Ajmera Realty & Infra India Ltd Q3 FY2025 Concall Summary

Key Takeaways

• Steady quarter, launch-heavy outlook: Sales value rose ~7% YoY to INR 270 crores, while 9M PAT already matched full-year FY24, setting a base for a back-loaded year.
• The pipeline is the story: Six launches worth INR 4,300 crores GDV are planned over the next two quarters, a volume that will define whether FY26 guidance lands.
• Balance sheet deleveraging continued: Debt fell 14% in 9 months post-equity raise, pulling the debt-equity ratio to 0.57x and keeping the cost of debt stable at ~12.22%.
• Margins held firm and are promised to stay there: EBITDA margin printed at 35% for the quarter; management guided 33–34% as sustainable going forward.
• What to watch next quarter: Whether the two Q4 launches hit their March target, any concrete timeline on the Wadala commercial JV, and the FY26 presales guidance that management withheld.

Launch Pipeline & Project Execution

• Six launches, two quarters: Management plans to launch two projects in Q4 FY25 (Lakeside Paradise in March, Wadala residential targeted for March) and the remaining four in Q1 FY26, together adding ~0.17 crore sq ft and INR 4,300 crores of GDV.
• Wadala residential is in soft launch: Customer calls are underway without RERA; response has been "fairly good" and management expects to clock meaningful numbers once RERA is in hand, with launch targeted in the next few months.
• Kanjurmarg on track for Q1 FY26: Infra work (roads, boundaries) has started; the police housing component already has its commencement certificate. Environment clearances are at the second level, with the NGT stay on approvals adding a 5–6 month process window.
• Rustomjee JV redevelopment is also slated for a Q1 FY26 launch, with approvals partly received and partly in progress.
• Bangalore exits nearing: Lugano and Florenza are almost sold out and expected to be delivered over the next two quarters, by Q2 of next fiscal year. Ajmera Prive (Juhu) is two-thirds sold and management hopes to complete it in the next couple of quarters.
• Ajmera Iris, the newest launch: Sold more than 50% of inventory within two months of launch; construction has started and management hopes to be nearly sold out by the time the project reaches ground level.

Dhaval Ajmera | on Kanjurmarg approvals: "It's a process which we've started. And usually, this takes about 5, 6 months to complete, and that's where we are."

Sales & Collections Momentum

• Sales area jumped 59% YoY to over 165,000 sq ft, while sales value grew almost 7% YoY to INR 270 crores, driven by sustained momentum and fast-track execution.
• Collections rose 10% YoY to INR 167 crores, a slower pace than sales but still positive. For 9M, collections reached INR 464 crores, up 25% YoY.
• 9M sales value hit INR 830 crores, up 14% YoY, keeping the company on track for its reiterated INR 1,350 crores FY25 presales guidance.
• Mumbai demand is holding: Management sees no slowdown in its own projects. The market turned cautious from mid-December due to stock market behavior, but volumes are still happening. The Budget's income-tax relief (up to INR 12 lakhs) is expected to boost liquidity, and management hopes for an RBI rate cut to add further tailwind.

Revenue Recognition & Visibility

• Ajmera Greenfinity became revenue-eligible in Q3, adding to the recognition base. Total revenue for the quarter was INR 199 crores.
• Revenue visibility stands at INR 6,000-plus crores: INR 1,700-plus crores from OC-received and ongoing projects, plus an estimated INR 4,300 crores from the launch pipeline.
• The presales-to-revenue lag is 4–5 quarters: A project typically becomes revenue-eligible after achieving 25% progress on cost spending and securing critical approvals. Management did not quantify how much of the INR 1,350 crores presales guidance will convert to FY25 revenue.
• Estimated net cash flow pretax and post-debt from OC-received and ongoing projects is about INR 714 crores.

Balance Sheet & Margins

• Debt fell INR 107 crores over 9 months, a ~14% reduction, following the recently concluded preferential issue. The debt-equity ratio improved to 0.57x, and the weighted average cost of debt held stable at ~12.22%.
• EBITDA margin printed at 35% for Q3, with 9M EBITDA at INR 200 crores (up 42% YoY) and a 33% margin. PAT for 9M reached INR 102 crores, up 37% YoY, already matching full-year FY24.
• Margin sustainability guided at 33–34%: Management attributed the efficiency gains to strong sales run-up, faster project execution, and the deleveraging effect of the equity raise.

Business Development & Land Updates

• INR 2,450 crores of GDV added over the last nine months across new project additions, enabled by heavy cash flow from the preferential issue.
• Wadala commercial land (demerged parcel): Backend planning is underway and the company is speaking to potential JV partners. If no tie-up materializes, it will develop the parcel on its own. Approvals will take the requisite 5–6 months, and this timeline is independent of the residential Wadala launch.
• South Mumbai land deal remains in limbo: Discussions are ongoing but management has not pushed for closure, stating it will sell only at the right value since cash flows are not dependent on that sale. No timeline was offered.
• Yogi Nagar project removed from the upcoming pipeline due to internal hurdles related to society consensus. Management is confident it will return in the next few quarters but gave no specific date.

Dhaval Ajmera | on South Mumbai land sale: "We've not honestly pushed out to complete because if we don't get the kind of offer what we want, we do not want to just go ahead and sell it."

Market Sentiment & Demand Outlook

• Overall tone is buoyant: Management described the market as "very buoyant and positive" and expects new project launches to attract more customers and buyers.
• Budget tailwind expected: The income-tax relief up to INR 12 lakhs is seen as a significant liquidity boost for prospective homebuyers. Management also hopes for an RBI rate cut to further improve affordability and sentiment.
• No slowdown visible in Ajmera's projects: While the broader market turned cautious from mid-December, sales velocity in the company's own portfolio remains decent.

Dhaval Ajmera | on market sentiment: "Now what I see is with the budget and the liquidity of the income tax availability now, which is up to INR12 lakhs, I think this will be a great boost in liquidity."

Guidance & Commitments

Key Metrics