Pipeline growth delayed; margins compressed mid-execution

Revenue down 7.8% YoY; PAT down 33.7% YoY

Gross margins at 29.1%, confirmed; but EBITDA margin at 18.9% vs historical 26-27%

Prior guidance was 27-28%; current guidance of 25-26% is a reduction

Pipeline confirmed at ₹12,800 Cr across 4.2M sqft; but FY27 pre-sales guidance of ₹1,000 Cr implies only 8% implied growth

Pre-sales up 9% YoY; but guidance was 20-25% revenue growth, so 9% pre-sales growth is soft

Prior 27-28% target → now targeting 25-26% for FY27. Management attributes to employee cost expansion (213→277 headcount, +30%) and lower investment income. Acknowledged cost inflation absorption challenge.

Q1 actual revenue ₹147 Cr down 7.8% YoY vs prior 20-25% growth guidance. Pre-sales up only 9% YoY, signalling soft near-term momentum.

Development pipeline now ₹12,800 Cr (up from ₹12,000 Cr prior). FY27 launch plan ₹3,000 Cr (2x historical ₹1,500 Cr), with ₹5,000+ Cr planned for FY28.

Net debt only ₹5 Cr, net debt-to-equity 0.01x. Unchanged; provides flexibility for construction finance, not equity raises.

Gross margin stable at 29%. EBITDA decline due to lower other income and higher employee costs. We expect to maintain EBITDA margin of 25-26% over the year.

No delays. Wireless station in Dahisar currently restricts building approvals due to height limits. Station shifting to Madh Marve expected FY27, approvals FY28, launch FY29. MOU already signed with society.

Shift from ₹1,500 Cr to ₹3,000 Cr launches is 100% growth. Next year ₹5,000+ Cr launches planned. These are spikes in growth.

Projects at various stages. BD starts, then approval, then launch, then construction. Q3: Malad redevelopment ₹750 Cr. Q4: Thane ₹2,000 Cr. Santa Cruz already launched. Combined ₹3,000 Cr potential.

Construction cost inflation absorbed by incremental unit prices, balances out. Outright projects already paid for. Near net-debt currently. May opt for construction finance at lower rates if needed.

Very disciplined in acquisition. Don't do fancy acquisitions, focus on value transactions with healthy margins. Each manager has clear role (redevelopment, outright, JDAs).

₹3,000 Cr completes over 4 years = ₹750 Cr/year avg. Historically ~20% sales upon launch = ₹600 Cr, conservatively ₹500 Cr. Q3-Q4 launches don't yield full-year benefit.

Present only in mature, established markets (e.g. not SRA/weaker segments). Aspiring segment focus. Redevelopment will be higher due to land scarcity in MMR and abundance of older buildings.

₹3,000 Cr launches planned Q3-Q4 expected to yield ~₹750 Cr/year on 4-year completion cycle. Q3-Q4 partial-year sales conservatively pegged at ₹500 Cr. Dependent on successful launch execution.

Includes Filmistan and 2 additional major projects. Full-year benefit should drive higher pre-sales, but Filmistan approval/execution timeline not confirmed. Macro dependent.

Current Q1 EBITDA margin 18.9% due to employee cost spike (213→277 headcount, +30%) and lower investment income. Management attributes to temporary factors but provides no timeline for normalization. Risk of further compression if employee costs remain sticky.

Q1 PAT margin 13% vs 18-19% target. Management did not re-confirm PAT margin guidance this call. Margin recovery dependent on scaling revenues and absorbing employee cost headwind.

Land acquisitions funded. Construction finance preferred over equity to avoid dilution. Net-debt minimal at ₹5 Cr, flexibility intact.

₹3,000 Cr FY27 launches (Malad ₹750 Cr, Thane ₹2,000 Cr) are 2x historical scale. Coordination, approvals, and construction ramp-up untested. Delays would compress FY27 pre-sales materially.

EBITDA margin at 18.9% vs 26-27% historical; guidance cut to 25-26%. Employee costs spiked 30% (213→277 headcount). Fixed-cost absorption lag could persist if revenue growth remains soft.

Pre-sales up only 9% YoY (₹155 Cr) vs prior revenue guidance of 20-25% growth. Soft pre-sales momentum suggests FY27 pre-sales target of ₹1,000 Cr may be at risk if new launches underperform.

Anand Nagar (top-3 GDV project) delayed to FY29 due to wireless station relocation in Dahisar. Filmistan approval timeline not confirmed. Height-restriction regulatory changes in MMR could impact other projects.

Large-scale launches may require construction finance; interest-rate risk if borrowing costs rise. Currently at net debt ₹5 Cr but leverage could spike during peak construction period.