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    Keystone Realtor

    RUSTOMJEE
    Realty·12 May 2026
    Management Summary

    Keystone Realtors delivered strong Q4 and full-year FY26 results, with record presales of INR1,346 crores in Q4 and INR4,022 crores for the full year, exceeding guidance across key metrics. The company maintained a net cash positive status with a low debt-to-equity ratio of 0.26:1 and received an AA- rating from Crisil. Strategic initiatives include a robust business development pipeline, a transition to POCM accounting, and a clear roadmap to achieve INR10,000 crores in presales by FY30, despite some headwinds from construction cost inflation and a need for increased push in certain housing segments.

    Highlights

    5

    • Q4 FY26 presales of INR1,346 crores, up 58% YoY, was the highest ever quarterly presales.

    • Full-year FY26 presales of INR4,022 crores, up 33% YoY, met guidance.

    • FY26 business development added INR10,400 crores GDV, 1.74x the guidance of INR6,000 crores and 118% growth YoY.

    • The company is net cash positive with a gross debt-to-equity ratio of 0.26:1, well within guidance.

    • Crisil rating of AA- with a stable outlook reflects strong financial health and project pipelines.

    Concerns

    3

    • Collection efficiency appeared lower due to a higher proportion of sales from newly launched projects, though management expects it to normalize to 75-80% from FY27.

    • Residential demand in the INR1-3 crore segment requires more focused sales efforts, with buying decisions potentially taking longer.

    • Construction costs are experiencing inflation of about 5% overall (8-13% in certain items), coupled with material shortages.

    Key financials

    Metrics

    9

    Periods

    3

    Headline

    2
    • Gross Debt (as of Mar 31, 2026)
      ₹755 Cr
    • Gross Debt-to-Equity Ratio
      0.26 :1

    Q4 FY26

    3
    • Presales
      ₹1,346 Cr
      YoY+58.0%
    • Collections
      ₹853 Cr
      YoY+14.0%
    • Revenue from Operations
      ₹1,596 Cr

    FY26

    4
    • Presales
      ₹4,022 Cr
      YoY+33%
    • Collections
      ₹2,622 Cr
      YoY+13%
    • Operational Cash Flows
      ₹715 Cr
    • Revenue from Operations
      ₹2,635 Cr

    Order Book

    high confidence

    Total Value

    ₹ 4,022 crores

    as of 2026-03-31

    quantified
    33.0% YoY

    Inflow this qtr

    ₹ 1,346 crores

    Composition

    Mix2 sources
    • New Launches (FY26 Sales)40.3%
    • Pre-existing Pipeline (FY26 Sales)59.7%

    Share of order book by source

    Pipeline

    other

    Upcoming project launches and acquisitions for FY27, and total BD pipeline added since FY23.

    "The company has consistently met or surpassed every guidance metric, reflecting a deeply disciplined organization and resilient brand."

    Source:
    Prepared remarks

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    ₹997 crores

    Debt

    Gross ₹755 crores

    Cost 9.5%

    M&A

    Deal

    joint venture · closed

    Liquidity

    Cash ₹818 crores

    The company is a net cash positive company and ended the year with free cash of INR818 crores.

    Guidance & targets

    16
    CategoryTargetPriority
    Presales
    Presales
    INR10,000 crores
    		High
    Presales
    Presales
    INR5,000 crores
    		High
    Project Launches
    Project Launches GDV
    INR8,000 crores
    		High
    Acquisitions
    Acquisitions GDV
    INR8,000+ crores
    		High
    Debt
    Gross Debt to Equity Ratio
    0.75:1
    		High
    Debt
    Peak Gross Debt
    INR1,300-1,400 crores
    		High
    Commercial Annuity Income
    Annuity Income
    INR100 crores
    		High
    Operational Cash Flow
    OCF
    INR1,000 crores
    		High
    Collection Efficiency
    Collection Efficiency
    75-80%
    		High
    Profitability
    Blended Gross Margins
    35%
    		High
    Profitability
    EBITDA Margins (Current Projects)
    20%
    		High
    Finance Cost
    Finance Cost
    INR95 crores
    		High
    ESG
    Green Certified Portfolio
    100%
    		High
    ESG
    Green Certified Critical Building Materials
    Full transition
    		High
    ESG
    Women Participants in Workforce
    22%
    		High
    Market Share
    MMR Market Share
    5%
    		Medium

    Crown Project Inventory Exit

    By December (next 2 quarters)
    Current~INR180 crores inventory and ~INR450 crores sold receivables remaining
    TargetComplete exit from Crown project (sales and cash flows)

    Why it matters

    Signals the successful conclusion of a legacy project, freeing up capital and reducing overhang.

    So Crown my total inventory is about 180 crores means like we are in the last leg and over the next 2 quarters we would have sold basically whatever this last leg of the residual inventory is there. ...we expect almost basically a complete exit from the Crown in terms of the cash flows as well as the sales.

    How to verify

    capital_allocation.liquidity.cash_and_equivalents

    Risks & concerns

    2
    RiskSeverity

    Construction Cost Inflation and Material Shortages

    Costs are increasing (overall ~5%, 8-13% in certain items) and material shortages exist, exacerbated by dollar fluctuations, but the company's phased selling strategy provides insulation. — Both acknowledged

    medium

    Slower Demand in INR1-3 Crore Housing Segment

    While premium and luxury segments are strong, the INR1-3 crore segment requires more sales push and buying decisions may take longer. — Management acknowledged

    low

    Q&A highlights

    8

    “I think in all our previous interactions, we have been maintaining that we sell about 35% till the time the plinth comes, which is generally the first year of the launch. During the sustenance, we sell another 40-odd percent taking to 75%.”

    Clarifies the company's typical sales velocity and inventory management strategy across project lifecycle stages.

    asked by Rushabh Shah

    2 min read6 chapters

    Detailed Narrative

    01

    Record Presales and Strong Growth Momentum

    Keystone Realtors achieved its highest ever quarterly presales in Q4 FY26, reaching INR1,346 crores, a significant 58% year-on-year increase. For the full fiscal year 2026, presales totaled INR4,022 crores, marking a 33% growth over FY25 and meeting the company's guidance. This performance underscores a 2.5x growth in presales over the last three years, translating to a Compound Annual Growth Rate (CAGR) of 36%.

    02

    Robust Business Development and Project Pipeline

    The company's business development (BD) efforts were exceptional, adding 5 new projects with an estimated Gross Development Value (GDV) of INR10,400 crores in FY26, which is 1.74 times the guidance of INR6,000 crores and represents a 118% year-on-year growth. Since FY23, Keystone Realtors has added 25 projects totaling over INR27,800 crores GDV. These projects are primarily in the emerging premium and premium housing segments, underwritten with approximately 35% gross margins and upfront equity capital capped at 10% of total project GDV.

    03

    Sound Financial Health and Capital Discipline

    Keystone Realtors maintained a net cash positive position throughout FY26, demonstrating strong financial discipline. As of March 31, 2026, the gross debt stood at INR755 crores, resulting in a healthy gross debt-to-equity ratio of 0.26:1, well within the company's guidance. The company also reported INR818 crores in free cash at year-end and received an AA- rating with a stable outlook from Crisil, affirming its robust financial standing.

    04

    Strategic Roadmap for INR10,000 Crore Presales by FY30

    The company has outlined an ambitious target to achieve INR10,000 crores in presales by FY30, with an interim target of INR5,000 crores for FY27. This growth will be driven by a multi-pronged strategy focusing on large cluster redevelopments, expansion into new towns and cities, and the development of a commercial annuity portfolio, targeting INR100 crores by FY30. The company aims to increase its market share in the MMR region to 5%.

    05

    Transition to Percentage of Completion Method (POCM)

    Keystone Realtors initiated a transition in its accounting policy from the Project Completion Method (CCM) to the Percentage of Completion Method (POCM) effective April 1, 2025. For FY26, 80% of revenue was recognized under CCM and 20% under POCM. This will shift to 40% CCM and 60% POCM in FY27, with 100% POCM adoption from FY28 onwards. This change is expected to better reflect the company's operational execution strength and reported margins in real-time.

    06

    Managing Market Dynamics and Cost Pressures

    The company acknowledged an overall construction cost inflation of approximately 5%, with certain items seeing 8-13% increases, alongside material shortages. However, management expressed confidence in mitigating these pressures through its phased selling strategy, which allows for shock absorption and pricing adjustments on unsold inventory. While premium and luxury housing demand remains strong, the INR1-3 crore segment requires more focused sales efforts.

    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.