Aditya Birla Real Estate Limited (ABREL) has received in-principle approval from the Bombay Stock Exchange (BSE) to revise the financial covenants applicable to its ₹500 crore unsecured non-convertible debentures (NCDs). The approved modification relaxes the net debt-to-equity ratio requirement, providing the company with greater financial flexibility.
Revised Financial Covenant
| Period | Previous Net Debt-to-Equity Limit | Revised Limit |
| Until March 31, 2026 | 1.10x | 1.50x |
| From April 1, 2026 onward | 1.10x | 1.75x |
The change has been formalized through a First Amendment Deed with the debenture trustee, SBI CAP Trustee Company Limited.
Potential Impact
The relaxed covenant could allow the company to:
- Raise additional debt for future development or expansion
- Refinance existing liabilities
- Support large-scale real estate investments or strategic initiatives
However, the revised limits also indicate a willingness to operate with a higher leverage profile.
Financial Snapshot (March 2025)
| Metric | Value (₹ crore) | YoY Change |
| Total Assets | 16,533.20 | +57.31% |
| Total Equity | 3,888.30 | -5.04% |
| Current Assets | 11,043.40 | +84.97% |
| Current Liabilities | 7,902.90 | +125.68% |
| Non-Current Liabilities | 4,742.00 | +62.75% |
The financial data suggests leveraged growth, with rising assets supported by a significant increase in liabilities and a marginal decline in equity.
Summary
- ABREL has secured BSE approval to relax its debt covenant on ₹500 crore unsecured NCDs.
- The revised net debt-to-equity limit increases to 1.50x until March 2026 and 1.75x thereafter.
- The change offers greater financial flexibility and aligns with the company’s ongoing expansion strategy.
- Recent financials indicate strong asset growth supported by increased borrowing activity.
Disclaimer:
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