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    RAYMONDREL

    RAYMONDREL
    Realty·6 May 2026
    Management Summary

    Raymond Realty reported robust financial results for Q4 and FY26, with significant growth in total income and a substantial surge in quarterly bookings. The company successfully executed its strategic roadmap, achieving key portfolio mix targets ahead of schedule and expanding its JDA portfolio. While EBITDA margins remained resilient, operating cash flow was negative due to ongoing growth investments, a trend expected to continue for the next two years. Management expressed confidence in sustained growth and value creation, despite acknowledging intense competition in key markets and the need for consistent performance to improve market valuation.

    Highlights

    5

    • Total income for FY26 stood at INR3,039 crores, marking a 29% growth over the previous year.

    • Q4 income surged 53% to INR1,176 crores, demonstrating strong quarterly performance.

    • The company reported a 139% year-on-year surge in quarterly bookings, an extraordinary achievement.

    • EBITDA for FY26 rose to INR495 crores, with a resilient EBITDA margin of 21.5% in Q4.

    • The strategic milestone of a 50-50 mix between own land and new JDA projects was achieved one year ahead of schedule in FY26.

    Concerns

    3

    • Operating cash flow was negative in FY26 due to growth investments and approvals, and is expected to remain cash negative for the next two years.

    • Pre-sales in Thane declined from INR1,950 crores in FY24 to INR1,360 crores in FY26, attributed to intense competition and product mix limitations.

    • The company's stock performance and valuation have been relatively lower despite strong execution, which management attributes to the market waiting for consistent performance over more quarters.

    Key financials

    Metrics

    6

    Periods

    4

    Headline

    1
    • Debt-to-Equity (Gross)
      0.6 ratio

    Q4 FY26

    2
    • Total Income
      ₹1,176 Cr
      YoY+53%
    • EBITDA Margin
      21.5%

    FY26

    2
    • Total Income
      ₹3,039 Cr
      YoY+29.0%
    • EBITDA
      ₹495 Cr

    FY26 end

    1
    • Net Debt
      ₹656 Cr

    Order Book

    high confidence

    Total Value

    ₹ 42,000 crores

    as of 2026-03-31

    quantified

    Composition

    Thane (Legacy Land)(geography)
    ₹ 25,000 crores
    JDA Portfolio(project type)
    ₹ 17,000 crores
    Non-Thane Land (JDA)(geography)
    54.0%

    Pipeline

    other

    Upcoming launches in Mahim and Kandivali, and two more launches in Thane.

    "The company has a strong and growing GDV, with a significant portion from its legacy Thane land and an expanding JDA portfolio. New launches in Q4 contributed substantially, and a robust pipeline is in place for future quarters."

    Source:
    Prepared remarks

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Debt

    Net ₹656 crores

    Liquidity

    Liquidity disclosed

    Liquidity buffer of INR358 crores makes the company fully funded for the next year's requirements.

    Guidance & targets

    4
    CategoryTargetPriority
    Profitability
    EBITDA Margin (Blended Basis)
    16-18%
    		Medium
    Debt
    Debt-to-Equity Ratio
    Not exceed 1:1
    		High
    Growth
    Pre-sales and Top-line Growth
    Minimum 20%
    		Medium
    Cash Flow
    Operating Cash Flow
    Cash negative
    		High

    FY27 Blended EBITDA Margin

    FY27
    Current16% (FY26 blended)
    Target16-18%

    Why it matters

    To assess if the company can maintain or improve its profitability as new projects mature.

    FY27, my suggestion would be to assume flat to marginally upward trajectory like we've delivered 16%. So, I mean, my suggestion or guidance would be to assume between 16% and 18% as the EBITDA margin on a blended basis for FY27.

    How to verify

    key_financials.metrics[label='EBITDA Margin (FY27)']

    Risks & concerns

    3
    RiskSeverity

    Negative operating cash flow due to growth investments

    Operating cash flow was negative in FY26 and is expected to remain so for the next two years as the company reinvests in building its balance sheet and portfolio, viewing it as a 'price for growth'. — Management acknowledged

    medium

    Intense competition and limited pricing power in Thane market

    Thane has been an intensely competitive market for 20 years, leading to marginal price increases and limiting growth primarily to volume, which is constrained in a micro-market. — Management acknowledged

    medium

    Construction cost inflation due to geopolitical events

    Management anticipates a 3-4% impact on costs if the situation prolongs, but believes the market has absorption capacity to pass on costs, and no significant impact on EBITDA margins is expected if the situation resolves in 2-3 months. — Management downplayed

    low

    Q&A highlights

    8

    “So, in three years' time, almost 80% of that cash flow comes to us, and for the last year about roughly about 20%. And similarly, if it's a five-year project, then the period will get extended by maybe six more months or nine more months. So that's how really, that's the cycle how it operates.”

    Clarifies the typical cash conversion cycle for real estate projects, which is crucial for understanding liquidity.

    asked by Yeshas Paramesh

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Financial Performance and Growth Momentum

    Raymond Realty delivered robust financial results for FY26, with total income reaching INR3,039 crores, a 29% increase over the previous year. The fourth quarter alone saw a 53% surge in income to INR1,176 crores. The company achieved a remarkable 139% year-on-year surge in quarterly bookings, underscoring strong demand. FY26 EBITDA stood at INR495 crores, with a resilient 21.5% margin in Q4, driven by economies of scale and optimized product mix.

    02

    Strategic Portfolio Shift and JDA Expansion

    A significant strategic milestone was achieved in FY26, one year ahead of schedule, with the company reaching a 50-50 mix between its own land projects in Thane and new Joint Development Agreement (JDA) projects. The JDA portfolio now comprises seven projects with a combined revenue potential of approximately INR17,000 crores, including a recent addition in Kandivali with a gross GDV of INR3,000 crores. This asset-light model has enabled penetration into prime MMR micro-markets like Bandra, BKC, Wadala, and Sion.

    03

    Robust Launch Pipeline and Execution

    The company demonstrated strong execution with strategic launches in Q4 FY26, including 'Address by GS Wadala' and 'Address by GS Sion,' which together released a combined GDV of almost INR6,400 crores. In Thane, 'TenX District 9' and 'Park Street' (retail) were also launched. Looking ahead, two more projects in Mahim are slated for launch by Q3, followed by the Kandivali development in FY28, ensuring a continuous pipeline of new offerings.

    04

    Debt Management and Liquidity Position

    Raymond Realty maintains a strong financial discipline, concluding FY26 with a net debt of INR656 crores. The gross debt-to-equity ratio stands at a comfortable 0.6, well below the internal ceiling of 1:1. A liquidity buffer of INR358 crores ensures the company is fully funded for its requirements in the upcoming year, demonstrating a well-poised liquidity position despite significant growth investments.

    05

    Thane Market Dynamics and Competition

    The Thane market, where Raymond Realty operates significantly, remains intensely competitive, limiting pricing power and leading to marginal price increases over the years. Pre-sales in Thane for FY26 were INR1,360 crores, down from INR1,950 crores in FY24. Management attributes this to product mix and the inherent limitations of volume growth in a single micro-market, but expresses no concern regarding sales stability, with average pre-sales expected to remain in the INR1,300-1,500 crores range.

    06

    Outlook on Margins and Cash Flow

    The blended EBITDA margin for FY26 was 16%, improving from 13% in the first nine months. For FY27, management guides for a blended EBITDA margin of 16-18%, noting that margins are cyclical and depend on the mix of new versus mature projects. Operating cash flow was negative in FY26 due to growth investments and approvals, a trend expected to continue for the next two years as the company prioritizes reinvestment for portfolio expansion and balance sheet growth.

    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.