Ganesh Housing (NSE:GANESHHOU) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Ganesh Housing Corporation Limited q two FY twenty seven earnings conference call hosted by Go India Advisors. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to mister Rajat Gupta from Go India Advisors. Thank you, and over to you, mister Gupta. Yeah. Thank you, Michelle. Good afternoon, everyone, and welcome to Ganesh Housing Limited earnings call to discuss the Q2 FY 'twenty seven results. We have on the call with us today, Mr. Anmol Patel, Full Time Director Mr. Rajendra Shah, Chief Financial Officer Mr. Neeraj Kalavatya, Vice President Finance and Mr. B. Ravi, Corporate and Financial Adviser.

0:59 We must remind you that the discussion on today's call may include certain forward looking statements and must be therefore viewed in conjunction with the risk that the company faces. I now request Mr. B. Ravi to take us through the company's business outlook and financial highlights, subsequent to which we'll open the floor for Q and A. Thank you, and over to you, sir. Thank you, Rajat, and good afternoon, everyone, and a warm welcome to Ganesh Housing Limited's Q2 FY 'twenty seven Earnings Call. You all must have seen the performance and the detailed presentation we uploaded on the site. First, let me take you through the results, and then we can talk about the other projects and various other interesting matters that which we would like to bring to your notice. Revenue for Q2 was INR 121 crores consisting all of Project Land sales.

1:49 EBITDA stood at INR 98 crores with an EBITDA margin of 80.7%. PTT was INR89 crores and PAT was INR67 crores with a PAT margin of 55.1% and an EPS of INR8.2. Let me put this in context to enable proper comparison both sequentially and Y o Y. Sequentially, the PAT rose 59% from INR 42 crores to INR 67 crores and the EBITDA margin recovered from 39.3% in Q1 of FY twenty twenty seven to 80.7%. While the EBITDA margins really have risen, I should explain that as I told you in July, Q1 carried a land with a high cost basis inherited through the 2020 amalgamation and a onetime tax charge on the sale of 191 Paltese land.

2:47 Q2 shows the business at its normal margin without that differentiation. And therefore, that path decrease increase what you see is due to that. On a year on year basis, the path and the revenues have fallen slightly. Q2 FY 'twenty six, as you know, was a high base with revenues of over crores and a PAT of INR108 crores. So as compared to that, Q2 of FY 'twenty seven has been slightly lower. But I would like to clarify that in our business, reported quarterly numbers depend on which project reaches completion. And under Ind AS 115, as you know, it can be only recognized on completion. For that matter, Malabar retreat is 87% complete, but we cannot recognize the revenue till it is completed, which will happen in Q4 of this year.

3:40 For the first half, revenue stood at about INR402 crores, EBITDA at INR208 crores and PAT at about INR109 crores. We expect a much different and better performance during H2 and hence our guidance, which we had given in Q1 this year for FY 'twenty seven of INR 1,000 crores to INR 1,200 crores revenue and INR 300 crores to INR $3.25 crores pad is reaffirmed. Now let me talk to you about the market environment quickly before I turn to the projects. Over the last three months, India's real estate market has been consolidating rather than retreating. In housing, Knight Frank's data for the month July to September quarter shows sales across the eight major cities at about 86,800 units, broadly flat year on year, while Analog's top seven city data shows sales up 3% to over just one lakh units with prices up at about 7%.

4:48 Supply, however, is running ahead of demand. Launches have now exceeded the sales for sixteen consecutive quarters on Knight Frank's count and Anurag says the launches rose 18% in the quarter and unsold inventory is up by 12%. Demand is also moving up the value curve. Homes above INR 1 crore are now 55% of the sales, while the affordable segment continues to shrink. Offices remain the strongest part of the market. Leasing held steadily at about 66,700,000,000 square feet in the first nine months of 2026 calendar. Global Capability Centers, that is DCC, took 41% of it, up from 37% a year ago, and flexible operators took another 24%.

5:41 That is precisely the occupier base to which we are leasing. The new factor is the cost of money. On the October 7, RBI as you know raised the repo rates by 25 basis points to 5.5. Its first increase since February 2023 and it also changed its plan to calibrated tightening. Home loan rates will not fall from here and that will be on stretched by buyers as well as on leveraged developers. Our balance sheet on the other hand is almost debt free. So a rate cycle that squeezes others gives us room to be selective. Ahmedabad as a city has held up better than most.

6:27 In the first nine months of 2026, the city recorded about 14,300 housing sales, up 2% and its best January to September performance since 2018, with launches of about 16,700 units also at a post 2018 high. Price appreciation has stayed measured with the weighted average up about 3.7% to INR 4,837 per square feet and homes about INR 1 crore, which are following the, you know, India trend now make up 27% of the sales against 24% a year ago. Knight Frank describes this as end user demand rather than speculation, and that matches what we see at our Malawar retreat project.

7:16 The caution is supply. Unsold inventory has risen slightly to around 38,700 units, and the city's quarter two sales has lended to about 8.2 quarters. And so we also remains India's most affordable large market with an EMI to income ratio of about 18%, which cushions buyers through the rate cycle. On offices, Ahmedabad leased about 1,300,000 square feet in the first nine months, up 7% with flexible workspace operators driving much of the growth. But new completions also rose to about 3,400,000 square feet and rental growth at three percent was the lowest of the eight markets.

8:05 We should be honest that in a market with such kind of a supply, pre leased Grade A space is what wins, and that is why we are having more than two thirds of our Tower one million minutees project left before rentals begin. This is the right place to be. The longer term case is cost. Industry estimates put occupancy costs in the Ahmedabad and Gibbs City corridor to 30% to 35% below the metro major metros. One recent study has ceased room for about 40 to 50 new GCCs and 4,000,000 to 6,000,000 square feet of grade A demand. And Gujarat GCC policy for twenty twenty five to thirty targets more than two fifty centers and investments above INR 10,000 crores.

9:00 On the infrastructure side, Metro Phase II was completed in January this year, linking Ahmedabad and Gandhinagar in Ghisiddhis. In June, the union cabinet approved the airport extension Phase IIa. And with two thousand and thirty Commonwealth Games, we are seeing reported plans to speed up Metrolinx towards the Southwest Ahmedabad Sports Arena at Abu Dhabi and towards Panhand. We will watch these closely because Abu Dhabi, as you know, is where our largest land parcel sits. On the ongoing projects, let me take you through that, starting with Tower 1 at Million Mines. When we spoke in July, I said that we are entering a phase where years of patient investment would begin to turn around into tangible opportunities.

9:50 Three months on, I can tell you that Million Minds has not has just stopped being a plan on paper. It is now a place that tenants are walking through, and that is the story of this quarter. As you know, it was inaugurated last quarter by our Honorable Union Minister Home Minister, and is now in its final stretch of quick out landscaping and beautification. In July, I told you that about 43% of the leasable area was covered by executed LOIs and at that about 60% was under active discussion. Today, 68.4% of the leasable carpet area of Tar 1 is let across 15 deals. And the quarter has just which we just went by was the strongest the building has seen.

10:41 What I find particularly encouraging is not only the pace, but the profile of the occupiers. In this quarter, we have executed new letter of intent with Airtel, with GANESH Software, a U. S.-based software company, with Flagler Health and AI health tech firm and with IBEST, an aerospace and defense software company. That is telecom, enterprise software, health tech, and aerospace space and defense all under one roof alongside the global capability centers, hybrid workspace providers and technology firms we spoke about earlier. It tells us that Million Minds is being chosen for what it offers.

11:27 The largest growth pace in the region of 42,000 square feet of carpet area, 100% power backup and a platinum rated green building, the first IGBC platinum IT building in Andhabad. The quality of income has improved as well. Core workings concentration is falling. The three operators, Dayveq, Inky Space and Opulence hold about 1.21 lakh square feet, which was around 36% of all space left a quarter ago, and now it's only 28.7. All three new deals are direct corporate tenants. The occupier base is the one the campus was built for. Airtel, Mintra, Vidham, Sears, Wallstech, Neurobia AI, Invixium, Congo Software, Flagr Health, iBaseT, technology products, IT services, professional services and now defense software and health AI. That is the composition of the tenants in million minds.

12:33 Of the 6.16 lakh square feet of leasable carpet, 4.21 lakh square feet is now let. The three deals signed this quarter add about 84,000 square feet at an average rent of 122.4 per square feet of carpet a month, and two of them landed on the upper floors at the highest rent the building has achieved. Rent have resulted every cohort from about 90 for leases signed in 2025 to about 115 in 2026 to above 122 this quarter. And now the building's average rental stands at INR 110 per square feet.

13:19 All three of these are direct corporate tenants, as I said, and this is likely to continue and we expect that 90% of it would be let out by March 27. The signed book gives us a contracted rent roll of about INR55.7 crores already. There are nine year leases with built in escalation and across those nine years, the average rent is about 29% above the first year rent, an uplift that is already contracted. What remains to be less, that is about 1.95 lakh square feet is concentrated in four contiguous upper floors, the only block in the building that can take a single large occupier. And we are deliberately holding it for one or two large transactions rather than letting it out in piecemeal.

14:12 To give you an understanding of the rentals, it's a balance, which is yet to be rent is let out even at just INR 120, which is where our recent deals have been, a fully let Tower 1 would earn about INR 84 crores a year. And our timeline, as I said, remains unchanged without progressing and we continue to expect lease to rentals to commence from Q4 of FY twenty twenty seven. Now turning on to the Malabar Retreat project, which has progressed very well, almost 87% of that is complete. Bookings now are almost 50% that is at 76 units and which is by 50% by units, but on a carpet area, it is 53%, up from 73 units, which we had told a couple of months back. Collections to date are INR 132 crore rupees and expected receivables booked and unbooked are INR305 crore.

15:13 It is priced at the top of the micro market without a single rupee of discounting. It is on course for possession information on fifteenth and of January twenty twenty seven with a BU expected mid February twenty twenty seven. It has got such inventory and attractive pricing in the ready building that no competitor in the belt can ever offer before 2029. Our two ongoing projects together carry an expected sales value of about INR1500 crores on a capitalized basis and our planned pipeline of roughly INR 20 8,800,000 square feet carries about INR 21,000 crores. Malabar Exoticar and Malabar Counties 3 are both fully booked and delivered, which is the history behind us. And this is the history which are launching new projects.

16:09 Now on to the new project, our next phase of million mines Phase two. With all the development which I've just told, the second tower, the plans of 6.6 lakh square feet of leasable carpet on roughly 14.5 lakh square feet of construction has been finalized and submitted for approval. We are targeting the Bumipujan, as we say, the inauguration for construction on or around Dev Diwali, which is 20, which is Q3 as promised before. Tower 2 is the same product as Tower 1 on the same campus built by the same precast contractors through the design, the construction method and the occupier proposition are all proven next door in Tower 1.

16:59 Within the same seventy meters height, it adds one more floor, giving it 7.5% more leasable area than Tower 1. We expect an eighteen to twenty four month build with a ready with a tower ready for fit outs between May and November 2028 and pre leasing opening from late twenty twenty seven. Our target rent is about 118 per square feet, which would mean INR 94 crores of annual rent at full occupancy. Together, the two towers would give us INR 170 crores and above a year of rental income. And these are only two of the seven offices based cases planned on the campus.

17:45 The residential project Phase one is on schedule and it's expected to be launched in Q4 of FY twenty twenty seven that is this year. Beyond these two projects as you know, the master plan for 64 acres, 1,000,000 mine is in place. It is planned for about 18,000,000 square feet across seven office spaces alongside residential, retail, hospitality and around 63,000 jobs at maturity. About half the campus is the processing zone, which carries the office phases launched in sequence. The other half carries the residential towers in phases, the first one starting next quarter, and a commercial pocket that brings together a mall of about 4.5 lakh square feet, a hotel and convention center of about five lakh square feet, and service departments built as one connected development, followed later by members clubhouse.

18:44 The offices and the commercial pockets are being built to be held as rental assets as the campus stabilizes. They give us the option for a REIT also. The residential phases on land, which we already own and have been fully paid for will generate the cash that funds out the build out. On the land front, our fully paid land reserves are now at five thirteen acres. That includes about four zero five acres at Gujarvi, about 65 acres at Billion Mines and the balanced parcels located in and around Ahmedabad. In addition, new parcels, including some exceptionally large ones are under negotiation and or under acquisition with partial payments already having been made.

19:39 And these are not included in the five thirteen acres I mentioned above. As a departure to the normal earning calls, I would like to add some more specific points. There were certain questions that were asked in the last call, so I would like to close the loop on those questions. Let me take them one by one. In July, several of you asked some questions first on the gross development value and cash flow disclosures, not just reported revenues. This quarter's presentation shows expected sales value and expected free cash flows across completed ongoing and planned projects. About INR2680 crores of sales value has been delivered with about INR840 crores of free cash flows generated.

20:26 Ongoing projects carry about INR1500 crores of sales value and INR600 crores of expected free cash flows. The planned pipeline carries about INR 21,000 crores of sales value and INR 12,500 crores of expected free cash flows. The second question was on million mines rental. I just described to the entire details of who all are there. The run rate at this was indicated at that time at INR 70 crores a year. The signed book, as I said, is around INR 56 crores and on fully let out would be INR 84 crores. That is 20% higher than we had initially estimated that is of INR70 crores. So now it is INR84 crores instead of INR70 crores. Third, you had asked about Gurdwaii.

21:13 The Township plant remains a mix of development, project development and the land sales. Given the infrastructure announcements I mentioned, we are carefully watching the timing and we remain on course to tell you our monetization plans towards the later part of this year. We have just highlighted all the developments which are happening in and around the space, which is the Southwest Andamba Sports Arena. All that has proven that our plan and strategy to wait for the developments in that area are all proving to be right. The fourth one also was the question was on FY 2028 guidance. I mentioned then, and I'd like to reiterate that the intention to put year on year guidance is still there. And therefore, the guidance for FY 'twenty eight would be there in the fourth quarter of FY 'twenty seven or the first quarter of FY 'twenty eight.

22:10 Hence, in entire things, we have answered those questions which you had were asked earlier, and we have given you the entire developments which have happened already and which are likely to happen in the near future. So thank you once again for the trust, and now it's open for question and Thank you very much, sir. Ladies and gentlemen, we will now begin with the question and answer session. Anyone who wishes to ask questions, may please press 1 on their touch tone phone. If you wish to withdraw yourself from the question queue, you may press 2. Participants are requested to use only handsets while asking a question. We will wait for a moment while the question queue attends. You may please press 1 to ask questions. The first question is from the line of Sahil from Ventura Securities.

23:08 Hello. Are you audible? Yes. You are. Yes. Fine. Yes. So... Yeah. So as per guidance, we need about 600 to 800 crores of revenue in h two. Where exactly does it come from? So from Malabar retreat, total booked plus unbooked is only about INR $4.37 crores and half of it is unsold. Then there would be hardly any rent in financial year '27 for now. So the rest must be coming from the land sales. And they'll ask and for the newly my second question is for the newly named tenants like Airtel Congo and others, where we have signed LOIs, where what are the lock in periods, rent free periods and the deposits in that? So I'll answer the first one. You are right, the numbers at this point in time, the way it looks, yes, it will be a large part of the income, which of the guidance is likely to come in Q2 Q3 and Q4.

24:08 Having said that, yes, the Malabar retreat is going to be the one likely big project size which we're going to be coming in. There would be other some things which we are already in the pipeline, which are likely to happen in q three, and we are confident that these sales also would come in Q3 or later expect Q4. And that's the reason why we have stood by the guidance which we have given earlier in spite of whatever sales we have registered in now. So at this point in time, I can say that, yes, there are certain developments on the project as well as on the land sales, which we also are terming as a part of our project because lands are a very integral part of our entire business plan. That is likely to come in these two quarters, and that's the reason why we'll be able to maintain the guidance which we've given earlier.

24:57 On the rentals, all of them are these leases are almost for nine to ten years with locking from their side for five years. Majority of them are all, like, lock in for five years and above. Okay. Thank you. Thank you. Participants who wishes to ask questions may please press star and 1 now. The next question is from the line of Nayan from Investopro. Please go ahead. Yeah. My question is on the Bodhabi 405 acres, what is the plan split between township plotted development and outright land sales? When will you announce the monetization plan?

25:45 Yeah. See, it's going to be... As I've just told in the speech, it's going to be a mix of everything. There will be a quarter development. There will be LANs, and there also will be project development. What what will come up when and in what proportion is something which we are yet to be... Yet working out, and it'll all depend upon various happenings, which is which is in in around that area. Gurdwaii and nearby areas are the most happening places at this point in time with all the infrastructure included... Including the sports infrastructure as well as the, you know, transport infrastructure being built towards that side. So though it is not final exactly what proportion it would be, we are sure that in the next six to six months or so, we did think that by September of this year, that is by '27, we'll be having more clarity, but there was certain announcement which were... Which the government had to do, which got delayed. So we believe that it will take another six months to really able to finalize very concrete plans for announcing monetization of that each of those portions of the land in Guravi.

26:56 Yes. My second question is for Malabar rate rate, why is velocity of bookings this low with no discounting? What is the plan for the unsold half after possession? Normally, happens is, see, this is 90% complete. And once the... It is up for... When the look and feel of that is seen by the people, there are more walk ins that which normally happen. But as I said, you know, the general trend at this point in time for the last three, four quarters across India and Ahmedabad, the only premium ones have been sold at least. Otherwise, it's been a lull period. So now we have started to see traction and the bookings that have happened much slower earlier has started to grow. Just to tell you, last four months, I think we would have had about 30 to 40 units sold, which was very small before that.

27:46 So I think the progress is good. It is not exactly the way it should have been given the fact the way, you know, the residential had developed two years back. But off late, it has been slow across India and across Ahmedabad also. And that's the reason why we see that the sales which are there almost 50% is also good enough. But we do believe from now onwards, the way people are walking in because that is the area again, which is the most happening in and around that. I think the sales would pick up very soon. We believe that we should be able to sell almost everything by March. It's not that, but at least go up to 75% of the sales. Like that? I'll just say, also, if you see the last quarter was a rainy season, where traditionally for under construction project, rainy season is always giving us lower booking.

28:38 So that is nothing malaky abnormal as compared to the under construction project. So again, the velocity will come back from the current quarter onwards. Okay. My last question is, where do you feel yourself in two years down the line in terms of growth? While the growth has been there, only this year there has been a lower growth than the last year, but otherwise the last four years we have been growing at 30%, 40%. We do believe with all the projects which we are having on ground executed all as well as being executed and the rental income is clearly flowing in, we should be going back to the growth levels. Having said that, as I said, let me first give the guidance for FY 'twenty eight in end of this year or first quarter of next year.

29:29 That will determine the growth thereafter also. We would like to take it one year from at every point in time. But looking through the last four years growth, I think we should be back to those kind of growth in a couple of years for sure. Yes. Thank you. Thank The next question is from the line of Rishabh Bora from AB Advisers. Please go ahead. Hello. Yes. Good afternoon, sir. Yes. So I was just wondering for the Q4 FY 'twenty seven launch of residential Phase one at Million Mines, What what is the size and expected pricing and GDV?

30:21 And what is the approval status currently? And and when when does the cash start funding the campus? See, this is roughly around nine lakh square feet of development with three PSK and largely the unit size and it will be roughly around 334 units of the project. And with two towers and expected timeline is again two to two point five years. And we are expecting a total GDV of 500 crore from this project. And second question from my side is for the special economic zone, what is the split between the SEZ and the non SEZ space left? And how important are the SEZ benefits to tenants' decision?

31:20 And beyond lower co working concentration, what is the credit profile of the tenant base basically? Yeah. I mentioned to you a whole list of the credit profile. It is... It... Across the different industries. The co working spaces are only about 20, 25% of three of them. And just just to tell you, in the co working spaces, IBM has come up. So if you... For me, it is IBM who is the ultimate tenant. Though we call it as a co working spaces. So those likes of IBM, the IT services like SARS, Invictim, IPSG, then we have talked about AI technology, Eurovia AI, then we have talked about health care technologies, like just like your health, then we talked about telecom, which is Airtel, As we... Then we are we are spoke...

32:10 Spoken about ecommerce, which is MIMITRA. Another IT services and IT's revenue life cycle management, which is Baltech and Conga Conga sub... Software. So I think it's a combination of various kinds of industries across the spectrum that we have got here. So Mhmm. Definitely, these are all the names which you would like to be hearing. And I'm sure in the end of that portion also, which is remaining, we shall see such kind of fractions. As I said, we have deliberately baked in for certain large deals. Once that happens, we shall announce those names exactly the way we have spoken about these names now. We also have vibrant good jobs coming up very soon. We have a very key few key meetings lined up during that period. We hope that around ten, Feb time will be a good time for us, and we'll be able to lease out the rest of the building.

33:02 Okay. Okay. Got it. Got it. So and my another question of mine is that over the next two years, you have stepped Tower 2 and the completion of Manawar Retreat, land payments on new parcels and the residential launch at Million Mines. How do you plan to fund all of this? What do you expect your peak debt to be? And at what point would you be uncomfortable with the leverage? Leverage, we have always said that we have been a near zero debt company for a long period of time. We would at that time also, we had mentioned that we would not sacrifice growth for leverage and therefore taking a bit of leverage to ensure that we can grow in our areas of designated areas of our own growth plan. We will take bit of leverage. However, that leverage will not be matching to any levels which we have ever taken before in terms of the ratios.

34:00 Having said that having said that, all the projects which we have now, the residential one especially, are all self funded in terms of bookings and the and the land are already having paid for long back. It's only the construction cost, which can easily be recovered from the bookings that we get. And Okay. The lease rentals are coming in. And apart from that, this land monetization as a part of our entire vertical of land monetization majorly and which of many of much of which has been already paid for and sitting in our books lead to entire cash flows coming into that. So a combination of all these things exactly the way we did it in for Tower 1, funded it entirely out of our own funding. The same way we can we have enough cash flows coming in to fund the other projects also.

34:47 Just to add, even the present lending what is there on the books is against lease rentals, which have been discounted. So our normal day to day cash flow is not impacted by... For servicing of that loan. Apart from this, there is a lease rental which is yet to be tied up. Even that can be explored for softer terms loan, long term loans. And this is the way we want to go ahead. And of course, we have a balanced portfolio of residential as well as commercial projects so that a profit which is generated from residential project in lower back in construction of commercial projects, which is generally back giving us back ended cash flow.

35:36 Okay. Okay. Basically, this is this is a scenario. Yeah. Okay. Okay. Got it. So I have another question. So your plans are submitted for approval, yet is three weeks away. The the eighteen to twenty four months will will to get out ready in May to November 2028 only works if construction starts now. So I was just wondering which approvals were outstanding and what was Tower One's original versus actual schedule. And why is Tower Two's target rent, which is 118 below Tower One's latest INR 122?

36:23 So first of all, we are conservative in our estimate. That's why we have estimated INR 180. It can be well within very much about 130,140 rupees a square feet. That is the way it is. And secondly, we are just doing groundbreaking and that Puja is for groundbreaking. For which Okay. No approvals are required. We are in the we are in the process of applying for approvals and all. So our day zero will start from from the day we receive Raja Jipti or construction construction Approval. Approval.

37:12 We we have in hand and we have appointed contractor to carry out all civil work, which is which is yet little far away from So see, having said all that, you know, the kind of construction timelines which we have followed before and maintained because of our kind of construction and including the precast will ensure that the finishing of this given... That's why it is a twenty four to twenty eight months. Right? So we do believe that that one capital investment will be enough to take care of the entire any delay in terms of starting of this project also. And we have already planned Phase two while constructing Phase one. So it is a much easier process from now. And this is exactly how we have planned that by the time our 75% leasing is near completion of Phase one, we should be starting Phase two. And we are exactly going as far as planned.

38:05 Okay. Okay. Okay. Understood. Well, that's it for me. Congratulations on this quarter, and thank you for the opportunity. Thank you. Thank you very much. Thank The next question is from the line of Ganjeet Shah from Monarch AIF. Please go ahead. Hi, sir. Firstly, thank you for the opportunity and congratulations on the results. So my question is on LIMITED. You leased about 70% of your tower one... Gimit, can you just speak from speak from receiver? Please use your handset.

38:51 Yeah. Am I audible now or not yet? Yeah. Yeah. It is. It is. I I think I'll... You go ahead. If we are not audible, we'll tell you again. But listen, it's fine. Better now. Yeah. Okay. Okay. So, sir, my question was on million mines. You've leased, I think, around 68 or 70% of Tower 1, if I'm not wrong, and you're holding on to the remaining approximately, I think, two lakhs square feet on your upper floors, I think, for, I think, one or two large tenants. Right? Correct. If I look at the micro market, which is Ahmedabad, know, they're basically... You've got around 3,000,000 square feet of office supply coming through, and rental growth basically has been the lowest among all the eight major markets. So my question typically was on strategy that since you're expecting 90% of the leasing by March 2027, which deals support this number? And how many of them are on those upper floors? How long are you willing to hold on to these floors for the large that single large tenant?

39:52 And what is the strategy if the tenant doesn't come in? I'll tell you. See, the question is not about holding on expecting someone. There are discussions going on with various people and these are all people who in quite a time, somebody takes one month, somebody takes half a month or somebody takes even two months to finalize the deal. But if there are large ones who are going to take a few floors, not just one floor, but maybe a couple of floors, then it is better to wait for that rather than give it away in a hurry to smaller people who are still in the pipeline. Because our objective was always to give slow plates, 46,000, 42,000 or 36,000 where there is a fire phase out. So that is the reason why we're looking to hold on for the negotiations that people with you are already talking to about.

40:42 And we believe that these negotiations will all get completed and we might get a few more fractions also and we will be able to complete the 90% lease by then. Okay. Understood. Thank you. That's it. Thank you. Thank you. We'll take the next question from the line of Ganat Shah from Wealth and Wealth Please go ahead. Afternoon. My question is Good afternoon. Has Malabar Good afternoon. From 83% to 87%. Yeah. Yeah. Am I audible? Yeah. Yeah. 87% between July and now. So about four percentage in the last few weeks, like, in in three months. So do do you position by January 15 or what you're saying?

41:29 And to get the view by mid Feb, you will need to finish the... Like like, what guidance can you give for the next ten weeks or so? And which activities are still pending? And how do you, like, wish to finalize the above? The the whole... The first chart the first For the any construction, I think there's a echo there. I don't know whether it's echo from my side or that. Mister Shah will have to mute his line when others are speaking. Yeah. Okay. Please do that, Ganag. So I'll tell you. See, the whole construction escrow normally is that, you know, that towards the first and the beginning takes a maximum time. Towards the later part of it, there are certain finishings done.

42:18 With... With till the time the entire finishing is completed, we can't say that it is, you know, that portion of the building is complete. But once it starts, then the time taken to finish that is much lesser. And that's the reason why the balance two months that we have today are more than sufficient to be able to complete the 13%. It's not because once the construction plastering is almost entire, the external plastering is done almost 90%. Plumbing and electrical connections, those things have been done at various places about I think 60, 70%. Painting has commenced on one tower, the other tower is to start. So looking to all that, the last few things which are to be done, they really take much lesser time than the initial twenty four months. So that's the reason why we are confident that we will be able to complete this project. And what is... EU is February 15, which are still about almost three and a half, four months away. I said soft position many a times for interior and all can begin earlier, and that's that's the date of 1510.

43:25 Right, sir. Thank you. So you expect that there'll be no slips in that. Right? The January should be met? January for the soft... You know, the... This thing handing over for interiors. February 15, mid Feb or something we are looking at for deal. That's we are confident of waiting as of now. Hope the government behaves along with us. As per per RADA, we have timelines which are available up to September 2027. And therefore, this is we will be we are hoping to complete this six months in advance. All right, sir. One last question, sir. In July, you said that 43% of Tower one was covered by and today, 86% is let, a jump of about 25 points.

44:15 Yet the deal signed this quarter added only about 84,000 square feet. How do these numbers reconcile? And are you counting the other ROIs and signed leases together? Can you report lease ROIs and under negotiation areas separately going forward in this regard? No, no. See, so let me get the numbers right. What I heard from you is, yes, it was 43% earlier. Now it is 68%, what we have said. So 43 to 68 is about 25% bookings. Right? So that is a lease which we have signed. So that values with those numbers that we have said. What we mentioned specifically was the last quarter, this was a main scale additions which have happened.

45:00 The large deals and large big names that we have spoken about. And that is it. Now together of that and plus something which was being under discussion at that point in time was 60%. So 43 plus 17 was under discussion. Now all the discussions have led to actual signing of deals. So now we are only reporting that which was already completed, which is around 67... 68. The balance is yet to be done, which is those negotiations with the large ones, which we had shared a while ago. I hope I have made myself clear. I hope I have made myself clear. Right. Thank you and all the best. Thank you very much. Thank you, GANESH. Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management for closing comments. Thank you and over to you, sir.

45:50 Thank you for such an engaging conversation on the call. Let me summarize where we stand. Our largest commercial asset is more than twothree let, as I just said, with rents rising and a few months from complete rentals. Our residential project is 87%, almost 90% built, half booked already. Our land bank is growing to has already grown to five thirteen acres fully paid and still continuing to grow. Our new projects are on schedule to be launched and we have given complete details thereof. Our balance sheet carries little debt, but at the best rates of interest and in a quarter where interest rates have started to rise and the market around us, especially the premium end user segment is behaving the way we expected.

46:38 Therefore, our priorities, which we are told earlier in July, remain the same timely delivery, a strong annuity platform through million mines, disciplined capital allocation and selective land acquisition. In the coming months, you should expect three milestones from us. Phase two of Gumipojan on the November 24, the first rentals from Phase one in Q4, phase one of residential in million mines, and lastly, an update on the Gothavi plant. Thank you, and we will see you again. Good day. Thank you, sir. Thank you, members of the management. Ladies and gentlemen, on behalf of Go India advisers, that concludes this conference. We thank you for joining us, and you may now disconnect your lines.

47:24 Thank you.