Ajmera Realty & Infra India Ltd Q2 FY2026 Concall Summary & Transcript Notes

Source transcript PDF: https://www.stockscans.in/document/x9ax90v951t6rry1rbrlgy1h.pdf

# 1. Financial Performance

## A. Key Figures
   *   **Revenue:** **₹481 Cr** H1 FY'26 (+20%)
   *   **EBITDA:** **₹139 Cr** (+6%)
   *   **PAT:** **₹71 Cr** (+2%)
   *   **Debt:** **₹690 Cr** as of Sep-25
   *   **Net Cash Flow (OC + Ongoing):** **₹1,526 Cr**
   *   **Total Cash Flow Projection:** **₹2,872 Cr** (from projects and monetization)

## B. Revenue & Growth
   *   **Strong H1 Growth:** Robust top-line expansion driven by consistent project execution, with full-year revenue expected to show significant growth from prior year’s ₹750 Cr base.
   *   **Revenue Visibility:** Near-term revenue pipeline includes **₹91 Cr** from OC-received projects, while **₹3,508 Cr** in ongoing projects will contribute gradually starting in coming quarters.
   *   **Long-Term Revenue Backlog:** Revenue from **₹4,300 Cr** of launched projects to be realized over 4.5–5 years, ensuring multi-year revenue visibility.

## C. Margins & Profitability
   *   **Margin Pressure from Mix:** EBITDA margin decline attributed to revenue recognition from lower-margin projects, particularly in **Bangalore (e.g., Vihara)**, under percentage-of-completion accounting.
   *   **Stable Core Margins:** Despite low-margin project contribution, overall EBITDA and PAT margins held stable, signaling underlying profitability resilience.
   *   **Path to Margin Expansion:** High-margin presales, especially from **Manhattan**, expected to drive margin improvement in upcoming quarters.

## D. Balance Sheet
   *   **Healthy Leverage Profile:** Strong balance sheet with debt-equity ratio of **0.55x net worth**, supported by disciplined financial management and a **24 bps decline in weighted average cost of debt**.

## E. Cash Flow
   *   **Robust Cash Flow Pipeline:** Total projected cash inflow of **₹2,872 Cr** includes **₹1,016 Cr** from upcoming projects and **₹330 Cr** from asset monetization and U.K. investment repatriation.
   *   **Capital Recycling in Action:** Monetization proceeds will be used to repay **loans and equity funding**, with repatriation flows already initiated for investor transparency.
   *   **Cash Flow Timeline:** Majority of cash flows expected within 2–3 quarters to 4.5–5 years, aligned with project completion and sales cycles.

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# 2. Sales & Bookings

## A. Key Figures
   *   **Quarterly Bookings:** **₹828 Cr** (record high, >50% of FY guidance achieved in first two quarters)
   *   **Sales Value:** **₹828 Cr** (48% YoY growth) · **₹720 Cr** in one quarter (3x YoY)
   *   **Sales Volume:** **293,000 sq ft** carpet area (+20% YoY) · **Collections:** **₹454 Cr** (+52% YoY)
   *   **Revenue Visibility:** **₹3,599 Cr** (₹1,582 Cr committed + >₹2,000 Cr from available inventory)

## B. Quarterly Bookings
   *   **Record Momentum:** Highest-ever quarterly bookings reflect strong market acceptance across new launches, particularly in community-centric developments.
   *   **Rapid Sales Velocity:** Multiple projects—**Ajmera Manhattan 2**, **Thirty 15**, and **Ajmera Iris**—achieved **38%**, **5–6%**, and **70% sales**, respectively, within days or weeks of launch, signaling robust demand.
   *   **Advanced Project Maturity:** **Manhattan 1**, **Greenfinity AB**, and **Vihara** are in final sales stages with **90%**, **74–75%**, and **>70%** sold, respectively, supporting near-term revenue conversion.

## C. Sales Volume
   *   **Balanced Growth Drivers:** H1 sales expansion driven equally by volume and pricing realization, underpinned by broad-based investor interest across residential, commercial, and retail segments.
   *   **Strong Collections Growth:** Collections surged **52% YoY**, significantly outpacing volume growth, indicating improved cash flow efficiency and buyer commitment.

## D. Revenue Visibility
   *   **High Revenue Backlog:** Robust revenue visibility of **₹3,599 Cr** provides strong near-to-mid-term earnings cover, with over half derived from committed sales.

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# 3. Project Pipeline & Launches

## A. Key Figures
   *   **Potential JDV from Recent Launches:** **INR 2,100+ Cr** (Wadala & Bandra)
   *   **Upcoming Project Pipeline GDV:** **INR 4,300 Cr** across **16 Cr sq. ft. carpet area**
   * Total Revenue Visibility: **sub INR 8,000 Cr** from current and upcoming projects
   *   **Expected Cash Flow from Upcoming Projects:** **INR 1,016 Cr** over 4.5–5 years

## B. Upcoming Launches
   *   **Strong Launch Momentum:** Two marquee projects in Wadala and Bandra successfully launched in late Q2, with positive buyer response observed in October.
   *   **Robust Pipeline Execution:** Seven upcoming projects set to contribute **INR 4,357 Cr** in GDV, reinforcing near-term revenue visibility and growth trajectory.
   *   **Land Bank Expansion:** Active pursuit of **three to four new projects** targeting **over INR 3,000 Cr** in future revenue, pending regulatory approvals.
   *   **Diversified Launch Plan:** Portfolio includes residential and boutique office assets across key micro-markets including Vikhroli, Versova, Bangalore, and Wadala.

## C. Ongoing Projects
   *   **Scaled Project Execution:** Aggressive rollout planned across **nine ongoing** and **six to seven upcoming projects**, supporting delivery of ~15–16 projects over next 3–4 years.
   *   **Sustained Sales Performance:** Manhattan project transitions into sustenance phase after strong initial sales, with continued contribution expected over coming quarters.
   *   **International Monetization Path:** Bahrain project exited with down payment received; repatriation of proceeds expected within **a couple of quarters** post-completion.

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# 4. Product & Segment Mix

## A. Business Model Buckets
   *   **Headline:** Four-pillar business model spans greenfield, joint development, outright purchases, and slum/society/MHADA redevelopment, with dedicated teams across each.
   *   **Headline:** Greenfield projects deliver **higher margins** due to low-cost legacy land, while redevelopment activities exert downward pressure on overall profitability.
   *   **Headline:** Strategic evaluation of new Mumbai redevelopment opportunities underway, leveraging robust owned land parcel in high-potential locations.

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# 5. Construction & Delivery

## A. Key Figures
   *   **Sales Completion:** **89%** Ajmera Manhattan Phase-1 · **74%** Ajmera Greenfinity · **98%** Ajmera Eden · **81%** Ajmera Vihara Bhandup · **97%** Lugaano & Florenza (Bangalore)
   *   **Delivery Volume:** **533 homes** delivered in H1 FY'26 · Target of **~1,000 homes** for full FY'26
   *   **Podium Construction Cost:** **₹2,500–3,000/sq ft** (shared across four buildings)
   *   **Bahrain Receipts & Entitlement:** **₹35 Cr** received (primarily FY'22) · **>10,000 sq m** inventory in advanced completion stages

## B. Project Progress
   *   **High Sales Absorption:** Strong pre-sales momentum across key projects, with five developments exceeding **70% sales completion**, reflecting sustained demand and brand traction.
   *   **Advanced Construction Stages:** Structural work largely complete or well advanced in all major projects, with finishing work commencing or imminent, supporting near-term revenue recognition.
   *   **Complex Cost Allocation:** Revenue recognition for Manhattan tied to **25% cost-based completion** and IndAS POC criteria; podium costs are **shared across four towers**, complicating per-project accounting.
   *   **Construction Efficiency:** Total built-up area estimated at **1–2x saleable carpet area**, factoring in podium, lobbies, and shared infrastructure, highlighting development intensity.

## C. Completion Timeline
   *   **On-Track Deliveries:** Manhattan Phase-1 targeted for completion by **Dec 2026–Mar 2027**, with internal stretch goal set for **December 2026**, ahead of RERA deadlines.

## D. Delivery Volume
   *   **Robust FY'26 Delivery Pipeline:** Over half of the annual target already delivered; remaining **~467 homes** expected in H2, signaling strong execution and cash flow visibility.

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# 6. Pricing & Market Demand

## A. Key Figures
   *   **Realization/SF:** ₹28,000 avg. (H1 FY26) (+23% YoY) · ₹30,000–32,000 for Manhattan project
   *   **Land Cost Benchmark:** ₹10,000–15,000/SF (MMRDA & Wadala plots)
   *   **Expected End-Product Pricing:** ₹45,000–50,000/SF (Wadala) · ₹50,000+/SF (MMRDA)

## B. Realization Trends
   *   **Pricing Power Confirmed:** Significant improvement in average realizations driven by premium project launches and rising land cost pass-through.
   *   **Value Enhancement:** Future realizations expected to benefit from area development uplift, particularly around existing plots.

## C. Segment Demand
   *   **Favorable Macro Tailwinds:** Luxury and mid-income segments seeing strong momentum, supported by lower interest rates and policy stimulus (GST cuts, monetary easing).
   *   **Near-Term Sales Constraint:** Sales volumes flat due to limited inventory availability and selective buyer preferences.

## D. Competitive Positioning
   *   **Strategic Project Shift:** Next-quarter sales focus moving to Vikhroli, offering higher volume at a relatively lower price point than Manhattan.
   *   **Differentiated Offering:** Manhattan’s effective open space exceeds **50%**, positioning it favorably against peers like Lodha despite comparable benchmarks.

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# 7. Risks & Approvals

## A. Regulatory Delays
   *   **Headline:** Regulatory environment improving overall, with faster approvals enhancing market stability amid industry consolidation.
   *   **Headline:** Versova redevelopment progressing through phased approvals; **NIC secured**, with **society breakdown expected within 20 days**, followed by CC and RERA.
   *   **Headline:** Kanjurmarg project facing multi-agency coordination challenges; **EC application pending** but expected imminently, with **basic approvals anticipated post-BMC elections**.
   *   **Headline:** **100% likelihood of election-related delays** confirmed; team accelerating pre-election approval efforts across key projects.
   *   **Headline:** Leasehold-to-freehold conversion underway with authorities, though **no fixed timeline** has been established.

## B. Project-Specific Risks
   *   **Headline:** Vikhroli project nearing launch, with approvals in **advanced stage** and rollout expected in **days to weeks**.
   *   **Headline:** Wadala Manhattan project features **~80% open area** due to **7-acre car-free podium** supporting only four towers, mitigating density concerns.

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# 8. Guidance & Outlook

## A. Key Figures
   *   **Estimated GDV:** **INR 6,400 Cr** for FY '26 · **INR 2,100 Cr** from two launched projects

## B. Sales Guidance
   *   **Full-Year Confidence:** Management expresses 100% confidence in meeting sales guidance, backed by strong H1 execution and successful project launches.

## C. Growth Outlook
   *   **Market Maturity:** Indian real estate is entering a more mature growth phase, with steady momentum in FY '26 following record performances in FY '24 and FY '25.
   *   **Margin Trajectory:** Expectation of margin expansion in coming quarters as higher-margin projects like **Manhattan** contribute to revenue, offsetting current lower-margin drag.