Event Participants
Executives
3 Harmohan Sahni (MD & CEO), Ankur Jindal (CFO), Sunny Desa (Head IR)
Analysts
8 Akshay Jawahar, Bhavin Modi, Deepak Poddar, Ishita Lodha, Kunjal Agarwal, Manvardhan Bait, Pushpendu, Sukriti Patil
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Booking Value (Pre-sales) | ₹700 crores | Up 129% YoY vs ₹306 crores in Q1 FY26; 64% contribution from JDA asset-light model |
| Customer Collections | ₹550 crores | Up 47% YoY; driven by sustained demand across MMR and Thane projects |
| Total Income (Revenue) | ₹536 crores | Up 37% YoY vs ₹390 crores; backed by sustained demand and project delivery |
| EBITDA | ₹70 crores | Up 70% YoY vs ₹41 crores; margin expanded from 11% to 13% |
| EBITDA Margin | 13% | Q1 impact from upfront marketing/construction costs on Q4 FY26 launches; guided to normalize to 17-19% by year-end |
| Net Debt | ₹824 crores | Gross debt ₹1,095 crores; cash/liquidity buffer ₹271 crores |
| Debt-to-Equity | 0.7x | Below internal target of 1x; provides headroom for future expansion |
| Cost of Debt | 9.6% | Competitive vs peers; reflects lender and rating agency confidence |
| Total GDV | ₹52,000 crores | JDA GDV ₹27,000 crores (52% of total, 8 projects); own land GV ₹25,000 crores |
| ROCE | 20%+ guided | Historical performance consistently above 25%; 20% guided minimum for FY27 |
Geographic & Segment Commentary
JDA Asset-Light Model: Eight projects with combined revenue potential of ₹27,000 crores now represent 52% of total GDV, surpassing own-land contribution. Four launched projects (Bandra East, BKC, Wadala, Sion) totaling 2.8 million sq ft RERA carpet area with ₹11,500 crores revenue potential have achieved ₹2,900 crores cumulative sales and ~₹700 crores collections despite being at nascent excavation stage. Flagship Parel JDA (₹8,500 crores GDV) marks entry into South Bombay premium market; management targets margins of ~20% on JDAs, scaling up by FY28.
Thane Land Parcel (Own Land): 65 of 100 acres under active development, comprising 6.7 million sq ft RERA carpet area with ₹16,500 crores revenue potential. Achieved cumulative sales of ₹9,400 crores and collections of ₹7,460 crores; 11 towers (~4,000 homes) delivered. Contributed 36% of Q1 booking value (1/3 of total sales); absolute contribution expected to remain stable while percentage share declines as more MMR projects launch.
Product Brands: Portfolio spans 10X by GS, Address by GS, and Invictus by GS across micro markets. Parel project will feature larger apartments (₹6-20 crore ticket sizes) combining Address and Invictus brands, deliberately excluding the 10X product line for that premium sub-market.
Company-Specific & Strategic Commentary
Parel Flagship JDA: Signed during Q1 with estimated GDV of ₹8,500 crores (~1.7 million sq ft carpet area); marks strategic entry into South Bombay premium housing after 1-2 years of attempts. Project provides 7-8 years of work in that micro-market and represents peak capital requirement of ₹450-500 crores (vs ₹300-350 crores for typical ₹2,000+ crore JDAs) due to scale.
Launch Pipeline: Two Mahim projects to launch in FY27 - first in Q3 (GDV ~₹2,500 crores) and second in Q4 (GDV ~₹2,100-2,200 crores). This will bring total launched JDAs to six out of eight; recently signed Parel and Kandivali deals require ~18-month approval cycle. Approvals for Mahim projects on track despite monsoon season scheduling.
Geographic Strategy: Remains focused exclusively on Maharashtra/MMR; Pune under study for two years but no deals meeting return criteria identified. Management sees no need to diversify given strong MMR growth and inbound interest from other developers.
Investor Outreach: Hired dedicated IR resource (Omit Sabarwal) for focused institutional outreach; market cap crossed ₹4,000 crores. Management acknowledges FII/DII holdings decline (from 22% to ~8% YoY) attributed to demerger-induced market cap constraints triggering house limits, not underperformance.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Pre-sales Growth | >20% YoY (FY27) | Committed minimum; management expects to beat internal projections based on Q1 being ahead of plan |
| Revenue Growth | >20% YoY (FY27) | Total income on P&L basis; backed by project execution and delivery |
| EBITDA Margin | 17-19% (FY27) | Q1 at 13% reflects upfront costs of Q4 FY26 launches; normalization expected as revenue recognition thresholds are met |
| ROCE | 20%+ (FY27) | Capital-light JDA model expected to sustain; historical ROCE consistently >25% |
| Debt-to-Equity | Not exceeding 1x (maintained) | Internal discipline; leverage will moderate once projects generate cash flow, expected in ~1 year |
| Interest Cost | ₹100-120 crores range (FY27) | Based on gross debt of ~₹1,095 crores at blended cost of 9.6%; Q1 was elevated at ~₹47 crores |
Risks & Constraints
| Risk | Context |
|---|---|
| Cost Pressures | Global conditions and ongoing war creating input cost inflation; management treats as temporary over 5-6 year project cycles with built-in contingency buffers in cost estimates |
| Interest Cost Escalation | Absolute interest expense rising with debt drawdown for growth pipeline; Q1 finance cost ~₹47 crores vs guided ₹100-120 crores full year; management commits to debt-to-equity cap of 1x and may use AIF/SPV equity at project level as alternative |
| JDA Execution Risk | Management retains 100% development control with step-in rights for rehab obligations; counterparties limited to passive/sleeping partner roles to protect brand promise and timelines |
| Institutional Holding Decline | FII/DII holdings fell from ~22% to ~8% since demerger, attributed to market cap thresholds rather than performance; mitigation includes dedicated IR hire and market cap growth |
| Macro Demand Cyclicality | Management acknowledges cyclical nature of real estate and timing uncertainty; currently leveraging favorable tailwinds by growing aggressively |
| Regulatory Policy Stability | Current Maharashtra government viewed as pro-growth; 2034 DCR provides policy clarity; no major regulatory risks identified |
Q&A Highlights
Execution Priorities & Risk Management
- Question: What are top 2-3 execution priorities and biggest risks (demand, regulatory, competitive)? (Sukriti Patil - Eyesight Fintrade)
- Answer: Primary focus is execution of Q4 FY26 launches - "put our head down and execute them well" and guidance will be met. Demand is stronger than projected; cost pressures from global conditions are temporary over project cycles. Government policy stable with 2034 DCR; Maharashtra government pro-growth. (Harmohan Sahni)
Capital Allocation & Funding
- Question: How is capital allocation aligned with growth pipeline; what risks in execution timelines, financing conditions? (Sukriti Patil)
- Answer: Debt-to-equity at 0.7x well below 1x internal limit; rolling long-term plans show no risk of breaching cap. AIFs approaching for SPV-level participation available as alternative; equity is last resort. Cost of debt declining, rating strong; "manufacturing mindset" with fast time-to-market. (Harmohan Sahni)
Parel Project Details
- Question: What are ticket sizes, free-sale component, unit plans, and timing? (Ishita Lodha - Svan Investments)
- Answer: ~18 months to market for approvals (now just signed); ticket sizes ₹6-20 crores for larger apartments; product mix is Address by GS and Invictus by GS (no 10X); total underwritten GDV is ₹8,500 crores. (Harmohan Sahni)
Mahim Launch Timing
- Question: Status of Mahim project approvals and launch timeline? (Ishita Lodha - Svan Investments)
- Answer: Two Mahim launches on track - first in Nov-Dec (Q3, GDV ~₹2,500 crores), second in Feb-Mar (Q4, GDV ~₹2,100-2,200 crores). Approvals fast-paced; monsoon settling causing slight schedule adjustment. (Harmohan Sahni)
SPV Incorporation
- Question: Is incorporation of 10X Malakshmi Ltd a new business venture? (Unidentified - Anandrati)
- Answer: SPVs are routinely incorporated in anticipation of projects; no announcement made, no deal signed yet; "patience" requested. (Harmohan Sahni)
JDA vs Own Land Margins and ROCE
- Question: How do JDA margins and capital profile compare with own-land; does JDA-led growth improve ROCE? (Bhavin Modi - Anandrati)
- Answer: JDA typically wins on ROCE - only 10-15% land deposit vs full upfront payment; typical ₹2,000+ crore JDA needs ₹300-350 crores capital, Parel peak at ₹450-500 crores. Own-land margins 25-26%, JDA margins ~20% once matured (FY28); blended guidance 17-19% for FY27. "No other company in the country today can consistently give you 20% ROCE." (Harmohan Sahni)
Interest Cost Outlook
- Question: How should we view elevated absolute interest costs going forward? (Deepak Poddar - Sapphire Capital)
- Answer: Cost of debt stable at 9.6%; absolute interest rises with debt drawdown for growth - not for expenses or fixed assets. Debt levels may not moderate for another year while aggressive growth continues; net debt ₹824 crores, gross debt ₹1,095 crores, cash ₹271 crores. (Harmohan Sahni)
Margin Difference and JDA Maturity
- Question: Margin difference between own land and JDA segments; does incremental collection self-fund? (Kunjal Agarwal - Arihant Capital Markets)
- Answer: Blended margin guidance 17-19%; own land ~25-26%, JDAs ~20% but currently suppressed at early excavation stage; will scale in FY28. Debt discipline maintained at 1x cap; all debt deployed to work in progress, not corporate expenses. (Harmohan Sahni)
Demand Environment & Home Fest
- Question: Any demand softness; why run Home Fest event? (Manvardhan Bait - Saman India PMS)
- Answer: Demand remains strong; Q1 performance exceeded projections. Home Fest is annual monsoon-season initiative to top up sales funnel - typically only ~20% conversion during event, rest converts over next two months. No softness observed in any project. (Harmohan Sahni)
Net Profit Guidance & Institutional Shareholding
- Question: Given higher interest costs, any guidance on net profit/cash profit growth? Concern about FII/DII holdings falling from 22% to 8%? (Pushpendu - Individual Investor)
- Answer: No net profit guidance policy; EBITDA guidance 17-19%, interest ₹100-120 crores - investors can derive math. Institutional exits driven by market cap thresholds post-demerger; family offices and retail have filled gap. New dedicated IR resource hired (Omit Sabarwal) for institutional outreach; considering PE/project-level institutional participation similar to other developers. (Harmohan Sahni)
Finance Cost Composition
- Question: What is "interest expense on dues to government" component (~₹45 crores in FY26 annual report)? (Akshay Jawahar - Individual Investor)
- Answer: Government gives installment facilities for approval costs at 8-9% (lower than banks); availing this keeps ROCE high. Full-year interest cost including this component should be ₹100-120 crores (±10-20%); company will publish disclosure. (Harmohan Sahni)
Key Takeaway
Raymond Realty delivered a strong Q1 FY27 with pre-sales of ₹700 crores (up 129% YoY), revenue of ₹536 crores (up 37% YoY), and EBITDA of ₹70 crores (up 70% YoY), with Q1 EBITDA margin of 13% expected to normalize to the guided 17-19% range as Q4 FY26 launched projects progress through revenue recognition thresholds. The strategic pivot to asset-light JDAs is now fully visible - JDAs contribute 64% of pre-sales and 52% of the total ₹52,000 crores GDV pipeline, with the flagship Parel JDA (₹8,500 crores GDV) marking entry into South Bombay's premium market. Management reiterated FY27 guidance of >20% pre-sales and revenue growth with ROCE above 20%, supported by ₹15,700 crores of unsold launched inventory and ₹24,000 crores of unlaunched GDV. Net debt of ₹824 crores (0.7x D/E) provides headroom under the 1x internal cap. Key watch points include absolute interest cost escalation to a guided ₹100-120 crores, JDA margin maturation to ~20% by FY28, FII/DII holding decline offset by new dedicated IR outreach, and cost inflation from global conditions being absorbed through contingency buffers. Management maintains aggressive growth while leveraging a capital-efficient model, with two Mahim project launches (combined ~₹4,500 crores GDV) slated for Q3-FY27 and Q4-FY27.