Record presales mask execution risk; margins depend on Q2-Q4 completion

Real estate revenue ₹1,107 Cr (60% YoY). ₹3,656 Cr is presales, not revenue—recognized when project completes.

Q1 NPM 3.8%, EBITDA 9.7%. Management targets 17-20% EBITDA by Q4 but Q1 compressed vs prior year.

Confirmed ₹1,924 Cr operational cash inflow. Collections 8.2% YoY growth. Q1 lag due to timing and labor shortage milestone delays.

Confirmed gross debt ₹1,110 Cr, cash ₹1,769 Cr, net debt ratio -0.14. Balance sheet strength evident.

Projected receivable ₹31,000 Cr, remaining cost ₹19,000 Cr, margin cash flow ₹12,000 Cr. Visibility real but margin realization depends on execution.

Q1 presales ₹3,656 Cr is record high. 8.2M sq ft launches planned for 9 months. On track but execution risk on timing.

Q1 presales ₹3,656 Cr is record high (76% YoY). Guided ₹15,000 Cr GDV from 10M sq ft pipeline in FY26; on track or better.

FY26 guidance promised 'significant P&L margin expansion' particularly H2; Q1 shows 3.8% NPM vs. implied higher in prior Q4. Target 17-20% EBITDA by Q4 is ambitious, unproven.

Forthcoming projects margin cash flow fell from ₹86 Cr to ₹68.3 Cr (₹295 Cr GDV). Greater joint-dev mix vs. owned-land (which had Hoskote at higher margins).

Karnataka 60% minimum wage hike (May 2026) not yet quantified. Management plans to absorb within budget but execution risk.

Mumbai 1.3 acres (₹180 Cr); Greater Noida JD (₹2,700-3,000 Cr GDV combined). Expands footprint beyond Bangalore-NCR duopoly.

Targeting at least 30% presales growth; can do better if launches on time. 8.2M sq ft launches = ₹12,000 Cr GDV at ₹15,000/sq ft. Timing: Q2 has 3 projects (Kerala, Bangalore plotted); Q3-Q4 remaining.

Timing: new sales came end of quarter (Q2 cash). Milestone billing lower due to April-May labor shortage, will catch up. ₹2,000 Cr OCF is aggregate multi-year marginal cash flow; should touch it as we grow.

Greater JPD mix (landowner share reduces our margin). Hoskote (high-margin own land) removed from portfolio. This is natural as we do more JDs.

45% of ₹3,656 Cr presales from One World. Released 3.4M sq ft, sold 40% at launch = ~₹1,600 Cr; ~₹200-300 Cr spillover to Q2.

Q2 may be similar or better depending on completions. Q3-Q4 sequentially improve as high-margin projects hand over. Currently 9.7% EBITDA; target 17-20% by Q4.

Plan 6-6.5M sq ft completion vs 5.4M last year (20% higher). Will provide project list separately, Fenil.

Under evaluation. Technician force mostly above minimum wage. Will have some impact but should absorb within project budgets.

Q1 ₹3,656 Cr is record high (76% YoY). 8 remaining projects (8.2M sq ft) planned Q2-Q4. On track or ahead.

Average realization from Q1: ₹15,655/sq ft. Pipeline projects at similar pricing. Credible.

Depends on completing 'high-margin projects from FY23.' Q1-Q2 likely 9-10% EBITDA; H2 recovery via project completions. No project-level detail provided.

Q2 'may be similar' depending on completions; Q3-Q4 'should become better.' Hedged language; unproven recovery path.

Already ₹370 Cr in Q1 (higher than normal run rate). ₹600-700 Cr remaining for Bangalore/NCR opportunities. Deal-dependent.

Execution-dependent. Q1 completed 1.08M sq ft; on pace if labor constraints ease.

17-20% EBITDA target by Q4 requires high-margin projects to complete and handover on schedule. Q1 labor shortage delayed milestones in April-May; similar delays in Q2-Q4 would push margin recovery to FY28.

Karnataka minimum wage hiked 60% in May 2026. Management said technician force is 'largely above minimum' but impact 'yet to be assessed.' If not fully absorbed in project budgets, may pressure margins.

Q1 presales ₹3,656 Cr but collections only ₹1,756 Cr; management blamed milestone delays (April-May labor shortage) and sales timing (came end of quarter). If delays persist, OCF targets at risk.

Shift toward joint developments (JDs) reduces per-project margins. Forthcoming projects margin cash flow fell from ₹86 Cr to ₹68.3 Cr despite similar GDV. Hoskote (owned land, high margin) removed; JPD mix now higher.

8.2M sq ft launches planned over 9 months (Q2-Q4). Management confident but no buffer disclosed. Delays to launches = delay to H2 margin recovery.

Mumbai land acquisition (1.3 acres, ₹180 Cr) timeline uncertain due to approvals and regulatory complexity. Not included in FY27 launch guidance. May slip to FY28.