Ajmera Realty Rises As Q4 Profit More Than Doubles

A ₹1 lakh bet on Ajmera Realty at Friday’s close became worth roughly ₹1.09 lakh by Monday evening. That is the sort of move which makes small investors look twice at a stock they may have ignored last week.

Shares of Ajmera Realty & Infra India rose 9.6 percent on May 25, closing at ₹131.37. In plain terms, the stock added about ₹11.50 per share in one trading session.

The trigger was simple. The company reported a sharp jump in revenue, profit, and collections for the March quarter. For a real estate company, collections matter because booked sales mean little unless cash actually comes in.

Strong quarter lifts the stock

Ajmera Realty reported revenue from operations of ₹433.9 crore for Q4 FY26. That was up 182 percent from ₹153.7 crore a year earlier.

Its net profit rose 141 percent to ₹58.5 crore, compared with ₹24.2 crore in the same quarter last year. Earnings before interest, tax, depreciation, and amortisation also rose 141 percent to ₹109.6 crore.

That last number, often called EBITDA, is a rough measure of operating profit. It shows how much money the core business made before finance costs and taxes entered the picture.

For investors, the headline was not only profit growth. Collections rose 74 percent to ₹316 crore during the quarter. This tells the market that buyers paid up, not just signed paperwork.

There was one softer spot. Carpet area sold fell 44 percent year-on-year to 104,742 square feet. Yet sales value still rose 8 percent to ₹270 crore.

That means the company earned more money from less area sold. In real estate, this usually points to better pricing, project mix, or both.

FY26 numbers show cash discipline

For the full year, Ajmera Realty reported revenue of ₹1,098 crore. That was 46 percent higher than ₹753.1 crore in FY25.

Net profit rose 24 percent to ₹157.1 crore. EBITDA increased 25 percent to ₹306 crore. Annual earnings per share improved to ₹7.6, from ₹6.8 a year earlier.

The stronger story sat in sales and collections. Annual sales value climbed 57 percent to ₹1,701 crore. Collections jumped 71 percent to ₹1,103 crore.

That is a useful signal in a sector where debt can quickly become a headache. Developers often spend upfront on land, approvals, construction, and marketing. The money from buyers comes in slowly.

The company said new launches contributed 82 percent of sales value during the year. That tells us demand did not depend only on older inventory.

Carpet area sold for the year stood at 660,246 square feet, up 11 percent from FY25. So, unlike the March quarter, the full year showed both higher area sold and better value.

For homebuyers, this kind of performance points to one thing. Developers with steady collections tend to have more room to keep projects moving. That does not remove delivery risk, but it improves the odds.

Debt number matters most

Dhaval Ajmera, Director for Corporate Affairs, said the company improved collection efficiency to 65 percent in FY26. It stood at 60 percent in FY25.

Collection efficiency is not a complicated idea. If the company expects ₹100 from buyers and collects ₹65, efficiency is 65 percent.

That extra cash helped the company keep debt under control. Ajmera Realty ended the year with a debt-to-equity ratio of 0.53 times.

This ratio compares borrowings with shareholder funds. A lower number usually means the company has less pressure from lenders.

The company had guided for 0.85 times, so 0.53 times came in better than its own target. For real estate investors, this number deserves attention.

A developer can report strong sales but still strain its balance sheet. That happens when projects need heavy funding and collections lag. Ajmera’s latest numbers show a cleaner cash position than feared.

Still, investors should keep perspective. Real estate stocks often move sharply after good earnings. The real test comes over several quarters, when launches must convert into cash.

FY27 target raises the bar

The company has set a pre-sales target of ₹2,200 crore for FY27. That is about 29 percent higher than FY26 sales value of ₹1,701 crore.

Pre-sales are bookings made before or during construction. They show demand, but they are not the same as final revenue. Revenue comes in as the project reaches accounting milestones.

Ajmera Realty also said it added five asset-light projects. These projects carry an estimated gross development value of ₹2,433 crore.

Asset-light means the company can grow without buying every piece of land outright. Developers often use joint development or similar structures. This can reduce upfront capital needs.

But this model needs execution discipline. The company still has to manage approvals, construction timelines, pricing, and sales.

The real estate market has enjoyed strong demand in many urban pockets. Higher incomes, premium housing demand, and limited ready supply have helped listed developers.

Yet buyers face a different reality. Home prices have risen sharply in many cities. A young family looking for a larger flat must now balance EMIs, school fees, and job security.

That is why developers cannot assume demand will stay hot forever. If interest rates remain sticky or job growth slows, buyers may pause.

Dividend adds a small sweetener

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

At Monday’s closing price of ₹131.37, that dividend works out to a yield of about 0.76 percent. That is not the main reason to own the stock.

For a retail investor, the bigger question is growth. Can the company deliver the FY27 sales target without stretching debt again?

The market’s 9.6 percent response suggests investors liked the answer, at least for now. But one strong day does not settle the story.

Real estate stocks reward patience only when cash flow, launches, and delivery move together. Ajmera Realty has reported a strong FY26. FY27 will show whether this was a clean breakout, or just a very good year in a friendly housing cycle.