Ajmera Realty & Infra India Ltd Q4 FY2026 Concall Summary

Key Takeaways

• Record year, calibrated tone: FY26 sales surged 57% YoY to ₹1,701 crores, beating guidance, but management enters FY27 with a "highly calibrated approach" citing geopolitical caution that has pushed conversion timelines from 30-45 days to 40-60 days.
• Kanjurmarg is the elephant in the room: The mega land parcel's conversion from leasehold to freehold has slipped past two prior timelines, and the first project launch is now a vague H2 FY27 hope, contingent on approvals still in process.
• Launch pipeline is loaded but back-end loaded: ₹6,324 crores of planned FY27 launches include Wadala boutique offices (Q3), Borivali redevelopment (Q3), and Manhattan Phase 3, but Kanjurmarg, the largest piece, carries no firm date.
• Balance sheet strength is real and improving: Collections hit an all-time high of ₹1,103 crores (up 71% YoY), cost of debt improved to 11.15%, and debt-to-equity sits at 0.53x, though management guides it will rise to 1.0x to fund the launch pipeline.
• What to watch next quarter: Whether Kanjurmarg conversion approvals actually materialize in the "next quarter or so," whether the Versova luxury project (Vann) gains sales momentum beyond its soft launch weeks, and whether the ₹2,200 crore FY27 presales target looks credible once the Q1 run-rate is known.

Kanjurmarg: The Pivot That Keeps Slipping

• Conversion delay, and a strategy shift: Management previously said the project could launch on leasehold land, but reversed course after concluding that "customers feel more comfortable if the land is completely converted and it's a freehold land." The conversion application is submitted, regulatory issues are being resolved, and management hopes to resolve it "in the next quarter or so."
• Parallel work continues: A U.S.-based master planner has completed master planning, and construction of police housing (a regulatory requirement) has already started. Management is also in discussions with funds for an SPV-level tie-up to finance the conversion process, with "positive approvals almost on verge of tie-up."
• Launch ambition is grand, timeline is soft: The plan is to launch residential, commercial and retail towers together as "a landmark launch for Mumbai City." Once regulatory approvals are in place, management estimates 3-4 months to launch, and is "trying to see if official launch can happen towards end of this year or next financial year."
• Outright sale is on the table but not imminent: Offers are coming in for the 7-acre parcel, and management is "absolutely open" if an offer complements growth and development, but discussions have not narrowed to anything serious. No timeline or price was disclosed.

Dhaval Ajmera: "We can definitely launch this project in leasehold and there is no barring to this and definitely we can do. But as the overall customer mindset when it comes and when we feel that the customers feel more comfortable if the land is completely converted and it's a freehold land, and that is what we've got as a review from the market and that is why we are trying to first do the conversion and then launch the project."

FY26 Performance: The Numbers Behind the Record

• Sales and collections both hit all-time highs: Sales value of ₹1,701 crores (57% YoY) surpassed guidance, while collections of ₹1,103 crores (71% YoY) provided the liquidity to outperform leverage targets. Four new launches contributed ~82% of presales.
• Collection efficiency improved materially: Rose to 65% from 60% in FY25, a 5-percentage-point gain that directly strengthened the balance sheet.
• Realization and profitability transformed over five years: Since FY21, average realization scaled from ₹12,083 to ₹25,770 per sq ft, net profit grew 5.1x (38% CAGR), and debt-to-equity reduced from 1.13x to 0.53x.
• Cost of debt fell on improved credit profile: Weighted average cost improved to 11.15% from 12.20% in FY25.
• Project-level sell-through is healthy: Manhattan 1 ~90% sold, Greenfinity 94% sold, Iris ~88% sold, Marina 69% sold with first floor slab in progress. Manhattan 2, launched during the year, is ~48% sold.

FY27 Launch Pipeline & Revenue Visibility

• ₹6,324 crores of launches planned, but timing is concentrated in H2: Wadala boutique offices and Borivali redevelopment are both guided for Q3 FY27. Manhattan Phase 3 is also part of the FY27 launch slate. Kanjurmarg, the largest component, has no firm quarter.
• Revenue visibility stands at ₹10,432 crores: ₹4,108 crores from existing projects plus ₹6,324 crores from upcoming launches. Management expects this to support approximately 50% revenue growth over FY26.
• Estimated net cash flow of ~₹3,150 crores: Pre-tax cost debt from OC received and the ongoing portfolio, providing headroom for growth while managing leverage.
• Business development target of ₹1,500-1,800 crores: Existing dialogues on 2-3 projects are in progress, but management emphasized that the primary focus is getting existing projects launched and into execution.
• Manhattan pricing power is a deliberate strategy: Management expects to launch different towers at incremental rates of at least 10-15% year-on-year, citing the township's 6-7 acre podium, car-free design and amenities as differentiators that command a premium in the Wadala micro-market.

Dhaval Ajmera: "Our primary focus for FY27 will be centered squarely towards disciplined execution and financial prudence, though we maintain absolute confidence in market underlying structural demand, but we are moving with a highly calibrated approach."

Demand Environment & Sales Velocity

• Geopolitical caution, not structural weakness: Management attributed slower conversion timelines (pushed from 30-45 days to 40-60 days) to geopolitical uncertainty, not AI or any technology-driven shift. Inherent demand continues, but buyers are taking longer to decide.
• Luxury velocity is steady by design: The Versova project (Vann) launched at the very end of Q4 FY26, so only a few weeks of performance were captured. Management was explicit that this is a luxury micro-market where velocity will be steady, not a splurge, and that this was the strategy from day one. No specific sales figure was disclosed.
• Competition in Wadala is acknowledged but not seen as a threat: When asked whether Raymond's higher sales volume in the same micro-market constitutes steep competition, management pointed to its amenities advantage and noted that Manhattan 2 sold 40%+ in its launch phase, arguing that every launch in the area does well and that amenities drive better sales in sustenance mode.

Dhaval Ajmera: "People have become cautious with the current geopolitical scenario. It has got nothing to do with AI, but it is more with the current geopolitical scenario, people have become cautious and they are trying to analyze and assess and take their decisions accordingly."

Balance Sheet & Capital Management

• Leverage is low but guided to rise: Debt-to-equity sits at 0.53x, and management is guiding to 1.0x as it funds land conversion and an 8-project launch pipeline. However, the company is working toward SPV-level funding for Kanjurmarg, which would be more conservative than corporate-level debt.
• PPE increase explained, after an initial deflection: When asked about the jump in property, plant and equipment from ₹35 crores to ₹60-plus crores, management initially said "I'll park and clarify later," then later attributed it to Mivan slidings capitalized for multiple projects.
• Revenue recognition is project-specific: A project becomes eligible for revenue recognition at 25% completion and collections exceeding 10%, a threshold that will govern when the FY27 launch pipeline begins contributing to the P&L.
• EBITDA margin sustainability tied to execution: Management expressed confidence that margins are sustainable, pointing to the ₹6,300 crore launch pipeline and ₹1,400-plus crores of expected cash generation as the foundation.

Guidance & Commitments

Key Metrics