Summary
Ajmera Realty & Infra India Ltd. - Q3 FY26 Earnings Call Summary Thursday, January 29, 2026 4:00 PM
Event Participants
Executives 2 Dhaval Ajmera (Director - Corporate Affairs), Nitin Bavisi (CFO)
Analysts 4 Bharat Sheth, Dixit Doshi, Karthik Srinivas, Sameer Baisiwala
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Pre-sales Value | ₹603 crores | +100% YoY (Q3); 9M FY26 reached ₹1,431 crores (+72% YoY). |
| Sales Volume | 5.56 lakh sq. ft. | +36% YoY for 9M FY26; driven by new launches in Vikhroli and Wadala. |
| Collections | ₹333 crores | +100% YoY (Q3); highest-ever quarterly collection for the company. |
| Revenue | ₹664 crores | +11% YoY for 9M FY26; supported by consistent project execution. |
| EBITDA | ₹196 crores | Stable for 9M FY26; maintaining a margin of 30%. |
| PAT | ₹99 crores | Stable for 9M FY26; maintaining a margin of 15%. |
| Gross Debt | ₹754 crores | Debt/Equity ratio at 0.58x; average cost of debt stands at 11.59%. |
| Revenue Visibility | ₹5,600 crores | Includes ₹4,098 crores from existing inventory and ₹1,500 crores from pipeline. |
Geographic & Segment Commentary
- Wadala (Mumbai): Core flagship market with a revised master plan for the Boutique Office project, increasing FSI from 6 lakh to 16 lakh sq. ft. Execution of Manhattan Phase 1 is 89% sold, while Manhattan Phase 2 has achieved 40% sales following its recent launch.
- Central Suburbs (Vikhroli/Bhandup): “Ajmera Solis” in Vikhroli launched with 84% inventory sold within 60 hours, validating the asset-light strategy. Ajmera Vihara (Bhandup) and Greenfinity (Wadala) have reached over 79% sales as they approach finishing stages.
- Bangalore: Sustained momentum in the mid-micro market with Ajmera Iris (76% sold) and Ajmera Marina (68% sold). Focus remains on steady execution to capitalize on regional housing demand.
Company-Specific & Strategic Commentary
- Wadala Master Plan Revision: Strategic FSI unlocking increased projected GDV from ₹1,800 crores to ₹5,300 crores. Total Wadala micro-market value is now estimated at ₹16,000 crores to be unlocked over 4-5 years.
- Asset-Light Growth: Secured new business development projects worth ₹2,000 crores in Q3, focusing on redevelopment in Mumbai and Pune. Strategy aims for capital-efficient growth with a current 5x growth target.
- Launch Momentum: Achieved significant success at Ajmera Solis through brand strength, allowing for pricing 20-30% higher than immediate micro-market competitors.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Annual Sales | > ₹1,600 crores (FY26) | Management expects to “easily surpass” initial guidance due to 9M momentum. |
| Project Additions | ₹3,750 crores (FY26) | ₹2,000 crores achieved; remaining ₹1,750 crores targeted via advanced redevelopment talks. |
| Kanjurmarg Launch | Q4 FY26 / Q1 FY27 | Project is in the approval phase for CFO/Collector NOCs following Supreme Court clearance. |
| Wadala Commercial | Q1/Q2 FY27 | Launch of the expanded 16 lakh sq. ft. boutique office and retail project in phases. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory Delays | Kanjurmarg and Ghatkopar projects face timing risks due to complex multi-departmental approvals (MCGM, Collector, Revenue). Management notes these are routine but subject to administrative timelines. |
| Approval Bottlenecks | A surge in industry-wide applications following the EC ruling may strain regulatory capacity. Ajmera relies on its “established developer” status to navigate this competition. |
| Legal/Trust Issues | The Ghatkopar project is delayed by litigation involving the land-owning Trust and Charity Commissioner. Management expects resolution within 2-3 months. |
Q&A Highlights
Wadala Commercial Strategy
- Question: What is the cost and margin impact of the 1 million sq. ft. FSI increase in Wadala? (Dixit Doshi)
- Answer: Marginal FSI cost is ~₹4,000-5,000/sq. ft. under the 33(20)(B) PAP scheme. Land cost is effectively zero, and the upscale nature of the expanded project should improve overall margins (Dhaval Ajmera).
Kanjurmarg Progress
- Question: Why hasn’t the Environmental Clearance (EC) been applied for yet if the launch is targeted for Q4? (Dixit Doshi)
- Answer: EC application follows CFO approval, which was delayed by design complexities. However, on-site work for police housing (government liability) has already commenced (Dhaval Ajmera).
Sales Velocity
- Question: Is there a slowdown in Manhattan 2 sales compared to the launch phase? (Karthik Srinivas)
- Answer: Launch saw a 40% “spurt.” Current velocity is a deliberate stabilization at ~30 units/quarter as the company prioritizes price increases over pure volume (Dhaval Ajmera).
Business Development
- Question: Can the newly added ₹2,000 crore GDV projects in Mumbai and Pune be launched in FY27? (Dixit Doshi)
- Answer: Both are redevelopment projects (one SRA). Specific launch calendars will be provided during the FY27 guidance update in March (Nitin Bavisi).
Key Takeaway
Ajmera Realty delivered a robust performance in 9M FY26, achieving record sales of ₹1,431 crores and peak quarterly collections of ₹333 crores. The quarter was highlighted by the strategic expansion of the Wadala Boutique Office project, which tripled its GDV to ₹5,300 crores, and the rapid 84% absorption of the Ajmera Solis project. Despite administrative delays in Kanjurmarg and minor litigation in Ghatkopar, the company maintains a strong balance sheet with a 0.58x debt-to-equity ratio and a ₹5,600 crore revenue visibility. Management is shifting toward a “steady volume, disciplined pricing” model, moving away from rapid absorption toward margin preservation. Backed by a ₹16,000 crore potential in the Wadala micro-market and an aggressive asset-light redevelopment pipeline, the company is well-positioned to exceed its FY26 sales targets and scale significantly in FY27 as major projects like Kanjurmarg enter the sales phase.
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