# 1. Financial Performance ## A. Key Figures * Revenue: ₹12 Cr (first half) · 29% GP margin (first half) * **Net Debt:** **₹970 Cr** (current) · Target **zero in 12–15 months** * Total Collections: INR18.6 billion (H1) · INR940 crores construction spend (H1) * **Debt Raise:** **₹875 Cr** ($100M) from IFC via NCDs · **A+ stable** rating (CARE) ## B. Gross Profit Margin * **Margin Strength:** Robust gross profit margin expansion in H1, reflecting improved operational efficiency and pricing power. * **EBITDA Pressure:** EBITDA margin contraction observed due to **lower-than-expected revenue recognition**, with recovery expected in second half. ## C. Net Debt Position * **Strategic Capital Raise:** Successful **first-ever listed NCD issuance by an Indian real estate firm**, enhancing credibility and diversifying funding sources. * **Deleveraging Trajectory:** Confident path to **zero net debt within 12–15 months**, supported by strong cash flows and disciplined capital allocation. * **Development Shift:** Moving to **lump-sum construction contracting** for large projects, signaling financial strength and scalability. ## D. Cash Flow Generation * **Organic Funding Model:** Portfolio has grown **2x to 5x since listing** with flat net debt, demonstrating **self-sustaining growth via cash flows** from completions. * **Capital Allocation:** Majority of H1 collections directed toward construction (47%) and operating costs (25–27%), with **free cash flow deployed into land bank expansion**. * **Launch Confidence:** No recent failures in achieving financial closure on launches, underpinned by **strong collections and project execution track record**. --- # 2. Launches & Presales ## A. Key Figures * **Presales Value:** **₹4,660 Cr** (H1 FY) (~40% of ₹12,500 Cr annual guidance) * **Units Sold:** **1,338 units** (H1) at **₹3.5 Cr/unit** · **3 Mn sq ft sold** at **₹15,700/sq ft** * **GDV Potential:** **>₹23,400 Cr** from post-listing launches · **>₹65,000 Cr** total pipeline GDV ## B. Presales Value * **Strong H1 Execution:** Nearly 40% of annual presales target achieved in first half, reflecting robust buyer interest and effective monetization. * **New Launch Contribution Lagging:** Despite aggressive expansion, new launches have contributed **less than ₹500 Cr** to date, indicating ramp-up phase dynamics. ## C. Unit Sales Volume * **Healthy Demand Momentum:** High absorption rate of **over 80%** on recent launches signals strong market acceptance of product sizing and pricing. * **Sales-Absorption Timing:** Management emphasizes that real estate absorption is back-ended; timing lags are intentional and factored into delivery and cash flow forecasts. ## D. Launch Pipeline * **Unparalleled Scale & Pace:** Second-half launch pipeline of 8 crore sq ft is unmatched in the micro market, positioning the company for significant sales and cash flow acceleration. * **Execution Strategy:** Projects will be launched in **single or minimally phased** formats, signaling confidence in execution and market absorption over a 12–15 month horizon. * **Capital Deployment Rising:** Construction spend set to increase in H2 and further in FY25, aligning with large-scale project rollouts in Sectors 37D and 71. --- # 3. Inventory & Supply ## A. Key Figures * **Unsold Inventory:** **₹5,000 Cr** (launched post-Feb 2024) * **Sales Achievement:** **>80%** of launched inventory sold (~₹18,000 Cr) * **Pending Collections:** **₹2,200 Cr** from ongoing projects * **Completion Pipeline:** **9 million sq. ft.** nearing completion; target of **₹10,000 Cr** worth completion in 18–20 months * Land-Stage Inventory: 24 million sq. ft. with ~⅔ expected to launch in 3–4 months * Planned Development Area: **42 Mn sq. ft.** (including 1.5 Mn sq. ft. incremental from Sohna & Sector 71) ## B. Unsold Inventory * **High Monetization Rate:** Strong sales execution with over 80% of launched inventory monetized, reflecting robust demand and effective pricing. * **Inventory Composition:** Unsold stock skewed toward **group housing (₹2,800 Cr)** and **industrial plots (₹750 Cr)**, with partial sales blockage in Daxin mid-rise units. * **Churn Strategy:** Committed to rapid inventory turnover, targeting full launch of remaining pipeline within **2 years**, minimizing land bank overhang. ## C. Completion Queue * **Near-Term Delivery Focus:** ~9 crore sq. ft. in final stages, with execution resilience maintained despite weather disruptions. * **Execution Enhancement:** Strategic engagement of **Bain & Company** and top-tier contractors to accelerate completion of ₹10,000 Cr worth projects in 18–20 months. * **Sequential Rollout:** Prioritization of **9 Cr sq. ft. group housing units** and **2,500+ low-rise floors in Daxin**, followed by developed plots for imminent revenue recognition. ## D. Land Bank Quality * **Improved Launch Readiness:** Nearly two-thirds of 4 crore sq. ft. land-stage inventory expected to transition to launch phase within **3–4 months**, enhancing near-term supply visibility. ## E. Development Area * **Scalable Footprint:** Planned development area expanded to 85 crore sq. ft. via densification in **Sector 71 and Sohna market**, with no new land acquisition required. --- # 4. Product & Segment Mix ## A. Key Figures * **Plotted Development Sales:** **₹1,500–2,000 Cr** sold in Daxin project ## B. Apartment Size Shift * **Downsizing Strategy:** Shift to smaller apartment sizes (from 2,200–2,300 sq ft to ~1,800 sq ft) to target upper mid-segment and enhance sales velocity. * **Market Alignment:** Strategic pivot toward more affordable, compact units reflects demand trends and aims to broaden buyer participation. ## C. Plotted Development * **Growth in Township Projects:** Significant traction in plotted and low-rise developments, highlighted by large-scale sales in the **125-acre Daxin** project. * **Portfolio Diversification:** Expansion into integrated townships like **City of Colours** underscores strategic emphasis on plotted housing as a key growth driver. --- # 5. Geography & Market Presence ## A. Key Figures * **Property Price Appreciation:** **151%** Sohna corridor (5 years) · **125%** other area (5–6 years) * **Unit Sales Contribution:** **>500 units** Sohna · **~450 units** Sector 71 · **>300 units** Dwarka Expressway * Land Holdings: 2.3Mn sq ft added in Sohna (0.5Mn direct, 1.8Mn via JDA takeover) · 3Mn sq ft sold in Sohna * Land Bank: >92 acres in Sector 71 with 17 mn sq ft projected sales potential ## B. Sohna Corridor * **Outperformance Confirmed:** Sohna emerged as the top-performing corridor with **strong double-digit price appreciation**, underpinned by infrastructure development and sustained demand. * **Sales Leadership:** Sohna was the largest contributor to unit sales, reflecting **dominant market positioning** and execution capability. * **Land Expansion via Strategic Takeover:** Majority of land addition in Sohna achieved through **acquisition of JDA partner’s stake**, enhancing control and development visibility. ## C. Sector 71 * **Monopoly-Like Advantage:** Company holds **one of the largest land banks** in Sector 71 with minimal new competition, enabling pricing power and steady sales offtake. * **Long-Term Launch Pipeline:** Vast land ownership supports **multi-year development runway**, with 7 crore sq ft of potential sales volume. ## D. Dwarka Expressway * **Repeatable Development Model:** Dwarka Expressway projects will replicate proven large-scale development expertise, particularly from **Twin Towers in Sector 84**. ## E. NCR Demand Base * **Focus Over Expansion:** Despite peer moves into Mumbai, company remains **fully committed to NCR**, citing **4 crore population base** as sufficient for long-term growth. --- # 6. Risks & Market Factors ## A. D. Inventory Mix Risk * **Shift to Premium Segments:** Pricing momentum supported by a strategic shift toward the **upper mid-segment**, enhancing average realizations. * **Liquidity Risk in High-End Inventory:** **A significant portion** of unsold inventory comprises large-format units (e.g., 3,600 sq. ft. apartments and penthouses) in projects like Titanium, posing slower absorption and capital turnover risks. --- # 7. Guidance & Outlook ## A. Key Figures * FY26 Guidance: ₹125 billion sales · ₹48 billion revenue recognition · ₹60 billion collections · ₹170 billion launches * **Upcoming Launches GDV:** **₹13,000 Cr** potential * **Near-Term Sales Pipeline:** **₹4,000–4,500 Cr** from ongoing/recent launches · **~₹1,500 Cr** from new launches ## B. Launch Schedule * **Lumpy Launch Cadence:** ~22–23% of annual GDV already launched; Q1 saw one project in Sector 71, Q2 had no launch, with two major launches scheduled in H2. * **Back-Loaded Momentum:** H2 expected to drive volume, aligning with historical pattern and supporting full-year target confidence. ## C. Debt Reduction * **Capital Allocation Discipline:** Proceeds prioritized for mid-income and ESG-aligned project development, alongside balance sheet strengthening via debt reduction. * **Strategic Priorities:** Reinforces dual focus on **financial prudence** and **sustainable, community-centric growth**.