28-Oct-2026 15:43:57
RAYMOND REALTY Q2 CONCALL: PRE-SALES NEARLY DOUBLE YOY, COLLECTIONS SURGE 67%, ₹52,000 CR PROJECT PIPELINE & MANAGEMENT TARGETS 20%+ FY27 BOOKING GROWTH
• MANAGEMENT MAINTAINS FY27 PRE-SALES GROWTH GUIDANCE OF AT LEAST 20%, SUPPORTED BY STRONG EXISTING PROJECT DEMAND, UPCOMING MAHIM LAUNCHES & EXPANDING MUMBAI METROPOLITAN REGION REDEVELOPMENT PORTFOLIO • MANAGEMENT GUIDES FOR APPROXIMATELY 20% EBITDA GROWTH IN FY27, WITH EBITDA MARGIN TARGET OF 17–19% & PAT MARGIN OF 9–10%, SUPPORTED BY IMPROVING PROJECT EXECUTION & REVENUE RECOGNITION • MANAGEMENT EXPECTS H2 FY27 PRE-SALES TO EXCEED H1 LEVELS OF ₹1,602 CR, DRIVEN BY FESTIVE DEMAND, NEW PROJECT LAUNCHES & STRONGER CONTRIBUTION FROM NON-THANE DEVELOPMENTS • MANAGEMENT PLANS TWO MAHIM REDEVELOPMENT PROJECT LAUNCHES IN H2 FY27, WITH COMBINED GDV OF APPROXIMATELY ₹4,100 CR, INCLUDING ONE LAUNCH IN Q3 & ANOTHER IN Q4 • MANAGEMENT TARGETS APPROXIMATELY 20% ANNUAL PRE-SALES GROWTH OVER THE NEXT FIVE YEARS, SUPPORTED BY NEW PROJECT ADDITIONS, DEEPER MMR PENETRATION & HIGHER JDA CONTRIBUTION • MANAGEMENT AIMS TO ADD ₹8,000–10,000 CR OF NEW PROJECT GDV ANNUALLY, WHILE MAINTAINING GROSS DEBT/EQUITY BELOW 1X DESPITE EXPANSION-RELATED FUNDING REQUIREMENTS • MANAGEMENT TARGETS APPROXIMATELY 20% RETURN ON CAPITAL EMPLOYED, SUPPORTED BY ASSET-LIGHT JDA DEVELOPMENT, INSTITUTIONAL CAPITAL PARTNERSHIPS & IMPROVED PROJECT-LEVEL CASH GENERATION • Q2 TOTAL INCOME GREW 7% YOY TO ₹757 CR, WHILE EBITDA INCREASED APPROXIMATELY 14% TO ₹115 CR, WITH EBITDA MARGIN IMPROVING TO 15% VS 14% LAST YEAR • Q2 PRE-SALES NEARLY DOUBLED YOY DESPITE NO NEW PROJECT LAUNCHES, REFLECTING STRONG DEMAND ACROSS EXISTING THANE & MUMBAI REDEVELOPMENT PROJECTS • Q2 CUSTOMER COLLECTIONS SURGED 67% YOY TO ₹682 CR, WHILE H1 COLLECTIONS REACHED ₹1,233 CR, SUPPORTING PROJECT EXECUTION & OPERATING CASH INFLOWS • H1 BOOKING VALUE JUMPED 111% YOY TO ₹1,602 CR, DEMONSTRATING STRONG SALES MOMENTUM ACROSS THE COMPANY'S EXPANDING RESIDENTIAL PORTFOLIO • TOTAL PROJECT GROSS DEVELOPMENT VALUE REACHED APPROXIMATELY ₹52,000 CR, INCLUDING ₹8,500 CR OF NEW GDV ADDED DURING H1 FY27 • JDA PORTFOLIO CONTRIBUTES APPROXIMATELY ₹27,000 CR OR 52% OF TOTAL GDV, WHILE OWNED THANE LAND ACCOUNTS FOR AROUND ₹25,000 CR OR 48% • NON-THANE PROJECTS CONTRIBUTED 57% OF Q2 PRE-SALES VS 43% FROM THANE, REFLECTING INCREASING DIVERSIFICATION BEYOND THE COMPANY'S CORE LAND PARCEL • THANE LAND BANK COVERS APPROXIMATELY 100 ACRES, WITH 65 ACRES UNDER DEVELOPMENT, REPRESENTING 6.7 MILLION SQ. FT. OF RERA CARPET AREA & ₹16,500 CR REVENUE POTENTIAL • THANE PROJECTS HAVE GENERATED CUMULATIVE SALES OF APPROXIMATELY ₹9,770 CR & CUSTOMER COLLECTIONS OF ₹7,977 CR, PROVIDING STRONG EXISTING PROJECT CASH FLOW VISIBILITY • COMPANY RECEIVED OCCUPATION CERTIFICATE FOR GS1 TOWER B IN THANE, COVERING APPROXIMATELY 270 UNITS & 3.5 LAKH SQ. FT., AHEAD OF THE RERA COMPLETION TIMELINE • LAUNCHED JDA PROJECTS ACROSS BANDRA, BKC, WADALA & SION HAVE GENERATED CUMULATIVE SALES OF APPROXIMATELY ₹3,432 CR & COLLECTIONS OF ₹857 CR • WADALA PROJECT HAS LAUNCHED APPROXIMATELY 617 OF 1,500 PLANNED UNITS, WITH OVER 370 UNITS SOLD, PROVIDING ADDITIONAL SALES POTENTIAL FROM FUTURE PHASES • ICICI PRUDENTIAL AMC-PROMOTED AIF HAS COMMITTED ₹210 CR THROUGH OCRPS FOR A MAHIM REDEVELOPMENT PROJECT, WITH FUNDING EXPECTED IN TRANCHES BY MARCH 2027 • MAHIM INVESTMENT STRUCTURE PROVIDES 60:40 CAPITAL CONTRIBUTION & RESIDUAL PROFIT SHARING BETWEEN THE AIF & RAYMOND, WHILE RAYMOND ALSO EARNS A 5% PROJECT EXECUTION FEE ON TURNOVER • PROMOTER EQUITY COMMITMENT OF APPROXIMATELY ₹400–410 CR IS EXPECTED TO SUPPORT NEW PROJECT ACQUISITIONS, BUSINESS DEVELOPMENT & POTENTIAL REPAYMENT OF HIGH-COST BORROWINGS • NET DEBT STOOD AT ₹912 CR, WITH GROSS BORROWINGS OF APPROXIMATELY ₹1,200 CR, CASH BUFFER NEAR ₹300 CR & GROSS DEBT/EQUITY AT 0.8X • Q2 INTEREST COST STOOD AT ₹44 CR, INCLUDING ₹27 CR ON BANK BORROWINGS & ₹17 CR RELATED TO GOVERNMENT APPROVAL PAYMENTS, WHILE AVERAGE BORROWING COST WAS APPROXIMATELY 9.6% • MANAGEMENT EXPECTS H2 INTEREST COSTS TO REMAIN BROADLY SIMILAR TO H1 RUN RATE, ALTHOUGH GROSS DEBT COULD INCREASE AS ADDITIONAL JDA PROJECTS ENTER DEVELOPMENT • MANAGEMENT EXPECTS NEW JDA PROJECTS TO CONSUME CASH DURING THE FIRST TWO YEARS BEFORE GENERATING POSITIVE CASH FLOW AROUND THE THIRD YEAR, WITH MORE STABLE CASH GENERATION EXPECTED WITHIN APPROXIMATELY TWO YEARS • MANAGEMENT ESTIMATES FUTURE PROJECT-LEVEL CASH FLOW OF APPROXIMATELY ₹14,375 CR FROM THE EXISTING ₹52,000 CR GDV PORTFOLIO, SUBJECT TO SUCCESSFUL PROJECT EXECUTION & COLLECTIONS • ESTIMATED PRE-TAX CASH FLOW AFTER SELLING & CORPORATE OVERHEADS COULD REACH APPROXIMATELY ₹10,000 CR OVER THE NEXT 4–5 YEARS, BASED ON MANAGEMENT'S CURRENT PROJECT ASSUMPTIONS • MANAGEMENT IS EVALUATING POTENTIAL ADDITIONAL EQUITY FUNDING OF ₹500–600 CR TO SUPPORT EXPANSION, WHILE PRIORITISING CAPITAL EFFICIENCY & CONTROLLED LEVERAGE • MANAGEMENT REMAINS POSITIVE ON STRONG PRE-SALES, ₹52,000 CR PROJECT VISIBILITY, MAHIM LAUNCHES, JDA EXPANSION & HEALTHY COLLECTIONS, BUT RISING DEBT, HIGHER INTEREST COSTS, UPFRONT PROJECT CASH REQUIREMENTS, POTENTIAL EQUITY DILUTION & EXECUTION DELAYS REMAIN KEY RISKS
RAYMOND REALTY LIMITED