Rustomjee ends FY26 with record pre-sales and pipeline momentum

Keystone Realtors, known for the Rustomjee brand, closed FY26 with its highest ever quarterly pre-sales and a full-year delivery that matched management’s headline guidance. For FY26, pre-sales stood at ₹40.22 billion, up 33% year on year. Q4FY26 pre-sales were ₹13.46 billion, a 58% year on year jump. Collections for FY26 were ₹26.22 billion, up 13%.

Financially, the year was marked by operating cash flow generation of ₹7.15 billion and a continued net cash position. The company highlighted a gross debt-to-equity ratio of 0.26:1, and pointed to the CRISIL AA- rating with stable outlook as an external validation of balance sheet discipline.

While the operational numbers were strong, the consolidated P&L reflected lower reported margins versus FY25. The company attributed this largely to legacy project revenue recognition. The investor presentation explicitly contrasts margins on legacy versus current projects, indicating materially higher project-level profitability in the current pipeline. Management reiterated that the legacy overhang is largely behind the company and expects reported margins to expand as newer projects mature and revenue recognition becomes more progressive.

FY26 in numbers: pre-sales up, collections steady, cash flow positive

The company’s FY26 performance was driven by a mix of new launches and sustenance sales. In the earnings call, management stated that out of ₹4,022 crore of FY26 pre-sales, ₹1,620 crore came from new launches and ₹2,400 crore came from the pre-existing pipeline.

Category-wise, the pre-sales mix signals a clear premium tilt. For FY26, luxury contributed ₹8.57 billion (22%), super premium ₹9.54 billion (25%), premium ₹6.95 billion (18%), emerging premium ₹10.66 billion (28%), and mass market ₹2.98 billion (8%). Commercial pre-sales were ₹1.52 billion.

The company also shared pipeline cash flow visibility through sold receivables and unsold inventory. As of 31 March 2026, sold receivables across completed and ongoing projects were stated at ₹47.13 billion, with total unsold inventory of ₹549.51 billion across completed, ongoing, and forthcoming projects. Balance cost to complete across these buckets was presented at ₹352.90 billion.

Pipeline build: launches and business development ran ahead of plan

FY26 was a heavy year for project launches and additions. The company launched 7 projects with estimated GDV of ₹98.13 billion, which it described as 140% of full-year guidance. Business development additions were even stronger: 5 projects were added with estimated GDV of ₹104.20 billion, described as 174% of guidance.

Management’s stated strategic orientation continues to be redevelopment-led, with a growing emphasis on cluster redevelopment as a scale driver. The presentation lists five cluster projects (Lokhandwala, GTB Nagar, Dindoshi, Malad (W), Om Nagar) and states an estimated combined GDV of about ₹137 billion.

The pipeline skew also remains firmly premium. The forthcoming project snapshot shows residential forthcoming GDV of ₹362.32 billion across 18 projects, and commercial GDV of ₹64.66 billion across 3 projects. The company stated that emerging premium and premium represent about 94% of the forthcoming residential portfolio.

Margins, legacy overhang, and the shift to percentage of completion

A key theme across the investor presentation and the earnings call was the difference between legacy and current project economics. In the investor deck, current projects show higher gross and EBITDA margins than legacy projects for both Q4FY26 and FY26 (before corporate overheads).

In the earnings call, management defined legacy projects as older developments such as Crown and Virar affordable housing that had weighed on reported profitability. Management stated that the overhang is largely over, and suggested FY27 would be the last year where legacy projects meaningfully contribute, becoming insignificant thereafter.

Another important change is accounting. Management stated that percentage of completion method was adopted from 1 April 2025 for projects launched in the last six months and subsequent launches, while older ongoing projects largely remained on the completion method. They quantified the transition: in FY26, about 80% of revenue was accounted under completion method and 20% under percentage of completion; in FY27, the company expects 60% under percentage of completion and 40% under completion method; from FY28 onwards, management expects 100% revenue recognition under percentage of completion.

FY27 guidance and the FY30 ambition

The formal guidance table in the investor deck sets FY27 targets of ₹50 billion pre-sales, ₹80 billion launches (GDV), and ₹80 billion project additions (GDV), while maintaining gross debt-to-equity below 0.75:1.

Beyond FY27, management articulated a “Vision 2030” that targets pre-sales of ₹100 billion by FY30, implying around 26% CAGR from FY26 to FY30. Management also spoke about three multipliers for the path to FY30: cluster redevelopment as the scale multiplier, plotted development as the velocity multiplier, and commercial as the stability multiplier.

On commercial, management discussed building an annuity portfolio and mentioned an aspiration of about ₹100 crore by 2030. The company’s listed commercial pipeline includes 33Fifteen (ongoing), and forthcoming projects such as Thane Commercial, OB12+13, and Dhuru Wadi.

Takeaways

Keystone Realtors ended FY26 with record pre-sales and significant pipeline momentum, backed by operating cash flow generation and a net cash position. The company’s own disclosures indicate that reported margins in FY26 were held back by legacy project revenue recognition, while current projects show higher project-level profitability.

FY27 guidance implies continued growth and sustained pipeline replenishment, with a clear intent to keep leverage within stated limits. The FY28 move to full percentage of completion revenue recognition is likely to change the timing of reported revenues and margins. Execution on the expanding redevelopment and cluster pipeline will remain the key determinant of whether the company can move from the FY26 base of ₹4,022 crore pre-sales toward the stated FY30 ambition of ₹10,000 crore.