AJMERA - Ajmera Realty

📊 NSE: AJMERA 🏢 Construction 📅 Last Updated: 12/13/2025 18:03

💰 Financial Performance

Revenue Growth by Segment

The Group primarily operates in the Real Estate segment, which achieved a revenue of INR 481 Cr in H1 FY26, representing a 20% YoY growth compared to H1 FY25. This growth was driven by strong sales traction and project execution.

Geographic Revenue Split

Operations are highly concentrated in the micro-markets of Mumbai and Bangalore. While specific percentage splits per city are not provided, the company identifies this concentration as a key risk factor, as any regional slowdown directly impacts the total top line.

Profitability Margins

EBITDA and PAT margins remained stable in Q2 FY26 despite participating revenue from relatively lower-margin projects. Management expects upward margin traction in coming quarters as high-margin presales from projects like 'Manhattan' begin to be recognized in the revenue stream.

EBITDA Margin

Core profitability is expected to improve from current stable levels. The company reported a 20% YoY revenue growth in H1 FY26, and the transition toward high-margin premium projects is projected to drive EBITDA margin expansion beyond the historical baseline.

Capital Expenditure

The company has planned a massive expansion with a total project cost of INR 4,723 Cr for launching approximately 22 lakh sq. ft. of area in FY26. This represents a significant scale-up in investment compared to previous years.

Credit Rating & Borrowing

The company's debt to adjusted Cash Flow from Operations (CFO) was high at 3.97 times for fiscal 2024. Borrowing costs are moderate, with an adjusted CFO to interest ratio of 2.87 times. The company plans to fund new projects with additional debt of INR 1,348 Cr.

⚙️ Operational Drivers

Raw Materials

Key construction inputs include steel, cement, sand, and labor. While specific cost breakdowns are not listed, construction costs for ongoing projects are funded by debt at a level of approximately 96%.

Import Sources

Not disclosed in available documents; however, materials are typically sourced locally within India to support projects in Mumbai and Bangalore.

Capacity Expansion

The company has completed 155 projects totaling 20.3 million sq. ft. Current expansion plans include launching 22 lakh sq. ft. in FY26, which will increase the active development pipeline significantly.

Raw Material Costs

Construction costs represent a major portion of the project cost. For ongoing projects, cumulative construction costs reached a level where debt represents 28% of the total cost as of March 31, 2025.

Manufacturing Efficiency

Efficiency is measured by sales velocity and construction milestones. For example, Ajmera Eden achieved 98% sales upon structural completion, and Ajmera Greenfinity reached 74% sales with structural work nearly finished.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth will be achieved through a robust launch pipeline of 22 lakh sq. ft. in FY26, focusing on high-margin premium projects in Mumbai and mid-market housing in Bangalore. The company is also leveraging redevelopment opportunities, such as the Vihara Bhandup project (81% sold).

Products & Services

Residential apartments ranging from mid-segment housing (e.g., Lugaano, Florenza) to premium residential skyscrapers (e.g., Manhattan, Eden).

Brand Portfolio

Ajmera Realty, Ajmera Greenfinity, Ajmera Eden, Ajmera Vihara, Ajmera Iris, Ajmera Marina, Ajmera Manhattan.

New Products/Services

Recent launches include Ajmera Iris and Ajmera Marina (launched Q4 FY25), which have already achieved 70% and 68% sales respectively, contributing to the INR 828 Cr H1 FY26 sales value.

Market Expansion

The company is deepening its presence in its core markets of Mumbai and Bangalore, with 22 lakh sq. ft. of new launches planned for FY26 to capture demand in premium and mid-market segments.

Strategic Alliances

The Group operates through various subsidiaries, joint ventures, and associates to execute large-scale real estate developments.

🌍 External Factors

Industry Trends

The industry is seeing a shift toward premiumization and branded developers. Ajmera is positioning itself by launching premium projects and maintaining a 'Built on Trust' brand image to capture 81% sell-out rates in 24 hours.

Competitive Landscape

Operates in a highly fragmented market with intense competition from both local and national developers in the Mumbai and Bangalore micro-markets.

Competitive Moat

The moat is built on a 50-year legacy, brand trust, and a strong execution track record (155 projects). This allows for high sales velocity (e.g., 98% sold in Ajmera Eden) even before project completion.

Macro Economic Sensitivity

Highly sensitive to interest rates and urban housing demand. Real estate cyclicality and volatile prices are cited as inherent industry risks that impact project viability.

Consumer Behavior

There is a strong trend toward mid-to-premium residential units with modern amenities, evidenced by the robust demand for the company's recent launches in Bangalore and Mumbai.

Geopolitical Risks

Primary risks are domestic, related to Indian regulatory changes and regional economic shifts in Maharashtra and Karnataka.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to RERA (Real Estate Regulatory Authority) norms, local municipal building codes in Mumbai and Bangalore, and environmental clearances for large-scale constructions.

Environmental Compliance

The company maintains an ESG framework, including insurance renewals and health checkups, though specific compliance costs in INR are not disclosed.

Taxation Policy Impact

The company accounts for current tax liabilities (INR 12.70 Lakhs as of March 2025) and follows Ind AS for financial reporting.

Legal Contingencies

The company discloses contingent liabilities in its financial notes, though specific aggregate values for pending court cases were not detailed in the provided snippets.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the timely collection of sales advances to service high debt obligations. Failure to meet sales targets for the 22 lakh sq. ft. FY26 launch pipeline could lead to liquidity stress.

Geographic Concentration Risk

Approximately 100% of operations are concentrated in Mumbai and Bangalore, making the company vulnerable to regional regulatory changes or economic downturns in these two cities.