Aditya Birla Real Estate Ltd
Aditya Birla Real Estate Ltd
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Key Insights
Strengths
1- Company has been maintaining a healthy dividend payout of 23.2%
Weaknesses
6- Stock is trading at 3.94 times its book value
- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of -31.1% over past five years.
- Company has a low return on equity of -2.80% over last 3 years.
- Company might be capitalizing the interest cost
- Working capital days have increased from 1,675 days to 3,916 days
Growth Rate
AI Analysis — Bull vs Bear
ABREL trades at a negative PE of -128.2x with severely deteriorating sales growth of -67% TTM and negative ROE of -7% last year. Despite unanimous analyst buy ratings, the fundamental deterioration in working capital (3,916 days) and 5-year sales decline of -31% signal deep structural issues that outweigh long-term stock CAGR of 16% over 10 years.
- All 10 analysts rate ABREL a Buy with 100% buy consensus, indicating institutional confidence in a turnaround thesis
- 10-year stock CAGR of 16% demonstrates long-term wealth creation despite recent volatility
- 5-year stock CAGR of 17% shows the stock has compounded well over medium-term horizons
- 10-year ROE of 20% indicates the business historically generated strong returns on equity before recent downturn
- Company maintains a healthy dividend payout ratio of 23.2%, signaling management commitment to shareholder returns
- Market cap of Rs 14,589 Cr provides reasonable scale and liquidity for institutional participation
- 3-year stock CAGR of 16% despite fundamental headwinds suggests market is pricing in future recovery
- TTM sales growth collapsed to -67%, indicating severe revenue deterioration and possible project execution issues
- Working capital days ballooned from 1,675 to 3,916 days, signaling extreme capital inefficiency and potential inventory pile-up
- 5-year compounded sales growth of -31% reflects sustained structural decline in topline performance
- Negative PE of -128.2x confirms the company is loss-making at the net profit level
- 3-year ROE of -3% and last year ROE of -7% show accelerating destruction of shareholder value
- Stock trades at 3.98x book value despite negative earnings, offering no margin of safety
- Low interest coverage ratio suggests debt servicing pressure that could strain cash flows further
- Stock has declined 47% over 1 year, reflecting significant erosion of market confidence
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Investor meet scheduled Jun 30 Jun 23
Aditya Birla Real Estate will hold an in-person investor meet on June 30, 2026. No unpublished price sensitive information will be shared.
- Trading window closed for Q1FY27 Jun 23
Trading window closed from July 1, 2026, until two days after Q1FY27 results are declared, signaling upcoming quarterly earnings.
- Promoter declares no encumbrance Jun 12
Pilani Investment and Industries Corporation confirmed zero encumbrance on promoter group shares as of March 31, 2026, under SEBI takeover regulations.
- Axis Capital conference attendance May 26
Company representatives attended the Axis Capital Rising Star Conference on June 2, 2026, in Mumbai. No UPSI was shared.
TL;DR: Recent news flow for Aditya Birla Real Estate is entirely procedural with no material positive or negative catalysts. The company is maintaining routine regulatory compliance and engaging with investors through conferences and meets. No encumbrance on promoter shares is a governance positive but expected. The near-term focus shifts to Q1FY27 results, which will provide the next substantive update on business performance.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 982 | 894 | 863 | 1,070 | 814 | 353 | 266 | 204 | 395 | 146 | 97.84 | 81.17 | 82.61 |
| Expenses | 835 | 759 | 814 | 879 | 615 | 316 | 239 | 222 | 425 | 188 | 172 | 172 | 248 |
| Operating Profit | 147 | 136 | 49.15 | 191 | 199 | 37.6 | 26.92 | -17.97 | -30.63 | -42.39 | -73.76 | -90.64 | -166 |
| OPM % | 14.93% | 15.17% | 5.7% | 17.87% | 24.49% | 10.64% | 10.11% | -8.79% | -7.76% | -29.12% | -75.39% | -111.67% | -200.41% |
| Other Income | 118 | -53.65 | -11.65 | 3.09 | -114 | 19.34 | 13.54 | -7.96 | -119 | 32.07 | 70.67 | 18.92 | 129 |
| Interest | 8.5 | 5.92 | 10.35 | 7.68 | 10.36 | 11 | 15.49 | 7.75 | 11.5 | 7.06 | 17.73 | 19.01 | 20.6 |
| Depreciation | 48.91 | 50.48 | 51.29 | 53.32 | 15.24 | 16.12 | 15.74 | 16.12 | 15.83 | 15.5 | 15.73 | 17.77 | 18.5 |
| PBT | 207 | 25.67 | -24.14 | 133 | 59.87 | 29.82 | 9.23 | -49.8 | -177 | -32.88 | -36.55 | -109 | -75.88 |
| Tax % | 31.22% | 127.5% | 36.16% | 40.04% | 65.53% | 41.82% | 69.45% | -14.92% | -23.67% | -17.64% | -51.24% | -30.59% | -107.1% |
| Net Profit | 142 | -7.06 | -32.87 | 79.95 | 20.64 | 17.35 | 2.82 | -42.37 | -135 | -27.08 | -17.82 | -75.31 | 5.39 |
| EPS in Rs | 13.01 | -0.53 | -2.73 | 7.46 | 0.34 | 0.7 | 0.23 | -3.63 | -11.73 | -2.28 | -1.41 | -6.52 | 0.97 |
Profit & Loss
| Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 7,645 | 3,898 | 3,944 | 3,423 | 2,617 | 4,131 | 3,832 | 1,101 | 1,219 | 407 |
| Expenses | 6,721 | 3,092 | 2,992 | 2,855 | 2,393 | 3,687 | 3,265 | 879 | 1,203 | 780 |
| Operating Profit | 924 | 805 | 951 | 568 | 224 | 444 | 567 | 221 | 16 | -372 |
| OPM % | 12% | 21% | 24% | 17% | 9% | 11% | 15% | 20% | 1% | -91% |
| Other Income | 62 | 138 | 5,673 | 14 | 43 | 51 | 101 | -21 | -94 | 250 |
| Interest | 551 | 212 | 102 | 87 | 71 | 52 | 34 | 30 | 46 | 64 |
| Depreciation | 313 | 199 | 193 | 229 | 231 | 231 | 196 | 59 | 64 | 68 |
| PBT | 122 | 532 | 6,330 | 267 | -35 | 212 | 437 | 112 | -188 | -254 |
| Tax % | 14% | 30% | 4% | -35% | -4% | 24% | 40% | 46% | -16% | -55% |
| Net Profit | 105 | 372 | 6,063 | 360 | -34 | 162 | 265 | 60 | -157 | -115 |
| EPS in Rs | 9.4 | 33.27 | 543 | 32.7 | -2.73 | 14.91 | 24.34 | 4.52 | -14.44 | -9.24 |
| Div. Payout % | 59% | 20% | 1% | 9% | -37% | 27% | 21% | 111% | -14% | -27% |
Balance Sheet
| Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 112 | 112 | 112 | 112 | 112 | 112 | 112 | 112 | 112 | 112 |
| Reserves | 2,370 | 2,636 | 3,182 | 3,368 | 3,393 | 3,607 | 3,775 | 3,867 | 3,729 | 3,589 |
| Borrowings | 5,700 | 4,369 | 1,020 | 1,400 | 1,049 | 1,336 | 1,059 | 2,502 | 4,997 | 5,636 |
| Other Liabilities | 2,154 | 3,214 | 1,861 | 1,868 | 2,141 | 2,684 | 3,465 | 4,018 | 7,646 | 10,895 |
| Total Liabilities | 10,336 | 10,331 | 6,175 | 6,747 | 6,693 | 7,739 | 8,411 | 10,499 | 16,483 | 20,233 |
| Fixed Assets | 7,309 | 7,256 | 4,430 | 4,293 | 4,139 | 4,059 | 3,952 | 3,734 | 1,437 | 1,367 |
| CWIP | 34 | 35 | 275 | 176 | 210 | 211 | 190 | 58 | 26 | 18 |
| Investments | 258 | 223 | 183 | 107 | 238 | 409 | 228 | 692 | 1,085 | 1,512 |
| Other Assets | 2,734 | 2,817 | 1,287 | 2,171 | 2,106 | 3,060 | 4,041 | 6,015 | 13,935 | 17,336 |
| Total Assets | 10,336 | 10,331 | 6,175 | 6,747 | 6,693 | 7,739 | 8,411 | 10,499 | 16,483 | 20,233 |
Cash Flow
| Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 940 | 2,209 | 548 | -23 | 566 | -51 | 271 | -315 | -1,293 | 747 |
| Investing | -247 | -195 | -123 | -241 | -92 | -176 | 138 | -524 | -438 | -588 |
| Financing | -175 | -1,795 | -677 | 392 | -471 | 207 | -553 | 1,272 | 2,218 | 299 |
| Net Cash Flow | 518 | 219 | -253 | 128 | 4 | -21 | -144 | 433 | 487 | 458 |
| Free Cash Flow | 794 | 2,056 | 472 | -225 | 481 | -177 | 283 | -490 | -1,413 | 661 |
| CFO/OP | 105 | 289 | 78 | 18 | 180 | 3 | 61 | -81 | -7,452 | -233 |
Ratios
| Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 24 | 39 | 19 | 19 | 22 | 19 | 15 | 55 | 31 | 15 |
| Inventory Days | 232 | 328 | 174 | 362 | 486 | 429 | 716 | — | — | 23,880 |
| Days Payable | 129 | 190 | 130 | 133 | 200 | 158 | 173 | — | — | 1,428 |
| Cash Conversion Cycle | 126 | 178 | 64 | 248 | 308 | 290 | 558 | 55 | 31 | 22,467 |
| Working Capital Days | -109 | -182 | -19 | -16 | 54 | -4 | 37 | 592 | 517 | 3,916 |
| ROCE % | — | 10% | 112% | 8% | 1% | 5% | 8% | 4% | 0% | -4% |
Documents
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Company Information
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