Aditya Birla Real Estate reported a standalone net profit of ₹63.48 crore for the quarter ended June 30, 2026, compared to ₹47.71 crore in the corresponding period of FY26. This improvement contrasts with the consolidated results, where the group posted a net loss of ₹34.59 crore, widening from a loss of ₹27.08 crore year-on-year. The divergence between standalone and consolidated performance highlights the ongoing operational challenges within the group’s real estate subsidiaries, which are currently in the development phase.

The Board of Directors approved the unaudited financial results and formulated the "ABREL ESOP Scheme 2026" during its meeting on August 13, 2026. The scheme involves secondary acquisition of up to 8,29,000 equity shares through the CTIL Employee Welfare Trust, subject to shareholder approval via postal ballot.

Financial Performance

Standalone revenue from operations remained stable at ₹62.84 crore, slightly down from ₹66.97 crore in Q1FY26. However, total income rose marginally to ₹127.52 crore from ₹127.45 crore, driven by other income which stood at ₹64.12 crore. Expenses decreased to ₹85.80 crore from ₹84.60 crore in the prior year quarter, with finance costs rising to ₹46.52 crore from ₹42.90 crore.

In the consolidated view, sales from continuing operations increased significantly to ₹188.05 crore from ₹144.21 crore in Q1FY26. Despite this revenue growth, the group incurred a loss before tax from continuing operations of ₹83.00 crore, compared to ₹53.10 crore in the same period last year. This was largely attributed to the real estate segment, which reported a segmental loss of ₹63.62 crore after depreciation but before finance costs, worsening from a loss of ₹43.96 crore YoY.

Operational Highlights

Operational metrics demonstrated strong traction in Q1FY27. Collection value increased by 31% year-on-year to ₹713 crore, up from ₹545 crore in Q1FY26. Booking value stood at ₹329 crore, with the Pune region being the largest contributor at 36%.

Key regional performance drivers included:

• Pune: Contributed ₹119 crore in booking value, driven by strong momentum in Birla Punya Phase 2 and Birla Evam.
• Bengaluru: Sold 91% of the launched inventory in Birla Trimaya Phase 4 within two quarters.
• NCR: Birla Navya Phase 6 contributed significantly with a booking value of ₹42 crore.

Net leasing income rose 57% to ₹86.9 crore in Q1FY27, up from ₹55.3 crore in Q1FY26. The company’s commercial assets, Birla Aurora and Birla Centurion, maintained 100% occupancy, generating quarterly gross lease rentals of ₹18 crore and ₹19 crore respectively.

What the Numbers Show

A significant driver of the standalone profit improvement was a non-operational tax benefit. The company reversed a net deferred tax liability of ₹123.76 crore during FY26 due to lower tax rates under the new regime option for FY27. In Q1FY27, this resulted in a substantial deferred tax credit, contributing to the bottom line despite operating profits remaining flat. Conversely, the consolidated loss widened as the real estate segment’s operational deficit deepened, offsetting gains from discontinued operations which contributed a net profit of ₹32.37 crore. The divergence underscores that while the parent company benefits from tax adjustments and stable other income, the core real estate business continues to incur losses during the development cycle before project completions trigger revenue recognition under the completed contract method.

Balance Sheet and Other Developments

As on June 30, 2026, standalone total assets stood at ₹13,860.14 crore, while total liabilities were ₹9,040.39 crore. The debt-equity ratio improved slightly to 0.88 times from 0.89 times in the previous quarter. On the consolidated front, total assets increased to ₹20,820.24 crore against liabilities of ₹17,102.50 crore, with the debt-equity ratio rising to 1.57 times from 1.53 times. Consolidated net debt stood at ₹3,438 crore, including IFC funding of ₹420 crore.

The company completed the sale of its pulp and paper undertaking to ITC Ltd on August 1, 2026, satisfying conditions precedent under the Business Transfer Agreement. Accounting for this transaction will be recognized in the subsequent quarter. Additionally, no stock options were granted during the quarter, but 2,06,039 ESOPs were exercised, and 80,749 treasury shares were sold in the open market.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE055A01016/c384169c-9263-4ebd-b8e3-e412b4f734a5.pdf

Aditya Birla Real Estate Limited has approved the formulation and implementation of the ABREL ESOP Scheme 2026 to align employee interests with long-term shareholder value. The Board of Directors sanctioned the plan during its meeting held on August 13, 2026, following recommendations from the Nomination and Remuneration Committee.

The scheme proposes the grant of stock options exercisable for up to 8,29,000 equity shares. This volume represents 0.74% of the company's paid-up equity share capital. The shares will be acquired through secondary market transactions by the CTIL Employee Welfare Trust, ensuring no immediate dilution of existing shareholders' stake.

Scheme Structure

The employee benefit plan operates under the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. Key structural details include:

• Grant Mechanism: Options will be granted via the CTIL Employee Welfare Trust.
• Acquisition Method: Secondary acquisition of shares.
• Regulatory Compliance: Adherence to SEBI Listing Obligations & Disclosure Requirements Regulations, 2015 (Regulations 30 & 51).

Approval Process

The board's approval is subject to ratification by shareholders. The company intends to issue a Postal Ballot Notice in due course to seek this consent. Detailed disclosures as required by SEBI regulations will be included in the explanatory statement accompanying the ballot.

The meeting commenced at 12:00 noon and concluded at 1:00 pm. Atul K. Kedia, Joint President (Legal) & Company Secretary, certified the outcome of the meeting.