Raymond Realty (NSE: RAYMONDREL) Q3 2026 Earnings Call dated Jan. 27, 2026
Corporate Participants:
Harmohan H Sahni — Chief Executive Officer
Rakesh Tiwary — Group Chief Financial Officer
Jatin Khanna — Head – Corporate Development
Analysts:
Unidentified Participant
Biplab Debbarma — Analyst
Sucrit Patil — Analyst
Deepak Poddar — Analyst
Tejas Khandelwal — Analyst
Hitendra Gupta — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Raymond Reality Limited Q3 FY26 and 9 months FY26 earnings conference call hosted by Antique Stockbroking 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 touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Biplav Dip Burma from Antique Stock Broking Limited. Thank you. And over to you sir.
Biplab Debbarma — Analyst
Thank you. So on behalf of Antique Stockbroking Ltd. I would like to welcome all the participants in the Q3FY26 conference call of Raymond Realty Limited. Today we have with us from senior management of Raymond Realty, Mr. Rakesh Tiwari, Group CFO, Mr. Harmon Sani, MDN CEO, Mr. Ankur Jindal, CFO and Mr. Sunny Desa, Head Investor Relations.
Without taking further time, I would like to hand over the call to Mr. Herman Sani. Over to you sir.
Harmohan H Sahni — Chief Executive Officer
Thank you. Viplub Good evening everyone. I will make some opening remarks and then we will open the floor for questions. So first of all, thank you for joining us today for Q3 and 9 months financial year 26 results conference call. I hope that you all had an opportunity to go through our financial results and investor presentation. It has been uploaded on stock exchanges as well as on the company website, so you will get an opportunity to have a look at it later. Also moving ahead, I would like to spend some time on broader macroeconomic landscape which influenced our performance and some of the decisions that we took during the quarter.
So a quick overview of the broader macroeconomic environment that shaped both our performance and the industry landscape. The sector continued its upward trajectory during the quarter in consideration, which is Q3 marking almost three years of sustained growth. The markets remained robust and they were supported by two key tailwinds. The first is of course the monetary environment which remains quite accommodative. Reserve bank of India reduced the repo rate further by 25 basis points to 5.25%. And this provides a very stable macroeconomic background in which we operate. So this move itself has further improved home loan affordability.
How it helps us is not just in terms of affordability but also in terms of buyer sentiment, which is a better indicator, I would say, because people would make big ticket purchases only when they feel good about the future and very very hopeful. So positive buyer sentiment is one key underlying Theme which has remained strong and it continues to stimulate the demand across residential segments. And the second part of this was the domestic consumption which also helped firm despite the global uncertainties which continue to weigh on exports and some of the other sectors like FMCG which are bearing the brunt of that.
But large ticket purchases, in particular housing and automobiles, they have remained resilient and it just shows that India’s strong economic fundamentals and the domestic consumption story is holding as far as large ticket purchases are concerned. The disposable incomes are clearly rising and a large share of the wallet of this is going towards cars and homes. So this consumption strength has provided a solid foundation for our real estate demand. And we as Raymond Realty have also been beneficiary of that. We also witnessed a fundamental shift in consumer behavior. Home buyers are now placing premium on quality, transparency and reliability.
And there is clearly a decisive flight to quality. And that’s why you see established and branded developers cornering a very large share of the market. So this evolution is redefining industry competition and highlighting the critical value of proven execution and brand reputation. And that’s where we also continue to focus on building everything before time with very high quality and continuing to deliver on the brand promise that we put into the market. Now, if we zoom into Bombay, or Mumbai as it is known, the city’s property market continued to demonstrate strength through Q3. On the whole, while October saw a temporary dip in registrations, there was a significant fall, almost 14% year on year.
But that was also because of the high base effect from the previous year’s festive season, which was there, which was early last year. Diwali and some of the other events happened earlier. But if you see rest of the quarter, November, December, the total property registrations in Bombay for the entire quarter exceeded 36,000 units. And it set a new record of one and a half lakh registrations for the full calendar year 2025. That has been the highest in the 14 years that we have seen. So clearly the surge in demand which came in two months is not just for those two months, it’s for the entire year.
If you see there is a secular trend which indicates there is an upsurge, continuing upsurge rather. So this performance clearly reflects a continued end user demand, particularly in premium home segments. And it signals an enduring buyer confidence in Bombay’s dynamic real estate market and particularly backed by good strong corporate players. So this sustained momentum basically underscores deep rooted buyer confidence that we have been seeing for the last three years and There is clearly a healthy appetite for home ownership in Bombay for Mumbai. Sorry. So as we move into FY27 Mumbai’s property market seems well positioned to benefit from all these favorable tailwinds which are there.
The monetary policy is clearly going to remain accommodative. If you look at the inflation figures, that’s what it indicates. The domestic consumption is resilient. So FY27 should be equally good or better than FY26 in that sense. Now zooming into our financial performance for the quarter and nine months, what has it been like? So we are pleased to report that Q3 FY26 and 9 months FY26 performance has exceeded our internal benchmarks and the budgets that we had which signals a very powerful evolution in our business model. The key factor in this is, you know, how much share of our business comes from our legacy land than A and how much of it comes from the new deals that we have signed which is JDA projects that we have done our assets like model.
So in this quarter this was a defining moment for us with the launch of our second JDA project in Victor’s GS in bkc. So with that in Bandra east we have two JDA projects which are running. The second project also received an overwhelming market reception just like the first one. And it confirms our brand acceptance and secures a substantial revenue potential of over 2000 crores just from this single project. So we are quite aggressively transitioning towards a high efficiency asset light JDA model. By FY28 I think we will definitely be 50% of our annual pre sales will be coming from the JDA which will be a shift from if you look at FY25 numbers, over 22% of our pre sale number came from JDA and from there within two and a half three years we’ll be jumping to 50%.
So that will be a significant landmark for us. So this strategy will optimize capital allocation while drastically scaling our market footprint. So with very little capital deployment we would be cornering a large share of the market. So our financial trajectory is characterized by surging growth and disciplined execution. Our booking value if you look at in Q3 surged to 743 crores which is a 47% year on year increase from the corresponding period last year which was 505 crores. And that displays the kind of trust the brand has created in a short period of time in the minds of consumers.
Our total income reached 766 crores for the quarter which is again a 56% year on year growth. If you look at nine month numbers, nine month momentum continued with year to date booking value of 1504 crores and the total income which we have reported is 1864 crores. So our cash flow and margins have maintained a healthy operational discipline with 1210 crores of customer collections done in nine months and our EBITDA margins remaining a steady 13%. We maintain a lean financial profile with a modest net debt of only 230 crores as of 12-31-2025. So all this displays a lot of financial discipline that we follow and the rigor that we have in all our decisions that we make to top it all execution remain the hallmark of our company.
We continue to outpace construction timelines across both Thane and Mandurah, ensuring high quality timely delivery that protects all our investors and customers returns. Our current portfolio of all the projects put together represents a 40,000 crore revenue potential. It is broadly split between 100 acres of Thana land parcel which has a 25,000 crore revenue potential on current prices out of which 55 acres is currently under development with a 13,200 crore of development value. Now out of this 13,200 crore development value we have already sold 8,500 crores and collected 6,700 crores worth of stock. So that again is a testimony of our fast paced execution that we have displayed.
And apart from that, the other engine that we have is the JDA’s that we have signed, the six JDA’s that we have done which has a revenue potential of approximately 14,000 crores. Out of this, these six JDAs two have already been launched up to nine months of the current year and the other two are expected to be launched in Q4 FY26. That will leave us two more JDs which will be launched subsequently in the following 12 to 15 months. So there is a robust pipeline of new projects coming through both in Thana as well as non Thana through the JDA model and which will continue to give us the growth that we have promised to the markets.
Which brings me to the growth outlook. So we are entering Q4 with immense momentum. A solid execution that we have done for the first three months in terms of construction as well as getting approvals and getting projects ready which gives us a lot of heart and build fast self fast strategy is firing on all cylinders. So our Q4 launch pipeline looks very very exciting and healthy. So you will definitely see four major launches from us. Two of these launches will be the JDA projects which will be outside the Thana market. We are talking about Wadala and Cyan.
These two locations will be launched and we will additionally launch two more projects in Thana. And one of these projects is addressing the heart of the market which is a two bedroom community that we are creating. And another project that we are launching will be a high margin project that we will launch which is the retail project. Now this will not only give us the required growth that we have targeted for the year, it will also help us achieve the revenue number and also the margin profile that we have promised to the market. Currently our ebitda margins are 13%.
They will definitely be higher with the launch of this project which has a margin profile very different from the existing projects. And that is what will help us achieve the required EBITDA margins. So we are firmly committed to a 20% year on year growth in booking value. It will be driven by our scalable asset light model certainly. So that strategy continues. So now with the robust pipeline and continued dynamism that we have seen in the MMR market, particularly Mumbai, we are on a definite track to meet our entire full year guidance. So with that I thank you for joining us and we would be happy to take your questions.
I think we can open for open the line for questions now. Thank you.
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 press star and one on their touch tone telephone. If you wish to remove yourself from the question queue use. You may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Sukhrit D. Patil from Eyesight Fintech Private Limited. Please go ahead.
Sucrit Patil
Good evening to the team. I have two questions, both forward looking ones. My first question is to Mr. Sahini. With demand for residential estates remaining healthy but increasingly selective across micro markets, how is Raymond Realty sharpening its project selection, launch tactics and execution focus to build a more scalable and differentiated residential portfolio? In this context, how do you balance brand led premium with volume growth while managing regulatory timelines and ensuring consistent customer satisfaction across all the projects? That’s my first question. I’ll ask my second question after this. Thank you.
Harmohan H Sahni
Thank you for that. Actually your question is very, very wide. I can talk on this subject for a couple of hours also but I’ll try and you know, shorten it and create a telescopic message. Essentially. Essentially what we, when we started this Business. What we set out to solve in the market were just three things, you know, and the first thing we wanted to solve in the market was that there should be quality product that we have to deliver in the market. And the second thing we wanted to solve was timely delivery or before time delivery.
And the third thing we wanted to solve was customer focus. So in terms of giving the service to the customer, which in this industry actually customers are not used to very high standard of service. Unlike, you know, even if you look at customers industry, while it is large ticket, the service levels are very, very different. Now this sounds very hygiene and very simple, but it’s easier said than done. It’s very difficult to execute for the very reasons that you detailed out that there is, you know, the regulatory issues are there. The market is not completely consolidated while it’s marching towards consolidation.
Now what it does for us is one is it brings attention acute focus on all the decisions that we make, that they are going to be customer focused and they are not going to be developer focused. Like some of the questions you asked is while keeping margins and this, that and the other. So if I have to have a trade off between what the customer wants versus whether it will impact my margin or not, I will always choose the customer side. And that’s how we are building this business. And once we have reached a certain point, it will automatically give us a huge premium because we will stand out from the rest of the market.
There are very few players who in the market who are currently thinking in this direction that you have to give quality, you have to give it on time and you have to keep the consumer experience very, very high. Like I said, most of the developers are developer focused and they are not customer focused. So that is something we set out to change in the market. And that will ensure that no matter where the market is, our market share will keep on growing so we don’t have to grow. You know, one strategy is that, you know, when the water rises, all boats will rise.
So you rise with the market. The other is that even if there is less water, I will create a craft or a ship which can navigate shallow water also. So our market share will grow even when the market is not doing so great because of the things that we have set out to achieve. We are very happy to share that so far our journey has been pretty exciting on all fronts. So as far as quality product is concerned, I think all our customers are testimony for whatever we have delivered in the market. And we have delivered significant number of apartments so far in thana and as far as timelines are concerned we’ve got third party testimonial to prove that we have delivered our projects way ahead of timelines that we committed.
And as far as service quality is concerned there also we’ve done significant amount of work. In fact we have a separate department on there is a chief customer relationship officer who is there, who reports directly to me and we’ve created an entire ecosystem and he touches every function in the organization. So it’s not about one guy handling customer relations, it’s about about every department firing to make sure all touch points are covered. So I hope I have broadly answered your question. If you have anything specific we can separately also meet and spend more time on this because this is the core of our strategy actually.
Sucrit Patil
Definitely I would love to meet you. My second question is to Mr. Rakesh Tiwari. I believe he’s also on the call today.
Harmohan H Sahni
Yes, he is.
Rakesh Tiwary
Yeah, sure.
Sucrit Patil
Yeah, yeah. Thank you. So again it’s a forward looking one, you know, as the company continues to scale its real estate real estate portfolio amidst, you know, fluctuations in input cost, funding conditions and cash flow cycles which are unfortunately inherent to the particular space. How, how are you approaching capital allocation and project level financial discipline? Additionally, how do you evaluate the trade off between faster project monetization, balance sheet strength and reinvestment into new developments to sustain long term value creation? Thank you.
Rakesh Tiwary
Yeah, thank you for the question. So see few things I want to explain you well in advance that the question was loaded one in the beginning itself that there are a lot of fluctuation in the cash flow which is not the reality. Now coming back to in terms of your capital allocation. See first of all in terms of allocating the capital, risk management is the most important critical role or the critical point which we take into account while allocating the capital. Apart from that we assess the regulatory readiness, title, clearing, zoning, approval, timelines, execution complexities before committing any capital to the project.
Just to give you a glimpse, we have got a tight internal control management in terms of the way we approve the project. And there are several layers of approval which happens before any project can see a day of the light. So far execution is concerned. Now second point is that the capital deployment is also milestone linked. We do not commit the full capital upfront. I mean the release are tied to the approvals, leasing, viability or the construction progress to ensure that the capital efficiency and there is a full scale downward protection which is there in terms of whatever project is undertaken.
I think your second question was in terms of the funding Part see our endeavor is that the real estate product should be self funded over the cycle. Our most important preference always is to have an asset level structure, partnership or monetization group that minimizes the balance. It is strain and it protects the group. RO that is the full idea in terms of our funding strategy. So this is in terms of summary, I mean I’ll request Herman if you want to add anything on this.
Harmohan H Sahni
Yeah, so there are two parts to it. I think the first question is on capital allocation. See at the group level capital allocation has already been solved through demergers. So each business has its own balance sheet and they will raise their own capital. So there is no further support which is as of now being provided by the corporate to any of the group companies. They’re supposed to be self sufficient. And that’s why this demerger was done. That was the whole philosophy behind it, that businesses are now large enough and they can stand on their own and that if you look at that strategy. So capital allocation to a large extent at group level is already sorted.
Now the second layer of that is we within the business. How do you allocate capital? Now naturally when you are selecting projects and you are taking the decision, capital decision, so automatically that capital allocation happens, the moment you approve a project and you move forward, you have allocated capital for that project. And for that there are several criteria that we look at. Of course the entire time cycle that it takes for the money to come back. Number one is of course our asset light capital, light JDA model. So I don’t have to pay for the land, I don’t have to pay for, you know, very heavy costs upfront for other attendant costs and transaction costs which go with the, you know, buying land.
And then obviously everything is based on how much return on capital that you will make, what is the IRR that the project will give you? And see the projects that you’ve already taken on. Obviously you cannot offload and opt out. So in a way it is automatic. But of course if there are three, four competing projects that I have to allocate capital on, then the criteria is very clear how much multiple of my peak investment that is going to give me. What’s the return on capital employed? What’s the IRR that we’ll be making based on that? We stress test all the assumptions, create scenarios and on a risk adjusted basis we take that call. I hope I’ve been able to answer your question.
Sucrit Patil
It’s a very detailed guidance and best of luck for the next quarter.
Harmohan H Sahni
Yeah, thank you.
operator
Thank you. Our next question comes from the line of Rishabh Kothari from Ashish Shah Investment Advisors. Please go ahead.
Unidentified Participant
Hi sir, myself Rishabh this side. Congratulations. First of all congratulations for posting good set of numbers. My question is regarding valuation. Sir I can understand market is evaluating companies operational front of execution of projects and guidance achievement for re rating our share. But have we considered an option to increase promoter stakeholders BY let’s say 10% to sub 60% so that in future when we need funds we can dilute it and raise the funds at true valuation at that time. So first question one, are we considering increasing our promoter stake? And question number two, one of our regulation for mutual funds or DIIs is to invest in a stock that should be in the Nifty index.
So let’s say that mutual fund and DIIs can invest in Raymond Realty if our stock is in Nifty Realty Index. And now as mandated by NSC to consider and examine stock for 6 months are we reaching out to NSC to include our company in Nifty Realty Index? So only two questions promote an increasing stake number one and two, inclusion in Nifty Realty Index. Over to you sir.
Jatin Khanna
Yeah so this is Jatin Khanna here. So on the first question see firstly you know the business currently is adequately funded. So there’s no question of promoter funding or not funding. Of course they believe in the growth of each of the businesses. There have been instances in the past wherein they have made investments from time to time. In fact they have not taken any liquidity from, you know, from any past divestments which have happened. And almost 1400 crore has been invested by the promoters in the Raymond businesses over a period of time. So clearly if there’s a capital requirement in the business promoters can always decide at that point in time.
At this stage there is no capital requirement. So therefore we are not even tapping the promoters or for that matter any other investor to raise capital. That’s one, the projects are adequately funded. And we spoke a lot about the capital allocation as well, you know in the previous question. So I think that’s sort of to me point number one.
Unidentified Participant
And question two was inclusion in Nifty Realty Index.
Jatin Khanna
Sorry on the nifty inclusion. Basically so the way it works is that there’s a, you know there are technology based parameters that stock exchanges have. There is no manual intervention which is possible to from any company to make a request or have any discussion with stock exchanges on this. So they have their own preset algorithms and based on those Algorithms. If your stock gets picked up in the Nifty, that’s great. If it gets picked up in fno, that’s great. But that all, all of that happens based on the Algos, they have preset, you know, so it’s not like you can influence or make a request there.
Unidentified Participant
Okay, sure. Thank you, sir. Thank you for the answers and best of luck for the next quarter to you.
Jatin Khanna
Thank you.
Harmohan H Sahni
Thank you.
operator
Thank you. Our next question comes from the line of Deepak Podar from Sapphire Capital. Please go ahead.
Deepak Poddar
Yeah, I’m audible, sir.
Harmohan H Sahni
Yes.
Deepak Poddar
Thank you very much for this opportunity. So just a couple of questions I have now. I think this year we are targeting a booking value of around 2800 crores. And this nine months I think we have done around 1500 crores. So this 1300 crores fourth quarter booking. So which project will drive this? I mean which project you expect to contribute this 1300 crores cumulative value?
Harmohan H Sahni
Yeah. So currently if you see we have about nine projects which are on stream, roughly about seven which are running in Thana and two outside of Thana which are Bandra East. Apart from that, in Q4 we are launching four more projects which will add to this portfolio. So there will be 13 total projects which will be delivering this 20, 2800 crores number that you talked about, which is actually a derivative of the 20% growth that we have promised. So the new launches which are there, I mean they are the ones which will drive. Because on a launch you always get a big bump up like we have seen in all our projects and across the industry also you see if you have been tracking the sector, you know that launches when the maximum inventory gets sold. So since four launches are coming up plus the existing projects will also contribute to it.
Deepak Poddar
So existing is nine projects and four, four more projects are. Will be launching in four 13 projects, right?
Harmohan H Sahni
That’s right.
Deepak Poddar
And so this Wadala and fan, have we already launched or we are in process and I mean which one we are planning to launch.
Harmohan H Sahni
So. So Wadala is already launched but it is Q4 already. Because it is. It was not launched in December. That’s why we have not covered it in our Q3.
Deepak Poddar
Okay.
Harmohan H Sahni
Address. But. But it is already launched.
Deepak Poddar
What? Align sign. When, when we are expecting to launch.
Harmohan H Sahni
Sign should happen in middle of Feb. Middle or end of third week of Feb. Around that time.
Deepak Poddar
Okay, understood. Under. And, and you, you also mentioned we are on track to meet full year guidance. So what is the guidance they have given for this year in terms of growth or margins.
Harmohan H Sahni
The growth guidance we have given is about 20% growth on pre sales and top line.
Deepak Poddar
Okay. And what about margins?
Harmohan H Sahni
So margins for nine months are about 13%. We will deliver significantly better in that our endeavor is to eventually reach a 20% margin profile. Whether it happens in Q4 or it happens in Q1 next year, that is to be seen. But we will steadily march towards that.
Deepak Poddar
Okay. So 20% margin at least FY27 is what we might target. Right. EBITDA margin. Okay. And for this entire year I think this nine months, I think our margins excluding other income would be in the range of some 11 12%. I guess. So for the entire year for this FY26 we are targeting about 15, 16% kind of EBITDA margin in that range.
Harmohan H Sahni
Yeah, it will be, it will be close to what you said.
Deepak Poddar
Okay. And that excludes other income, right?
Harmohan H Sahni
Yeah.
Deepak Poddar
Okay. Okay. Okay. That’s very helpful sir. I mean wish you all the way best. Thank you so much.
Harmohan H Sahni
Thank you.
operator
Thank you. Our next question comes from the line of Kailash Tiwari from Sequal Securities. Please go ahead.
Unidentified Participant
Sure. Hi all. My question is sir, like historically we enjoyed 20 25% EBITDA margin largely because of like Thane project on like on company online which is the like zero land cost. Now that our future growth is like mostly on Bandra Chamber is targeting towards the JDM model where we have to share the revenue profits to the landlord. Like and like and should we assume that this is a new normal for margin, Will structure settle lower in like between 15 to 18% of frames? Or do we believe that like premium pricing power in this micro market is highly enough to offset the JD revenues.
So like also adding to this like before demerger like we were easily enjoying that margin of 20%. Like post demerger like we have largely dropped to 13%. Like I’m, I’m not sure like what happened on this. Like how, how do we be, how did we be fixing this? How we should be fixing this.
Harmohan H Sahni
So see there are, there are, there are three reasons for, for the change in margin profile that you are seeing prior to the merger and now. One is of course when the demerger was not there, the business was a division in overall Raymond limited. Now what happens is that there are lots of costs which do not get debited to the business because it’s a division and it goes as common costs. And the EBITDA to that extent gets overstated because when you do second everything doesn’t get allocated at that point in time. But now after the demerger, when all these common costs get distributed between various entities, there is always a change in the margin profile for any group it will be the case.
And if you see our other businesses also you will see a slight change in the margin profile because of these common costs. Then they get distributed to each business on a more realistic basis. And there is no common cost concept in that sense. So that’s one reason. The second reason is also there has been a change in the accounting which has happened which primarily is relating to JDA’s. Now it’s highly technical. We’ve given a note to that effect in our accounts also last quarter. If you, if you see. So what happens is the accounting standards are in such a manner that whatever we are delivering as rehab portion to people who have given us the land, the value of that entire rehab portion gets captured as revenue.
And there is a presumptive rate of margin which is taken, which is taken at 5%. So what happens is that 5% margin there. And overall on the project you have close to 18, 20% margin. But your average drops. And it is peculiar because of this accounting anomaly. Actually you are not receiving that revenue, you are not making that margin. But the accounting standard says so. So you have no choice but to do it. In fact, all real estate companies who are doing this will have to this going forward. So this is something which kind of happened to us in this year.
So that on the books you see this average margin going down little bit because of this averaging effect. But as the project progresses further, it kind of and you start booking revenue on your sales, this margin starts to creep up because initially entire rehab portion you have taken at 5%. But as you sell, you will be recognizing revenue at full margin. So your average margin will start going up further. So that’s the second impact which has really hit us. I mean primarily these are the two big factors why you are seeing this. And we have had lots of launches which have happened on jda.
Two big launches we have done so far. And going forward also we will be doing two more launches. But by next year this situation will stabilize because we will have certain mature projects on the JDA front. And because of that the average margin profile will just rebound. So it’s only an initial stage. You see this situation of every project when it gets launched. You know when you’re launching there are launch expenses. The margin is lower because pricing on every project has a hockey stick curve for all projects, whether it is owned project or whether it is jda.
So since there are many Launches which have happened, you are seeing this phenomena. But it will stabilize between 18 and 20% despite JDS being there. Despite, you know we are paying for land because wherever we are doing these projects they are at a much higher pricing point. They are 1.5 to 2 times pricing of our Thana projects. So while we are paying for land but we are also charging higher. So. And that’s the reason why the margin profile, it will yeah lower because of the common expenses. But yes, we will, we will be close to 18, 20%.
Unidentified Participant
Can we be expecting in Q4 or it would be in site 27.
Harmohan H Sahni
Q4 also you will see an onward march. You will, you will see a better margin than 13% that you’ve seen for the nine months.
Unidentified Participant
My last question is like any expansion apart from Mumbai like Hyderabad or Bangalore or any other state in terms of like developing.
Harmohan H Sahni
See as of now we are clearly Mumbai focused and we want to continue doing that. There is enough room to grow in this market. In fact the projects that we have signed so far clearly ensure two years growth for us at the 20% growth that we have talked about. And we are currently working on year three and year four growth. So Bombay has a lot to offer. It is, it is a very, very healthy market not only in terms of volume but also in terms of pricing discipline. So I mean risk adjusted is the best market to be in, in the country today.
Unidentified Participant
Okay. And then thank you. All the best.
operator
Thank you. Our next question comes from the line of Khushi from Nigerian Capital. Please go ahead.
Unidentified Participant
Hello. What is your current EBITDA for the year?
Harmohan H Sahni
Sorry, we can’t hear you clearly. Can you repeat that please?
Unidentified Participant
Can you hear me now?
Harmohan H Sahni
Yeah, we could hear you earlier but it wasn’t very clear. Request that you repeat your question please.
Unidentified Participant
What is the run rate for FY26 EBITDA? Run rate for the FY26.
Harmohan H Sahni
EBITDA margin. So full year we’ve given a guidance that we are looking at a 20% growth on the top line and bottom line. So we will be very close to that.
Unidentified Participant
Okay. Because last year we did approximately 500 crores of EBITDA and basis also. It’s not mere but it’s around 300 crores.
Jatin Khanna
So see the thing is that last till last year the EBITDA that you have seen is a segmental EBITDA and the company was not demerged under a segmental ebitda. You have also unallocated costs. And now that it is only one segment and one company. So all those unallocated costs. And I look at it, cost become the segment cost. So to that extent your like to like is not a 500 number which you’ve seen for last year. The like to like is a different number. So therefore to that extent, you know, after you adjust the unallocated cost and all then there’s a 20% growth you will see on the EBITDA is the point being made.
Unidentified Participant
Okay again, thank you.
operator
Thank you. Our next question comes from the line of Tejas Khandelwal from Prudent Equity. Please go ahead.
Tejas Khandelwal
Oh hello. Am I audible?
operator
Yes, you’re audible.
Tejas Khandelwal
Yes. Oh. So thanks for the opportunity. So sir, my first question is we have recognized the revenue of 108 crore from Scion in Q3. So. But it is yet to launch. Yet to be launched. So how should we look at it?
Harmohan H Sahni
Yeah, so there is, there is only one way to look at it. So what happens in case of redevelopment projects is so the existing residents have the right to purchase a certain area which is more than their entitlement theme. Let’s say to give an example somebody has thousand square feet and in the scheme we have promised them that we will give you 30% more area. So they get 1,300 square feet. But somebody wants to buy another 200 square feet and he says okay, you have an apartment in your configuration of 1500 square feet. I will take that apartment instead of my 1300 entitlement but I will pay for that 200 square feet extra at the market rate.
And that that gets documented and the document gets registered. So the final definitive documents get signed and it is registered with the registrar of properties. Now it is a result of that because the existing residents have bought certain area from us which they have the right to buy. For that I don’t need to launch the project because the planning is already done, the basic approval has already been obtained and and only after that these documents happen because I cannot enter into a document without the basic approval.
Tejas Khandelwal
Okay, so got it.
Harmohan H Sahni
Yeah. So. So it is a result of that. So it is a genuine sale but it is sale with the existing resident. So it’s, the nature is slightly different. It’s a very fine difference.
Tejas Khandelwal
Okay. Okay. And so on the collection front, so while our pre sales are growing but we are not seeing the same growth on collection site. So why is that?
Harmohan H Sahni
I don’t know what you mean that you’re not seeing the same growth. What is your comparison point? I don’t know. You’re comparing what with what?
Tejas Khandelwal
And custom customer collection. So we have collected 4, 427 crores in Q3, FY26 and that was 409 crores in last quarter and 431 crores in same quarter last year. So there is no. Not much growth. But our pre sales has grown.
Harmohan H Sahni
The the collection is dependent on what milestones get achieved in the construction during that period and what is the percentage which is linked with that milestone. So they are not necessarily comparable from period to period in that sense. And when you do pre sales at the pre sales time the maximum you will collect is not more than 5 to 10%.
Tejas Khandelwal
Okay. So got it. And so on the tax front, so we have paid a very less tax this quarter. So what tax rate can we expect in last quarter, this Q4 and next financial year?
Rakesh Tiwary
It’s 20, 25% between taxes what we are expecting for the full year.
Harmohan H Sahni
You can assume 25% which is the maximum marginal rate for a company. So yeah, are so.
Rakesh Tiwary
Considering the capital G average is coming between 20 to 20.
Tejas Khandelwal
Okay. And I have last question regarding the labor law change. So how, how much expense can we or expect from this change?
Harmohan H Sahni
Sorry, what’s. What’s the change? You.
Tejas Khandelwal
The change in labor laws are recently happened and the developers are giving.
Harmohan H Sahni
There is no significant impact to us because we don’t have the vintage as a company and as a business. It is just a five year, five and a half year old business. So we are not crossing the threshold. The significant impact will come to organizations which have a long vintage of you know, 20, 30, 50, 100 years. So for us the impact is negligible.
Tejas Khandelwal
Okay sir, so that was from my side. Thank you.
operator
Thank you. Our next question comes from the line of Hitendra Gupta from Systematic Shares. Please go ahead.
Hitendra Gupta
Hi, good evening. I had one or two questions. One is with regard to your EBITDA margin, I think last time you have earlier guided around 20% EBITDA and now what I hear is like you’re saying that it will be around 15, 16%. Does this mean that you are revising it downward? And my second question would be with regard to the pre sales. You have assumed a sale of 39 crores in Q4 to make a full year pre sales of 2,800. In the current environment where we are hearing that the real estate sales across is bit soft. Does it look bit ambitious on the company’s part for where we are targeting 39 crores in the Q4?
Harmohan H Sahni
Yeah. So I’ll answer the second one first. So as far as sale number is concerned, that’s how we had budgeted it and we are not experiencing any softness in any of our projects. So I don’t know the market reports and whatever because I, I’ve got four different market reports and all four say different things now. But. But I will rather go with my own data and what my experience has been on our projects because that is what is more relevant as far as we are concerned. So we are not experiencing any softness on any of our projects and they are behavior exactly the way we predicted and had budgeted for so far.
Now, I don’t have a crystal ball to talk about how it will be in 12 months and 15 months, but as of now we don’t see any signs and we are very, very confident that we will deliver the number that we have promised. And there is a solid plan behind it. And it’s all very detailed thought through. It’s not a hope that we are, we are banking on. As far as your first question which relates to margin is what we said is that eventually this business is, you can expect a 20% margin from it. Currently we are at 13%.
And I also explained the reasons of that. So I will not go through those reasons once again. Primarily part of it is because of some accounting standard issue that we had and part of it is because of the unallocated common costs which were there as an entity which has come and the early part of the projects that we have. So for the current year we will still deliver between 18 and 20%. And that 15, 16% which you heard was a specific question which somebody asked on a certain part of the business and said that, you know, you remove other income, you remove this, that and the other and what the margin is going to be.
But business as a whole, we will be close to a 20% margin. Somewhere between 17 and 20% range we would be. And next year we will continue our march towards 20%. So effectively the business is 20%. If I remove that accounting standard issue which has come, if I remove that, you know, averaging effect, we will be very close to 20 by the end of this year also.
Hitendra Gupta
Okay, so we can assume there is certainty that we can be able to see 20% EBITDA margin this year. But conservatively it is better to have 15, 17 to 18, 17 to 20, 20% kind of a range. That’s what you want to mean to say.
Harmohan H Sahni
That’s right.
Hitendra Gupta
And with regard to sales, you categorically said that you’re confident based on your budgeted things. And whatever you are seeing in terms of data, 1300 in the last quarter is achievable.
Harmohan H Sahni
Yeah, absolutely. See, we are. We are. We are already opening up three new micro markets in the city and where we are not present.
Hitendra Gupta
Okay. Yeah, that’s it for my side. Yeah. Thank you very much. All the best.
operator
Thank you. We will take that as the last question for today. I would now like to hand the conference over to Mr. Harmohan Sahni from Raymond Reality Ltd. For closing comments.
Harmohan H Sahni
So thank you very much, everyone for joining us for this call today and hope to see you again in the next quarter’s call. Good night.
operator
On behalf of Antique Stock Broking Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.