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    Raymond Realty Limited

    RAYMONDREL
    Realty·29 Oct 2025
    Management Summary

    Raymond Realty Limited reported a Q2 FY26 booking value of ₹455 crores and a 20% YoY increase in total income to ₹706 crores, navigating a planned transition period. Despite a decline in net cash to ₹48 crores and negative operating cash flow due to strategic investments in new launches, the company remains net-debt-free. Management reiterated its commitment to a minimum 20% annual booking value growth, supported by a robust H2 FY26 launch pipeline with an estimated GDV of ₹5,000 crores, while addressing concerns regarding current margin compression.

    Highlights

    5

    • Q2 FY26 booking value of ₹455 crores, contributing to H1 FY26 booking value of ₹760 crores.

    • Total income for Q2 FY26 grew 20% YoY to ₹706 crores, up from ₹589 crores in Q2 FY25.

    • EBITDA for Q2 FY26 increased to ₹101 crores from ₹95 crores in Q2 FY25.

    • Company maintains a net-debt-free status with a cash surplus of ₹48 crores as of September 2025.

    • Construction momentum across all launched projects is progressing well and ahead of timelines.

    Concerns

    4

    • H1 FY26 results were almost flat year-on-year, though management stated this was planned as a transition period.

    • Net cash position declined sharply from ₹233 crores to ₹48 crores.

    • Half-yearly operating cash flow was negative by approximately ₹400 crores due to investments in new project launches.

    • EBITDA margins (13% in H1 FY26) were lower than the previous year and below the 20% long-term target, attributed to product mix and new project launch dynamics.

    What Changed2

    vs Q3 FY26

    Guidance items7 → 6 (-1)Risks discussed1 → 3 (+2)

    Key financials

    Single quarter

    05 metrics
    1. 01Booking Value₹760 Cr
    2. 02Total Income₹1,098 Cr
    3. 03EBITDA₹143 Cr
    4. 04EBITDA Margin13%
    5. 05Collections₹783 Cr

    Order Book

    high confidence

    Total Value

    ₹ 760 crores

    as of 2025-09-30

    quantified

    Inflow this qtr

    ₹ 455 crores

    Pipeline

    other

    Total potential revenue for current real estate business is close to Rs. 40,000 crores, including Rs. 25,000 crores from Thane land parcel and Rs. 14,000 crores from JDA-led models. H2 FY26 launches are expected to have a combined GDV of ~Rs. 5,000 crores, comprising 7-8 projects.

    "Booking value for H1 FY26 was Rs. 760 crores, with Q2 FY26 contributing Rs. 455 crores. The company has a strong launch pipeline for H2 FY26, with an estimated GDV of ~Rs. 5,000 crores from 7-8 projects. Total potential revenue from the current real estate business is approximately Rs. 40,000 crores. Sales for new launches are strong, but reported booking numbers reflect units registered and stamp duty paid, which has a 30-60 day lag."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    partly through internal accruals of existing projects and partly through debt; future expansion will be a combination of internal accruals from Thane projects and debt from banks

    Debt

    Net ₹-48 crores

    Cost 10.0%

    Liquidity

    Cash ₹48 crores

    Cash surplus as of September 2025, indicating a net-debt-free position. H1 FY26 operating cash flow was negative ~Rs. 400 crores due to investments in new projects.

    Guidance & targets

    6
    CategoryTargetPriority
    Booking Value
    Booking Value Growth
    20%
    		High
    Profitability
    EBITDA Margin
    20%
    		High
    Profitability
    ROCE
    20% or more
    		High
    Debt
    Debt to Equity Ratio
    1:1 (maximum)
    		High
    Launches
    Gross Development Value (GDV) of H2 FY26 Launches
    ~5,000 crores
    		Medium
    Growth
    Pre-sales and Top Line Growth
    20%
    		High

    H2 FY26 Booking Value Growth

    Next quarter (Q3 FY26) and H2 FY26
    CurrentH1 FY26 booking value ₹760 crores, H1 growth almost flat YoY
    TargetAchieve 20% YoY growth for FY26 (implies significant H2 growth)

    Why it matters

    This is the primary annual guidance and a key indicator of the company's sales performance and future revenue.

    Our aim for the current year in terms of booking value growth is 20%. So, we will give you a minimum 20% growth as committed.

    How to verify

    key_financials.metrics[label='Booking Value']

    Risks & concerns

    3
    RiskSeverity

    Flat H1 FY26 performance relative to 20% YoY growth guidance

    H1 FY26 results were almost flat YoY, raising questions about achieving the 20% annual booking value growth target, though management explained it was a planned transition period. — Analyst acknowledged

    medium

    Decline in net cash position and negative operating cash flow

    Net cash declined from ₹233 crores to ₹48 crores, and H1 operating cash flow was negative ~₹400 crores, explained as strategic investment in new project launches and approval costs. — Analyst acknowledged

    medium

    Lower EBITDA margins compared to previous year and long-term target

    H1 EBITDA margin was 13%, below the 20% long-term target, attributed to product mix and new project launch dynamics, with expected improvement in H2. — Analyst acknowledged

    medium

    Q&A highlights

    7

    “You are right that the H1 numbers, when you compare it with the corresponding quarter are flat, but that is exactly how it was planned for the year. So, we are exactly on plan. In fact, we are slightly ahead of what we had planned in terms of recognition. And H2 by plan itself is anyway heavier given the market the way it is because Q3, Q4 for all real estate players is heavy and particularly for us because of the launches the way they are planned, it is going to be heavy.”

    Clarifies that flat H1 performance was anticipated and aligns with strategic planning for H2 launches, reassuring on the 20% annual growth target.

    asked by Gaurav Mishra

    2 min read6 chapters

    Detailed Narrative

    01

    Macroeconomic Landscape and Real Estate Sector Resilience

    The Indian real estate sector demonstrated remarkable resilience in Q2 FY26, supported by the Reserve Bank of India's accommodative monetary stance, with Repo rates maintained at 5.5%. This, coupled with strong domestic consumption momentum, enhances home loan affordability and positive buyer sentiment. A structural shift towards quality and branded developers is also observed, benefiting the company's market position.

    02

    Robust Mumbai Property Market Performance

    Mumbai's property markets continue their strong run, driven by sustained end-user demand for large and premium homes. The festive season witnessed significant activity, with approximately 10,600 property deals during Navratri and Ganesh Chaturthi, marking a 23% year-on-year increase. This robust transaction volume signals strong and consistent buyer confidence in the market.

    03

    Q2 & H1 FY26 Financial Performance Overview

    Raymond Realty Limited achieved a Q2 FY26 booking value of ₹455 crores and cumulative H1 FY26 booking value of ₹760 crores. Total income for Q2 FY26 grew 20% YoY to ₹706 crores (from ₹589 crores in Q2 FY25), with EBITDA reaching ₹101 crores (up from ₹95 crores in Q2 FY25) at a 14.3% margin. For H1 FY26, total income stood at ₹1,098 crores, with EBITDA of ₹143 crores and a 13% margin. Collections for Q2 and H1 were ₹409 crores and ₹783 crores, respectively.

    04

    Strategic Project Launches and Pipeline for H2 FY26

    The company launched two new residential towers, Address by GS Season 3 and Invictus Tower B in Thane, which received an overwhelming response. A robust launch pipeline is planned for H2 FY26, including two projects in Q3 (Bandra, Wadala) and four projects in Q4 (Sion, Mahim, and two in Thane), totaling 7-8 projects for the year. The combined Gross Development Value (GDV) of H2 FY26 launches is estimated to be in the ballpark region of ₹5,000 crores.

    05

    Capital Structure and Funding Strategy

    Raymond Realty maintains a net-debt-free position with a cash surplus of ₹48 crores as of September 2025. The increase in the balance sheet and negative operating cash flow of approximately ₹400 crores in H1 FY26 is attributed to strategic investments in new project launches and associated approval costs. These investments are funded through a combination of internal accruals from existing projects and debt, with a commitment to not exceed a 1:1 debt-to-equity ratio and maintain a ROCE of 20% or more.

    06

    Margin Dynamics and Future Outlook

    Current EBITDA margins (13% in H1 FY26) are lower than the long-term target of 20% due to changes in product mix and the initial phases of new project launches. Management anticipates margin improvement in H2 FY26, particularly in Q4, as new retail portfolios are introduced and projects mature. The company remains confident in achieving its minimum 20% year-on-year booking value growth target for FY26.

    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.