Ajmera Realty & Infra India Ltd.: Q3 FY26 Earnings Update

Executive Summary Ajmera Realty & Infra India Ltd. witnessed a sharp correction during the trading session on Thursday, with the stock declining over 6% to trade at ₹146. The sell-off was triggered by Q3 FY26 earnings that missed estimates across key parameters, showing a year-on-year contraction in revenue, profitability, and margins. Key Financial Highlights (YoY) The company’s financial recognition for the quarter ending December 31, 2025, faced headwinds compared to the previous fiscal: Revenue: Consolidated revenue stood at ₹181.7 crore, a decline of 5.8% from ₹192.8 crore in Q3 FY25. EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortization fell by 12% to ₹55.5 crore (down from ₹63 crore). Margins: Operating efficiency was impacted, with EBITDA margins contracting by 220 basis points to 30.5%, down from 32.7% in the year-ago period. Net Profit: Profit After Tax (PAT) was reported at ₹27.8 crore, registering a 16% decline YoY. Operational Performance (Pre-Sales) Despite the lag in recognized revenue on the P&L statement, the company demonstrated strong on-ground sales velocity, as highlighted in its provisional update: Sales Value: Bookings for the quarter surged over 2x to ₹603 crore. Sales Volume: Volume increased by 59% YoY to 2.62 lakh sq. ft., indicating robust demand for the company’s inventory which may translate to revenue recognition in future quarters. Stock Performance Snapshot The market reaction reflects immediate concerns over the earnings miss. Intraday Action: Down 6.1% to ₹146. Historical Context: The stock has underperformed over the longer term, correcting 23% over the last 12 months.