Keystone Realtors Ltd (NSE: RUSTOMJEE) Q3 2026 Earnings Call dated Feb. 04, 2026
Corporate Participants:
Boman Irani — Chairman and Managing Director
Chandresh Mehta — Executive Director
Sajal Gupta — Group CFO and Head Corporate Strategy
Analysts:
Pritesh Sheth — Analyst
Sumit Kumar — Analyst
Krish Kedia — Analyst
Ritwik Sheth — Analyst
Abhir Pandit — Analyst
Presentation:
operator
Ladies and gentlemen. Good day and welcome to Keystone Realtors Limited Q3FY26 earnings conference call hosted by Access Capital Limited. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Pritesh Seth from Access Capital Limited. Thank you. And over to you, sir.
Pritesh Sheth — Analyst
Thank you. Palak. Good evening everyone and welcome to the call from the management of Keystone Realtors. We have with us Mr. Baman Irani, Chairman and Managing Director, Mr. Chandrash Mehta, the Executive Director, Mr. Pasi Chaudhary, Executive Director and Mr. Sajal Gupta, the Group CFO. I’ll hand out the call now to the management for the initial comments and then we can open the floor for question and answer. Over to you, BAM sir.
Boman Irani — Chairman and Managing Director
Thank you. Good evening everyone and welcome to our Q3FY26 earnings conference call. I’m Bamin Irani, CMD, Keystone Realtors Limited. I extend my heartfelt gratitude to all of you for joining us today. I’m pleased to share our achievements for this third quarter of FY26 which showcases our continuous growth for the Q3 FY26. Our pre sales performance has been encouraging and we have achieved 837crores of pre sales. Taking the total of pre sales for the year to date FY 26 to 2676 crores. That’s 2,676 crores. That’s a 23% year on year growth. On a year to date basis.
Our presales are tracking broadly in line with expectations supporting visibility for the next phase of our revenue growth. The demand trends we see reflect strategic choices that we have made in BD and launches and the continued confidence customers place in our brand. Rustamji. Of course, keeping in mind the quality of our developments as we move forward, our focus remains on delivering value to our customers. Continue to strengthen our brand and execute our strategy with discipline and purpose. On our project launches, we’ve launched one more project in the Q3 with an estimated GDV of 919 crores.
This takes our total to 5 launches this year with a total GDV of 5835 crores for year to date FY26. With this we’ve achieved 83% of our full year launch target. We also see a healthy pipeline of upcoming launches which supports our continued momentum. Further, we are improving continuously our go to market timelines. Once the development agreement is signed, a project typically moves to launch within almost 12 months. This year we have launched multiple projects within these 12 months from the date of DA. Just to quote a few Rustamji Stella took 8 months to go from DA to launch, Rustamji Panorama took 11 months to go from DA to launch, Crescent took only 10 months and Rustamji Preve 12 months.
This enables us to accelerate our launches and strengthen our ongoing project pipeline. We’ve continued to build a strong momentum across our BD business development initiatives. In Q3FY26 we have added another project which is part of our Lokhandwala cluster. With this, the total estimated GDV of our Lokhanwala cluster would be approximately INR 3,900 crores. To summarize, we’ve added four projects totally in the 3/4 of FY26 having an estimated GDV of 8,650 crores. Notably, that’s about 1.44 times our annual guidance. We’ve already crossed our annual guidance by about 1.44 times. This reflects the effectiveness of our Asset Light Capital efficient model and our continuous focus on redevelopment within Mumbai MMR area.
Financially we continue to maintain strict thresholds with upfront Equity Capital Limited to 10% of total project GDV up to launch and this allows us a margin expansion by underwriting projects with a Gross margin of 35% driven of course by the location and led by value transformation Post development Of these projects I would like to highlight our increasing focus on cluster redevelopment. Cluster redevelopment allows us to create gated communities. Gated communities are probably the most sought after locations or housing for people to move into because they provide a whole host of advantages including larger layouts, better communities etc.
This is a complex model but it offers great meaningful long term value. It allows us to drive efficiencies at scale and as mentioned earlier enhances the livability for our home seekers or home buyers therein. We continue to build communities and these communities are far larger seen in the gated communities which come out of the cluster redevelopments. We made remarkable progress in this area and we’ve added several large scale cluster redevelopment projects including Lokhanwala, GTB Nagar, Dindoshi and Malad West. These projects firmly position Rustamji to lead the next wave of Mumbai’s urban transformation. Built on trust, design excellence and upliftment of the communities, Rusamji is a preferred partner and now not only with societies but also with MADA to carry out large cluster redevelopments.
Our additions are fully aligned with our vision to consolidate our leadership in the redevelopment space across MMR and they enhance our growth and visibility and strengthen our long term position in these high potential micro markets. We are steadily increasing our focus on commercial real estate segment as a natural extension of our development capabilities and balance sheet strength. The journey has commenced with the successful launch of 3315 at Bandra West. This is a marquee commercial project development with an estimated gdp of about 950 crores of which 18% have already been sold off the launched inventory. Building on the momentum, we are actively working towards another commercial Launch in the first half of FY27.
This will be at Pravadevi with an estimated GDV of about 1150 crores. Additionally, construction activity at our Thane commercial project is expected to commence again in FY27 alongside the several commercial acquisition opportunities that we are actively evaluating. Thane as we are all aware is a large residential township and and in this project we will be creating commercial development thereby making the lives of our consumers much easier with a walk to work concept from office to home and the other way around. Since FY23 we’ve added about 26 projects with an estimated GDP of 26,400 crores. 22 of these are redevelopment projects, 21 of them are in the emerging premium and premium housing segments which as I mentioned earlier are the largest segment to serve in the MMR region.
This aligns with our strategic focus. This captures value through urban consolidation and we maintain healthy volumes in high demand mid income categories. These strategic additions underline our ongoing commitment towards our growth and leadership. I remain confident in our ability to consistently take on and successfully deliver new projects with the same focus and discipline that define us with our strong and diversified portfolio across all micro markets and price segments from mass market to luxury. Our strategy ensures resilience and sustainable growth across market cycles. Project additions and launches, pre sales and collections have allowed us to focus a lot on completions as well.
I’m pleased to announce that y To date FY26 we’ve completed three projects covering approximately 1.98 million square feet. These include Rustamji Bellevue which is a plotted development, Paramount F Wing which is a SRA redevelopment and Rustamji Crown which is at Prabhadevi where we’ve completed Tower C and as we are aware Tower A and B had been completed earlier last year. These completions also demonstrate our operational efficiency and dedication to delivering quality projects in time. Our performance clearly highlights our strength, our product portfolio and the resilience of the overall strategy that we have undertaken. With a healthy balance sheet, strong capitalization, disciplined execution, we believe the company is well positioned to pursue emerging opportunities and we will continue to create sustainable value for all you stakeholders.
We remain focused on maintaining this operating momentum while driving consistent and profitable growth. You’ll be happy to note that we have almost doubled our market share in this year. Why? To date FY26 our OCF stands at 229 crores. This again reflects our continued focus on disciplined execution and prudent cash management. Our construction spend has risen from INR 609 crores year to date FY25 to 718 crores in the year to date FY26 reflecting an 18% year on year growth so far. Moving to our consolidated financial performance, we have reported revenue from operations of 266 crores for Q3FY26 and 1039 crores for year to date FY26.
Our gross margin for year to date FY26 is 35% vis a vis 32% for year to date FY25. On our liquidity front also, our position remains very Strong. As of 31st December 25th, our gross debt is at 625 crores, translating to a gross debt to equity ratio of 0.221. This is very well within our guidance range. We’ve ended the quarter with free cash of about 717 crores. This again underscores our healthy liquidity position. We remain net cash positive status and this reflects the strength and flexibility of our balance sheet. As you are aware, in addition to Ichra’s existing rate of A with a stable outlook, India Ratings has also assigned to us a credit rating of A with a positive outlook.
Again a strong endorsement of our robust financial profile, strong project pipeline and execution through a diligent and disciplined approach. As we move through FY26, I’m proud to share the meaningful progress we’ve made even in our ESG journey. We have initiated and completed the pre assessment for GREST Rating System with an external consultant. Our projects Rustamji Bellevue located at Kasara have received the Net Zero Carbon Award in Design for the Clubhouse one and two and Allied Utilities from IGBC at the IGBC Congress held in Mumbai. The ESG audits were successfully conducted at our project sites in MMR and Thane.
Our certifications for ISO 14001 and ISO 45001 are in progress. It is heartening for me to highlight that we have received a Green Champion Award Developer Leading in Green Homes Movement in India by IGVC Leadership Awards 2025 our project Rustamji Crown has received the best residential project in Luxury segment in Tier 1 at the CREDAI Awards. Rustamji Seasons has received the best gated community project in residential by Kraday and Bella Rustamji Bella has received the second best award for the mixed development project in Tier one again by credai. That makes it three awards given by the CREDAI which is the body for real estate developers across the country.
We remain fully committed to creating long term value for you stakeholders while continuing to strengthen our position as a trusted and forward looking developer. The market environment remains favorable. Our strategic clarity, execution strength and financial discipline makes us well prepared to capture the next wave of growth and expansion. At Rustumji. We’re not just building homes but we are shaping thriving, sustainable and future ready communities. I once again thank you for your trust, support and continued partnership. Look forward to questions going forward now.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may please press STAR and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sumit Kumar from JM Financial Institutional securities. Please go ahead.
Sumit Kumar
Hi, good afternoon. Thanks for the opportunity and congratulations on a good set of numbers. My first question is on the launch pipeline and the pre sales guidance going forward. So what is the Launch pipeline for 4Q and where we are in terms of readiness of these launches and what would be your guidance for the pre sales growth for FY27 or FY26 given that we have added quite a few high value projects this year.
Boman Irani
Hi. Hi Neil, thank you for that question. Hi Sumit, thank you for that question. Look, we are very enthused by the kind of support we have received in all the launches so far and Q4 is also going to see a launch of a project of ours where we received RERA clearances etc. We’re just in the process of getting the entire layout readied for the launch. This is a project at Sivari that that is being launched and SIVI is a very hot destination today given the infrastructure growth in that area. While I don’t Want to give any guidance for FY27? I can tell you our growth trajectory will continue and we will.
We will see a 25% and as usual we will stay. We will stay, you know, cautious in our. In our forecast. But we’ll. We’ll project a 25% growth year on year going forward. And you know on our FY26 our pre sales guidance of 4000 crores is going to be very well achieved. As I mentioned because of sales of one of our projects that we are taking up in this quarter. And you’ll be very happy to hear our results in April.
Sumit Kumar
Sure, that’s helpful. My second question is if you could give us some color on what is the difference between a normal society redevelopment under 37B, 33.7B and what sets apart this sort of cluster redevelopment that happens under I think 3309. So what are the key benefits that are available apart from you know that it’s a larger land plot and you can plan a bigger sort of weighted community.
Chandresh Mehta
Hi, Sumit Chandrash here. Just to briefly answer your question. In terms of the difference between 33.7B and cluster development which is 33. 9.
Sumit Kumar
Yeah.
Chandresh Mehta
Yeah. So as you are aware the larger the development. The government of Maharashtra has brought in regulation 33. 9 to ensure that there is an incentive both for the landowners or the societies and also the developer to go in for larger development. This is in line with the growth impetus that the government of Maharashtra is giving to the city and the state. Larger the development gives them an opportunity to give some area or some landmass to. To the community in terms of development of amnes, social infrastructure. And that is why additional incentive is given to the developer and the housing societies.
What’s in it for the housing societies? They are entitled to a larger area compared to 33.7B. And what is in it for the developer? They are entitled to a higher incentive in terms of the free sale area that they get for undertaking larger developments. So it’s a win. Win. All three stakeholders, whether it is the government, it is the existing residents and the developer. All three gain out of this cluster development.
Sumit Kumar
Okay sir, that’s quite helpful. I’ll come back in the queue if I have more questions. Thank you and all the best.
operator
Thank you sir. Ladies and gentlemen, to ask a question please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Krish from Anand Rati. Please go ahead.
Krish Kedia
Thank you for taking my question. Just it’s a good highlight on the demand environment. Like how are you seeing it right now and what do you feel about the demand environment right now?
Boman Irani
Hi. Hi Krish. You know, the demand overall according to us in the MMR region continues to exist. We did see a lot of news articles that said of course the numbers do reflect a reduced sales in terms of volume. But the project that we have launched and we have chosen and where we are seeing, you know, traction taking place are the ones that we are taking up. Our strategy continues to be successful thus far and you know our product launches are seeing a great amount of interest amongst buyers and you will see this continue even in our oncoming launch.
As a matter of happy to state that our commercial did extremely well in Bandra. Our sales of residential 2 projects in Bandra are also seeing great traction. We are awaiting the launch of Sivri which will see again a great amount of buyer interest or has seen a great amount of broker interest and hopefully we’ll see a great amount of buyer interest as well. So as mentioned in the past, it is very important to know where the projects are getting launched and what is the inherent demand in those places. And towards this your company has been data driven and we’ve always been keeping a watchful eye on the happenings in the city and which way the city will expand and how the transportation will kind of assist in making that change.
So we only enter those locations where infrastructure or there’s some other meaningful development taking place. And this has held us in good stead so far. And also the western suburbs continue to be strong. And if you’ve seen our bd, all the cluster developments that I maintained, three of them are in the western suburbs where there’s a great amount of demand that we see even today. And all the data again points towards a strong growing population in these areas. So we are fairly confident of our ongoing projects as well as the future BD that we are doing.
Krish Kedia
Thank you, that’s helpful. And secondly, coming back to cluster development, can you broadly specify how much similar potential can we expect in the near term and what support are you getting from local authorities or the state government to like bank upon similar kind of opportunities we can execute these projects.
Boman Irani
So Chris, there is no specific support that we receive. I think someone’s on the line. Can you all hear me?
operator
Yes sir.
Boman Irani
Okay, so it is, it is just the government stated initiative to take up cluster development so they don’t have standalone buildings with not enough, you know, development. A cluster development gives you larger gardens, more infrastructure, better amenities versus 20,000 square meters versus 2,000 square meter. Also gives the design flexibility available to a developer to be able to create better communities. Towards that. The laws are pretty well set out. You go to a high power committee with your entire presentation. Once they’ve cleared it, more or less the entire process thereafter is almost set out. And you can just move a lot faster when you have a larger layout for development versus having a single building.
Because as you understand storage of material becomes better. Your labor camps are more on ground. People don’t have to travel from far. So from all of these angles a cluster development actually works out much, much better. Because it gives you a larger foot plate, floor plate and amenity plate for even the sales side of it. So great working conditions at the same point of time. Great sales, sales possibilities.
Krish Kedia
Sure. Thank you. That’s all from my side.
Boman Irani
And, and, and you asked a question about the total GDB across these four clusters. We. We are. We are looking at. Sorry, across three clusters. I have the number but just give me a second. Is about 12 and a half thousand crores across all our four cluster developments.
Krish Kedia
Thank you so much. That’s all from my side.
operator
Thank you. Sir. The next question is from the line of Ritvik Seth from one of financial consultants. Please go ahead.
Ritwik Sheth
Yeah. Hi. Good evening sir. So couple of questions from my end. So in one of the slides we have mentioned about finished inventory. What is the GDV of this finished inventory?
Boman Irani
Give me a second for the data please.
Ritwik Sheth
Sure.
Boman Irani
You want to say the next question?
Sajal Gupta
No, I’ll tell you. The total value of the finished inventory is about 220.
Ritwik Sheth
Okay. Okay. Thank you sir. And my second question is related to the OCF. This quarter we have seen a sharp reduction in OCF versus previous quarters. Range of about say about 100 crores per quarter. This quarter is close to 2, 3 crores. So what led to this? And what is the outlook for the SEC Q4 and FY27 on the OCF? If you can just highlight on that.
Sajal Gupta
So Ritwik, you know that we have significantly up our game in terms of the new launches this year. We have already launched five projects with the value of close to about 6,000 odd crores. 5,835 to be precise. Again, this quarter we have a launch pipeline wherein we are talking one more project. As Daman has said that we are ready to go. So there is a significant amount of work which is going on all the new projects. You would appreciate that the year one of the new project, generally our Own experience and our own business plans and our own what we have witnessed that the year one doesn’t contribute much to the OCF and the subsequent start contributing.
So this year, on account of rightfully launching more projects of the higher value thereby increasing our construction spend, increasing our other spend approvals, et cetera, the OCF has been low for this quarter particularly. But I expect it to go up particularly from the second half of the next financial year. Not that it will be at that level but has been the quarter three. But then there should be a significant upwards movement of the OCF in the second half of the next financial year.
Ritwik Sheth
Right? Yeah. So just a follow up on this. Given that H1 also had H1, FY26 also had new launches. Our OCF was relatively stable. So was it that because of higher construction cost in the quarter incurred and other spends were higher on the launch projects was it because of that the OCF was low in this quarter?
Sajal Gupta
Yeah, absolutely. Absolutely. Rightly said. And also the amount of launches are also gone up. If you look at the last year, the whole of a year our total Launch was about 5000 crores. This year in the 9 months the launches has been 5900 crores. Means like the total number of launches. And right at the start of the year we have at the launches there were about 4000 crores worth of launches at the start of the quarter one only. So obviously in the year we have had basically put in a lot of investments. A lot of basically spend on the construction and other allied expenses. And that’s the reason that the OCF has been low particularly for the nine months as well as the three quarters.
Chandresh Mehta
So Krish, let me just correct you. The costs have not gone up. It is the level of activity which has increased that has led to lower ocf.
Ritwik Sheth
Right, right. The construction spends. Right. And just one final question about the bandstand project. Any update or any movement on this?
Boman Irani
Yes, I have. That’s what I was mentioning. That you’ll see a great uplift in the sales volume and value that takes place in the fourth quarter. Because we’ve launched the sales of that one.
Ritwik Sheth
Okay. Oh great. Okay. And sir, what is the launch inventory that we have done?
Boman Irani
You mean what is the bandstand area? Yeah, why don’t we just wait for one quarter. Let me announce the results.
Ritwik Sheth
Okay. Thank you. Launching in Q4.
Boman Irani
Yes. Yes, we. We’ve launched it for sale already. One month has gone by. Yeah.
Ritwik Sheth
Okay. Okay. Great. Great. Sir. All the best. And thank you.
Boman Irani
Thank you. Thank you.
operator
Thank you, sir. Ladies and gentlemen, to ask a question, please press star and one. Now. Participants who wish to ask questions, please press star and one at this time. The next question is from the line of Abhir Pandit from Old Bridge Mutual Fund. Please go ahead.
Abhir Pandit
Hello. Hi sir. Thanks for this opportunity. Sir. I just wanted to understand three questions. Sir. Firstly would be the time period of the handover for the forthcoming projects. On an average. Hello.
Boman Irani
Sorry, you’re talking about construction. And then.
Abhir Pandit
Yes, yes, handover. Yes.
Boman Irani
Complete any projects in mind you want to ask about? Because I’ll tell you.
Abhir Pandit
No, sir, across. No, across the. Normally. Normally I wanted to understand.
Sajal Gupta
So abhi, as we told in our previous conference calls also that most of the project in the pipeline we would have launched over the next three years. 90% projects, 80% we would have launched. I’m not saying the completion that we would have lost. And then you typically on the complexity of the project, you consider size of the project, you consider about three to five years.
Abhir Pandit
Three to five years. Okay. Okay. Okay. Perfect. Sir, my second question is related to the cluster redevelopment. I understand that the FSI is higher in that. So, so correspondingly also I would believe that the complexities and the size of the redevelopment must be higher. So just wanted to understand your thought process on why are you looking at cluster redevelopment? I mean I. I believe you have answered a. Quit a bit of it. But is it related to the fact that, I mean normal redevelopment is facing a larger amount of competition. Thus you want to go into a complex redevelopment area. What is the thought process here?
Boman Irani
You know, it’s funny that you say that individual redevelopments are getting a lot more difficult. They aren’t getting difficult. They’re just getting a lot more complex. Because people are, you know, as things progress. I think someone wrote a nice article that people are treating the highest offer as the best offer and forgetting the basic. So we are waiting for some of that to come back to old world normalcy. But cluster, actually, why does Rustamji, you know, what is Rustamji’s design philosophy? We’ve always been design led as a company, right? And we’ve always believed in creating gated communities.
Because gated communities allow for better larger amenities, greater in terms of, you know, enrichment of lifestyle. You just have a lot more flexibility in the way the design comes across. And that’s what I was saying. Imagine having a 20,000 meter, 5 acre, 6 acre plot available for development versus having, you know, just 2,000 meters. So in 2000, all you can do is one building and provide as many basements or you know, podiums as car parkings and then provide a strip of a garden and then provide some kind of terrace amenities. Now take this to 20,000 square meters.
In 20,000 square meters you can provide larger gardens, you can provide play areas, you can provide for better car parking efficiencies, you can provide for all the amenities and more then you can provide in a single layout. And then you have the opportunity of doing this all in a way that will be, you know, looked up for the next 1500 years. Right.
Abhir Pandit
Okay.
Boman Irani
And cluster is not possible by every other developer. Right. And if you, if you look at Rustamji, the way we’ve honed our skills in this field of redevelopment, we are the number one developer that the go to, developer that societies do consider. And when clusters start putting their faith in you, it just shows that, you know, these societies are mature. They’re coming together and entrusting a developer to change their life and lifestyle for the future. I think it’s a huge challenge. The complexity is there, but this complexity, I know the government stated initiative is for these larger developments for better lifestyle for the residents of Mumbai.
And towards that there’d be a lot of ongoing parlays with the government to make these more and more meaningful and better for the location as well as for the people living in it. And you know, we’ve always been a first mover and I think here we are and we’re going to be doing these four large cluster redevelopments in a way changing the landscape of the areas that we are working.
Abhir Pandit
Okay, Perfect, perfect. Thank you. Thank you very much sir. So just one final query related to the commercial. I believe now that you are also looking at commercial expansion. So just wanted to have your thought process on what is the nature of the or characteristics of the property that you are looking at? What is the target area or let’s say what is the, I mean the revenue generation that you look at when selecting a property for the commercial area.
Boman Irani
So. Right. Commercial is a natural extension of, you know, our abilities and capabilities and growing prowess that we have. And we’ve been extremely selective in what we do. So the first commercial development, I mean and it’s not like we’ve not done commercial in the past. We have. Right. We’ve done our own building Nataraj in Andheri, we’ve done Aspiring in Cyan, we’ve done Central park again in Andheri and then we’ve built is about 14 social redevelopment project that is schools, hospitals, temples, etc. But now our foray into commercial is with the marquee developments. So we’re doing 3315 which is situated in Bandra on 33rd and 15th road just off Linking Road. It is a prime, I would say A plus development that is taking place in that area which will create a whole lot of infrastructure in terms of eateries, in terms of offices, in terms of social hangout areas in Bandra West.
The second one that we are looking at is 200,000, approximately 200,000 square feet development which is in, in Prabhadevi. Then we have Thane where we have about 18 million square one, sorry 1.8 million square feet of commercial development where we are looking at developing, you know enhancing the livability or the lovability of Urbania Township by creating this commercial where the people can have the ability to walk to work and you know walk to great social hangout areas including restaurants over there. So that is also in progress. And the idea that you know we want to approach this with is to create category A developments only in commercial. So we will not do, we will try and avoid you know other, other locations. And we look at a thousand plus crores as the GDV as a starting point or just as a, as a viewing for, for you.
Abhir Pandit
Okay. Okay. Okay. Perfect, perfect. Okay. Thank you sir. That’s all from my side. Thank you.
operator
Thank you sir. Ladies and gentlemen, to ask a question please press star and one. Now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Pritesh Seth from Access Capital Ltd. Please go ahead.
Pritesh Sheth
Yeah, good evening and thanks for the opportunity. I think few questions on the collection side which have been weak in first nine months by we have seen a drop. So just to be specific, I mean you know in last eight quarters if I see we have done a pre sales of average 800 crore around. While our collections are yet to scale up to you know that extent, by what time you think that you know we can scale up to that pre sales number and get closer to 700, 800 crore. And just a follow up on that in last three quarters I think our difference between gross collections and net collections have widened a bit. We were earlier at 75, 80% kind of a ratio between net and gross. Now we are at tracking at 60, 65. So what could be the reason? Yeah, yeah.
Sajal Gupta
So Pritesh the collections. We always say that as a growing company about 75% to 80% were pieces that what we should be looking at the collection Efficiency Given a mix of the new project and the old projects we have grown in collection by 12%. The same time last year we did 1580 crores and this year we have done 1770 crores in the nine months collection. As you said that since there are large amount of new projects the construction pace is picking up. Collections are construction linked. We should be seeing this efficiency achieved. Definitely for sure.
In the next year and even the current year very close to that means like about 75% of the total pre sales. Is that what we are looking at as the collection efficiency? Which means that about 2,250 crores. Sorry, about 2,800 crores. We are at 1,600 crores. I think we should see a pickup in the quarter four and the study basically 75 to 80% from the next year onwards.
Chandresh Mehta
And this question on. That difference between gross.
Pritesh Sheth
Got it on and the difference on the net and gross collections.
Sajal Gupta
So the net collections is the same. Look the net collection. I am assuming that you are looking at the OCF chart. Yeah, the gross collection. You’re looking at our normal collection chart is what I’m assuming. In our case the net collections is the same. While when we say the net collections some of the JV projects and some of the DM projects while on the operating number we report their collection. But in the OCF we only report to the extent it is consolidated into our financial. So fundamentally there is no difference in the gross and net collections.
It is just part of the of the collections in the OCF. Because those cash flows are not available to us directly and only to the extent the cash flows comes to us is what we consolidate is that collection is counted out of the gross collections. So that is the reason this number is different. But otherwise for our purposes and for the reporting purposes gross collections, net collections the same. If I include those projects also here then it will tie up to the gross collections.
Pritesh Sheth
You’ve got it. So for first time months I think large part of our collection has come from JV and DM on little higher proportion. And hence our gross and net. You know on the two reporting numbers looks a bit lower, right?
Sajal Gupta
Yeah, you can say that or you can say that there is a larger proportion of the collections into the is due to basically that this.
Pritesh Sheth
Due to basically. Sorry, I didn’t get the last one.
Sajal Gupta
Proportion of the collections is coming into our DM projects. And in our JV projects because we are doing Armenia has launched another basically tower. Then we have basically 180 Bayview is doing very well. 3315 is the another commercial project which has been launched and there is a collection happening. So all those collections we are not basically reporting here as a part of our net collections.
Pritesh Sheth
Got it? Yeah, got it. My second question on the contribution from new launches in first nine months in our full nine month sales. So how much have you know, the new launches of whatever we have done in first three quarters, how much have that contributed to Pre sales in nine months?
Sajal Gupta
So in nine months our 37% of the total sales have been contributed. 32% for the nine months and 37% in the quarter three is contributed by the new launches. Motamoti A third of the collection or the third of the pre sales basically is contributed by the new launches.
Pritesh Sheth
Got it. And just specifically on bar model which we launched in Q1 I suppose it’s, it’s little bit slower. You know, amongst all the other projects that we have and offlet I think we have started offering some deferred payment schemes as well. So what’s the strategy there? How are you probably going to drive volumes there? So just if you can highlight on that point. Yeah.
Boman Irani
So you know we are a first mover in most things. We are the first ones to actually recognize the potential of that particular land and you know, create what’s going to be possibly one of the finest developments that Chemburg will see with probably a hundred year view of an open, beautiful green space which is priceless according to us along with it on a plot which is fairly large and allows us to create all kinds of amenities. Of course the price point that we have started out there are something that market is just not able to or has still not been able to digest.
And what we’ve understood is that we’ll have to first bring it to some form of creation where people will be able to see what’s really happening. And you know, our sample home is about to get ready later this month and once that is done, we do believe there is a strong buy that will take place. Our walk ins have been great. People have been looking at it, you can see from their eyes they are almost there. But sometimes the blockage just happens that you know, this location, this price does not seem right. Whereas we want to change that paradigm.
And I’m fortunate that another premium developer has just or is announcing his project also with let’s say similar views, et cetera. And he, they and us have a similar track record in terms of creating, you know, fine developments or great developments. And we are watching the price points at which they will launch. But market intelligence tells us they are there almost the same price point. This will make, you know, the larger consumer base a lot more comfortable in understanding the value of the creation, the locational advantages thereof and be a little more comfortable with making the buying decision.
But even if they wouldn’t, I mean, I mean I’m not trying to be over cocky but even if they hadn’t launched, we are pretty confident that our, you know, once our amenities were visible, there’d be a lot more buying taking place. I mean we had expected this and we had, we had programmed for it and our construction is in full swing. And I think with the, with the show apartment done, we will see a lot more buying taking place.
Pritesh Sheth
And with this scheme that you offer, do you really see a change in conversion or this is just for bringing them at least at site and then people go with the normal construction link plan in general, just understanding what the perception is when we offer the scheme.
Boman Irani
The yes and no both ways. One is definitely a price payment plan or a payment plan attracts people because then they look a little beyond just the price, right. And they look at the value a little more and when you backend it, you’re taking the risk off their back so they are a lot more happier. So of course decision making does get quicker and better with that. But like I said, finally we are banking on the product and the location of the product and the kind of lifestyle that we are creating for people. And that will be better seen by people once our show apartment is readied and, and we have a visual on what it is that is being created out there that will allow people to kind of make the buying decision a lot easier.
Pritesh Sheth
Got it. And just one last on trying to get some sense on FY27, I think if I look at our business development from listing till FY25 just ending there, we have almost launched like you know, 7, 8,000 crore or little more. I think we are still yet to launch around 10,000 crore worth of projects from what we have added before FY, before we started FY26. Safe to assume that all of those launches largely will come through in FY27 or we might see some slipping to FY28 as well.
Boman Irani
So you know, your question is pretty broad brush based but let me try and answer it differently to you. Normal turnaround time that we are quoting between a DA and launch is about 12 months time. So all these projects will get launched within the next 12 to 15 months, but they would get launched in phases so just to give you an idea. When I launch Lokhanwala, I won’t be launching eight crores at one go. I’ll be launching maybe, you know, two. Two buildings. Maybe about 2,000 crores. And then six months later launching the next two buildings. And then six months later Launching the other two buildings. So we’ve got to kind of, you know, pace ourselves accordingly. It’s like a marathon. Right? This is not like a sprint that we are doing. And even this year we’ve launched close to around 9 to 10,000 crores.
Pritesh Sheth
Yeah.
Boman Irani
Or wait for this quarter. I mean this will take it way past that also.
Pritesh Sheth
Sure enough. Got it. That’s very helpful. Thank you. And all the best.
operator
Thank you. Sir, the next question is from the line of Ritvik Seth from one of financial consultants. Please go ahead.
Ritwik Sheth
Hi sir, just one follow up. What is the inventory at Crown as of December 2025?
Boman Irani
So inventory at Crown is in two buckets. One is we are all aware that our landowner also has his stock to sell. I don’t have a ready answer for you as to his inventory. But our inventory is about 276. Not about pretty. Precisely about 276 crores.
Ritwik Sheth
Okay, got it.
Sajal Gupta
And that would be largely sold Rithwick A and B tower. We don’t have any inventory. I think just one flat to sell.
Ritwik Sheth
Right.
Sajal Gupta
The C tower. As you know that we have already got the part oc. Part OC means substantial oc. Part is not basically in there. Then they are also very insignificant inventories there to sell.
Ritwik Sheth
All right. Right. Okay.
Sajal Gupta
And sir, partner’s inventory though we do help in terms of selling. But then that does not get accounted for in our financials. That’s the landowner inventory.
Ritwik Sheth
Right. And when do we expect the full OC to be received?
Boman Irani
I mean the full OC is only a technicality with regards to certain compliances that should come through in this quarter itself.
Ritwik Sheth
Okay, great. And sir, just one last question. If I can squeeze in about the business development for FY27. What kind of money we are looking, amount we are looking to spend in FY27 and do we expect to do a similar kind what we did in FY26?
Boman Irani
So you know, this again depends largely on what kinds of developments come our way in 27. But this year we’ve done about 650 crores in terms of BD deployments or whatever. So you can say that maybe a 25% growth thereof would mean about a thousand crores or something. 850 to 1000 crores. Let’s see.
Ritwik Sheth
Okay.
Boman Irani
And you know, again, you should know that we really are very tight on our policy where we go in for redevelopments largely with the idea to kind of invest lesser and lesser in BD and have more and more a larger share of inventory for sale.
Ritwik Sheth
Right? Absolutely. And sir, what will be the sources of fund? Because as we see like the OCF is not getting generated because of new launches in FY27. So you know, what could be the sources? Because I believe we are almost exhausted all our cash by. Would have exhausted all our cash by March 26. So can you give a broad bucket what would be the debt? What would be the internal accruals funding of this850,900crores.
Chandresh Mehta
So Rithwick, as you know we are at a very reasonable debt equity ratio. So we have huge amount of headroom to go as far as debt is concerned. So yes, obviously a part of the capital will come from debt and also internal accruals. So. Going forward our OCA will also, you know, support this kind of development activity that we need to undertake.
Ritwik Sheth
Okay. Okay, sure. So safe to say that 2/3 would be debt funded out of this 900 crores.
Chandresh Mehta
I would, I would more would like. Not 2/3rd but maybe 40% would be dead.
Ritwik Sheth
Okay. Okay, sure. Okay sir. Thank you. Thank you.
operator
Thank you sir. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing comments.
Boman Irani
Once again a very big thank you for joining us today. On behalf of Rustamji Management, we are very grateful to you for your continuous interest in us. In case of any further queries, please feel free to reach out to us and we’ll be only too happy to take care of those. Thank you.
operator
Thank you sir. On behalf of Access Capital Ltd. That concludes this conference call. Thank you for joining us. And you may now disconnect your lines. Thank you.