RAYMONDREL

    RAYMONDREL
    Realty·27 Jan 2026
    Management Summary

    Raymond Realty reported strong Q3 FY26 results with significant growth in booking value and total income, driven by robust market demand and strategic project launches. The company is actively transitioning to an asset-light JDA model, which is expected to contribute 50% of pre-sales by FY28. While 9M EBITDA margins were 13%, management provided a clear roadmap for improvement to 18-20% by FY27, addressing investor concerns regarding profitability.

    Highlights5
    • Q3 FY26 booking value surged to INR743 crores, a 47% year-on-year increase from INR505 crores last year.
    • Q3 FY26 total income reached INR766 crores, a 56% year-on-year growth.
    • Nine-month customer collections totaled INR1,210 crores, demonstrating healthy operational discipline.
    • Net debt remained modest at INR230 crores as of December 31, 2025, reflecting a lean financial profile.
    • Mumbai property registrations for calendar year 2025 reached 1.5 lakh, the highest in 14 years, indicating strong market demand.
    Concerns Noted2
    • EBITDA margin for 9M FY26 was 13%, lower than historical 20-25% (though management provided detailed explanations and guided for improvement).
    • Collections growth (INR427 crores in Q3 FY26) did not match pre-sales growth (INR743 crores in Q3 FY26), which management attributed to milestone-based payment schedules.
    What Changed2

    vs Q4 FY26

    Guidance items4 → 7 (+3)Risks discussed3 → 1 (-2)
    Numbers6

    Key Financials

    MetricValueYoY
    Q3 Booking Value₹743 Cr+47.0% YoY
    Q3 Total Income₹766 Cr+56.0% YoY
    9M Booking Value₹1.5K Cr
    9M Total Income₹1.9K Cr
    9M Customer Collections₹1.2K Cr
    9M EBITDA Margin13%
    Trend1

    Historical Trend

    Last 4Q
    MetricLatestTrend
    Net Debt(crores)656

    Order Book

    high confidence

    Total Value

    ₹ 40,000 crores

    as of 2025-12-31

    quantified
    47.0% YoY

    Inflow this qtr

    ₹ 743 crores

    Composition

    Thane land parcel (100 acres)(project)
    ₹ 25,000 crores
    JDA projects (6 JDAs)(project)
    ₹ 14,000 crores

    Pipeline

    other

    Four major launches in Q4 FY26, including two JDA projects (Wadala and Sion) and two Thane projects (2BHK community and retail). Remaining two JDAs in 12-15 months.

    "The company's financial trajectory is characterized by surging growth and disciplined execution, with a robust pipeline of new projects expected to drive future bookings."

    Source:
    Prepared remarks
    Capital2

    Capital Allocation

    high confidence
    CategoryHeadline
    Debt

    Net ₹230 crores

    Liquidity

    Liquidity disclosed

    Customer collections of INR1,210 crores in nine months contribute to liquidity and self-funding strategy.

    Promises7

    Guidance & Targets

    CategoryTargetPriority
    Growth
    Pre-sales and Top Line Growth20%
    High
    Profitability
    EBITDA Margin15%-16%
    High
    Profitability
    EBITDA Margin20%
    High
    Profitability
    EBITDA Margin17%-20%
    High
    Booking Value
    Total Booking ValueINR2,800 crores
    High
    Booking Value
    Q4 Booking ValueINR1,300 crores
    High
    Business Model
    Share of annual pre-sales from JDA50%
    High
    Watchlist4

    Watch for Next Quarter

    #Metric
    01Q4 FY26 Booking Value
    02EBITDA Margin
    03JDA Project Launches
    04Share of Pre-sales from JDA
    Risks1

    Risks & Concerns

    SeverityRisk
    medium

    Potential for lower EBITDA margins due to JDA model and accounting changes

    Historical 20-25% EBITDA margin dropped to 13% post-demerger due to common cost allocation and 5% presumptive margin for rehab portion in JDA accounting, coupled with initial launch expenses. Management provided a clear roadmap for improvement to 18-20% by FY27.

    Analyst
    Q&A8

    Q&A Highlights

    Narrative2m

    Detailed Narrative

    6 chapters
    01

    Strong Market Performance and Macro Tailwinds

    The real estate sector continued its upward trajectory, marking almost three years of sustained growth, supported by an accommodative monetary environment with the RBI reducing the repo rate by 25 basis points to 5.25%. Mumbai's property market demonstrated significant strength in Q3 FY26, with November and December registrations exceeding 36,000 units. The full calendar year 2025 recorded 1.5 lakh registrations, the highest in 14 years, reflecting deep-rooted buyer confidence and resilient domestic consumption.

    02

    Robust Financial Performance and Growth Trajectory

    Raymond Realty Limited reported a Q3 FY26 booking value of INR743 crores, a 47% year-on-year increase from INR505 crores in the prior year. Total income for the quarter reached INR766 crores, representing a 56% year-on-year growth. For the nine months ended December 31, 2025, booking value stood at INR1,504 crores and total income at INR1,864 crores, with customer collections of INR1,210 crores.

    03

    Strategic Shift to Asset-Light JDA Model

    The company is aggressively transitioning to a high-efficiency asset-light JDA model, with a target for 50% of annual pre-sales to come from JDA projects by FY28, up from over 22% in FY25. Currently, Raymond Realty has six JDA projects with a revenue potential of approximately INR14,000 crores. Two JDAs have been launched, with another two (Wadala and Sion) slated for Q4 FY26, and the remaining two within 12-15 months.

    04

    EBITDA Margin Dynamics and Outlook

    EBITDA margins for the nine months stood at 13%, which management attributed to common cost allocation post-demerger, accounting changes for JDA rehab portions (5% presumptive margin), and initial launch expenses. However, the company is firmly committed to achieving an 18%-20% EBITDA margin profile, expecting an 'onwards march' in Q4 FY26 and targeting 20% by FY27, with FY26 overall projected at 15%-16% (excluding other income).

    05

    Project Pipeline and Revenue Potential

    Raymond Realty's current portfolio holds a revenue potential of INR40,000 crores. This includes INR25,000 crores from its 100-acre Thane land parcel, with INR13,200 crores from 55 acres currently under development, of which INR8,500 crores have been sold and INR6,700 crores collected. The Q4 FY26 launch pipeline is robust, featuring four major projects, including two JDA projects in Wadala and Sion, and two in Thane (a 2BHK community and a retail project), which are expected to drive the remaining INR1,300 crores to meet the FY26 booking target of INR2,800 crores.

    06

    Prudent Capital Allocation and Debt Management

    The company emphasizes risk management and milestone-linked capital deployment, avoiding upfront full capital commitment. The strategy prioritizes self-funded projects over the cycle, utilizing asset-level structures and partnerships to minimize balance sheet strain. Net debt as of December 31, 2025, remained modest at INR230 crores, reflecting disciplined financial management. Management confirmed that the business is adequately funded and does not require promoter funding at this stage.

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