Raymond Realty Q2 Results: Profit falls despite strong sales momentum; booking value jumps 98%

Real estate company Raymond Realty Ltd on Tuesday (October 27) reported an 11.8% year-on-year decline in net profit to ₹53.1 crore for the second quarter of FY27, compared with ₹60.2 crore in the year-ago period.

Revenue grew 7.4% year-on-year to ₹749 crore from ₹697 crore. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 15% to ₹106.3 crore from ₹92.4 crore, while the EBITDA margin improved to 14.2% from 13.3% a year earlier.

The company reported a 98% year-on-year increase in booking value to ₹902 crore in the second quarter of FY27, while collections rose 67% to ₹682 crore. For the first half of FY27, booking value increased 111% year-on-year to ₹1,602 crore, while collections grew 57% to ₹1,233 crore.

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The company said the income growth was achieved without any new project launches during the quarter, driven by sales in its existing Address by GS portfolio and price realisations. It expects margins to progressively normalise and remains on track to meet its FY27 EBITDA margin guidance of 17–19%.

Raymond Realty's total portfolio has a gross development value (GDV) of around ₹52,000 crore, comprising its owned Thane land parcel and joint development agreement (JDA) projects in the Mumbai Metropolitan Region (MMR). The booking value mix in Q2 FY27 comprised 57% from Mumbai JDA projects and 43% from the owned Thane land parcel.

The company's 100-acre Thane land parcel has a revenue potential of around ₹25,000 crore. Approximately 65 acres are under development, representing around 6.7 million square feet of RERA carpet area and a revenue potential of ₹16,500 crore. Projects on the land parcel have recorded sales of around ₹9,770 crore and collections of ₹7,977 crore to date.

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During the quarter, Raymond Realty received the occupancy certificate (OC) for Tower B of Address by GS Season 1 in Thane, comprising 270 units and a total RERA carpet area of 3,44,478 square feet. The certificate was received ahead of the proposed RERA completion date of March 2028.

The company's JDA portfolio comprises eight projects with a combined revenue potential of around ₹27,000 crore. Four projects in Bandra, the Bandra-Kurla Complex (BKC), Wadala and Sion have been launched, representing around 2.8 million square feet of RERA carpet area and a revenue potential of ₹11,500 crore. These projects have recorded sales of around ₹3,430 crore and collections of ₹857 crore to date.

Raymond Realty plans to launch two JDA projects in Mahim over the next two quarters, with a combined GDV of ₹4,100 crore. Mahim 1 has a GDV of ₹1,800 crore and a RERA area of 0.41 million square feet, while Mahim 2 has a GDV of ₹2,300 crore and a RERA area of 0.39 million square feet.

The company ended the quarter with gross debt of ₹1,220 crore and net debt of ₹912 crore, with a debt-to-equity ratio of 0.8 times, below its ceiling of 1.0 times. It had a liquidity buffer of ₹308 crore, which it said was sufficient to fund construction spending for the next year. Its cost of debt remained stable at around 9.60%.

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Raymond Realty's total interest cost for Q2 FY27 stood at ₹44 crore, comprising around ₹27 crore on bank borrowings and ₹17 crore in interest payable to government authorities, including the Brihanmumbai Municipal Corporation (BMC), Thane Municipal Corporation (TMC) and Maharashtra Housing and Area Development Authority (MHADA), for additional floor space index (FSI) and approvals.

For FY27, the company remains on track to deliver around 20% growth in pre-sales, a return on capital employed (ROCE) of around 20%, an EBITDA margin of 17–19% and a profit after tax (PAT) margin of 9–10%.

Harmohan Sahni, Managing Director and CEO, Raymond Realty Limited said, "Guided by our 'Go Beyond' ethos, we carry forward the scaled execution and strategic clarity that defined our success last year into H1 FY27. Our performance during this period reflects strong operational momentum, validating our execution capabilities and the deep trust homebuyers place in us.

Nearly doubling our quarterly pre-sales without new launches, alongside a 67% surge in collections, highlights our intense focus on operational and cash flow efficiency. Delivering a key Thane tower 18 months ahead of its RERA timeline stands as a strong testament to our construction capabilities.

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With a disciplined capital approach and a ₹4,100+ crore MMR launch pipeline ahead, we are well-positioned to achieve our full-year growth guidance and compound returns for our shareholders."

Shares of Raymond Realty Ltd ended at ₹597.90, up by ₹26.50, or 4.64%, on the BSE.