Analyzing...
MR. HARSH PATHAK – EMKAY GLOBAL FINANCIAL SERVICES LIMITED
Ladies and gentlemen, good day, and welcome to Puravankara Limited Q3 and 9 Months FY '26 Conference Call hosted by Emkay Global Financial Services Limited. As a reminder, all participant lines 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 star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Harsh Pathak from Emkay Global Financial Services. Thank you, and over to you, sir.
Yes. Thanks, Rudra. Good morning, everyone. I would like to welcome the management of Puravankara Limited and thank them for this opportunity. We have with us today, Mr. Ashish Puravankara, Managing Director; Mallanna Sasalu, Chief Executive Officer, South; Mr. Rajat Rastogi, Chief Executive Officer, West and Commercial Assets; and Mr. Neeraj Gautam, Chief Financial Officer. I shall now hand over the call to them for the opening remarks. Over to you, gentlemen.
Thank you, Harsh. Good morning, everyone. I'm Neeraj Gautam, CFO of Puravankara Limited, and I welcome you all to Puravankara Limited's earnings conference call to discuss the performance for the third quarter and 9 months ended FY 2026. The financial results, investor presentation and press release have been filed with the stock exchanges and is available for your reference.
I will begin with a brief overview of the macroeconomic and sector environment followed by the company's operational and financial performance for the third quarter and 9 months ended FY '26. India's macroeconomic environment continues to remain resilient despite ongoing global uncertainties, supported by strong domestic consumption, sustained government capital expenditures and a stable policy framework.
India remains one of the fastest-growing major economies globally, Referencing the strength, the Reserve Bank of India has revised its FY '26 GDP growth estimates upward to 7.4% from its earlier estimate of 6.5%, supported by robust economic momentum, including a strong GDP growth of 8.2% in Q2 FY '26 and easing inflationary pressure.
On the residential real estate front, end user demand continues to remain resilient, aided by interest rate cuts and income stability, while aggregate housing sales across the top 8 cities moderated marginally on a year-on-year basis, underlying market fundamentals remain stable.
Buyer preferences continue to shift towards mid and premium segments with homes pricing above INR10 million, accounting for approximately 50% of total residential sales, highlighting sustained demand for the larger and high-value homes.
On the commercial real estate side, India's office market maintained strong momentum. Gross leasing during calendar year 2025 reached to 56.4 million square feet, representing a 20% year- on-year increase and marking a new all-time high. Global commodity centers remain the primary demand driver, accounting for nearly 38% of total office absorption.
Supported by continued expansion in multinational occupiers and a preference high-quality Grade A office assets amid limited new supply. Overall, the sector outlook remains positive, supported by a strong macro fundamentals, declining interest rates and improving affordability.
Moving to the company's operational performance for the quarter. During Q3 FY '26, we recorded a presales of INR1,414 crores, registering a 17% year-on-year growth, largely driven by sustained sales across the key markets. On the collection front, we delivered our highest ever quarterly collection of INR1,140 crores, representing a 22% year-on-year growth, supported by a steady construction progress and strong customer traction.
Sales volume during the quarter stood at 1.49 million square feet, while average realization improved by 12% year-on-year to INR9,500 per square foot, reflecting a strong pricing momentum across the portfolio. For the 9 months ended FY '26, presales stood at INR3,839 crores, up 9% year-on-year, while collections amounted to INR3,045 crores, marking an 8% year-on-year growth. Sales volume for the 9-month period aggregated 4.24 million square feet.
On the execution front, during the quarter, we handed over 1.23 million square feet, comprising of 1,116 homes. This took our cumulative handover for the 9 months ended FY '26 to 2.58 million square feet across 2,446 homes, underscoring our continued focus on timely delivery and disciplined project execution.
Coming to our financial performance. Total income grew to INR1,104 crores in Q3 FY '26 compared to INR334 crores in the same period last year, reflecting a strong year-on-year growth of 230%, driven by higher handovers during the quarter. For the 9-month period, revenue stood at INR2,305 crores compared to INR1,529 crores last year, reflecting a 51% year-on-year increase.
On the profitability front, we reported an EBITDA margin of 23% in Q3 FY '26 compared to 10% in Q3 FY '25, reflecting a significant improvement in operational efficiency, better cost control, operating leverage. As a result, we reported a profit after tax of INR58 crores for the quarter compared to a loss of INR94 crores in Q3 FY '25.
Coming to our debt position. Our net debt stood at approximately INR2,482 crores as on 31st December 2025, with a net debt-to-equity ratio of 1.47x. During the quarter, gross debt reduced by INR35 crores, while net debt declined by INR244 crores, reflecting effective debt management. Our cash and bank balance at 31st December 2025 stood at INR1,082 crores, indicating a strong liquidity profile and ensuring operational stability. Additionally, the cost of debt declined further to 11.08% from 11.32% in September 2025.
Now moving to launches and business development. During the Q3 FY '26, the company launched Purva Silversky in Bengaluru with a total saleable area of approximately 0.77 million square feet. Cumulatively, launches during the 9 months ended FY '26 stood at 2.83 million square feet, including new phases launches across existing projects.
On the business development front, during the 9-month period, we added 5 new projects, including 2 projects in Mumbai and 3 projects in Bengaluru. In total, we added 12.76 million
square feet of potential development area with an estimated gross development value of approximately INR13,900 crores.
In Mumbai, we secured redevelopment projects in Chembur and Malabar Hills. The Chembur development involves 8 residential societies expanding 3.78 acres with approximately 1.2 million square feet of developable area and estimated gross development value of INR2,100 crores.
The Malabar Hills project covers 1.443 acres, offering around 0.7 million square feet with estimated gross development value of INR2,700 crores. In Bengaluru, key addition includes 53.5 acres land acquisition in Attibele, contributing approximately 6.41 million square feet with an estimated gross development value of INR4,800 crores.
A joint venture in North Bengaluru with KVN Property Holdings LLP expanding 24.59 acres and about 3.48 million square feet with an estimated gross development value of INR3,300 crores located near the airport. And a joint venture -- joint development in East Bengaluru at Balegere covering 5.5 acre land parcel with around 0.85 million square feet and estimated gross development value of INR1,000 crores.
Collectively, these additions significantly strengthen our long-term growth pipeline and enhance geographic diversification across key markets. Going forward, we remain continuously optimistic on sector outlook. The combination of a strong macroeconomic environment, declining interest rates and sustained end-user demand continues to support residential real estate.
We remain focused on project launches, accelerating construction activities and maintaining healthy collection. We are committed to optimize costs, enhance efficiency and driving shareholders return. Thank you for listening to us. With this, we can now open the call for the questions.
Our first question comes from the line of Deepak Purswani from Svan Investments.
Congratulations for a very good set of deliveries turning into the profitability this time. Sir, firstly, I wanted to get the sense on the -- I mean, launch pipeline in Mumbai for the Q4 FY '26.
I think Lokhandwala project is already launched at this point of time. Firstly, if you can give a sense on that? And then if you can also update about the -- what are the launch pipeline? How should we see other project launch pipeline in the Mumbai at this point of time?
I request Mr. Rajat to take this question.
So Rajat here. So from a launch perspective, we have already received RERA for our Andheri project, and we are looking forward to launch it in the coming week. So Andheri, Lokhandwala will definitely happen in the month of February. For our Thane launch, which is the 2 towers, we are in the final stages of the securing the approvals, and we are very positive that we should be able to launch it in quarter 4, maybe end of February on the first week of March.
Our approvals, we have already secured IOD for our Pali Hills project. Vacation notice has already been sent to the society. We are looking forward to launch it by end of March or in April.
Similarly, for our Miami project, we have -- we're in the advanced stages of getting the approval, hoping to be completed by the end of February.
And then subsequently, we will issue a vacation notice. So we're hoping that in quarter 1 of the coming financial year, we should be able to launch our Breach Candy project which is Miami.
Rest all the projects are in the various stages of either approvals or documentation and the work is going on.
Okay. So I mean, -- if you can also share the medium-term perspective for the Mumbai as a market, how should we see this entire region from the organization as a whole, given the launch pipeline? And what is the kind of potential we would look to explore from this particular Western region as a whole?
So we remain quite bullish in terms of our progress in the Western market, both in Bombay and Pune, where we have projects going on. Not only that we've been acquiring projects, we're also registering strong sales momentum in both these markets. Our Andheri launch so far, response that we've got from the market has been very encouraging.
We are hoping that we'll have a very, very good launch. Similarly, our response so far in Thane market, where we are now looking at the 2 towers that we're going to be launching has already been good. We are experiencing a good premium sales that we are getting over there. So from a market position point of view, I think Puravankara now, I think we have -- are in a very strong position to deliver good numbers from the Western region.
Pune also continues to be a strong market for us. We will add -- try and add a couple of projects in Pune also in the coming financial year to strengthen our overall Pune layer in terms of the overall coverage that we have in the Pune market, primarily trying to be in the western part of Pune. So from overall company numbers, I think our numbers will continue to be healthy and growing from here.
And the project which we mentioned about the -- I mean, Thane project, what would be the GDV which we would be launching in the month of March? And how should we see the sales response for this project?
So we are coming with a new inventory of approximately INR800 crores. And as I said that so far, I think the project has received very, very positive response from the micro market. And I think by end of March, I think the numbers will strongly improve from there.
Okay. Now coming to the Southern region, I mean, similarly, if you can also share the pipeline for the Southern region. I mean, how should we see the key launches in Bengaluru from the Q4 perspective and then from the medium-term perspective? And if you can share the overall perspective on the Southern region as well, please?
Yes. Thank you very much. So Mallanna here. As we had given the guidelines in our investment presentation, that we had around 11 projects for launching. And so they are in various levels of
approvals. And for sure that there are going to be 4 projects that are going to be launched in this quarter, namely Hennur Road.
And there's a project called Westend and Kanakapura and KIADB. And the value of that would be approximately INR4,700 crores and which is going to come to market within this quarter.
And we are trying to see if we can add a couple of more projects into it, as you know that Yes. So as I mentioned that 4 projects are going to be launched in this quarter. We may add a couple of more projects of the 11 projects that we actually listed in our investment presentation.
So it's all in line with the way we want the approvals -- the launches to go. Maybe 1 or 2 projects may go into the quarter 1 and quarter 2 of the next year.
Okay. So sir, if I were to put into the perspective, I mean, Q4, we would be looking somewhere close to 4,700 in Bengaluru. And then Mumbai would be -- there would be the 3 projects, putting it all together, that should be roughly 2,000 plus. All these are on track to get launched in Q4? I believe so, yes. Yes.
Okay. So sir, if I were to see from the overall perspective, I mean, looking at the current market environment, what is a typical kind of run rate we are believing we would be managed to sell it out during this time? And also from the medium-term perspective, if I were to look your sales trajectory, I mean, we had a very good run-up in the last few years, moving to the INR5,900 crores.
And then last year, we were at INR5,000 crores and this 9 months, INR3,800 crores. So if you can share your perspective from next 2-, 3-year perspective, how should we see this entire things? And how -- where we are planning to head up and what are our internal targets, which we are looking in terms of the Presales at this launch pipeline?
Okay. It's a loaded question, so I'll try and answer this. If you really look at the pipeline and INR3,900 crores has already been done and the pipeline that generally we do around INR1,100 crores to INR1,200 crores from our sustenance which means that when you add them together, we're already at INR5,200 crores. And it is anybody's guess what happens in the launches.
Generally, we sell around 30% to 40%, even if I sell -- even if we sell around 25% in this launch of whatever the numbers that you've just now rolled out, and you can do the calculation. I think we should be in -- rather than putting a number to the whole thing that I'm giving you kind of a guidance as to where this may be heading towards.
And looking at the next 2, 3 years, with the business development that is going on and as you may be seeing that there is an announcement almost every couple of months, once about our business development activity. And we think that this run is going to continue stronger and stronger over the next 1, 2, 3, 4 years, I believe.
Okay. And any broader, I mean, targets or internal targets we have set up in terms of the presale, which we would be looking out from this launch pipeline along with the sustenance sales, which we are looking at out?
As I said, it's around 25% that we should be able to sell of everything that we are going to be launching. So from the launches itself, we should be getting around -- somewhere around INR1,800 crores to INR2,000 crores and add to that -- INR1,800 crores to INR2,000 crores and add to that another INR1,000 crores of sustenance. So you have your number there. So we should be doing better than what we initially thought about the year or also compared to the previous years.
Okay. Okay. And second part of the -- this thing, if you can also give a broader sense in terms of the -- I mean, definitely, this time, there has been a significant ramp-up in terms of the execution of the projects and delivery of the project. If you can share your perspective, I mean, how should we see deliveries in the Q4 as well and FY '27 as a whole? What are the key projects which will flow in terms of the delivery schedule? If you can give a broader sense on that part as well, please?
Yes. I think rather than getting into the numbers itself, and as you might have seen that in the last couple of years that our construction, the burn rate has improved and that we are constantly spending more money on the construction side, which means that we are moving more towards completion. At least there are 2, 3 projects which are going to be delivered probably a year before the dates that what we have promised to the customers.
And also that we have given in our investor presentation as to what is our Q4 to -- the numbers that we are going to be delivering in terms of the handing over, I think, in Q3 FY '26 that we are looking at almost 2.40 million square feet to be handed over and pending to be recognized in this unit is that it's 2,443 units. So we are moving faster and maybe that you will see even more briskier handing over in the coming years, that is next year and the year coming up.
Just to add, I think -- just to add, we have a strong delivery pipeline for our… Sorry to interrupt you, sir, but if you have a follow-up question, please re-join the queue. Sure.
Our next question comes from the line of Vatsal Kothari from AlfAccurate Advisors.
Congratulations on a good set of numbers. So I have a couple of questions actually. I'll just start off with a broader question in terms of just curious about the pricing strategy in the new projects for the upcoming launches in Mumbai specifically. And if you could be more specific with terms to the strategy in place for different micro markets. I think you have also number of launches coming in Q1 FY '27 as well. So pricing strategy for the next couple of quarters, and then I can ask my next question with regards to the Andheri project?
This is Rajat here. So with regards to our pricing strategy in the West region, I think for Puravankara by default has been a premium player. And whatever projects that we are doing currently also, they're all at least 5% to 10% higher than the micro market. So our strategy in the Andheri market as well as in the Thane market will always be slightly not higher than what the local pricing is. So just to -- and I think with the kind of reception we are getting from the customers.
I think people are willing to pay a premium to Puravankara's quality of products. So I think from a strategy point of view, that is very, very clear. Also from a distribution point of view, for the launches, we are in almost all the micro markets in Mumbai, where we're trying to get deeper into each and every micro market. So that is going to be our strategy for the medium to long term. And from there, I think we'll pick up on the pricing part. Sorry, no, no. Please carry on.
So what -- the thing that -- what I want to emphasize is that there are micro markets and the quality of the land and then there is a place, where it is located and also the local economics actually drive what is the kind of pricing strategy that will happen. And larger as a company, the strategy is very simple, where we are among the crowd, then we got to be better than everybody else in terms of our pricing by 5%, 10%, 12%.
There are certain micro locations that what we are doing at this point of time in Bangalore is to be really be going away from the competition itself. That is to place ourselves a little far away from the competition by producing products, which are standout products. That is you can always look at a micro market and say where everybody is selling at INR13,000.
And so if differentiation means how do we move to INR15,500 rather than being INR250 or INR300 more than the competition. So that's the strategy. As we move forward, that is going to be consistent in our pricing strategy.
Sounds good. My next question is specifically with regards to the Andheri project. So just a few layman questions in terms of the GDV and details of the rates and the prices at which we are planning to launch this? And secondly, when would the second phase of the project would be launched? What are the time lines of the project? If you could just throw some color on that, that would be great.
Sure. So the overall GDV of the project right now is around INR1,550 crores -- right now, what we are launching is close to around INR850 crores worth of inventory. Pricing, frankly, we're still to reveal the pricing to the market. But I think as I said that the current micro market is hovering in the range of around INR38,000 to INR40,000.
And definitely, I think at Puravankara, we are looking at getting a site premium in terms of the launch. So that is number 1. In terms of the Phase 2 launch, Phase 2 launch, we're expecting to happen in the -- by the end of quarter 1 or early quarter 2.
And any update on the Breach Candy project? Sorry, just one more.
I just updated that. So we are in the advanced stages of getting the final approvals. In fact, most of the approvals have already received. We're just waiting for getting the IOA from the respective authority, which should happen by -- hopefully by end of Feb and then the vacation notice. So hopefully, I think in quarter 1, we should have a Miami launch as well.
Our next question is a follow-up from Deepak Purswani from Svan Investments.
Sir, just wanted to get the sense, if you can -- now since we have gained the traction in terms of the project pipeline, I mean, over the next 6 to 12 months, there would be a lot of launches which are coming it out. If you can share your perspective, how should we see this in terms of the cash flow? And if you can also give broader sense for the debt, how should we see the debt level over the next 6 to 12 months? And what are our internal targets?
And consequent to it, I mean, if you can also share your perspective on the cash flow -- I mean, interest expenses, which are flowing into the cash flow statement. I mean, in 9 months, they are currently at a INR450-odd crores. I mean, how should we see this number over the next 12 months?
Thank you, Deepak. As far as if you look at -- if you're referring to my cash flow, please refer to Slide Number 26 of the investor presentation. We -- this quarter, we had done our total customer collections was INR1,360 crores, and we have generated an operating surplus of INR64 crores. And as a 9-month basis, our operating surplus was INR755 crores. So if you look at our cash flow over a period of time, consistently, we are generating operating surplus.
And we have been meeting our interest obligation on a quarter-on-quarter basis and all the -- as owners. And further, to understand on the context, we have also added -- if you look at the last 9-month period, we have added 12.76 million square feet of business development and which is a potential of INR13,000, so these investments in the new land parcels and new projects require capital investment.
And hence, to that extent, these needs to be financed from the external capital, and that is where we have borrowed debt. But by and large, if you look at our debt, even if you look at just quarter- on-quarter basis, if I compare my debt compared to the immediate previous quarter, gross debt has come down. My cash and cash equivalent is about INR1,000 crores and thereby my net debt is down by about INR200 crores more than INR200 crores.
So though we are continuously watching our debt, the cash flow and liquidity position. But at the same time, business development is key for the long-term success of the organization. And hence, we will be doing this business development, acquiring land parcels to the -- achieving long-term shareholder value for the company. At the same time, we'll be managing the debt, and we'll see that debt are not going beyond acceptable limits. But just rest assure, we are managing it well for the shareholders.
I think the only addition there to the cash flow would be, I think, all the effort in the business development that has happened over the last, I think, 12 to 18 months to secure all these projects, right? I think what we would or what we are planning is we're going to see a new launch almost between the West and the South, almost on a monthly basis, right? So all these projects, the investment is already done. So now with the sales, you're going to see an exponential sort of improvement in terms of cash flows, etc. So we're going to see the benefit of that.
Okay. And finally, sir, just wanted to reconfirm in terms of the launch pipeline, I mean, on the approval and everything, now everything is looking much better at the current juncture, and we
are ready to launch a lot of projects. How should we see this? If you can give a broader sense on that part?
Yes, absolutely. So of course, approvals are a large set of variables, right? But give or take 1 or 2 months of the planned idea that we should be there as we have projected.
Okay. So would it be fair to say over the next 6 to 9 months even in the Bangalore as well, we will see a lot of launches coming out -- I mean, out of these 11 projects which we have shown in the planned pipeline, most of them are lined up in Q4 and Q1. So we are almost on track for all the approvals for these projects?
The next 6 to 9 months and probably all these projects would have been launched. I think if it is beyond Yes. Sir, if you can give a broader sense in terms of the approval pipeline and I mean, launch traction, that would be really helpful, especially for the Bangalore. I mean, since there has been a lot of delays in the last 6 to 12 months for the launches, if you can give a broader sense how we are placed at the current juncture in terms of the approval pipeline as well as the launch pipeline? And how should we see over the next 6 to 12 months for this plant project pipeline in the Bangalore?
So I think till Mallanna comes back online. I think about 6, 8 months ago, there were a few changes that the authority had done in certain setback rules, etc, and therefore, we had to sort of redraw the plans. But that said, I think that is behind us. We should be almost hitting a 90% target in terms of the launches that we have identified in our investor presentation.
Most of them are all -- at least I think 60% would be in the final stages of approval and the balance also should be secured as per the direction and the guidance that we have given in the presentation.
Okay. That's interesting. And looking like we are well on track now in accelerating the launches.
Our next question comes from the line of Samarth Khandelwal from ICICI Direct.
Thank you for the opportunity my questions have been answered.
Our next question comes from the line of Jahnvi Shah from Share India Securities.
Congratulations on the numbers. I had like 2 questions mainly one about the industry and other on the business. I wanted to know what is the split between the mature projects and the newly launched projects in the 9 month presales for this financial year? That split?
And the second question is basically what is our outlook on the residential prices, price appreciation in the next couple of years? Will it be appreciating the way it did in the last couple of years? Or will it be more on the moderate pace?
I think a significant contribution in the 9-month sales have been from the sustenance projects because -- and they've been -- in fact, we are ahead of our targets in terms of our annual operating
plan. Like I think everyone knows, due to changes in the South in terms of bylaws, etc, the launches got sort of delayed. So all the sales, most of it that you see is from the sustenance. What was the second question?
In terms of pricing -- in terms of pricing -- in terms of pricing as well, I think we've been extremely strategic in terms of the various locations that we have secured in terms of new projects. So if I give you an example, even in a city like Bombay, right, we've been extremely careful. So we are very well spread out. So we have Thane, we have Lokhandwala. So almost at every price point, right? We have Beach Candy, we have Bandra. That is point number 1.
Point number 2, even in Bandra, while there are so many projects that are going on, we've been careful in terms of size. I think ours will be one of the largest projects in the micro market of Bandra. Now what does that mean? That means that in terms of the amenities, in terms of the lifestyle, in terms of the product, there is a clear USP for our project as against competition. So it's very carefully and strategic acquisitions of projects.
Similarly, even if you look at Bangalore, right, if you look at the locations, for example, what we're about to launch. So these are very high velocity micro markets. Let it may be Bannerghatta Road, let it be Hennur Road or for that matter, Hardware Park. And for example, we have one project which we are in advanced stages of completion in Hardware Park.
Maybe if you track that project, we had almost sold out 85% of that project in the first 8 months of the launch at a 10% higher APR than the micro market there. So these are, I think, very strategically acquired projects. So I'm pretty confident even in terms of price appreciation because of those micro markets should be pretty healthy year-on-year.
Okay. Sorry, if I can ask one more question. It would be on like the business development. Like in the last 9 months, you had a good BD. Next year, are we thinking along the same lines or will be more or less can you throw some light on that?
One basic thumb rule for business development is it has to sort of surpass your annual sales in terms of square footage. At least you need to replenish, if not more. So for example, if your annual run rate is going to be 5 million square foot a year, if you're going to sell 5 million, 6 million square foot a year, if you're going to sell, your basic business development will have to -- in terms of growth year-on-year also, right.
You need to create that pipeline of projects. You need to at least acquire 20%, 25% higher than that number to give you that headroom for growth. So I think BD is a continuous process. We are always evaluating deals in the market, but extremely strategic. Also as an internal strategy, we are very clear, and I think that's something that you would also track from acquisition to launch, right?
Back in the day, it would take a really long time. Today, we are able to turn these projects around within 6 to 8 months of acquisition, which means we are -- even in terms of acquiring new projects, we are very clear, most of the land approvals should be in place in terms of, for example, conversion.
So we're not getting into projects, where we acquire it and then we got to do certain land approvals, converting it from agri to non-agri, etcetera, etcetera, which takes 8 months, 10 months or whatever. So these are converted clean, clear lands. The minute we acquire it, we immediately go into design and approvals. And as a strategy, we would like to take these to market 6 to 8 months from acquisition. So faster turnarounds.
Our next question comes from the line of Harsh Pathak from Emkay Global Financial Services.
So first of all, congratulations for a strong set of operational and financial performance. So Ashish, my question is about regarding the launch strategy. So it's encouraging to see how we have brought the projects in the West market within 1 to 2 years of acquisition. So what is our strategy around the Chembur project and the next phase of the Andheri and Pali Hill projects? How are we thinking about those?
Okay. So Harsh, just to give you a perspective, first, I'll answer for the Andheri project. Andheri Phase 2, we are good to launch. So we have all the basic approvals in place, be it MOA, etc. We just need to load in FSI and launch it. So we would probably look at launching it in the quarter -- end of quarter 1 or beginning of quarter 2. The Chembur project is moving good. We are in the final stages of securing the basic approvals at the site level.
And then we'll go for the formal approvals for the project. So I think we should be in a position of launching it in quarter 3 of the coming financial year. Malabar Hill also, I think, is on track.
I think we are working with the society to conclude the development agreement, which I think is 100% should be concluded in the month of February and then we go for the approval.
So Malabar hill should happen between quarter 3 to quarter 4 of the coming financial year. So from a project pipeline perspective, all the projects that we have signed for -- they're all on track.
I think they're all in, obviously, the various stages of planning and approvals. And we are looking at in next 6 to 9 months, all these projects should be launched.
Sure. So in terms of growth, how should we evaluate the coming financial year? Because I think for Q4, your launch pipeline looks very strong. So how should we look at the next fiscal? What kind of growth shall we expect? Ashish, you would like to answer that?
I can take that, Mallanna here. So I think it's quite strong, right? Basically, if you look at that today, we are sitting at around INR4,000 crores of sales and the next quarter that we are launching close to around INR6,000 crores of stock into the market, and we do sustenance of around INR1,000, INR1,100 crores. And you add the math and even if we sell around 25% -- 20%, 25% on launch, even the conservative estimate says a good number, right?
So rather than putting a number, this is the number that we are going to achieve. I'm just trying to give you a guidance on where it is going. And for the coming years, it's very clear from where we are, the remaining that what we have already given in the investor presentations about the launches that are deferred to the first quarter and the second quarter of next year and also that you are hearing quite a bit from us about the deal closures.
And those deal closures are already, as Rajat said, that they're all in different levels of designing and approvals and NOCs and so on and so forth. So we seem to be in a good footing now and rest is the future.
And Harsh, just one more thing to add. I think also all these projects that we are doing are large projects in nature, which obviously will be done in various phases. So once you get these basic approvals, all you have to do is to get the next tranche of approval is to get the FSI loaded, at least I'm talking about the West season. So for example, Thane is a INR4,000 crores project for us, and we are launching around INR800 crores now, INR300 crores that we have done in the past.
So I think Thane, you will see a lot of action happening continuously over the period of next 2 years because we will keep on getting new towers and new phases in that. So from a numbers perspective, I think there'll be a lot of action happening because every project that we are trying to do is large in nature, will have a substantial in terms of sales velocity that is going to come.
So we're very positive on the overall thought process in the next 6 to 12 months.
Sure. That's great. And what's the update on the commercial projects, the Zentech and Aerocity?
So the Zentech project is doing really well. I think we've sold almost 127,000 square feet. We've also leased to IKEA, which is close to 90,000 square feet. So that project is getting good momentum in the micro market. Happy to share that both these projects will get occupation certificate by end of March.
So I think that's when I think we start handing over. Aerocity also is getting a very good traction from global companies, GCC is doing a lot of visits. We're hoping that we'll be able to sign a good deal in the coming quarters.
Sure. So any maybe interest from the potential leases that we have already signed, if you can just highlight something around that? You're referring to Aerocity? Yes.
So, Aerocity, as I said, we filled in a lot of RFPs, really marquee ones, big deals. Nothing concluded so far, but we are in the top 1 or 2 stage with a couple of large players. As I said, this is a long driven process, and we are expecting the OC to come end of March. So I think we should be able to conclude something in the next quarter or so.
Sure. And my last question is around the debt front. So I think sequentially, there has been some decline in the debt number. And like Ashish rightly highlighted that the collections are going to significantly increase. So how should we think about the debt number maybe in the next 2 to 3 years from the current levels?
So at the same time, we have mentioned our debt schedule also, what are the kind of debt slated for repayment this financial -- from this coming financial year. From now from December
onwards, if we target, say, 12 months from hence, the scheduled repayment itself is INR682 crores. Besides that, the projects where we have taken money and the collection happens and through SI and all the mechanism, it has been our experience that we always pay the loans ahead of schedule.
So INR632 crores in next 12 months, any which will be repaid from the scheduled repayment.
And besides that, the collection goes up, I'll be repaying the debt. As I mentioned and also Mr.
Ashish mentioned and all of us mentioned, we are continuously monitoring the debt and wherever there's opportunity, the collection, it will immediately going for the repayment. That will happen.
But at the same time, we'll be looking at the business development, construction progress, and we'll always be trying to keep the debt at optimum level, manageable level and which creates the higher shareholders' value on an overall basis.
Our next question comes from the line of Chintan Mehta from Puniska Family Office.
Just a question on the commercial part. What is the current lease rental income, which we would receive in the square foot we own and the guidance for FY '27 and FY '28 and '29?
So the current rental yield that we are expecting or rather the rentals that we're expecting right now in Zentech is around INR75 a square feet. Of course, the IKEA transaction that we have done is at INR97.5 being the retail area. And for our Aerocity project that we're expecting is somewhere in the range of around INR60 to INR65.
Sir, combining total at the end of quarter consolidated level, how much rental income we are going to own on FY '27 and FY '28 and FY '29?
So the assets are coming for OC only by end of March, and that's when the rental is going to start. So all these -- both the assets of Aerocity and Zentech once fully leased, will set us a rental of close to around INR200 crores annuity.
Okay. And we have any other project which is in pipeline?
We have a project in Bangalore in Hebbal. I think we have not started construction. We are now putting for approval. So we should be start pouring concrete in the project by quarter 2 of the next financial year.
And the second phase of Aerocity. And the second phase of Aerocity. Yes.
Our next question comes from the line of Rajiv Rupani, an Individual Investor.
Yes, sir. So my first question was in our Mumbai redevelopment portfolio, our share is 2.67 million square feet. So could you please guide us what kind of revenue will this generate for the company as a whole, this full 2.67 million square feet?
See, all our redevelopment projects was fully launched. The total GDV value for all our projects put together is close to around INR15,000 crores. That includes projects which are not even launched right now. So I think from a -- and this portfolio continues to grow because we are looking at marquee acquisitions in this arena.
We are one of the most premium players or premium players rather in this segment. So we'll continue to be actively looking for opportunities in portfolio. The ones that we have already signed, launched and in the various stages of approvals are close to around INR15,000.
Okay. My next question was a follow-up question on the debt. Sir, year ending March 2020, our debt was about INR2,700 crores. Our interest cost is about INR340 crores. And now in 9 months September '25, our debt is about INR4,500 crores and the interest cost is about INR495 crores.
So I was just seeing the trend. The trend is the debt has gone up and the interest cost has gone up -- has doubled. So how do you plan to -- going forward in the next 3, 4 years, do you plan to increase more debt for buying land or this shall be stable here? Or how do you plan to make it come down?
One preamble to that is that if you can just sort of evaluate the kind of business development that has happened over the last 24 months across the South and the West region. And for good or bad reason, the approvals are getting delayed. So that was -- that's the reason the number went up. But these, again, like I mentioned earlier, these are across the West and the South, these are extremely marquee locations, excellent projects. I think they have come together.
We've got the best of consultants, international consultants on board and the product has really come out well. So from now on, from the next 12 months, the way it may go a little bit here and there, but almost every month, you're going to sort of see a launch between the West and the South. So all the effort that has gone in over the last 24 months in terms of business development, the debt number going up.
The investments that have gone into these projects for prelaunch, etc, once we put it into production, right, you're going to automatically start seeing cash flows on that bucket. And therefore, as the sales pick up, the collections pick up, you're going to see those debt numbers specific to those projects go down.
And add to what Ashish said, the most important part of this one is if you go back to 2020 and look at what was our portfolio value, that is our ability of the lands that were tied up and which were about to be launched and the pipeline of the projects, maybe I do not know the exact number, maybe it was INR15,000 crores, INR18,000 crores today I think we have surpassed INR50,000 crores of top line portfolio number that we are currently handling.
That is projects which have been launched and projects which have been launched and yet to be sold and the projects which are about to be launched and the projects which are -- which have already money has been paid and in various stages of approvals and also some of the places, where we have already advanced the money and the last bit of due diligence is going on if you look at this thing that we are in excess of INR50,000 crores of portfolio.
So if you're saying that it's -- what you mentioned is that the debt has gone from INR2,700 crores to INR4,700 crores. That's around INR2,000 crores of debt increase has resulted in more than INR30,000 crores of capability to develop has increased. So which means that it's a combination of that debt that what we have taken and the money that we have earned consistently by delivering what we are delivering at this point of time.
And to add to that, as a strategy, we are financing our growth, these investments we have done largely from the performance-linked instruments, where the servicing of debt is linked to the project performance. And hence, it is not impacting our overall the cash flow or the pressure on the project and you also refer about the interest accounting.
All those performance instruments, which we have issued, but interest as a prudent measure, we keep accounting the interest and creating a liability in the balance sheet. But in fact, it is not impacting overall the operational cash flow for the company.
And also to add to that, one, if you look at the presales numbers from 2020, '21 to now, we even doubled there as well. So that's already showing the numbers are showing that where the trajectory is moving towards in the coming years.
That was helpful. My next question was on the dividend policy of the company. Our company has been very erratic in terms of paying dividends. It gives a dividend 1 year, then it skips for 2 years and then it's again giving a dividend. So what is going to be the dividend policy going forward? Ashish, please.
Yes. See, I think by intention, let me say, I think the intent is obviously to reward the shareholders for the support and the faith they have in the organization. I think the last 4, 5 years have been unpredictable starting from COVID, etc, right? And then the call is today, we are seeing the consolidation that's happening across the major cities in terms of the strong brands.
If I go back 7, 8 years, even in a city like Bangalore, as today, we had 250 members, almost 50% of them were launching projects. But today, we are seeing -- you cannot name more than 10 or 15 developers maximum in a city that are actively launching projects. So we are seeing projects come to us in terms of business. So there's a capital requirement for growth this is the time in consolidation.
There are certain projects which are in trouble. There are certain banks offering us projects. So this is nothing, but investing for our future over the next 5 to 7 years, securing marquee projects.
So it's -- quite honestly, it's a decision between those 2. But as an organization, yes, it is always there on our minds. And whenever the opportunity allows us, I think those years, we will issue dividend.
Ladies and gentlemen, as there are no further questions from the participants, I now hand the conference over to the management for closing comments.
Thank you. Thank you, everybody, for joining our call. And me, myself and my team is always available for -- if you have any further questions, please write to us. We'll answer those questions. Thank you very much.
Thank you. On behalf of Emkay Global Financial Services Limited, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.