Hello and good evening to everyone. On behalf of Arihant Capital Markets Limited, I thank you all for joining in to Q1 FY27 earnings conference call of Ashiana Housing Limited.

Today, from the management, we have Mr. Varun Gupta, the Whole-Time Director, and Mr.

Vikash Dugar, the CFO of the company. Without any further delay, I would hand over the call to the management for their opening remarks.

Over to you, sir.

Thank you. Good evening, everyone, and a warm welcome to all of you for joining our earnings conference call for the first quarter of financial year 2027.

The real estate sector entered FY27 on a more moderated note after the strong momentum witnessed through FY26. Residential demand across key markets softened somewhat during the quarter, weighed down by global economic uncertainties and a cautious wait-and-watch approach among some home buyers.

At the same time, developers continue to remain confident in the medium to long-term outlook, with new project launches holding firm and prices remaining resilient across most markets. Premiumization continued to be a defining trend, with buyers increasingly gravitating towards larger, well-designed homes from established and financially disciplined developers, reinforcing the ongoing shift towards organized and branded players.

The senior living segment continued to remain relatively insulated from these broader demand fluctuations, supported by structural demographic-led growth drivers. Changing family structures, rising urbanization, and a growing preference for community-based living among senior citizens continue to strengthen the long-term case for this segment.

With organized supply still limited relative to the size of India's aging population, the opportunity for established players in this space remains significant and largely unaffected by short-term cyclicality in the broader housing market. I will now take you through our operating highlights for the quarter, followed by our financial performance.

Starting with our operational performance for the quarter, the company recorded a booking value of ₹358 crores during the quarter gone by, with 3.6 lakh square feet of area sold across 234 units. While bookings moderated compared to the exceptionally strong preceding quarter, our collections remained healthy at ₹409 crore, registering a 6% year-on-year growth, reflecting sustained customer confidence and strong collection efficiency.

Average realization also improved significantly to ₹9,923 per square foot, representing a 37% year-on-year increase, driven by a favorable product mix and continued pricing resilience across our portfolio. During the quarter, we made a significant investment towards our future growth pipeline through acquisition of 28.55 acres of land at Vadgaon Maval in Pune.

This is the largest ever land acquisition undertaken by the company for a senior living project, with an estimated saleable area of approximately 20 lakh square feet and a potential sales value of around ₹1,800 crores. On the execution front, we commenced handover for phase one of Ashiana Nitara in Jaipur during the quarter, marking another important milestone in our project deliveries.

Overall, we continue to make meaningful progress across the key pillars of our long-term growth strategy by maintaining a diversified geographical presence, expanding our senior living portfolio, strengthening our development pipeline, and progressing steady on project execution. Coming to the financial performance, revenue from operations for the quarter stood at ₹107 crore compared to ₹293 crores in Q1 FY26.

Revenue recognition in Q1 FY27 was primarily driven by handovers at Ashiana Nitara in Jaipur. Higher revenue in FY26 was attributable to more deliveries.

PAT for Q1 FY27 was lower vis-à-vis Q4 of FY26 due to lower deliveries. Importantly, our operating cash generation remained healthy during the quarter at ₹121 crores compared to ₹108 crores in same quarter last year.

This reflects the strength of our collections, disciplined execution, and efficient working capital management despite lower reported revenues. We also commenced the redemption of NCDs issued to ICICI Prudential Mutual Fund.

During the quarter, ₹31.25 crore, representing 25% of the original issue, was redeemed. Overall, while the reported revenue for the quarter was impacted by timing of project handovers, the company continued to demonstrate healthy operating cash flow generation, maintained a disciplined approach towards capital allocation, and strengthen its development pipeline, particularly in the senior living segment.

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

Hi, sir. Am I audible?

You're audible, Rohan. Please, Rohan.

Hi sir. Thank you for giving me the opportunity.

My question was on the line that the quarter one bookings suggest a back-ended year versus a full-year target. I just wanted to know that which specific launches are expected to drive the bookings in H2, and what gives the confidence in hitting the FY27 guidance that you have given in the previous concalls, given this soft start?

Varun ji, are you there?

I'm there, Vikash ji. Why don't you take it up though?

You're right that the quarter one has been relatively softer, but we have got launches lined up. There are couple of launches lined up in Q4 that we have in the present year.

Okay. Got it, sir.

My Sorry, I'll come in. In July, we took out an operational update.

In July, we had a great launch of a project called Ashiana Amarah. As of 31st July, our full-year sales had reached to about ₹859 odd crores, if I were to say.

If you look at the July month was better than actually all the entire first quarter. I would say, in the first half itself, exit September 30th, we should somewhere be between ₹1,050 and ₹1,100 crores of sale.

Run rate will be maintained from thereon. In the second half of the year, the big launch that is lined up is Ashiana Aaroham's phase three in Gurgaon.

That will be critical in taking us through to the guidance. That will be in either Q3 or Q4 of this year.

Okay. Got it, sir.

Sir, my second question was regarding the pre-sales growth that we will have. Pre-sales grew very well last year, as we have seen.

What is the sustainable pre-sales trajectory from here on onwards for the next three to five years?

On that front, we are not as looking for sustained pre-sales growth in the near term. I think what we are planning is what do we do in the long-term things?

We might have actually a little bit of dip in pre-sales this year or the next, and then, let's say, let's get back to a certain number in '28-'29 or '29-'30. A little bit of that is being driven by a lack of inventory to sell coming up in Gurgaon, in Jaipur, in Bhiwadi, some of our key markets in the regular housing space.

This is primarily happening because the company is shifting more and more capital towards the senior living space, where we see a much longer, deeper opportunity. I think in the senior living space, we are looking for about 25% CAGR to be maintained over the long term, though at a low base.

We had started about ₹100 crores 5 years ago, and pre-sales of about ₹570 last year in senior living, and we are looking to really, really actually expand that even at a faster CAGR than that. For a couple of years, we may not have very large pre-sales growth or that, but we are comfortable with that because we are seeing margin expansion and ROEs now, as we have guided earlier, we are looking to get to at least 15% ROE.

We can see 15% ROE sustaining going forward, and with an increasing capital base because we don't intend to dividend out most significant amounts of capital. Dividends will remain the way we are or growing a little bit.

I think the company's focus would be on maintaining that ROE's trajectory doesn't fall below 15 and sustains above 15 year-on-year every year, if with a little bit of fluctuation here or there in the pre-sales or top line and stuff like that. That there is compounding of the net worth happens over a long period of time.

I think that's the intent. I just thought I'll put that out there.

That said, I think senior living, as I articulated, we expect to see strong momentum in senior living sales going forward.

Sure, sure, sir. That was informative.

Thank you so much.

Thank you.

Yeah. Hi, good afternoon.

I'm sorry, I just joined when you were answering that question, Varun, I'm sorry if I missed it. When you were giving the update on the July month, that was for pre-sales, is that correct?

Yes, Rohit.

Then just following on from there, this year you are confident of holding on to that ₹2,500 crore kind of pre-sales for FY27? Is that correct?

Because I think you said there could be a dip in the near term, and you I think ₹2,200 is what we Sorry. Did we add ₹2,200?

Sorry, ₹2,200. I'm sorry,

yeah. ₹2,200, yeah.

Yeah, ₹2,200, ₹2,200 we are confident of holding it this year. Okay.

At this moment of time, it looks good. We should exit H1 at about ₹1,100, as I indicated, between ₹1,050 and ₹1,100, given that we hit ₹860 by July.

So ₹859, sorry.

Right. Right.

That's good to hear. Sorry, just one, two small things.

One was on this Bangalore CPs that you were looking at, anything further on that? We haven't heard any updates, just wanted to check.

There has been progress, Rohit, on the CPs being resolved in Bangalore. I'm hoping that we should have the final definitive documentation signed off sooner than later.

There has been progress there, and we've actually put a team deployed, two people there on team who are gearing up to make things ready to get the project launch going. I'm quite confident that Bangalore, South Bangalore, should happen soon.

This is in South Bangalore. Got it.

I just wanted to check where you are in Bangalore. I was just keen to know that.

This is on Kanakapura Road.

Right, right, right. I think I just remembered the listing that you had posted when you had acquired this, when you had given this notification.

Sorry, one more question, Varun, was so if we were to look at the presentation where you give quarterly delivery, of course, it can change here and there a bit, but it seems that you said 15% ROE. I think we were 15% ROE last year also, or just about there.

Yeah. I think based on what you are saying and given the margins can significantly increase from here, even the projects that we have for delivery, they must have very good margin going forward because of the realization growth and, in general, operating leverage.

Is it not fair that we'll probably cross 20% ROE this year on a reported basis?

Yes, that is fair. When I say 15%, the goal of the company is to make 15% ROE the floor ROE in a long-term basis, yeah.

Have years higher than that. The first was to get to 15, but the objective, strategic objective is to make that the floor.

Sure. No, I think that is a very Figure out how do you get everything

Sure. No, that's a very well-taken point, given the fact that it's a very cyclical industry.

If you are able to do it, then I think it will be a phenomenal achievement. Varun, just I understand and I think we have spoken on this in the past few concalls that you are not so much driven by the Hello?

Yes. Yes, sir.

Haan ji, sir? Yeah.

Hello? Yes, sir.

Please go ahead, Rohit. Yeah.

Sorry, I was saying that if I understand your point that you're not so much fixated by the pre-sales growth, at least in the near term. Even if you were to sort of let's say 1, 2 years, you're not going to grow because we don't have that much inventory.

He is not right for the some conference, sir. Who is the participant, can you There's one more connection here.

I'm not sure if it is Yeah. Sorry.

Hello? Chorus, can someone from check if there's any other connection on the line, please?

Sorry, Rohit. Go ahead.

Yeah. I was just saying that while I understand your point on the not going for pre-sales immediately, and we may not have the inventory.

How do we sort of in the quest of trying to balance that 15% ROE aspiration and also grow, because ultimately that is what all of us also want as a company. How do we balance that?

I'm not saying that we should of course, we don't have land, we'll probably get land in the next 1, 2 years and it's subsequently launched. Just to understand from your perspective, let's say 3, 4 years out, how do we sort of ready ourselves to sort of grow from this 2,200, 2,300 pre-sales that we will sort of be at, given the inventory position, how do we sort of go from that level to the next level whenever that happens, let's say 3, 4 years?

Any thoughts on that, yeah?

Rohit, two things. If our capital base is not reducing, if you're not dividending out our capital or doing buybacks, which we don't intend to do, and we are looking to increase our capital base, there is no way ROEs can sustain without earnings growth, right?

That's sheer mathematics. For ROE to sustain, we will have to have a long-term earnings growth.

From a long-term perspective, we do want to get to, let's say, in the medium term, maybe ₹3,000, ₹4,000 crores of pre-sales we'll need to hit. All I was saying was momentarily for some quarters of challenge we could go through if that sustained momentum will take to get there.

I think the strategy of the company is, okay, let's invest more and more in senior living because we see that as a structural business. The change is and second, less cyclical because it's a structural change because of the change in the demographics, and it's less cyclical because it's less competitive with less supply on the table as of zone, and we have a sort of a significant advantage of being a pioneer there and having our sort of brand placed in everything.

The long-term earnings growth and also pre-sales growth is going to be driven by how senior living does. Right now it's a small base, but as we increase the senior living piece in the pie and when that increases, when it becomes a larger part of the business, it will just keep driving the growth of the business is where we are coming from.

Let's say a '29-'30 financial year target is actually to look at ₹1,500 crores of pre-sales from senior living itself. Once that has kicked in, I think senior living and then pre-sales growth will happen.

We're looking at couple of quarters of maybe not as much top-line growth. In those and through those quarters, I think though we will continue to have reported earnings are doing well, we'll continue to have reported ROEs doing well.

We will continue to generate positive cash and deploy into senior living. We have already deployed into four five projects, four right now, 51 lakh square foot odd, which we have in the future pipe, the Bangalore one coming up.

We are in active discussions for a few more. I think maybe get to our first place would be to get to about a ₹10,000 crores of GDV in senior living.

Once we have that, I think then we can see just senior living driving the momentum of the company going forward. I think that's the basic key.

I think we will need to get to ₹3,000, ₹4,000 crores of GDV of pre-sales, probably closer to 4,000 in the medium term, to be able to sustain those ROEs. Instead of just saying that instead of a straight line path, that there's a maybe a little bit of a dip for a couple of years, and we can live with that and pick that up and get there.

I think that's the basic thing to say. Fair enough.

Fair enough. All the very best, and yeah, thank you.

Thank you, Rohit.

Afternoon, sir. Sir, just a question on the ROE.

I think earlier you were highlighting a 20% plus ROE, and today you've commented that long run it remains 15. What has changed between those two assumptions?

Chetan, maybe I am wrong, but whatever I remember, we've been talking about getting to 15% for the longest time, and we hit 15% last year in reported earnings. Maybe I'll go back and check the transcripts if I've said otherwise.

That said, as was on the current call previous question, I think this year we will hit 20% ROE and we should hit 20% ROEs for a few more years, given the plan that we have in place. I think that is something that we can do.

As I said, 15% ROE has been the long-term goal. That's the minimum rate that capital to sort of compound at going forward.

That's been the intent at 15.

Sir, structurally, how should we look at the ROEs when we build it up from a project to the ROE perspective? How does the project margin change for you more longer run, not just for a year or two, but how does the project margin change for you which gets you to 15?

I think if we are able to achieve about a 30% gross margin and let's Hello, sir. Your voice is not audible.

Hello, Varun sir? Hi, am I audible?

No, sir. It's muffled, sir.

Okay. Vikash ji, why don't you take this up?

I'll This is better, Varun. This is better.

If you want to continue or else I'll take it.

I'll just continue. We generally target about a 30% gross profit margin at the project level, about 18% PBT margin, about a 12% SG&A, and 18% PBT margin, and 13.5% PAT margins.

If you are able to sustain that whenever, whichever year, I think overall, generally, our ROEs should translate into the teens. If we are able to improve the margin profiles further from here, then that takes us above 20.

That's the general sort of view for me.

Levers to improve the margin, would it be more pricing power given the brand and given how we are placed in the senior citizen market, that would be one key lever or are there any other levers as well there?

Pricing power is definitely a key lever and senior living. We used to that.

We enjoy pricing power in senior living. What we are also intending to do in senior living is increase our product profile into a little bit more higher-end segment.

If you see, our pricing has been increasing on a ticket size basis also. We are going up to more premiumized products.

As Vikash ji had mentioned in his opening, premiumization remains the theme. As we more premiumize our products and enter higher sort of category of products, there also the margins should improve.

Got it.

If I may just add to that, Varun ji, I think the other factor is the operating leverage fully playing out in the long run. Because if you are talking about the senior living, which is relatively more resilient towards the cyclical fluctuations, if that attains the critical mass, something like 1,500 crores of pre-sales that you talked about, the kind of operating leverage which will flow through will also give a sustained kind of impact on the margins in the long run and hence the ROEs as well.

Understood, sir. Thank you, sir.

That's helpful. All the best.

Thank you for taking my question. Sir, apart from Bangalore, any other business development near closure, particularly in Jaipur, Gurgaon, if you can share something?

Hi. We are in Sorry to interrupt.

Sir, your voice is not audible. No, sir, we are not able to hear you.

Hello? Yes, sir, please continue.

The Varun line has gone disconnected. He's there.

Just give him a moment. Just give us a moment.

Sure. Business development front, we have active conversations going on in Jamshedpur, something in Chennai, something in Bombay-Pune, in NCR.

I think we should get something done in a small thing in Jamshedpur, hopefully, sooner than later. Outside that in Bangalore, things are in advanced stages of discussion, but they're still in discussions.

I don't think we'll have any announcements in the coming quarter, but hopefully in the third quarter of this year, we should announce more transactions elsewhere.

Okay. That's it from my side.

Thank you.

Hi. Thank you for the opportunity.

I have few questions on the side of the revenue quality. My first question is what's the underlying run rate for bookings?

Is Q1 FY27's ₹358 crore closer to steady-state or is a big launch due later in FY27 to normalize the number?

Aditya, one thing, numbers in the deliveries are not given by launches. When you're talking about quarters, that's depending on handing over, and that's driven on OC.

For this year, I think we give our delivery schedule and the revenue schedule that's in the slide. He's talking about pre-sales.

Are you talking about pre-sales when you said 50 crores for the quarter or are you talking about revenue in the financial statement?

Or, when you in the financial state

I think he talked about pre-sales, 358 crores. You're talking about the financial statement?

You're talking about the reported revenue, right?

Yes.

Sorry. Yeah.

Reported revenues in slide 15 of the deck, we have given an indication of how much we expect to report this year, and this year is expected round about 2,000 crores of revenue is expected this year. Definitely Q1 at that number was not at all normal.

I would also say quarterly revenues for a real estate company and quarterly profits are not so valuable because revenues keep fluctuating depending on deliveries. Two projects, Ashiana Anmol phase three and Ashiana Amarah phase one, totaled to about 532 crores of revenue.

We got those OC, occupancy certificates, in the middle of July. They're coming in July, August, September.

We gave that update. If that occupancy certificate had come in on, let's say, 25th of June, we would have been able to recognize that entire revenue in June itself.

Since it came in on 15th July, everything is or the middle of July, not 15th, in the middle of July, everything is coming in the second quarter. Now that kind of fluctuation, I don't have any ability to control in our business, and that will remain.

Even Q1 was reflective and I would say Q2 may not be reflective as well. We should look at revenues and reported profits on a year-on-year basis.

Therefore, in our slide decks, we have given a sense of what kind of annual revenues should we expect. What we're trying to do is make sure those get met out in the year, that things don't slip from one year to the other.

I think that's the endeavor that the company has at this point.

Okay. Got it.

My another question is that according to my understanding, that the unit sold fell from 407 to 234 year-over-year even as ticket sizes rose. Is this deliberate or a genuine volume slow down?

Again, difficult to say. It's not deliberate.

Also, as I had indicated earlier, we have some lesser inventory in some markets. That had an impact.

The launch happened in July. I clarified earlier, by 31st July, our overall pre-sales for the year was 859 crores.

We have guided for about 2,200 crores this year, and I think we are on track to meet that guidance as of now. As I said, H1 we should exit probably 1,050, 1,100 crores of pre-sales, things are going all right.

Okay. Sir, and on the portfolio mix side, the ongoing portfolio mix has shifted to elite and premium homes at 36% versus senior living at just 23%.

Given Ashiana's brand is built on senior living leadership, is this a deliberate strategic pivot toward higher ticket premium homes?

No. Actually, if you look at our company, even though we were known for senior living, senior living was probably 10% of our business 5 years ago.

Okay? Let's say FY22 or '23 would have been 10% of our business, which has become 23.

If you look at deliberate pivot, I would again on the deck, I would urge you to go to slide number I think 20 slide number 19, which is our land available for future development. If you see the entire 5 million square foot is senior living.

Bangalore, which I just spoke about on the call, which will get added to this land available for future development, hopefully soon, is also senior living. A large part of the pivot is happening towards senior living.

Even in slide 18 of future projects, which is phases of existing developments, about 40%-45% of that is also senior living. This mix will change decisively in favor of senior living in the next 2 to 3 years.

Okay. Sir, and I have this last question that the kid-centric homes is concentrated almost entirely in Gurugram.

How are you thinking about the geographic concentration risk there, and versus diversifying to other cities?

We have done kid-centric homes in Jaipur as well and Bhiwadi as well. Then we have done Gurgaon.

Kid-centric homes as a concept, we are still sort of fine-tuning the recipe, if that's the way to put it, where we're learning how to differentiate the concept better as you go along. Like the senior living concept, we have differentiated, we have understood the model, we are in this zone of scaling it up.

Senior living, our first two really, really differentiated kid-centric homes projects are in Gurgaon. One in Amarah, we've just delivered phase one.

The Aaroham, we had just launched. I think it will take us a few more years, I would say 2, 3 more years to sort of figure out kid-centric homes better.

Once we have figured it out better, I think we'll take the path of really scaling that up and taking it to more and more cities as we go forward.

Sir. Thank you so much.

Thank you.

Hello, am I audible? Yes, ma'am.

Hi, Khushi. I wanted to ask about the Vadgaon Pune acquisition.

Can you walk us through the payback assumptions on the ₹1,800 crore Vadgaon project? What price per square feet and absorption pace are you underwriting currently?

I couldn't understand you fully, Khushi. The sound was a little muffled.

Can you repeat that, please, for us? Hello, am I audible now?

Yes, you are. Yeah.

Sorry to interrupt, Khushi. Your voice is not audible.

Oh, can you Hello? Am I

Khushi, I will say what I understood. Please say yes or no if I understood the question correctly.

You said the new Vadgaon parcel that we have taken up, you're asking what are our assumptions to be able to do 1,800 crores of revenue, and what kind of absorption, annual absorption to be expected in that project. Is my understanding correct?

Yes,

right, sir.

Okay. It's a 20 lakh square foot project, we are estimating about ₹9,000 to ₹10,000 of revenue per square foot on saleable area.

That translates into about ₹1,800 to ₹2,000 crores. That is our estimated at underwriting.

We expect to sell about 2 lakh square foot a year. That takes about a 10-year development timeframe.

It's a little longer development timeframe, but we hope to enjoy good margins here. That should take care of overall returns from that perspective.

If things go better than expected, then I would say we could do probably 3 lakh square foot a year and wrap up the project in about seven odd years.

Got it. Another thing, why is the NCD funding for this land parcel specifically, while internal cash accruals given are ₹785 crore net cash positioning at FY26?

The NCD financing was actually done by the landlords itself. The landlords wanted to have a partial revenue share position in the project.

They didn't want to sell it fully. They were keeping a very minority stake overall.

Therefore, in our view, we wanted to take the title of the full land. We didn't want to do a part JDA.

We said we'll do a full acquisition and we'll issue you debentures to basically mimic that. Basically they wanted to keep a 25% equity.

They've contributed 25% of the purchase value back to the debentures. We've agreed on a 6% revenue share for the remaining, they're getting 6% revenue share.

It was actually to structure the transaction and get it.

Okay. What is the expected launch time for this?

About 18 months, let's say this H2 of next financial year is when we expect to launch this.

Sir. Thank you.

Thank you, Khushi.

A small query. See, on the five, six projects what we are trying to acquire, what type of CapEx we are expecting?

In FY27 or let's say FY27-28 on the projects which are very near to completion? Or not near to completion, are you Near to completion means or near to acquisition, okay, whose deals go through.

We have a total budget of deploying about ₹800 crores in this financial year, including the about 180 that got deployed in the last quarter. We're looking to deploy 800 for the year total.

This includes all the deals we are talking right now? Means or there can be something which will

It includes the deal we have done in the last quarter and all the deals that we are in active conversations with and serious conversations with.

Once more thing, in some of the projects, historically, IFC also used to come, okay, or we had an agreement or with IFC. Is those agreements with IFC only for residential?

Means can they also be partner in senior living or they will be always on the other side? Those agreements still continues or it is over?

They are partner in senior living. They are actually a partner in Ashiana Vatsalya.

There they have provided capital there as well. The first platform, we had fully exhausted.

In the second platform, we were only able to deploy 100 odd crores into Aaroham, but the platform timeline has been over. We've not been able to deploy the rest just because by the time we timed some of the projects and what their criteria for investment in these other cities outside of Gurgaon were, we were not able to meet on the ticket sizes.

They have a upper cap of ticket size that they can finance of a unit. Gurgaon, we had some relaxations in place.

Like in Chennai, Ananya, or in Advait in Panvel, we were not, which were there where they could have deployed, we were not able to meet the ticket size requirements. Unfortunately, because of that, we were not able to go through.

Okay. Now there are no more let's say funds or agreement with them?

There is no active agreement with them. We are discussing with them how we can work together in the future.

It's a partnership I think both of us have enjoyed.

We are open to future deals.

We enjoy the kind of capital that IFC brings to the table. I think it works really well for an organization like us, and I think they've also enjoyed good returns on the projects that we've been able to do.

We are actively discussing if we can do further capital deployment.

Okay. Thank you from my side.

Thank you.

Thank you. Just two questions.

First, that you said that you're trying to make the business less cyclical. Just wanted to have a broad understanding that what could be the low and high of pre-sales year-on-year, just a broad understanding, if you could.

Second is, in case of multiple projects, how does operating leverage work? I got a sense that if it's a big project, then it will work.

You are across so many geographies, how would operating leverage work? That's all.

Nikhil, two things. One, I don't know what the high and the low of a cycle would be.

I think at some point in time, couple of years back, we were looking at this number, and the idea was to look at a higher top and higher bottom, what we typically call in case of a capital market cycle as well. Then that was a while ago.

We looked at a number of something like 10 lakh square foot. That is the minimum that we need to kind of break even.

Then after that, our product portfolio has changed. The component of senior living has been increasing.

I think we'll need to take a fresh look as to what is the kind of number that we look at the minimum number in any kind of cycle and the maximum number we can go to, so.

Nikhil, as the intent has become that how do we get to a place where we can make 15% ROEs a floor in the organization. I think at first it was an aspiration to get there.

We got there on an economic basis 2, 3 years ago. We on a reported basis last year.

I think what we are looking to do is create a floor in the business of 15% return on equity. Therefore, we are trying to get it more structural products in the portfolio, where we think senior living has got structural tailwinds behind it as India's demographics change and I would say also the first real private sector children's of liberalization start retiring, economic liberalization of '91.

I think that's what we are playing at. I would be very hard to give a bottom or a top.

In terms of operating leverage, I think operating leverage plays out in two ways. One at the company level.

I think Vikash ji, when he was talking about operating leverage, he's talking about at the company level. There are a lot of fixed costs at the company level.

The second way it also plays out is at the location level. If you see for any developer, they have a lot of location strength, location brand.

For us also, as we do more products in a location, our marketing costs fall. Let's say Chennai, it used to be around 8% in Ashiana Shubham, and we are now down to about 4 4% to 5% of sales and marketing costs.

As we get more steadier in a location, those things also come down. Then larger projects also help where approvals are one time, designing is one time.

As the phases get delivered later, we should capture some value that we have created in the product through increasing prices. There are three sort of different levers playing out at different points of time.

That's what's happening over there.

Yeah. Thank you very much.

Thank you, Nikhil.

Hello?

Varun. Haan

sir, mere ko ye jaanna tha ki Anmol aur aapka Anmol phase three aur Amarah phase one mein matlab approximately net margins kitna hai, sir?

Individual project to individual margins honge, but low margin hai dono. Anmol phase three bhi lower margin hai, Amarah phase one bhi relatively lower margin hai because Amarah as a project has very good margins, but phase three onwards margins are substantially better in Amarah.

Would be hard to comment a net margin. I don't know how to define a project level net margin, but gross profit margin blended between Anmol and Amarah should be in the mid-20s.

That is pre still selling cost and general administrative. We should be in the mid-20s.

I don't think we are at the 30 level also that we expect to get. Blended across both those projects, we should be in the mid-20s.

Anmol 3 mein what we can tell you is ki hamara jo margin hai gradually phase over phases improve hua. Q1 ke muqabale Q2, Q3 mein thoda pricing better hua, improve hua, but still they were at a Phase one, two, three.

Phase one, two, three, I'm talking about, Anmol. Toh phase three mein margin uske pehle wale quarter pehle wale phases se better tha, but still overall lower tha.

Yes. Aur jaise ab ye phase one ki Amarah ki possession aa gaya hai, toh isme jaise hamara phase one four aur phase five mein abhi maal bacha hua hai, toh usme farak padega kuch?

In what way? Matlab

selling hard ho jaayega jaise phase one

mein agar resale aa gaya toh? Lekin uska dusra pehlu bhi hai ki phase one ready hai toh hamare actually visits badh gaye hain.

Hamara clubhouse ready hai dikhane ko, landscape hai dikhane ko, hamara learning hub hai dikhane ko. Toh jo hum pehle sirf plan se bech rahe the, model se bech rahe the, ab hum woh reality se bech rahe hain.

Dusri cheez, hamare yahan end users zyada hain kyunki humne Gurgaon market mein resale without registry allow nahi kari thi ya without possession allow nahi kara tha. Toh shuru mein hi jo actually investors the jinko resale mein bechna tha, woh kam hi aaye.

Kuch aaye, but kam aaye. Toh overall resale ka stock bhi as a proportion of phase one should be not more than 20%, I would say, as compared to where 80%-90% of Gurgaon sales by other developers is to be traded later.

Toh mujhe utna pressure nahi dikhta actually.

Thanks sir.

Thank you. That's all.

Thank you all for participating in this earnings conference call. We remain focused on timely handovers in FY27 and on building long-term value through disciplined execution and customer-centric development.

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