearly prized real estate success in approvals, completion certificates and issue of parks that are mandatory for unit registration ahead of handover and recognition. The single biggest factor shaped the performance of our regional players, making the quarter as one of the most difficult quarters in recent times. Viewed in this context, SCL's performance is satisfactory. We delivered strong operational KPIs, robust Y-o-Y growth in financial performance, but our absolute numbers were muted, thus assessing margins and profitability for the quarter. With stabilizing the normalcy returning from end of October. Outlook for us looks robust. Group corporations have started functioning. Approvals have started moving. OCC files started getting cleared. ECAA issues resumed. Many of our pending OCs have also started flowing out. In view of the above, we expect a stronger hand, higher revenue recognition, a stronger pipeline of launches, better operating leverage, and we remain confident of reporting last ground in FY '23. Slide #5 deferred by us in Q2. Over 650 units 5 projects with aggregating revenue income potential of INR 420 crores got deferred. We expect the units to be handed over to the customers over time during the second half as the OCA here on. Slide #7 is our KPI snapshot. Let me now attempt to highlight our operational and financial performance in detail. Q2 had a very strong quarter operationally. We achieved 1.14 million square feet of sales volume, which is 39% higher on Q-o-Q basis and 10% higher on Y-o-Y basis. This reflects the excellent response to our recent launches. Sales value stood at INR 685 crores, registering a 55% Q-o-Q increase and 21% year-on-year growth. This demonstrates both healthy absorption and firm pricing in our micro markets. Collections improved to INR 388 crores, growing 15% Q-o-Q and 7% Y-o-Y. This is satisfactory considering delay in OCC and registrations. We handed over 764 units in Q2, up 3% Q-o-Q and up 3% Y-o-Y. Nearly 56% of these handovers were in JV projects, which strengthened execution momentum, although had limited impact on the top line. Overall, Q2 reflected strong operational resilience and customer confidence even in a disrupted regulatory environment. Looking at the first half of the year, H1 sales volume was 1.96 million square feet, up 13% year-on-year, showing sustained market traction. Also, it reflects 40% of our annual sales target. H1 sales value reached INR 1,126 crores, which is a solid 19% Y-o-Y growth, driven by strong launch performance and consistent absorption. H1 collections were at INR 725 crores, growing 6% Y-o-Y. H1 hand stood at 1,504 units, representing 34% Y-o-Y increase. With slowing now and issuance resuming post October, we expect significantly higher handovers and robust revenue recognition in -- despite regulatory disruptions, we delivered a satisfactory financial performance. Revenue stood at INR 229 crores, reflecting 8% Y-o-Y increase. Gross profit at INR 61 crores, growing 34% Y-o-Y with gross margins remaining healthy and consistent at over 30% EBITDA for the quarter was INR 23 crores despite higher overhead absorption due to deferred revenue recognition. And finally, PAT for the quarter was INR 9 crores, a meaningful improvement over last year when we had reported loss. I want to highlight that these Y-o-Y growth numbers reflect the lower base of the previous year. Our absolute revenues and absolute for the quarter remain modest full -- had the increase and CAT processed on time, our Q2 top line and profitability would have been significantly higher. But since these are only deferment of revenue, we remain confident of delivering target on a full year basis. Overall, the operational engine has remained strong. Margins are stable and the financial performance reflects resilience in the respective quarter. Slide #9. This slide contains a summary of our discussion in slides. Slide #10, business development highlights. On the BD side, we have added high-quality projects in our pipeline during H1 FY '26, having potential to develop 2.3 million square feet with a GDV of INR 2,350 crores. Of this, 3 projects have been concluded during October '25 alone and highlight the momentum buildup on the back of aggressive efforts taken during this year. Across all 5 additions, the common thread is clear, effective location, capital efficiency structure, high velocity micro market and strong margin potential. But what is even more potential is what lies ahead. We are on track to add another 5, 6 new projects with over 6 million square feet of development potential over the next few months. We have visibility on these new additions as these projects are already in advanced stage of diligence closure and documentation. Apart from this, our funnel with 20-plus million square feet under active evaluation across Bangalore, Chennai and Pune. We are therefore confident of moving ahead with our targeted pipeline addition over next 12 to 18 months. Slide #11, project pipeline and business development. This slide highlights the status of our current project pipeline, both ongoing and upcoming projects. The upcoming projects alone represent a GDP of over INR 11,400 crores. This ownership well diversified between owned JDA, JV and. We are clearly on track to nearly doubling our upcoming pipeline within the next 18 to 24 months, maintaining capital discipline while deepening our presence in high velocity micro market. Slide #12 launch highlights. We launched 3 projects during the first half and all have delivered solid traction. Code Superstar launched in May with a projected area of 0.89 million square feet and 0.44 million square feet opened in Phase 1. We have already sold 48%. Codan at Electronic City in Bangalore launched in July, 0.5 million square feet launched and we have achieved an impressive 80% sell-through reflecting a strong demand in this corridor. Efield Phase 2 in Kolkata launched in September. Out of 0.28 million square feet leased, we have already sold 43%, showing healthy momentum in the Kolkata region as well. Across markets, the response has been robust. We are that launch sentiment and demand remain very strong. Slide #13 [indiscernible] launch. Looking ahead, we have a high confidence launch lineup of 2.7 million square feet with GDV of nearly INR 2,200 crores across Bangalore, Chennai and Tak. All these launches are well, micro market validated and backed by strong launch momentum. This position us a very strong H2 in terms of sales and collection. Slide #14, this slide highlights our handover and income outlook. We have a very strong and highly visible set of projects ready for handover during H2. With [indiscernible] and starting, we will be handling over nearly 2,800 units during 2.5-plus million started with over INR 1,000 crores of revenue recognition potential. We remain confident of reaching our handover target of 3,000 to 3,500 units for the full year. This is one of the most robust recognition pipeline we have had in the recent years. In summary, the pipeline is ready, execution engine is aligned and H2 is positioned for a robust growth. Slide #15, project completion outlook. This slide shows the status of projects which are ready -- getting ready for the delivery during the year. Slide #16. This is the glimpse of awards we received during the year. Slide #18, financial highlights. Let me now shift gears to highlight our financial performance and outlook. We already discussed these points in our earlier slides. To recap, Q2 was impacted by the GDA transition and resultant deferred handover and deferred revenue recognition across multiple completed projects. Our Y-o-Y growth trend has been strong due to lower base of last year, but absolute revenue and earnings were muted, reflecting deferred revenue recognition. This is slowly temping, and we are confident of recouping last during H2 FY '22. The good news is that the situation is already normalizing. OCs have now been received in all but one project and issuance process has begun. With project completions on track and the regulatory environment is stabilizing, we have a strong revenue recognition outlook for H2 and deferred income from H1. Slide #19, financial highlight. Let me summarize the financials. Q2 operating revenues have grown 49% Y-o-Y to INR 20.5 crores, while total revenues has grown 48% Y-o-Y to INR 229 crores. The strong growth trends reflect lower base of last year when we suffered an initial Production of Bangalore last year. Q2 EBITDA remained healthy at INR 23.3 crores, up 73% and our interest charges has dropped by 19% Y-o-Y to INR 22 crores. Consequently, we recorded net profit of INR 8.6 crores against negative net profit last year. The muted quarterly earnings is solely on account of reduced revenue as our gross margins have remained. However, on a half year basis, our performance is satisfactory. H1 operating revenue grew 32% Y-o-Y to INR 475 crores and total revenue grew 34%. H1 gross profit is INR 143 crores, up 53% Y-o-Y. Gross margin is stable at 32%, reflecting a strong underlying project profitability. Other expenses were slightly higher because of brand building efforts and nonrecurring onetime settlement cost associated with Ashiana in Kolkata as well as new launches during the first half. H1 EBITDA is around INR 70 crores, broadly in line with last year. The temporary softness in absolute profit is entirely due to deferred revenue recognition from Finance costs lower by 18% Y-o-Y. H1 PAT stood at INR 29 crores compared to INR 17 crores in last year H1. With projects now reaching [indiscernible] overseas, we expect significantly stronger revenue and profit momentum in H2 as the deferred income will start. Slide #20. This slide summarizes our discussion in previous slides. Slide #21, consolidated cash flows. On cash flow, we have maintained strong discipline through a disruptive quarter. Operating inflows improved year-on-year with INR 264 crores collected in Q2 and INR 485 crores in H1 despite the delays in initiation. As handover picks up in H2, this number will strengthen further. Construction and launch spending continued as planned, and we still delivered a positive operating cash flow of INR 52 crores in Q2. We also generated INR 99 crores of net free cash flows in Q2 even after investing INR 68 crores into new projects. For H1, we have invested INR 143 crores into new acquisitions, fully aligned with our pipeline expansion strategy. Our closing cash balances stand at INR 286 crores, giving us ample liquidity to support ongoing construction and capture opportunities as the market stab. Overall, cash flow remains healthy, well managed and positioned to accelerate as milestone collections strength. Slide #22, debt profile. Our balance sheet continues to remain very strong. Net debt stands at INR 407 crores, and our net debt to equity is 0.29x, well within our comfort range and healthier than last year. Our cost of debt has distinctly reduced to 11.1%. We continue to enjoy A- positive outlook rating from CRISIL, reaffirming our credit strength. Overall, we have a robust balance sheet, ample funding capacity and the strength to support our growth pipeline confidently. Slide #24, business outlook. With the new GBA organization stabilizing and approvals growing, we see a robust outlook for H2. A strong launch pipeline lined up already and on track for execution as well as likely robust handover momentum with process progressing already, we see significant revenue recognition line during H2. 2,500-plus units are getting ready for handover with revenue recognition potential of over INR 1,000 crores. A significant part of this will materialize in H2, thus improving our outlook for the full year. Overall, we remain confident of delivery on our FY '26 target. Also, as development efforts on our sales and growing momentum gives us confidence on targeted pipeline addition. This in turn should enable us to sustain growth momentum in the coming years. Slide #25 is the guidance given for FY '26, and we remain confident of achieving the same. Slide #26, mission 154. Our mission for delivering significant value for our shareholders by FY '28 remains fully intact. As of September '25, we have 9.8 million square feet of India pending revenue recognition and it represents a potential revenue of over INR 5,000-plus crores over the next 3 years. This should provide significant boost earnings and move us towards the mission target comfortably. Meanwhile, on the supply side, to deliver the mission, we need about 30 million, 35 million square feet over the next 3 years -- we already have 2.4 million square feet today, and we are adding another 15 million to 20 million square feet over the next 12 to 18 months. So our growth engine is fully aligned. Our supply is secured, and we are firmly on track to deliver Mission 154. To summarize before I end the presentation, despite the temporary regulatory disruptions in Bangalore, we have maintained strong momentum in sales, collection and project execution. With the GA transition stabilizing and issues largely behind us, we are entering year 2 on a very solid footing. Our launch pipeline is strong. Our balance sheet is healthy and demand across key markets remains robust. We are confident of delivering a strong rebound in 2 and stay firmly to our FY -- thank you all for your continued support. I now hand over the call back to the operator. Myself, along with CEO and CFD will be to answer all your questions.

[Operator Instructions] Thank you. First question comes from the line of Diwakar from Prudent Equity.

First question on the contingent liability pertaining to the Kolkata project. What is the total amount?

INR 25 crores, this is Gopal. So the contingent liability on the books is INR 259 crores. Substantial part of it is already provided for.

Okay. And sir, what is the -- what are the provision we are making per quarter basis on this project?

Historically, it used to be around INR 5 crores per quarter. Since we are almost at the end of the provision, we are -- during this quarter, Q2 FY '26, we have provided INR 1.7 -- on a half yearly basis, we have provided INR 3.2 crores as compared to INR 16 crores for the previous year. INR 16 crores... We are at the end of the process. And we also believe we should have a resolution on the ongoing discussions soon. And therefore, we see this whole provision disappearing in the coming quarters, hopefully, during this year itself.

Yes. So sir, this is this case is pending in High Court, right? High Court of Bar?

Yes, correct.

So when will be the next hearing of the same?

You will hear from us very soon on this.

Okay. Okay. And sir, one more question. Basically, we are tracking your company from last 3, 4 years. So I remember in I think '23, '24, we used to give guidance of PAT margin around that would be around INR 100 crore PAT. But it's been 3, 4 years and we have not touched INR 80 crores, INR 85 crores. So how do you plan to reach INR 100 crore PAT or INR 1,000 crores INR 100 crores, 10% PAT margin?

So as you are aware, we are working towards similar margins and I don't know how we reach INR 100 crores on the past turnover, but I'm happy to take this question separately. But on an overall basis over the last few years, we have been in the mid-20s EBITDA margin, which is what we have consistently guided the market. And we've always said that we'll be in the 9% to 11% at the PBT level. And FY '25, PAT margin was about 8%, INR 77 crores on overall revenue recognition of about INR 816 crores. So we are on the path. You would -- in this year, hopefully, we will reach INR 1,000-odd crores of revenue that we talked about. We should hopefully exceed that number this year as we guided at the beginning of the year. And that should actually translate into the margin -- profitability level that you envisaged or you alluded to in the call just now.

Yes. sir, but the revenue delay is kind of a normal. I think in Q4, it happened also that the booking, we were not able to book some the venue. And same thing happened this quarter. So why -- I know for real estate company, this is quite normal, the delay in OC. But for us, it is -- it happens in a very continuous fashion.

I mean Let me correct here. The facts are incorrect. Last year, Q1, we had this. Q4 was a bumper quarter as you may have -- if you are tracking it for 3, 4 years, you will be knowing that. Q2 last year was the introduction of new Tata and entire real estate sector in Bengaluru, Karnataka has suffered, we did as well. That's what Mr. Pande alluded to when we talked about the lower base of last year. And as you are perhaps aware, municipal corporation in Bangalore like in Mumbai has got divided into 5 pieces from effective 3rd of September. And there has been a complete stoppage or lack of progress in any front. And if you're tracking real sector and you could track the real estate players in Bangalore, you would see that they brigade everybody's revenue recognition, earnings and margins, if you see, all of them would have gone through the difficulty during Q2 because it's a macro environment. Like in any other sector, the sector also goes through quarter-to-quarter volatility. At the end, what matters is are we delivering consistently and are we progressing. If I -- if you look at over the last 3 to 4 years, our earnings have moved. As you would probably remember, when we -- if you say you're tracking from '22, we about INR 18 crores, INR 19 crores of moved up all the way to INR crores of profit and a margin of about 8% now and we are working towards stabilizing the margin of around 10% at the level...

Okay, sir. Sir, I just would like to know in our inventory, there is around INR 2,600 crores. So can you just give me a split of finished what is the finished good and the work in progress in this...

Sorry, can you repeat the question?

In inventory, we have around INR 2,600 crores. So what will be the finished inventory and what will be the work in progress in this?

So just to clarify, we have very insignificant part of finished goods inventory in our books the inventory in the balance sheet, what you see is all work in progress projects. Completed projects receiving OC, maybe the transient part would be there. As you can see from the slide here, the value of projects that have received or pending OC as of 30th September and those have come through is about INR 300 crores, as you can see in Slide #15, 4 rows. And those are inventories that you can say there is a value of inventory of finished goods, but these are all sold as well. Let me put this number in a different way. We have about -- out of 19 million, 20 million square feet ongoing, we have an unsold inventory of about 3 million square feet, 3-plus million square feet. And therefore, 85% of the inventory is sold. Therefore, all the work in progress you see in the balance sheet is all project progress against which you have customer advances in the left-hand side of the balance sheet. Practically speaking, companies [indiscernible].

The next question comes from the line of Nitin Jain from Fair Value Advisors.

My first question is regarding the BBMP restructuring that you mentioned. So what I wanted to know is that it must have been like the company must have known about it earlier, right? So I'm just surprised that there was no mention of it in the last call that this kind of restructuring is upcoming. So it's kind of surprise...

No, it is not. Restructuring was known. The act was passed somewhere in May, June this year by the Karnataka assembly. Implementation time was not known to anyone. And even if it was known, it would have been impossible. It's not a manufacturing firm that we can prepone the dispatches. Even if it was known, there's a time line which is required for completing the project. What was not known, what was surprised to most players was that when the 3rd of September or 2nd of September, government decided that, that will be the effective date and they just kicked off the process. BPMP stopped taking decision, be it the plan approvals or be it the OCs and QA and Q -- the new organization took some time to stabilize. There was no officers not appointed as Mr. Panda alluded to in the speech. Offices are not appointed. Offices appointed, but they don't know their roles and responsibilities. They have appointed -- they are all senior bureaucrats by the way. These are the senior most commissioners and officers have been appointed as the commissioner there and across the entire chain, the organization gets divided. You just imagine like Mah Palika or Bangalore, government decides to implement a division into Mumbai, North, Southeast, West and all that, it takes time. This is a onetime transition which happens like we went through in RERA. It took more than a year to stabilize. Fortunately, here now from mid of October, we have seen officers taking charge and releasing papers. So this is an unexpected event. And looking back, one can say, yes, we should have planned for it. I don't think it is possible. to plan either an accelerated construction or accelerated paper exit or accelerated paperwork, both would be difficult. And in such a large historical transition, from their perspective, a couple of months of delay is not something that they would be worried about. And from our perspective, as a listed company, quarter-to-quarter, it makes a difference. But if you look at it in a fiscal year as a whole, I don't think it will make any significant difference to us as well as any other player in southern regional sector.

Sure. So just a follow-up to that. It's just -- because we've been following the company for some time, it's happening that the company is repeatedly finding itself in regulatory hurdles. Like last year, it was in Maharashtra, now Karnataka. So is it maybe somewhere we are falling short of planning? Or what exactly? Can you provide some color?

No, I think it's an incorrect impression just to be perfectly candid. And every company goes through in a new market, we took almost 6 months of time to overcome the regulatory, whatever is the issues which we had or learnings we had. It is true for any new market. If a pharmaceutical company goes to United States, they will take some time to learn. And that's the risk of entering into new market apart from customers accepting your brand. And in Bangalore or any market for that matter, in Bangalore, we've had -- in the last 4 years, we have had QA issues last year and BBMP transition into 5 different corporations this year. It happens. It happens in a business. We know how to run this business. And as long as we are able to overcome -- mitigate and overcome these challenges, these are the industry challenges, right? Even a stabilized service sector like software company will have a problem. Suddenly, U.S. decides to introduce a new law. If you're outside the business, yes, it's very easy to say we should have predicted it. If you're inside the business, you need to be able to manage the challenges and overcome and I'm sure we all experienced enough in the business in the sector, like we did in Pune, like we did in last year in Bangalore. I hope you appreciate that we did with all the challenges we had in Qatar, which was introduced as a new concept in Bangalore last year, QA was made mandatory. We still delivered 3,300 homes. So I think it is doable. Yes, there will always be some -- it is not for FMCG business that every quarter will run exactly as smooth as the previous month and previous quarter. That's the nature of business. But I assume like Shriram, all other players are seasoned enough to overcome these challenges. We assured, these are temporary aberrations in volumes and they get caught up in subsequent quarters like we did last year.

That's very helpful, sir. My next question is on the OCs. So you mentioned that the OCs were delayed and the collection growth was slow correspondingly. However, the handover growth was pretty good. So how do we reconcile the 2, like collection growth being slow, but handover was good?

Handover growth is not that robust. It should have been much higher. These are the projects that we have got OCs and TA, they were all OCs were received, handovers were being given. Therefore, customer had to pay full money. Registration could not happen because of TA or other issues which we faced last year. Like, for example, Q4, 1,200 homes were handed over. At that time, we did say that we have some more units to catch up. That is what is going to feed us the handovers in Q1 and Q2 until the new projects get completed. That's exactly what is happening. collection in a much -- if you look at last year's project, if you are handing over, there are the overall collection is about 5% of the balance amount. When you launch new projects and when some of these handovers happen in large volume, that's when the collection growth can gain further momentum. If you look at the overall collections for the whole 6 months, and it is not a drop -- basically, I'm looking at INR 725 crores of collection, a 6% growth as compared to your overall handovers is about 1,500 units, 34%. That's -- I understand where you are coming from. And it's fundamentally it's a combination of 3 factors. One, the mix of units that you hand over because Bangalore suffered, majority of the handovers would have been in Kolkata. I can give you the breakup offline or maybe my colleagues can pull out the number. our unit volumes, each unit will have a balance value of INR 4 lakh because ticket size is about INR 45 lakhs. So the number of units and the collections might not necessarily man it's a basket of 3 markets and 3 different ticket sizes. But we remain confident that we will reach this number of whatever the collection number that we have set out for ourselves about INR 1,800 crores. I think we are on track. Two things will help us. One, the new launches that we are doing, the second half is more robust as always in [indiscernible]. Those new sales will bring new collections, and therefore, that will improve. Second is the spending pent-up handovers that we have, about INR 460 crores worth of stocks to be handed over to customers. Those will have anywhere between 5% to 10% depending on the legacy. In the past, we used to leave almost 10% for the handover momentum, handover stage. Off late in the last 2, 3 years, we have tightened it to, say, last 4%, 5% that is pending for handover. So a combination of all this will deliver the cash flow for us.

Sure, sure. And my last question, sir, is on the borrowings increase in this quarter. So I think it would be right to assume that these were lined up to make sure the launches happen on time?

No, these are nothing to do with launches, working capital launches. When we start constructing the new projects, that's when we start borrowing for construction finance. A couple of construction finance would have happened, but they would have drawn much smaller. These were primarily growth capital raised towards locking in new projects. As you know, we have locked 5 projects during the year so far, of which 3 were done in October. So we would have -- as part of those kind of acquisitions, we have to raise capital. And as we have said consistently maintained, we will keep an eye on the debt equity. And the capital -- the capital that is being raised will be more a short-term fuel for accelerated growth. As and when the new projects get completed and the capital -- our share of profit gets unlocked as a cash flow from operations. debt will be repaid. So on a net basis, we will remain under control, and these are therefore raised for growth funding.

The next question comes from the line of Vidhi Shah from CRK.

So can you please explain it to me? You said INR 450 crores is the deferred revenue. And out of the sold part, 6.2 MSF is pending revenue recognition. Is this INR 450 crores a part of this pending revenue recognition?

Yes, yes. This INR 460 crores, I'll take you to 2 slides as a reference point. Slide #6 talks about the projects that got -- that did not get OC during Q2 and have got the OC now. So those are INR 420 crores of worth of stocks, which are to be handed over to customers. If you look at the -- another slide, which is there, which talks about the full year, what are the projects that are scheduled for completion and handover, which is Slide #15. That tells you about INR 1,128 crores worth of stock, which has to be handed over to customer. Substantial part of that is sold. And therefore, that could be the potential revenue recognition during the second half on top of what we have done already. So therefore, we believe the second half will bring in a large part of capital required -- revenue recognition contribution. And therefore, we should be able to cross that INR 1,100 crores, INR 1,200 crores of revenue that we have always talked about. So we are on track because we already clocked nearly 40% of our annual number and the balance will come from the INR 1,128 crores, which includes whatever you have seen in the earlier [indiscernible]. So Slide #15 gives you the complete picture of OC received as we speak now as well as some of them are pending in Q3 and Q4. All put together, for the remainder of the year, that is the maximum revenue recognition that we should be able to do, and that will add up to whatever we have done up to Q2.

Okay. [Technical Difficulty] Slide #28 INR 5,000 crores by FY '28. So out of this revenue recognition that is pending that is INR 1,100 crores, which will be recognized in H2, right?

Might not be possible because if you get the OC during Q4, all of them may not be possible. A substantial part would be recognized.

Okay. So can you give...

Q1 and Q2... Balance will spill over to Q1 and Q2 next year.

Okay. So can you give me a rough estimate by year right, FY '26, '27, '28, how this INR 5,000 crores will flow in as part of your sales?

That's very difficult for me to explain on the last audience group. Maybe you can get in touch with one of us offline, we'll probably walk you through. But obviously, that modeling has been done by you, we can only broadly guide you. And my team members will -- Mr. Pande or Mr. Shrikant will be able to -- you can come through SGA. The will organize the conversation between us and you. Based on what inputs we can give, you should be able to appreciate how this INR 5,000 crores will flow back into the company.

All right. Sir, just one last question. So this INR 1,100 crores, you said INR 1,100 crores will be spread in the next 4 quarters, right, H2 of '26...

INR 1,100 crores will get spread mostly in second half, which is Q2, Q3 and Q4. Some part will spill over to Q1 next year. Q2 next year will be a very small number. So a substantial part of INR 1,100 crores that you see in Slide #16 will be recognized in second half of this financial year alone. Some part will get spill over to Q1 of next year. That's all I mentioned.

The next question comes from the line of Saumil Shah from Paras Investments.

So my question is on this Hindustan Motor land, which we own in Kolkata. So what is the size of that land? And is it a freehold? I mean 100% belongs to us?