Ashiana Housing Sets Pre-Sales Target of Rs 2,000 Crore for FY26

Mumbai, June 6, 2025: Ashiana Housing Ltd. (NSE: ASHIANA, BSE: 523716), has set a pre-sales target of ₹2,000 crore for FY26. This goal comes as the company looks to rebound from a challenging FY25, which was marked by delayed project handovers and a consequent revenue dip.

Ashiana Housing’s shares opened at ₹327.70, slightly higher than the previous close of ₹324.40, with a trading volume of 74,472 shares and a value of ₹249.03 lakh. The stock traded between ₹323.70 and ₹336.55, with a market capitalisation of ₹3,361 crore. Its 52-week price range spans from ₹247.80 to ₹469.00, the all-time high. The company’s beta is 0.64, indicating relatively low volatility. Despite a significant 78% year-on-year decline in earnings per share to ₹1.81, the stock commands a high P/E ratio of 184.75 and a P/B ratio of 4.45, suggesting strong investor confidence amid cautious market conditions.

 Revenue Recovery Projected in FY26 with Completion of Key Projects

The company’s revenue dropped by 42.3% year-on-year to ₹557.45 crore in FY25, largely due to the postponement of deliveries for major developments such as Advik Phase-1, Anmol Phase-2, and Shubham 4B. However, Ashiana is optimistic about FY26, projecting a significant revenue rebound to around ₹1,200 crore as these delayed projects are handed over to customers.

Profitability is expected to see a marked improvement from FY27 onwards. As older, lower-margin legacy projects are completed, new high-margin phases—particularly within the Amarah project in Gurgaon, are anticipated to drive financial performance.

New Launches Set to Drive Growth in FY26

Ashiana has outlined a robust development pipeline for FY26, including several key project launches:

• Ashiana Aaroham, Gurgaon – Phase 1 is planned for Q3FY26, offering a total saleable area of 11 lakh sq. ft.
• Ashiana Amaya, Jamshedpur – Launch scheduled for Q3.
• Jaisingpura, Jaipur – A four-phase residential project set to begin in Q4.
• Aravali (Jaipur Legacy Project) – Finally ready for launch following clearance of earlier regulatory issues.

In addition, the company will roll out new phases across its senior living and other ongoing residential projects to maintain momentum.

Senior Living Segment Expands Share and Strengthens Presence

Senior living remains a strategic priority, comprising 33% of Ashiana’s active development pipeline. The company recorded ₹360 crore in pre-sales from this segment in FY25 and is targeting ₹450 crore in FY26.

Recent senior living projects such as Ashiana Swarang in Chennai and Ashiana Amodh in Pune have shown encouraging pricing strength, with average realizations surpassing ₹9,000 per sq. ft. The company plans to expand its senior living footprint to Panvel, Bangalore, and Chennai, contingent upon fulfilment of land-related conditions.

Land Acquisition Challenges Persist Amid High Costs

High land prices in key urban markets such as Jaipur, Bhiwadi, and the NCR region are pressuring the company’s broader residential expansion strategy. While Ashiana remains cautious about participating in inflated land deals, it continues to explore viable acquisition opportunities in less saturated locations, particularly those conducive to senior living projects.

Cash Flow Resilient Despite Profit Dip in FY25

In FY25, Ashiana posted a Profit After Tax (PAT) of ₹18.24 crore, reflecting the impact of legacy low-margin projects. However, the company achieved its highest-ever pre-tax operating cash flow at ₹429.9 crore-a notable milestone.

Although revenue is expected to normalise in FY26, PAT margins may continue to be under pressure. A more meaningful improvement in margins and Return on Equity (ROE) is projected for FY27, driven by higher-margin contributions from new project phases.

Leadership Commentary

“We are targeting ₹2,000 crore in bookings for FY26, building on our strong unsold inventory base and upcoming launches. While revenue and margins were impacted in FY25 due to delays, we expect deliveries to pick up pace this year,” said Mr. Varun Gupta, Whole-Time Director.

He added, “Senior living will be central to our growth strategy. We are building a strong pipeline in cities like Bangalore, Chennai, and Panvel and see potential to scale this segment to over ₹1,000 crore in annual bookings in the future.”

Strategic Focus on Core Markets and Execution Discipline

Ashiana Housing remains committed to its long-term vision of sustainable growth, supported by timely delivery of projects, prudent capital deployment in senior living, and a concentrated focus on core geographies. With FY26 expected to mark a turning point, the company aims to reinforce its leadership position in both premium and senior living residential segments.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/cc229edb-b726-4e4c-acea-9b4c20f9105e.pdf

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