# 1. Financial Performance ## A. Key Figures * **Total Income:** **₹766 Cr** Q3 (+56% YoY) · **₹1,864 Cr** 9M * **EBITDA Margin:** **13%** 9M average * **Customer Collections:** **₹1,210 Cr** 9M · **₹427 Cr** Q3 * **Net Debt:** **₹230 Cr** (as of Dec 31, 2025) ## B. Revenue Growth * **Exceptional Top-Line Momentum:** Revenue surged 56% YoY in Q3, reflecting strong market demand and operating leverage. * **Non-Recurring Revenue Recognition:** Q3 includes **₹108 Cr** from Sion redevelopment due to sale of additional area beyond entitlements, despite project not being formally launched. ## C. EBITDA Margins * **Margin Stability with Upside Potential:** EBITDA margin held steady at 13% despite accounting complexities and early-stage project drag; outlook for expansion in Q4 is positive. * **Retail Catalyst on Horizon:** Upcoming retail project launch expected to lift margins meaningfully due to its **higher-margin profile** versus current portfolio. ## D. Balance Sheet * **Prudent Capital Structure:** Lean balance sheet with modest net debt and no near-term funding needs, reflecting self-sufficiency and disciplined capital allocation. ## E. Cash Flow * **Collections Decoupled from Pre-Sales:** Q3 collections flatlined YoY despite higher pre-sales, as inflows are milestone-linked and front-end revenue recognition limited to **5%-10%** of total project value. * **Operational Cash Flow Stability:** Company refutes notion of significant cash flow volatility, affirming predictable collection patterns aligned with construction progress. --- # 2. Pre-Sales & Bookings ## A. Key Figures * **Q3 Booking Value:** **₹743 Cr** (+47% YoY) · **₹505 Cr** prior year * **9M Booking Value:** **₹1,504 Cr** YTD · **₹2,800 Cr** full-year target (₹1,300 Cr in Q4) ## B. Quarterly Bookings * **Strong Momentum:** Robust YoY booking growth in Q3 reflects rising brand confidence and effective market positioning. * **Growth Drivers:** Upcoming launches under the **scalable asset-light JDA model** expected to deliver **20% YoY booking growth** in target quarters. * **Q4 Project Pipeline:** Fourth-quarter performance to be driven by **nine ongoing projects**, including **seven in Thane and two in Bandra East**. * **Sales Target Confidence:** Management reaffirms high conviction in delivering **1,300 units** in Q4 based on current trends and budgeted projections. ## C. Full-Year Target * **Target on Track:** Company maintains full-year pre-sales guidance of **₹2,800 Cr**, with **~46% already achieved** in first nine months. * **Project Rollout Plan:** Full-year target supported by **13 total projects**, comprising **9 existing** and **4 new launches**, aligned with **20% growth commitment**. * **Resilience Amid Market Softness:** Leadership expresses confidence in target delivery despite broader real estate demand headwinds. --- # 3. Business Model & Strategy ## A. Key Figures * **JDA Pre-Sales Target:** **50%** of annual pre-sales by FY '28 (**22%** in FY '25) * **JDA Margin Range:** **15%–18%** expected, down from historical **20%–25%** * Pricing Premium: 1.5x to 2x higher than Thane projects on new developments ## B. JDA Model Shift * **Strategic Pivot to JDA:** Accelerating shift toward a **50% JDA pre-sales target by FY '28**, driven by capital efficiency and reduced land risk. * **Margin Profile Evolution:** New **15%–18% margin range** reflects revenue-sharing with landlords, partially offset by **premium pricing power in micro-markets**. * **Project Pipeline Alignment:** Upcoming launches in **Bandra, Chembur, and Wadala** will follow the JDA model, institutionalizing the asset-light approach. ## C. Asset-Light Focus * **Business Model Resilience:** Raymond Realty’s **Q3 and 9M FY’26 results exceeded internal benchmarks**, validating the strength of its evolving, self-sustaining model. * **Capital Discipline & Autonomy:** Projects are **self-funded over the cycle** via asset-level structures, with **project-level capital release tied to milestones**, minimizing balance sheet strain. * **Decentralized Capital Allocation:** Demerged entities operate on **independent balance sheets**, with capital allocated via rigorous **risk-adjusted return metrics** (ROCE, IRR, payback). ## D. Build-Sell Velocity * **Execution Momentum:** **Build fast, sell fast** strategy gaining traction, underpinned by strong progress in approvals, construction, and project readiness. * **Capital Efficiency:** **Milestone-linked deployment** ensures funds are released only upon achievement of key triggers, enhancing downside protection. --- # 4. Project Portfolio ## A. Key Figures * **Revenue Potential:** **₹40,000 Cr** total portfolio · **₹25,000 Cr** from Thane land · **₹14,000 Cr** from six JDA projects * **Development Value:** **₹13,200 Cr** across 55 acres under development in Thane · **₹8,500 Cr** inventory sold · **₹6,700 Cr** collected * **JDA Revenue Potential:** **₹2,000 Cr+** from second JDA project alone ## B. Existing Projects * **Execution Momentum:** Rapid sales velocity demonstrated by high value of inventory sold and cash collected on developed Thane land, reflecting strong buyer confidence. * **Sales Enablement:** Final documentation fully executed and registered, allowing immediate sales to existing landowners without new project launch. ## C. Upcoming Launches * **Robust Launch Pipeline:** Four major projects slated for Q4 FY'26—including two JDAs in Wadala and Sion and two in Thane—will target both core and high-margin segments. * **JDA Expansion Trajectory:** Two JDAs launched this year, two more expected in Q4 FY'26, and two additional in the next 12–15 months, signaling sustained growth in asset-light development. * **Market Expansion:** Raymond Realty entering **three new micro markets** in Mumbai, extending footprint beyond current presence. ## D. Revenue Potential * **Strategic Model Shift:** Second JDA project validates high-efficiency, asset-light strategy with **over ₹2,000 Cr** revenue potential, likely to be replicated across pipeline. --- # 5. Execution & Delivery ## A. Construction Progress * **Execution Excellence:** Continued outperformance in construction timelines at both **Thane and Bandra projects**, reinforcing delivery reliability and quality standards. * **On-Ground Delivery:** Successful handover of a significant number of apartments in Thane, with third-party validation confirming **delivery ahead of schedule**. ## B. Timely Delivery * **Strategic Priority:** Raymond Realty is prioritizing **high-quality, timely execution** to strengthen brand trust amid rising demand for credible developers. * **Leadership Focus:** CEO Harmohan Sahni emphasizes **on-time or early delivery**, product quality, and customer service as key differentiators in a service-deficient market. ## C. Sales to Residents * **Early Revenue Recognition:** Residents in redevelopment projects can buy beyond their **entitled 30% area increase**, enabling pre-launch monetization—e.g., paying market rate for **additional 200 sq. ft.** on a 1,300 sq. ft. entitlement. * **Distinct Sales Channel:** Sales to existing residents are authentic and embedded within approved developments, differing operationally from public project launches. --- # 6. Demand & Market Trends ## A. Key Figures * **Property Registrations:** **36,000+ units** in Mumbai Q3 · **1.5 lakh units** registered in calendar year 2025 (**highest in 14 years**) * Repo Rate: 5.25% (25 bps cut) creating accommodative monetary conditions ## B. Buyer Sentiment * **Sustained Demand Momentum:** Real estate sector extends **three-year growth run**, supported by resilient domestic consumption and rising disposable incomes, with Raymond Realty well-positioned to benefit. * **Improved Affordability:** Monetary easing bolsters home loan affordability and strengthens buyer sentiment, particularly for large-ticket housing purchases. * **Confidence in Mumbai:** Strong homeowner confidence persists in Mumbai, with healthy demand appetite expected to continue into FY '27. ## C. Flight to Quality * **Branded Developers Gain Share:** A structural shift toward quality, transparency, and reliability is driving a decisive **flight to quality**, favoring established developers. * **Premium Segment Strength:** Surge in end-user demand, especially in premium residential segments, reflects deep-seated buyer confidence in Mumbai’s long-term fundamentals. * **No Geographic Diversification Planned:** Expansion remains focused solely on Mumbai, as the market offers ample growth runway without need for entry into cities like Hyderabad or Bangalore. ## D. Mumbai Market Strength * **Record Market Volume:** Despite a high-base dip in October, Q3 registrations reflect robust underlying demand, culminating in a 14-year high for annual property registrations. * **Strategic Focus on Core Market:** Company affirms deep commitment to Mumbai, citing strong pricing discipline, volume potential, and favorable risk-adjusted returns for multi-year growth planning. --- # 7. Risks & Regulatory Factors ## A. Accounting Standard Impact * **Headline:** Capital allocation follows a disciplined, multi-layered risk assessment framework covering regulatory, title, zoning, and execution risks prior to project approval. * **Headline:** Post-demerger margin compression reflects **realistic allocation of previously shared costs**, resulting in more accurate but lower EBITDA versus pre-demerger levels. * **Headline:** New JDA accounting rules record **rehab units as revenue at a 5% presumptive margin**, creating a non-cash revenue stream that dilutes reported margins despite **18%–20% actual project returns**. ## B. Market Concentration * **Headline:** Potential investor base may be constrained as **mutual funds and DIIs are restricted from investing in non-Nifty stocks**, limiting passive inflows until index inclusion. * **Headline:** Recent labor law changes pose **negligible risk** due to the company’s short operating history (~5–6 years), avoiding legacy liabilities faced by older firms. --- # 8. Guidance & Outlook ## A. Key Figures * **Revenue & Profit Growth Guidance:** **20%** YoY growth targeted for FY26 (top line and bottom line) * **EBITDA Margin Guidance:** **17%–20%** for FY26, with expectation to deliver **close to 20%** * **Long-Term EBITDA Margin Target:** **20%** expected by FY27 * **Effective Tax Rate:** **25%** assumed for FY26 (factoring in capital gains) ## B. FY26 Targets * **Confident Growth Trajectory:** On track to achieve **20% growth** in pre-sales and financial metrics, supported by resilient domestic demand and favorable macro conditions. * **Margin Rebound in Progress:** Near-term margin pressure from JDA project ramp-up is transitory; revenue recognition timing and rehab cost accounting are expected to normalize, supporting margin recovery. * **Guidance Clarity:** The **15%–16% margin range** was a narrow, hypothetical view excluding other income and allocations—**not the official guidance**, which remains **17%–20%**. ## C. Long-Term Margin Goal * **Path to 20% Margins:** Structural progression toward **20% EBITDA margin** by FY27 as projects mature and revenue recognition accelerates, despite land and shared costs. * **Sustainable Margin Profile:** Business model remains on track for **18%–20% average margins**, with current dilution being temporary and project-phase dependent.