Raymond Realty LtdQ1 FY27
Raymond Realty Ltd Q1 FY27 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹565P/E: 12.7Market Cap: ₹3.8K CrSector: Realty
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
Yes
Order
Yes
Capex
Yes
3 of 5 growth signals are positive.
Full analysisRevenue guidance
Category 2- →Committed to delivering presales growth of upward of 20% year-on-year for FY27.
- →Revenue growth on the P&L expected to be at least 20% year-on-year.
- →EBITDA margin guidance between 17% and 19% for FY27.
- →Return on Capital Employed (ROCE) targeted at 20% or higher.
- →Strong multi-year growth visibility with total GDV at INR 52,000 crores, covering 6-7 years.
- →Joint Development Agreements (JDAs) now constitute 52% of GDV, showing strong pipeline momentum.
- →Two major project launches (Mahim projects) with combined GDV around INR 4,500 crores planned for the year.
- →Execution focus on projects launched in Q4 FY26 to drive growth and meet targets.
- →Market demand remains strong, with Q1 actual presales exceeding expectations.
Margin guidance
Category 3- →**Presales Growth**: Expected to grow upward of 20% year-on-year for FY27.
- →**Revenue Growth**: Minimum 20% year-on-year growth in total turnover for FY27.
- →**EBITDA Margin**: Guidance between 17% and 19% for FY27; on track to achieve this range.
- →**EBITDA Growth**: Significant growth with 70% YoY increase in Q1 FY27 and improving margins.
- →**Return on Capital Employed (ROCE)**: Targeted at 20% or higher; historically has been above 25% for the past six years.
- →**Net Profit (PAT)**: No formal guidance provided yet due to variability in interest costs; management to share details upon request.
- →**Interest Cost**: Expected to be around INR 100-120 crores with debt maintained at disciplined levels (net debt-to-equity ratio at 0.7x).
- →**Cash Flow**: Strong collection growth (47% YoY) supporting cash flow; focus on financial discipline with manageable debt.
Fundraise plans
Yes- →Current borrowings have increased from INR380 crores to INR1,097 crores year-on-year, primarily for project expansion and construction finance, not for corporate expenses.
- →The company maintains a strict internal policy to keep debt-to-equity ratio below 1:1.
- →There is sufficient headroom with a current net debt-to-equity ratio of 0.7 and liquidity buffer of INR271 crores.
- →No immediate plans for equity dilution; equity raise would be a last resort due to cost considerations.
- →The company is open to raising capital via Alternative Investment Funds (AIFs) at the Special Purpose Vehicle (SPV) level, if debt approaches the 1:1 threshold.
- →Debt cost is stable and competitive at about 9.6%.
- →Overall, growth will be funded through a mix of project-level debt, collections, and potential AIF participation; equity fundraising is not currently planned.
Order book
Yes- →Raymond Realty Limited has a significant orderbook with strong long-term growth visibility across prime Mumbai Metropolitan Region (MMR) micro-markets.
- →Active development includes 65 acres of the Thane land parcel, constituting about 6.7 million sq.ft. of RERA carpet area with INR 16,500 crores revenue potential.
- →Out of this, INR 9,400 crores worth of stock is already sold with INR 7,460 crores collected as cash.
- →Total unsold GDV from launched projects is approx. INR 15,700 crores.
- →Additionally, there is unlaunched GDV of about INR 24,000 crores across various micro-markets.
- →The pipeline also includes upcoming projects such as two Mahim projects with combined GDV roughly INR 4,600 crores and a Parel project with GDV INR 8,500 crores (expected launch in ~18 months).
- →The company is focused on execution of these launches while maintaining pre-sales growth guidance of 20%+ year-on-year.
Capex plans
Yes- →Raymond Realty has incorporated a new SPV, TenX Mahalakshmi Limited, in anticipation of new projects, indicating upcoming investments.
- →The company is focusing on launching two Mahim projects this year with GDVs of approximately INR 2,500 crores and INR 2,100-2,200 crores.
- →Expansion is backed by disciplined capital allocation with all borrowings directed toward project construction and joint development agreements (JDAs), not for corporate expenses.
- →The asset-light JDA strategy is a key growth driver, with eight JDAs totaling INR 27,000 crores GDV, showing continued strategic capital deployment focused on capital-efficient models.
- →Raymond Realty maintains a net debt-to-equity ratio below 1:1, signaling prudent leverage to fund expansion.
- →Potential for incremental capital from Alternate Investment Funds (AIFs) at the SPV level to further support growth without diluting equity.
- →No current plans for equity raises; debt remains the primary funding source for ongoing and future projects.
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Margin guidance
Category 3- →**Presales Growth**: Expected to grow upward of 20% year-on-year for FY27.
- →**Revenue Growth**: Minimum 20% year-on-year growth in total turnover for FY27.
- →**EBITDA Margin**: Guidance between 17% and 19% for FY27; on track to achieve this range.
- →**EBITDA Growth**: Significant growth with 70% YoY increase in Q1 FY27 and improving margins.
- →**Return on Capital Employed (ROCE)**: Targeted at 20% or higher; historically has been above 25% for the past six years.
- →**Net Profit (PAT)**: No formal guidance provided yet due to variability in interest costs; management to share details upon request.
- →**Interest Cost**: Expected to be around INR 100-120 crores with debt maintained at disciplined levels (net debt-to-equity ratio at 0.7x).
- →**Cash Flow**: Strong collection growth (47% YoY) supporting cash flow; focus on financial discipline with manageable debt.
Order book
Yes- →Raymond Realty Limited has a significant orderbook with strong long-term growth visibility across prime Mumbai Metropolitan Region (MMR) micro-markets.
- →Active development includes 65 acres of the Thane land parcel, constituting about 6.7 million sq.ft. of RERA carpet area with INR 16,500 crores revenue potential.
- →Out of this, INR 9,400 crores worth of stock is already sold with INR 7,460 crores collected as cash.
- →Total unsold GDV from launched projects is approx. INR 15,700 crores.
- →Additionally, there is unlaunched GDV of about INR 24,000 crores across various micro-markets.
- →The pipeline also includes upcoming projects such as two Mahim projects with combined GDV roughly INR 4,600 crores and a Parel project with GDV INR 8,500 crores (expected launch in ~18 months).
- →The company is focused on execution of these launches while maintaining pre-sales growth guidance of 20%+ year-on-year.
How does Raymond Realty Ltd rank vs peers in Realty?
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