Max Estates (NSE:MAXESTATES) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to q one FY twenty seven earnings conference call of MAXESTATE Limited, hosted by Ambac Capital Private Limited. As a reminder, all participants will be in a listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal operator by pressing 0 on your touch tone phone. Please note that this conference is being recorded. I would now hand the conference over to mister from Private Limited. Thank you, and over to you, sir. Thank you, miss Khan, and good morning, everyone. On behalf of Ambit Capital, I would like to welcome you all to the 1Q FY 'twenty seven Earnings Conference Call for Max Estates Limited.

0:53 From the management today, we have with us mister Sahil Vachani, vice chairman and managing director mister Vachan Singh, chief operating officer mister Nitin Kansal, chief financial officer and Mr., Head of Investor Relations. We would like to now begin the call with opening remarks from the management, post which we will have the forum open for an interactive question and answer session. Thank you, and over to you, Sahil. Thank you, Karan, and good morning, everyone. I'd like to begin with some industry highlights followed by key business updates for the quarter ended 06/30/2026.

1:40 The Delhi NCR residential market to cover that first broadly saw broadly resilient quarter despite a more cautious demand backdrop nationally. Delhi NCR recorded close to 8,800 residential unit launches in q two twenty twenty six with Gurgaon continuing to lead the region accounting for about approximately 70% share across the key vectors of Sonar Road and Dwarka Expressway. Noida, Greater Noida too contributed the balance with Noida Expressway and Noida Extension emerging as key micro markets. For the first half of calendar year twenty twenty six, the total launches across the region reached approximately 18,005 units, reflecting sustained momentum.

2:29 On the pricing side, weighted average prices held broadly stable on a quarter on quarter basis, while capital values recorded healthy annual growth across both cities and rentals improved steadily led by primary the prime micro markets that I outlined. That said, the residential sales volumes across the sector moderated through the quarter against a backdrop of global uncertainty, tightening liquidity conditions and cautious consumer sentiment. On the commercial side, Delhi NCR recorded strong office leasing of 4,100,000 square feet in Q2 twenty twenty six, reflecting healthy occupied demand across key commercial markets led by GCCs, IT, flexible workspaces and professional service firms. Coming to the business performance for Max Estates.

3:18 First, on the residential side, we are very delighted to share that Max Estates delivered a strong Q1 FY 'twenty seven with presales of approximately INR 1,100 crores, registering a 5x year on year growth, a clear reflection of the continued strength of our brand and product positioning even in a more selective demand environment. This was anchored by the full sellout of Phase one of the Terraces at SJ 361 Gurgaon, which contributed approximately INR 500 crores, while sustainment sales across the existing portfolio added another INR 600 crores. Collections for the quarter stood at approximately 575 crores consistent with our historical collection range of 20 to 25% of the sales value enabling us to fund construction without incremental debt on any of our residential projects.

4:07 On the embedded value, the total revenue potential across our launched residential and mixed use portfolio stands at INR 17,500 crores. Of this INR 13,500 crores is already sold and contracted, comprising INR 3,500 crores already collected and a further INR 10,000 crores to be collected as construction progresses. It's important to note that our current P and L reflects only a fraction of what is already contracted. Translating the sold portfolio into profitability terms, the embedded PBT is estimated in the range of INR 4,500 crores to INR 5,500 crores. This is a critical distinction of how we think about the business. A substantial majority of our future reported earnings is already locked in, well ahead of P and L recognition, which meaningfully derisks our earning trajectory.

4:57 Looking ahead, our residential launch pipeline spanning both unsold launch inventory and future launches stands at approximately INR 16,100 crores. Of this, 4,000 crores is already launched and available for sale this year, while the remaining INR 12,000 crores approximately represents new product launches planned through the course of FY 'twenty seven as we continue to target annual addition of 2,000,000 square feet of residential development. Max Estates launched the Terraces in May, its newest residential offering within S-eight 61 in Dwarka Expressway, Gurgaon. The Terrance has brought together smart residences, eight community shared spaces across a host of amenities. This particular aspect within the development has a broad GDV of 1,200 crores, which has an is part of Estates 361, which has an overall GDV of INR 9,000 crores.

5:53 Phase one with a GDV of INR 500 crores was fully sold out in the launch quarter. Estates 361 is built as a fully intergenerational community encompassing the terraces for young couples and first time homeowners. At Estate 105 Noida, driven by the strong response to the project, we have revised the development mix to residential portfolio, enhancing our project GDV to INR 6,000 crores with phase two of this plan in FY 'twenty seven as a launch. MAXESTATES which was part of the transformative revival of the long stalled Delhi one project, has now got well underway. The acquisition and subsequent clearances provided a decade's worth of relief to us 12 homebuyers who were brought into the MAXESTATES family.

6:40 Including bookings recognized post data approval from the 12 developers, the project step ends 2,500,000 square feet with a total GDV of approximately 3,200 crores and an annuity income of 145 crores. Delighted to share that the project has achieved the highest sale value in Noida with sales price of 37,000 rupees per square foot, excluding GST. Coming to a new launch in Gurgaon, Sector 59 on Gulf Coast Extension Road, it has a development potential of 1,300,000 square feet with a GDV potential of more than 3,500 crores, and we are expected to launch in q three of FY twenty seven. Overall, like I mentioned, the company has a residential pipeline of INR 16,000 crores and continues to target an annual addition of INR 2,000,000 on residential development.

7:30 Coming to the commercial portfolio. On the commercial side, all three of our operating assets, Max Towers, Max House, and Max Square continue to operate at a 100% occupancy, which remains perhaps the single most important data point for our commercial business. It validates both the quality of our product and the strength of tenant demand in the micro markets where we operate. MAXESTATES continues to command a significant releasing premium, the latest lease signed at 156 rupees per square foot per month against the current weighted average rental of 132 rupees, a mark to market upside of over 50% and a premium more than 50% to immediate micro market rentals. In addition, the project, both Max Towers and MaxSquare have received a five star rating from British Safety Council in its first ever occupational health and safety audit, evaluating over 50 best practice elements.

8:18 Coming to the construction pipeline, MaxSquare two having a leasable area of 1,000,000 square feet is on track and is expected to receive occupancy certificate by Q2 FY 'twenty eight. It is expected to add INR 125 crores to the annuity portfolio, strong leasing momentum highlighted by the signing of an LOI for a long term pre lease of approximately 90,000 square feet at 25% premium to the prevailing micro market. Coming to MAXESTATES, which is in Gurgaon and also under construction, it has a leasable area of INR 1,600,000 is on track. Also expected to receive occupancy across Q3 in FY 'twenty eight and Q3 of FY 'twenty nine, respectively. We expect it to add INR 200 crores to the annuity portfolio. And again, here, strong leasing momentum highlighted by the signing of an LOI for a long term pre lease of 200,000 square feet at 35% premium to the micro market rental.

9:11 As our under construction pipeline progresses, we expect to achieve our annual rental income of approximately INR 700 crores at peak occupancy. We will also continue to target 1,000,000 square feet of new business development towards this portfolio moving forward. Overall, we enter Q2 of FY 'twenty seven with a very strong conviction in our execution capability visibility, and I now hand over the call to my colleague, Nitin, who's our CFO, to take you through. Thank you. Thank you, Sahil. Good morning, everyone, and thank you for joining the call. I'll begin with an important update with regard to the credit rating of Max Estates. Last week, ICRA, one of the premium rating agencies of the country, assigned Max Estates a first time issuer rating of a plus with a stable outlook on a consolidated basis covering the company and its 14 subsidiaries.

10:08 In arriving at this rating, Icarra assessed and committed receivables of close to 9,500 crores as of March 26 and a cash flow adequacy ratio of about 105%, meaning our contracted receivables cover pending construction cost and residential debt. This is the first external credit assessment that the company has had, and we think it is useful independent read on the points Sahil has described earlier. Now let me take you through the operational and financial highlights for the quarter one FY twenty seven. The console revenue stood at rupees 52 crores in quarter one, while console EBITDA stood at rupees 8 crores. Console profit before tax stood at 11 crores and parts stood at rupees 8 crores. The the... All the commercial assets were 100% leased, and the total area stood at 1,200,000 square feet with the lease rental income of our Max Towers, Max House, and Max Square up 5% year on year to rupees 40 crores in quarter one. Max Estates Services Bank revenue stood at INR 15 crores in the quarter one, a growth of 16% on year on year basis.

11:10 As on June 26, the net debt stood at INR $2.34 crores, with a gross debt of INR $19.60 crores, including these rental discounting borrowings of INR $9.34 crores, while cash and cash equivalents stood at INR $17.27 crores, with that means a net debt of INR $2.34 crores. Over we believe MAXESTATES remains well positioned with a strong launch pipeline, healthy collection, and growing annuity visibility across both our residential and commercial businesses. With this, now I would now request Karan to open the question... Floor for the question and answer session. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on the touch tone telephone.

11:59 If you wish to remove yourself from question queue, you may press star and two. Participants are requested to use sensors while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Kartr Sundar from three Netra Assets Manager. Yes. Am I audible? Yes, please. Yes. Good morning, and thank you for the opportunity. So my first question is on employee marketing expense. Like, it has increased materially by Y o Y in Q1, how should we think about the quarterly cost run rate and EBITDA margins over the rest of 2027?

12:53 Thank you. This is Nitin Kansal. I'd like to answer your question. See, I think the underlying aspect of the advertising and marketing cost lies in the accounting principle. And the way the accounting principles are defined under NDA is one one five thirteen that in the case of presidential sales, the entire sales is accounted for in the p and l at that time of transferring the position to the customer, whereby although the advertising and marketing costs are all charged to p and l. If if you see in the current quarter, we had a... We had launches and ongoing sales and marketing effort going in the current quarter as compared to the same quarter in the previous year, which in which we didn't had any leads. So the current year quarter looks like given impression of being elevated as compared to on year on year basis. Going forward, these sales and marketing expenses would be in line with the launches which we have planned within the course of the year.

13:48 Okay. Got it. And my second question is, like, with 11,900 cover of residential GDV planned across Estates 361 Phase 2, Estates 105 Phase 2 and Sector 59. Which of this project do you see as the biggest contributor to FY twenty seven pre sales? So all the... We would not like to single out a single project. All these three projects, it will distribute daily... Give a contribution. And the important factor to note is that all these projects are in a... These projects in a different micro markets. While Estate 361 happens to be on the Dwarka Expressway, Sector 59 happens in the case... In the golf course in the upcoming Golf Course Extension Road, and we have a State 105, which is in Noida. So it's widely distributed and would be very much eco distributed across these three projects.

14:40 Okay. That's all from my side. Thank you. Thank you. The next question is from the line of Aman from. Please go ahead. Oh. It's. I wanted to check how exactly the relation has between between Max India and Max Estates, particularly with respect to Anantar. I noticed from Max India's presentation that we are co hosting some of the Anantara projects in the State 351 or State 3. So how exactly does it work? How does it work commercially?

15:29 And how commercially, what kind of revenue share, what shares do we have with this? And also the monetization of your entire project. Sure. Sure. Thank you, thank you, Aman, for asking this question. I mean, just a bit clarity, Max Estates Estates, Max India being the holding company, Santara, are two distinct... Listed entities having separate managements altogether. At this point of time, the estate projects, estate three sixty one and three sixty one, are completely housed on the balance sheet of Max Estates. And all the development which is happening in these projects, although are being marketed under the brand name of Antara, the entire profit and loss cost, all benefits and expenses are on the balance sheet of an... Of Max Estates. As we speak today, Antara acts as a knowledge partner to Max Estates for which they are given a a fee, which is a fixed fee in the range of close to nine and a half percent, which is a development manager's fees given to them.

16:29 And this... What Antara helps us is it propels and gives us the the community of flavor of our intergenerational community, which gives us a multi pronged venues to sell our product, whereby if you see in the last quarter, we launched Terraces. We have got MAXESTATES luxury residences. We have got a senior living residences under the brand name Antara, and then we have got the Terraces. So all those things make a complete package in our projects in the state 360 and 361. So our relation... Just to summarize, our relationship with Antara is purely an arm's length basis, and they get a 9.5% fee on that top line to to run the... To this... To other development manager for Max Estates. Just just a fact. You can write it on this one. Nine and a half percent of what exactly? Of what Of the of the top line. So they gave So what is happening is...

17:25 Just to clarify, in the case of f k three sixty, one third of the project was being marketed and developed under the brand of Antara. So on the one third portion, which is close to what ballpark in the range of 1,200 to 1,500 crores of SK $3.60, which was under the pages of Antara. Only on that, they get 9.5% and not on the entire project. Since it becomes... So technically, it becomes Antara project, which we are developing. So is this strategy... Would it get... Help us get extra in terms of extra date for 20 to how... Does it help to have the entire? I understand it's a holding but how how exactly do you to use the?

18:14 So what happens is... I think I'd like to defer on this. It does not become an project. It remains a MAXESTATES project. And what happens because of the expertise which is coming on the table for the senior living component to Antara, Antara is able to drive better price realizations on the assets which means... And thereby, I'm making it as self funded. So the way to look at this, we... Without having a a cost escalation, in fact, better economics, we are able to get a better sales velocity on the section, which is unsold under the brand name of Antara. In estate 360, we had a continuous basis. We had a price escalation of of price differentiation of Antara compared to luxury residences in the range of seven to 10%.

18:59 What it means that whatever fee which we were paying to them was getting realized, and they were able to realize the pricing, which was in premium to MAXESTATES residences. So you're saying 18% of extra revenue we made, and that is in itself passed through to them? It's not 18%. I think you you... I think I'll again repeat the revenue. The revenue is fully to the account of Max Estates. On the top line, if we sell an apartment of 5 crores, the top line accrues to Max Estates. And if it's a senior living apartment, they get $45.48 lakh rupees as a fee, and that is also paid as we collect over the life cycle of the project and not upfront. Are the revenues fees with Mister Karen? Hello?

19:48 Hello. Hello, mister Aman. I just request you to rejoin the queue for the follow-up question, please. Thank you. Yeah. Thank you. A reminder to all the participants, you may press star and one to ask question. The next question is from the line of Karankana from. Please go ahead. Yeah. Hi. Thanks for the opportunity. So firstly, Sai, a question at a broader macro and, you know, the industry level. Are you seeing a lot of new graded developers taking a chance in the Gurgaon and Delhi NCR market at large with premium projects which have been launched lately? While obviously this shows that demand has been quite resilient, how should one read the success of one of your peers project in Mumbai from Mumbai and you may add golf course extension door? And what does this do to your project in Sector 59? And more importantly, with increased competition, how should one think about BD potential given that there will be higher demand from the landowners and the overall scope for absorption of inventory given that many new projects have similar ticket sizes?

20:54 Yes. Thank you for that, Karan. So we do continue to believe that there is a wave of consolidation that is happening in the real estate space and that consolidation towards organized, trusted listed players will continue. And we are seeing a trend of that. In specific, we remain very encouraged by the response some of our peers have received in the Gurgaon market. It is reflective of the inherent demand for a good quality offering and product and the brand. And as Max Estates, we believe that we firmly operate in that category, where from a product differentiation perspective, from a brand recognition perspective, we do believe that we will be able to command very strong sales. And our track record has shown that to us by the fact that we have closed 5,300 crores plus sales in the last two financial years and even in Q1, having done INR 1,100 crores of sales as we speak.

21:58 On the business development part, I think we remain very confident and optimistic that there will be while there will continue to be a consolidation amongst the listed and organized players, MAXESTATES continues to be one of them, and we'll continue to do the BD in the within our guidelines and within our parameters, and we continue to do that as we move forward. So we remain very optimistic about that as well. Sure. And then second question, sir, is on the BD pipeline. You had earlier said that Ghaziabad, JWR and Faridabad were markets you were studying, but your core focus remained Gurgaon, Delhi and Noida. With Ghaziabad now appearing more prominently in the conversation as well as on Slide 29 of your investor presentation, has MAXESTATES moved beyond evaluating markets to actively pursue specific parcels? And if so, could you give us some sense on the potential scale, deal structure and return hurdles that you're seeing in Ghaziabad versus the traditional Gurgaon and Vaida markets?

23:00 Yes. So we at MAXESTATES will continue to evaluate many, many opportunities and within the greater NCR region as well, and we are already doing that as is evident and as we've shown. It's a little premature at this stage to give guidelines or to give guidance on what the commercial parameters of a deal that we have not yet closed are. But I think broadly, just to give you perspective, NCR and the larger part of NCR, we remain very confident to continue to accelerate our growth journey. Sure. And then lastly, Nitin, in the last call, you had indicated INR 2,500 crores to INR 3,000 crores of FY 'twenty seven collections against INR $15.78 crores last year, with project deployment of around INR 1,500 crores to INR 1,800 crores.

23:47 Given Q1 collections were around INR 500 crores, are you still comfortable with the INR 2,503,000 crores full year range? And importantly, should we expect OCF to remain meaningfully positive even as construction spend accelerates at SJ 105, Maxwell and SJ 361? Absolutely, Karan. In fact, the quarter one collections has, in fact, given us more confidence that we are on track to achieve our target collections and also for the current year. And we expect our collections to be in the range of 2,500 to 2,700 crores in the current year, which would be a combination of the projects that you've already sold, which will be hitting the construction milestones and the fresh sales which we are planning to do, which is in good proportion to among of them. And we would be deploying... Say, if I can break up my my deployment would be on two prong. One would be on the... We would be deploying close to 1,500 to 1,800 crores on the project, and we would be having OCF of close to $752,000 crores left, which we'll be trying to deploy on the on the BDA efforts ongoing in the company.

24:47 Great. Thank you. And these are my questions. I'll come back and let you find any follow ups. Thank you,. Thank you. The next question is from the line of Ditesh Seed from AXES Capital. Just two, three questions. Firstly, see, if I see the velocity that we have achieved in at the in projects which you've launched in 361, MAX '1 and S-eight thousand one hundred and five, we we we can see, like, 50 to 70% of the Mister, line is not clear.

25:39 Hello? Is it fine now? Yes. Go ahead. Please go ahead. Okay. Okay. So I was just checking on the one should have now given that we have sold 50% to 70% of the inventory in first six months, how should we think about velocity? Like should we, going forward, also assume that whenever a project is launched within six months, there is enough demand where we give this kind of velocity and within the one year or two years, should be able to sell out this project. And apart from that, for MAX one, while it's on the ultra luxury side. We know where there, how should or it can go the sales can the project?

26:31 Yeah. So, you know, just to give you an overview, we are not giving forward looking guidance in terms of sales. But as you have seen our track record, we remain extremely optimistic and confident in achieving very robust sales. You've seen that you mentioned the numbers that we have done. I would like to highlight that even in this quarter, almost 50 of our sales came from sustenance sales and 50% came from a new launch, approximately. So we remain very confident on the strength of the product, on the strength of the brand, on the pull that we have on our geographical diversification and on our product diversification to continue the growth trajectory from Max Estates at large.

27:24 A word from guiding for for FY '27? Or Mister, we can't hear you. Your line is not clear properly. Okay. Is it better now, or should I come back in come back? It's better. Yeah. Yeah. Okay. Just as follow-up, you still want to give me the guidance for FY '27 or now that we have seen first full quarter and half of second quarter as well, you are more confident on guiding for FY '7? Yes. So like I said, we are not giving a guidance for FY 'twenty seven. All we are saying is we do have about 16,000 crores of inventory available with us to sell and for the coming year and beyond. So we remain very confident, optimistic that what we have is in fantastic locations. It's a great product mix.

28:19 It's a great you know, product diversification based on our strategy. So we remain very confident on that. Sure. Sure. And just one last, you know, in terms of launches, you highlighted Q3, we will have sector 59 launch. But apart from that, the balance inventory in 361 and it stayed 105. How should one think about phasing that out? Yes. So some of it will obviously go to FY 'twenty eight, and we'll plan it in that. Like I said, of the INR 16,000 crores, there'll be some which will come in Q3, and there'll be some that will come in FY 'twenty eight as well. You want to exactly put in a $15,000 can take half or it will be more in FY 'twenty eight and less in FY 'twenty seven?

29:18 Like I said, we will decide that basis the market scenario and macroeconomic environment. Sure. Sure. Okay. Just one last on the Delhi. Now take it. I'll show one thing about the time. Yeah. So this is this has been this one of the most, you know, important milestones in this development, whereby the hurdles have finally got cleared. And now with the DDA finally agreeing to this, the new guidelines that have come has cleared the path for land cooling to finally take off. And we, as Max Estates, continue to be extremely excited and optimistic, and we believe that this is a complete transformational policy for the state of Delhi for development in Delhi and for housing in Delhi. So it's completely a very, very transformative broad policy and contours of the deal, which is in line with what has been the discussions that DDA has had over the many past many years. So we are we are very happy that finally this has come through.

30:38 And in terms of timelines of getting into the listed entity? Yeah. It's it's it's difficult to mention timelines. As you know, that this has just happened a few days ago, so we are still, you know, trying to get more details of it. We understand that there is still some notification that Ministry of Housing has to do. So... And then, you know, we have to understand in more detail some of the aspects. But, yes, it is something that we will look at as Max Estates very, very seriously. Sure. Okay. That's it from my side. Thank you for answering all the questions and all the rest. You. You. The next question is from the line of Pariksheet Gupta from Fair Value Capital. Please go ahead.

31:24 Thank you very much for the opportunity, excuse me, and congratulations on a good quarter. My first question is in continuation from one of the other participants on business developments. In the previous quarter's con call, we also articulated the fact that the discussions with landowners were opportunistic given the volatility in pricing. Can you please help us understand the current scenario? I mean, how the discussions are going? Is the pricing more favorable or anything on that sort, please? I think we continue to remain very optimistic and push on the business development pipeline.

32:10 As you know, as I discussed, we have identified our key geographies, and we continue to drive them. At this stage, I would not like to comment any more on how some of those discussions are going, obviously, because of the competitive nature of each of those opportunities. But it's suffice to suggest that we are very optimistic and we are continuing to push the business development pipeline. Okay. Thank you for that. My second question is just a bookkeeping question. So when you mentioned that the 1,000,000 square feet of commercial real estate will be added each year, does that is that inclusive of the INR 700 crores annuity guideline guidance? Or is it on top of that?

32:58 Yeah. Thank you. This is Nitin. Just to answer that, 700 crores is an account of the projects which we've already done and under construction and the development at this point of time. As we... So 1,000,000 is over and above what the 700 crores is. Understood. This is very helpful. That's it for now. I'll join back the queue for any questions, and good luck for the quarter. Thank you so much. Thank you. The next question is from the line of from IIFL Capital. Please go ahead. Yeah. Hi. Thanks for the opportunity. I just wanted to get a sense of the cash flows for this quarter. So, our collections were quite healthy, but our net debt has seen some increase.

33:44 So, can you give some flavor on how the cash flows have been deployed in the quarter? So, I think we the way we have to think is that although our debt has gone up, so has our cash balance has also gone up. The current the debt which is going up is on account of the construction finance we have taken on the commercial assets. Currently, we have got three assets which are underway. We have got MAXESTATES MAXESTATES, and MAXESTATES which is underway. So as we speak today, what is happening is the debt drawn on this projection, which is towards construction finance is getting added and which adds to the overall date of the company. Okay. And the... So how do we explain the the rise in net debt then? Because net debt also has gone up.

34:39 Have we deployed so have our construction spends accelerated in the quarter or? Our construction spend is across the FX. What is happening in addition to what we're deploying on the projects, we're also paying for the land. We also have a land revenue share to its landowners, which go over there. So if you see in terms of actual deployment, it has accelerated in the quarter. Okay okay. My second question was on the commercial side. So, have you made any progress in terms of preleasing for after a strong FY twenty seven after a strong FY 'twenty six where we saw some good preleasing momentum for our under construction assets. So because our peers are saying that there are some deferrals by large clients. So how are we seeing the leasing momentum for our assets?

35:33 So we see a strong traction. If you see in our last quarter, we had mentioned about both our projects and the construction projects. MAXESTATES having close to two lakhs square feet of getting pre leased. In the case of MAXES, it was 200,000 square feet of getting pre leased. I have to assure you, as we speak today, in both the projects, we have a pipeline of... Which is in excess of 3,000,000 square feet, which is under discussion. And the also important part to note is that our preleasing momentum is not only on the front end, it's also the increase in premiums on the rates which we are getting. Both the preleasing happen at a 25 to 30%, and we are gradually trying to inch up the premium on the remaining preleasing, which you're planning to do. Sure. That's helpful. Thank you. Thank you.

36:20 The next question is from the line of Akash Gupta from Nomura. Please go ahead. Hi. Am I audible? Yes, sir. Yes, please. Hi, sir. My first question is on the launch lineup for FY twenty seven. I wasn't clear. So we have INR 15,000 crores of GDV launch pipeline. Could you just give us a sense what is the value of launches that we are looking in the balance nine months, if quarterly, if possible? That's my first question. So I think broadly, we will have close to, I would say, 5,000 crores of launches that we are looking to do in the remaining half of the year that we have in the second half of the year.

37:07 And yes, between INR 5,000 to INR 5,500 crores of new launches, and we will have about INR 3,000 crores to 4,000 crores of old inventory that we have available with us as well that is already launched that we continue to sell through the sustainment process. Understood. And my second question is on the FY 'twenty seven pre sales guidance. I'm seeing Slide 15, and we continue to give guidance for the past three years, and now we have changed our strategy. All your peers are also giving guidance or at least on the presales and launches. So I just wanted to understand why has there been a change in strategy? We feel that giving a guidance is in the current macroeconomic environment is not the best thing for the long term health of the company and is not in the we are very focused on the quality of sales that we do in how we sell, in who we sell to, etcetera. And therefore, I don't want to, you know, unlock ourselves in by giving guidance and especially in the macroeconomic environment, which is extremely volatile. So we we we have to take in the path of not giving sales guidance, and we will stick to The next question is from the line of Rupik Seth from 1F Financial.

38:36 Just one question from my end. So the Sector 59 project, are we launching the entire project together or it will be phase wise? We will take that decision, you know, as we get closer to the time. I think we we... It's not a very large project in terms of the number of units that we are planning. So this is a decision that the management team will take closer to launch. Okay. But we have the approval for the entire project. Right? Yes. I will. Of course. Okay. Okay. Great. All the best, and thank you. Thank you so much. Thank you. The next question is from the line of Abhishek Lodhia from Antique Stock Broking. Please go ahead. Yeah. Good morning,.

39:25 Just one question. Yeah. So we are developing commercial assets. Just want to understand what kind of CapEx is still remaining. As I can see, we are expecting the certification by q two FY twenty eight for at least phase one. And... Yeah. So that... That's one. And whether that will basically weigh on our balance sheet anymore from here? Or how should we see the cash flow moving on? Vishik. Good morning. Vishik, what we just to get context in the remaining CapEx to be done on the commercial effect, to begin with, to clarify, currently, we have achieved financial closure on all our commercial assets.

40:11 What we had underwritten, we both the equity partners have put in their share of equity, and we have also get debt... Got debt to sanction from leading banks like SVI, ICS, and. The remaining capital which we need to deploy on these assets is amount of close to... The range of 1,500 to 1,800 crores and which would be... Which is completely tied up as we speak. Okay. So basically, the current balance sheet already, I mean, includes that kind of provision, right? The equity provisions have been made. The... As in when we draw the construction finance, if you see, we have been stating that our long term strategy is to take... Put in equity to the tune of 40% and the remaining is done through debt. And once the project is commissioned, then construction finance is is gonna convert into lease rental discounting.

41:02 If you see from the balance sheet reflection, this incremental debt of 1,500 crores is not reflected, but the whole objective is once the building and the projects are completed, this construction finance would be converted into a leave rental discounting. Okay. Thanks for the clarification, Sany. Thank you,. Thank you. The next question is from the line of from Financial Research. Please go ahead. Yes. Thank you for taking my questions and congratulations on very good results. Sir, I wanted to understand a bit more about the MAX India understanding that we have regarding Anpara. I think you alluded a little bit about s three sixty and maybe I understood an s three sixty one also, if you could just go through it once again, please. Thank you.

41:52 Yeah. So I'll try and explain it. I think the way we need to look at it is in the context of where you have a hotel owner and a hotel operator. Right? So you have brands that run hotels. They are operating hotels, and they take management fee for operating that. And the property owner is separate. In the same way, just to give you that analogy, MAXESTATES is the developer of the senior living component as well. Antara is the operator of it, and Antara takes the development management fee for the operations of it. And that's what they will take, and that's how they are scaling with us. And we are, as Max Estates, developing Antara as part of our various developments, not in all of them, but in some of them. And Nitin had highlighted that we do pay about Antara as a development management fee, 9%, 9.5% of the sales value.

42:48 It's also important to note at this time that Antara sells at a premium of approximately 10% compared to our own MAXESTATE sales. So therefore, we are able to offset that cost in that sense. I hope that's clear. Yeah. So if say 360, you mentioned that the senior living portion, the intergeneration community will be about 1,200 to 1,500 crores. Right? Approximately, yes. Correct. And what about $3.61? What would be the the same out of the total, I think, $3.61 above 10,000 crores is the peak GBV. Right? So how much would be the I think between 50 is approximately the sales rep on that. Sorry. You got cut. Sorry. Can you please 15 to 15 to 20% of the total value would be Antara.

43:39 Of $3.61? Yes. Okay. Thank you so much, and all the best. Thank you. Thank you. The next question is from the line of, an individual investor. Please go ahead. Hi. Good morning, team. I have a couple of questions. First is on the lease rental parts. You mentioned that the inventory that you have released is at a premium. So that premium is on today's market rate or when the property will be occupied on those market rates, projected market rates in those years? Thank you, Prashant. So the premium is on today's prevailing market rates. When we do our projections, we have been projecting numbers of what we get today.

44:30 Understood. And what what is the yield that we are targeting on our projects? So when we underwrite the project at the time of greenfield, that is in the range of 12 to 14% is when we underwrite. And by the time the project is completely constructed and lead, if you see the prevailing cap rates of of the prevailing REITs is more in the range of seven... Six and a half to 7%, thereby resulting in significant capital appreciation from the time we take over the asset and the project is delivered and leased. This is... This entire cycle journey happens in the range of three to five years. Understood. And on on Tara front, how much percent of the project do you plan to keep moving forward in your other projects?

45:18 So this is not a... See, what is happening, we would like to have a second portion of senior living component, but that that is not crystallized that all our projects will have a certain portion of. That is depending upon how the market situation is and what is the market acceptability and the the acceptance of senior living in that community. So it's a dynamic feature which we will keep on evaluating on a project to project basis. Understood. Do you see the 9.5% fees which you get on are going down sometime in the future, or is it a fixed fee kind of a thing? It's not a fixed fee. It's a dynamic thing since it's worth... It's a it's a it's a commercial transaction between two commercial entities. It... It's it's always commercially negotiated and comes to a certain conclusion. To give a firm commitment, the number going...

46:05 Remaining static, going up and down would not be possible for us at this point of time. Antara also would be charging for their services in the future. So do we get some revenue share from their portion of revenues? So they... Antara would not be charging anything. They would be one of the facility managers at that point of time once the... Because they have a deep expertise in managing the senior senior living residences, but that would be all on the balance sheet of Max Estates. And the entire revenue stream will accrue to Max Estates only, whatever fee would be given to them would be a function of charges at that point of time. And lastly, are we exploring some other markets or... Sorry, just to add to that, in case the question was about the operating facilities, etcetera, that fee for the Antara component will go to Antara itself.

46:56 Understood. And do we have plans to explore other markets or we will be still focusing on NCR market only in the near future? Yes. We continue to focus on the NCR and the larger NCR region itself. Right. Thank you so much. I'll be back in the queue. Thank you. The next follow-up question is from the line of from. Please go ahead. All my questions are answered. Thank you very much. Thank you,. Thank you. As there are no further questions from the participants, I would now hand the conference over to the management for closing comments. Over to you, sir. Thank you so much. Thank you, everyone, for joining the conference. Look forward to interacting towards the next quarter results. Thank you so much.

47:47 Thank you. On behalf of private limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.