Aditya Birla Real Estate (500040) Q2 25/26 earnings summary

Executive summary

• Achieved strong sales bookings of INR 8,895 million in Q2 FY26, up 111% year-over-year, with flagship projects in Mumbai and Bengaluru contributing significantly.

• 80% of launched areas sold as of September 30, 2025, reflecting robust demand and brand strength.

• Strategic transformation continues, with a focus on sustainability, innovation, and operational excellence; recognized for ESG leadership, including the Sword of Honour and top GRESB ranking in Asia.

• Strategic divestment of Century Pulp & Paper to ITC Ltd. for €34.98 billion to focus on core real estate business.

• Board approved unaudited standalone and consolidated financial results for Q2 FY2025-26, including discontinued operations from pulp & paper and textiles segments.

Financial highlights

• Operating cash flow was -INR 4 billion in H1 FY26, with project development costs at INR 10 billion and collections at INR 9 billion; cash flow expected to normalize with upcoming billings.

• Q2 FY26 net total income at ₹313 million, down 66% year-over-year; H1 FY26 net total income at ₹867 million, down 58%.

• Q2 FY26 EBITDA at -₹547 million, with a net loss after discontinued operations of -₹178 million.

• Standalone Q2 revenue from operations: ₹67.04 crore; net profit: ₹79.31 crore (including discontinued operations).

• Free cash flow for Q2 FY26 at -₹2,798 million; H1 FY26 at -₹6,523 million.

Outlook and guidance

• Confident of achieving robust launch pipeline for FY26, with estimated GDV of INR 13,900 crore (₹139,323 million) in the second half across 7.8 million sq ft.

• Cumulative cash flow collections expected to reach INR 2,000 crore by December 2025.

• Targeting INR 10,000–15,000 crore of new business development deals before year-end.

• Continued emphasis on ESG, with a perfect GRESB score and top ranking in Asia.

• Company is in process of divesting pulp & paper business to ITC Ltd.; conditions precedent under BTA are being satisfied.