Ajmera Realty & Infra India Ltd Q2 FY2026 Concall Summary

Key Takeaways

• Record quarterly bookings, guidance half-met in H1: Two late-September launches drove INR 828 crores of advanced sales, crossing 50% of the full-year target in just two quarters.
• Project mix compressed margins, recovery expected: EBITDA margin dipped as lower-margin redevelopment and Bangalore projects dominated revenue recognition; high-margin presales from Manhattan are yet to hit the P&L.
• Launch pipeline is the growth engine: Seven upcoming projects carry a combined GDV of INR 4,300 crores, with Vikhroli and Versova launches imminent; total visible pipeline across 15–16 projects stands at INR 8,000-odd crores GDV over three to four years.
• Balance sheet strengthening, overseas cash returning: Debt-to-equity fell to 0.55x and cost of debt dropped 24 bps to 11.51%; repatriation from UK and Bahrain has begun, with Bahrain proceeds expected in a couple of quarters.
• What to watch next quarter: Whether Vikhroli launches on time and at what pace, the trajectory of margin recovery as Manhattan revenue begins to flow through, and whether BMC election-related approval delays materialize.

Record Bookings & Launch Momentum

• Two landmark launches drove the quarter: Ajmera Manhattan 2 at Wadala and Thirty 3.15 in Bandra, with a combined GDV of INR 2,100-plus crores, both launched in the last days of September and met with what management called a great market response.
• Manhattan 2 sold 38% of inventory in under a month, which management attributes to community living openness and strong product-demand fit; this sets the stage for accelerated development of the remaining Wadala land parcel.
• Thirty 3.15 sold 5–6% of inventory in the final few days of September, a slower start but with only a few selling days in the quarter.
• Mature projects are naturally slowing: Manhattan Phase-1 is ~90% sold, Greenfinity ~74–75%, Vihara ~70%-odd; at that stage, limited flat choice slows the sales pace, with remaining units expected to sell over 6–12 months.
• H1 average realization jumped to INR 28,000/sq ft from INR 22,800/sq ft last year, driven by the project mix shift toward Manhattan (priced INR 30,000–32,000/sq ft); next quarter Vikhroli will be the volume driver at a lower price point.

Dhaval Ajmera: "We have about 38% of our inventory is already sold in less than a month of the launch. This clearly shows that community living openness, and when you give a great product and has a perfect demand and it also gives a great stage for accelerated development for the remaining Wadala land parcel."

Margin Dynamics & Project Mix

• EBITDA margin dipped in H1 because the revenue-recognizing projects were predominantly Bangalore projects (Lugaano, Florenza) and relatively low-margin redevelopment projects like Vihara and Eden.
• The margin mechanics by project type: Greenfield projects on historical land cost carry higher margins; redevelopment and slum rehabilitation projects carry lower margins. When a redevelopment project enters the income statement, margins compress.
• Recovery is booked but not yet recognized: High-margin presales from Manhattan and other launches are already contracted; upward margin traction is expected in coming quarters when those projects cross the 25% cost-completion threshold and enter the income statement.
• Revenue recognition threshold requires 25% completion on a cost-to-budget basis, critical construction permissions in place, and 10% collection achieved.

Launch Pipeline & Approvals

• Seven upcoming projects carry a combined GDV of INR 4,300 crores across 0.16 crore square feet of carpet area; management expressed high confidence in the bookings and construction run ahead.
• Vikhroli is the nearest launch: Approvals are in an advanced stage, with management expecting them in the next few days or weeks, after which the launch should start.
• Versova redevelopment has received NIC of approval; building breakdown should start in the next 20-odd days (by end of November 2025), with CC and RERA to follow as soon as possible.
• Kanjurmarg is working through collector and other requisite permissions; Fire NOCs are secured, and the EC application should be filed in November 2025. Leasehold-to-freehold conversion has been applied for but carries no fixed timeline.
• BMC elections are a known approval risk: Management expects 100% delay in the approval process once elections are announced and is pushing to secure all needed approvals beforehand; Kanjurmarg approvals specifically will not come before the election.
• Three to four new project additions are under discussion, targeting roughly INR 3,000-plus crores of revenue from two to three land parcels, pending regulatory clearances.

Dhaval Ajmera: "Yes, 100%, there will be. That is where we are pushing to get all our approvals, whatever for the project launches, which we need to do in place because once the BMC elections are announced and people will start getting busy, there will be delays coming in over there."

Ongoing Project Progress

• 533 homes delivered in H1 FY26; the full-year target is about 1,000 possessions, with the balance expected in the next six months.

Cash Flow & Balance Sheet

• Total debt stands at INR 690 crores, with a debt-to-equity ratio of 0.55x; weighted average cost of debt fell 24 bps to 11.51%, reflecting an enhanced credit profile.
• Total revenue visibility is INR 3,599 crores, comprising INR 1,582 crores of committed sales plus INR 2,000-plus crores of available inventory.
• Net cash flow pretax post debt from OC-received and ongoing projects is estimated at INR 1,526 crores, unlocking gradually over timelines ranging from a couple of quarters up to four years. Low-hanging fruit from completed projects (Prive, Eden, Nucleus inventory) should start unlocking within a couple of quarters.
• Overseas repatriation has begun: The UK investment (structured as loan plus equity) is being repatriated sequentially; Bahrain project exit has yielded a down payment, with the balance inventory (10,000-plus sq meters at an advanced stage of completion) expected to be monetized and repatriated in about a couple of quarters.

Market Context & Pricing

• Wadala land pricing is getting a benchmark lift: MMRDA's recent auction set a reserve price of roughly INR 10,000-odd per sq ft on FSI area; adding premiums and construction cost, management estimates the end product cannot sell below INR 45,000–50,000 per sq ft, which improves realization prospects for existing plots in that micro-market.
• Manhattan openness is a differentiator: The project sits on a 7-acre podium with roughly 80% openness and four buildings standing on it, a layout management believes drives buyer preference.

Dhaval Ajmera: "I do not think anyone is going to be able to sell below INR 45,000, INR 50,000."

Guidance & Commitments

Key Metrics