Ajmera Realty rallies as Q4 profit more than doubles

A ₹1 lakh holding in Ajmera Realty became richer by about ₹9,600 in one trading day.

That is the kind of move that makes retail investors sit up, even in a market used to sharp swings. On Monday, May 25, Ajmera Realty & Infra India closed 9.6 percent higher at ₹131.37 after reporting a strong March quarter and full-year FY26 performance.

The rally came because the numbers showed something investors like in real estate: more cash coming in, better profit, and a bolder sales target for the year ahead.

Ajmera’s profit jump lifts stock

Ajmera Realty reported revenue from operations of ₹433.9 crore for the March quarter. That was 182 percent higher than the ₹153.7 crore it earned in the same quarter last year.

Net profit also jumped sharply. The company earned ₹58.5 crore in the quarter, against ₹24.2 crore a year earlier. That is a 141 percent rise.

For a shareholder, this matters because profit growth tells the market one simple thing. The company is not just selling homes. It is also converting those sales into earnings.

Its earnings per share rose to ₹2.8 from ₹1.3 in the year-ago quarter. Earnings per share means the profit linked to each share. Investors track it because it helps them judge whether the stock price has run ahead of the business.

Collections tell the real story

In real estate, bookings make headlines. Collections pay the bills.

Ajmera’s collections rose 74 percent in the March quarter to ₹316 crore. For the full year, collections climbed 71 percent to ₹1,103 crore.

That is an important signal. A builder may announce strong sales, but money often comes in slowly as construction milestones are met. Better collections mean customers are paying on time and projects are moving.

For homebuyers, this also has a practical meaning. Developers with healthier cash flows usually face less pressure in funding construction. That can reduce the risk of delays, though it never removes it fully.

The company said its collection efficiency improved to 65 percent from 60 percent in FY25. Dhaval Ajmera, Director of Corporate Affairs, said this helped the company beat its debt targets.

Sales rise despite lower area

One detail in the March quarter needs a closer look.

Ajmera sold 104,742 square feet of carpet area during the quarter. That was 44 percent lower than the same period last year. Yet sales value still rose 8 percent to ₹270 crore.

This tells us the company likely sold higher-value inventory or benefited from stronger pricing. In cities like Mumbai, where land is scarce and homes remain costly, value can rise even when area sold falls.

For buyers, that is the uncomfortable part of the story. Developers may report strong numbers, but families trying to buy a flat face higher ticket sizes and tighter budgets.

For investors, though, pricing power is attractive. It shows demand has not broken despite elevated home prices and higher living costs.

FY26 gives Ajmera a higher base

For FY26, Ajmera Realty’s revenue rose 46 percent to ₹1,098 crore from ₹753.1 crore in FY25.

Its EBITDA rose 25 percent to ₹306 crore. EBITDA is profit before interest, tax, depreciation, and amortisation. In plain English, it shows how much the core business earned before finance and accounting costs.

Net profit for the year rose 24 percent to ₹157.1 crore. In FY25, the company had reported ₹126.4 crore.

The company also reported its highest-ever annual sales and collections. Sales value rose 57 percent to ₹1,701 crore. Carpet area sold grew 11 percent to 660,246 square feet.

New launches contributed 82 percent of total sales value. That matters because fresh project launches often decide growth in real estate. Without them, developers can run out of inventory to sell.

Debt comfort gives room to grow

Ajmera’s debt-to-equity ratio stood at 0.53 times, below its guidance of 0.85 times.

This ratio compares borrowings with shareholder funds. A lower number usually means the company has more breathing room. In real estate, that comfort matters because projects need heavy upfront spending.

The company now wants to push harder. It has added five asset-light projects with an estimated gross development value of ₹2,433 crore.

Asset-light projects usually mean the developer does not buy all the land outright. It may partner with landowners or use joint development models. That can reduce the cash burden, though execution risk remains.

Ajmera has set a pre-sales target of ₹2,200 crore for FY27. Pre-sales are bookings made before full project completion. For builders, they are a key growth marker.

The target is ambitious because FY26 was already a strong year. The company will now need launches, approvals, construction progress, and buyer demand to work together.

Ajmera’s board has also recommended a final dividend of Re 1 per share for FY26. Shareholders must approve it at the next annual general meeting.

For investors, the dividend is small compared with the stock move. The bigger question is whether the company can turn its project pipeline into steady cash and profit.

Real estate stocks can move fast when earnings look strong. They can also punish investors when sales slow or debt rises. Ajmera’s latest numbers give the market a reason to cheer. The next test is tougher: proving that FY26 was not a one-year burst, but the start of a larger cycle.