Detailed Narrative
Q1 FY26 Financial Performance Overview
Ajmera Realty reported a robust Q1 FY26, achieving its highest quarterly revenue in five years at ₹260 crores, marking a 32% year-on-year increase. EBITDA grew 19% year-on-year to ₹79 crores, maintaining a healthy 31% margin. Net profit stood at ₹39 crores, up 20% year-on-year, resulting in a 15% PAT margin. Collections were strong, rising 42% year-on-year to ₹234 crores, reflecting healthy cash flow realization from ongoing projects.
Operational Highlights and Project Progress
The company's portfolio demonstrated strong performance, with several projects advancing well. Ajmera Manhattan achieved 89% inventory sold, with RCC work progressing to the 30th floor. Ajmera Greenfinity has 75% inventory sold and 17 floors completed out of 21. Ajmera Eden is 95% sold with RCC structure completed. Ajmera Prive in Juhu received its occupation certificate a year in advance. In Bangalore, Lugano and Florenza are 97% sold, Ajmera Iris is two-thirds sold, and Ajmera Marina has 68% inventory sold.
Strategic Launch Pipeline and Future Growth
Ajmera Realty plans to launch projects worth ₹6,500 crores in the coming financial year, targeting the delivery of 1,000 homes. Key upcoming projects include Wadala (residential and commercial, with a potential GDV of ₹9,000 crores for 25 lakh sq ft) and Kanjurmarg (8.2 million sq ft with a GDV of ₹29,000-30,000 crores). The company is also in active negotiations for 3-4 large projects in Mumbai and Bangalore, with announcements expected by the end of the next quarter.
Market Dynamics and Sector Outlook
Management noted sustained growth momentum in the real estate sector, driven by end-user demand, rising prices, and stable collections. They highlighted the positive impact of monetary policy rate cuts and liquidity measures. In Mumbai and Bangalore, the mid-income and premium residential segments are thriving, while affordable housing policies are less favorable. The company's strategy involves analyzing micro-markets to tailor project designs and pricing.
Financial Health and Capital Management
The company reinforced its financial position by reducing overall debt by 6% to ₹619 crores from ₹662 crores as of March 31, 2025. The debt-equity ratio improved to 0.5x, the lowest in recent history, and the weighted average cost of debt decreased to 11.75%. Total revenue visibility stands at ₹8,100 crores, with an estimated net cash flow pre-tax post debt of ₹666 crores from OC received and ongoing projects. The company aims to maintain a debt-equity ratio around 0.85 by year-end.
Regulatory Environment and Project Approvals
Regulatory approval delays impacted Q1 sales and postponed some planned launches. However, management expressed confidence in securing approvals for key projects like Wadala and Bandra, targeting launches in Q2 FY26. The Wadala project's CRZ approval hearing was positive, and the company is awaiting minutes before proceeding with BMC and RERA approvals. The Kanjurmarg project's Supreme Court hearing is scheduled for July 28th, which could provide crucial clarity for its development.