Birla Estates parent posts Q2 profit on pulp and paper sale; bookings fall 67%

What was reported

On 26 October 2026, Aditya Birla Real Estate Limited announced unaudited consolidated results for the quarter and half-year ended 30 September 2026, as per exchange filings. Birla Estates is the company's residential real estate arm.

Consolidated net profit for Q2 FY27 was ₹918.70 crore. The same quarter last year had a consolidated net loss of ₹17.82 crore. For the six months ended 30 September 2026, consolidated net profit was ₹884.11 crore, against a net loss of ₹44.90 crore in the first half of FY26.

Where the profit came from

Most of the headline profit was non-operating. The company recognised an exceptional gain of ₹868.12 crore (pre-tax) from the disposal of its Pulp and Paper business, Century Pulp and Paper.

• Net profit from discontinued operations was ₹775.39 crore, against ₹55.28 crore a year earlier. This figure is the net result after a pre-tax loss of ₹19.33 crore and tax of ₹73.40 crore, and it includes the exceptional gain.
• Profit from continuing real estate operations was ₹143 crore, compared with a loss of ₹73 crore in Q2 FY26.
• Real estate EBITDA was ₹195 crore, against a loss of ₹55 crore a year earlier.
• Net total income from real estate operations was ₹268 crore, up from ₹31 crore. This comprised ₹36 crore of net leasing income and ₹232 crore of real estate and other income. This is a different measure from total income.

Total income from continuing operations was ₹860.86 crore. It comprised sales revenue of ₹824.27 crore, other operating income of ₹0.76 crore and other income of ₹35.83 crore. Total expenses for continuing operations were ₹685.62 crore, including ₹524.10 crore of land, construction and related development costs.

The company said revenue recognition from completed developments drove the quarter, most notably Birla Tisya in Bengaluru. Birla Tisya contributed ₹181 crore of EBITDA at a 28% operating margin. Birla Navya contributed ₹39 crore of EBITDA at a 35% margin.

Bookings, collections and regional mix

New bookings fell sharply while collections rose. Q2 booking value was ₹298 crore, down 67% from ₹890 crore. H1 FY27 booking value was ₹627 crore, down 52% year on year. Q1 FY27 bookings were ₹329 crore.

Collections reflect cash received against earlier sales. Q2 collections were ₹752 crore, up 47%. The company said cumulative collections across its projects have crossed ₹10,000 crore.

By region, Q2 booking value came from the Mumbai Metropolitan Region (61%), Pune (22%) and Bengaluru (17%). Birla Taranya Phase 1 in Thane was the largest Q2 booking contributor at ₹123 crore. The project is 1.71 million sq ft with a gross development value of ₹2,150 crore and is 55% sold. Completion is targeted for March 2032.

Reasons given for the booking decline

One market report linked the drop to the redesign of Worli Tower C, which moved its launch. Management said the redesign was a decision to optimise value rather than chase short-term pre-sales. Another report cited a temporary pause in new project launches during the quarter.

Divestment and portfolio

ITC completed its acquisition of the Century Pulp and Paper business on 1 August 2026, as a going-concern slump sale. The deal was valued at ₹3,498 crore (about USD 420 million). Shareholders approved the transaction on 30 July 2025, and the business transfer agreement is dated 31 March 2025.

As at September 2026, the company reported ongoing project gross development value (GDV) of ₹31,101 crore, FY27 pipeline GDV of ₹4,728 crore, future pipeline GDV of ₹41,889 crore, and total portfolio GDV of ₹77,718 crore. Pending collections from sold inventory were ₹15,742 crore, and unsold launched inventory was ₹6,619 crore.

Birla Estates' FY26 bookings were ₹8,136.3 crore. Bookings grew at a compound annual rate of 67% between FY21 and FY26.

What it means for buyers, investors and the market

• Buyers: The quarter's profit came mainly from the divestment and not from home sales. New sales slowed in the quarter, and the company expects FY27 pre-sales to be lower than FY26 because the Worli Tower C launch has moved to Q2 FY28.
• Investors: The key question raised by one analyst is whether the company can convert a large unlaunched pipeline into bookings without weakening project economics. The company's focus markets (MMR, Bengaluru, NCR and Pune) accounted for about 65% of pan-India residential absorption in Q2 FY27, according to the same results coverage.
• Market: The divestment marks a shift toward real estate as the company exits non-core operations, one report said.

What comes next

• Worli Tower C: The redesign combined plots and optimised floor space index allocation. Management said it adds about ₹1,900 crore of net GDV upfront and raises Tower C's GDV by about ₹3,000 crore to 0.95 million sq ft. Its launch moved from FY27 to Q2 FY28.
• Upcoming launches: Khar is expected in January to February 2027. Vashi, Taranya and Punya are planned for FY28, and Hinjewadi for Q4 FY28.
• Targets: Management kept its long-term pre-sales goal of ₹15,000 crore by FY29. It also aims to raise annual rental income from about ₹150 crore to ₹1,500 crore through commercial development, redevelopment and selective acquisitions in Mumbai and NCR. No date was given for the rental target.
• Birla Niyaara commercial development: The company plans about 1 to 1.3 million sq ft, with approvals and start targeted before the end of FY27, as stated on the Q1 FY27 earnings call.