Aurum PropTech Limited — Q4 FY25 earnings call

Call held 30 Apr 2025

Management summary

Aurum PropTech reported strong financial performance for FY25, with total income growing 22.3% YoY to INR 285 crores and significant improvements in profitability margins. The Distribution segment, driven by Aurum Analytica and Sell.do, was a key growth driver, achieving 90% YoY income growth and 14% net margin. While the Rental and Capital segments remain loss-making, management outlined clear strategies for their path to profitability and scaling. The company concluded its rights issue, securing capital for future expansion, and is actively leveraging AI for efficiency and product development.

Highlights

  • Total income for FY25 increased by 22.3% YoY to INR 285 crores, demonstrating strong growth.

  • The company's PBT, EBITDA, and adjusted EBITDA margins improved significantly by 17%, 15%, and 12% YoY respectively, reflecting a focus on profitable expansion.

  • The Distribution business segment (Sell.do and Aurum Analytica) achieved 90% YoY income growth in FY25 and maintained a healthy 14% net margin.

  • Aurum Analytica, a core tech product, showed robust momentum with 95% YoY revenue growth in FY25.

  • NestAway, acquired in June 2023, successfully moved from an 85% EBITDA negative margin to breakeven by December 2023.

Concerns

  • The Rental segment reported a loss of INR 5.5 crores in Q4 FY25 and INR 14.5 crores for FY25, while the Capital segment reported losses of INR 1.7 crores in Q4 FY25 and INR 7.4 crores for FY25, indicating these segments are still a drag on overall profitability.

  • Rental business growth was soft in Q4 FY25, with only a 2.4% increase and 2,000 units added, attributed to cyclical supply acquisition and headwinds in the student living sub-segment.

  • There was some confusion during the Q&A regarding the breakdown of total assets, with a significant portion attributed to goodwill and deferred tax assets, and a plan to liquidate INR 34 crores of owned PPE.

Key financials

3 periods

Headline

  • Total Assets
    ₹675 Cr

Q4

  • Revenue from Operations
    ₹70.4 Cr
    YoY +17.7% QoQ +9%
  • Total Income
    ₹78 Cr
    YoY +18.7% QoQ +11.1%
  • Loss Before Tax
    ₹9 Cr

FY25

  • Total Income
    ₹285 Cr
    YoY +22.3%
  • Loss Before Tax
    ₹44.5 Cr

What they filed

Q1 FY27: revenue up 72.3%, net profit up 550.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue64 65 68 65 82 +28%112 +72%124 +82%112 +72%
EBITDA11 12 14 11 21 +91%27 +125%28 +100%29 +164%
Net profit-12 -9 -10 -10 -8 +33%3 +133%16 +260%45 +550%
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.

Segment breakdown

  • Distribution (Q4)
    ₹5.94 Cr Profit
  • Rental (Q4)
    ₹5.5 Cr Loss
  • Capital (Q4)
    ₹1.7 Cr Loss
  • Distribution (FY25)
    ₹11.1 Cr Profit
  • Rental (FY25)
    ₹14.5 Cr Loss
  • Capital (FY25)
    ₹7.4 Cr Loss
  • Segment Revenue Contribution (Q4 & FY25)
    64% Rental30% Distribution6% Capital

Order book

low confidence

Pipeline

deal pipeline tcv

Management discussed increasing client base and supply acquisition as part of their growth strategy, but no specific quantified pipeline value was provided.

Management highlighted growth in client base and supply acquisition across segments, particularly for Aurum Analytica and NestAway, but did not quantify an order book or TCV.

Source: Inferred

Capital allocation

high confidence
  • Liquidity Cash ₹3.9 Cr Net increase in cash and cash equivalent for the year was INR 3.9 crores.
    Kunal Karan: 'Net increase in cash and cash equivalent for the year was INR 3.9 crores.'

Guidance & targets

Revenue

  • Revenue growth Revenue · next 2.5-3 years · High confidence Double revenue from INR 280 crores
    Ashish Deora: 'So, we believe that in the next 2.5 years, we have ample growth capital that should make us double our revenue. So that is effectively what we are internally targeting. We are at INR 280-odd crores of revenue, and we are talking about doubling that over next 3 years.'

    — Ashish Deora

  • Consolidated Revenue Revenue · by 2030 · High confidence INR 1,100 crores
    Onkar Shetye: 'Post that we are looking to incrementally build profitability as we reach INR 1,100 crores of revenue by 2030.'

    — Onkar Shetye

  • Controlled growth rate Revenue · ongoing · High confidence 30%
    Onkar Shetye: 'So I think we would like to go on a controlled growth model, which is going at a 30-odd percent of growth rate.'

    — Onkar Shetye

Revenue & Profitability

  • Consolidated Revenue & PBT Breakeven Revenue & Profitability · FY27-28 · High confidence INR 750-800 crores at PBT breakeven
    Onkar Shetye: 'Sure so I'll give you a North Star for us at the consolidated level for Aurum PropTech in '27, '28, is to reach a revenue range of INR 750 crores to INR 800-odd crores and be at a breakeven.'

    — Onkar Shetye

Rental Units Under Management

  • Incremental addition of rental units Rental Units Under Management · over the year · High confidence 15-20%
    Onkar Shetye: 'So we will keep on adding around 15% to 20% incrementally, and this will play out over the year in terms of rental units under management.'

    — Onkar Shetye

HelloWorld Occupancy

  • Occupancy rate HelloWorld Occupancy · FY26 · High confidence 80%
    Onkar Shetye: 'In FY '26, HelloWorld aims to achieve 80% occupancy with operational excellence, competitive offerings, and superior service.'

    — Onkar Shetye

Sell.do Revenue

  • Revenue growth Sell.do Revenue · FY26 · High confidence 30%
    Onkar Shetye: 'Sell.do aims at revenue growth of 30% year-on-year in FY '26.'

    — Onkar Shetye

Aurum Analytica Client Base

  • Client base increase Aurum Analytica Client Base · FY26 · High confidence 60%
    Onkar Shetye: 'Analytica aims at reduction of customer acquisition cost by partnering with data management platforms and increasing its API directory base. We aim to increase client base by 60% and take it to 350 plus...'

    — Onkar Shetye

SM-REIT

  • Revenue contribution SM-REIT · FY26 · Medium confidence Adding onto revenues
    Hiren Ladva: 'So this year should be adding onto revenues from the SM-REIT space as far as FY '26.'

    — Hiren Ladva

Segment Revenue Mix

  • Rental segment contribution Segment Revenue Mix · next couple of years · High confidence 55-60%
    Ashish Deora: 'around 55% to 60% is generally the Rental business, and you'll see that continue to do so.'

    — Ashish Deora

  • Distribution segment contribution Segment Revenue Mix · next couple of years · High confidence 25-35%
    Ashish Deora: 'Probably 25% to 35% will be the Distribution business...'

    — Ashish Deora

  • Capital segment contribution Segment Revenue Mix · next couple of years · High confidence 10-15%
    Ashish Deora: 'and 10% to 15% will be Capital business.'

    — Ashish Deora

What to watch in Q1 FY26

Rental units under management growth

next quarter
Current 37,500 units
Target 15-20% incremental addition

Why it matters

This metric indicates the scaling of the Rental business, which is currently loss-making but a key focus for future growth.

Onkar Shetye: 'So we will keep on adding around 15% to 20% incrementally, and this will play out over the year in terms of rental units under management.'

Risks & concerns

  • Slowing residential real estate market

    medium

    Management acknowledged a slowdown in some micro markets but highlighted that their tech products (Analytica, Sell.do) are designed to help developers during such periods by reducing customer acquisition costs.

    Analyst acknowledged

  • Loss-making Rental and Capital segments

    medium

    Both Rental and Capital segments are currently operating at a loss, requiring continued investment in teams, markets, and brand to achieve scale and eventual profitability, which may delay overall company profitability.

    Analyst acknowledged

  • Regulatory approvals for SM-REITs

    medium

    The Capital business segment, particularly SM-REITs, is contingent on SEBI regulatory approvals, which are still under consultation, impacting the timeline for unlocking significant AUM potential.

    Management acknowledged

Q&A highlights

5 direct
Rationale for INR 600 crores fundraising and its relation to market cap Partial
Ashish Deora: 'So as far as the rights issue is concerned, it was always designed and planned in a manner that we will raise capital over three years, and we have done that... Having said that, the INR 600 crores is an enabling resolution... It will be approximately half 50% of the market cap. Having said that, as of now, this is an enabling resolution. And we'll see whether we need to use this over time.

Analyst questioned the large fundraising amount relative to market cap, and management clarified it's an 'enabling resolution' and approximately 50% of market cap, not over 100%.

Asked by Vinay Gupta

Path to profitability for Rental and Capital segments Direct
Onkar Shetye: 'In case of Rental, first it is the TAM here is so large of around 2 lakh rental units across the country... we are only at 37,500 rental units under management. So, we would definitely like to increase this fast and take it to our first pit stop of 50,000 rental units... This will require us to sort of spend on teams, spend on new markets... and will delay profitability for certain quarters. But this is essential because getting this market share in control first is our first goal.

Analyst pressed on when loss-making segments would turn profitable, and management explained the strategic need for market share acquisition first, even if it delays profitability.

Asked by Darshil Jhaveri

Impact of AI on efficiency and product development Direct
Hiren Ladva: 'See, as far as our deployment of Al is concerned, we actually began that journey 3 or 4 quarters back. And some of the results that you see in terms of our efficiency and profitability. I would also credit our efforts towards tech development... enabled us to reach much faster there in that space, right? Specifically, if you look at our core products, which is Analytica as well as Sell.do. I think they are far more closer to AI than rest of our services...

Management provided specific examples of how AI is already integrated into their operations and products, contributing to efficiency and faster market reach, which is a key theme in the IT sector.

Asked by Amit Kumar

Rental business growth strategy and targets for the next 4 quarters Direct
Onkar Shetye: 'So we will keep on adding around 15% to 20% incrementally, and this will play out over the year in terms of rental units under management... In case of HelloWorld, we are looking at first hitting an 80% occupancy in the existing base of supply.

Analyst sought specific details on the rental segment's expansion, and management provided clear incremental targets and strategic focus areas for both NestAway and HelloWorld.

Asked by Pranav Mashruwala

Liquidation of owned PPE assets Direct
Ashish Deora: 'As far as the property plant and equipment is concerned, that is INR 34 crores, the balance sheet... it's not our business to be in the renting of these assets. These are the assets that we acquired from the earlier management, which was Majesco earlier... we would likely liquidate these assets, sell these assets, bring that capital in our balance sheet which should create some value in our existing business.

Management revealed a plan to liquidate non-core assets (INR 34 crores of PPE) to unlock capital, indicating a focus on core business and capital efficiency.

Asked by Mayuresh Mane

Breakdown of total assets and depreciation Partial
Kunal Karan: 'So, you are saying the other assets are like goodwill on consideration that has come around INR 175 crores and then deferred tax asset and income tax assets like those kinds of assets are there. We have not been able to decode your INR 450 crores number.

There was some confusion and difficulty in fully reconciling the total asset breakdown during the Q&A, with a significant portion remaining unclear after accounting for PPE, ROU, goodwill, and intangible assets.

Asked by Mayuresh Mane

Engagement with large institutional investors for co-living expansion Direct
Onkar Shetye: 'If I may answer your question, there is no active conversation with institutional capital allocators like Brookfield or Blackstone or CapitaLand, where our parent real estate organization already has a large relationship. But they have visibility on our business, on our operations. And they are closely looking at our operation as to how we are reaching the first milestone of 50,000 rental units under management and then subsequently scaling that up.

Analyst probed potential partnerships with large funds, and management clarified no active talks but acknowledged their visibility and interest in the company's scaling milestones.

Asked by Faisal Hawa

3 min read 6 chapters

Detailed narrative

Financial Performance and Profitability Improvement

Aurum PropTech reported a total income of INR 78 crores for Q4 FY25, an 18.7% increase year-on-year, and INR 285 crores for the full FY25, up 22.3% YoY. The company demonstrated significant profitability improvements, with PBT, EBITDA, and adjusted EBITDA margins increasing by 17%, 15%, and 12% respectively year-on-year. Despite these gains, the company recorded a loss before tax of INR 9 crores in Q4 FY25 and INR 44.5 crores for FY25, primarily due to losses in the Rental and Capital segments.

Rental Business Strategy and Performance

The Rental business, encompassing student living, co-living, and family rentals, manages 37,500 units across 15 cities with a 77% blended occupancy. NestAway, acquired in June 2023, achieved breakeven by December 2023 from an 85% EBITDA negative margin. For FY26, NestAway plans to focus on supply acquisition in high-demand areas and target multi-property owners, NRIs, and NROs. HelloWorld aims for 80% occupancy in FY26 and will expand operations to new micro-markets like Bhubaneshwar, while also growing its short-stay vertical, which saw 120% growth last year.

Distribution Business Growth and Outlook

The Distribution business segment, including Sell.do and Aurum Analytica, was a strong performer, delivering 90% year-on-year income growth in FY25 with a healthy 14% net margin. Aurum Analytica, serving over 250 micro markets, recorded 95% YoY revenue growth. For FY26, Sell.do targets 30% YoY revenue growth, while Aurum Analytica aims to increase its client base by 60% to over 350 clients. The segment plans to expand its network in North India and roll out low-touch products in Tier 2 cities.

Capital Business and SM-REITs

The Capital business segment is in consultation with SEBI for its SM-REIT application, which is anticipated to unlock over INR 50,000 crores of AUM-eligible supply. Management expects this segment to start contributing to revenues in FY26. The company believes the fractional ownership/SM-REIT market has a very large total addressable market (TAM) across Tier 2 and Tier 3 cities, and sees it as a potentially very large business in the future, comparable to or even exceeding the Rental segment in scale.

AI Adoption and Operational Efficiency

Aurum PropTech began deploying AI 3-4 quarters ago, which has contributed to improved efficiency and profitability. AI tools are used in sales, business development, and product development across HelloWorld, NestAway, Analytica, and Sell.do. The core tech products, Analytica and Sell.do, are particularly AI-driven, leveraging data science and machine learning for features like AI-assisted report chats and NLP-based report generation, enabling faster market reach and enhanced communication.

Capital Allocation and Fundraising

The company concluded its rights issue in April 2025, which was planned over three years and provides ample growth capital to double revenues in the next 30 months. An enabling resolution for INR 600 crores of fundraising was discussed, representing approximately 50% of the current market cap, to accelerate growth if a like-minded strategic institution partners. Additionally, the company plans to liquidate INR 34 crores of owned property, plant, and equipment (PPE) acquired from Majesco, as renting these assets is not part of their core business, to bring capital back into the balance sheet.

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