Raymond Realty reported a steady Q2 FY27 with total income of Rs 757 crore, up 7% YoY. The firm saw strong operational momentum with H1 booking values jumping 111% to Rs 1,602 crore. A key strategic win includes a Rs 210 crore equity infusion for a Mahim project, while the company maintains a robust 0.8x debt-to-equity ratio as it eyes further expansion.
Raymond Realty Q2 FY27 Performance Update
Total Income stood at Rs 757 crore, while H1 FY27 booking values reached Rs 1,602 crore.
Reader Takeaway: Strong booking growth signals robust demand, but management must navigate rising construction costs and interest expenses.
What just happened
Raymond Realty posted a 7% year-on-year rise in total income to Rs 757 crore for the second quarter of FY27. The company's EBITDA reached Rs 115 crore with margins expanding to 15%, up from 14% in the previous year. Operational performance remains the highlight, with a massive 111% increase in booking values to Rs 1,602 crore for the first half of the year.
Why this matters
The company has successfully scaled its portfolio to a Gross Development Value (GDV) of Rs 52,000 crore, adding Rs 8,500 crore in H1 alone. Strategic moves, such as the Rs 210 crore equity infusion from an ICICI Prudential AMC-promoted AIF for a Mahim redevelopment project, demonstrate management's ability to secure growth capital without piling on debt. This equity-led funding structure helps keep the debt-to-equity ratio at 0.8x, well below the company’s internal 1:1 limit.
Strategic Developments
Management is actively transitioning toward an asset-light model, with Joint Development Agreements (JDAs) now accounting for 52% of the total GDV. Two major launches in Mahim are planned for H2, representing a combined GDV of Rs 4,100 crore. Additionally, a promoter commitment of Rs 400 crore in fresh equity has been earmarked to bolster the firm’s aggressive growth trajectory.
Management Guidance
The leadership team has reaffirmed its FY27 guidance, projecting at least 20% growth in pre-sales. EBITDA margins are targeted in the 17% to 19% range, with PAT margins expected between 9% and 10%.
Risks to watch
Rising interest costs and input inflation for labour and raw materials remain key monitorables. While the company utilizes fixed-price contracts to hedge against cost spikes, investors should watch how these pressures impact margin guidance in future quarters. Management has also acknowledged a valuation disconnect and plans to improve institutional visibility to bridge the gap between performance and stock price.