Aditya Birla Real Estate (NSE:ABREL) Q1 2026 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Aditya Birla Real Estate q one FY twenty seven earnings conference call hosted by Motya Roosevelt Financial Services Limited. As a reminder, all participant lines will be in a listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then 0 on your touch tone phone. Please note that this call is being recorded. I now hand the conference over to mister Harshpatak from Motilal Oswal. Thank you, and over to you, sir. Yes. Thanks, Shruti. Good morning, everyone. On behalf of Motilal Oswal financial services, I welcome you all to the one q f y twenty seven earnings conference call of Aditya Birla Real Estate. We thank the management for giving us the opportunity to host this con...

0:50 Call. From the management, we have with us today mister Ake Dalmia, MD, Aditya Real Estate, mister MD and CEO, Vidla Estates, and mister Keusha, CFO, Aditya Real Estate. I now hand over the call to the management for opening remarks. Over to you, gentlemen. Thank you, Harsh. Good morning, everyone, and thank you for joining us our Q1 twenty seven earning call. India continued to demonstrate strong macroeconomic momentum in the quarter ended June 26, building on the 7.6% real GDP growth recorded in FY twenty twenty fivetwenty twenty six, while inflation began to firm up with headline CPI rising to 4.38% in June 26, the broader economic environment remains supportive of sustained growth.

1:49 Our real estate sectors continue to benefit from this backdrop and even as the composition of investors meaningfully during the quarter. Despite external headwinds arising from geopolitical tensions, resilient domestic demand with steady investment activity continued to anchor India's growth outlook. From an industry perspective, the strongest demand growth remained concentrated in high value housing, employment led corridors, infrastructure driven micro markets. MMR continued to lead the market in terms of volumes, while sales moderated in Pune and NCR.

2:35 Bengaluru stood out, delivering healthy absorption alongside an increase in supply. The commercial real estate market continued its strong performance with the office segment recording its strongest quarterly gross leasing performance led by robust demand from global capability centers and flexible workspace operators. Overall, the sector's two key growth engines are now operating at distinctly different speeds. Residential demand is becoming increasingly selective with a greater emphasis on location, product quality and price discipline. While commercial office demands continue to reach new heights supported by structural occupier demand from global corporates.

3:25 Against this backdrop, we have sustained strong business momentum in Q1 FY 'twenty seven. Collection remained robust at INR713 crores, resisting 31% of Y o Y increase. Overall, crores in Q1 FY 'twenty six. This performance reflects strong collection efficiency, disciplined execution and continued customer confidence across our projects. Birla Taranya delivered an especially strong start. Within just first three months of receiving RADAR approval, the projects achieved booking value of over INR 1,000 crores.

4:10 The storm demonstrated strong customers acceptance of the most underlying demand. This performance further strengthens Birla's state presence in MMR market and validates our strategy of creating premium or fully designed residential community in high potential locations. Our sustained sales in Q1 FY 'twenty seven remained well diversified across Asia, demonstrating the depth of resilience in our portfolio. In MMR, Birla Karanya, in the Thane micro market and plotted development at Birla Mirza in Bhoisar together delivered a strong sustained booking value of INR150 crores following their respective launches in previous quarters.

4:59 Pune contributed INR 119 crore in booking value, supported by continued momentum at Birla Punya Phase II and Villa Ewam. In Bengaluru, the response of Birla's Remya Phase IV has been particularly increasing with 91% of the inventory launched within the last two quarters already sold. This strong absorption reinforce our confidence in Birla as a key growth market for the business. We also continue to strengthen our position in redevelopment segment. With the recent announcement of another redevelopment project in Washi, Navi, Mumbai carrying a potential GDV of approximately INR 2,600 crores.

5:49 With this addition, our total residential redevelopment portfolio has increased to approximately INR 4,300 crores. This represents another important step in scaling a business vertical that offers significant potential across high demand MMR micro market supported by trusted partnership and disciplined capital allocation. Our commitment to the core real estate business further strengthened by the successful completion of the divestment of Sensory Pulp and Paper to ITC. This transaction has enabled us to significantly reduce our net debt portion to nearly zero, materially strengthening our balance sheet and creating greater financial headroom to pursue a larger and more attractive business development pipeline, while maintaining our disciplined approach to capital allocation.

6:45 Safety remains a fundamental priority across our development. The achievement of 15,000,000 safe man hours at Birla Naira, a significant milestone and testament to our collective commitment of our teams, partners and workforce to building a culture where safety is nonnegotiable and always come first. As we look ahead, our priorities remain clear. Scale with discipline, execute with consistency and create developments that are defined by trust, quality and thoughtful design. We believe our strong brand, diversified portfolio, healthy balance sheet, a customer first approach position us well to deepen our projects across key markets and capture the opportunity ahead.

7:34 As we continue to grow, our focus will remain firmly on creating sustainable value, not just through the scale of our business, but through the quality of every development we deliver and the trust we build with our customers and stakeholders. Thank you. Now we will now open the floor for Q and A. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on your touch tone telephone. If you wish to remove yourself on the question queue, you may press star and 2. Participants are requested to be answered for asking a question. Ladies and gentlemen, please wait for a moment while the question queue is assembled. The first question is from the line of Karan Karna from ABREL Capital. Please proceed.

8:33 Yeah. Hi. Thanks for the opportunity, and congrats team on signing the Vaseer redevelopment project yesterday. A couple of questions from my side. Firstly, Katie, if you look at Slide four of the investor presentation, how should one read this? Absorption levels have stayed very healthy for the quarter even without much of launches at an industry level, implying healthy levels of sustaining sales. But if you look at your booking value of $3,300,000,000 it indicates sustaining sales have been relatively weaker. So what are your thoughts on this? And what else can be done to really push up sustaining sales as a company? And as a follow-up, what needs to happen for the presales trajectory to see a material growth from what we've seen in Q1 for the rest of FY 2027?

9:20 Morning, Karan. Thanks for your question. So we had about INR $3.27 crores of net sales. Actually, the gross sales was much higher. We had a few cancellations and a few terminations, so people are not paying up. And notably, a couple of them a couple or a little more of them have been from Birla Niara. So that is why there has been a kind of a dent in net sales. But I think otherwise, if you look at our performance in Pune in a couple of our both the projects in Pune and in Kane, Birla, Taranya and even in Bangalore, we have had a steady performance. So and also there has been price increases.

10:07 So I'm not really worried about that. We will pick up. Of course, there was no launches, so therefore, the numbers are a little muted, but this is largely tempered because of a few cancellations. But we observe let me assure you that these cancellations, we are booking at higher prices. For example, at Miara, had four cancellations, but two of them we have booked at much higher prices with at least about INR 4 crores more per apartment. And then just on yes, so just following up on this and when you said that your launches you had no launches during the quarter. If you look at Slide 17, which is 9,600 crores worth of launches that are planned for FY 2027, what's the current approval status for all these projects? And do you see a risk for slippage for any of these projects into FY 2028?

11:00 So largely, we're more or less on track. But most of the launches are planned for Q3 and Q4. So currently, we're on track for all these launches. Okay. And then second question, Katie, on now that you've received the proceeds of around INR 3,500 crores from the sale of pulp and paper and with the car redevelopment last quarter and now Vasi that you signed yesterday with revenue potential of around INR 2,600 crores, should we now view redevelopment and, you know, JV led projects as becoming a more important part of the life stage BD strategy. And when you look at, let's say, higher concentration of Mumbai, how are you looking at the market and the overall demand elasticity, let's say, over the next twelve to fourteen twelve to twenty four months, considering that most of the projects that are expected to be launched and most of the BD that you've seen so far is primarily in the MMR market?

11:56 Yes. So I the residential real estate market continues to demonstrate strong resilience. Housing sales across India's top cities has grown by more than 8% year on year, which is actually reversing the decline, which was witnessed last Q1 twenty twenty five. And more importantly, this growth is being led by premium housing, which is continuing to reflect a structural shift in buyer preferences rather than a mere cyclical demand. And so Mumbai whereas that Mumbai for premium housing. So I think the premium housing demand continues to be very stable, strong, growing both in price terms and volume terms. So we are pretty confident that we are betting on the right market. However, having said that, we are also looking very strongly into the NCR market, both Gurgaon and Noida, prime locations in these markets.

12:49 And also in Bangalore, very premium locations, we are strongly following up on our BD acquisitions in Bangalore and also into Pune at the right location. So I think it's more micro market less. There are certain micro markets in each of these cities, which are showing very strong growth trends, and we'll be focusing on those. Got it. This is helpful, Katie. I'll come back in the queue for any any follow-up. Thank you. Yeah. Thank you. The next question is from the line of Akash Gupta from Nomura. Please proceed. Hello. Hi. Am I audible? Yeah. Akash, you are. Yeah. Hi, sir. Congratulations on a a resilient performance.

13:35 My first question is with respect to margins for our redevelopment projects. Is this any different? Like, what margins are we looking at for these type of redevelopment projects? So Akash, we are looking at very premium location for these redevelopments. So our margins are as good as any other normal projects. Don't worry for that. We are in the region about 25 to 30%. Understood. The second question is on the cash that we have got from ITC. So is this any tax implication? What is the post tax cash inflow that we will get from this ITC? So Akash, Kehur here. We have received 3,325 crores, which is approximately 95% of the consideration amount.

14:29 The balance 5% will be subject to certain conditions subsequent and certain working capital adjustments, which had to be reviewed because it takes time for the working capital to be completed. So that's the balance, 5% to be received. Yes, there would be some there would be a tax outflow on that. That is the process of being worked out. So I'm not in a position to give you that number right now. But yes, this is what we have received so far. Understood. And sir, just from a launch strategy standpoint, we have just on the Nyara launch, what is the time line? Any thoughts on the kind of format that we are bringing?

15:18 Just thoughts on that, please. So Akash, as I mentioned, we are focusing on large formats, similar formats like what we did in in Silas, but slightly modified with fungible options, etcetera. There's a lot of people who are waiting for combined options, larger formats. So that has been decided, and we are moving ahead with the approvals. Hopefully, we should get Rira by end of Q2 and kind of launch this early Q3 or mid Q3. That's the current plan now. Understood. And any feedback on the initial demand for the product?

16:06 Yes. As I mentioned, Worley continues to be a very, very strong market. In the premium segment, it is really commanding good premiums. We have increased our prices for Silas and Tower A. Market continues to show strong demand. We have a strong pipeline, some of our existing customers and some other customers are waiting for larger formats, etcetera. So we're not worried about demand. It continues to be very healthy and strong. Got it. Thank you so much. Thank you. The next question is from the line of Amit Srivastava from three sixty one Capital.

16:54 Please proceed. Yeah. Thank you very much for the opportunity. Sir, my first question is on a medium term growth prospect for the free sales. FY 'twenty five, when we first hit the INR 8,000 crore pre sales, we have indicated that while annual guidance we may not be here, but over the medium term, the next two, three years, we'll reach towards INR 15,000 crore. But k four twenty six, we will have to 8,000 crore. And this year, looking at the business development and launches, we believe it could be in the similar range. So have we recalibrated our growth at 30 or timeline, or we are confident of achieving the INR 15,000 crore over the next two years' time frame? Amit, we are absolutely confident of our guidance and our long term guidance that we have given.

17:43 We are all aiming towards that. We are building up our BD pipeline and also showing up on our phased launches. And we are very, very confident that we will be able to achieve that. Okay. And, sir, in terms of... We were talking about last two quarters on our commercial real estate portfolio development plan. So can you update us what is the progress we have made so far or any timeline in terms of which project we would like to prioritize first and start and everything? So as I mentioned in my last interaction with you that we are planning to commence the commercial development from the Birla Nyara project itself, first of all, 1,300,000 square feet.

18:31 Our attempt the design is in planning stage and we are hoping to get the approvals and start commencement before the end of this financial year. I think a four year time is what we are looking at getting into the leasing stage. And given the current market conditions, I think it should be at least about an INR 800 crore annual leasing when it is fully stabilized. This project can be launched parallel to our Birla New Year of Phase three, so no problem on that side. Absolutely no, Shantan. This is commercial. We don't there's no we just take the approval and start building, start construction. Right. So what would be the CapEx kind of assumption on this? Like, there are 1,000,000 square feet?

19:20 CapEx? CapEx is not because land is not the only you have to pay for Yeah. So construction is spent basically if we look at. Yeah. That details are there that I can share you if there is too much. I mean, it's not something which is too big and if we have also options of going with a partner, with a private equity partner. So we are weighing all of those options. Yeah. Sure. Sure. The last question is in terms of construction spend. Last quarter, we have guided INR 4,000 crores in FY 'twenty seven, whereas we have already spent INR $4.40 crores in 1Q. So this would be in a similar, our same range of INR thousand crores for the FY '27 or it will escalate? And what will be collection guidance for FY '27?

20:08 So Amit, $4.37 includes construction cost of around INR $2.26 crores. Balance our other costs like approval costs, design costs. So overall, the construction cost is INR $2.26 crores for the current quarter. And yes, around INR 1,200 crores to INR 1,300 crores is with the overall construction cost for the current financial year. Okay. Sure, sir. And just some clarity on a Birla Nyara Phase two where the cancellation has happened, In a one quarter, we got four units which got canceled. So any specific reason for that? We had one cancellation in Tower A and three cancellations in Tower B. But two of them have already been booked in the last quarter, one we have again booked at this quarter.

20:59 So these happen, people are not paid out, they have struggled payment schedule, somebody has a debt in one's family, financial constraints, they want to continue, etcetera. The good news is that we have been booking it up much higher prices. The rebooking has been at much higher prices. At least every apartment we are sold at INR 4 crores more. So what is the correct ticket size, sir, for Omni Navarre? In the... In Tower Tower B,? Yeah. Yeah. Tower B. $40.40 crores. Okay. 40. Sure. Okay, sir. Thank you. Yeah. Thank you. The next question is from the line of from Capital. Please proceed. Yeah. Thanks for the opportunity.

21:46 Just a couple of questions. First, on the BD, I mean, just in in case you want to just indicate, you know, what sort of pipeline do we have right now in terms of advanced discussions and would be helpful if you can provide the split across cities as well. Yes, that's my first question. So our BD pipeline continues to be very strong. We have more than about what term sheets and advanced deals worth about more than INR 60,000 crores in the pipeline. These are reasonably split between MCR, Mumbai, Pune and Bangalore. Of course, because of the push on redevelopment, we have a slightly stronger pipeline in Mumbai.

22:36 So otherwise, we have even very strong proposals going on in the NCR market, Pune, Bangalore. So in all markets, focus remains equally strong. I think all these markets in the right micro markets, there is very strong demand for premium housing, and that's where we are focusing on. Sure. And any targets in terms of completions in next one or two quarters? Because probably that would set the tone for next year's growth. So out of the 60,000 crore, how much do you expect to compete in this quarter, next quarter? Quarterly things in BD is not possible.

23:22 Whenever we get the right deals, we will consummate it. For example, the deal that we concluded, Vashi had moved very quickly within about six months' time or less than six months' time, we could conclude it. There are deals which we are negotiating with the last couple of years also. So this is very difficult for us to really predict quarterly basis. On an annual basis, I've guided you in the range of about 10,000 to INR 15,000 crores is what we are aiming to do in this financial year. Got it. Got it. And with that, I mean, least you are confident that FY 'twenty eight, we will have a growth in terms of pre sales. At least we have reached that stage in terms of business development where we can be confident, slightly confident about next year's growth?

24:08 Yes. So I'm not currently commenting on next year. I'm confidently commenting on a three year plan. I think that's what I would rather like to tell you that INR 15,000 crore in three years' time is what I can guide you for. Sure. Got it. Fair enough. That's all from my side and all the best. Thank you. Okay. Thank you. The next question is from the line of Birla from MK Global. Please proceed. Good morning, everyone. Good morning, Katie. First question is on the cancellations in Yara. So can you give us some numbers? And if you exclude those cancellations, what would have been our gross sales this quarter?

24:56 Gross sales have been more than INR 700 crores, INR 700 crores plus. But there have been because of these cancellations, partly in Nyara, partly in Arika and some of the other projects, it is what it is, what we have stated here. But as I mentioned, both in these markets where almost our full inventory is sold, like in Arikara, I think these are more like a cleanup situation. People are not paid. So they have been either terminated and some of them are canceled. But I can but they are getting rebooked at higher prices. So these numbers will be reflected in the subsequent quarters? Yes, yes, yes, yes, yes, absolutely. So we don't have to worry or read between the lines that not all. Not at all.

25:42 At all. All these cancellations have been healthy. They only improve our cash flows and also our top line. Okay. Sir, coming to business development. So you have sir, also you had a decent pipeline. And, yes, you have closed two deals, but you have almost 60,000 core to GDP pipeline and similar kind of... If I'm not mistaken, you had a similar kind of pipeline. Like, how probable are you that you'll be able to do, say, 15... Probability. I'm talking $1,520,000 crore of GDV of business development this year. And what are the challenges you have been facing in business development? I mean, yes, that's second question.

26:31 Vipla, yes, I have mentioned 10,000 to 15,000. So I'm pretty confident that we'll be able to achieve that. No reason to believe any other way. As I've always mentioned, the challenges are the right pricing, right location to get the right product with the right title and prudent risk management prudently risk managed projects. So prices have gone up. It has to be in tune with the markets and our return expectations, etcetera. And also it has to be relatively risk free. So that challenges always remain. It's a question of the right opportunity coming at the right time. As I mentioned, we are chasing several opportunities. Some of them are high potential opportunities, but it takes a lot of patience to bring it to the right level.

27:25 So work is going on, on some of on cleaning up some of the challenges that we have faced. This has always happened in the past also. Somewhere it is competition over bidding all of that. So it's a mix of both, right, clarity, location, sizing, market demand, competitive bidding, it's a mix of all of that. So we will continue to pursue business development with full vigor, but with full risk management within our risk management framework. And I'm sure the opportunities will come. We have to be a little patient. One final question. Sir, I know cash has never been a problem when it comes to business development.

28:16 But still, any of the cash in your bank, it gives you lot of strength and confidence. And so, sir, would you see now still... Since we... Of course, this paper sales business and our focus is entered to invest in real estate. So would you see a strong uptick in business development, more so in outright purchase because you have significant amount of cash now? Yes. So we always have if you look at our entire portfolio, the bulk of the deals are outright only. There has been a decent share of joint ventures, but largely more than 50% is outright. So our focus will continue to be that just because we have surplus capital will not push us to be careless or rash in any way. It's very important that we become very careful because coming under pressure and putting capital in a slightly reckless way could be very detrimental for us in the long run.

29:22 So our framework of risk management will continue. And I'm sure when the right opportunity comes, we'll strike. Thank you, sir, and all the best. Thank you. Thank you. The next question is from the line of Jayapadhaq from. Please proceed. Yeah.. Yes, sir. First of all, congratulations for the new business development in. My first question is around that. So I think we have an affiliate partner in this project. So what would be the exact arrangement in this? And what is our economic interest in this project? So our economic interest is 90%.

30:08 10% goes to the partner. Partner has been responsible for handling the around 500 society members and dealing with them, executing the negotiations and agreements with them, managing the vacation of them, getting their existing structure demolished, barricading, rubbing and all of that, making the sites ready for us to move in and it's not clear and also helping tremendously in getting our municipal approvals. Okay. So what is the margins that we'll be getting on this project net net? Around 25% to 30% is what we so the very high margin, very high, very premium location, extreme with the creek view and all that, very, very premium from Vaishy point of view.

30:57 We expect to sell in the range of about 30,040 thousand per square foot. So therefore, it's a high margin project. And what is the exact situation in the project? When can we aim to launch this? Have we received We any additional are looking at a Q2 launch. Q2 of FY 'twenty eight? Yeah. Okay. Okay. Understood. And sir, my next question is on your cash flow statement on slide number 29. So there is this INR $2.82 crores of outflows towards land approval, capital outflows and deposits. What would this exactly be? So Harsh, we've made some land payment of around INR 125 crores out of that. And there is a net deposit outflow of INR 150 odd crores and there is some 7 odd crores of CapEx.

31:53 Now the deposit is a net number. We have also adjusted that some deposits from some of the projects. So that is the total summation of INR $2.83 crores. Understood. And this INR 150 crores of land outflow would be towards which project? So INR 125 crores land outflow is for the Khanna project, 125 crores. Deposit is INR 151 crores. So we've also given a earnest money deposit for land auction in Noida. So there is a deposit of that. Then we had to give a deposit for one of the redevelopment projects in Khar. And there has been an adjustment of the deposit given in some other projects. So the net deposit outflow is 151. Understood. Understood. Yeah. The... Those are the questions from my side. Thanks a lot.

32:44 Thank you. The next question is from the line of Jay Shah from ADT Securities. Please proceed. Hi, sir. Thank you for the opportunity. So I have on the new redevelopment that you have entered in. So what would be the carpet area for this? So our available area is about a million square feet. Okay. A million square feet. Yes. Yeah. Okay. It's a million square feet of available area. Yep. So around... Then... So that implies around $5,560,000 of post case you did. Right? On the carpet if if I... So so, like, versus the the carpet yield over there, which is around 35 to 40.

33:34 So how... What what are those, like, plans of launches? And how are you planning to sell here such Yes, think at a such a this is very premium locations, very, very premium locations. So largely, we'll be looking at large format, four bedroom sort of, I think, because a very high demand segment is very little supply there. There's absolutely not the most premium location in Washi. So I think we'll be largely looking at very you know, carpet areas of almost 2,500 sort there per unit. Okay. And this would be... And and the ABREL share for this would be?

34:25 What share? AB... So ABREL share. Share. Yeah. It's a ninety ten rev share. 90% to us. Okay. 92 ABREL. Okay. And Okay. So... And this would be, like, how many towers or, like, what will be the floor size over there? Yeah. So, I mean, design is in progress, but, typically, I think about three or four four towers... Four towers of free stay. Okay. Okay. Okay, Sharma. Yeah. Thank you. Thank you. The next question is from the line of Shukri from ISAT private limited. Please proceed. Good morning to the team. I have two questions. My first question to mister is, just want to understand the forward looking guidance.

35:17 What are the top two to three execution priorities you are focusing on in the next few quarters? And alongside that, what do you see as the biggest risk in demand shifts, the regulatory changes, or competitive pressure? And how are you preparing to mitigate them by strengthening the company position in the real estate development space? That's my first question. I'll ask my second question after this. Thank you. So execution, of course, you know, it's always been key priority. All of our projects, we give, you know, full priority in execution. Birla Niara, Tamaray is coming up for possession next year. So that, of course, is a high priority. We are handing over a few projects this year. Birla this year, notably being one. The focus is on handing over with the highest customer satisfaction on these projects, which we were handing over this year.

36:09 Now we are one of the phases we are handing over this year. Construction with full focus on highest level of safety and quality, timely delivery within budgets, managing the whole process remains our primary execution focus. Also, for projects which are in the phase of launching, which are finalized now, design, understanding the customer and putting all the factors into design, getting the design right, both in terms of construction cost optimization, customer requirements and also in terms of SSI optimization. And also make sure that it is fast construction friendly.

36:57 So all of these is the prime focus for our execution part. Does that answer your question, Subir? Yes. Thank you. Thank you. My second question to Mr. Shah is along the similar lines only. From a financial point of view, what key risks or challenges do you anticipate in the coming quarters? And what specific measures have been taken to manage margin, cash flow, and strengthen the balance sheet, especially in areas like borrowing costs, receivables, and compliance? Thank you. So as we mentioned earlier, our net debt is nearly zero now, and we have a good treasury, which we can use for business development and acquisitions.

37:47 We are in the process of repaying our short term debt as and when it comes up for repayment. That's on the balance sheet side. As Katy mentioned earlier, despite having significant cash balance, we will be disciplined in our approach in terms of business development and acquisitions. We are focusing a lot on our collections. We have almost a 98% collection efficiency. And wherever the collections are not coming on time, we are doing a termination. So I would like to use the word termination and not cancellation, because we don't want a customer outstanding. So we are very, very focused on our collections. As coming to the project deliverables or key parameters, we are always trying for making the project cash neutral. So whatever is our outgo in terms of land acquisition, launch, construction, our endeavor is to breakeven at the earliest so that our project is secured and thereafter we play on margin and that strategy has played out well in the past and we will continue to do that. So we are not going to change our strategy in terms of focus on net cash flow.

39:06 Thank you, and best wishes. Yeah. Thank you. Thank you. The next question is from the line of Mahesh from Whitestone Financial Services. Please proceed. Hello? Hi, Mahesh. Yeah. My question is on two two points. Mahesh, we cannot hear you. Your voice is very faint. Can you hear me now? Yes, it's better. Yes. So my question is on commercial property development side on Worli Land. So earlier in our earlier plan, we had around 65 lakh square feet of FSA, right? So out of this, we are planning 10 lakh square feet of commercial property, you said in the earlier question answer.

39:56 Is it right? You're right. About $1,300,000 is our allocation right now for commercial. We may change it, modify it later depending on how we see the demand. You also evaluating partnership with IFC or MUFG, whichever Yes. Institutional We haven't decided who yet, yes. Yes. And one more question was regarding Nyara 1 Nyara 2. How many flights are sold till date after this cancellation and all? One seventeen is the net. One seventeen. One eighteen. Sorry. One eighteen. One eighteen. Right. Perfect. Perfect, sir. Thank you very much. Yes. Thank you. The next question is on the line of Akash Gupta from Nomura. Please proceed. Yeah.

40:47 Hi. Am I audible? Yes, Akash. Hi, sir. Sir, again, just wanted to have your thoughts on business development. Frankly, Birla Estate has lagged years in business development over the last one and a half years. And these peers have also closed deals which are at fairly similar margins. Cash has never been a problem for us. So I just wanted to understand that why have we lagged on business development versus peers over the last one and a half years? Is there something different that we are looking for, or are we being, like, too conservative at the risk of growth? Just the thought process there. Yes.

41:32 So as I mentioned, Keele, there is no dearth of deals. We have a stable framework, which we have maintained. So our risk management framework has been pretty robust and strong, and we completely believe in that. And I think it is very essential in a cyclical industries where we don't know when the markets will change. The due diligence has to stand the test of time and cycles. And from that point of view, if you are challenging saying that we have been lagging for the 1.5 for the last one point five years, I would also like to point out, if you look at a larger framework, we have a pipeline over INR 70,000 crores of GDV, of which, of course, 2,000 is launched, but still we are 42,000 and we are adding prudently every year.

42:20 So I really don't want to pitch myself and say that I am lagging somebody in the last six months or one year or so. What we have to look at in a business like real estate is really long term. So in the long term, how are we adding value, how are we creating value and also minimizing value destruction. Sometimes when cycles go the other way, we have also ensured that there is not substantial value destruction. So all of that points are very important. And it's very much possible in real estate when cycles change that would be violent, volatile changes, which can take the entire company down. So we have been very careful and prudent from that point of view. If you're asking me, are we too conservative?

43:07 I don't think so. I think I would rather choose the word prudent. Thank you. The next question is from the line of from. Please proceed. Sir. You for giving this opportunity. So my... Most of the questions are answered. However, I have a few questions. So one thing was regarding the commercial real estate. I also wanted to understand, are we also looking at, you know, the redevelopment of Century Bhavan and Birla Centurion? Oh, Birla Centurion is a relatively new building. So Okay. So that will not go on the redevelopment?

43:56 Yes, yes. For surely not in the near future. There's a lot of, say, century of course, that's a very strong possibility. We are evaluating and looking at the possibility of that. Okay. So if we so on the commercial real estate that you mentioned in the earlier comment that you're looking to develop this year, what is going to get under redevelopment, not the Sensory Bhavan, is it? No. I was not talking about redevelopment. I was talking about building a... I mean, start commencing construction or development of a of a million square feet in Birla Niara, a completely new Okay. Okay. Completely new. So our older commercial real estate that we have, are we looking to redevelop those those buildings?

44:49 Not in the near future. We have two commercial buildings, Birla Aurora, Birla Centurion. Together, they're giving us roughly about a $142,150 crores of annual income. They're fully occupied, a 100% occupancy, and there is no reason. And these are not very old buildings. So we're not really looking at redevelopment of these buildings in the near future. The only possibility is Century Imhavan, which is a very old building. Okay. Okay. Yes. Otherwise, our current focus will be on constructing a new office building in the Birla The near Right. Yes, lot. Okay. And also, we're looking for other opportunities outside. We're looking at good opportunities, acquiring new lands for commercial development in Mumbai, NCR, all of these.

45:35 Understood. And so post the ITC money that we received, how much is the net debt? Our net debt, as I mentioned earlier, is virtually zero. Okay. So in that sense, we don't have much debt remaining. Prospect will remain because we have construction finance and long term entities, etcetera, which will cannot be paid off, but net debt is virtually zero. Okay. Understood. And, Katie, sir, I know I've heard a lot of people, you know, expressing their views and concerns on the BD, and I also have similar question on this line. You know, while I've heard you saying that, you know, we are not conservative, we are prudent, and I completely understand that.

46:20 And you also mentioned that, you know, there are various aspects that we that we look at, you know, whether it's the product, the right pricing. And I understand all of that, but I just wanted to understand the thought process, you know, that we as a group, you know, think of because 60,000 crore is is a big pipeline, you know, which is which is really commendable that we are working on that. But at the same time, you know, when we look at the numbers, you know, essentially, we've really not done anything in past one, one and a half year. And I think that's where, you know, other people on on this call also have some kind of, you know, questions regarding this. So I really want to understand, you know, out of so many parameters, what is that one thing? You know, something must be really stopping us in, you know, signing that, you know, deal. So I just want to understand your thought process, you know, because we all have 100% trust on you, on the company, and we are doing commendable commendable job on all aspects.

47:21 You know? But this is something which which is something which I think all of us are just, you know, waiting to have those those tie ups, and we are just waiting to, you know, to to have that thing. So just wanted to understand from you, you know, what is it that is the most concerning for us, you know, when we say a yes or a no for a for a for a BD. You know? Thank you for your confidence in us. Really appreciate that. There is no one thing. It's actually the one thing that I ask all of you is to have patience. That's only one thing I ask. We are on the pursuing several strong deals, and we are confident of closing them. But all these deals requires patience.

48:12 Some of them we have been negotiating for more than eighteen months, twenty four months. We're doing due diligence. It's not the commercials have been closed, but due diligence, all these any we all understand some land parcels are large, there are issues, land parcels may have litigations, some of them have NCLP. So most important for us is the right location, the right micro market, the right access, yes. And if it is a JDA, the right partner and understanding and building the trust and ensuring that the agreement is closed in the right way. So it's not just one factor, it's a combination of few factors, all of them have to come together. The only thing I can say is that financial resources is just not a constraint at all. We have plenty of that. The brand is strong. We have to make sure that the location that we get into is commensurate with the stature of the brand.

49:11 So that's all that at this point of time. I want to assure you. Okay. And so just one clarification, the INR 10,000 to INR 15,000 crore is this year's target is what we have internally. Right? Okay. Absolutely. Absolutely. Okay. Okay. Thank you, sir. Really appreciate this. Thanks. Thank you. The next question is from the line of from. Please proceed. Am I audible? Yeah. Yeah. You are, Kunal. Okay. So my first question is the is the is the Noida One Fifty Nine now completely out of picture? Yes, it is. Okay. And my second question is regarding Nyara Tower C.

49:59 So your presentation mentioned the total GDV and the scalability of that. It roughly translates to 269,000 rupees per square feet. So like is that a reasonable approximation for the launch price? So it's too early to talk about the launch price, but tentatively, it will be in the range of about INR 100,000 to INR 120,000 per square foot. So that means that the total GDV would be revised then? Because based on the presentation, it is... I'm talking on carpet. I'm talking on carpet area. This is some scalable area. So I think this is right. Okay. And my third question is regarding the position time line for Tower 1. So can you give us a, like a narrow down to a quarter when you expect the position for Tower 1?

50:54 Yes. So we are within the RADAR time lines of March 28, hopefully by '27, Q3, we should be ready to handover. But handover will take its time. Handover, people come in inspecting and all that. So it will be in that period only, Q4 twenty eighteen. Okay. And what margins do you expect for Tower one? Margins. Margins are very healthy. I mean, I don't want to disclose now, but it's all in the here, the margins are in the range of about 40%, 50%. 40% plus. Thank you. Thank you. The next question is from the line of Himanshu Zawedi, INV. Sir, please proceed. Yeah. Hi, Katie. Hi. Hi, Himancho.

51:40 So my particular question is about the NCR market. So how do you see the market in terms of the pricing and all that? Because what I feel is that the particular areas in the market, the prices are heated up quite a lot. And what is your view on the market also? Because there, find a lot of shortage of land from what I hear from the sources. Okay. I think NCR market has some fraud. But if you it's a combination. If you get the right pricing and the right sizing, as I always mentioned, backed by a strong brand and good location, I think you can do very well. We have three projects in Gurgaon, all three have done exceedingly well.

52:29 It has been our best performing market for us among all markets, Gurgaon. And I strongly believe in that market. But we'll be careful in choosing, what I mentioned, all the four factors here to get it right. And there have been very fantastic launches in the last quarter also by some of our real estate other companies. So I'm very excited by this market. Market has a fair share of investors, but I think given the organization, given the demand for larger apartments and the growth of wealth in that segment, there is I see very exciting potential for the premium housing in that market. Noida, of course, as you very rightly mentioned, there's absolutely no supply of land and the demand is huge.

53:16 The lack of quality players. So I think it's one market which I would love to get into. We are trying very hard, hoping that we succeed sooner than later. But I think that's also a very, very exciting market. And, KT, just to have your view, are we also participating in some of the options where there are huge land parcels available. Yeah. Because I think because of the total land, I think we have to participate and the best way to get land in Noida. Not just in Noida, we are also looking for opportunities to participate in Gurgaon. So I don't wanna compare with other companies, but just to understand, like, options, obviously, you are a bit for a very fair and a high price to get the land. Right?

54:06 But then we are just maybe falling a little bit short here and there for the huge land parcels. Right? Because one or two good deals and then we have two, you know, with the... We deal. Yeah. Yeah. So as within our, you know, framework, what we think is the right pricing, we will put our best foot forward. And just about the Century Bhavan one, Kt, there we are planning commercial or residential? Mean, largely, I think the location commands commercial presence, so that's what we would aim for. But we are weighing all options. So just asking because just two buildings away, the ABREL 360 residential one has done amazing. I know.

54:53 But this is part of the commercial complex. This is a smaller plot. So yes, so we are weighing all of that. Okay. And any news on the Prabhadri land, which we have a smaller parcel, which is a very significant No. Thing Not in the annual now. Not in the annual round. At a later date, right? Can't can't talk about it now. Okay. Thank you, Katie. That's all. Thank you. Thank you. That was the last question for today. I now hand the conference over to the management for the closing comments. Over to you, sir. Thank you. With a strengthened balance sheet and a resilient portfolio and continued customer confidence, we are well positioned to pursue the opportunities ahead.

55:44 Thank you everyone for your time attending today's call. We are truly excited for the time to come and look ahead to reach you again with lot of more news in our next call. Once again, thank you very much and appreciate your all time support and understanding for the success of our business. Thank you and have a good day. On behalf of Aditya Birla Real Estate, that concludes this conference. Thank you for joining us and you may now disconnect your lines.