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Aditya Birla Real Estate shares gain 2% post Q1; check details here
At 10:40 AM, shares of Aditya Birla Real Estate were trading at ₹2,061.30, up by 2.13 per cent on the National Stock Exchange. In comparison, NSE Nifty was trading lower, down by 50 points or 0.2 per cent, quoting 25,169.55 level. The total market capitalisation of the company stood at ₹23,023.83 crore.
Why were Aditya Birla Real Estate shares buzzing in trade?
The real estate arm of the Aditya Birla group reported a loss (attributable to owners of the company) of ₹25.47 crore for the first quarter of financial year 2025-2026 (Q1FY26), as compared to a profit of ₹7.78 crore recorded in the corresponding period of the previous fiscal year. However, on a sequential basis, the loss figure contracted by over 80 per cent from ₹131.01 crore.
Total income for the quarter under review witnessed a drop, to ₹157.41 crore as against ₹365.24 crore reported in the same period of the previous fiscal year. That apart, the company's board of directors has approved the fundraise of ₹1,500 crore in one or more tranches to refinance the real estate developer's existing debts. It is also worth mentioning that the company is currently in the divestment process of its paper and pulp business.
"The Board at its meeting held today has approved raising of funds up to ₹1,500 Crores in one or more tranches by way of availing secured or unsecured Rupee Term Loan within the borrowing limits approved by the shareholders to refinance the existing debts of the Company taken for capex use of Century Pulp and Paper division of the Company ('CPP')...," the company stated in an exchange filing.
Brokerage view- Nomura
While the real estate company recorded an Ebitda loss for the quarter, global brokerage firm Nomura pointed that looking at the profit and loss (P&L) statement at this stage might not provide the full picture. This is largely because the company has a large pipeline of unrecognised revenue of ₹15,000 crore, that could be booked in future periods. "After the divestment of its pulp and paper business, the company has started reporting revenue for its real estate segment. Aditya Birla Real Estate follows the 'project completion' method of accounting and, as such, revenue is recorded only upon delivery. We assume that key deliveries such as the Niyaara Tower would take place only by end-FY28F," the brokerage firm stated
Nomura has maintained its 'Buy' rating on the stock with the target price of ₹2,700. "For Q1FY26, it incurred an Ebitda loss in its real estate segment largely owing to corporate overheads and marketing expenses. We expect this trend to be reflected in the coming quarters as well," the brokerage firm added.
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