Keystone Realtors posts Rs 9.82 crore September-quarter loss

Keystone Realtors Limited posted a standalone loss after tax of Rs 9.82 crore for the quarter ended September 30, 2026, compared with a Rs 22.14 crore profit a year earlier, as revenue from operations fell 69% to Rs 103.20 crore. The result followed a Rs 6.60 crore profit in the quarter ended June 30, 2026.

Why did Keystone Realtors report a September-quarter loss?

Keystone Realtors reported the loss because total expenses of Rs 162.08 crore exceeded total income of Rs 148.99 crore in the September 2026 quarter, resulting in a loss before tax of Rs 13.09 crore. In the September 2025 quarter, total income was Rs 392.26 crore and total expenses were Rs 362.42 crore, producing a profit before tax of Rs 29.84 crore.

The quarterly expense mix changed from the preceding June quarter. Construction cost declined to Rs 103.47 crore from Rs 132.76 crore, but changes in inventories reduced expenses by Rs 20.13 crore in September, compared with a Rs 88.19 crore reduction in June. Employee benefits expense was Rs 28.30 crore, finance costs were Rs 12.12 crore and other expenses were Rs 33.74 crore.

Other income was Rs 45.79 crore in the September quarter, down from Rs 57.62 crore a year earlier but above Rs 37.03 crore in the June 2026 quarter. The company reported an operating margin of negative 32% and a net profit margin of negative 10% for the September quarter, compared with 8% and 7%, respectively, a year earlier.

Walker Chandiok & Co LLP reviewed the unaudited standalone results and issued an unmodified conclusion dated November 4, 2026. The board approved the September-quarter and half-year results on the same date; the standalone statements include the financial information of Rustomjee Evershine Joint Venture and Lok Fortune Joint Venture.

How much did Keystone Realtors’ revenue decline?

Keystone Realtors’ revenue from operations fell to Rs 103.20 crore in the quarter ended September 30, 2026, from Rs 334.64 crore in the corresponding quarter a year earlier. Revenue was nevertheless higher than Rs 88.87 crore in the June 2026 quarter, a sequential increase of Rs 14.33 crore.

For the half year ended September 30, 2026, revenue from operations was Rs 192.07 crore, against Rs 403.07 crore in the prior-year half. Total income declined to Rs 274.89 crore from Rs 514.26 crore, while total expenses decreased to Rs 278.53 crore from Rs 472.47 crore, leaving a loss before tax of Rs 3.64 crore versus a Rs 41.79 crore profit before tax.

Keystone Realtors operates in one business segment, real estate and allied activities. The filing does not provide a project-level, geographic or separate business-segment split of revenue and profit, so the Rs 230.77 crore year-on-year reduction in quarterly operating revenue cannot be allocated among individual developments from this disclosure.

What happened to Keystone Realtors’ operating cash flow?

Keystone Realtors used Rs 194.58 crore in operating activities in the half year ended September 30, 2026, compared with Rs 123.88 crore used in the prior-year half. Cash used in operations rose to Rs 184.16 crore from Rs 118.33 crore, while taxes paid, net of refunds, were Rs 10.42 crore.

Working-capital movements included a Rs 107.88 crore increase in inventories, a Rs 56.63 crore decrease in trade payables and a Rs 26.41 crore decrease in other liabilities. These uses were partly offset by a Rs 11.71 crore decrease in trade receivables and a Rs 18.97 crore increase in other financial liabilities; operating loss before working-capital changes was Rs 13.72 crore.

Investing activities generated Rs 191.77 crore during the six months, compared with Rs 141.39 crore used in the prior-year period. Keystone Realtors received Rs 306.69 crore in loan repayments and paid Rs 188.92 crore for loans given, while bank deposits placed were Rs 290.47 crore and deposits matured were Rs 296.35 crore.

Financing activities used Rs 37.79 crore in the September 2026 half. Borrowing proceeds were Rs 212.73 crore and repayments were Rs 215.54 crore, while finance costs paid totalled Rs 28.59 crore. Combined cash flows reduced cash and cash equivalents by Rs 40.60 crore to Rs 220.89 crore at September 30, 2026, from Rs 261.49 crore at March 31, 2026.

How did Keystone Realtors’ debt-service indicators change?

Keystone Realtors’ debt-service coverage ratio declined to 0.07 in the September 2026 quarter, from 0.38 in June 2026 and 0.72 in September 2025. Its interest-service coverage ratio was 0.85, down from 1.65 in the preceding quarter and 10.15 a year earlier.

The company defines debt-service coverage as profit before interest expenses, depreciation and deferred-tax expenses divided by interest on borrowings and lease payments plus principal borrowings and lease repayments. Interest-service coverage uses the same stated earnings measure divided by gross finance costs, which include finance costs before inventory capitalisation.

Total borrowings were Rs 635.64 crore at September 30, 2026, consisting of Rs 199.44 crore in non-current borrowings and Rs 436.20 crore in current borrowings. At March 31, 2026, non-current borrowings were Rs 334.37 crore and current borrowings were Rs 302.49 crore, taking total borrowings then to Rs 636.86 crore.

Keystone Realtors’ debt-equity ratio was 0.24 at September 30, compared with 0.25 at March 31. The current ratio declined to 3.10 from 3.40, while the company’s inventory balance increased by Rs 107.88 crore and current assets decreased to Rs 3,304.21 crore from Rs 3,372.29 crore.

Conclusion

Keystone Realtors’ standalone September-quarter result moved from a Rs 22.14 crore profit a year earlier to a Rs 9.82 crore loss as operating revenue declined from Rs 334.64 crore to Rs 103.20 crore. The half-year filing also shows Rs 194.58 crore of operating cash outflow, higher inventories and a September-quarter debt-service coverage ratio of 0.07.

The next results will show whether revenue improves from the Rs 192.07 crore reported in the first half of the year and whether inventory and payable movements continue to absorb operating cash. Readers can also track changes in the company’s current borrowings of Rs 436.20 crore and in the debt-service and interest-service coverage ratios disclosed for its listed non-convertible debentures.