Ashiana Housing reports a sluggish start to FY2027 with declining bookings, but boosts cash flow and realisations, pivoting towards senior living projects to sustain long-term growth amid market headwinds.
Ashiana Housing reported a softer start to financial year 2027, with bookings easing in the June quarter even as the company continued to see support from higher pricing and cash generation. The developer said operating cash flow rose to Rs 121 crores from Rs 108 crores a year earlier, while average realisations climbed 37% to Rs 9,923 per square foot, helped by a better product mix and firmer pricing. Reuters-style reporting on the earnings call showed management framing the quarter as uneven rather than structural, with revenue timing still driven more by handovers than launches. According to the company, Q1 revenue fell to Rs 107 crores from Rs 293 crores in the same period a year earlier.
The headline weakness was in sales, where bookings eased to Rs 258 crores and unit sales dropped to 234 from 407 a year earlier, reflecting softer demand in some markets. Even so, Varun Gupta, the whole-time director, told analysts the company remained on track to meet full-year pre-sales guidance of Rs 2,200 crores, pointing to a strong July launch and pipeline visibility in the second half. He said cumulative sales had reached Rs 859 crores by July 31 and that Ashiana expects to end the first half at between Rs 1,050 crores and Rs 1,100 crores, with the Gurgaon launch expected to be the key driver later in the year.
Much of the long-term story is now tied to senior living, which Ashiana says is becoming a much larger part of its development mix. Gupta said the segment has grown from about 10% of the business five years ago to 23% today and argued that it offers a deeper structural opportunity, with limited organised supply and less sensitivity to broader housing cycles. The company has also accumulated about 5 million square feet of future senior living land, with new projects expected in Chennai, Bengaluru and the Mumbai-Pune region. Market analysis cited by Arthneeti said the company now has more than Rs 6,500 crores of gross development value lined up in the segment.
That strategic shift was reinforced by Ashiana’s largest land purchase to date, a Pune deal that the company said gives it a major senior living development platform. Gupta said the 20 lakh square foot project could generate Rs 1,800 crores to Rs 2,000 crores in revenue over a roughly 10-year build-out, with launches expected in the second half of next financial year. He also said the company is pursuing additional opportunities in Bengaluru, Jamshedpur, Chennai, Mumbai and Pune, while budgeting about Rs 800 crores for land deployment in the current year, including Rs 180 crores already spent in the first quarter.
For the near term, Ashiana expects revenue to recover as occupancy certificates and handovers catch up with earlier launches. Gupta said the company expects around Rs 2,000 crores in revenue this year and noted that certificates for Ashiana Anbu Phase 3 and Ashiana Amara Phase 1, worth a combined Rs 532 crores, were received in mid-July and should feed into the second quarter. He also said the company is prepared for a temporary pause in pre-sales growth as it shifts capital towards senior living, but sees that trade-off as necessary to build a larger and more profitable platform over time.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
