Aditya Birla Real Estate Limited — Investor Meet, 24-01-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** Aditya Birla Real Estate reported a consolidated turnover of ₹946 crores for Q3 FY25, reflecting a 4% decline year-on-year. EBITDA stood at ₹18 crores, resulting in an EBITDA margin of 1.9%, and a net loss of ₹37 crores. In contrast, for the first nine months, turnover increased by 18% year-on-year to ₹3,206 crores, with EBITDA of ₹241 crores and a margin of 7.5%, culminating in a net profit of ₹3 crores.

**Future Outlook and Growth Drivers:** Management remains optimistic about the real estate sector, driven by urbanization and rising income levels. Upcoming product launches are expected, including six new projects worth approximately ₹8,000 crores this quarter.

**Order Book and Operational Updates:** The real estate segment experienced a remarkable booking value increase of 257% year-on-year to ₹675 crores. Significant project revenue growth was noted from Birla Estate, which surged 117% to ₹184 crores due to strong delivery performance in key markets.

**Analyst Q&A Insights:** Management clarified ongoing losses attributed to higher corporate overheads and delayed revenue recognition from property handovers, particularly in Kalyan. Future guidance for presales remains cautious, pending performance from upcoming launches. Competitive dynamics and legal challenges regarding the Worli land were discussed extensively, with assurances that the impact on ongoing projects is negligible.

**Market or Regulatory Updates:** The management addressed litigation tied to the Worli land, confirming that it remains localized and does not impact the broader project pipeline.

**Strategic Focus Areas:** Focus remains on sustainability and innovation, with recent project certifications underscoring its commitment to environmental standards.

**Investor Insight:** Financial performance shows a cautious yet resilient trajectory. Given the growth potential in the real estate pipeline and market positioning, this could be viewed as a ‘hold’ while monitoring execution of new projects and stabilizing earnings amidst macroeconomic headwinds.