Keystone Realtors Reports 44% Drop in Q1 Net Profit Despite Record Pre-Sales

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Keystone Realtors Ltd, known for its Rustomjee brand, reported a 44 percent decline in consolidated net profit for the first quarter of FY26, with earnings falling to ₹14.51 crore from ₹25.87 crore a year earlier. The company also posted a 35 percent drop in revenue, which stood at ₹273.1 crore, compared to ₹437.2 crore in Q1 FY25.

Despite the lower profit and revenue, the company achieved its highest-ever quarterly pre-sales of ₹1,068 crore, reflecting a 75 percent year-on-year increase. Keystone launched three new projects during the April to June quarter, contributing to a total Gross Development Value (GDV) of ₹3,967 crore, which represents 57 percent of its full-year target. Including other additions, the company’s total GDV now stands at ₹7,727 crore, exceeding its annual guidance by over 25 percent.

Collections during the quarter rose 19 percent to ₹575 crore, while operating cash flow reached ₹118 crore. The company continues to operate with a lean balance sheet, maintaining a low gross debt-to-equity ratio of 0.11. Gross debt stood at ₹304 crore, but the company remains net-debt free after adjusting for cash reserves.

Chairman and Managing Director Boman Irani explained that the decline in profit was largely due to the company’s revenue recognition method, which books revenue upon project completion. He stated that the company is considering shifting to the percentage-of-completion method for upcoming projects to better align reported financials with operational performance.

The company’s EBITDA for the quarter also fell to ₹29 crore from ₹58.2 crore in the same period last year. However, the management remains optimistic, given the strong pre-sales momentum and robust launch pipeline.

Keystone Realtors focuses on an asset-light model and specializes in redevelopment projects in the Mumbai Metropolitan Region. With strong cash flow, reduced leverage, and healthy sales performance, the company aims to build on its momentum in the upcoming quarters.