Raymond Realty’s first quarter reports a significant surge in pre-sales and revenue, but profit margins come under pressure due to rising costs, signalling a cautious yet optimistic outlook for FY27.
Raymond Realty reported a softer first quarter even as demand and bookings remained strong, with net profit slipping 18.6% year on year to ₹13.43 crore for the quarter ended June 2026. Business Standard said the decline came despite higher sales, because costs rose more quickly than revenue and profit-before-tax margins narrowed from 5.4% a year earlier to 2.8%.
Revenue from operations climbed 38.41% to ₹526.67 crore, but total expenses increased 40.53% to ₹520.54 crore. The biggest driver was a 62.27% jump in land, property development and construction costs to ₹413.86 crore. Even so, earnings before interest, tax, depreciation and amortisation rose 70% to ₹70 crore, lifting the EBITDA margin to 13% from 11% in the same quarter last year, and the company said it remained on track to deliver a 17% to 19% EBITDA margin for FY27.
The underlying sales picture looked stronger. According to reports by Business Standard and The Economic Times’ real estate desk, pre-sales reached ₹700 crore in the quarter, up 129% from ₹306 crore a year earlier, even though Raymond Realty did not launch a new residential project during the period. Collections rose 47% to ₹550 crore, supported by its existing pipeline across the Mumbai Metropolitan Region. Managing director and chief executive Harmohan Sahni said the quarter reflected “sustained homebuyer confidence” and the company’s “disciplined, asset-light joint development agreement strategy” in prime micro-markets.
Raymond Realty said its total portfolio has a gross development value of ₹52,000 crore across the Mumbai Metropolitan Region. As of June 2026, net debt stood at about ₹824 crore to ₹827 crore, with a debt-to-equity ratio of 0.7 times, below its internal ceiling of 1 time. The company said it had a liquidity buffer of about ₹270 crore to ₹271 crore and was fully funded for the next year of construction spending. For FY27, it is targeting 20% growth in both pre-sales and revenue and a 20% return on capital employed.
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