1st September, 2025: Ashok Leyland, the Indian flagship of the Hinduja Group and the country’s leading commercial vehicle manufacturer, today announced its plans to invest in development and manufacturing of next-generation batteries, for both automotive and non-automotive applications, including energy storage systems. This reinforces Ashok Leyland’s ambition to be a leading player in creating an electrification ecosystem in the country, in alignment with Government’s vision of creating a sustainable and green economy.

In the backdrop of improving bilateral relations, Ashok Leyland has entered into a long-term exclusive partnership with CALB Group, one of the foremost battery technology companies in China.

The agreements were signed by Mr. Shenu Agarwal, Managing Director & CEO, Ashok Leyland and Mr. Jacky Liu, CEO, CALB (HK) Co., Ltd, in presence of Mr. Shom Hinduja, President, Alternative Energy and Sustainability Initiatives, Hinduja Group.

Ashok Leyland will invest in battery localization in India. This will not only provide for Ashok Leyland & Switch’s own electric vehicle portfolio but will also cater to non-captive demand in the entire automotive sector as well as in energy storage sector. This business would entail investments over Rs. 5000 Cr over the next 7-10 years.

Mr. Dheeraj Hinduja, Chairman, Ashok Leyland said, “Ashok Leyland is deeply committed to shaping the future of sustainable mobility in India in full alignment with Government’s vision. Our strategic partnership with CALB is a significant step towards creating a localised battery supply chain in India to accelerate adoption of electric vehicles in India and reduce our dependence on fossil fuels.”

Mr. Shenu Agarwal, Managing Director & CEO, Ashok Leyland, said, “In the initial phase, the new battery business shall focus on automotive sector, and then move to non-automotive areas as well, including energy storage systems. A Global Centre of Excellence will be created to serve as a hub for research and development, fostering innovation in battery materials, recycling, battery management systems, and advanced manufacturing processes.”

This partnership marks yet another milestone for Ashok Leyland and Hinduja Group’s ongoing commitment towards electrification, with investments across Electric Vehicles, Electric Mobility-as-a-Service, Charging Equipment, Vehicle Financing and Leasing, and other areas.

Mumbai, 1 September 2025: With global trade tensions and spiralling housing prices raging, residential sales were markedly tepid in H12025 when compared to same period last year. However, listed developers remain on track on their pre-sales targets, finds data compiled by ANAROCK Research. Investor presentations and regulatory filings of the top 10 listed developers show that almost 30% or INR 44,317 Cr of total booking (pre-sales guidance) targets of INR 1,49,108 lakh Cr in FY 2026 is already squared away in the first quarter of FY 2026. They are on track to achieve their booking targets of over INR 1.49 lakh Cr in FY 2026.

“Players like DLF Ltd and Prestige Estates are cases in point – DLF has hit nearly 52% of its total pre-sales target of INR 20,000-22,000 CR for FY 2026 in Q1 FY2026,” says Anuj Puri, Chairman – ANAROCK Group. “Prestige Estates has already clocked pre-sales of nearly 45% of its INR 27,000 Cr target for FY 2026.”

The top 10 listed developers’ booking targets in FY 2025 stood at approx. INR 1,20,818 Cr. In short, they are targeting pre-sales growth of 23% over FY25 in the current fiscal.

In terms of actual annual sales bookings in FY 2025, Godrej Properties led the pack in last fiscal with pre-sales of nearly INR 29,444 Cr, followed by DLF Ltd. with sales bookings of approx. INR 21,233 Cr.

Top 10 Listed Developers	FY25 Actual (INR Cr)	FY26 Guidance (INR Cr)	% Growth Expected	% Guidance Achieved in Q1 FY26
Prestige	17,023	27000	59%	45%
Sobha	6,276	10,000	59%	21%
Godrej	29,444	32,500	10%	22%
Lodha (Macrotech)	17,630	21,000	19%	21%
Keystone Realtors	3,028	4,000	32%	27%
Signature Global	10,290	12,500	21%	21%
Brigade	7847	9,000	15%	12%
Kolte Patil	2,791	4,500	61%	14%
Oberoi Reality	5,266	6,608	25%	25%
DLF	21,223	22,000	4%	52%

The listed players’ pre-sales actuals achieved in FY 2025 have set the tone for FY 2026.

“Buoyed by this sales momentum, their continued land buying spree in H1 2025, when over 2,898 acres of land were transacted in 76 deals across India,” says Puri. “The total land volume transacted in H1 2025 is already 1.15 times of the deals volume in the whole of 2024, when 133 deals for about 2,515 acres were concluded across the country.”

Net Debt-Equity Ratio Boosts Financial Strength

After the NBFC crisis in 2018 and the ensuing pandemic disruptions, developers faced funding crunches and declining sales. Many, especially the large and listed ones, focused on deleveraging, improving pre-sales, monetizing assets, and raising equity capital. As a result, several top developers have brought down their net debt-to-equity ratios, with some even achieving net cash positions.

In a new phase of exceptional financial prudence, the average net debt-to-equity ratio of leading listed players has dropped to a historic low of 0.05 in FY25. This marks an over 90% reduction from the FY17 peak of about 0.55. The average net debt-to-equity ratio decline from ~0.55 in FY17 to 0.05 in FY25 was primarily aided by fund raising and improved operational cash flows.

The real estate sector’s shift from leverage-led to balance-sheet-led growth marks a pivotal shift in its investment appeal and operating model. With near-zero debt levels, improving buyer sentiment, and favourable monetary policy positions, FY26 sees the industry in a stable, trust-driven, performance-led cycle that has long-term potential.

“This deleveraging phase will positively impact real estate development in India over the long-term. With D/E ratios at multi-year lows and equity capital continuing to flow in, developers can expand strategically, consolidate market share, and build consumer trust,” adds Puri.

The improved financial metrics also make Indian real estate sector more attractive to institutional and foreign investors, which bodes well for capital formation in the medium term.

Strong Balance Sheets = Greater Flexibility

The sharp decline in leverage has provided multiple advantages to developers:

• Lower interest burden: Lower financing costs have freed up capital for ongoing and new projects.
• Improved credit profiles: Many developers have received rating upgrades, facilitating access to institutional funding at more competitive rates.
• Higher consumer confidence: Buyers are increasingly favouring financially sound developers, further supporting their pre-sales momentum.

With some large developers now with net cash balances, the collective goal now is keeping the net debt-to-equity ratio under 0.4 and more players are targeting a net cash position over the next three fiscal years.

Mumbai, 1st September ,2025: In its latest report- Affordable Housing: Tackling Urban Housing Deficit Through Supply-Side Reforms, Knight Frank India, a leading real estate consultancy in the country, in association of National Real Estate Development Council (NAREDCO), highlighted the critical supply challenges in India’s affordable housing sector. According to the report, the supply-to-demand ratio for affordable housing across the top 8 cities has plummeted to 0.36 in 2025 (until June), down from 1.05 in 2019, signalling a significant undersupply in the segment. This shift marks a turning point from the years when developers launched more affordable housing units than were sold, driven by schemes such as the Pradhan Mantri Awas Yojana (PMAY). In contrast, 2025 data show launches have collapsed to barely a third of sales, underscoring a deepening imbalance that threatens to impact housing affordability and limit buyer choice.

Demand Policies Help, but Supply Remains a Bottleneck

Over the past decade, policy interventions such as PMAY, Affordable Rental Housing Complexes (ARHCs), and tax benefits have provided critical support to homebuyers. These measures improved affordability and expanded access to credit for economically weaker sections and low-income groups. However, the report finds that supply continues to lag demand as developers face mounting challenges including high land costs, limited access to construction finance, regulatory delays, and inadequate infrastructure in peripheral urban zones.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “Affordable housing is not only a social priority but also an economic necessity. As India urbanizes rapidly, the imbalance between supply and demand in this segment poses significant risks to inclusive growth. While policy support on the demand side has been commendable, there is a pressing need to address supply-side barriers. Encouraging private sector participation through innovative financing, faster approvals, and land availability will be critical to bridging the gap and ensuring that every Indian has access to dignified housing.”

Affordable Urban Housing Deficit to Reach 30 mn Units by 2030

India’s existing affordable urban housing shortage is estimated at 9.4 mn units, with demand expected to rise sharply as urbanization accelerates. By 2030, cumulative affordable housing demand (including EWS, LIG, and MIG households) is projected to reach 30 mn units.

The ratio highlights a dramatic collapse in new launches, falling to nearly a third of sales in 2025.

This shortfall, combined with incremental affordable housing demand of 20.7 mn units by 2030, will push total affordable housing needs to 30 mn units, of which 79% will be concentrated in EWS and LIG households.

Launches Lag Sales in Affordable Housing

The report points to a sharp imbalance between sales and launches. India’s affordable housing sector faces persistent challenges in expanding supply to keep pace with the country’s fast-growing urban population. Although policy initiatives like the Pradhan Mantri Awas Yojana (PMAY), Affordable Rental Housing Complexes (ARHCs) have laid the groundwork, the actual construction and delivery of affordable homes remain far from adequate.

In 2025 (Until June), the share of affordable housing, i.e value of housing units priced under INR 5 mn stood at 17%, a sharp decline from 52.4% in 2018. Thus, indicating decline in affordable housing supply in Indian cities. The receding number of launches in the affordable housing units is primarily attributed to the bottlenecks hindering private participation.

Private Investment in Affordable Housing Remains Minimal

Another key finding of the report is the limited private capital flowing into the sector. Between 2011 and 2024, private equity inflows into affordable housing totalled USD 1.9 bn, accounting for just 7.8% of the residential sector. Foreign funds accounted for merely 10.2% of the capital inflow into affordable housing segment between 2019-24.

Gulam Zia, Senior Executive Director– Advisory, Valuation, and Research, Knight Frank India, said, “The sharp decline in the new supply-to-demand ratio from 1.05 in 2019 to 0.36 in 2025 demonstrates the urgent need for structural reforms. High land costs, inadequate institutional investments, and infrastructure deficits in peripheral locations continue to restrict developer participation. Without targeted incentives and financing mechanisms, affordable housing will remain underserved. Addressing these gaps can unlock private investment and create a sustainable ecosystem for the segment.”

Mr G Hari Babu, President, NAREDCO, said, “At the 17th NAREDCO National Convention, the Knight Frank & Naredco report has once again underlined the scale of India’s affordable housing challenge— a deficit of 9.4 million units that could rise to 30 million by 2030. The fact that new supply in this segment has dropped sharply while demand continues to grow is a matter of concern. Limited private investment further widens the gap. This Convention is the right platform to call for bold supply-side reforms— unlocking PSU land for housing, rationalising FSI norms, and enabling subsidised construction finance. These measures can restore affordability, attract private participation, and ensure that affordable housing becomes the real engine of inclusive urban growth in India.”

The report emphasises that unlocking affordable housing supply will require bold reforms and collaborative efforts among government, developers, financial institutions, and civil society. It recommends repurposing vacant PSU lands for affordable housing through public-private partnerships, increasing the free floor space index (FSI) to boost supply and reduce costs, and providing subsidized construction finance to developers, drawing on successful global models from project viability and attract greater institutional capital is also seen as critical. Together, these measures can create an enabling ecosystem where private participation becomes financially feasible, ensuring that affordable housing supply not only meets the growing demand but also supports India’s long-term vision of inclusive and sustainable urban development.

India’s affordable housing challenge is not insurmountable. With policy alignment, innovative financing, and greater private participation, the sector has the potential to not only meet housing demand but also create more equitable, resilient, and inclusive cities.