Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Raymond Realty (NSE: RAYMONDREL) Q4 2026 Earnings Call dated May. 06, 2026
Corporate Participants:
Harmohan Sahni — Managing Director and Chief Executive Officer
Ujwal Lal — Individual Investor
Rakesh Tiwary — Group Chief Financial Officer
Sunny Desa — Head, Investor Relations
Analysts:
Abhijit Kundu — Analyst
Rishabh Kothari — Analyst
Unidentified Participant
Darshan Jhaveri — Analyst
Unidentified Participant
Tejas Khandelwal — Analyst
Unidentified Participant
Unidentified Participant
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Raymond Reality Limited Q4, FY26 and FY26 earnings conference call hosted by Antique Stockbroking Limited. As a reminder, all participant lines will be in listen only mode and you will have an opportunity to ask questions after the presentation concludes. Should you need assistance during the 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.
Abhijit Kundu from Antique Stock Broking Limited. Thank you. And over to you.
Abhijit Kundu — Analyst
Thank you. On behalf of anti Shop Working Ltd. I would like to welcome all the participants in the Q4, FY26 and FY26 conference call of Raymond Reality Limited. Today we have with us from senior management of REM Reality Mr. Rakesh Tiwari Group CFO Mr. Aramo and Sani MD and CEO Mr. Ankur Jindal, CFO and Mr. Sunny Disa, head Investor Relations. Without taking further time, I would like to hand over the call to Mr. Harmon San. Over to you sir.
Harmohan Sahni — Managing Director and Chief Executive Officer
Thank you. First of all, good evening everyone and thank you for joining us for this call for Raymond Realty limited’s performance for Q4 and for the entire year FY26. So before we dive into our specific numbers for the company, I think it is important to look at the broader environment in which we operate. So Indian macroeconomic story in FY26 remained resilient and the GDP growth is estimated to be 7.4% as per the government numbers which have been already published at many places. And we obviously remain one of the fastest growing major economies in the world today.
So there is clearly a double engine which is firing now. Public investment led the way and now private investment is also coming in. And consumption has always been the story in India. So for our industry also in this background it has translated into a historic surge as far as the momentum of sales and demand is concerned. We have seen record breaking capital deployment. Significant amounts of equity has flown into the sector and jump. This equity which came from external sector is almost 88% close to $30.7 billion over the last approximate two year period since 2024 to Q1 of 2026.
MMR is the market in which Raymond Realty operates
Rishabh Kothari — Analyst
In a major way
Harmohan Sahni — Managing Director and Chief Executive Officer
And demand has stayed steady in this market. It’s primarily actual user driven and buyers are prioritizing functionality, connectivity and most importantly reliability in terms of choosing the developers that they want to buy from. So brand plays a very big role and that’s where consolidation theme keeps on becoming stronger and stronger with every passing quarter. Now if we look at our numbers given this context that we have, the word actually which comes to my mind immediately upon looking at the FY26 numbers is validation.
So whatever we had planned for, we feel validated on all of those numbers. And we’ve seen 139% year on year surge in quarterly bookings which is an extraordinary achievement which we believe given that the market which is there and it is also a deliberate result of multi year strategic roadmap which we had laid down when we started this business. We also entered this year with a clear plan which was quarter on quarter and we executed it to perfection in that sense. Despite several hiccups on regulatory front and many hurdles came our way.
But we were able to execute quite diligently. Looking at our financial highlights, our total income for FY26 to date 3039crores which is a 29% growth over the previous year. For the quarter which is quarter four income surged 53% to 1176 crores. What is really important here, apart from the top line growth is the quality of our earnings. Our EBITDA for the year rose to 495 crores. While we were scaling rapidly, we also maintained a resilient EBITDA margin profile of 21.5% in Q4. We have achieved this by capturing the economies of scale that we have built with the new launches and our distributed operation within our portfolio and optimizing our product mix to the maximum.
Even on the liquidity front, we remain quite exceptionally well poised. We concluded the year with a NET debt of 656crores. Our debt equity on gross basis stands at 0.6 which is comfortably below our internal ceiling of 1:1 debt to equity. So we are very comfortable there. And our liquidity buffer was 350 crores at the end of the year which makes us fully funded as far as next year is concerned. In terms of whatever money we need. Between debt and our liquidity buffer, we are well poised to meet all our requirements.
Actually the most strategic milestone that if I was to mention for the last year was a structural shift that we saw in our portfolio mix. We had previously set a target and communicated to the markets also that there will be a 5050 mix between our own land in Thana and the new JDs that we have signed by the year financial year 2027. But very happy to report that we have achieved this milestone one year ahead of schedule in FY26 itself. Now if I was to just look at FY25 numbers, the share of JDA was 22% in booking values and FY26 share of booking pre sales bookings which is there from non Thana land which is outside of our Legacy land was 54%.
I think that has been a significant achievement for FY26 for us and this has been done in an asset light model which is something we’ve been following from day one and we’ve stayed consistent with that model and it has allowed us to penetrate prime MMR micro markets like Bandra, bkc, Wadala, Scion and we have done this without being very capital intensive in terms of land acquisition. So our JDA portfolio now comprises of seven projects with a combined revenue potential of approximately 17,000 crores based on current prices.
This also includes our most recent addition in Kandivali which was added in FY26. Our execution engine also has been firing on all cylinders across entire MMR that wherever we have taken on projects. If we look at in Thana where we have 100 acre land parcel and it has been a massive value creator for us with a total revenue potential of 25,000 crores on that entire land. Currently about 60 acres of that land is under development at different stages and also during the year our aspirational brand, the first project we had launched in the company 10x Habitat which was a large project with 3100 odd homes is fully sold out and also received complete OC for the project.
So this is a major milestone for a very large development that we would have delivered fully in the market and not just the buildings but everything. And we will be moving out of this project. Next would be other deliveries which will happen in the current year. Now Q4 for us was exceptional because it was defined by strategic blitz of major launches that we did. The projects we launched during this period were addressed by G.S. Vadala, address by G.S. Science and both these projects put together released a combined GDV of almost 6400 crores in the market for us.
Apart from this we launched two projects in Thana as well 10X District 9 and Park Street. Park street is a retail development. It’s a small development but it’s value accretive for us and as part of our Strategy Every year we do a certain amount of retail and we have consistently done that for the last three, four years and going forward forward also it is part of our strategy that some element of retail will be launched throughout. So with that, you know, I would say that I kind of encapsulate what we did in FY26, but we are not slowing down.
Over the next 12 to 15 months we are on track to launch two more projects which are both in mind and they are at very advanced stages in terms of approvals. So they will definitely get launched by Q3. Both these projects should be in the market and which will be followed by the Kandivali development which will spill over to not FY27 but will be going into FY28. So FY26 really proved that Raymond Realty could scale with speed and sophistication. And a testimony of this is also if we look at the numbers, our six year CAGR since 2021, that is when we gained some kind of size in terms of booking value.
Presales has been 50% CAGR we have achieved over the six year period. And in terms of reported revenue in P and L, the CAGR has been 84% which is very heartening for us. And it is essentially looking at the go beyond philosophy which we have for the brand. A commitment to beauty, discipline and excellence has been underlined by these numbers. So we built a focused pure play branded real estate development brand with a gross development value of approximately 42,000 crores. We have our legacy land in Thana which a large portion of that is left out.
JDA pipeline is very strong in terms of what has been launched and also in terms of what is looking at being contracted going forward. New projects. We have done all this with a tremendous financial discipline in terms of our debt equity remaining within control, our cash flow is remaining strong and most importantly, we’ve gained the trust of our customers. Clearly all the success that we have achieved is because of our projects being well received in the market and giving us strong pre sales at the time of launch itself.
So going forward our focus remains on driving sustainable growth and delivering consistent long term value to our shareholders. We initially told the markets that we would grow over the years and we have delivered as per plan, year upon year consistently. And whatever promises we have made year on year, we have not faltered on any of those promises. And with that, thank you very much, my opening remarks are over and I will now open the floor for questions.
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 the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We’ll take our first question from the line of Yashes Paramesh from G7 Capital. Please go ahead.
Unidentified Participant
Hi, am I audible?
Operator
Yes, please go ahead.
Unidentified Participant
Hi, Mr. Harmon. Hi to the entire management team. First of all, congratulations on the splendid quarter and really wonderful results you know, provided the whole year. I have a bit of a basic question. It’s just on the. Trying to understand how the collections work. So let’s say Q4FY26 we were to sell 100 rupees of flats or that would be a pre sales booking amount. How would that cash ultimately flow to us over how many quarters or over how many years?
Harmohan Sahni
Yeah, so there is no standard answer to that. It depends from project to project on a weighted
Unidentified Participant
Average.
Harmohan Sahni
So to give you an example, I think that’s the best way to do it. So we’ve launched, let’s say, the project in Cyan, which is to be delivered in four to four and a half years time. So whatever we have sold will get collected over a four year period. And a large part of that is linked with the superstructure getting completed. So in three years time, almost 80% of that cash flow comes to us and for the last year, roughly about 20%. And similarly, if it’s a five year project, then you know, the period will get extended by maybe six more months or nine more months.
So that’s how really that’s the cycle, how it operates.
Unidentified Participant
Understood. So the payment terms are usually kind of linked to where the project is based on the structure and the number of slabs put up. Right?
Harmohan Sahni
That’s right. They are. They’re all construction link payment plans.
Unidentified Participant
Okay, understood. So they’ll obviously differ from project to project.
Harmohan Sahni
That’s right. But, but they’re pretty standard in that sense. I mean if it’s a 20 story building, then you know, by the time you get to 20th story, you would have collected almost 80% of the collection. If it’s a 40 story, you would have collected 80%.
Unidentified Participant
Okay. No, the reason I ask is Raymond builds, you know, puts up floors much faster than anyone else. So I can’t go with the standard assumption. That’s very kind of you
Harmohan Sahni
To say.
Unidentified Participant
Yeah, so that was the first question. And then the second question is, and I asked this because you know, actually I think I’ll that question aside. But I just wanted to express my gratitude for, you know, all the transparency and you know, walking the walk and yeah, happy to be here. Happy to keep, you know, holding shares and yeah, thank you so much and all the best. Looking forward to a great FY27.
Harmohan Sahni
Thank you so much. Really appreciate the kind words.
Operator
Thank you. Take a next question from the line of Ujwal Lal, an individual investor. Please go ahead.
Ujwal Lal
Yes, yes, I’m audible. Yes, thank you for the opportunity and congratulations on the great execution. So my first question is for the last couple of years the pre sales in Pane have been falling. It was around 1950 crores for FY24, then 1800 crores in 25. Then we have done only 1360 crores in FY26 in pane. So are we facing increased competition or just overall market absorption has slowed down over there.
Harmohan Sahni
See the Thana sales is dependent on what is the product we have in the market for that particular year. So we have a mix of products in Thana. We have two BHK inventory, we have three BHK inventories and then we have some retail inventory as well. And of course our highest brand Invictus also has some element of inventory there. But the large portion is 2BHK and 3BHK inventory which are 10x brand and addressed by GS. Now each year we had a different product mix which we could offer in the market.
Because getting approvals and launching products projects is a cycle in itself. But having said that, the straight answer to your question is that in Thana competition has been intense for the last 20 years. Even when we were not present in this market we started six, seven years. But Thana has been an intensely competitive market. And that’s why most people in Thana don’t have pricing power like some of the other markets. Its developers get pricing power after first year of launching of the project.
But Thana has remained more or less very marginal increase
Rishabh Kothari
In prices
Harmohan Sahni
Over the years. And it’s primarily because of competition. So competition yes is there, but it’s always been there. So year on year you may not see growth. Because there is a limitation to how much you can grow in one micro market in one location. Unless you are getting price growth. See the growth can only come either through volume growth or price growth. So if price is not growing, then volume is the only way you can grow. And there is a limitation to how much volume can grow in one micro market in one location.
So that’s the Scenario which is getting played out in Thana. So there is no challenge we are facing but year on year depending on the mix on an average, if you see we would have sold last 4,5 years on an average between 1300 to 1500 crores each year. That’s been our average and that average will not change significantly going forward also so I think is an achievable number because we have a very strong location, one of the best locations locations in Thana that we have. And yeah, so consumer prefers that and like I said pricing still remains attractive in terms of affordability for consumer.
So that’s, that’s really how it plays out. So there is no cause for concern. Nothing that worries us that something is dropping in terms of sales or is becoming difficult. None of that is there.
Ujwal Lal
Okay, thank you for the detailed answer. And also like can you explain the difference across our JDS that create that huge range in the time that we take to bring it to market? Because like some humans we are able to turn around very quickly and some like Mahim which we signed in calendar year 23, we are yet to launch them. So what creates this huge variance?
Harmohan Sahni
Yeah, so. So each deal is unique in terms of a maturity level. B also depends on counterparties, how quickly they move. Since you know JDA is joint development agreement. So the joint word is very important, the first word. So we are also dependent on timelines for some of our partners and counterparties which are there part of it. So some are at advanced stage, they move faster. To give you an example, the BKC project that we did the there the society actually had done a deal with somebody else and they were waiting for seven years.
And during that seven years they had done so much of work that when we came on the scene it took us only nine months approximately to finish everything. Because the society was ready to such a level. And compared to that, when I look at Mahin, it was such a disparate group which was there. A lot of senior citizens were involved in that and managing committee also had issues with some of the residents over there which took time to resolve between themselves and they had done no work. They had just got the idea and they had floated the tender for the first time.
And there it has taken us almost two and a half years. So somewhere the average for a project is, is about 15 months to 18 months. Some may take two and a half years, some may happen in nine, 10 months. And in fact the Vadana project we were able to launch within 6, 7 months of signing because it was a very mature Project and a lot of approvals were already in place. So most of these deals, you know, are opportunistic. They don’t come at the same stage of completion to us. So it all depends on that.
Ujwal Lal
Okay. And are we also planning to launch a mixed development having commercial and office space of over 1 million square feet in Thane? Like we have seen some layout plans over social media. Just if you can clarify or announce this.
Harmohan Sahni
See, as of now we have not announced any commercial development in Thana. But we have an area which is master planned and earmarked for commercial development. And it’s not a new development. It’s been originally like this for the last seven, eight years. We will activate it at the right time. That time doesn’t seem to be very far. But as of now we haven’t pressed the button.
Ujwal Lal
Okay. And lastly, how is the JDA pipeline looking? Like, because like last year we had guided for 5,000 to 10,000 addition of new GDB we did 3,000. But like are the redevelopment market getting overheated because of which we are not building? Or like, how will new business development look going forward?
Harmohan Sahni
See, business development has been pretty strong. We have evaluated a lot of projects. And you are right to an extent that there are some parts of the market which are overheated. And we have to be cautious in and disciplined in the deals that we take. So and we have followed the extreme form of discipline. We had quite a few deals in the pipeline which currently are undergoing different stages of negotiation and documentation. So some of those deals are spilled over into this year, FY27. And you would certainly hear from us more and more deals.
The pipeline is pretty strong.
Ujwal Lal
Okay, if I may squeeze the last one. So I was just seeing the numbers for Bandra’s first JDF. We had originally guided for a 2000 crore plus revenue. But do you think given the current market scenario we can exceed that number significantly?
Harmohan Sahni
So we had guided about I think 2100 or so if I’m not mistaken, right in the beginning for the first one, the address by GS in Bandra. So we will definitely do better than that on the top line.
Ujwal Lal
Thank you. Thank you. And all the best. Congratulations for great execution.
Harmohan Sahni
Thank you so much.
Operator
Thank you. We’ll take our next question from the line of Darshil Zaveri from Crown Capital. Please go ahead.
Darshan Jhaveri
Hello. Good evening sir. Thank you so much for taking my question. Firstly, congratulations on a really great set of numbers, sir. Hopefully I’m audible. Hello.
Operator
Yes, please go ahead.
Darshan Jhaveri
Yeah, yeah, yeah. Hi sir. So just like one Question regarding the margins. So how should we look at our EBITDA margins or like. Or pat margins that you would say? Because just want to understand, like in FY26 we had a higher revenue but a lower pat. So just wanted to understand how would that pat margin. So just want to understand that like how do, how do we do. Here we are looking at fat margin pat or ebitda, whatever you would be comfortable, sir.
Harmohan Sahni
Yeah, so see if we, if you look at the EBITDA margin that we have reported for FY26, around 16% is what we have reported on a blended basis. And we improved that number from the first nine months cumulative that we had reported, which was around 13% and the improvement has happened to 16%. Now what really happens is it’s a cycle for all of these projects. Now when we launch a project at that time the beta margin for a project is pretty low. But when we contract a deal, we don’t look at anything less than 20% margin.
We don’t sign any ADA which will give us less than 20% EBITDA margin. But it may start off in single digits when we launch the project for the first six months and then it creeps up and towards the end it gives a higher. But on a blended basis it gives us 20% now. So the blended margin for the company will depend on how many project launches have happened recently and how many mature projects are there in the mix. So it will be in a range, it will never be a specific point or you will not be able to plot and say, oh, it will keep growing, keep growing, keep growing and one day it will hit 100%.
That’s never going to happen. So. Because if anything which keeps growing will eventually hit 100%. On a lighter note, I’m saying that.
Darshan Jhaveri
No, no, no, fair enough, sir. I understand that
Harmohan Sahni
What really happens. So I mean to, to answer your question squarely, I mean our target is to hit a 20% EBITDA margin as quickly as we can. And that will happen. Let’s say if I have 10 projects and out of that I have seven projects or six projects which are mature and I am introducing two, three new projects on an ongoing basis every time, we will be easily able to hit that margin profile. And we have anyway on an upward trajectory, 16% to IGA and all these projects we have launched in Q4 will mature over the next 12 months.
So. So FY27 looks good and FY28 looks even better.
Darshan Jhaveri
Okay, fair enough, sir. Just wanted to like, understand like, so when we Have a lot of JDs. So right now I think in FY27 you’re planning two JDs. Right. So just when we start launching them so quarterly the blips can come because that a new launch has happened for EBITDA blip income. But overall for the full year we can expect like the margin trajectory to go up is the correct understanding.
Harmohan Sahni
Yeah. FY27, my suggestion would be to assume flat to marginally upward trajectory. Like we’ve delivered 16%. So I mean my suggestion or guidance would be to assume between 16 and 18% as the EBITDA margin on a blended basis for FY27.
Darshan Jhaveri
Oh, okay, fair enough, sir. And so just in terms of revenue recognition, sir, what is the policy that we follow? So will it be like as the project complete, we, you know, book a bulk of revenue or is it project completion basis? Because this one. Because the quarter on quarter revenue will be quite fluctuating. Right. Or how should we look at the revenue, sir,
Harmohan Sahni
Our revenue does not fluctuate simply because we have consistently followed percentage completion method for profit booking for all of our projects right from inception. And that’s why you would see consistency and it’s a true and fair view of the business in that sense. Because as the progress is going and based on how much sales have happened, the revenue gets recognized. So you will not see lumpiness in our reporting, which is the case with some of the other players, because a lot of them follow completed contract method.
So every time a project completes, suddenly a lumpy amount comes and then next quarter it falls. For us, that will not be the case. And the reason for that is the method of accounting that we follow is percentage completion.
Darshan Jhaveri
Okay, so just to understand, if we follow percentage of completion, so then ideally just so the Q4 revenue run rate can be maintained because as we complete more like the revenue will be in. In orderly manner. Right. So in terms of our revenue, we could have like the Q4 run rate. I’m just asking for an average, not like an exact number, sir. But that run rate would be the range of. Right. What we would be doing. Because that’s how our quarterly, you know, we’ve been just growing revenue. With more and more launches coming, our revenue will keep on increasing when we follow percentage of completion.
Is that fair to understand?
Harmohan Sahni
Yes and no. But the, the fair way to look at this would be what was the last year’s total number and what will be the growth on an annual basis? Because this is also a seasonal business, we have to be mindful of that because each Quarter is not exactly the same as the other quarter. Q1 and Q2 are usually light and Q3 and Q4 are slightly better. Because Q3, around Q3 you have the festive season. In Q4, all the other pushes are there and weather is better. And Q2 you have the monsoon in Bombay. And Q1, all the exams and also the inauspicious period plays a role.
It’s a large ticket purchase. So because of that, the right way to look at it is last year’s sale and assume what will be the increase going forward. And we’ve always given a guidance that you can expect a minimum 20% growth from a on the pre sales number and on the top line as well. And for FY27, we will definitely do better than that is all I can tell you just now.
Darshan Jhaveri
Okay, fair. Fair enough. So and this last question from Ayan sir, like in terms of business development. So we have, you know, gone for a lot of micro markets. Like are we looking anything in, you know, South Bombay in terms of redevelopment or something? Like is that like place where, you know, we are looking at what other micro market are we targeting? Sir,
Harmohan Sahni
South Bombay. We are very cautious because we have a certain view on this market. And we will only be present in South Bombay market if it makes sense to us in terms of deal structure and the returns that we will get. And the other micro markets we are looking at is the western suburbs and eastern suburbs, primarily western suburbs is where we are focusing a lot. And currently we’ve got a lot of projects around bkc and that remains our focus area because that’s a very strong employment hub, part of the city.
And if we can give products which are affordable luxury, we believe that there will always be demand for that irrespective of the market cycle also.
Darshan Jhaveri
Okay, fair. Fair enough. That’s it. From my side. So thank you so much. All the best.
Harmohan Sahni
Thank you.
Operator
Thank you. Next question is from the line of Ishita Lodha from Swan Investments. Please go ahead.
Rakesh Tiwary
Thank you for the opportunity and congratulations for a strong quarter. So first question is, what is our effective economic interest in the Kandivali project?
Operator
Sir, you’re on mute.
Harmohan Sahni
Yeah, Ankur, you want to take that?
Unidentified Participant
Hello.
Operator
Yes, sir, we can hear you.
Unidentified Participant
Yeah. Okay. Can you repeat the question?
Rakesh Tiwary
What is our effective economic interest in Kanderji project?
Unidentified Participant
Yeah, so the gross GDP is 3000 crores for our Kandiwali project. And at the same time we are looking for a margin of around the same. What we have guided around 20 to 22%.
Harmohan Sahni
Ankur she is asking what is your revenue share?
Unidentified Participant
Yeah, revenue share is 70% for Raymond. For us it’s a 70%.
Rakesh Tiwary
Okay. And how will the sales response for Pokhran Road project and Cyan project bin in FY27 so far.
Harmohan Sahni
So I’ll take that, Ankur. So see, the Pokhran road is the entire 100 acre land in Thana. We’ve sold close to 1400 crores as pre sales during the year. So it’s been pretty strong and very good and consistent with the earlier years. As far as the Scion project is concerned. Scion was launched only in the month of February. And we have seen a very, very strong response on that. I mean even in a short period of time while we had only few days to capitalize, we’ve seen a good response. And it’s a very insular micro market.
Science. There is very little migration which happens in science or people within science only buy science. But it’s a strong micro market and the actual numbers are there. In our investor presentation. You can. You can look at the actual numbers. The details are given in terms of units square footage value. You will find that in the investor deck.
Rakesh Tiwary
Yeah. Okay. Because it was showing only 4% of the value launch sold in time. That’s why I was asking. So.
Rishabh Kothari
So
Rakesh Tiwary
What
Harmohan Sahni
Is the concern with that? You have to start somewhere. When you start selling,
Rishabh Kothari
You start at 1%. Go
Harmohan Sahni
To 2, 3, 4. That’s how you will sell. Because only few days we had. It’s not as though we launched and we had one year to sell.
Rakesh Tiwary
Right? Okay. So
Unidentified Participant
We have launched on 24th of March.
Harmohan Sahni
20. 24th of March. Sorry, my mistake. We launched, we only had one week.
Rakesh Tiwary
Okay. Also to get 1300 to 1500 crores of annual pre sales in Thane. How much GDV do we have to launch every year?
Harmohan Sahni
We already have enough GDV which will serve us for the next six months. And we have two more launches which are planned in. And they will happen during the year. But as of now we have enough inventory. I mean we are not worried on the inventory front. Actually, last year we had a situation where in Q1 and Q2 we were very low on inventory. And that was a situation we were facing. But we no longer have that situation. We’ve already launched enough in H2.
Rakesh Tiwary
Okay. And do we have faced any impact on the construction cost due to the commodity price escalation because of the war Significant that has. That can result in EBITDA margin.
Harmohan Sahni
So construction cost impact will actually play out over the longer period of time. But we’ve done some scenario building and we are experiencing expecting about 3,4% impact on cost. If this goes on for a long period of time, if it dies out in the next two months or three months, you will not even see that kind of impact. But the absorption capacity for that cost increase is there in the market and we will pass it on. I don’t foresee any impact on EBITDA margins because of this.
Rakesh Tiwary
Thank you so much.
Harmohan Sahni
Yes, you’re welcome.
Operator
Thank you. We’ll take our next question from the line of Rishabh Kothari from Ashish Shah Investment Advisors. Please go ahead.
Rishabh Kothari
Yeah, first of all, congratulations sir for posting good set of results. My question is to the head of investor relations, Sunny Desa. So my question is, despite the strong execution, scaling JDA portfolio and healthy growth visibility, the company is still trading at relatively lower valuation. Sir, do you think the company can be more proactive in engaging with the domestic institutions, mutual funds and investor conferences to improve the visibility and let’s say communicate to Raymond, to the investors the Raymond Realty story, better to the broader market.
Sir, over to you.
Sunny Desa
So hi. Yeah, thanks for your question. I think when it comes to investor relations and engagement with various stakeholders, whether it is the sell side analyst community or the institutional investors, there has been adequate, you know, interaction and engagement that has been happening right from July 1, the day when we got listed till date. You are right that overall the market cap and the performance of the stock has not been great. However, our endeavor is to focus on the business and ensure that the narrative has been shared with all stakeholders at all times in the most transparent manner.
And that’s exactly what we’ve been doing. And but our belief is that as long as the business continues to walk the talk and perform with the numbers that we have, eventually we will not be ignored by the markets.
Harmohan Sahni
You know, it’s a journey always and it’s never a point in time. We got separately listed somewhere in July and we have not even completed 12 months after that. And you’ve seen the result of posting our Q4 numbers. So I guess market is also waiting to see, you know, quarter on quarter in terms of consistency for six, eight quarters they’ll watch us, I think one or two quarters more. And you saw today what happened to the market after they saw the results. So I guess that faith will come with consistency.
And like I said, it’s always a journey. And I mean we as management are very patient about it. So we would request if you could share some of our patients
Rishabh Kothari
Fair enough, fair enough sir. And thank you. And so my next question is the. As per the presentation sir, the company has around 4,000 crores of pending collections from sold inventory While financial year 26 operating cash flow has been negative due to growth, investments and approvals. So going forward should we expect operating cash flows to turn positive in financial year 27 as collections accelerate or will negative cash flows continue for some time because of the ongoing expansion phase?
Harmohan Sahni
So let’s look at it this way. That Thana, which is my own land releases about 450 to 550 crores of cash for me every year. So that’s the internal accruals which I get from Thana straight away. Now the JDA’s which we had launched in FY25, they also will start throwing out some amount of cash, let’s say 150. So roughly about 600 crores you can say is 600. 650 is internal accrual that we get which we generate. And then in terms of investment into new deals last year we had to launch a lot of projects and that’s why we had to invest in the approval costs and all because we are not buying land.
So that’s one straight saving grace that we have. So we are not capital intensive in that extent but approval costs are pretty substantial which go to the government and only then we are able to launch these projects. So the short answer to your question is going forward for the next two years we will be cash negative on an overall basis but internal accruals will keep on growing and we will keep reinvesting them in building the balance sheet and growing our portfolio because growth, growth has a price to be paid and cash flow is that price you have to pay but you get, get it back in terms of P and L and growth of the balance sheet.
Rishabh Kothari
Okay. All right, fair enough. So got it. Thank you. Okay sir, so thank you and all the best for the next quarter. Looking forward to have the next call with you sir.
Harmohan Sahni
Thank
Rishabh Kothari
You. Thank
Operator
You. Next question is from the line of Tejas Khandelwal from Prudent Equity. Please go ahead.
Tejas Khandelwal
Oh hi sir. Thank you for the opportunity and congratulations for the great set of numbers. So sir, we have been, we have been tracking some recent reports around ceramic plant shutdowns in Morbi because of gas supply constraint. So is it creating any meaningful supply side description for our business?
Harmohan Sahni
The short answer is no. We have suppliers who are continuing to supply to us at the contracted rates that we have. And like I answered in the earlier one, only if this continues For a substantial period of time I think there will be some sustainable impact on cost. But if it gets over in the next two, three months, I don’t think there will be anything significant which will impact our EBITDA margins.
Tejas Khandelwal
Okay. Okay. Got it sir. And sir, any guidance in on the borrowing side if you can give for FY27.
Harmohan Sahni
So we ended the last year which was FY26 at point 6 debt to EBITDA. And we have internally kept a discipline that we will not exceed one is to one debt to equity. And we have communicated that to the markets as well. So whatever we do, we will stay within that.
Unidentified Participant
Thank you. That’s all from us.
Operator
Thank you. We’ll take our next question from the line of Randir Singh from Randy Huf. Please go ahead.
Unidentified Participant
Thanks for the opportunity sir. Hello.
Operator
Yes and please go ahead. We can hear you.
Unidentified Participant
Maintain.
Harmohan Sahni
But. Many guidance. Average margin or last quarter. May Kistaka Milake margin key delivery Korea blended margin. Or. Actually investor presentation upload. Kari hair full breakup.
Operator
Thank you. Next question is from the line of mehul Panjwani from 40 cents. Please go ahead
Unidentified Participant
Sir. Thank you so much for the opportunity. I am new to tracking real estate sector. So I just want to understand how do we arrive at the gross development value? That is my first question.
Harmohan Sahni
So gross development value is nothing but an estimate of the total area that you will generate for sale. And multiply that with the current rate prevailing in the market. And that multiplication just gives you the gross development value.
Unidentified Participant
Right. So so as and when we buy new land and you know we have more visibility, the the GDV keeps changing. Is it?
Harmohan Sahni
That’s right.
Unidentified Participant
Okay. And and like like how you very transparently quoted that this is our gdv. So do all real estate companies have this visibility that how much they have DBV and do they communicate? I mean listed players.
Harmohan Sahni
All the good ones will disclose this.
Unidentified Participant
Right? Right. Thank you sir. And second question sir, because we have operated in a very specific market which is Thane. So who are top three competitors in the Thane market?
Harmohan Sahni
So Thane is one of the markets I operate in. Thana is now about 45% of the market that I operate in. 55% I operate in other markets but specific to Thana. If I was to answer your question, all the big players are in Thana. You can imagine any big name. All of them are there. Loda is there. Adani is there. Oberoi is there. Kalpatru is there. Piramal is there. And some of the local players are also there. The Entire universe. It’s a very large, large market, very deep market, very robust market. Largely investor is absent from this market.
And it’s purely, purely, almost to the extent of 90, 95% actual user driven. A lot of people take loans, almost 80, 85% people take. So salaried people will be there. And all the local businessmen who you know, really have factories in Biwandi
Unidentified Participant
And all and Kalyan
Harmohan Sahni
Are also living in Thana because it offers that kind of living experience. So competition there is, there is enough and more competition in Thane.
Unidentified Participant
Right sir. Or a question is regarding Pushna Changa. So because you know, I am not very familiar with. So is as big a real estate market as the rest of Mumbai or how would you, I mean say how big would be Thane or how small would be Thane compared to the rest of Mumbai?
Harmohan Sahni
So within Thane also there are several micro markets. Thane actually is a district
Unidentified Participant
And
Harmohan Sahni
It’s pretty large. Almost 40% of MMR regions volume happens in Thana district. But Thana district will be a little misleading to talk about when we talk about our property because our property is in a specific micro market which is between Pokhran road number one and Pokhran road number two, which is, which is one of the prime localities of Thana. And they are at the highest price point in that entire district. Because Thana market ranges somewhere between 7,000 rupees a square foot and goes all the way up to 24,25,000 rupees a square foot.
So we are in the market where 23,000 to 25,000 rupees a square foot is the range.
Unidentified Participant
Right. So is this Pokhran 1 to Pokhran 2 specific because the Raymond had their manufacturing sites out there or we have bought additional land.
Harmohan Sahni
So this, this is our legacy land. I mean 50, 60 years ago the factory was set up there and then the factory shifted from there about 12, 15 years ago. And since then this land has been available for use as a asset. And about six to seven years ago we started real estate business as an experiment on that land. And then we expanded from there.
Unidentified Participant
Right, sir, thank you so much for the elaborate answering. Thank you. Appreciate that.
Harmohan Sahni
Thank you.
Operator
Thank you. Ladies and gentlemen. We’ll take that as the last question for today. I would now like to hand the conference over to Mr. Harmohan Sahani for closing comments. Over to you, sir.
Harmohan Sahni
Thank you so much everybody for being on the call and being patient with us. Over the last two years and especially since July, since we’ve got separate listing. Really appreciate your patience and hope to see you in the next quarter. Thank you.
Operator
Thank you, sir. On behalf of Antique Stock Broking limited, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.