Keystone Realtors Limited — Q3 FY26 earnings call

Call held 4 Feb 2026

Management summary

Keystone Realtors reported strong Q3 FY26 performance with a 23% YoY growth in YTD presales to INR 2,676 crores and an improved gross margin of 35%. The company successfully launched 5 new projects with a GDV of INR 5,835 crores, nearing its full-year target. Despite robust development activity, operating cash flow for the quarter was significantly low due to increased construction spends, though management anticipates a pickup in H2 FY27.

Highlights

  • Pre-sales YTD FY26 reached INR 2,676 crores, marking a 23% year-on-year growth.

  • Gross margin for YTD FY26 improved to 35%, up from 32% in YTD FY25.

  • The company launched 5 new projects with an estimated GDV of INR 5,835 crores, achieving 83% of its full-year launch target.

  • Gross debt stood at INR 625 crores with a healthy debt-to-equity ratio of 0.22:1 and free cash of INR 717 crores.

  • Three projects covering approximately 1.98 million square feet were completed year-to-date FY26.

Concerns

  • Operating Cash Flow (OCF) for Q3 FY26 was very low at INR 2-3 crores, with YTD FY26 OCF at INR 229 crores, attributed to increased construction and other spends on new launches.

  • Collection efficiency was noted to be lower than the target 75-80% due to a large proportion of new project launches, which typically contribute less to OCF in their initial year.

Key financials

  1. Revenue from Operations ₹266 Cr
  2. Revenue from Operations YTD ₹1,039 Cr
  3. Gross Margin YTD 35%
  4. Operating Cash Flow YTD ₹229 Cr
  5. Gross Debt ₹625 Cr
  6. Gross Debt-to-Equity Ratio 0.22 :1

What they filed

Q1 FY27: revenue up 29.9%, net profit down 51.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue63 35 325 68 335 +431%56 +61%210 −35%89 +30%
EBITDA-22 -31 27 -33 -18 +17%-25 +19%-3 −112%-11 +66%
Net profit14 2 55 14 22 +64%-9 −659%14 −75%7 −51%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹2,676 Cr

as of 2025-12-31 quantified

23% YoY

Inflow this quarter

₹837 Cr

Composition

Mix 2 others
  • New Launches Contribution to 9-month Presales 32%
  • New Launches Contribution to Q3 Presales 37%

Share of order book by other· partial disclosure (69% of the book)

Pipeline

other

Upcoming launches include a project at Sewri, a commercial launch at Prabhadevi, and construction commencement for a Thane commercial project.

Presales are tracking broadly in line with expectations, supported by a healthy pipeline of upcoming launches and continuous improvement in go-to-market timelines.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹718 Cr
    • Construction spend for ongoing projects ₹718 Cr
    Our construction spend has risen from INR 609 crores year-to-date FY '25 to INR 718 crores in the year-to-date FY '26, reflecting an 18% year-on-year growth so far.
  • Debt Gross ₹625 Cr
    As of 31st December '25, our gross debt is at INR 625 crores, translating to a gross debt-to-equity ratio of 0.22:1.
  • M&A Lokhandwala Cluster Project Acquisition · Announced · AUM ₹3,900 Cr

    Part of strategic business development initiatives to build momentum in key micro markets.

    In Q3 FY '26, we have added another project, which is part of our Lokhandwala Cluster. With this, the total estimated GDV of our Lokhandwala Cluster would be approximately INR 3,900 crores.
  • Liquidity Cash ₹717 Cr The company remains net cash positive, reflecting the strength and flexibility of its balance sheet.
    We've ended the quarter with free cash of about INR 717 crores. This again underscores our healthy liquidity position. We remain net cash positive status, and this reflects the strength and flexibility of our balance sheet.

Guidance & targets

Presales

  • Presales Value Presales · FY26 · High confidence INR 4,000 crores
    And on our FY '26, our presales guidance of INR4,000 crores is going to be very well achieved.

    — Boman Irani

  • Presales Growth Presales · FY27 · High confidence 25%
    While I don't want to give any guidance for FY '27, I can tell you our growth trajectory will continue. And we will see a 25%. And as usual, we will stay cautious in our forecast, but we'll project a 25% growth year-on-year going forward.

    — Boman Irani

Business Development Spend

  • BD Deployments Business Development Spend · FY27 · Medium confidence INR 850-1,000 crores

    Previously INR 650 crores → INR 850-1,000 crores

    So, this again depends largely on what kinds of developments come our way in '27. But this year, we've done about INR 650 crores in terms of BD deployments or whatever. So you can say that maybe a 25% growth thereof would be about INR 1,000 crores or something INR 850 crores to INR 1,000 crores, let's see.

    — Boman Irani

Business Development Funding

  • Debt Proportion for BD Spend Business Development Funding · FY27 · Medium confidence 40%
    I would more like not 2/3, but maybe 40% would be debt.

    — Chandresh Mehta

Operating Cash Flow

  • OCF Pickup Operating Cash Flow · H2 FY27 · Medium confidence Pickup
    The OCF has been low for this quarter, particularly, but I expect it to go up, particularly from the second half of the next financial year.

    — Sajal Gupta

Project Completion

  • Full Occupancy Certificate (OC) for Rustomjee Crown Project Completion · Q4 FY26 · High confidence Received
    I mean the full OC is only a technicality with regards to certain compliances that should come through in this quarter itself.

    — Boman Irani

What to watch in Q4 FY26

Operating Cash Flow (OCF) Recovery

H2 FY27
Current INR 2-3 crores in Q3 FY26, INR 229 crores YTD FY26
Target Pickup in OCF

Why it matters

OCF was significantly low this quarter, and its recovery is crucial for funding future business development and maintaining financial health.

The OCF has been low for this quarter, particularly, but I expect it to go up, particularly from the second half of the next financial year.

Risks & concerns

  • Low Operating Cash Flow (OCF) due to high development activity

    medium

    OCF for Q3 FY26 was INR 2-3 crores, and YTD FY26 OCF was INR 229 crores, primarily due to increased construction and other spends on numerous new project launches. Management expects OCF to pick up from H2 FY27.

    Management acknowledged

  • Slower sales for Balmoral project due to high price points

    medium

    The market has not fully digested the high price points of the Balmoral project. Management is waiting for the sample home to be ready and for other premium developers to launch nearby at similar price points to validate the value proposition.

    Management acknowledged

Q&A highlights

5 direct
Reasons for low Operating Cash Flow (OCF) in Q3 FY26 Direct
So, Ritwik, you know that we have significantly upped our game in terms of the new launches. This year, we have already launched 5 projects with the value of close to about INR 6,000-odd crores... The OCF has been low for this quarter, particularly, but I expect it to go up, particularly from the second half of the next financial year.

Analyst questioned the sharp reduction in OCF, and management attributed it to increased construction and other spends on new, high-value project launches, with an expectation of recovery in H2 FY27.

Asked by Ritwik Sheth

Benefits and strategy behind cluster redevelopment projects Direct
The government of Maharashtra has brought in Regulation 33(9) to ensure that there is an incentive both for the landowners or the societies and also the developer going for larger development... It allows us to drive efficiencies at scale and as mentioned earlier, enhances the livability for our home seekers or homebuyers therein.

Management explained the strategic advantages of cluster redevelopment (33(9) over 33(7)(B)), highlighting benefits for all stakeholders including larger amenities, better design flexibility, and efficiency for developers.

Asked by Sumit Kumar

Sales strategy and market reception for the Balmoral project Direct
Of course, the price points that we have started out there are something that market is just not able to or has still not been able to digest. And what we've understood is that, we'll have to first bring it to some form of creation where people will be able to see what's really happening. And our sample home is about to get ready later this month.

Analyst inquired about slower sales for Balmoral, and management acknowledged high price points, stating that market acceptance is pending the completion of the sample home and potential validation from other premium developers launching nearby.

Asked by Pritesh Sheth

Update on the Bandstand project launch and sales expectations Direct
Yes, I have -- that's what I was mentioning that you'll see a great uplift in the sales volume and value that takes place in the fourth quarter because we've launched the sales of that one... Yes, yes. We've launched it for sale. Already 1 month has gone by. Yes.

Analyst sought an update on the Bandstand project, and management confirmed its launch for sale, expecting a significant uplift in sales volume and value in Q4 FY26.

Asked by Ritwik Sheth

Future business development (BD) pipeline and funding strategy for FY27 Direct
So you can say that maybe a 25% growth thereof would be about INR 1,000 crores or something INR 850 crores to INR 1,000 crores, let's see... So, we have a huge amount of headroom to go as far as debt is concerned. So yes, obviously, a part of the capital will come from debt. And also internal accruals, so going forward, our OCF will also support this kind of development activities that we need to undertake.

Analyst questioned the BD spend for FY27 and its funding. Management guided for INR 850-1,000 crores BD spend, funded by a mix of internal accruals and approximately 40% debt, leveraging their low debt-to-equity ratio.

Asked by Ritwik Sheth

2 min read 5 chapters

Detailed narrative

Strong Presales Growth and Launch Momentum

Keystone Realtors achieved presales of INR 837 crores in Q3 FY26, contributing to a year-to-date total of INR 2,676 crores, representing a 23% year-on-year growth. The company successfully launched 5 new projects with a total estimated Gross Development Value (GDV) of INR 5,835 crores, reaching 83% of its full-year launch target. This robust performance is supported by a healthy pipeline of upcoming launches and improved go-to-market timelines, with projects like Rustomjee Stella launching in 8 months from DA.

Strategic Focus on Cluster Redevelopment and Asset-Light Model

The company continues to build momentum in business development, adding another project in the Lokhandwala Cluster in Q3, bringing the total estimated GDV for this cluster to INR 3,900 crores. Since FY23, 26 projects with an estimated GDV of INR 26,400 crores have been added, with 22 being redevelopment projects. Keystone Realtors maintains an asset-light, capital-efficient model, limiting upfront equity capital to 10% of total project GDV and targeting a gross margin of 35%.

Expansion into Commercial Real Estate

Keystone Realtors is steadily increasing its focus on the commercial real estate segment. The marquee commercial project, 33fifteen at Bandra West, with an estimated GDV of INR 950 crores, has already seen 18% of its inventory sold. Building on this, the company plans another commercial launch in H1 FY27 at Prabhadevi, with an estimated GDV of INR 1,150 crores, and construction activity for its Thane commercial project is expected to commence soon.

Project Completions and Financial Health

Year-to-date FY26, the company completed 3 projects covering approximately 1.98 million square feet, including Rustomjee Belle Vue, Paramount F Wing, and Tower C of Rustomjee Crown. Financially, the company reported revenue from operations of INR 266 crores for Q3 FY26 and INR 1,039 crores for YTD FY26. Gross margin for YTD FY26 improved to 35% from 32% in the prior year. The gross debt stood at INR 625 crores as of December 31, 2025, resulting in a healthy gross debt-to-equity ratio of 0.22:1, with free cash of INR 717 crores.

Operating Cash Flow Challenges and Outlook

Despite strong presales and launch activity, the Operating Cash Flow (OCF) for Q3 FY26 was notably low at INR 2-3 crores, with YTD FY26 OCF at INR 229 crores. Management attributed this to increased construction spend, which rose 18% YoY to INR 718 crores YTD FY26, and other expenses associated with a higher number of new project launches. The company expects OCF to pick up significantly from the second half of FY27 as these projects mature.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Realty earnings calls