Raymond Realty Ltd Q1 FY2027 Concall Summary

Key Takeaways

• Booking value up 129% YoY to ₹700 crores, driven by sustained homebuyer confidence in the Raymond Realty brand and execution track record built over six years.
• JDA engine now the dominant model: 64% of Q1 presales came from asset-light JDA projects, and JDA GDV (₹27,000 crores, 52% of total) has overtaken owned land GDV.
• FY27 guidance reaffirmed with confidence: 17–19% EBITDA margin, 20%+ presales growth, 20%+ revenue growth, and 20%+ ROCE all committed.
• Parel JDA is the headline new win: ₹8,500 crores GDV in South Bombay, marking strategic entry into the premium housing market, with launch approximately 18 months away.
• What to watch next quarter: Whether JDA margins begin their promised ramp as projects cross revenue recognition thresholds, and whether the two Mahim launches land on schedule in Q3 and Q4.

JDA Model & Portfolio

• Asset-light scale: JDA projects now span 8 projects with ₹27,000 crores combined revenue potential, overtaking owned land GDV at 52% of total portfolio.
• Capital efficiency: JDA wins on return on capital because land is not paid for upfront; typically 10–15% of land value is paid as deposit, with bulk of capital going to approvals and construction.
• Launch performance: Of 4 launched JDA projects with ₹11,500 crores revenue potential, cumulative sales reached ₹2,900 crores and collections approximately ₹692 crores, despite most projects being at nascent excavation stage except Bandra East.
• Margin trajectory: JDA projects currently below 20% margin because three of four launched JDAs are at very initial stage; profitability builds over project cycle as prices increase after launch-stage inventory is sold. By FY28, JDA margin profile will be higher as projects mature.
• Control philosophy: Management insists on absolute control over JDA execution because the brand promise to the consumer must be delivered.

Sahni: "We need to have absolute control. We will do everything that is needed for the deal... we are putting our brand on the product and we are making a promise to the ultimate consumer. Now that promise needs to be delivered, otherwise the brand itself gets spoiled."

Parel & South Bombay Entry

• Flagship JDA secured: Parel project signed during Q1 FY27 with estimated GDV of ₹8,500 crores, marking strategic foray into South Bombay's premium housing market; described as historic for the company.
• Product positioning: Combination of Address by GS and Invictus by GS; no TenX; reasonable-sized apartments on the upper side.
• Launch timeline: Approximately 18 months away from hitting the market; planning and approval process typically follows roughly 18-month cycle.
• Bombay thesis: Management's personal hypothesis is that Bombay will be the best city to live in the country within a few years given infrastructure work.

Sahni: "My personal hypothesis is that Bombay is going to be the best city to live in the country within few years itself."

Thane & Geographic Mix

• Thane monetization ahead of curve: Thane land started monetizing in 2019, ahead of rest of MMR; ₹9,400 crores sold and ₹7,460 crores collected against ₹16,500 crores potential; 11 towers and almost 4,000 homes delivered.
• Mix shift underway: 64% of Q1 presales came from JDA models, with almost two-thirds of sales now from larger MMR and one-third from Thane. As more MMR projects launch, Thane's percentage share may drop while absolute numbers may remain close to current levels.
• Geographic focus: For the foreseeable future, focused on MMR; studying Pune for about two years but nothing met financial criteria; no plans to venture outside Maharashtra.
• Policy tailwind: 2034 DCR provides maximum clarity; Maharashtra government is pro-growth and pro-development; physical assets doing well.

Margins & Profitability

• Q1 margin expansion: EBITDA margin of 13% (vs 11% in Q1 FY26) achieved despite launching four projects in Q4 FY26, many in March at the fag end of the year.
• Normalization path: Current-year initial profitability reflects upfront marketing and construction setup costs; margins will progressively normalize over subsequent quarters as project construction crosses revenue recognition thresholds.
• FY27 commitment: Company is firmly and completely on track to achieve full-year EBITDA margin guidance of 17% to 19%.
• Longer-term ambition: Desire is to be "as close to 20% as possible and maintain that"; current year margin profile 17–19%.
• ROCE track record: For the last six years, ROCE has been upward of 25%; going forward, management commits to 20% or upward.

Sahni: "For the last six years, if you see, our ROCE has been upward of 25%. And going forward we are making a commitment of 20% is what we will do and we are very, very confident that we will achieve that."

Debt, Capital & Cash Flow

• Cost of debt: Blended cost stable at 9.6%, which management calls "very, very competitive for a real estate company." All debt is going toward growth (JDAs, construction), not expenses or idle capital assets.
• Debt trajectory: Debt levels may not moderate for another year or so because the company continues to "aggressively grow"; once projects reach steady state and throw off cash, debt will start to moderate.
• Debt discipline: Internal target of not going beyond 1:1 debt-to-equity; current 0.7x provides headroom for future expansion; long-term rolling plan shows no significant danger of exceeding 1:1.
• Capital alternatives: AIFs approaching to participate at SPV level; if debt approaches 1:1, can deploy that strategy; equity bucket always available but last resort with no current plans.
• Interest cost run-rate: Q2–Q4 interest cost expected to be lower than Q1; full year ₹100–120 crores. Management will work out exact number and put out a disclosure.
• Growth vs. dilution: Management prefers debt over equity dilution for growth capital.

Sahni: "If dilute equity, which that is going to be more detrimental to you, any shareholder, not just you. So obviously the first preference is that for growth whatever capital is needed, you go for the lower cost and that's why debt really needs, gets contracted."

Demand, Launches & Growth Posture

• Demand environment: No softness seen in any projects; Q1 presales beat internal projections. Demand looks pretty strong in all launched projects; market continues to remain supportive in all micro-markets.
• Home Fest: Annual monsoon-season event (three years running) to drive footfalls during a lean period, not a response to softness. Roughly 20% of walk-ins convert immediately; remaining 80% convert over the next two months.
• FY27 launch calendar: Two Mahim projects launching this year: first at roughly ₹2,500 crores GDV in Q3 (November–December), second at ₹2,000–₹2,200 crores GDV in Q4 (February–March). By end of FY27, six JDAs will have been launched out of total eight.
• Work visibility: Total GDV provides 6–7 years of growth visibility; company will have work for at least 7–8 years going forward.
• Growth posture: Will continue to grow while market tailwinds exist; cyclical business, timing of cycle turn unknown.

Sahni: "We are in a cyclical business, and we don't know the timing of when the cycle will turn, but just now things are going well, so naturally the best time to grow is when you have tailwinds."

Guidance & Commitments

Key Metrics