Strong presales growth masked by collection weakness, rising debt

Delivered revenue ₹144.7 Cr, PAT ₹22.9 Cr, OPM 36.8%

Presales strong, but collections down 25% YoY from ₹115 Cr

Presales up 74% but residential sales mix down YoY; low inventory (22,000 sqft unsold residential vs 1.4 lakh commercial)

Mgmt stated internal guidance higher; guided conservative ₹700 Cr

₹1,400 Cr (prior Q4 FY26 call) → ₹1,600 Cr (this call); +₹200 Cr addition to supply.

Prior call: 'positive outlook' (vague). This call: 10–15% growth (specific). Clarified but not raised; Q1 delivered 9.2%, tracking low end of range.

Prior call deferred presales guide. This call: ₹700 Cr FY27 presales guided, but mgmt noted internal target higher → conservative public stance.

₹614 Cr net debt stated; rising for business development (launches, acquisitions). Deleverage timing not quantified; mgmt said 'temporary rise, then down.'

₹1,600 Cr total: ₹240 Cr Q2, ₹800–880 Cr Q3, ₹480 Cr Q4; commercial largest contributor near-term; Suraj Nova (residential) to drive Q2–Q3.

Two balance conveyances pending, underway; launch pipeline will be FY28, not FY27.

Limited luxury inventory in ongoing projects; commercial and value-luxury seeing traction; luxury projects coming (in talks with societies).

Initial capex ₹300–350 Cr from internal accruals (no borrowing for land); CF or NBFC tie-up closer to launch; debt will rise for launches, then stabilize.

Concession plan approved for amalgamated portion; top-line ₹800 Cr coming in Q3 post-RERA amendment; strategy is continued selling & momentum.

10–15% growth vs prior year (FY26 base); subject to launch timing.

35–37% range.

Targeting at least 1 lakh additional sqft minimum; guidance will be portfolio-level, not project-isolated; seeing good traction.

Targeting ₹700 Cr presales; internal target higher, but guiding ₹700 Cr publicly.

Gross ₹646.94 Cr, cash ₹33.03 Cr, net debt ₹613.91 Cr (~₹614 Cr).

22,000 sqft unsold residential, ₹109 Cr estimated GDV.

1.4 lakh sqft, ₹841 Cr GDV; total portfolio ₹950 Cr unsold.

Mainly because of low inventory.

No timeline until plot acquired; target completion before end of FY27; BMC process not an issue.

We can discuss offline, Ishita.

Debt will rise initially due to ₹1,600 Cr launch pipeline, but will come down on sustainable basis given good sales traction in commercial and value-luxury.

Not yet; deals standard; not offering extra area; builders known in the area have advantage.

Avg ₹50,000/sqft achieved; will appreciate as project progresses; focus now on velocity not pricing; will raise prices post-RCC stage.

Subject to project launch timing; Q1 at 9.2% YoY suggests tracking low end of range; dependent on presales absorption and collections conversion.

Q1 achieved 37.5%; range wide and defensible; mix of commercial (higher margin) and residential (mixed) support.

No explicit capex guidance for construction/development spend; Bandra funding from internal accruals claim undercuts cash-flow deleverage narrative.

₹86 Cr collections this Q vs ₹115 Cr prior year; presales ₹141 Cr (+74%), but conversion lagging. Working capital build or demand deceleration unresolved; OCF target deferred.

Net debt ₹614 Cr; rising for ₹1,600 Cr launch pipeline + ₹300–350 Cr Bandra premiums. Management claims internal accrual funding, but collections down 25% and OCF not quantified. Deleverage 'sustainable basis' is undefined.

Two of three land conveyances for Bandra large project pending; no clear timeline. Launch deferred from FY27 to FY28. Regulatory delays (BMC amalgamation) could further slip milestone.

22k sqft unsold residential (₹109 Cr GDV) vs 1.4 lakh sqft commercial (₹841 Cr GDV). Residential sales down YoY; management blamed low inventory. New residential launches (Nova ₹180 Cr, Madonna ₹60 Cr, luxury TBD) must absorb pent demand or sales growth stalls.

Presales guidance ₹700 Cr for FY27; management stated internal target higher but guided conservatively. Suggests either demand uncertainty or management caution on execution.