Aditya Birla Real Estate Ltd (ABREL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to Aditya Birla Real Estate Limited Q2 FY '27 Earnings Call. As a reminder, all participants' line will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing "*" then "0" on your touchtone phone. Please note that this conference is being recorded. I now hand over the conference to Mr. Karan Khanna from Ambit Capital Private Limited. Thank you, and over to you.
Karan Khanna (Ambit Capital Private Limited): Thank you, Iqra. Good evening, everybody. On behalf of Ambit Capital, I would like to welcome you all to the Q2 and H1 FY '27 earnings conference call of Aditya Birla Real Estate. From the management team, we have with us today Mr. R.K. Dalmia, Managing Director, Aditya Birla Real Estate; Mr. K.T. Jithendran, MD and CEO, Birla Estates; and Mr. Keyur Shah, CFO, Aditya Birla Real Estate. I will now hand over the call to the management team for the opening remarks, post which we will have the forum open for Q&A. Thank you, and over to you, gentlemen.
R.K. Dalmia (Aditya Birla Real Estate Ltd): Thank you, Karan. I am R.K. Dalmia. A very good evening to you all. India's economy maintained strong momentum in Q2 FY '27, supported by resilient domestic demand and investment activity. Q1 FY '27 GDP growth stood at 7.8%, ahead of the RBI's earlier estimates, with healthy PMI
R.K. Dalmia (Aditya Birla Real Estate Ltd): readings and GST collection. Reflecting this resilience, RBI revised its FY '27 GDP growth forecast upward to 7.1%. The external environment continued to face headwinds from geopolitical tension, elevated energy prices and tighter financial conditions. Headline CPI inflation rose to 4.45% in July to 5.4% in September. Nonetheless, the domestic growth demand remains supportive of the real estate sector. MMR remained the largest residential market with sales of approximately INR 59,500 crores, up to 11% YoY. Pune and Bengaluru also maintained healthy momentum and with absorption growing 3% YoY and prices increased 3% in Pune and 8% in Bengaluru. Together, MMR, Bengaluru, Pune and NCR accounted for around 65% of pan-India sales by value. The commercial office segment remained strong in Q2 FY '27, leasing of approximately 21 million square feet, up to 6% YoY, taking nine-month leasing to a record 66.4 million square feet. GCCs remained the key demand driver, according accounting for around 41% of leasing, along alongside robust demand for Grade A and green-certified assets. Against this backdrop, we delivered a strong H1 FY '20- FY '27 performance. The total income increased 309% YoY to 355 Cr, including 268 Cr in Q2, up 75 755% YoY. Collection increased 39% YoY to 1,465 Cr in H1 FY '27 with Q2 collections of INR 752 crores, up 47% YoY. We also crossed the landmark milestone of 10,000 crores in cumulative collection across our project. Our profitability, Birla Tisya recognized EBITDA of INR 181 crores at a 28% EBITDA margin, while Birla Navya contributed INR 39 crores at 35% EBITDA margin. Our financial position also strengthened, with CRISIL improving BPL's credit outlook from AA Stable to AA Positive. Q2 FY '27 booking value stood at 298 crores, with Birla Saranya and Birla Niyaara in MMR being the largest contributors, supported by sustenance sustenance sales across our key market. Our business development, in October '26, we announced JD of 5.6 acres prime residential land parcel in Hinjewadi Phase 1, Pune, with GDV potential of around approximately INR 1,650 crores, further strengthening our Pune portfolio and future development pipeline. At our flagship Worli development, we have chosen to redesign Tower C to unlock its full potential. The revised plan add approximately INR 1,900 crores of net GDV as expected to be highly accretive of profitability. While the resultant differment deferment of the launch to the next financial year may hinder current presales, this reflects our disciplined focus on long-term shareholder value over near-term launch timelines. We continue to strengthen our redevelopment portfolio and are in active discussion to close additional opportunity across high-demand MMR micro market. That remains of important avenue of this remains an important avenue of growth, supported by trusted partnership and disciplined capital allocation. ESG remains integral part of our operation. In 2026 G- GRESB assessment, Birla Estate
R.K. Dalmia (Aditya Birla Real Estate Ltd): 85.9 out of 100, and a five-star rating for standing investments, and 100 out of 100 for development. We were recognized as a Global Sector Leader in both benchmarks and ranked first in Asia for management score. Looking ahead, we remain focused on disciplined growth and consistent execution, supported by a strong balance sheet and a robust opportunity pipeline. Our priorities are to expand selectively across key markets, deliver high-quality development, strengthen our portfolio through business development and redevelopment, and create sustainable long-term value for all stakeholders. Thank you. We will now open the floor for Q&A.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Jenam Shah from Equirus Securities. Please go ahead.
Jenam Shah (Equirus Securities): Hello, am I audible?
Moderator: Yes, sir.
Jenam Shah (Equirus Securities): Yes. Hi, sir. Sir, my question would be firstly on the pre-sales, so we did around 300 Cr of pre-sales. What could be the cancellation during this particular quarter across the projects, and what could be our gross pre-sales for the particular quarter?
K.T. Jithendran (Birla Estates): Now, I think we are not We are really talking about net sales only, so we don't track the gross. So, I think you know, it suffices to say that you know, we the focus is really on net sales. So, the net sales has been about 300 crores, 298 crores. Given our current inventory, I think it's been a steady performance. And once the launches start kicking in, I think we will really accelerate on this.
Jenam Shah (Equirus Securities): Got it, sir. One more thing, sir, just wanted to understand one thing, which is like our collections is largely line with our construction like we have all the collections linked with the construction. Is this understanding correct?
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