Synopsis:
Ajmera Realty & Infra India Ltd’s Q1 FY26 performance showed solid collections growth but weaker sales due to regulatory hurdles. With plans to launch nine new projects and deliver 1,000 homes by H2 FY26, the company remains focused on execution, debt reduction, and tapping demand in Mumbai and Bengaluru’s high-growth real estate markets.
A well-known real estate developer with a strong presence in cities like Mumbai, Ahmedabad, and Bengaluru reported a mixed performance for Q1 FY26. While regulatory delays in approvals impacted sales and new launches, the company showcased financial resilience through strong collections growth and disciplined project execution.
The company in focus is Ajmera Realty & Infra India Ltd, with a market capitalization of Rs. 3,519 crore. The stock opened weak today at Rs. 900, slightly lower than its previous close of Rs. 903.20, and remained largely flat, touching an intraday high of Rs. 903.20, indicating muted investor reaction post the operational update.
What’s the News?
Ajmera Realty reported mixed YoY performance for Q1 FY26. On a Year on Year basis, the company reported a 42 percent growth in collections, rising from Rs. 165 crore in Q1 FY25 to Rs. 234 crore in Q1 FY26, reflecting strong cash flow realization from ongoing projects. However, the sales value declined by 65 percent, down from Rs. 306 crore to Rs. 108 crore, while the carpet area sold fell by 52 percent, from 130,801 sq. ft. to 63,244 sq. ft. over the same period.
On a Quarter on Quarter basis, collections improved by 29 percent, up from Rs. 182 crore in Q4 FY25 to Rs. 234 crore in Q1 FY26. Yet, the sales value saw a 57 percent drop, sliding from Rs. 250 crore to Rs. 108 crore, and the carpet area sold decreased significantly by 66 percent, from 185,939 sq. ft. to 63,244 sq. ft.
The company attributed this muted sales performance to sector-wide regulatory delays that held up project launches, including some of its key projects. Despite these hurdles, the company remains focused on delivering around 1,000 homes by the second half of FY26, backed by ongoing execution across six residential projects in Mumbai and Bengaluru.
Comments of Management
Commenting on the performance, Mr. Dhaval Ajmera, Director – Corporate Affairs, said: “Our Q1 FY26 results reflect both strengths and sector-wide regulatory challenges. We are pleased with the robust 42% YoY growth in collections to ₹234 crores, demonstrating our operational efficiency and project execution. However, the lack of necessary approvals led to delays in new launches, while lower available inventory in existing projects contributed to sales during the quarter.
Looking ahead, we are gearing up to deliver around 1,000 homes by the second half of FY26, with fast-tracked execution underway across six residential projects in Mumbai and Bengaluru, backed by sustained construction progress and inventory absorption. Our strategy—centered on timely execution, innovative design, and sustainability—continues to resonate with home buyers seeking quality in high-growth micro-markets. Our disciplined project management and customer-centric approach position us well to achieve our FY26 aspirations and deliver long-term stakeholder value.”
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Financial Performance
Ajmera Realty’s earnings per share (EPS) increased from Rs. 28.97 in March 2024 to Rs. 32 in March 2025. The company has demonstrated Compounded Profit Growth of 40 percent over the past Three years. Borrowings reduced significantly from Rs. 808 crore in March 2024 to Rs. 676 crore in March 2025, indicating prudent financial management.
Total assets grew from Rs. 1,963 crore to Rs. 2,255 crore during the same period, reflecting healthy expansion. The Debt-to-Equity ratio improved to 0.56, while ROCE stood at 12.8 percent, and ROE at 12.2 percent. Return on Assets was reported at 5.99 percent, alongside a modest Dividend yield of 0.45 percent. The promoter holding remains steady, with an increase in DII holdings to 2.30 percent as of March 2025.
Strategic Outlook
In their May 2025 concall, management shared that 40 percent of FY25 sales stemmed from new project launches, reflecting a strong brand pull and successful launch strategy. The company plans to launch nine new projects, covering 2.2 million sq. ft. of carpet area, with a gross development value (GDV) of approximately Rs. 6,500 crore. Capex for these projects is estimated between Rs. 4,500 to 4,800 crore, spread over 3 to 4 years.
Ajmera Realty & Infra India Ltd is one of India’s trusted real estate companies with a PAN India presence. The company’s flagship land bank at Ajmera I-Land, Bhakti Park, Wadala, and various projects in Central Mumbai, Mumbai suburbs, and Bengaluru reinforce its commitment to premium and mid-luxury residential segments. The company is actively evolving through strategic planning, sustainability, and the use of cutting-edge technologies to deliver value to stakeholders.
Written by – Manan Gangwar
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