Aditya Birla Real Estate Ltd (ABREL) AI Stock Analysis

• Market Cap: ₹141.02B
• Dividend Yield: 0.12%
• Average Volume (3M): 8.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.22
• Revenue Growth: -69.07%
• EPS Growth: -317.76%
• Country: IN
• Employees: 2,411
• Sector: Real Estate
• Sector Strength: 53
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): -6.60
• Shares Outstanding: 111,695,680
• 10 Day Avg. Volume: 4,549
• 30 Day Avg. Volume: 8,537
• PEG Ratio: 0.33
• Price to Book (P/B): 5.67
• Price to Sales (P/S): 18.09
• P/FCF Ratio: -13.78
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹2,275.00
• Price Target Upside: 30.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: ₹1,308.00 ▼(-25.12% Downside)

The score is held down primarily by deteriorating profitability and negative cash flows alongside rising leverage, with additional pressure from strong bearish technical momentum (price below all major moving averages and very weak RSI/MACD). Valuation provides limited offset because losses make P/E less meaningful and the dividend yield is minimal.

Positive Factors

Conglomerate Backing

Being part of the Aditya Birla Group provides durable strategic advantages: access to group capital, brand recognition, and cross-business relationships that support project financing, land sourcing and customer trust. These structural benefits bolster long-term execution and resilience.

Diversified Revenue Streams

A mix of direct sales, pre-sales, recurring lease income and JV activity reduces revenue concentration risk. This structural diversification supports cash generation across market cycles and provides multiple levers to manage project funding and revenue timing over the medium term.

Stable Equity Ratio

A stable equity ratio indicates the company has maintained a balanced asset funding mix, which can support project continuity and creditor confidence. Over 2-6 months this underpins access to funding and helps absorb cyclical headwinds in real estate development.

Negative Factors

Deteriorating Profitability

Sharp margin erosion and a swing to a negative net margin indicate weakening pricing power or rising costs. Persistently lower gross and net margins undermine long-term return on projects, strain reinvestment capacity and challenge sustainable profitability over coming quarters.

Negative Operating and Free Cash Flow

Ongoing negative operating and free cash flows signal that core operations and project cash conversion are insufficient to fund obligations. This structural cash shortfall raises refinancing risk, can constrain new project launches and pressures liquidity over the medium term.

Rising Leverage

Higher debt-to-equity increases fixed obligations and reduces financial flexibility. In real estate, elevated leverage limits the ability to finance new developments, raises interest burden and heightens vulnerability to market slowdowns or higher rates over the next several months.

Aditya Birla Real Estate Ltd Business Overview & Revenue Model

Company Description

Aditya Birla Real Estate Ltd (ABREL) is a prominent player in India's real estate sector, part of the Aditya Birla Group, which is one of the largest conglomerates in the country. ABREL focuses on residential and commercial real estate development, offering a range of products including luxury apartments, townships, and commercial spaces. The company is committed to creating sustainable and innovative living and working environments, leveraging quality construction and architectural excellence.

How the Company Makes Money

ABREL generates revenue primarily through the sale of residential and commercial properties. The company develops various real estate projects, including high-end residential complexes, affordable housing, and commercial office spaces, which are sold or leased to customers. Significant revenue streams include direct sales from completed properties, pre-sales of under-construction projects, and recurring income from leased commercial spaces. Additionally, ABREL may engage in joint ventures and collaborations with other developers or investors, enhancing its market reach and financial stability. The company also benefits from the growing demand for real estate in urban areas, driven by population growth and economic development.

Aditya Birla Real Estate Ltd Financial Statement Overview

Summary

Weak fundamentals: profitability deteriorated to a -13.40% net margin (from 4.63%) with negative EBIT/EBITDA margins, leverage rose (debt-to-equity 1.30), and operating/free cash flow are negative, indicating liquidity pressure despite 10.37% revenue growth.

Income Statement

Aditya Birla Real Estate Ltd has experienced a decline in profitability with a negative net profit margin of -13.40% in the latest year, down from a positive 4.63% the previous year. The gross profit margin also decreased significantly from 53.21% to 38.12%. Revenue growth was positive at 10.37%, but the company faced challenges in maintaining profitability, as indicated by negative EBIT and EBITDA margins.

Balance Sheet

The company's debt-to-equity ratio increased to 1.30, indicating higher leverage, which could pose financial risks. The return on equity is negative, reflecting the company's inability to generate profits from its equity base. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

The cash flow situation is concerning, with negative operating and free cash flows. The free cash flow to net income ratio is positive at 1.22, indicating some ability to cover net losses with free cash flow, but overall cash flow growth is negative, highlighting liquidity challenges.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.03B	10.90B	37.92B	40.70B
Gross Profit	4.59B	5.80B	16.66B	15.18B
EBITDA	894.40M	4.51B	7.57B	4.87B
Net Income	-1.61B	505.30M	2.72B	1.67B
Balance Sheet
Total Assets	165.33B	105.10B	84.52B	77.39B
Cash, Cash Equivalents and Short-Term Investments	12.34B	6.43B	978.10M	1.90B
Total Debt	49.97B	25.02B	10.59B	13.36B
Total Liabilities	126.45B	64.15B	44.13B	38.62B
Stockholders Equity	38.40B	39.79B	38.87B	37.19B
Cash Flow
Free Cash Flow	-15.80B	-4.96B	1.50B	-1.80B
Operating Cash Flow	-12.93B	-3.15B	2.71B	-511.30M
Investing Cash Flow	-4.38B	-5.24B	1.38B	-1.76B
Financing Cash Flow	22.18B	12.72B	-5.53B	2.07B

Aditya Birla Real Estate Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1746.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ABREL, the sentiment is Negative. The current price of 1746.9 is above the 20-day moving average (MA) of 1462.36, above the 50-day MA of 1611.72, and below the 200-day MA of 1876.85, indicating a bearish trend. The MACD of -107.59 indicates Positive momentum. The RSI at 20.48 is Positive, neither overbought nor oversold. The STOCH value of 12.63 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ABREL.

Aditya Birla Real Estate Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MINDSPACE	74 Outperform	₹323.04B	56.02	―	0.00%	14.72%	-4.44%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
BRIGADE	62 Neutral	₹183.87B	24.65	―	0.28%	11.20%	57.52%
CHALET	57 Neutral	₹190.79B	32.92	―	―	70.56%	579.58%
MAHLIFE	56 Neutral	₹80.32B	45.07	―	0.70%	-22.59%	17.35%
ABREL	41 Neutral	₹141.02B	-56.94	―	0.12%	-69.07%	-317.76%

Aditya Birla Real Estate Ltd Corporate Events

Aditya Birla Real Estate’s Pulp and Paper Business Acquired by ITC Limited

Aditya Birla Real Estate Limited has received approval from the Competition Commission of India for the acquisition of its Pulp and Paper business, known as Century Pulp and Paper, by ITC Limited. This strategic move, executed as a slump sale, is expected to streamline Aditya Birla’s operations by allowing it to concentrate more on its core real estate activities, while ITC Limited expands its portfolio in the pulp and paper sector.

Aditya Birla Real Estate Releases Q2 FY26 Earnings Presentation

Aditya Birla Real Estate Limited has released its earnings presentation for the second quarter of the fiscal year 2026, ahead of an earnings call scheduled for October 29, 2025. This announcement is part of the company’s compliance with the Securities and Exchange Board of India’s listing regulations and aims to provide stakeholders with insights into its financial performance and strategic direction.