Morning, everyone, and a very warm welcome to you all. My name is Hena Khatri from Valorem Advisors.

We represent the investor relations of Ashiana Housing Limited. On behalf of the company, I would like to thank you all for participating in the company's earnings conference call for the fourth quarter and the financial year 2026.

Before we begin, let me mention a short cautionary statement. Some of the statements made in today's earnings call may be forward-looking in nature.

Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated. Such statements are based on management's belief as well as assumptions made by and information currently available to management.

Audiences are cautioned not to place any undue reliance on these forward-looking statements and making any investment decisions. The purpose of today's earnings call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review.

Now let me introduce you to the management participating with us in today's earnings call and hand it over to them for opening remarks. We have with us Mr.

Varun Gupta, Whole-Time Director, and Mr. Vikash Dugar, Chief Financial Officer.

Without any delay, I request Mr. Vikash Dugar to start with his opening remarks.

Thank you, and over to you, sir.

Thank you. Good morning to everyone, and a warm welcome to all of you for joining our earnings conference call for the fourth quarter and the financial year 2026.

The Indian real estate sector witnessed strong momentum during FY26 supported by resilient residential demand, premiumization trends, and increasing preference for branded and organized developers. Industry consolidation continued to benefit financially disciplined players with strong execution capabilities and established market positioning.

The senior living segment also continued to gain traction driven by changing demographics, rising urbanization, and increasing preference for community-based living among senior citizens. With limited organized supply and rising awareness, the segment offers a strong long-term growth opportunity for developers focused on this category.

FY26 was a landmark year for the company driven by strong demand momentum, healthy launches, robust execution, and disciplined business development across key markets. I'll first take you through the operational highlights for the quarter and the full year, followed by financial performance.

Starting with operational performance for the quarter, the value of area booked stood at ₹1,290 crores reflecting strong growth of over 225% sequentially and 124% year-on-year growth. The performance was primarily driven by successful launch of Ashiana Aaroham Phase 1 and Phase 2 in Gurugram, which contributed booking value of around ₹800 ₹803 crores at launch.

Average realization during the quarter improved significantly to ₹11,566 per square foot, up 71% year-on-year largely driven by higher realizations from the Gurugram launch. Execution momentum also remained strong with equivalent area constructed at 6.65 lakh square foot, increasing around 60% year-on-year and remaining broadly in line with committed timelines.

The company also maintained healthy cash flow generation with pre-tax operating cash flow of ₹167 crores during the quarter, up around 7% year-on-year. In terms of business development, the company further strengthened its senior living portfolio during the quarter through acquisition of 8.83 acres of land in Raigad, Maharashtra with estimated sales potential of around ₹450 crores.

Additionally, the company entered into an agreement for another land parcel in Panvel, Maharashtra with estimated sales potential of around ₹1,000 crores. Moving to full-year operational performance, FY26 was one of the strongest years in the company's history.

The company achieved its highest-ever booking value of ₹2,421 crores reflecting growth of 25% year-on-year. The senior living segment also delivered record bookings of ₹570 crores during the year, registering growth of around 55% year-on-year and reflecting sustained demand momentum in the category.

Execution remained robust throughout FY26 with EAC increasing 30% year-on-year to 26.19 lakh square foot in line with project commitments and execution schedules. Customer collections reached an all-time high of ₹1,762 crores during the year supported by timely execution, successful launches, and strong collection efficiency.

The company also maintained strong launch momentum across Jaipur, Bhiwadi, Gurugram, Chennai, Pune, Jamshedpur, further strengthening its project pipeline and market presence. The company expanded its senior living portfolio through strategic land acquisitions in Chennai and Maharashtra, adding development potential of over 26 lakh square foot with estimated sales potential of around ₹3,200 crores.

In addition, Ashiana Aaroham Gurugram received funding support from IFC through allotment of ₹100 crores of listed, unsecured, redeemable NCDs. During the year, the company also settled a long-term dispute relating to project Maitri, Kolkata and received ₹18.5 crores as F&F against the security deposit and related expenses incurred.

Coming to the financial performance, total income for the quarter stood at ₹335 crores registering growth of around 46% year-on-year, primarily driven by handovers across projects in Jaipur, Pune, and Chennai. EBITDA for quarter stood at ₹35 crores registering growth of around 19% year-on-year while EBITDA margin was at 10.43%.

PAT stood at ₹21 crores remaining broadly stable on a year-on-year basis with margin around 6.26%. For the full year FY26, total income increased to ₹1,187 crores, more than doubling compared to FY25 in the wake of higher deliveries.

EBITDA stood at ₹176 crores registering growth of 281% year-on-year while EBITDA margin at 14.85%. PAT for FY26 stood at ₹118 crores compared to ₹18 crores in FY25 while PAT margin improved to 9.93%.

Further, pre-tax operating cash flow for FY26 stood at ₹577 crores, which also was highest ever, registering growth of 34% year-on-year reflecting strong sales momentum and healthy collections. Overall, FY26 was characterized by strong operational execution, robust demand across segments, disciplined expansion in the senior living business, healthy cash flow generation, and significant improvement in profitability, positioning the company well for sustained long-term growth.

With this, I would like to open the floor for Q&A session. Thank you.

Morning to the team. I have two questions.

My first question to Mr. Gupta is, what type of strategic levers are you prioritizing in FY26-27 to expand Ashiana's residential housing footprint across Tier 2 and Tier 3 cities and to strengthen customer engagement in senior living projects, and manage risks from regulatory changes and construction costs inflation?

That's my first question. I'll ask the second question after this.

Thank you.

Hi, Sucrit. I see sort of three questions in there.

I will take the last part first with respect to construction cost and regulatory compliance. On the construction cost piece, inflationary increases will be impacting costs going forward.

I don't think there is much to say. With inflation increasing in wholesale prices, we hope that some of those might cool down if geopolitical situations improve.

That said, I think the price points that we have been able to achieve in our projects leaves sufficient room that even if costs increase, our margins will actually continue to improve on the reported basis because we've been able to lock in good prices on those projects with relatively low land costs, I think. That has kept margins in check.

The other thing on construction is the faster we execute, lesser inflation hurts us. Fortunately, last year was a good year where we improved execution by 30% year-on-year, and we have less to execute going forward in terms of deliveries in what is locked as compared to we would have if construction would have been poorer in the year.

I think that's one way to really hedge against inflation. Regulatory risk in this business is part of the business.

The way to ensure that is we are disciplined, compliant, don't overstretch ourselves, and building that into the DNA as we move along, improving our processes for compliance, improving our systems for compliance, that more and more of that becomes more formalized in the company, and we've been doing that. Second, on the senior living piece around what we intend to do, I think the senior living piece we are intending to grow across markets.

We have picked up five projects that we need to launch in the next 12 to 24 months having a GDV of more than ₹6,500 crores in those five projects across Chennai, Bangalore, and the Bombay-Pune region that we have. We look for more projects in the NCR region.

We are looking for more in Chennai and Bangalore as well and the Bombay-Pune region as we speak. What we plan to do is have senior living at multiple price points where we straddle a larger variety of price points catering to different socio-economic category of customers with different projects.

On the Tier 2, 3 on premium homes, I don't think we intend to do more new cities of Tier 2, 3. We will continue to do work in the existing markets of Jaipur, Bhiwadi, and Jamshedpur, whereby Bhiwadi to us is really an extended part of NCR.

If you consider Kalyan to be a part of Bombay from MMR market, Bhiwadi is effectively an NCR market. In Jamshedpur and in Jaipur, we'll continue to keep looking for JVs and executing as we've been doing earlier.

Then my second question—

Sorry, go ahead, Sucrit, please.

No, you pretty much answered all the questions. My second question to Mr.

Dugar is, what type of capital allocation and risk management framework have been applied in '26-27 to balance working capital requirements with funding for new housing projects, any hedge against interest rate and raw material volatility, and any buffers put into place to sustain liquidity for long-term cycle in real estate development? Thank you.

Sucrit, Varun here again. Vikash ji and I looked at it.

We don't look at capital allocation from such a complicated perspective at all. I think Vikash ji has put together a very robust capital allocation framework in two things: in one, location-level measurement of our returns to make sure that our capital [snort] [snort] is performing.

Also when we are allocating capital, we look to not landbank, launch our projects within as quickly as we can by going for making our design, going for approvals, and launching so we're not landbanking. That's not something.

The second bit is to make sure that construction is mostly financed from customer advances, we don't have really interests to work with or liabilities to handle on that nature, and also go through a project within a 5 to 6-year framework once it's launched. If you do that, I think we are more or less okay.

Just to add to what Varun ji mentioned, I think we we always chase profitable growth, the ROE remains the single most and the strongest metric basis which we and of course the GP margin, roughly 30% that we have talked about in the past, remains the single most critical metric basis which we evaluate the project economics. Basis that only we look at allocating capital, and we have spoken about this.

We are allocating more and more capital towards the senior living segment. We want to increase that segment of the business more and more.

Coming back on working capital thing, I think we have got strong momentum going as far as generation of operational cash flows are concerned, and so most of the working capital requirements are being met through our customer advances. Any need-based requirement, if at all it arises, then we go for construction funding.

We are pretty well-placed as far as working capital management is concerned.

Thank you. Thank you, and best wishes.

Thank you, Sucrit.

Hello. Good morning, Varun ji, Vikash ji.

One question I think I've asked this often time, and I think I continue to ask this. Sir, if I look at your presentation on page 26, we have this land available, right, which is now we've been selling around 2.5 million square feet every year.

Jo bacha hai land, that is pretty much 25, 26 million square 25 lakh square feet if I look at. Of course, I know that you have ongoing phases and existing projects as well.

Just from the continuing the growth perspective, and I think there were a lot CPs and all going on for the land that we had initially signed up. If you can maybe talk a bit about that because I think next 2, 3 years, the next phases will all get over, and given land buying is a very long-term kind of a thing.

How do we think about that?

Thank you, Rohit, for pointing that out. Two things.

Along with that 26-odd lakh square foot that we have on page 26, excluding Milakpur in that and rightly so, we have another 40 lakh square foot which is of ongoing phases, which is 66. What is also not included in this deck is in April we signed up another 2 million square foot in the Mumbai-Pune near our Ashiana Amod project in Vadgaon.

That adds another 20 lakh square foot, so that takes it to 86. Then there is another project of about 11 lakh square foot in Bangalore which we have sort of done title diligence, done MOU, and there were some CPs for the landlord to do.

On that, there's been progress on the CP movement. The CP that needed to be resolved, the tricky issue of the CP is been resolved.

There is only procedural matters left in it. I think maybe another couple of months for that to get resolved, and then we will execute the definitive documents.

In my head, I consider now that project very much 99% likely. With that, I think we get to about 96 lakh square foot in total, which is about four times of our annual throughput right now.

Four times is just enough to sort of maintain the annual capacity. We will need to improve this by adding more this year, and we are targeting to add more lands this year.

I think the senior living pieces is where we will continue to focus and add more opportunities. As I've already mentioned earlier, in senior living, we see land opportunities, we see places where we can find viability.

We are in active discussions in multiple places and hopefully will add more and get that going.

Okay. That's good to hear, sir.

I hope the Bangalore project sort of also gets you a new geography, which will really help us in the coming years. The other question was, sir, now next 2, 3 years, we will probably report very decent profits the next 2, 3 years given all the deliveries will now be reported in the numbers.

Any broad thought process in terms of how much will you sort of look at from a land point of view, let's say that is your CapEx, how much is that CapEx and how much are you sort of going to keep, any other things, let's say, buyback or anything else?

Broadly— Because

it will be a substantial amount.

It will be a substantial amount. Right now, the thought is deploy as much as we can in growing the business rather than returning back capital to shareholders either by form of buyback or dividends.

That's the intent as of now. As I said, the senior living is a place where I think we'll deploy a bulk of this capital, and we will like to keep some otherwise also available for opportunistic things as I said.

If let's say in Gurgaon, I think we are quite confident that we'll be able to build a decent brand and a good brand with premium pricing when we deliver our projects. We have gotten to, let's say, where we are in the bottom of the top tier of brands in Gurgaon.

We want to get into a higher tier there for the product we are in. As we deliver our product, we think we'll be able to get pricing.

When that starts to happen, I would like to have the opportunity of doing large transactions in these large markets. We would like to keep cash on the books for that as well.

Given sort of that thought, I think it's not something that we'll do large buybacks or large dividends. Dividends will remain on absolute terms will grow.

Per se they will not grow. Capital allocation will be focused on growing the business if that's the way to—

No, I absolutely endorse that, and I think that's the right way to do it. Sir, just one question

Fair enough. Sure.

Thank you, Rohit.

Hello, sir. Thank you for the opportunity.

My question is with respect to the recent announcement that we made on Mahindra World City that we decided to terminate the lease. Can you please explain why did we not go ahead with this?

Yeah. Hi, Ishita.

The Mahindra World was a subject to some conditions precedent that Mahindra World City in Jaipur had to get done. They needed to get their social infrastructure layout approved so that they could carve out the residential parcels that they wanted to sort of sell to other developers.

Unfortunately, it took, I think, over 18 months we were with them. They were not able to get those approvals due to, I would say, exigencies outside of their control as well given the situation on approvals there.

Since they were not able to get those approvals, we were not able to go ahead with the transaction. We thought since there was not enough timelines also, visible timelines on approvals, we thought it was better to sort of right now terminate the lease with an agreement sort of with a view that in case that happens in the future, we can always restart discussions with them given that we enjoy very good relationships already.

We have done two transactions with them in Chennai prior to this in addition.

Okay. In the presentation on page number 26, the title is Land Available for Future Development, which shows 22.7 acres of Aranya project, MWC, Chennai.

This is different from the one that is got canceled?

Yes, this is different from what just canceled. The one that got canceled was for Jaipur.

Mahindra has two of these World Cities, one in Jaipur and two in and one in Chennai. We have done one transaction already in Chennai which is going on, which is a project called Ashiana Vatsalya.

Aranya is right next to Vatsalya, and that transaction is fully concluded. We are in the land to launch phase that we call within the company.

That is ongoing.

Okay. Thank you so much.

Yeah.

Thank you.

Hello, sir. Am I audible?

Yes, Sinclair.

Sir, so as senior living projects grow across India and people get more familiar with senior living, so as competitors will also increase, right, then how is Ashiana planning to differentiate its service from other competitors?

Sinclair, Vikash here. I think senior living the way we look at it is more of a structural story the way it is unfolding gradually which is gaining more and more acceptability among the senior urban living population of the country.

I think that's where the opportunity lies. That is, more and more players participate, I think the size of the industry grows rather than thinking it through a lens that more and more competition will arise.

I think more and more serious players join in, I think the industry overall the size will increase, it will gain, and players like us or for that matter any other serious player will also stand to gain. That's the way we look at it.

I add that further, Sinclair, that we enjoy a very good brand equity. Have a track record of delivery.

I think people when they're buying off-plan, their confidence on the brand and its capability to deliver not only the ready product, but also the capability to operate and maintain and manage the development later on. We have that.

Right now also, outside of a couple of developers, we are not seeing very large-scale developments the kind we do with the amount of amenities, the quality of amenities that we are doing. The size generally is not prevalent.

More is prevalent to do 2 acres, 3 acres, 4-acre developments, which by nature of land size, the amenities get comparatively lesser than, let's say, a 12, 15-acre project. I think that is also something I would just bring to light that the kind of projects we are doing, right now nobody else is doing because you have to commit a lot more capital and take a lot more risk.

Where we have sort of now figured out what to do, we are more and more comfortable of doing larger projects therefore.

Got it. Sir, and one more question is how do you all see this war affecting people's prospective buyer for buying houses currently?

Sinclair, very difficult to comment. I think we have no capabilities to analyze impact of such geopolitical situations and say what will happen in the future.

We just look at what is happening today and anything else we see which is more factual and structural. What impact of the war, I don't know.

What I can definitely say though, from a senior living perspective, and one of the reasons why we are shifting more and more our business towards senior living, aging in India and increasing financially independent seniors in India is a fact and given. Okay?

That's just how demographic profile is. People are living longer.

Health is better. Fertility rates are lower.

Financial savings have increased. Seniors who retire now will have wealth rather than financial dependence on the next generation.

All of this is sort of clear and a fact today. It's a fact today, and that's what we are relying on.

We are no capabilities to say what the current geopolitical situations or any future geopolitical situation the impact that will have on our business. We'll end up quoting news sources and opinion makers.

Otherwise, we read that you have access to as well,

nothing further. Yes, sir.

Got it. Thank you.

Thank you. Thank you.

Hello. Sir, I have two questions.

First question is on senior living, and my understanding is new to the company, correct me if I am wrong. Right now, I think we build apartments and we sell it.

From a service perspective also, it is going to be a very, very big market. In long run, I know we are doing some kind of services, but I don't think that is very significant.

Over 5 to 10 years, do you see annuity-based services kind of model where the company will be participating? That is one.

Second is I think we have done very well in terms of how the balance sheet has scaled up. If I can take a number, I think our inventory is four times up in last 7 years without taking much risk on the balance sheet side, which is a commendable performance in a commoditized sector.

When we look 4, 5, 6 years down the line, how do you see this inventory again going up from current levels given the kind of plans we have? These were the two questions.

Honestly, on the second part, we never thought about how our balance sheet would be today 5 years ago in this terms of how inventory would scale up overall. Hopefully, we continue to scale at a good pace because our overall construction momentum has sort of built up, and we should add to inventory.

I believe that the senior living business will add to growth in the organization, and we believe senior living can be a really big play in the country. At the moment of time, we don't think that annuity-based, leasing-based model is the way for us to go given the low sort of yields that are there in the country.

Therefore, they're just not attractive from a return perspective. Indians much prefer to own their own properties.

Also, I think given the lack of a proper leasing structure in the country, if you're older, you actually would want more permanence for your house. You are less willing to move.

If I'm 70, I don't want to be shifting homes and moving. The propensity to rent from that perspective becomes lesser because we don't have a long-range leasing deposit kind of a structure and a model yet evolved which is financially viable.

In the medium term, which is let's say up till a 5-year term, I don't see leasing to become a big business for us or a services-based business which becomes a large driver of profitability. The profitability in the next 5 years will continue to come from home sales.

How it will change after 5 years, I really do not know.

Sure. Wish you all the best, sir, and I'll come back in queue.

Thank you so much.

Hi, sir. Good morning.

Hello. Am I audible?

Hi, you are audible. Yeah.

Sir, regarding the path to a 20+ reported ROE in FY27, which project handovers the primary divers for this target, what is the biggest execution risk to those specific sites today?

I would say that in general, we need to hit most of this numbers, right? Even if one or two slips, it can be a large dent.

What I would say is probably Ashiana Malhar Phase 2 and Anmol Phase 3 have the least impact because they are lower-margin projects. Other projects are all decent margins.

Now, depending on their revenue contribution, you can decide which one is more important. That sheet is more in front of you.

Let's say, Ashiana Amarah Phase 2 where ₹290 crores of revenue is a lot more important than, let's say, Ashiana Prakriti in Jamshedpur with ₹102 crores of expected revenues. I think we are on track to get to more than 20% reported ROEs for the year.

There is some room for slippage here as well given if we maintain even the PAT margin that we've gotten this year, I think with a lower revenue, we'll hit 20% ROEs. Year-on-year, margin should improve actually this year, there is a little bit of room there from a 20% ROE perspective.

Got it, sir. Next question.

Recently, acquired 38 acres in Chennai and Maharashtra adding to an estimated of ₹3,200 crores of sales potential for the senior living portfolio. What are the margins on this new parcels, and what do you expect PAT per square foot structurally expand as this vertical scales up?

Let me put this way. Including the one more project that we have done in Vadgaon in Maharashtra and the Bangalore parcel, which put together have a GDV of ₹6,500 crores in senior living, I would say these projects at the project level before, let's say, general administrative expenses of the corporate should operate at about 30 30-35% of margins.

Now, how the corporate fixed costs will behave as a percentage will depend on total top line. That's what we would expect to do that.

I think we can look at about gross profit margins of between 35 and 40%, and you're looking at about 5, 6% of selling costs, and therefore about 30 to 35% of margins at the project levels on average. Some of them would be higher, some of them would be lower, depending on our pricing power within those markets and our ability to position the product correctly.

Got it. Sir, and what are the—

Okay.

Hi, sir. Sir, congrats on the recent large deal done for senior living.

Sir, I just wanted your thoughts on various state government policies. I think there is this Maharashtra housing policy of 2025, which brought out attractive terms for senior living for developers and buyers.

Just wanted your color do they materially improve your economics? Are you now seeing more and more player enter this sector?

Are other state governments also now following up on these lines?

Other governments have not followed on the lines of Maharashtra yet. People are coming up with different regulations for senior living.

Some of them is also tightening the regulations around services, they're more consumer-oriented, which is also a good thing because the more confidence that customers will have that developers will actually deliver, the more the sector will do well. The policy of Maharashtra is also not yet notified in the sense the rules are not framed, the policy framework that need to be incorporated in the development control regulations, they have not been yet been incorporated.

The policy is right now I would say more of an intent and less of an operational policy that you can actually utilize. As and when it becomes operational, I think what it will do for us is it makes it easier for us to look for parcels which are more suitable for senior living because we're looking for little bit more scenic areas, more neighborhoods which have a different charm if that the way to put it for seniors because they don't have to be in the city anymore.

Those neighborhoods will become a little bit more easier to work with, and more parcels might come up for development if this policy goes through. The other thing that Maharashtra has also done within MahaRERA, they have defined what all you need to fulfill to be able to market yourself as a senior living project, which is also a good thing because that regulation also creates a little bit of a regulation which will give more faith to the customers that this senior living will be actually what it is.

I would say overall the policy framework right now is encouraging for senior living. Yes, there are some places where overregulation, overambitious regulations are a concern in some states, but I think those will also get resolved as things move along.

Got it, sir. Sir, just a follow-up on the previous question someone asked of slow-moving projects.

You have mentioned we can expect 35, 40% gross going ahead. Previously, you have said that FY27 margins should be better than FY26, and FY28 should be materially better because all the low-margin projects, and I think Malhar is the only slow-moving project which can impact this.

Sir, as of now—

Slow-moving is the wrong word. Low-margin is the better word, right?

It could be moving fast with, yeah. Go on.

Sir, apart from Malhar, is there any other one, two projects you see where this can marginally impact the improvement in margins?

Different projects have a different margin profile. Anmol is the other one which I said, which is the last phase is getting delivered in this year where the margin profile is significantly lower than what we generally underwrite.

Now, there are some projects which will be at our general levels, and some projects going forward which are, as we have had some projects which have been below our general levels, there are now projects which are significantly above our general levels. There will be volatility in the margins, I would say, on a quarterly basis for sure.

The margin profile for a full-year basis in '27 will be better than '26, and the margin profile in FY28 will be better than '27 overall. That's the general expectations right now.

Sir, thank you for taking my question. My first question is you mentioned that we acquired a land parcel in Mumbai-Pune belt, maybe Vadgaon in April.

I missed that part. Can you substantiate that a bit?

Okay. We've acquired about a 28.5-acre parcel on the old Mumbai-Pune Highway in a place called Vadgaon.

It's very close to our current project Ashiana Amod. We'll do a senior living project here about 20 lakh square foot, approximately let's say ₹1,800 to ₹2,000 crores of GDV.

Yeah.

Okay. That's helpful.

Sir, if you can share guidance for pre-sales for FY27 and the launch pipeline, the phases and new projects?

New projects we are looking to launch Ashiana Utsav, Ashiana Tatvam, and Ashiana Aranya. Ashiana Utsav is a premium housing project in Jaipur where all approvals have been received.

We should launch in the next couple of months. Ashiana Aranya and Ashiana Tatvam are slated for launch in the Q4 of this year.

Phase launches, it's hard to say, but basically we have phases Aaroham Phase 3 should get launched this year. Phases in all our senior living projects like Advik, Amod, Vatsalya, Swarang, we should be launching at least one phase in each of the senior living projects is what I would expect this financial year.

We should have decent launches in the financial year. The pre-sales target for this year is ₹2,200 crores that we are targeting.

I would say more importantly, I think we are really looking to grow senior living. Senior living is targeted to cross ₹700 crores.

I think senior living sales have been growing at a CAGR of more than 50% for the last 5 years if that's the way to put it. We have gone from ₹100 crores to ₹570 crores in a 500 period a 5-year period in senior living.

I think the key metric that we are looking for pre-sales is to really, really ramp up senior living. The more it does well, the more the long-term is defined because to me, it's a structural story.

It's a structural change in India's demographics, particularly in the western and the southern part of the country, and some of it in the northern part of the country. I would say eastern and central part of the country still remains very young demographically.

These parts of the country are changing structurally, both in financial independence of seniors and overall percentage of seniors and urban seniors. That's the pre-sales.

Even though it's a smaller subset, I think that's taking a larger attention of the management team if that's the way to put it. Because that's where the future lies for us, according to us.

Perfect. Sir, in this context, we were planning a project with Epoch in Bhiwadi.

Can you update on that, please?

Okay. With Epoch Elder Care, we have signed up our assisted living part of the business.

Our senior living has two pieces in the business. One is what we call independent living, active living, or they are called active adult communities in the world.

These are for folks who are seniors, but they're active, okay? They don't need assistance in their day-to-day life.

You're creating amenities for socializing, for wellness, for companionship, for activities, for constructive, purposeful living. This is 99% of our senior living business if I were to say, and which is basically where we make our profits.

In our senior living projects, we throw in a tight bit of assisted living because our independent living customers might in the future at some point of time require assistance and care services and caregiving. We build these at our projects.

They're not necessarily our focus for our customers from a profit perspective. It's a sort of a value-added service that we're providing.

In one of our projects, instead of doing it ourselves, we have tied up with Epoch Elder Care who's specialized in doing this to see if we can outsource this activities to free up management bandwidth to focus on the active piece itself. Right now, we're running two large care homes.

One will be this in Bhiwadi called Nirmay care home's gone to Epoch. The other will be in Chennai in Ashiana Shubham.

That care homes we plan to manage ourselves and to see what the difference we have when we have outsource one of the projects out to see, and then take a call on future strategy of care homes.

Hello. Hi.

Am I audible?

Yes. Hi, Shubham.

You are audible. Yeah.

Thanks for the opportunity. Sir, you already mentioned the launch timeline for Aranya and also—

Yeah. Is it better now?

Sure. Okay.

Could you just provide me rough timeline for the other land parcels that we have, the Pune, Karjat one, the Bangalore one, and the Pune, Vadgaon one? Also, if we see the delivery timelines, currently for FY29 and 30 and let's say 31, we are roughly around ₹800 to ₹1,000 crores each.

Will these new landbank projects be getting delivered in those financial years, or are we planning on any other projects to be delivered then? These two questions.

Okay. One, I'll walk you through.

Ashiana Utsav, Ashiana Tatvam, and Ashiana Aranya are to be launched within this financial year. I clarified earlier as well, Utsav within the next couple of months, and Aranya and Tatvam in Q4 of this financial year is what we're targeting.

The other three projects, which is Vavarle, Vadgaon, and Bangalore, we're targeting to launch in FY28. There will be build-up in FY30 and FY31 deliveries and values there.

Most of it will be built not through new launches of projects, but launches of existing phases, I would say. All the phases that we are looking to launch, which would be around I think 25-odd lakh square foot, we would probably look to wrap them up by FY31, whether it's Ashiana Vatsalya, Ashiana Advik, Swarang, Ashiana Aaroham.

All of those launches by FY31, we would look to launch that up, so that will definitely add up there. Of these new project launches, I would say Ashiana Utsav definitely should get delivered within FY30 or FY31 partly, not the full project, but the phase which we will launch in the next couple of months should definitely get delivered by FY30, I would say.

The other projects of Aranya and Tatvam, FY30 would be difficult, but I would expect some part of it to come in 31, and the other three projects which are going to get launched in the next financial year will probably go to 32. Some part of Aranya and Tatvam should also come into FY31.

These two financial years will build up. You will see every quarter something or the other getting added to these two financial years is what I would say.

Got it. Thanks for the answer.

Just one last question. Currently, our realizations are on a higher end just because of our launch of Aaroham.

Going forward, how do we see our realizations trajectory moving up? Blended one, because senior living would be higher, but on a blended basis?

On a blended basis, I think, if you look at what are full-year realizations, the quarter realization is what Aaroham has really, really impacted because of the significant there. Right now, I think we are at 9,000 for the full year.

Let me just open this up

if I don't want to get my quoting. We're at 9,000 for the full year.

Yeah, 9,000 for the full year. I would say our realizations should be in this 9 to 11,000 kind of a range.

I would say maybe hopefully should move to about 10,000 on a blended basis as senior living starts becoming a larger profile and let's say Jamshedpur and Jaipur, which are relatively lower price markets, also become a little lesser in quantum. Though even Jamshedpur and Jaipur have now moved to 7,000+ for us as markets, I think.

In senior living also, Vikash ji is just pointing me how to add that we're premiumizing as well. The Ashiana Aranya and Ashiana Tatvam are a lot more premium products than what we have historically done in senior living.

A premiumization story is playing out. I would say ₹10,000 a square foot is definitely something we should look to get to.

Got it. Thanks a lot.

Thank you.

Hi, sir. Thank you so much for the opportunity.

Just wanted to know the land area and price for Utsav.

Say that again, please.

I just wanted to know the land area and price for Utsav, the project.

Land area of Utsav is around 11-odd acres, I would say. 10 acres 10 acres is Ashiana Utsav.

We're not launching the entire project, I think. We haven't I think closed the exact pricing, but in the 7,500 to let's say 8,500 range, it will land somewhere or 7,500 to 8,000 it'll land.

Exact pricing is yet to be concluded fully, I think.

All right. Thank you so much.

Thank you.

This is Varun Bang from Bandhan Life Insurance, actually. This first question with respect to our Panvel project, what is the upfront investment in the Panvel project, and what could be the realization assumption for Panvel?

Given that this is our first project in Panvel, do we have to rely on channel partners for sales, or we can drive direct sales how we are doing in other senior living projects?

Hi, Varun. We don't generally give out individual project investment details like this publicly, I'll refrain to do that.

The pricing of Panvel has also not been concluded yet. I think we'll launch in Q4.

I think we'll get more and more ascertained closer to launch. We give some GDV ideas basis some pricing, but I don't want to get into the exact sort of pricing as of the moment.

We will be doing it at the highest end of any senior living that we have done that we can tell you. Will we have channel partners?

I think we have started using channel partners, but the reliance on channel partners is very limited. The senior living market is sold mostly directly because it's more of a specialized sale to a specialized customer, and we already have a lot of customers from Bombay.

Ashiana Amod in Pune, 50% of our customers there have been from Bombay recently, and even Utsav Lavasa has had significant Bombay customers historically. I would say majority or nearly all material sales should happen directly, and channel partners should contribute some parts in the beginning.

Got it. Just to my first part with respect to our upfront investment, if that is not possible, if we can just broadly share if we are targeting 15% PAT margin, 15 to 18% PAT margin, can you share ballpark breakup of this 80 to 85%, the remaining portion?

That would be helpful.

I wouldn't like to share that on a project-specific basis. That's the only thing, Varun.

Let me put it this way. As I said, we were looking at about 35 to 40% at the gross profit level of projects in general, about 5-odd percent of sales and marketing, looking at a project-level margin of 30 to 35.

You take out general administrative costs after that, any financial cost we have, and take out tax effectively to get to PAT margins. I said general administrative costs will vary depending on actually what the revenue would be in a particular year.

On the direct cost side, which is let's say about excluding sales costs, about 60 to 65% of revenue, typically we would look at about 5-odd percent of what I call project overheads, which are approval costs, architect costs, just construction cess, environmental fee, OC fees, all of that put together, which is soft costs of about 5%. Hard construction costs would vary between the 40 to 50% ranges, and land costs will vary between the 10 to 20% range.

That's the breakup that you will have. Some projects might have a 10% land cost with a 45% construction cost, some might have a 20% land cost with a 40% construction cost.

It'll vary a little bit depending on that, depending on the deal structure also. Outright purchases generally have a lower land cost component as a percentage to revenue, and revenue share projects have a higher component of land cost because you're paying over a deferred basis.

That's the basic breakup, Varun. I hope that was helpful.

That was helpful. With respect to the Vadgaon project, back-of-the-envelope calculation suggests that we are assuming realization of around ₹9,000 for this project.

If I see Malhar project, it is giving us roughly ₹7,000 a square feet. Amod is giving us probably another ₹7,000.

Is this going to be slightly premium versus Amod and Malhar, and which is why ₹2,000 premium, or to understand this better?

Just 1 second, yeah, if I can. There is no benchmarking to Malhar at all.

There is benchmarking to Ashiana Amod. My understanding of Amod is it is about north of ₹8,000 a square foot in the newer phases.

We are at ₹8,200, ₹8,300 a square foot if I can look that data up. Just give me 1 second, yeah.

Amod Phase 3, I was doing the math on the deck only at slide 12, it's at about ₹8,500 a square foot. There is no real more premiumization right now planned.

We are planning as if it is similar to Amod in its thought process in that working. As we plan the project, can that change?

Yes, it can change a little bit. Then our prices might go up if we premiumize the product even more.

Right now, it's just expectation of Amod plus inflation a little bit for the delay of launch from current Amod price.

Couple of questions. I think you mentioned earlier that Gurgaon you are going deeper and probably in the pecking order at the bottom of premium brands.

You want to increase it. In terms of Pune, it's been I think about 5, 6 years that we are now in Pune.

How are you seeing that, and do you want to go deeper into Pune, or just wanted to get a sense on that?

Rohit, we are going deeper in Pune in terms of senior living, and we look at Bombay and Pune sort of fused together because the projects are serving both Bombay customers. Half our customers are Bombay, and half our customers are Pune.

It's 40% in Bombay, 40% in Pune in Ashiana Amod, and 20% is from rest of the country or NRIs who have booked. That is the place where we're going deeper.

We have done three transactions, right, between Panvel, Vadgaon, and Vavarle in the last, let's say, 3 months. Those projects put together have a ₹3,500 crore GDV basis.

That is us going deeper in that market. We are not looking to go deeper for premium housing yet.

As we said, Malhar is been a low-margin project, and we still haven't figured how to get a decent-margin project in premium housing in Pune. What happened in Gurgaon was even though Anmol was a low-margin project, we learned from Anmol that to make money in Gurgaon, this is what we need to do.

We understood that. In Pune, we still haven't been able to understand that yet.

In senior living, we are doing well. We have profitable, margins are good, volumes are good, we decided this is where we're doing well.

Let's just go deeper in this product profile and do multiple price points here. It was that.

We are going deeper, I would say.

Got it. Similarly in Chennai, of course we've done three or four senior living now, we are going to be again only in senior living there, or do you think there is an opportunity for something which can do beyond senior living also there?

There is an opportunity to do non-senior living. I wouldn't rule that out.

Are we actively looking for it? Not very active.

If something comes within what we call our relationships where we have comfort, we would do a non-senior living project there. Again, in Chennai, the kind of senior living projects that we have taken, now Aranya to me the way we have decided the product is probably a ₹1,800 crore kind of a GDV product, GDV project.

If we can do that itself, that adds different kind of depth to the Chennai market for us and selling Aranya and Vatsalya together next door to each other with differentiated and more premiumized product in one versus the other. That's the strategy we are going to go deeper in Chennai as well.

Yes, hello.

Hello. Hi.

Hi, Shobhit. Yes, you are.

Hi, Varun. As we allocate higher capital towards premium and senior living landbank, what are the primary macroeconomic or operational scenarios stresses protect the balance sheet over the next 3 or 5, might be 5 years?

Macroeconomic scenarios, sir, I don't know what the macroeconomic scenario would be. As I said, from a senior living piece, we see a structural shift in the demographics of the country in the western and southern parts of the country and northern parts of the country.

To me, that's the macroeconomic protection towards senior living and going there. The other bit is we are low-debt, high-cash.

That keeps us, even if shocks come along, we can absorb those shocks basis that.

Okay. Any major wrong things that can happen to the senior portfolio, what are the scenarios that you can think of on immediate basis that these are the wrongdoing can be happened?

One, excess competition could come in, but I right now believe this competition should actually grow the market. Second, we might take up more than we can chew, senior living will grow, but may not grow at the pace that we expect it to grow.

Third, we may not be able to handle it managerially in the number of projects that we want to handle if that's the way to put it. Fourth, maybe our choice of markets could go wrong.

They are very different markets. Our senior living in Jaipur didn't do so well, but our senior living in Chennai did extremely well when we launched.

Maybe our choices might go off. I don't know.

All I can list out 20 different things that could go more wrong. I'm constantly worried about what all can go wrong.

Approvals can get delayed, construction costs can go up. I don't know.

There's numerous things which could go wrong.

Okay. Another final question would be FY30 guidance of ₹2,000 crore cumulative PAT, what are the biggest bottlenecks to achieving it?

Achieving delivery timelines right now. I think the supply of materials, our scaling up of execution, some labor shortages that people are talking about.

Meeting the delivery timelines will be our biggest, biggest sort of thing. Launching Aaroham Phase 3 this year, launching Utsav, and as I said, Tatvam and Aranya, if we launch within this year, there are parts of it which can come on track which those used to be bottlenecks.

As of now, we are on track to achieve that number. Overall, we seem to be on track.

Just two follow-ups. Firstly, on the cost of construction, which you said is probably rising, broadly can you share the sort of rise that we are seeing in cost of construction both on QoQ or YoY basis?

Second part to this question, in terms of when we underwrite the project, how much do we typically built in for cost of increase the inflation part? Can you share?

Okay. When we underwrite a project, when we pick up a land, we don't underwrite any inflation either in the sales price or in the construction cost substantially.

It's more if it is, it's like 4, 5% here or there till launch inflation. Post launch, we just don't know how prices will behave, how construction costs will behave.

If anything, we'll then just underwrite CPI for both the construction cost and for the sales price if that's the way to put it. I think the assumption is that cost of construction and sales both will go up on a Consumer Price Index level.

This year, probably CPI will be more than what has been historically in CPI. I think we're expecting about 8 to 10% increase in construction costs in this financial year on a year-on-year basis as of now.

Got it.

Given the information we have. Things change in the next couple of months, anything more or less can happen.

As of now, the information that's what.

Just one request. I had shared an email with Vikash ji regarding a compliance requirement wherein we needed some data for our internal filing.

It would be helpful if you can share that information.

We'll have a look at the mail and then come back.

Okay.

Varun, in case you don't get a reply, can you resend the email again tomorrow, please? Seems like might have slipped in our inbox for some reason.

Sure.

Okay. Thank you.

Yeah. My question was so if I look at the presentation, I see the value of units delivered in FY26 is about ₹988 crores, but the revenue that we have recognized is around ₹1,140 crores.

Wanted to understand from where is this extra ₹150 crores of revenue coming from?

You're looking at the consolidated accounts, if I'm correct, Rahul? In the consolidated accounts, one, we consolidate the maintenance services business, which is an annuity business, the revenue is coming in.

The other reason why the revenue would be a little different is that we already would have some inventory left in already delivered projects. Some of that inventory also gets sold, so that top-up also comes in.

Okay.

Okay.

Those two have to be added to the numbers that we are showing in the presentation, and that's how the revenue overall is stacked up.

Okay. When you say handover done, does that mean that all the units of that project has been accounted in revenue, or something is still left which may get recognized in the next quarter?

When we say that the project is scheduled for handover, that means when we are going to complete the project, issue IOPs, and recognize the revenue to the extent we manage to sell the units. The units which are unsold, they remain in our stock and gradually get sold.

As and when that delivery starts, or we start the handover, that's when we broadly mention that this is the year in which the deliveries will happen.

Just to clarify further on that, it only is for the sold units and not for the unsold units to be clearly. In sold units, if anything is slipping to the next quarter, then we write "started handing over" instead of "handed over."

When the word "handed over" is there, everything has been recorded which is sold. Only the unsold portion when it gets sold will be recorded for revenues specifically.

If it says "started handing over," then it means that some of it is coming into the next quarter as well.

Hi. Thanks for the opportunity.

Hi, Varun. It's great to see the increased commitment towards senior living.

All the best for the same. I had just one quick question on the class-action suit that was filed last year in October.

Given the customer centricity with which we work, it was a little surprising, actually. If not mistaken, this was a project which was delivered almost 5, 6 years and above before the case was filed.

What led to that? Was there no possibility that both the parties could have managed to settle it without going the litigation route?

Second, what is the latest on that? Just in continuation, general your sense if it was filed in October, how much time does a case like this typically take, because would be good to know how it kind of concludes actually?

There are two aspects to the case. One, there is a consumer complaint been filed, okay?

In the consumer complaint, they have made the consumer complaint a class action by taking it from just the consumers who have filed a complaint to everybody in that project. Whether there is a class action applicability on this suit or not, we have gone to the High Court in Delhi to say that there is no class action applicability on this matter.

Our lawyers have opined that we should get something favorable from the High Court, and therefore we have gone and litigated in the High Court. High Court is still going through dates because we have to service a lot of customers notices and everything, there is some process going on.

I hope that this High Court decision should come in sooner than later, maybe let's say within this financial year we should have something would be my expectations. In the consumer forum matter, even if High Court rules, the consumer complaint will go on at least to the extent of the customers who have actually filed consumer complaints.

We would have preferred if we can settle the matter out of court, we would love to settle with our customers. The last thing as an organization we want to do is litigate with our customers.

Somehow though on the post-handing-over period during maintenance, there has been some increased litigation from some consumers particularly here even though when we check back with our consumer satisfaction, when we check on NPS scores, we take feedback even in this project, our overall levels of customer satisfaction seem very high. In the other things, rents in the project are up, prices in the project are up.

General levels when we visit the project, the upkeep and the maintenance, with our eyes, we are satisfied with. Unfortunately, this litigation has happened of this extent.

How long can the consumer forum matter take? Completely don't know, man.

It's very hard to comment on the judicial system in India. It can go for years sometimes, sometimes earlier.

We really don't know. I've had a matter where in a consumer forum where the matter got argued and it got reserved for judgment.

All the judge had to do is write the order and pass it on. That took 7 years from the date of reservation of order to date of actually pronouncing the order.

Okay? When you see something like this, you just don't know when it will get done.

Then you have seen things which have gotten addressed in 6 months, 8 months as well completely, fully. I really don't know how long it will take, but my suspicion is that it'll be longer than shorter given the number of parties involved.

Sure. No, just for somebody who's tracking the company for 15+ years, right, it just doesn't add up.

It's one of those things which if you didn't see it coming from the company, you'll wonder, right? Given the customer centricity with which we work, right?

From to everything, so. Arpit,

unfortunately, you say if you go into that project and you spend time with the customers, you will say in that project also this does not add up. As a company, why customer-centric and you might say, "Okay, they've scaled up and they will mess up somewhere and they've really messed up here."

This way that's why it should add up here from a customer dissatisfaction perspective, right? The litigation doesn't add up to me that the customers are litigating with us and that we're not able to resolve this on an out-of-court basis.

Even if you go to the project, this doesn't add up for some reason.

It is what it is

at the end of the day.

My second question was on that are we seeing any pricing pressures or oversupply in any of the markets that we are operating in?

There is no oversupply yet. Signs of some oversupply in Gurgaon and Pune are visible, whereby two quarters in last two quarters in Gurgaon saw very heavy launches.

Absolute inventories absolute unsold inventories increase substantially for two quarters in a row. If that trend continues for another, let's say, four quarters, we'll definitely be oversupplied.

We will see how the next couple of quarters go, where to where to that is. Pune also has some signs of oversupply.

Other so that's that's what I would say. Bhiwadi, Jamshedpur, and Jaipur, I don't see any oversupply yet.

Okay. Thank you.

Got it.

Thank you all for participating in this earnings conference call. In FY26, we are encouraged by the strength of our sales momentum, launch pipeline, and operational cash flows.

We remain focused on timely handovers in FY27 and on building long-term value through disciplined execution and customer-centric development. If you have any further questions or would like to know more about the company, please feel free to reach out to us directly, or you can alternatively reach out to our investor relation managers at Valorem Advisors.

The investor presentation and relevant materials are available on our website, and we'll be happy to provide any further clarifications you may need. Wishing you all good health and a productive year ahead.

Thank you.