30-Oct-2026 17:16:42
KALPATARU Q2 CONCALL: RETAINS FY27 PRE-SALES GUIDANCE OF ₹6,500 CR, TARGETS 5.5 MILLION SQ. FT. COMPLETION & EXPECTS STRONGER H2 PERFORMANCE
• FY27 Pre-Sales Guidance: Management reiterated its full-year pre-sales target of ₹6,500 Cr, compared with ₹5,280 Cr achieved in FY26. • H2 FY27 Sales Outlook: Management expects H2 pre-sales to be stronger than H1, supported by festive demand, ongoing project sales and new launches. • H2 Pre-Sales Requirement: Company needs approximately ₹3,913 Cr of pre-sales in H2 to achieve its FY27 target of ₹6,500 Cr. • Pre-Sales Seasonality: Management indicated that historically around 40% of annual pre-sales are achieved in H1 and approximately 60% in H2. • FY27 Project Completion Target: Management maintained its target of completing approximately 5.5 million sq. ft. during FY27. • FY27–FY29 Completion Pipeline: Company expects to complete approximately 14 million sq. ft. of ongoing projects over FY27–FY29, with the remaining projects after FY27 scheduled for completion during FY28 and FY29. • Revenue Recognition Outlook: Management expects additional revenue and profit recognition from projects scheduled for completion in H2 FY27, as most projects follow the project-completion method of accounting. • FY27 Net Debt Guidance: Management expects net debt at FY27-end to remain broadly flat compared with FY26-end, as cash flows will be utilized for construction and business development. • Debt Reduction Outlook: Management expects project completions and associated revenue recognition and cash flows to support a reduction in gross and net debt over the coming years. • FY27 Cash Flow Outlook: Management expects operating cash flows to remain broadly comparable with FY26, alongside higher targeted pre-sales. • H2 Project Launch Pipeline: Company plans three major launches across Chembur, Pune and Nagpur during the remainder of FY27. • Kalpataru Blossom – Pune: Management expects the project to launch before December 2026, subject to RERA approval. • Suman Nagar – Chembur: Management expects the project to launch in Q4 FY27, with initial approvals received and the process of vacating existing residences underway. • Kalpataru Ardene – Nagpur: Management expects the plotted development project to launch in Q4 FY27, subject to final approvals and RERA registration. • Kalpataru Parkcity – Thane: H1 pre-sales reached ₹420 Cr, compared with ₹167 Cr in H1 FY26, supported by improving customer interest and conversions. • Parkcity Demand: Management reported a 25% YoY increase in customer walk-ins, while conversion rates have nearly doubled. • Parkcity Occupancy: More than 2,000 families currently reside at the development, with management expecting occupancy to exceed 3,000 families by the end of 2027. • Kalpataru One – Worli: Management highlighted strong customer interest and improving conversions during the festive season, with expectations of further sales momentum. • Kalpataru Elaara – Goregaon West: Project launched in September 2026 and recorded approximately 30% sales of its inventory following launch. • Kalpataru Vian – Lokhandwala: Management reported continued sales momentum following the project's Q1 FY27 launch. • Residential Demand Outlook: Management indicated healthy demand across affordable-premium, mid-premium and luxury housing categories. • Housing Demand Below ₹3 Cr: Management reported healthy demand across Thane, Mira Road, Pune and suburban Mumbai projects. • Premium Housing Demand: Projects priced approximately ₹3–10 Cr in western Mumbai continued to receive encouraging customer responses. • Luxury Housing Outlook: Management reported healthy enquiries in South Mumbai, with expectations of improving conversions over the coming months. • Property Price Increases: Company implemented price increases of approximately 3–5% across projects to offset construction cost inflation. • Q2 Pre-Sales: Pre-sales stood at ₹1,258 Cr, down 5% YoY. • H1 Pre-Sales: Pre-sales stood at ₹2,587 Cr, broadly flat YoY. • Q2 Collections: Customer collections stood at ₹1,189 Cr, broadly flat YoY. • H1 Collections: Collections increased 9% YoY to ₹2,554 Cr. • Q2 Project Completions: Company received occupation certificates for approximately 1.58 million sq. ft. across 1,500 units. • H1 Project Deliveries: Company delivered more than 2,200 units covering approximately 2.37 million sq. ft. • Q2 Revenue: Revenue from operations stood at ₹437 Cr. • Q2 EBITDA: Adjusted EBITDA stood at ₹73 Cr, with an adjusted EBITDA margin of 16.6%. • Q2 Net Loss: Company reported a net loss of ₹71 Cr. • H1 Financial Performance: Revenue stood at ₹909 Cr, adjusted EBITDA at ₹167 Cr with an 18.4% margin, and net loss at ₹100 Cr. • Gross Debt: Total gross debt stood at ₹9,179 Cr as of September 30, 2026. • Cash Position: Cash and cash equivalents stood at ₹856 Cr. • Net Debt: Net debt stood at ₹8,323 Cr, with net debt-to-equity at 2.1x. • Balance Sheet Outlook: Management expects cash generation from project execution and completions to strengthen the balance sheet over FY27–FY29. • Execution Priorities: Management remains focused on achieving FY27 pre-sales targets, delivering scheduled projects, improving collections and executing the planned launch pipeline.
KALPATARU LIMITED