Aditya Birla Real Estate Ltd

Financial Performance

• Collections Rs 713 crores in Q1 FY27, up 31% YoY from Rs 445 crores
• Net sales Rs 329 crores; cancellations partially dented net, gross sales higher
• Birla Taranya booking value over Rs 1,000 crores within first 3 months of RERA approval
• Sustenance booking value Rs 150 crores in MMR across Taranya and Mrida
• Niyaara Phase-2 cancellations: 4 cancellations; rebooked at higher prices

Operating Trends

• Residential absorption led by premium locations; Bengaluru strong, Mumbai premium demand stable
• Commercial office leasing remains robust; high-quality locations favored
• Launch cadence subdued this quarter; majority planned for Q3/Q4
• Strong BD feedback on premium micro-markets across NCR, Mumbai, Pune, Bengaluru

Balance Sheet & Cash Flow

• Divestment of Century Pulp and Paper to ITC reduced net debt to nearly zero
• Net debt position described as nearly zero; 98% collection efficiency achieved
• Rs 283 crores total cash outflow on land approvals and deposits
• Rs 125 crores land outflow (Thane); net deposit outflow Rs 151 crores
• FY27 construction cost guidance Rs 1,200–1,300 crores

Projects & Capex

• Vashi redevelopment GDV ~ Rs 2,600 crores; total residential redevelopment portfolio ~ Rs 4,300 crores
• Birla Niyaara commercial: 1.3 million sq ft; approvals by year-end; leasing ~Rs 800 crores p.a. when stabilized
• Niyaara launch plan: RERA by end of Q2; launch early Q3 or mid Q3
• Niyaara Phase-2 net sold: 118 flats to date
• ABREL share for Vashi redevelop: 90% to ABREL; margins 25–30%

Outlook & Guidance

• Long-term pre-sales target: Rs 15,000 crores over three years
• BD pipeline > Rs 60,000 crores; premium markets emphasized
• FY27 launches planned: Rs 9,600 crores (track on approvals and timelines)

Q&A Highlights

• Three-year BD target of Rs 15,000 crores; quarterly deals unpredictable
• Niyaara timeline: possession targeted around Mar-2028; handover in late 2028
• Noida land auctions pursued; NCR markets selective with pricing discipline
• Tiered margins: redevelopment margins around 25–30%; large-format deals pursued prudently
• Cash posture: majority outright BD; surplus liquidity used with disciplined risk controls

CP Repayment Details

• CP of Rs 200 crore fully redeemed and paid on 18 August 2026.
• ISIN: INE0SSA14KO9.
• Scrip codes: 500040, 731709.
• Reason for redemption: Maturity.

Rating Details

• Long-term rating reaffirmed: AA/Stable for Aditya Birla Real Estate.
• Short-term rating reaffirmed: A1+ for Aditya Birla Real Estate.
• Rating Watch with Developing Implications removed by CRISIL.
• Outlook remains Stable.

Meeting Details

• Virtual group earnings conference call with investors on 14 August 2026 at 11:00 AM.
• Organizer: Aditya Birla Real Estate Limited.

Participants

• Key company participants: management executives to discuss Q1-FY27 earnings.

Purpose

• Purpose: earnings/results discussion and investor interaction.

Availability

• Audio recording of the earnings call will be accessible.

Rating action and key ratings

• Long-term rating reaffirmed: Crisil AA/Stable; removed from Rating Watch Developing.
• Short-term rating reaffirmed: Crisil A1+ for bank facilities and CP.
• Total rated facilities: Bank loans Rs 2,569 crore; NCDs Rs 1,000 crore; CP Rs 1,000 crore.
• Outlook on ratings: Stable.
• Sale of pulp and paper undertaking to ITC completed on Aug 1, 2026.
• Proceeds used partly for debt repayment; balance to liquidity and real estate growth.
• Scheduled repayment of Rs 300 crore in FY2027; to be funded by cash flow and refinancing.
• Liquidity: net cash accrual Rs 2,444 crore; mutual funds ~Rs 1,400 crore; unencumbered cash Rs 400-500 crore.
• Geographic and project risk: heavy Bengaluru exposure; GDV focus in MMR with diversification.
• AB group support remains a key rating strength; governance and financial risk profile stable.
• ESG profile supportive of credit risk; ABREL benefits from Birla brand and steady CRE cash flow.

Vashi redevelopment project

• Redevelopment of Shiv Sai Co-operative Housing Society in Vashi; joint venture with Priyanka Group affiliate.
• Total revenue potential approximately ₹2,600 crore.
• Land parcel of 3.06 acres (~12,382 sqm) for premium and luxury residences.
• Strategic Vashi location with direct Sion-Panvel Highway access and Vashi station proximity.
• Gold Line metro alignment expected to improve connectivity.
• Development aligned with Birla Estates sustainability commitments.
• First Navi Mumbai market entry for Birla Estates in redevelopment space.

Business overview

• Core business: premium residential and select commercial real estate under Birla Estates.
• Strategy: land sourcing via outright purchases and JV/JDA partnerships.
• Pan-India footprint across MMR, Bengaluru, NCR, Pune with growing commercial portfolio.
• Strategic alliances: IFC investment (₹420 Cr) and Mitsubishi Estate JV for residential projects.
• CPP divestment to ITC completed on 01 August 2026.

Operational highlights

• Q1 FY27 collection value ₹713 Cr; up 31% YoY.
• Booking value ₹329 Cr; Pune contributor 36%.
• Birla Trimaya Phase-4: 91% inventory sold in two quarters.
• Pune bookings ₹119 Cr; NCR Birla Navya Phase-6 ₹42 Cr.
• Century Pulp & Paper sale concluded 01 Aug 2026.
• FY27 pipeline: GDV ₹9,596 Cr across 9 projects; 3.3 Mn saleable area.

Financial performance

• Total Sales ₹189 Cr; Total Income ₹206 Cr in Q1 FY27.
• EBITDA ₹-38 Cr; PBT before JV share ₹-83 Cr.
• PAT continuing operations ₹-67 Cr; PAT from discontinued ₹32 Cr; Total PAT ₹-35 Cr.
• Gross debt ₹5,824 Cr; Net debt ₹3,438 Cr (IFC ₹420 Cr included).
• Cash ₹155 Cr; Mutual funds ₹1,337 Cr; RERA balances ₹894 Cr.
• ABREL: NCDs AA stable; CP: A1+. BEPL: AA stable; Short-term A1+.
• Operating cash inflow ₹700 Cr; Net operating cash flow ₹52 Cr.
• Total net cashflow (A+B+C) ₹-144 Cr; final cash decrease ₹-58 Cr.

Capital structure & liquidity

• Gross debt ₹5,824 Cr; Net debt ₹3,438 Cr (IFC ₹420 Cr included).
• Liquidity: cash ₹155 Cr; mutual funds ₹1,337 Cr; RERA balances ₹894 Cr.
• Credit ratings: ABREL AA stable; BEPL AA stable; CP A1+; BEPL short-term A1+.
• Liquidity trend: quarterly net cash usage ₹58 Cr.

Strategic priorities & outlook

• FY27 pipeline GDV ₹9,596 Cr; 3.3 Mn saleable area.
• Total portfolio GDV ₹73,858 Cr; saleable area 34.7 Mn Sq Ft.
• Alliances with IFC and Mitsubishi to accelerate Pune/Thane and Bengaluru delivery.
• CPP divestment enables greater focus on core real estate assets.
• ESG actions: 50 kW solar plant; SBTi validation process; climate risk assessments at four sites.

Risks & governance

• Real estate cyclicality risk; mitigated by geographic diversification and JV structures.
• Regulatory risk managed via governance, disclosure, and ESG data initiatives.
• ESG data digitization via Enablon enhances reporting accuracy.
• No major management/board changes disclosed in this filing.

ESOP Scheme approval

• Board approved ABREL ESOP Scheme 2026 through the CTIL Employee Welfare Trust.
• Subject to shareholder approval by postal ballot; notice to be issued.
• Aggregate options proposed: 8,29,000 equity shares, about 0.74% of paid-up capital.
• Scheme to operate under SEBI SBEB Regulations, 2021, as amended.
• Explanatory statement to disclose details in the Postal Ballot Notice.