Summary
Kalpataru Limited - Q3 FY 2026 Earnings Call Summary Monday, February 09, 2026 11:10 A.M. (IST)
Event Participants
Executives 3 Advait Phatarfod (Head of IR), Chandrashekhar Joglekar (Director Finance & CFO), Parag Munot (Managing Director)
Analysts 5 Akash Gupta (Nomura), Adhidev Chattopadhyay (ICICI Securities), Bhavin Modi (Anand Rathi), Suvrit D Patil (EyeSight FinTrade), Varun Arora (Emkay Global), Sumit Kumar (JM Financial)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Pre-sales | ₹870 crores | -14% YoY; Subdued due to regulatory delays in project launches. |
| Collections | ₹1,100 crores | +17% YoY; Reflects robust execution and cycle of deliveries. |
| Revenue from Operations | ₹505 crores | -14.1% YoY; Lower due to mix of projects following the completion method. |
| Adjusted EBITDA | ₹119 crores | -42% YoY; Impacted by higher marketing/admin expenses for future launches. |
| Adjusted EBITDA Margin | 23.6% | -1,130 bps YoY; Reflected temporary revenue recognition mismatch. |
| Net Profit (Loss) | (₹67 crores) | Loss recorded due to accounting method vs. timing of expenses. |
| Gross Debt | ₹9,171 crores | +₹902 crores since IPO; Slight increase due to lower sales and launch delays. |
| Net Debt-to-Equity | 2.1x | Management expects improvement as high-margin projects receive OCs. |
| Completed Area (9M FY26) | 3.52 million sq. ft. | On track for 4.25 million sq. ft. total completions by year-end FY26. |
Geographic & Segment Commentary
- MMR (Mumbai Metropolitan Region): Remains the primary driver with 15 ongoing projects accounting for over ₹23,000 crores of future inflows. Strong luxury momentum reported at Kalpataru One (Worli) and Kalpataru Amare (Juhu).
- Thane & Pune: Thane township developments (Kalpataru Park City) continue to see strong footfalls despite high competitive intensity. Pune and other markets contribute approximately ₹3,800 crores to the future inflow pipeline.
Company-Specific & Strategic Commentary
- Revenue Recognition Transition: 13 projects are currently on the “Project Completion Method,” meaning revenue is only recognized at OC, while marketing and overheads are expensed immediately, causing temporary accounting losses.
- Execution & Delivery Cycle: The company is entering a major delivery phase, aiming to complete 10 million sq. ft. between FY26-27. This includes ₹26,800 crores in future inflows from sold and unsold units in ongoing projects.
- New Business Development: Shift toward a capital-light strategy focusing on JVs, JDAs, and redevelopment in MMR/Pune, targeting internal IRR thresholds of 25%+.
- Interest Cost Optimization: Refinanced ₹2,700 crores post-IPO, reducing interest rates by 365 bps for annual savings of ₹100 crores; an additional ₹2,000 crores to be refinanced by March 2026.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Pre-sales | -20% to -22% vs initial target | Downward revision due to delayed regulatory/environment approvals for key launches. |
| Collections | -10% vs initial target | Slightly lowered due to the knock-on effect of delayed launches. |
| Net Debt | ~₹8,000 crores by Mar-26 | Revised upward from ₹7,300 crores due to lower sales velocity in Q3. |
| Project Completions | 10 million sq. ft. (FY26-27) | High-margin projects expected to significantly improve the debt-equity ratio. |
| Future Launches | 9 million sq. ft. (FY27-28) | Primarily focused on MMR and Pune redevelopment and joint developments. |
Risks & Constraints
| Risk | Context |
|---|---|
| Regulatory Delays | Environment and local approvals delayed the Lokhandwala project launch (₹700 cr potential), impacting FY26 guidance. |
| Accounting Mismatch | The shift to project completion method for 13 projects creates a mismatch between cash flows and reported P&L profitability. |
| Market Competition | High competitive intensity in Thane and luxury SoBo markets; however, management maintains that footfalls and 5-8% conversion rates remain steady. |
Q&A Highlights
Launch Delays
- Question: What caused the Q3 launch delays and what is the status? (Akash Gupta)
- Answer: Environmental approvals for the Lokhandwala project were delayed but are now expected within two months; launch is rescheduled for Q1 FY27 (Parag Munot).
Debt & Cash Flow
- Question: How will net debt reach the guided levels given the current ₹8,300 crore status? (Adhidev Chattopadhyay)
- Answer: While the initial target was ₹7,300 crores, the revised year-end net debt target is now ~₹8,000 crores due to lower collections from delayed launches (Chandrashekhar Joglekar).
Pricing & Demand
- Question: Have you seen price cuts due to competition in Thane or Worli? (Bhavin Modi)
- Answer: No price cuts; average price hikes of 7-10% were taken across the portfolio in the first nine months. Footfalls remain strong with conversion rates between 5-8% (Parag Munot/Chandrashekhar Joglekar).
Finance Costs
- Question: What is the impact of refinancing post-IPO? (Adhidev Chattopadhyay)
- Answer: We achieved a 3.65% reduction on ₹2,700 crores of debt, saving ₹100 crores annually. Another ₹2,000 crores will be refinanced by year-end (Chandrashekhar Joglekar).
Key Takeaway
Kalpataru Limited reported a transitional quarter in Q3 FY2026, where strong operational collections of ₹1,100 crores (up 17% YoY) were offset by a 14% decline in pre-sales due to regulatory delays in key project launches. The company is currently managing a significant accounting mismatch as 13 projects follow the project completion method, leading to reported losses despite healthy cash flows. Management has revised its FY26 pre-sales guidance downward by 20-22% but maintains a strong outlook for FY27-28 with 9 million sq. feet of planned launches and a robust ₹52,000 crore total inflow visibility. Strategic focus is shifting toward capital-light redevelopment and JV models in MMR to optimize the balance sheet. Investors should monitor the successful receipt of OCs in Q4 FY26, which is expected to trigger a significant revenue and profit recognition cycle.
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