Ajmera Realty & Infra India Limited — Q1 FY26 earnings call

Call held 24 Jul 2025

Management summary

Ajmera Realty reported a strong Q1 FY26, achieving its highest quarterly revenue in five years at ₹260 crores, driven by robust collections and project execution. Despite sales being partially impacted by regulatory approval delays, the company demonstrated strong financial discipline, reducing net debt by 6% and improving its debt-equity ratio to 0.5x. Management expressed confidence in achieving full-year targets, with a significant launch pipeline planned.

Highlights

  • Achieved highest quarterly revenue in 5 years at ₹260 crores, marking a 32% Y-o-Y increase.

  • EBITDA grew 19% Y-o-Y to ₹79 crores, maintaining a healthy 31% margin.

  • Net profit increased 20% Y-o-Y to ₹39 crores, with a 15% PAT margin.

  • Collections surged 42% Y-o-Y to ₹234 crores, reflecting strong cash flow realization.

  • Net debt reduced by 6% to ₹619 crores, and debt-equity ratio improved to 0.5x, the lowest in recent history.

Concerns

  • Sales of ₹108 crores were partially impacted by delays in approvals for new launches and limited inventory availability.

  • Regulatory approval delays for key projects led to postponements of some planned launches.

Key financials

  1. Revenue ₹260 Cr +32%YoY
  2. EBITDA ₹79 Cr +19%YoY
  3. EBITDA Margin 31%
  4. Net Profit ₹39 Cr +20%YoY
  5. PAT Margin 15%
  6. Collections ₹234 Cr +42%YoY
  7. Sales ₹108 Cr
  8. Net Debt ₹619 Cr
  9. Debt-Equity Ratio 0.5×
  10. Cost of Debt 11.8%

What they filed

Q1 FY27: revenue up 22.9%, net profit up 15.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue200 193 151 258 219 +10%182 −6%431 +185%317 +23%
EBITDA60 63 43 78 58 −3%55 −13%107 +149%91 +17%
Net profit36 33 24 39 31 −14%28 −15%59 +146%45 +15%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹8,100 Cr

as of 2025-06-30 quantified

Inflow this quarter

₹108 Cr

Pipeline

other

Projects in launch pipeline

Sales were partially impacted by delays in approvals for new launches and limited inventory, but the company has strong revenue visibility and a significant launch pipeline.

Source: Prepared remarks

Capital allocation

high confidence
  • Debt Net ₹619 Cr Cost 11.8%
    • Repayment Cash flow utilized for deleveraging from INR 662 crores to INR 619 crores. ₹43 Cr
    The company continued to reinforce its financial position in Q1 FY '26, reducing overall debt by 6% to INR 619 crores from INR 662 crores as of 31st March 2025. The debt equity ratio improved to 0.5x to the net worth, the lowest in our recent history, providing substantial headroom to capitalize on our strong launch pipeline and fuel future growth. Moreover, a 45 basis point reduction in the weighted average cost of debt to 11.75% per annum highlights our enhanced credit profile and disciplined financial management.
  • Liquidity Liquidity disclosed Net cash flow pre-tax post debt from OC received and ongoing projects is estimated to be around INR 666 crores.
    The estimated net cash flow pre-tax post debt from our OC received and ongoing projects is estimated to be around INR 666 crores.

Guidance & targets

Launch Pipeline

  • Value of projects to be launched Launch Pipeline · coming financial year/months · High confidence ₹6,500 crores
    But we are very optimistic that in the coming financial year or the coming few months, we shall be launching projects worth INR 6,500 crores.

    — Dhaval Ajmera

Homes Delivery

  • Number of homes to be delivered Homes Delivery · this financial year · High confidence 1,000 homes
    we are targeting to deliver about 1,000 homes in this financial year, probably towards the end of the financial year.

    — Dhaval Ajmera

Debt

  • Debt-equity ratio Debt · year-end · Medium confidence around 0.85
    So we should be in that range only by the year-end.

    — Nitin Bavisi

Sales

  • Annual sales target Sales · current year · High confidence ₹1,600 crores
    So we are absolutely very confident about achieving our targets. The numbers will definitely match.

    — Dhaval Ajmera

Project Launch

  • Wadala project launch Project Launch · Q2 FY26 · High confidence this quarter
    So but we'll definitely launch it in this quarter.

    — Dhaval Ajmera

  • Bandra project launch Project Launch · Q2 FY26 · High confidence August end/September
    So I think by August end, September, even that should launch.

    — Dhaval Ajmera

Development Potential

  • Wadala project GDV Development Potential · High confidence ₹9,000 crores
    where we are looking at about 25 lakh square feet of development coming with a top line of estimated to about INR 9,000-odd crores.

    — Dhaval Ajmera

  • Kanjurmarg project GDV Development Potential · High confidence ₹29,000-30,000 crores
    And Kanjurmarg is our another land where we would be very soon starting the development potential, which is about 8.2 million square feet and looking at about INR 29,000 crores, INR 30,000 crores of GDVs coming from there.

    — Dhaval Ajmera

Profitability

  • EBITDA margin for new projects Profitability · High confidence about 30%
    So typically, the entire GDV is about INR 6,500 crores, and we will continue to operate in the EBITDA margin of about 30%.

    — Nitin Bavisi

Project Cost

  • Total cost for new projects (GDV ₹6,500 cr) Project Cost · High confidence ₹4,200-4,400 crores
    So about 70%, so about INR 4,200 crores to INR 4,400 crores is what the entire set of costs, including the premium and the hard cost and as well as the soft cost.

    — Nitin Bavisi

Approval Cost

  • Approval cost per sq ft in Mumbai Approval Cost · High confidence ₹5,000-7,000
    Typically, in a city of Mumbai, on an average, I would say, on the carpet area, what we have, it will be about INR 5,000-odd a square feet plus/minus. And obviously, areas like Bandra, South Mumbai, which will be a little more. But INR 5,000 to INR 7,000 is where I would say will be cost of approvals on normally.

    — Dhaval Ajmera

What to watch in Q2 FY26

Wadala project launch

next quarter (Q2 FY26)
Current Awaiting CRZ minutes and BMC/RERA approvals
Target Project launched

Why it matters

A key project launch expected this quarter, crucial for sales and revenue generation.

So but we'll definitely launch it in this quarter.

Risks & concerns

  • Regulatory approval delays for new project launches

    medium

    Delays in securing approvals impacted Q1 sales and postponed some planned launches, though management is confident for the full year.

    Management acknowledged

  • Unfavorable affordable housing policies in Mumbai

    low

    Affordable housing policies are not favorable to customers and developers in Mumbai, leading the company to focus on mid-income and luxury segments.

    Management acknowledged

Q&A highlights

6 direct
Indian residential real estate market trends and project mix/pricing strategy Direct
So look, the market where we are operating, that is Mumbai and Bangalore has been thriving over the last 5, 7 years. Urbanization and redevelopment and new projects in these cities have been significantly moving faster.

Clarifies management's understanding of market dynamics and their focus on mid-income and luxury segments in Mumbai and Bangalore, noting challenges in affordable housing policies.

Asked by Vishal Dudhwala

Deployment of free cash flow from debt reduction and early OC Direct
So our endeavor always been to remain very prudent on the debt side and which is very visible basis the INR 234 crores of the gross sales collection, we deployed all around kind of a thing, be it a production cost like the construction approval and as well the other overheads and then after investing on to the new acquisition and about INR 43 crores, the cash flow has been utilized for the deleveraging and which has come from INR 662 crores to INR 619 crores as we speak.

Details the company's capital allocation strategy, showing a balanced approach between project investment, operational costs, new acquisitions, and debt reduction.

Asked by Vishal Dudhwala

Wadala project CRZ approval and launch timeline Direct
But yes, you're right. That is where we had the hearing. It has positively gone well. We are awaiting the minutes of the meeting to come, and then we will start the further submissions in the BMC to get the approvals and then move it to RERA soon... we'll definitely launch it in this quarter.

Provides a clear update and timeline for a significant upcoming project launch, indicating progress on regulatory hurdles.

Asked by Dixit Doshi

Kanjurmarg Supreme Court update Partial
Well, our wait is as good as everyone's wait, but we are hopeful that the next date of hearing is on 28th, that is on Monday. That's what it's been shown online. And we are hopeful to await to listen to the orders by the honorable court at that point in time.

Highlights the ongoing legal process for a very large potential development, with a near-term date for a possible update.

Asked by Dixit Doshi

Bandra project launch timeline Direct
Yes, we are on track. We have got the recent necessary approvals. And now I think in the next few weeks, we should be also, we've got the IOD. Now we are applying for the relevant CC and taking the approval of RERA. So I think by August end, September, even that should launch.

Confirms another key project is on track for launch in the near future, providing specific target months.

Asked by Dixit Doshi

Business Development (BD) pipeline and future announcements Direct
So we are in active negotiations with 3, 4 large projects in different suburbs of Mumbai and in Bangalore. While some things will materialize soon, I think we should be able to have some announcements coming in probably by the end of next quarter and then the subsequent quarter.

Indicates active efforts to expand the project portfolio, signaling future growth drivers and potential announcements.

Asked by Dixit Doshi

Confidence in achieving annual sales target despite Q1 delays Direct
So we are absolutely very confident about achieving our targets. The numbers will definitely match. Definitely, there has been a delay because of the regulatory approvals. But having said that, we are right on track with the kind of launches what we are seeing and the momentum which we are already seeing within our sites in terms of the sales and their requirements coming in.

Reassures investors about the full-year sales outlook, emphasizing confidence in upcoming launches and market momentum to compensate for Q1 delays.

Asked by Amit Shah

Plans for Wadala demerged land and potential partnership Partial
So we are honestly talking to a few. We are also exploring some options of doing some different kind of master planning to look at some kind of branded residences or something, which is all options which are on the table right now. So whichever adds value to the entire community and to the project at large is what we are looking at. Very soon, we will be about to close that and bring in an announcement in that land as well. But right now, it's under planning and master planning phase.

Reveals strategic planning for a significant land parcel, including potential partnerships and premium development concepts, indicating future value creation.

Asked by Dixit Doshi

2 min read 6 chapters

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.

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