The Mumbai-based developer reported INR 3,447 crore in 9M FY26 pre-sales but revised its annual collection and sales guidance downward due to regulatory delays. Investors are monitoring the company’s improved debt-to-equity ratio following its IPO equity infusion earlier this fiscal year.
On February 6, 2026, the Board of Directors of Kalpataru Limited (NSE: KALPATARU) approved raising up to INR 350 crore through unlisted Non-Convertible Debentures (NCDs) via private placement. This decision follows the release of the company’s Q3 FY26 results, which showed a consolidated revenue of INR 505 crore and a net loss of INR 67 crore for the quarter. The company’s financial performance remains influenced by its transition to the Project Completion Method (PCM) for revenue recognition on newer projects, where revenue is only recognized upon obtaining an Occupation Certificate while marketing and overhead expenses are charged immediately to the profit and loss statement.
Latest Quarterly Results and Highlights
For the third quarter ended December 31, 2025, Kalpataru Limited reported pre-sales of INR 870 crore, representing a 14% year-over-year decline. However, sales collections reached INR 1,101 crore, a 17% increase compared to Q3 FY25. The average realization for the quarter stood at INR 12,939 per square foot. On a standalone basis, the company reported a total income of INR 97.61 crore and a comprehensive income of INR 1.05 crore for the quarter after tax.
Nine-Month Performance and Growth Context
The cumulative performance for the first nine months of FY26 shows a robust trajectory, with pre-sales reaching INR 3,447 crore, a 23% year-over-year increase. Total collections for the 9M FY26 period were INR 3,409 crore, reflecting 30% growth over the same period in the previous year. The company successfully received Occupation Certificates for approximately 3.52 million square feet (msf) during these nine months, significantly higher than the 1.90 msf recorded in the same period of FY25.
Market Capitalization and Robust Capital Strength
The company’s equity base stood at INR 3,887 crore as of December 31, 2025. Following an INR 1,590 crore IPO in the first half of FY26, the company utilized INR 1,192.5 crore for debt repayment. Consequently, net debt decreased to INR 8,269 crore, down from INR 9,310 crore in March 2025. The Net Debt to Equity ratio showed substantial improvement, dropping to 2.1x from 3.8x in March 2025 and 10.1x in March 2024.
Where Does Kalpataru Limited Stand Today?
Kalpataru Limited is among the top five developers in the Mumbai Metropolitan Region (MMR) and maintains a 56-year legacy in the Indian real estate market. Its business model is heavily focused on the residential segment, which constitutes 95% of its portfolio. The company’s operational scale includes 83 completed projects totaling approximately 23.3 msf and an ongoing/planned pipeline of 29 projects totaling roughly 41.2 msf.
Performance by Business Vertical and Segment Updates
• Residential Vertical: Comprises the core growth engine, with 20 ongoing projects across MMR, Pune, Hyderabad, and Nagpur.
• Annuity Portfolio: Generated gross rental income of INR 51 crore in Q3 FY26 from three office properties in Mumbai and Pune and one retail mall in Thane.
• Green Developments: The company is a founding member of the Indian Green Building Council (IGBC) and has 39 projects either certified or in the process of certification, including the IGBC Platinum-certified Kalpataru Paramount.
Guidance and Future Outlook
The management has revised its FY26 guidance downward due to delays in regulatory approvals and subsequent postponements of project launches. The updated guidance is as follows:
• Pre-sales Value: Revised to ~INR 7,000 crore (a downward adjustment of 20-22%).
• Collections: Revised to ~INR 5,700 crore (a 10% reduction).
• Net Debt: Targeted at ~INR 7,300 crore by the end of the fiscal year.
Regulatory Milestones and CSR Updates
Strategic progress includes the launch of two towers at Eternia at Kalpataru Parkcity, Thane, in Q3 FY26. In terms of corporate social responsibility, the company’s Mobile Medical Unit in Karjat has served 3,769 beneficiaries, and its beach clean-up drives have removed over 17,000 kg of plastic waste in the 9M FY26 period.