/*** blogpostTitle: Raymond Realty FY26: Pre-sales surge, JDA scale-up, and the cashflow trade-off blogpostSlug: raymond-fy26 blogpostCoverImageDescription: Ultra-realistic corporate financial visual of a modern desk scene with a large monitor showing a clean dashboard of Raymond Realty’s FY26 metrics: a line chart rising from FY25 to FY26 for total income (2,351 to 3,039 in INR crores), a bar chart for pre-sales with a sharp jump in Q4 (636 to 1,519), and a margin panel showing EBITDA margin moving from 18.6% in FY25 to 16.3% in FY26 with a highlighted Q4 margin of 21.5%. Include a small debt panel showing gross debt 1,014, cash 358, net debt 656. Background subtly suggests Mumbai and Thane city skyline silhouettes without text or logos. Clean lighting, professional investor-report aesthetic. blogpostShortTitle: Raymond Realty FY26 pre-sales and JDAs ***/

Raymond Realty FY26: Pre-sales surge, JDA scale-up, and the cashflow trade-off

Raymond Realty closed FY26 with a combination of fast pre-sales growth and a deliberate push into an asset-light joint development model across Mumbai. The company reported total income of INR 3,039 crore for FY26, up 29% year on year. Q4FY26 was sharper, with total income of INR 1,176 crore, up 53% year on year.

Profitability expanded in absolute terms, but the margin picture reflected the realities of scaling a launch-heavy portfolio. EBITDA for FY26 stood at INR 495 crore with an EBITDA margin of 16.3% versus 18.6% in FY25. In Q4FY26, EBITDA was INR 253 crore and the margin returned to 21.5%, showing how project mix and maturity can change quarterly outcomes.

Pre-sales remained the company’s most important operating indicator in FY26. The company recorded INR 3,023 crore of pre-sales for the year, up 31% year on year. Q4FY26 pre-sales were INR 1,519 crore, up 139% year on year, supported by a cluster of launches in both Thane and Mumbai.

FY26 performance in numbers

The financial statements in the investor presentation are presented on a like-to-like basis post demerger, including historical performance of the erstwhile Raymond Realty division prior to April 01, 2025.

Customer collections were INR 1,725 crore in FY26 versus INR 1,887 crore in FY25, reflecting timing differences linked to construction-linked payment plans and project stage. Management reiterated on the call that collections depend on the nature and duration of individual projects, with a large portion typically collected as superstructure progresses.

The portfolio shift: Thane base, Mumbai JDAs as the growth lever

Raymond Realty’s portfolio narrative is built around two pillars.

First is the company’s own land in Thane, described as a roughly 100-acre land bank. The deck cites a potential revenue of about INR 25,000 crore for this land bank, with around 60 acres under ongoing development and around 40 acres classified as upcoming development. The presentation also highlights delivery execution, including the milestone of completing occupancy certification for all towers in TenX Habitat and delivering 10 towers in the maiden project.

Second is the company’s expansion through joint development agreements. The investor deck cites JDA revenue potential of about INR 17,000 crore across seven projects, and a total potential revenue of about INR 42,000 crore across the combined Thane and JDA portfolio.

On the earnings call, management framed FY26 as a year of structural validation. The company had earlier communicated a target of achieving a 50:50 mix between Thane and JDAs by FY27. Management stated that this milestone was achieved in FY26 itself, with JDA booking value share rising from 22% in FY25 to 54% in FY26.

The JDA map in the investor presentation shows projects concentrated in a perimeter around BKC, which management described as a global financial hub with sustained demand. The deck includes revenue potential estimates for each JDA location, including Wadala at about INR 5,000 crore, Kandivali at about INR 3,000 crore, and Bandra and BKC at about INR 2,000 crore each.

Launch momentum and early sell-through

The company’s FY26 pre-sales were driven by both ongoing projects and a set of launches in the second half.

New launches highlighted in the deck include The Address by GS in Wadala and Sion, TenX District 9 in Thane, and Park Street, a commercial retail development in Thane.

The investor presentation provides early sell-through indicators:

• Wadala (The Address by GS): total RERA carpet area about 1.4 msf; about 30% sold.
• Sion (The Address by GS): total RERA carpet area about 0.4 msf; about 4% sold.
• TenX District 9: total RERA carpet area about 0.8 msf; about 12% sold.
• Park Street retail: total RERA carpet area about 0.05 msf; about 73% sold.

In the Q&A, management clarified that Sion was launched late in the quarter and stated on the call that it was launched on March 24, leaving limited selling days in FY26.

The annexures also present project-level booking and collection data for the quarter, showing where bookings and recognized revenue were concentrated. For instance, in Thane, TenX Era continued to show high sell-through at about 90% sold, while The Address by GS Season 1 was about 98% sold. In JDAs, Bandra showed project-to-date bookings of 458 and launched units sold of about 62%.

Margins, cashflows, and the cost of growth

One of the most important clarifications in the concall was how management views margins during a launch-heavy phase.

Management stated that while the company targets project-level EBITDA margins of at least 20% when signing JDAs, margins may start in single digits in the first six months after launch and improve as projects mature. This explains the gap between Q4’s 21.5% margin and the full-year 16.3% margin.

For FY27, management suggested a blended EBITDA margin range of 16% to 18%.

Cashflow was the more mixed part of FY26. The cash flow table shows:

• Opening balance: INR 600 crore
• Total inflow: INR 1,759 crore
• Approval costs: INR 1,207 crore
• Construction costs: INR 956 crore
• Net operating cash flow: negative INR 1,053 crore
• Bank loan inflow: INR 811 crore
• Closing balance: INR 358 crore

In the Q&A, management addressed operating cash flows directly, stating that for the next two years the company expects to be cash negative on an overall basis as internal accruals are reinvested to fund approvals and build out the pipeline.

The presentation adds a project cashflow framing through a monetisation table for launched projects:

• Pending collection from sold inventories: INR 4,000 crore
• Estimated value of unsold inventory: INR 14,098 crore
• Total estimated collection: INR 18,098 crore
• Remaining estimated project cost: INR 9,573 crore
• Estimated surplus from project cashflow: INR 8,526 crore

This is not the same as reported revenue or free cash flow, but it provides a view of how collections and remaining costs may play out across the launched inventory pool.

Leverage remains moderate in the company’s stated framework. The deck reports gross debt of INR 1,014 crore, gross cash of INR 358 crore, and net debt of INR 656 crore. Management also reiterated a ceiling of not exceeding 1:1 debt-to-equity.

What management is committing to next

The company’s strategy slide summarizes targeted annual growth and returns as around 20% each for pre-sales growth, revenue growth, and ROCE. Management reiterated in the concall that the company has guided for minimum 20% annual growth in pre-sales and top line and stated that FY27 should do better than that, without providing a specific numeric target.

On the project pipeline, management stated that two Mahim projects are at advanced stages of approvals and should be launched by Q3, and that the Kandivali development is expected to spill over into FY28.

The call also emphasized discipline in business development. Management acknowledged that some parts of the redevelopment market are overheated and stated the company has maintained discipline, with several projects in negotiation that could spill into FY27.

Takeaways

FY26 shows Raymond Realty’s ability to combine execution on its Thane land bank with a faster-than-planned scale-up of its Mumbai JDA portfolio. The pre-sales acceleration in Q4, along with the early sell-through in new launches like Wadala, supports the company’s claim that demand is strong for reliable, branded developers in MMR.

The trade-off is visible in cash flows. Approval costs and construction investments pushed FY26 operating cash flow negative, and management indicated that cash reinvestment will likely continue for the next two years as the company prioritizes growth.

For FY27, the key signposts are clear from management’s own commentary: delivery of planned launches in Mahim, progression of newly launched projects from early-stage to maturity, and the ability to keep margins within the guided 16% to 18% range while maintaining leverage discipline.