Aditya Birla Real Estate (formerly Century Textiles) reported a blockbuster Q3 FY26, driven by the massive success of the Birla Pravaah launch in Gurugram. While the company faced regulatory delays for its flagship Niyaara Tower C project in Worli, management remains confident in meeting its ₹8,000 crore annual sales target through a robust pipeline of other launches. The company is also aggressively pursuing a ₹15,000 crore annual sales target by FY28 and is in the final stages of exiting its legacy paper business.
vs Q4 FY26
Notable Quotes from the Call
Most Confident Moment
Management's firm commitment to the ₹8,000 crore FY26 target despite the delay of their largest project phase (Niyaara Tower C).
Least Confident Moment
Admission of being technically disqualified from the BMC land tender due to lack of a long track record of completed projects.
| Metric | Value | YoY |
|---|---|---|
| Presales | ₹2.5K Cr | +276.0% YoY |
| Collections | ₹1.3K Cr | +157.0% YoY |
| Net Debt | ₹3.5K Cr | — |
| Leasing Income | ₹144 Cr | -11.0% YoY |
| 9M Presales | ₹3.8K Cr | +64.0% YoY |
Segment Breakdown
| Metric | Latest | Trend |
|---|---|---|
| EBITDA Margin | 1.9% | |
| Collections(crores) | 1290 |
| Category | Target | Priority |
|---|---|---|
| Revenue | FY26 Sales Guidance→₹8,000 crores | High |
| Revenue | Annual Sales Target FY28→₹15,000 crores | High |
| Revenue | Gross Rental Income→₹1,000 crores | Medium |
| Other | Business Development (BD) GDV→₹10,000-15,000 crores | Medium |
| Margin | Project EBITDA Margins→25-30% | High |
| Severity | Risk |
|---|---|
medium | Regulatory and Approval Delays Niyaara Tower C delayed due to Supreme Court order and standoff with BMC; awaiting RERA for Thane and Boisar projects. Management |
low | Supply Pressure in Mumbai Market Analyst raised concerns about simultaneous project launches in Mumbai post-EC clearance; management believes demand remains micro-market specific. Analyst |
medium | Technical Qualification for Tenders Company does not currently meet technical criteria for BMC land tenders due to high 'completed project' requirements. Both |
Areas of Evasion(1)
Aditya Birla Real Estate achieved its best-ever quarterly presales of ₹2,536 crores, a staggering 276% YoY growth. This was primarily anchored by the Birla Pravaah project in Gurugram, which generated ₹1,850 crores in just 24 hours. Collections also showed strong momentum, rising 157% YoY to ₹1,290 crores, ensuring the business operates with negative working capital in most projects.
The company is diversifying its portfolio with successful entries into new micro-markets like Manjri, Pune (Birla Evam), where 35% of inventory was sold within the first month. Management is queuing up several major launches for Q4 FY26, including the Thane Hindalco land project and new phases in Boisar and Bangalore (Evara). These launches are critical to offsetting the delay in the Niyaara Tower C project.
The flagship Niyaara Tower C launch in Worli has been pushed to H1 FY27 due to a Supreme Court order that required the company to 'extricate' specific land parcels from the overall layout approval system. While this was an unanticipated standoff with the BMC, management has now secured layout approvals and is awaiting MoEF and RERA clearances. Similar RERA dependencies exist for upcoming projects in Thane and Boisar, expected in early February.
The company aims to scale its gross rental income from the current ₹144 crores to ₹1,000 crores over the next 4-5 years. To achieve this, they are progressing with a 1 million square foot commercial development at the Niyaara site and are actively seeking a strategic partner for capital-intensive commercial projects. Current commercial assets remain 100% occupied, though reported leasing income dipped slightly due to internal space consolidation.
Net debt was reduced to ₹3,500 crores, and the company maintains significant 'dry powder' for future acquisitions. The impending sale of the legacy paper business is expected to be a major cash flow event, with minimal tax leakage due to available MAT credits. Management emphasized that most projects are self-funding, allowing them to avoid construction loans and maintain a healthy 0.8x debt-to-equity ratio.