This article first appeared on GuruFocus .
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Pre-sales (Bookings):INR 432 crores, up 147% year-over-year.
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Collections:INR 336 crores, up 76% year-over-year.
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Net Operating Cash Flows:INR 81 crores in Q1 FY27.
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Revenue:INR 318 crores, compared with INR 102 crores in the prior-year quarter.
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Adjusted EBITDA:INR 150 crores, versus INR 25 crores in the previous year.
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Profit After Tax:INR 97 crores, compared with INR 12 crores in the corresponding quarter last year.
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Net Debt to Equity:0.29 times.
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Unrecognized Revenue Balance:INR 3,825 crores as of quarter-end.
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Business Development:Added projects with an aggregate gross development value of approximately INR 2,600 crores.
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Guidance:FY27 bookings growth of 35%-40% over the previous year, business development of INR 4,000-5,000 crores, and EBITDA margins on new sales in the range of 22%-25%.
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Release Date: August 07, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Pre-sales grew 147% year-on-year to INR 432 crores, marking the highest quarterly GDV booked in RBD.
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Collections grew 76% year-on-year to INR 336 crores, with net operating cash flows of INR 81 crores in Q1 FY27.
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Credit rating upgraded to AA with a stable outlook by India Ratings, enhancing financial flexibility.
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Added projects with an aggregate GDV of approximately INR 2,600 crores, including a redevelopment project in Goregaon, Mumbai.
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Strong launch pipeline with six projects planned, targeting INR 3,000-3,500 crores in fresh supply, and guidance for 35%-40% bookings growth for FY27.
Negative Points
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Revenue recognition remains sporadic and approval-linked, making it difficult to provide precise annual guidance.
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Net debt to equity increased to 0.29 times as the company continues to invest for growth, though still within comfort levels.
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Operating cash flow generation appears to be flattening over the last two years, with Q1 OCF of INR 81 crores in line with a targeted INR 400-500 crores for the year.
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Labor costs are on the uptick due to high construction activity, though not currently impacting project profitability.
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Price appreciation in the real estate market is expected to moderate, reducing reliance on price hikes for underwriting new projects.
Q & A Highlights
Q: What drove the strong bookings growth in Q1 FY27, and is the underlying demand in core markets like Gujarat and Bangalore strong enough to sustain this momentum? A: Priyansh Kapoor, CEO & MD, attributed the 147% YoY growth in pre-sales to a combination of strong market demand and the success of specific projects like Aquacity in Ahmedabad. He confirmed that underlying demand remains "quite strong" and that markets are responding well to the company's offerings, providing confidence for sustained performance.
Q: Can you provide details on the launch pipeline for the remainder of FY27 and the expected GDV? A: Priyansh Kapoor, CEO & MD, guided for INR 3,000-3,500 crores of fresh supply to be launched in the market. This will come from approximately six projects: one in Ahmedabad, three in Bengaluru, and two in Mumbai. Some projects may only bring specific phases to market rather than the full inventory.
Q: What is the expected timeline for converting the INR 3,800 crores of unrecognized revenue into reported revenue, and what is the normalized EBITDA margin profile? A: Priyansh Kapoor, CEO & MD, stated that the unrecognized revenue will be recognized over the next four years, with plotted projects typically recognizing over 2-3 years and high-rise projects upon receiving Occupation Certificates (OCs) in about four years. He reiterated the company's guidance of 22%-25% EBITDA margins on a portfolio level, noting that JD projects are on the lower end and outright projects on the higher end of this range.
Q: What is the guidance for operating cash flow (OCF) generation for FY27, and how should investors interpret the Q1 OCF of INR 81 crores? A: Priyansh Kapoor, CEO & MD, reaffirmed the target of INR 400-500 crores of OCF for the full year. He explained that Q1's OCF is in line with expectations, as the company is consciously ramping up construction outflows. The OCF of INR 81 crores on collections of INR 336 crores is consistent with the guided margin profile, indicating healthy execution and project progress.
Q: What is the company's strategy for business development (BD) and capital deployment, particularly in the MMR region? A: Priyansh Kapoor, CEO & MD, stated that the company is bullish on the Mumbai market and has over INR 4,000 crores of GDV already logged there. While Mumbai may grow faster in terms of GDV addition, the company remains focused on Gujarat and Bengaluru. For FY27, the BD target is INR 4,000-5,000 crores, with land outflows expected to be in the range of INR 600-900 crores, funded by operating cash flows and debt headroom.
Q: What is the company's comfortable leverage range, and how does it plan to balance capital deployment with maintaining a healthy balance sheet? A: Priyansh Kapoor, CEO & MD, stated that the company is comfortable with a 1:1 debt-to-equity ratio, up from the current 0.29 times. The company expects a gradual increase in debt as part of its conscious strategy to expand the portfolio, and it sees this threshold as very comfortable given its strong OCF generation and revenue recognition trajectory.
Q: How should investors view the exceptionally high adjusted EBITDA margin of ~48% in Q1 FY27? Is this sustainable? A: Priyansh Kapoor, CEO & MD, clarified that the high margin was driven by the revenue recognition of the Orchards project in Bengaluru, which performed "way above" guidance. He advised investors to view this as a project-specific outperformance and to factor in a company-average EBITDA margin of around 25% for a normalized view.
Q: What are the company's long-term growth plans, and how does it intend to scale to become a national player? A: Priyansh Kapoor, CEO & MD, outlined a 4-5 year plan to grow at a 25%-30% CAGR. The company now has a diversified inventory across all three markets (Mumbai, Bangalore, and Ahmedabad), which positions it well for scale. He noted that achieving this phase of growth successfully will make the transition to a large national developer incrementally easier, without compromising financial discipline.
Q: What is the company's view on price appreciation in the real estate market, and where are we in the current cycle? A: Priyansh Kapoor, CEO & MD, believes the rapid price appreciation seen in the last 3-4 years is stabilizing and will moderate going forward. He noted that the company's underwriting strategy does not depend on large price hikes. He views the current cycle as one of stabilizing demand, but with strong structural demand in India's large residential markets, there remains significant opportunity for organized developers to grow.
Q: What were the incremental efforts taken to drive sustenance sales, and can we expect a similar run rate going forward? A: Priyansh Kapoor, CEO & MD, highlighted investments in strengthening sales teams across all three cities, enhancing channel partner reach, and improving marketing efforts. These efforts have started to yield results, and it is possible that sustenance sales may contribute slightly more than originally aimed for, providing greater predictability to quarterly performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
