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    KALPATARU

    KALPATARUGood
    Realty·11 Nov 2025
    Management Summary

    Kalpataru Limited reported a strong performance in Q2 and H1 FY26, driven by robust pre-sales and collections growth of 43% and 37% year-on-year respectively for H1. The company achieved a profit of ₹5 crores in Q2, reversing a Q1 loss, and significantly deleveraged its balance sheet, reducing net debt by 13.8% from FY25 end. Management expressed high confidence in achieving its ambitious FY26 guidance for pre-sales and collections, supported by a strong launch pipeline and ongoing project execution.

    Highlights

    8
    • H1 FY26 pre-sales stood at ₹2,577 crores, marking a 43% year-on-year growth.

    • H1 FY26 collections reached ₹2,308 crores, reflecting a 37% year-on-year growth.

    • Q2 FY26 revenue from operations was ₹794 crores, with H1 FY26 revenue at ₹1,237 crores.

    • Adjusted EBITDA for H1 FY26 was ₹293 crores, with Q2 FY26 at ₹190 crores.

    • The company reported a profit of ₹5 crores in Q2 FY26, a turnaround from a loss of ₹52 crores in Q1.

    • Net debt reduced to ₹8,025 crores as of September 30, 2025, from ₹9,310 crores at FY25 end.

    • Net debt to equity improved significantly to 2.0x from 3.8x as of March 2025.

    • FY26 guidance includes pre-sales of around ₹7,000 crores (55% YoY increase) and collections of ₹5,700 crores (56% YoY growth).

    Key financials

    Metrics

    7

    Periods

    2

    Headline

    6
    • Pre-sales
      ₹2,577 Cr
      YoY+43%
    • Collections
      ₹2,308 Cr
      YoY+37%
    • Revenue from Operations
      ₹1,237 Cr
    • Adjusted EBITDA
      ₹293 Cr
    • Net Debt (Sep 30, 2025)
      ₹8,025 Cr

    Q2 FY26

    1
    • Profit
      ₹5 Cr

    Guidance & targets

    12
    CategoryTargetPriority
    Profitability
    Cash EBITDA margins
    35% and upward
    High
    Profitability
    Total Interest Cost (COGS + P&L)
    ₹750 crores
    Medium
    Profitability
    Adjusted EBITDA margins
    30%
    High
    Sales
    Pre-sales
    ₹7,000 crores
    High
    Sales
    Launch of Saleable Area
    3.2 million square feet
    High
    Collections
    Collections
    ₹5,700 crores
    High
    Debt
    Net Debt
    ₹7,300 crores
    High
    Debt
    Net Debt to Equity
    1.5x
    High
    Debt
    Net Debt to Equity
    1x
    High
    Debt
    Average Cost of Debt
    down by at least half a percentage minimum
    High
    Cash Flow
    Free Cash Flow
    ₹1,200-1,300 crores
    High
    Growth
    Growth momentum
    around 20%
    Medium

    Risks & concerns

    2
    RiskSeverity

    Slowdown in residential market / Competitive intensity in Thane

    Akash Gupta mentioned 'some noise on slowdown in the residential market' and Mihir Manik asked about 'competitive intensity over the Thane market'. Management acknowledged competition but expressed confidence in their projects' quality and location, citing good footfall in Worli and Thane sales picking up.Analyst acknowledged

    low

    Project approval delays due to BMC elections (Andheri launch)

    Harsh Pathak raised concern about BMC elections potentially impacting approvals for the Andheri launch. Management stated they have received IOD and expect approvals within 45-60 days, not foreseeing elections as an issue.Analyst downplayed

    low

    Q&A highlights

    3

    “Okay. So, considering that the current equity which the company has does not change, subject to only the changes due to the profits getting added to it, no further capital gains. With that, the guidance which can be given to the market is that currently it is at 2x. By FY'27, it would be around 1.5x. And by FY'28, it would be around 1x.”

    This question elicited clear, specific targets for the company's crucial leverage ratios over the next two fiscal years, indicating a strong deleveraging path.

    asked by Akash Gupta from Nomura

    3 min read6 chapters

    Detailed Narrative

    01

    Strong H1 FY26 Performance Driven by Pre-sales and Collections

    Kalpataru Limited delivered robust financial results for H1 FY26, with pre-sales growing by 43% year-on-year to ₹2,577 crores and collections increasing by 37% year-on-year to ₹2,308 crores. Q2 FY26 alone saw pre-sales of ₹1,329 crores (up 19% YoY) and collections of ₹1,162 crores (up 37% YoY). Revenue from operations for H1 FY26 stood at ₹1,237 crores, with an adjusted EBITDA of ₹293 crores. Notably, the company achieved a profit of ₹5 crores in Q2 FY26, a significant turnaround from a loss of ₹52 crores in Q1.

    02

    Significant Deleveraging and Financial Health Improvement

    The company demonstrated strong financial discipline, reducing its gross debt and improving leverage ratios. Net debt decreased to ₹8,025 crores as of September 30, 2025, from ₹9,310 crores at the end of FY25, representing a 13.8% reduction. Consequently, the net debt to equity ratio sharply improved to 2.0x from 3.8x in March 2025. Management guided for further reduction, targeting net debt of ₹7,300 crores by FY26 end, 1.5x net debt/equity by FY27, and 1x by FY28, primarily through organically generated cash flows.

    03

    Ambitious FY26 Guidance and Future Outlook

    Kalpataru maintains a strong growth outlook for FY26, guiding for pre-sales of approximately ₹7,000 crores (a 55% YoY increase) and collections of ₹5,700 crores (a 56% YoY growth). The company expects adjusted EBITDA margins for the full year to be around 30% and cash EBITDA margins to be 35% and upward going forward. Free cash flow for FY26 is projected to be between ₹1,200-1,300 crores, supporting continued debt reduction and capital efficiency.

    04

    Strategic Project Launches and Robust Pipeline

    During Q2 FY26, Kalpataru launched Kalpataru Estella at Kalpataru Park City in Thane, its largest offering to date, spanning 12 acres with 900,000 sq ft in Towers A and B. A new tower was also launched at Srishti Namaah in Mira Road. The flagship luxury project, Kalpataru One at Worli, has seen strong demand, with ₹850 crores in sales by October. For FY26, the company plans to launch approximately 3.2 million square feet of saleable area, including new projects in Lokhandwala (Andheri) and new phases in existing projects like Eternia (Thane) and Aria (Karjat).

    05

    Business Development and Land Bank Strategy

    Kalpataru's business development strategy focuses on redevelopment, Joint Ventures (JV), Joint Development Agreements (JD), and plotted developments in the Mumbai Metropolitan Region (MMR) and Pune. The company is evaluating opportunities for two more redevelopment projects in Andheri and Kandivali within the next six months. The existing land reserves, excluding Surat, are valued at around ₹1,000 crores and offer substantial Gross Development Value (GDV) potential, though monetization is planned beyond five years for most parcels.

    06

    Optimizing Finance Costs and Capital Allocation

    The company is actively optimizing its finance costs through refinancing options. In H1 FY26, approximately ₹800 crores of debt were shifted to lower-cost options, resulting in an interest arbitrage of ₹50-75 crores annually. Further efforts are planned for H2 FY26 to shift another ₹1,000 crores of debt. The average cost of debt, currently around 12%, is expected to decrease by at least half a percentage point by FY26 end, enhancing overall capital efficiency and long-term profitability.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.