Ajmera Realty crosses Rs 1,000cr in annual sales—What’s fueling this real estate surge?

Ajmera Realty & Infra India Limited posted a notable growth trajectory in the financial year ended March 31, 2025, with annual pre-sales reaching ₹1,080 crore, up 6% year-on-year. The company also reported collections of ₹646 crore, a 13% rise compared to the previous year, underlining improved execution efficiency and sustained demand across projects. This performance marks another milestone in Ajmera Realty’s long-standing presence in India’s residential real estate sector, where it has gradually repositioned itself as a premium mid-luxury housing developer with a focused pan-India strategy.

Despite moderate sales in the final quarter of the year—where the company saw a sequential and year-on-year decline in Q4FY25 sales value and collections—the overall yearly performance remained resilient, supported by consistent execution and strategic new launches.

What drove Ajmera Realty’s FY25 growth?

A combination of project-level execution, sales momentum across older developments, and timely new launches were key contributors to the company’s FY25 performance. Sustenance sales played a significant role, particularly at projects like Ajmera Lugaano and Ajmera Florenza, which reached about 96% sales. Other developments, such as Ajmera Eden and Ajmera Manhattan in Mumbai, also recorded around 90% sales, while Ajmera Greenfinity and Ajmera Prive hovered around 70-71%.

The pace of sales was further reinforced by project launches during the year. Developments such as Ajmera Vihara, Ajmera Iris, and Ajmera Marina were rolled out across quarters and achieved sales velocities of 65%, 64%, and 42% respectively. These metrics highlight the company’s ability to execute timely launches while capturing buyer interest in both luxury and mid-segment residential markets.

Notably, Ajmera Prive was completed in approximately 27 months from its launch, and the company has already applied for an Occupancy Certificate, signalling a fast-track construction and compliance cycle that aligns with buyer expectations and regulatory adherence.

How significant are Ajmera Realty’s new development plans?

Ajmera Realty’s development pipeline also saw an expansion in FY25, aligning with its broader strategy of 5x growth over the coming years. The company added three new projects to its portfolio, comprising approximately 700,000 square feet of potential development area with an estimated gross development value (GDV) of ₹2,300 crore. These additions were sourced through a mix of outright purchases, organic growth, and society redevelopment, suggesting a diversified approach to land acquisition.

With these additions, Ajmera’s total launch pipeline now stands at around 2.6 million square feet with a projected GDV of ₹6,800 crore. The scalability of this pipeline could prove instrumental in achieving the company’s long-term financial objectives, especially in light of ongoing efforts to secure faster regulatory approvals and streamline project launches.

How did Ajmera Realty’s Q4FY25 performance compare with previous quarters?

While FY25 as a whole reflected growth, Q4FY25 revealed a mixed picture. Carpet area sold during the quarter stood at 185,939 square feet, a strong 64% year-on-year increase. However, in terms of sales value, the company reported ₹250 crore in Q4FY25, a 13% decline from ₹287 crore in Q4FY24 and a 7% drop from ₹270 crore in Q3FY25. Collections followed a similar trend, reaching ₹182 crore, down 8% year-on-year but rising 9% sequentially.

The discrepancy between carpet area growth and revenue figures may reflect pricing dynamics, with a higher volume of units being sold at possibly lower ticket sizes or slower conversion of premium inventory. Nevertheless, the uptick in collections from the previous quarter points to improving execution efficiency, which will be crucial in managing working capital and maintaining liquidity during new launches.

What are the company’s key projects and market presence?

Ajmera Realty maintains a diverse portfolio of residential projects across key urban centres such as Mumbai and Bengaluru. In Mumbai, ongoing developments include Ajmera Manhattan, Ajmera Greenfinity, Ajmera Vihara, Ajmera Prive, and Ajmera Eden—each positioned to appeal to both upper mid-income and premium buyers. In Bengaluru, the company continues to derive traction from Ajmera Lugaano and Ajmera Florenza, which have already achieved high levels of sales.

Ajmera also benefits from a substantial land parcel at Bhakti Park in Wadala, Mumbai, referred to as Ajmera I-Land. This land bank is expected to play a pivotal role in future projects and strategic partnerships, giving the company a competitive advantage in the space-constrained Mumbai market.

With a brand ethos centered on “Keep Evolving,” Ajmera has increasingly adopted digitised project planning tools, modern construction practices, and a customer-first philosophy to enhance value delivery across its developments. These elements are critical as real estate buyers today demand faster possession, transparent communication, and consistent after-sales service.

What does the stock performance and sentiment indicate for investors?

Ajmera Realty & Infra India Ltd. (NSE: AJMERA) is currently trading at ₹802.75, reflecting a 3.12% decline as of April 11, 2025. The stock has seen a notable correction of around 26% over the past three months, signaling short-term bearishness in investor sentiment. Despite this, the company’s operating performance in FY25 suggests potential for long-term recovery, especially if execution and sales momentum continue into FY26.

Key valuation metrics show a Price-to-Earnings (P/E) ratio of 24.41 and a Price-to-Book (P/B) ratio of 3.28. The company has a dividend yield of 0.50%, a Return on Equity (ROE) of 12.68%, and a Debt-to-Equity ratio of 0.93. These indicators suggest that while Ajmera trades at a premium compared to peers, it maintains reasonable financial health.

Promoter holding has declined from 74.2% to 68.23% in the last quarter, raising some concerns about insider sentiment. However, Foreign Institutional Investors (FIIs) have slightly increased their stake to 0.98%, signaling selective institutional interest. Domestic Institutional Investors (DIIs), by contrast, have marginally reduced their share to 1.72%.

With a market capitalization of ₹3,153 crore, Ajmera is classified as a small-cap real estate stock. Based on the operational outlook and current valuation, investment advisors may categorize the stock as a ‘Hold’. Investors are advised to watch for early FY26 project updates, regulatory clearances, and demand visibility to reassess exposure.

How is Ajmera Realty positioning itself for future growth?

Ajmera Realty’s stated goal of achieving 5x growth in the coming years is rooted in a strategic mix of land acquisition, redevelopment, and premium housing focus. The company’s expansion plans indicate a willingness to invest in both organic and inorganic growth avenues, including potential redevelopment of housing societies—a model gaining traction in metro cities due to space constraints and regulatory support.

In addition, the emphasis on cutting-edge technologies and systems, such as digital planning tools, ERP integrations, and customer management solutions, suggests that the firm is preparing to scale efficiently while maintaining quality and timelines.

For FY26, much will depend on external factors like interest rate stability, construction input costs, and the regulatory pace of approvals, all of which influence launch timing and buyer sentiment. Internally, Ajmera’s ability to swiftly convert its pipeline into active launches while maintaining cash flows will likely dictate its performance trajectory in the near term.