Ajmera Realty & Infra India Limited (ARIIL) reported a robust operational performance in the first quarter of fiscal year 2026, with collections surging 42% year-on-year (YoY) to ₹234 crore. This significant growth in collections underscores the company's strong cash flow realization from existing projects. However, the quarter saw a mixed performance, with sales value declining by 65% YoY to ₹108 crore and sales area decreasing by 52% YoY to 63,244 sq. ft.
| Metric | Q1 FY26 | Q1 FY25 | YoY Change | Q4 FY25 | QoQ Change |
|---|---|---|---|---|---|
| Collection | 234 | 165 | +42% | 182 | +29% |
| Sales Value | 108 | 306 | -65% | 250 | -57% |
| Carpet area sold (sq. ft.) | 63,244 | 1,30,801 | -52% | 1,85,939 | -66% |
Operational Highlights
For the quarter ended June 30, 2025 (Q1 FY26), Ajmera Realty & Infra India Limited demonstrated strong financial discipline, with collections reaching ₹234 crore. This represents a substantial 42% increase compared to ₹165 crore in Q1 FY25 and a 29% sequential growth from ₹182 crore in Q4 FY25. The company highlighted that this robust collection performance reflects efficient operational execution and effective cash flow management from its ongoing projects.
In contrast, the sales performance for the quarter showed a notable decline. Sales value stood at ₹108 crore in Q1 FY26, a significant drop from ₹306 crore in the corresponding quarter of the previous fiscal year. Quarter-on-quarter, sales value also decreased by 57% from ₹250 crore in Q4 FY25. Similarly, the carpet area sold in Q1 FY26 was 63,244 sq. ft., down 52% from 1,30,801 sq. ft. in Q1 FY25 and a 66% decline from 1,85,939 sq. ft. in Q4 FY25.
The company attributed the subdued sales performance primarily to sector-wide regulatory challenges, which led to delays in project launches. This included certain key projects of Ajmera Realty itself. Additionally, lower available inventory in existing projects contributed to the reduced sales during the quarter.
Management Commentary
Commenting on the company's operational performance for Q1 FY26, Mr. Dhaval Ajmera, Director - Corporate Affairs, acknowledged both the strengths and the prevailing sector-wide challenges. "Our Q1 FY26 results reflect both strengths and sector-wide regulatory challenges," Mr. Ajmera stated. He expressed satisfaction with the robust 42% YoY growth in collections, emphasizing that it demonstrates the company's operational efficiency and project execution capabilities.
However, Mr. Ajmera also addressed the sales decline, noting, "the lack of necessary approvals led to delays in new launches, while lower available inventory in existing projects contributed to sales during the quarter." He conveyed optimism regarding the resolution of these permission delays, stating that the company has undertaken concerted efforts and remains optimistic about accelerating project launches soon.
Strategic Outlook and Future Plans
Looking ahead, Ajmera Realty & Infra India Limited is focused on accelerating its project pipeline and delivery. Mr. Ajmera highlighted the company's plans to deliver approximately 1,000 homes by the second half of FY26. This target is supported by fast-tracked execution across six residential projects located in Mumbai and Bengaluru, backed by sustained construction progress and inventory absorption.
The company's strategy continues to center on timely execution, innovative design, and sustainability. This approach, according to Mr. Ajmera, resonates with home buyers seeking quality in high-growth micro-markets. He further emphasized that disciplined project management and a customer-centric approach position Ajmera Realty well to achieve its FY26 aspirations and deliver long-term stakeholder value. The company aims to overcome the current regulatory hurdles and capitalize on its strong collection momentum to drive future growth.
Market Context
The real estate sector in India has been navigating various regulatory changes and approval processes, which can sometimes lead to project delays. Ajmera Realty's Q1 FY26 operational update reflects this dynamic, showcasing strong cash flow generation from existing projects while new sales are impacted by external factors. The company's focus on resolving approval delays and accelerating project launches will be crucial for its sales performance in the upcoming quarters. The robust collections indicate underlying demand and efficient project completion, which are positive indicators for the company's financial health despite the temporary sales headwinds.
