Aditya Birla Real Estate Approves ₹1,500 Cr Debt Plan Amid CPP Sale; Q1FY26 Net Profit at ₹47.71 Cr
By Shishta Dutta | Published at: Jul 23, 2025 04:01 PM IST
Mumbai, July 23, 2025 – Aditya Birla Real Estate Ltd (NSE: ABREL, BSE: 500040), formerly known as Century Textiles and Industries Ltd, reported a consolidated net loss of ₹27.08 crore for Q1FY26 despite a standalone net profit of ₹47.71 crore, supported by gains from discontinued operations.
The company’s Board also approved raising to ₹1,500 crore in term loans to refinance existing capital expenditure-related debt in light of its planned sale of the Century Pulp and Paper (CPP) division to ITC Ltd.
Aditya Birla Real Estate Ltd Share Price Momentum
As of 2:31 p.m. on July 23, 2025, the share price of Aditya Birla Real Estate Ltd. is trading at ₹ 2,026.30, down 5.17%. The share was opened at ₹2,137.50 and reached a high of ₹2,153.80 on the same day.
Financial Snapshot
In Q1 FY26, the company reported standalone revenue of ₹66.97 crore and a net profit of ₹47.71 crore, showing improvement from Q1 FY25 and a solid recovery from the losses incurred in Q4 FY25. Consolidated performance fell short, with revenue of ₹157.41 crore and a net loss of ₹27.08 crore, continuing the pressure from the now-discontinued pulp & paper and textile operations, impacting performance. While EBITDA was still in negative territory, earnings per share came in at ₹-2.30. Though standalone earnings improved, the group continued to face challenges.
Key Corporate Update
The Board has approved:
- Fundraising of up to ₹1,500 crore via secured/unsecured Rupee Term Loans to refinance debts tied to the CPP division.
- The refinancing will also facilitate the release of encumbrances on CPP assets ahead of its planned divestment to ITC Ltd.
Segment Performance
The suspended operations of the company generated a profit of ₹20.22 crores, contributed mainly by a gain of ₹17.74 crores related to the sale of assets of the textile unit, while the suspended operations of pulp and paper generated revenues of ₹678.76 crores and PBT of ₹24.15 crores. The continuing operations of real estate generated revenues of ₹130.26 crores but resulted in a loss of ₹43.96 crores, while the other segments generated profits of ₹8.91 crores on revenues of ₹14.08 crores.
Management Commentary
The company clarified that the losses in consolidated operations were due to real estate cost overruns and losses from its joint ventures. Exceptional items in FY25 included write-offs related to land litigation and joint venture liabilities. No such items were reported in Q1FY26.
The management reaffirmed that conditions precedent for the sale of CPP to ITC are being addressed, and the transaction remains in process.
Debt Metrics & Net Worth
| Metric | Q1FY26 | Q4FY25 |
|---|---|---|
| Debt-Equity Ratio | 1.32 | 1.29 |
| Interest Coverage Ratio | (1.12) | (2.76) |
| Debt Service Coverage Ratio | (0.73) | (0.02) |
| Consolidated Net Worth (₹ Cr) | 3,835.56 | 3,888.27 |
Note: Deterioration in coverage ratios stems from negative earnings before interest and tax in Q1FY26.
Company Overview
Aditya Birla Real Estate Ltd (formerly Century Textiles and Industries Ltd) is a listed entity on NSE and BSE, operating across real estate development, viscose filament yarn, salt and chemicals. The company is divesting legacy businesses in pulp, paper, and textiles to streamline its core focus on real estate.
REF:https://nsearchives.nseindia.com/corporate/CENTURYTEX_23072025131355_Outcome.pdf
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