Summary
Raymond Realty Limited - Q3 FY26 Earnings Call Summary Monday, January 27, 2026 6:00 PM
Event Participants
Executives 4 Ankur Jindal (CFO), Harmohan Sahni (MD & CEO), Rakesh Tiwary (Group CFO), Sunny Desa (Head, Investor Relations)
Analysts 5 Biplab Debbarma (Antique Stock Broking), Deepak Poddar (Sapphire Capital), Kailash Tiwari (Sikhwal Securities), Khushi (Negen Capital), Rishabh Kothari (Ashish Shah Investment Advisors), Sucrit D Patil (Eyesight Fintrade), Tejas Khandelwal (Prudent Equity)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Booking Value (Pre-sales) | ₹743 crores | +47% YoY; Driven by strong demand in Thane and Bandra projects. |
| Total Income | ₹766 crores | +56% YoY; Reflects accelerated construction and revenue recognition. |
| 9M FY26 Booking Value | ₹1,504 crores | On track to achieve full-year guidance of ~₹2,800 crores. |
| 9M FY26 Total Income | ₹1,864 crores | Strong trajectory supported by a robust project pipeline. |
| EBITDA Margin | 13% | Lowered by accounting for JDA rehab portions at 5% margin and demerger-related cost allocations. |
| Customer Collections | ₹1,210 crores | 9M FY26 total; Q3 collections stood at ₹427 crores. |
| Net Debt | ₹230 crores | Maintains a lean financial profile with modest leverage as of Dec 31, 2025. |
| Net Worth / Capital | Asset-Light | Strategy shifting toward JDAs to optimize capital allocation and scale footprint. |
Geographic & Segment Commentary
- Thane (Legacy Land): Remains the primary revenue driver with 100 acres total land parcel (₹25,000 crore potential). Currently, 55 acres are under development with ₹8,500 crores already sold and ₹6,700 crores collected.
- Bandra East (JDA): Two active JDA projects (including Invictus by GS) with a cumulative revenue potential of over ₹2,000 crores. These projects validate the brand’s premium acceptance outside its home market of Thane.
- New Micro-markets (Wadala/Sion): Launched Wadala in Q4 and scheduled Sion for late Feb 2026. These represent the company’s aggressive expansion into Mumbai’s core markets through the asset-light JDA model.
Company-Specific & Strategic Commentary
- Asset-Light Transition: Management targets 50% of annual pre-sales from JDA projects by FY28, up from 22% in FY25, to maximize ROCE.
- “Build Fast, Sell Fast” Strategy: Execution remains a core differentiator, with projects consistently delivered ahead of RERA timelines to protect investor returns.
- Customer-Centricity: Established a dedicated Chief Customer Relationship Officer reporting to the CEO to ensure service levels comparable to luxury automotive standards.
- Retail Diversification: Planned launch of a high-margin retail project in Thane in Q4 FY26 to bolster overall EBITDA margins.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Booking Value Growth | 20% YoY (FY26) | Target of ₹2,800 crores supported by 4 major launches in Q4. |
| EBITDA Margin | 17% - 20% (FY27) | Expected to rebound as JDA projects mature and high-margin retail projects launch. |
| Project Launches | 4 Launches in Q4 FY26 | Includes Wadala, Sion, and two projects in Thane (one 2BHK, one Retail). |
| Revenue Potential | ₹40,000 crores | Total potential across 100-acre Thane land and 6 signed JDAs. |
Risks & Constraints
| Risk | Context |
|---|---|
| Accounting Impacts | Under Ind AS, rehab portions of JDA projects are booked at a presumptive 5% margin, which temporarily dilutes the reported blended EBITDA margin. |
| Micro-market Softness | While management denies seeing softness, any macro-driven dip in Mumbai residential demand could impact the ambitious ₹1,300 crore Q4 sales target. |
| Execution Complexity | Expanding across multiple JDAs in different micro-markets (Wadala, Sion, Bandra) increases regulatory and logistical oversight requirements. |
Q&A Highlights
Margin Compression
- Question: Why has the EBITDA margin dropped from 20%+ pre-demerger to 13%? (Kailash Tiwari)
- Answer: Post-demerger, common corporate costs are now fully allocated to the realty entity. Additionally, accounting standards require booking JDA rehab portions at a low 5% margin, which dilutes the average. Margins will rebound to 18-20% as sales revenue recognition outpaces rehab booking (Harmohan Sahni).
Q4 Sales Targets
- Question: Is the ₹1,300 crore Q4 target too ambitious given market softness? (Hitendra Gupta)
- Answer: We are not experiencing softness in our specific projects. The target is backed by four new launches across three new micro-markets where we previously had no presence (Harmohan Sahni).
Sion Revenue Recognition
- Question: How was ₹108 crores recognized from the Sion project before its launch? (Tejas Khandelwal)
- Answer: Existing residents in redevelopment projects have rights to purchase additional area at market rates. These definitive, registered documents allow for revenue recognition prior to the public launch (Harmohan Sahni).
Capital Allocation
- Question: How do you manage capital amidst input cost fluctuations? (Sucrit D Patil)
- Answer: We use a milestone-linked capital deployment model and prioritize JDAs to avoid upfront land costs. Projects are designed to be self-funded over the cycle to protect Group ROCE (Rakesh Tiwary).
Key Takeaway
Raymond Realty delivered a strong Q3 FY26 with booking values reaching ₹743 crores, a 47% YoY increase, and total income rising 56% to ₹766 crores. The company is aggressively pivoting toward an asset-light JDA model, aiming for JDAs to contribute 50% of pre-sales by FY28. While reported EBITDA margins dipped to 13% due to demerger cost allocations and JDA accounting nuances, management maintains a medium-term target of 20%. With a robust ₹40,000 crore revenue potential pipeline and four major launches scheduled for Q4 FY26 in Wadala, Sion, and Thane, the company remains confident in achieving its 20% annual growth guidance. The strategy focuses on “flight to quality,” leveraging the Raymond brand to command premiums in new Mumbai micro-markets while maintaining a lean balance sheet with a net debt of only ₹230 crores. Raymond Realty is well-positioned to capitalize on Mumbai’s resilient residential demand through FY27.
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