Detailed Narrative
Strong Q3 FY25 Bookings and Revenue Growth
Ashiana Housing reported robust performance in Q3 FY25, with area booked increasing by 102.09% YoY to 6.77 lakh square feet. The value of area booked stood at ₹454.16 crores for the quarter. Cumulatively, total pre-sales for the first nine months of FY25 reached ₹1,362.02 crores, marking a significant 45.56% increase over the previous year. This strong booking performance translated into a substantial 135.04% QoQ growth in total revenues, which reached ₹139.93 crores in Q3 FY25.
Healthy Cash Flow and New Project Launches
The company maintained healthy cash flows, with pre-tax operating cash flow rising 54.02% QoQ to ₹120.42 crores in Q3 FY25, and ₹273.53 crores for the nine-month period, driven by improved collections and sales. Ashiana expanded its project portfolio by launching three new senior living projects during the quarter: Ashiana Swarang in Chennai, Ashiana Ekansh (Phase-4) in Jaipur, and Ashiana Amodh (Phase-2) in Pune, indicating continued focus on this specialized segment.
Construction Headwinds and Muted Q4 Margin Outlook
Despite strong bookings, construction activity saw a 13.64% QoQ decline to 5.19 lakh square feet in Q3 FY25, primarily due to the imposition of GRAP related restrictions in Delhi-NCR. This also led to the delay of a high-margin project, Ashiana Advik Phase-1, from Q4 FY25 to Q1 FY26. Consequently, Q4 FY25 margins are expected to be 'very muted' as the company delivers lower-margin projects like Ashiana Anmol Phase-2 and Ashiana Amantran.
Strategic Land Bank Expansion and Market Dynamics
Ashiana is actively expanding its land bank, with an agreement executed for a 20-acre parcel in Jaipur (adding ~20 lakh sq ft) and ongoing talks for another 7-8 lakh sq ft parcel. A significant Bangalore land deal, potentially adding 10-12 lakh sq ft, is progressing but faces regulatory hurdles. Management noted a softening in the Gurgaon market, describing it as 'more normal' compared to the 'extraordinary exuberance' seen 8-9 months prior, with lower closing rates and visits.
FY25 Guidance and FY26 Launch Pipeline
The company reiterated its FY25 pre-sales guidance of ₹2,000 crores, contingent on the velocity of bookings for Ashiana Amarah Phase-5, expected to launch in Q4 FY25. Total revenues for FY25 are projected to be around ₹550-575 crores, with approximately ₹300 crores expected in Q4. For FY26, Ashiana aims to launch three key projects (Aaroham, Jaisingpura, Jamshedpur) along with at least one of the new land deals, though Ashiana Aaroham's launch has been delayed to Q2/Q3 FY26 due to regulatory changes.