ABRELNSEQ1FY26July 24, 2025

Aditya Birla Real Estate Limited

8,811words

162turns

17analyst exchanges

5executives

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Management on call

R. K. Dalmia

MANAGING DIRECTOR, ADITYA BIRLA REAL ESTATE

K.T. Jithendran

MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, BIRLA ESTATES

Snehal Shah

CHIEF FINANCIAL OFFICER, ADITYA BIRLA REAL ESTATE

Keyur Shah

CHIEF FINANCIAL OFFICER, BIRLA ESTATES

Biplab Debbarma

ANTIQUE STOCK BROKING LIMITED

Key numbers — 40 extracted

8.3%

n, and brand trust. The market has seen good traction, with absorption of exceeding new supply by 8.3% in Financial '25. The luxury segment continued to outperform, fueled by a descending do

50%

opolitan Region, MMR, Pune, Bengaluru, and NCR continue to remain the key market, contributing to 50% of units sold in Financial Year 2025. As this was a quarter without any new project launches for

Rs. 423 crore

construction progress across all sides. Consequently, our booking value for the quarter stood at Rs. 423 crores, which grew by 61% year-on-year. The area sold for the quarter grew by 327% year-on-year to 0.3

61%

all sides. Consequently, our booking value for the quarter stood at Rs. 423 crores, which grew by 61% year-on-year. The area sold for the quarter grew by 327% year-on-year to 0.3 million square feet.

327%

er stood at Rs. 423 crores, which grew by 61% year-on-year. The area sold for the quarter grew by 327% year-on-year to 0.3 million square feet. Our collection for the quarter grew by 12% year-on-year

0.3 million

rores, which grew by 61% year-on-year. The area sold for the quarter grew by 327% year-on-year to 0.3 million square feet. Our collection for the quarter grew by 12% year-on-year at Rs 545 crores. This perfo

12%

rter grew by 327% year-on-year to 0.3 million square feet. Our collection for the quarter grew by 12% year-on-year at Rs 545 crores. This performance reflects the sustained interest in our marquee pr

Rs 545 crore

ar-on-year to 0.3 million square feet. Our collection for the quarter grew by 12% year-on-year at Rs 545 crores. This performance reflects the sustained interest in our marquee projects and underlying strengt

50 million

e most notable developments during the quarter for our Company was that Birla Estate concluded a $50 million or around Rs. 420 crores investment from International Finance Corporation, IFC, a member of Worl

Rs. 420 crore

pments during the quarter for our Company was that Birla Estate concluded a $50 million or around Rs. 420 crores investment from International Finance Corporation, IFC, a member of World Bank Group. The invest

3.13 million

of World Bank Group. The investment has been made in Manjri project in Pune, having approximately 3.13 million square feet saleable area, and in the Thane project with approximately 6.43 million square feet s

6.43 million

approximately 3.13 million square feet saleable area, and in the Thane project with approximately 6.43 million square feet saleable area. This partnership shows a strong vote of confidence from one of the lar

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Guidance — 20 items

R. K. Dalmia

opening

“As this was a quarter without any new project launches for the Company, our efforts were concentrated on driving sales momentum in our existing portfolio and ensuring strong construction progress across all sides.”

R. K. Dalmia

opening

“The investment has been made in Manjri project in Pune, having approximately 3.13 million square feet saleable area, and in the Thane project with approximately 6.43 million square feet saleable area.”

R. K. Dalmia

opening

“This included much-anticipated projects such as the next Phase of our marketing Birla Niyaara Project Worli new Phases at Birla Navya in Gurgaon, and our new developments in high-growth corridors like Thane and Boisar in MMR.”

Karan Khanna

“If you can also talk a bit about the Niyaara project, where we have seen Rs 360 crores of sales in the 4th Quarter and this quarter that is down to about Rs 60 crores?”

K.T. Jithendran

“But I think it will be too premature to judge the demand of the market unless there is a clear launch which has happened.”

K.T. Jithendran

“We will be planning all these launches as per our planned calendar, it was stated to be in Q3, Q4.”

K.T. Jithendran

“So, either it will be in the last quarter of Q2, but most probably in the first Phase of Q3.”

Karan Khanna

“One, do you still expect to realize about Rs.”

Keyur Shah

“And after reducing all the costs pertaining to the completion of the entire project, we estimate Rs.”

Karan Khanna

“15,000 crores BD target that you had mentioned earlier?”

Risks & concerns — 12 flagged

My first question to you, KT, if you can talk a bit about the luxury housing market in Mumbai, particularly because we have seen some signs of slowdown in the MMR luxury market.

— Karan Khanna

Only that we are being careful that we add the right projects and we take the right risk and maintain financial discipline.

— K.T. Jithendran

And very high in terms of feasibility of projects, checking in all the right risk requirements, etc.

— K.T. Jithendran

And I think it's a very good strategy that where we are not doing JDAs, and you think there is too much concentration of capital, and we could perhaps divest it and do a proper risk management strategy for Birla Estate going forward, maintain stronger financial discipline, learn a lot from how to do large-scale business and focus on execution, etc., safety, faster construction technologies.

— K.T. Jithendran

Yes, which is why I was surprised to see a decline here, I thought it should have been a pretty stable number.

— Puneet Gulati

So, I think it is a very effective financial risk management strategy that we get a strategic partner thorough sharing the risk.

— K.T. Jithendran

But I think it is a good long-term strategy to have global partners who will also help us give a second opinion on the kind of acquisitions we are making, capital always available, and that too people who understand and willing to take the risk.

— K.T. Jithendran

There are always opportunities where we need capital, and also, it's risk management.

— K.T. Jithendran

And luxury segment, it looks like in terms of pre-sales is under pressure.

— Sujit Jain

So, in this scenario, how do you ensure that rather than reacting to a potential slowdown in sales, proactively you kind of get your pre-sales going?

— Sujit Jain

If you get carried away and do overpricing, yes, then there is a risk of poor response.

— K.T. Jithendran

So, could you clarify if there is any risk or uncertainty around the deal not closing as planned?

— Biplab Debbarma

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Q&A — 17 exchanges

Thanks for the opportunity and good morning to the entire team. My first question to you, KT, if you can talk a bit about the luxury housing market in Mumbai, particularly because we have seen some signs of slowdown in the MMR luxury market. If you can also talk a bit about the Niyaara project, where we have seen Rs 360 crores of sales in the 4th Quarter and this quarter that is down to about Rs 60 crores? How are you thinking about sales velocity for the balance Rs. 2,300 crores of inventory that you have in Phase-1 and 2? And more importantly, how should one think about the launch of Niyaara

K.T. Jithendran

Yes, hi, good morning. Yes, so, Worli as a luxury market continues to be very strong, we are very bullish on this market. It's true that there have been more launches, more projects have got launched here. But I think it will be too premature to judge the demand of the market unless there is a clear launch which has happened. As far as we are concerned, we had a strong quarter last year. And this quarter, we had a few cancellations. Otherwise, I think still there was not more than five or six units which were sold over the quarter. Actually, Q1 is a little early for the momentum to pick up. Bu

Hi, sir.

K.T. Jithendran

Hi, Akash. How are you? Yes, I am great, sir. Thank you for the opportunity. Sir, my first question is with respect to the Sector 150 Noida project and the IHP JDA project. What is the status of those two projects? As well as the Thane approvals, where are we for these three projects? So, as far as Noida 150 is concerned, we have not made much progress, and I am not very hopeful. We are not really counting on that. What was your second question? The status of the IHP JDA project, Mantra Road, and as well as the Thane approvals with respect to the Thane project. The IHP is also going slow, unfo

Yes, thanks for the opportunity. My first question is regarding the Niyaara only. So, I think net, net you said that we had some cancellation, but so net, net we are maybe around 99 or 100 flat. So, obviously, the market looks slightly slow, but you are much more confident. So, do you have any number in mind that let's say 120, 125, 130, this much X number of flat will be sold and then only we will plan for the third phase?

Management

Yes. So, my question was that the market looks slow in the Worli, but you are quite confident of launch. So, my question is that, do you have any number in mind where let's say 120, 130, X number of units will be sold in Tower-2, then only we will plan for Tower-3?

K.T. Jithendran

We have already achieved that number, Dixit. I mean, we were planning about two-thirds and then we shall move ahead, so we are around that. So, we are now fully gearing up for launching the new phase. And my second question is, in earlier calls you have mentioned that the cost is around Rs. 25,000 in Worli. So, is it also for Tower-1 also? All inclusive, it's an average cost for the entire over the next five, seven years. That's what it is. It includes all towers. It's an average cost including all towers. Okay fine, that's it. Thank you.

Yes. Hi. Thank you for the opportunity. Sir, my question is on a launch pipeline, basically. So, if you look at for the FY '26, we have a very strong pipeline of Rs. 14,000 crores, which is going to be launched over the next six quarters. But if you look at for the future, we have a strong GDP of Rs. 44,000 crores going ahead. But a larger part of this is concentrated in Worli and Thane around Rs. 25,000 crores, which will be launched over the phased manner in multiple years. And considering that the new projects which we will sign in the next couple of quarters, that will take around one more

K.T. Jithendran

Yes. So, to keep the momentum of growth going, we will of course keep looking for addition of new projects, but not the cost of financial discipline and returns and the brand equity, etc. So, we realize that to keep the momentum growing we need to add new projects in all locations. And we are mindful of that and we are working towards that. So, basically, we are confident that we can launch similar kind of numbers in FY '27? That's all. Yes, we need to add projects. We are working towards that. Only that we are being careful that we add the right projects and we take the right risk and maintai

Yes, thank you so much, sir. My first question is, if you can elaborate a bit more on what value is Mitsubishi bringing to the JV? And also, if there is a plan to do similar sort of setup in Worli as well because you guys will have land bank which is adjacent to each other. Any thoughts there?

K.T. Jithendran

Yes. So, Mitsubishi, of course, as I mentioned, the value is immense. We told you, when they came into the project after we have worked on this Sarjapur land quite a bit, we have worked on the risks, and they have given us an adequate and quite profitable premium there. And also, we are getting a 6% DM fee. And over and above that promote, which is also very lucrative. More important than just the financial part, we are more interested in the strategic partnership that we are looking at them and the kind of the knowledge and experience and know-how they bring into real estate. They were almost

Yes, thanks for the opportunity. So, most of our launches will be coming in Q3 or later part of Q4, we have unsold inventory of close to Rs. 6,000 crores, so what kind of sales booking we are looking at in Q2 or overall FY '26?

K.T. Jithendran

So, I hesitate to kind of give any forward-looking guidance on this part. We will do our best and all markets are looking stable. But as you know, Dhananjay, the bulk of the real spikes come from during launches, that's where the whole excitement is. The bulk of the growth prospects will come in Q3 and Q4 when the launches happen. So, we will be really looking for our numbers to be, I mean, bulk of it will come from the launches. So, it should be similar, I mean, what we are doing currently or steady or maybe better than this, we expect Q2 should be if there is a pickup, momentum, etc., depend

Good morning, everyone. Sir my first question is on the IFC deal. So, on the recently announced private equity deal involving IFC, sir, it appears that the transaction has been done close to our acquisition cost. I mean, Thane is around Rs. 600 crores and Manjri is around Rs. 300 crores. And if you see, 44% to IFC for Rs. 420 crores translated into some Rs. 950-odd crores. So, it looks like we are doing the deal close to acquisition cost. So, I mean, given that we are on the verge of receiving proceeds from the paper business divestment, what was the urgency or liquidity need to close this pay

K.T. Jithendran

So, Biplab, before I hand over to Keyur to give you all the details of the deal, on a strategic level I just want to express to you that if you carefully look at these two deals, both the Thane deal and the Manjri deal, you would very clearly appreciate that we are not paid the full value of the land. These are both deferred land acquisitions. So, we have not really paid the value of the land. In fact, we have paid only a part of it and that is true for both these particular projects. Having said that, there is also a premium that we have taken in terms of warehousing interest in both these pr

Yes. Hi. So, I wanted to ask, there is a lot of redevelopments happening around the Mumbai, as you are aware. So, what are your views three to five years down the line? Do you think the excessive supply of redevelopment will be affecting our long term plans for the Company? In terms of supply, I am talking.

K.T. Jithendran

Yes, very valid. I think the way forward for the development of Mumbai will be substantially skewed towards redevelopment. Redevelopment has its pros and cons. But as you know, Mumbai, there is hardly any industrial land available. Most of that got consumed. The last few are up for taking. And buildings have got old if you look at South Bombay and other major parts of the island city and even now the suburbs. So, I think redevelopment is a very strong phenomenon and it has to be addressed. And we also believe that we should have presence there and we should create a niche there. We are working

Thank you for the opportunity again. So, sir, my question was regarding to build up Punya. I think this year we are planning to launch roughly Rs. 20 billion of GDV here. I think we already have RERA approval for this one, so what is the reason for holding this project?

K.T. Jithendran

Akash, we had the RERA for the first phase. And after that, remember, last year we could launch only a small part of the inventory because of some changes in rules. We need another fire service floor above the 17th floor, etc. So, we could launch only till 16 floors. Now we are gearing up. We need a new RERA, some free NOCs, etc., which all we have covered. We have got environmental clearance also. We are awaiting the RERA. And then we will launch a big tranche this year. Got it. Got it. And, sir, I just wanted to understand on the cash flow situation. So, how should we look at the year-end ne

Yes, KT. So, I was essentially looking for the Prabhadevi project, the Century Bhavan I think. So, I wanted your views on that, what are your long-term plans? Because as you know the Oberoi 360 has done extremely well in terms of premium project housing, so what are our plans for the project?

Management

Yes. Hi, KT. So, I wanted your views on the Prabhadevi Century Bhavan project. As you know, the Oberoi 360 project has done extremely well, so what is our long-term plan for that particular project? Are we looking at the same kind of premium project? Because it's an extremely prime location for the Company.

K.T. Jithendran

Yes. So, we do not have any plans right now for that project. It's not in our short-term plans. We will look at it at the right time. Okay. And the investor presentation is showing the Worli, new plot is the one which we bought recently, right? Right. And there's a small plot showing the Worli West project, that's a small one? Yes, that's about 3.5 acres. That's not part of the diagram. That's not part of the Niyaara, right? Yes, that's not part of the Niyaara. That is not part of the map that is there. It is not in the map that we have presented. Okay. And what are the particular places where

Hello. Good morning. Sir, have you given any presales and collections guidance for this year, FY '26?

K.T. Jithendran

No, I think I already mentioned, we are not giving any guidance. We are more focused on the long term. Can you hear us? We are not giving any annual guidance for this year, because it really doesn't make sense, given so many uncertainties and approvals, etc. We are rather happy giving you our long term three year guidance, which we have guided you for an annual sales of Rs. 15,000 crores, in no particular order. So, it will be more back-ended. So, that's the best I can sort of give a direction today. This Rs. 15,000 crores by when? Sorry, your voice was dropping. In three years' time. For the

Hello, sir. Sir, my question is, how are we moving in terms of execution across all the projects? Like, is it going as per our timeline?

K.T. Jithendran

Yes. So, I think the most key focus as a Company we do is on getting projects on time with primary focus in safety, quality, timelines, and within the budget. So, far, I am very happy and proud to say that all our projects are as per our timelines. Okay. Thank you, sir. That was from my side.

Yes. Thank you. I hope I am audible. My question is, I think sales has been an issue, at least for this quarter for us. Others have also reported people like Oberoi etc. And luxury segment, it looks like in terms of pre-sales is under pressure. And when we hear commentary from housing finance companies also, yesterday one of the largest has also spoken about soft real estate market. So, in this scenario, how do you ensure that rather than reacting to a potential slowdown in sales, proactively you kind of get your pre-sales going?

K.T. Jithendran

So, Sujit, if you would have noticed the trend, likely the real surge in sales happens during the launches and bulk of the inventory gets absorbed during the launches. So, it's really hard to judge any kind of trends when there are no launches. Again, I know the markets, and speaking for ourselves, most of the markets that we are representing, there is hardly any offtake of housing finance. It's not much. It's less than 50% or much lower than that. Having said that, I would not say our pre-sales has been far below expectations, it's been more or less as we had expected. Because of the huge abs

Sir, two quick questions. One is on the paper business divestment. I was under the impression that the deal would be closed in this quarter, I mean July-August. But now it looks the deal would be closed towards the end of the Calendar Year 2025. So, could you clarify if there is any risk or uncertainty around the deal not closing as planned?

R. K. Dalmia

No, there are no uncertainties. And the deal is on track. And we expect to complete by the end of this Calendar Year 2025. Okay, sir. And second question is on the payment; land-related payment is still pending for Manjri and Thane projects. How much we have paid or how much are still pending in Manjri and Thane both, how much do we have to pay? In Thane, the payment has already been made. And with the IFC funding coming in, there is no further payment which we have to contribute to. I mean, land payment is pending but that will come from that part of it. Yes, but we do not need to contribute

Thank you all for participating in this Earnings ConCall. If you have any further questions or would like to know more about the Company, please reach out to our IR managers at Valorem Advisor. Thank you for your interest in our Company. Thank you.

Management

Speaking time

K.T. Jithendran

Moderator

Himanshu Javel

Biplab Debbarma

Keyur Shah

Akash Gupta

Puneet Gulati

Amit Srivastava

Karan Khanna

Sujit Jain

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Opening remarks

Biplab Debbarma

Thank you, Ryan. Good morning, everyone, and welcome to the Q1 FY '26 Earnings Call of Aditya Birla Real Estate, hosted by Antique Stock Broking. Please note certain statements made during this call may be forward-looking in nature and are subject to risks and uncertainties. Actual results may vary materially. Today, we have with us the Management of the Company represented by Mr. R. K. Dalmia – Managing Director, Aditya Birla Real Estate; Mr. K.T. Jithendran – Managing Director and CEO, Birla Estates, Mr. Snehal Shah – CFO, Aditya Birla Real Estate, and Mr. Keyur Shah – CFO, Birla Estates. Without further ado, let me hand over the call to Mr. Dalmia. Over to you, sir.

R. K. Dalmia

Thank you. Good morning, everyone, and welcome to the Earnings Conference Call for the 1st Quarter of the Financial Year 2026. As many of you know, at Aditya Birla Real Estate, we are in the midst of a strategic transformation, shaping the Company into one of India's most focused and future-ready real estate platforms. Financial '25 was a landmark year in this journey. And we have entered Financial '26 with the same level of discipline and long-term ambitions. During the 1st Quarter of Financial Year 2026, our primary focus was on execution, consolidation, and preparing for a robust launch pipeline in the quarters ahead. We began this year with the backdrop of a resilient Indian economy. With strong microeconomics fundamentals and stable GDP growth projections, the long-term structural demand for quality real estate remained unequivocally strong. It is within this promising context that we are executing our refined strategy with a focus towards the real estate business. And therefore,

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Aditya Birla Real Estate Limited

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