Aditya Birla Real Estate Limited Q3 FY26 Earnings Call Summary

Summary

Aditya Birla Real Estate Limited - Q3 FY 2026 Earnings Call Summary Thursday, January 29, 2026, 11:00 a.m. IST

Event Participants

Executives 4 K.T. Jithendran (MD & CEO, Birla Estates), Keyur Shah (CFO, Birla Estates), R.K. Dalmia (MD, Aditya Birla Real Estate), Snehal Shah (CFO, Aditya Birla Real Estate)

Analysts 8 Akash Gupta, Amit Srivastava, Biplab, Dixit Doshi, Harsh Pathak, Jahnvi Shah, Karan Khanna, Rishith Shah, Tarang Agrawal

Financials & KPIs

Geographic & Segment Commentary

• NCR (Gurugram/Delhi): Achieved total sellout of Birla Pravaah (Sector 71, Gurugram) within 24 hours, generating over ₹1,850 crores in presales. Management is targeting a FY27 launch for the Delhi project (India Hume Pipe) pending approval resolutions.
• MMR (Mumbai/Thane): Birla Niyaara and Birla Evara lead sustenance momentum; however, Niyaara Tower C launch is delayed to H1 FY27 due to legal/approval complexities. Thane (Hindalco land) launch is prioritized for Q4 FY26 with an increased GDV of ₹2,700 crores.
• Pune & Bengaluru: Launched Birla Evam (Pune) with 35% inventory sold in one month; further phases (Punya) planned. Bengaluru sustenance sales were strong, leading to plans for a new phase launch at Birla Evara (₹1,600 crore GDV).

Company-Specific & Strategic Commentary

• Brand Strengthening: Elevated brand visibility by becoming the principal sponsor of Gujarat Titans in the IPL to target key growth markets.
• Safety & Sustainability: Achieved 58 million safe man-hours; Birla Niyaara received BREEAM Certification, the first project in India to meet this UK-based sustainability standard.
• Portfolio Diversification: Strategic shift towards high-value premium and luxury housing while maintaining a floor price of ₹9,000 per sq. ft. for new developments.
• Asset Divestment: The sale of the paper business (Century Pulp & Paper) to ITC is awaiting final MoEF approvals; proceeds are expected by the end of FY26 with minimal tax leakage due to MAT credits.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Launch Timelines & Delays

• Question: Given Niyaara Tower C is pushed to FY27, do you maintain the ₹8,000 crore FY26 guidance? (Karan Khanna)
• Answer: Yes, we remain optimistic due to strong Q4 launches in Thane, Pune, and Bengaluru. Tower C was delayed by a Supreme Court order requiring land extrication from the layout, but RERA for other Q4 projects is expected in February. (K.T. Jithendran)

Business Development Strategy

• Question: Why has there been no new BD this year, and can you hit the ₹15,000 crore target? (Akash Gupta)
• Answer: We refuse to take non-market risks; some deals failed due diligence late in the process. We are at advanced stages with several term sheets and expect to conclude ₹10,000+ crores by March 31. (K.T. Jithendran)

Commercial & Partner Strategy

• Question: What is the roadmap for the 1 million sq. ft. commercial development at Niyaara? (Harsh Pathak)
• Answer: We are progressing with design but are actively seeking a capital partner for commercial assets to manage the high capital intensity. We target ₹1,000 crores in annual rentals in 4-5 years. (K.T. Jithendran)

Cash Flow & Divestments

• Question: What is the status of the ITC deal for the paper business? (Harsh Pathak)
• Answer: CCI approval is secured; we are awaiting MoEF approval to transfer the lease. We expect the cash inflow before the end of FY26. (Snehal Shah)

Financials & Margins

• Question: What are the expected margins for the ₹70,000 crore GDV portfolio? (Tarang Agrawal)
• Answer: Standard margins are 25-30%, with owned land projects exceeding 40%. Most projects operate with negative working capital due to strong collections. (K.T. Jithendran/Keyur Shah)

Key Takeaway

Aditya Birla Real Estate delivered an exceptional Q3 FY26, headlined by a 276% YoY surge in presales to ₹2,536 crores, primarily fueled by the complete sellout of Birla Pravaah in Gurugram. Despite the strategic delay of the flagship Niyaara Tower C launch to H1 FY27 due to legal and approval complexities in Mumbai, management maintains its FY26 presales guidance of ₹8,000 crores, supported by a heavy Q4 launch pipeline in Thane, Pune, and Bengaluru. The company remains focused on a “prime micro-market” strategy, maintaining a healthy net debt of ₹3,500 crores (0.8x equity) and anticipating a significant cash liquidity event from the ITC paper business divestment by year-end. Looking forward, the firm is aggressively pursuing ₹10,000-15,000 crores in new business development to anchor its target of ₹15,000 crores in annual presales by FY28. Management’s conservative approach to land acquisition and focus on premium execution remains the cornerstone of their growth strategy in a robust Indian residential market.