Why Did Ajmera Realty Experience a 65% Decline in Sales Value in Q1?
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Synopsis
Ajmera Realty faces a dramatic downturn in sales for Q1 FY26, reporting a 65% decline in sales value and a 52% drop in carpet area sold. Despite these challenges, cash inflows show a positive trend. What does this mean for the future of Ajmera Realty?
Key Takeaways
- 65% drop in sales value in Q1 FY26.
- Carpet area sold decreased by 52%.
- Cash inflows increased by 42% YoY.
- Delays in project launches impacted performance.
- Future delivery of 1,000 homes planned for H2 FY26.
Mumbai, July 12 (NationPress) Ajmera Realty has reported a significant decline in its sales performance for the first quarter of the current financial year (Q1 FY26) — both on a year-on-year (YoY) and quarter-on-quarter (QoQ) basis. The real estate company recorded a sales value of Rs 108 crore in Q1, reflecting a 65% drop compared to Rs 306 crore in the same quarter last year, as stated in a stock exchange filing.
In terms of carpet area sold, Ajmera Realty reported 63,244 square feet during the April-June period, which is a 52% decline from 1,30,801 sq ft in the same quarter last fiscal.
Sequentially, the sales value also fell 57% from Rs 250 crore reported in Q4 FY25. The carpet area sold saw an even steeper decline — by 66% — compared to 1,85,939 sq. ft. sold in the previous quarter.
Despite the subdued sales performance in the last quarter, the company reported some positives in its cash inflows. The real estate firm's collections for the quarter reached Rs 234 crore, up 42% YoY from Rs 165 crore in Q1 FY25.
Sales performance during the quarter faced challenges from sector-wide regulatory issues, which led to delays in project launches, including key projects of Ajmera Realty, as highlighted in its filing.
“The lack of necessary approvals resulted in delays for new launches, while lower available inventory in existing projects affected sales during the quarter,” noted Dhaval Ajmera, Director-Corporate Affairs.
With fast-tracked execution in progress across six residential projects in Bengaluru and Mumbai, supported by consistent construction progress and inventory absorption, we are poised to deliver approximately 1,000 homes by the second half of FY26, Ajmera added.
Ajmera Realty shares decreased by 2.43% to close at Rs 897.90 on Friday on the NSE. Meanwhile, its 52-week high and low values were Rs 1,224.90 and Rs 609.55, respectively.
Point of View
It is crucial to highlight that while Ajmera Realty's sales figures indicate a troubling trend, they also reflect broader regulatory challenges within the real estate sector. The company's proactive approach in managing its projects could signal potential recovery, making it a key player to watch moving forward.
NationPress
13/07/2025
Frequently Asked Questions
What led to the decline in Ajmera Realty's sales?
The decline was primarily due to regulatory challenges that caused delays in project launches and lower available inventory.
How much did Ajmera Realty's sales value drop?
Ajmera Realty's sales value dropped by 65%, from Rs 306 crore to Rs 108 crore.
What is the carpet area sold in Q1 FY26?
The carpet area sold in Q1 FY26 was 63,244 square feet, a 52% decline from the previous year.
What are the future prospects for Ajmera Realty?
The company plans to deliver approximately 1,000 homes by the second half of FY26, indicating potential recovery.
How did Ajmera Realty's shares perform recently?
Ajmera Realty shares fell by 2.43%, closing at Rs 897.90 on the NSE.
