Ajmera Realty & Infra India Ltd Q4 FY2025 Concall Summary

Key Takeaways

• Record-low leverage with steady growth: Sales value reached INR 1,080 crores (6% YoY) while debt fell 15% to INR 119 crore, pushing debt-to-equity to a historic low of 0.55x.
• Launch pipeline is the growth engine: 40% of FY25 sales came from new launches, and nine upcoming projects carry a combined GDV of INR 6,500 crores, setting up a step-change in scale.
• Regulatory overhang has pushed three key launches: An NGT stay order affecting projects near eco-sensitive zones has delayed Vikhroli, Versova and Kanjurmarg; the matter is now in the Supreme Court, closed for orders, with no firm timeline for resolution.
• Management is choosing growth over a debt-free balance sheet: The company will keep debt project-mapped and the D/E ratio under 0.85x, explicitly rejecting deleveraging that would sacrifice its growth trajectory.
• What to watch next quarter: Whether the Supreme Court order on the NGT matter clears the way for the delayed launches, and whether the Wadala project launches on schedule in Q1 as guided.

Launch Pipeline & Revenue Visibility

• Nine new projects incoming: 0.22 crore sq ft of carpet area with a GDV of approximately INR 6,500 crores, positioning the company for a significant scale-up. Total cost is estimated at INR 4,500-4,800 crores, spread over the next 3-4 years.
• Revenue visibility is substantial: OC-received and ongoing projects hold INR 1,897 crores in total revenue (INR 1,200+ crores already achieved, INR 650+ crores pending), while the launch pipeline adds INR 6,400+ crores, taking the total to INR 8,354 crores. Estimated net cash flow from OC-received and ongoing projects stands at INR 769 crores.
• Wadala launch imminent: Management is confident of launching the Wadala project in Q1, with most approvals in place and final handovers underway. A revised plan for a boutique office component (400-600 sq ft strata sale, INR 1,800 cr) is also in the works.
• Kanjurmarg: one launch this year, more to follow: The company plans one launch in Kanjurmarg this year, with parallel launches in Kanjurmarg and Wadala by next year. Handovers of roads and amenities to the government are ongoing, with an endeavor to complete them by Q3 for a clean layout, though there is no compulsion to do so.
• New project acquisitions target raised: After acquiring ~INR 2,500 crores of projects in FY25 (vs guidance of INR 3,000-odd crores), the company is targeting INR 3,500-3,600 crores of new acquisitions in FY26.

Dhaval Ajmera: "This year is going to be very, very exciting for us as a company. And we are really looking forward for great launches and great numbers coming for our company this year."

Regulatory Overhang: The NGT Order

• What happened: A National Green Tribunal stay order requires environmental clearance appraisals for projects within 5 km of eco-sensitive zones (such as Sanjay Gandhi National Park) to be processed in Delhi rather than at the local level. This affects many projects across Mumbai's central and western belt.
• Which projects are hit: Vikhroli, Versova and Kanjurmarg launches have been pushed back as a result. The matter has been argued in the Supreme Court and is now closed for orders, with management hopeful of clearance "very soon."
• The unanswered question: When asked how confident management is that no further delays will occur, the response focused on the reasons for current delays rather than committing to a timeline or ruling out additional slippage.
• Kanjurmarg specifics: Beyond the NGT issue, the project is still under master planning and internal approval processes. An analyst flagged that no documentation has appeared in the DCR since August 2024; management did not directly address this, citing ongoing handovers and planning work.

Dhaval Ajmera: "So fundamentally, there has been a stay order which has come from NGT is a National Green Tribunal, which has said that any projects which are in the surrounding area of 5 kilometres of eco-sensitive areas of the city or a town will have to start appraising the environment clearances, not at the local level that is Bombay or Maharashtra, but you have to go to Delhi."

Project Performance & Sales Momentum

• New launches are driving sales: 40% of FY25 sales value came from projects launched during the year, a metric management points to as validation of brand Ajmera's customer reception.
• Ajmera Marina, Bangalore: Launched in Q4, 62% of inventory sold within the quarter, with excavation work already started.
• Mature projects nearing sell-out: Ajmera Manhattan is 88% sold (23rd/21st level progress), Ajmera Eden is 90% completed and 90% sold, the Juhu project has very little inventory left with OC applied, and Bangalore Lugaano/Florenza are 90-95% sold with completion expected by September 2025.
• Mid-cycle projects progressing: Ajmera Greenfinity is roughly two-thirds sold with over 60% RCC complete, Ajmera Vihara (Bhandup, launched May 2024) is 65% sold and on the first slab, and Ajmera Iris is 50-60% sold.
• New land additions: An outright purchase of a smaller land parcel in Ghatkopar east is expected to deliver 30-35%-plus returns, while a Shastri Nagar redevelopment project is projected at ~20% IRR. The Arham project in Malad is not included in the portfolio due to land complexities inherited over 15-18 years.

Dhaval Ajmera: "40% of our sales have come through project launches this year, which just shows and validates that the brand Ajmera has been well received by the customers, and we continue to reap the fruits about getting great launches for our projects."

Balance Sheet & Capital Allocation

• Debt reduction in progress: Total debt fell 15% YoY to INR 119 crore, with the general corporate loan specifically reduced from INR 338 crore (March 2024) to approximately INR 167 crore. Management plans to prepay further and endeavor to zero down the corporate loan entirely.
• Cost of debt has room to fall: The weighted average cost of debt stands at 12.2% per annum, but marginal loans have recently been syndicated at much lower rates. Two repo rate cuts by the RBI are expected to provide additional headroom for the cost of debt to decline.
• Debt-free is off the table: Management explicitly rejected the idea of becoming debt-free, arguing that construction is a debt-requiring business and that eliminating debt would sacrifice growth. Future debt will be project-mapped rather than carried as a separate balance-sheet burden.
• Leverage guardrail: The target is to keep the debt-to-equity ratio under 0.8-0.85x, and management states it will not go beyond that.

Dhaval Ajmera: "I don't think there will be a debt-free thing because if we do debt free, then the growth will be sacrificed. And we do not want to sacrifice our growth, and we want to continue with the growth trajectory."

FY25 Financial Snapshot

Guidance & Commitments

Key Metrics