Ashiana Housing - Banking on Tier II and III towns!

Ashiana will report ~300 cr. revenues in Q4 with muted margins due to shift of delivery of higher margin projects to FY26. Concall notes below

FY25Q3

  • Witnessed good bookings across projects this quarter, the 2000 cr. pre-sales guidance is contingent on launch of Ashiana Amarah Phase-V in Gurgaon
  • Q3 launches: Ashiana Swarang in Nemmeli (senior living), Ashiana Ekansh (Phase-4) in Jaipur, Ashiana Amodh (Phase-2) in Pune
  • Have 15 lakh sq.ft of unsold inventory in ongoing project + 47 lakh sq.ft of inventory to be launched in existing projects + 25 lakh sq.ft of land (excluding Milakpur). ~87 lakh sq.ft means ~3-4 years of inventory
  • Are also in talks for 10-12 lakh sq.ft land in Bangalore (to be finalized in 2 quarters)+ 20 lakh sq.ft land in Jaipur + another 7-8 lakh sq.ft land parcel for a senior living project in another location (early stage)
  • Excessive exuberance in Gurgaon has mellowed down, demand is more normal now
  • They believe they in 2-years they will be reporting 1700 cr. revenues with higher margin projects that were acquired in 2021-22 + operating leverage due to optimization of fixed costs + higher contribution of senior living housing which have higher margins. Expect to reach high teen PAT margins in 5-years
  • Expecting 300 cr. reported revenues in Q4 with much lower margins as Ashiana Anmol Phase-2 will get delivered which is a very low margin project. The high margin project Ashiana Advik Phase-1 delivery got shifted to Q1FY26

Disclosure: Invested (no transactions in last-30 days)

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