Aditya Birla Real Estate Ltd

- The company’s net debt as of the report is INR 3,500 crores with a comfortable net debt to equity ratio of around 0.8. - They have significant capacity to take on more debt if needed. - Out of the net debt, some portion includes construction finance and loan against rentals for fully leased assets. - Cash flows are strong, so net debt levels are expected to remain very comfortable. - No explicit mention of immediate plans for new equity fundraising. - The focus remains on business development and cautious risk-taking, with no aggressive leveraging indicated. - The sale of paper business will bring in cash, further strengthening cash flows. - Overall, the company is cautiously and prudently managing debt with strong cash flow backing, but has capacity and willingness to raise additional debt if opportunities arise.

- The company is progressing on the design for their commercial project in Niyaara, approx. 1 million sq ft, and is on the lookout for a partner to share the intensive capital required for commercial development. - They are seeking similar prime commercial land parcels in Mumbai and NCR for future commercial projects, contingent on securing strong partners. - The commercial portfolio currently generates about INR144 crores in gross rentals annually, with a target to expand to INR1,000 crores in 4-5 years. - Land acquisition and related investments for ongoing and upcoming projects have totaled approx. INR4,500-5,000 crores, including payments for land, approvals, designs, etc. - Some small land payments remain for Thane and Pune projects, fully funded via SPVs with IFC joint ventures, requiring no further commitment. - Focus on launching new project phases (Niyaara Tower C, Thane, Pune) with expected capital deployment spread over coming quarters.

- The company maintains a growth guidance targeting INR 15,000 crores GDV in deals to be closed before March or by March 31, 2026, across multiple markets including NCR, Mumbai, Pune, and Bangalore. (Page 15) - Sales guidance for FY '26 remains optimistic with confidence to exceed last year's presales target, supported by multiple launches planned in Thane, Hindalco land, Arika, Boisar, Pune (Punya), and Bangalore (Evara). (Page 4, 15) - The target is to reach a GDV of INR 150 billion by FY '28, supported by a strong pipeline and business development activities. (Page 11) - Upcoming phases and projects like Niyaara Tower C, new phases in Birla Evam Pune, and India Hume Pipe project in NCR are expected to contribute significantly to revenues. (Pages 7, 15) - Positive demand outlook in core markets with robust sales velocity expected in luxury and premium segments, supported by improved mortgage rates and expanding mid-segment demand. (Page 11) - Commercial leasing income is targeted to expand from INR 144 crores currently to around INR 1,000 crores over the next 4-5 years. (Page 7)

- The company is confident of achieving its guidance of INR150 billion in revenue by FY '28, reflecting a 25% growth. - Revenue recognition will start picking up mainly after FY '27, with projects like Birla Tisya and new phases in Navya slated for handover. - Tower 1 of Niyaara is expected to recognize revenue by FY '28, with Tower 2 following a year later. - Profit margins are targeted in the range of 25% to 30%, with some owned projects exceeding 40%. - The company expects strong operational cash flow, citing positive cash flow and minimal construction loans. - Launches are expected to be more evenly spread across quarters in the future to sustain growth. - Expansion in leasing portfolio aims to grow rental income from INR144 crores currently to INR1,000 crores in 4-5 years. - Overall, management expresses strong confidence in resilient demand across key markets supporting future earnings growth.

- The company has a strong pipeline of projects lined up for FY '27 and beyond, including new phases of existing projects like Niyaara, Trimaya, Punya, Navya in NCR, Thane, and Evam in Pune. - They are targeting deal closures amounting to a Gross Development Value (GDV) of INR 10,000 crores to INR 15,000 crores before March 31, 2026. - Last year, they finalized projects worth INR 25,000 crores. - The ongoing projects have a GDV of approximately INR 70,000 crores. - The company emphasizes cautious and rigorous due diligence before finalizing deals, aiming to maintain quality and avoid risks. - A notable land parcel (6 acres) owned by BMC offers a competitive advantage, and the company is exploring legal means or partnerships to acquire it despite not qualifying directly under tender conditions. - The company expects to launch phased projects and gradually diversify launches across quarters moving forward.