Ajmera Realty Q2 FY27 Earnings Call — Analysis (NSE: AJMERA)
Ajmera Realty reported Q2FY27 revenue growth of 45% YoY to ₹320 Cr with PAT up 55% to ₹49 Cr, while maintaining a heavy H2 launch pipeline of ₹7,008 Cr across 8 projects to reach its ₹2,200 Cr FY27 presales target.
Result quality: stable — Steady quarter. Management sentiment: optimistic.
The take
Q2FY27 Total Revenue ₹320 Cr ( +45% YoY ) . New story: Disciplined deleveraging & financial prudence .
Results
Revenue grew 45% YoY to ₹320 Cr with EBITDA up 40% to ₹84 Cr (26% margin) and PAT up 55% to ₹49 Cr (15% margin); net debt declined to ₹646 Cr (0.44x D/E).
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Total Revenue | ₹320 Cr | +45% | yoy · Q2FY27 · vs Q2FY26 (₹221 Cr) |
| EBITDA | ₹84 Cr | +40% | yoy · Q2FY27 · vs Q2FY26 (₹60 Cr) |
| EBITDA Margin | 26% | none · Q2FY27 · Q2FY27 margin | |
| Profit After Tax | ₹49 Cr | +55% | yoy · Q2FY27 · vs Q2FY26 (₹31 Cr) |
| PAT Margin | 15% | none · Q2FY27 · Q2FY27 margin | |
| Pre-sales Value | ₹224 Cr | none · Q2FY27 · 72,883 sq ft carpet area | |
| Collections | ₹190 Cr | none · Q2FY27 · Q2 collections | |
| Total Revenue | ₹639 Cr | +33% | yoy · H1FY27 · vs H1FY26 (₹481 Cr) |
| EBITDA | ₹178 Cr | +28% | yoy · H1FY27 · vs H1FY26 (₹139 Cr) |
| Profit After Tax | ₹93 Cr | +32% | yoy · H1FY27 · vs H1FY26 (₹71 Cr) |
| Pre-sales Value | ₹370 Cr | none · H1FY27 · 1,16,620 sq ft carpet area | |
| Total Debt | ₹646 Cr | -₹34 Cr | sequential · Q2FY27 · from Q1FY27 |
| Debt to Equity Ratio | 0.44x | point_in_time · Q2FY27 · Sep-26 | |
| Weighted Average Cost of Debt | 10.75% | none · Q2FY27 · dropped below 11% for the first time |
Guidance
Management reiterated its FY27 presales target of ~₹2,200 Cr, relying on 8 launches totaling 38 lakh sq ft with ₹7,008 Cr GDV across Mumbai, Bengaluru, and Pune in H2FY27.
What management committed to
- We are still very hopeful that [the conversion of the 7-acre Kanjurmarg land] will definitely happen before the 31st December. — N/A, Q3 FY27
- For FY27, we are expecting a revenue book of presales of around INR2,200 crores. [We] are confident to surpass this number in the upcoming 6 months. — INR 2,200 crores, FY27
- We have around 8 launches [for H2 FY27]... we are confident [they] will go in place and we should be able to launch all of this as the way we have decided. — INR 7,000 crores, H2 FY27
- The moment [the Kanjurmarg land] gets converted... the launch could happen in the next 6 to 9 months? [Management response:] And that is a routine process, which is a 4-, 5-month job. — N/A, 2027/2028
Key themes
Execution ramp-up and heavy launch pipeline
How the narrative shifted
- Disciplined deleveraging & financial prudence: Debt reduction through operational cash flow and an improving credit profile enables funding of a massive launch pipeline while maintaining a strong balance sheet.
- Macro demand resilience / interest rate headwind: The RBI rate hike is acknowledged as a potential affordability pressure point, but management expresses confidence that strong underlying housing demand will sustain the sales momentum.
- Premiumization and brand positioning: The market shift towards premium and lifestyle-oriented housing strongly favors established brands like Ajmera, creating a significant tailwind for its portfolio.
- Kanjurmarg land conversion hurdle: Management softens the specific deadline from a 'definite Dec 31' in the opening remarks to a 'cannot give a timeline' admission under Q&A scrutiny, attributing the delay to complex court dependencies beyond its control.
- Heavy H2 FY27 launch pipeline: A concentrated and diversified launch schedule of 8 projects across multiple micro-markets in H2 is the primary engine for achieving the year's ambitious presales and revenue targets.
- Commodity cost / margin resilience: Temporary geopolitical commodity price pressures are being managed through strategic sales timing and execution phasing, with confidence in a return to normal cost conditions.
Operational commentary
- Achieved revenue recognition for Bandra commercial project 33Fifteen during Q2 due to fast-track construction milestones and 25% inventory sold.
- Ajmera Manhattan 1 reached 95% sales with MEP and finishing underway for possession next year; Manhattan 2 at 56% sales with raft works in progress.
- Occupation Certificates expected imminently for Ajmera Greenfinity Phase 2 in Wadala (94% sold) and Ajmera Iris in Bengaluru (94% sold).
- Slow initial sales at luxury redevelopment project Vann by Ajmera in Versova (4% sold); management expects acceleration once plinth and upper floor structures emerge.
- Launch calendar back-ended to H2FY27: 8 launches totaling ~38 lakh sq ft and ₹7,008 Cr gross development value, including Wadala Boutique Office, Borivali, Pune, and Bengaluru projects.
Analyst Q&A
Q. Status of the Kanjurmarg 7-acre strategic partnership and land conversion timeline before the December 31 deadline.
Discussions are ongoing with potential partners, but commercial terms depend on securing government regulatory and legal conversion clearances, which may slip into the next 1-2 quarters.
Q. Feasibility of achieving the ₹2,200 Cr presales guidance given that H1 achieved only ₹370 Cr and 7 launches are clustered in Q4.
Management expressed high confidence in meeting the target, stating launches are spread across 8 distinct micro-markets without internal cannibalization, and pre-marketing feedback is positive.
Q. Balance sheet capacity to absorb ~₹1,000 Cr construction cost for Wadala Boutique Office plus land conversion and simultaneous launches.
CFO clarified that leverage is low at 0.44x D/E with room to expand, financial closure is in place for Wadala office, and ongoing projects like Solis are generating strong milestone collections.
Q. Reasons behind muted sales (4%) at the Versova luxury project Vann.
The micro-market is dominated by redevelopment options where buyers prefer buying under-construction units once plinth/upper floors are visible rather than at excavation stage.
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