Speaker #1: Ladies and gentlemen, you have been connected for Kalpataru Limited's conference call. The call will begin shortly. Please stay connected. Please note that you have been connected for Kalpataru Limited's conference call.
Speaker #1: The call will begin shortly. Please stay connected. Ladies and gentlemen, good day and welcome to Kalpataru Limited's Q2 and H1 FY27 earnings conference call.
Speaker #1: As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.
Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on a touch-tone phone. I now hand the conference over to Mr. Advait Patel, Head of Investor Relations at Kalpataru Limited.
Speaker #1: Thank you, and over to you, sir.
Speaker #2: Thank you, Michelle. Good morning, ladies and gentlemen. Welcome to the Q2 and H1 FY27 results call of Kalpataru Limited. We have with us today the management of Kalpataru Limited, represented by Mr. Parag Manoth, Managing Director.
Speaker #2: Mr. Narendra Lodha, Executive Director, and Mr. Chandrasekhar Zoghekar, Director of Finance and CFO. I would like to state that any forward-looking statements made during the discussion today are based on our current expectations, assumptions, and projections about future events, and are subject to risks and uncertainties beyond our control.
Speaker #2: With that, I will now hand over the call to Mr. Manoth for the opening remarks, after which we shall open the floor for Q&A.
Speaker #2: Over to you, sir.
Speaker #3: Thank you, Advait. Good morning, everyone, and a warm welcome to all of you. The macro-environment continued to be challenging for the second quarter in a row.
Speaker #3: Despite an external environment marked by global economic uncertainties, volatile geopolitical developments, and evolving interest rate trajectories, the Indian economy continues to demonstrate resilience, underpinned by strong domestic fundamentals.
Speaker #3: The Mumbai Metropolitan Region remains among the most compelling real estate markets in India. Benefiting from sustained infrastructure investments, improving connectivity, urban regeneration initiatives, and increasing demand for high-quality residential developments, consumer preferences continue to shift towards established and execution-focused developers.
Speaker #3: Leading to consolidation within the sector. Supported by these favorable industry dynamics, Kalpataru continues to execute on its strategy of delivering premium developments in premium and prime locations, while maintaining a disciplined approach towards growth and capital allocation.
Speaker #3: Now, let me walk you through some of the key numbers for Q2 and H1. Pre-sales for Q2 FY27 were ₹1,258 crore, and for H1, it was ₹2,587 crore—flats year-on-year.
Speaker #3: Sales collection was flat at ₹1,189 crore for Q2, while it was ₹2,554 crore, up 9% year-on-year for H1. Sales momentum at Kalpataru Park City Thane has been very strong.
Speaker #3: We have recorded ₹420 crore of pre-sales during H1 so far, and walk-in interest remains high with healthy conversion. On a year-over-year basis, our walk-ins are up by 25%.
Speaker #3: Conversion rates have almost doubled, resulting in pre-sales growth of 130% at Kalpataru Park City. H2 H1 FY26 was ₹167 crore, and now our H1 FY27 is ₹420 crore.
Speaker #3: With more than 2,000 families already residing on site, we anticipate welcoming over 3,000 families by the end of next year. Increasing resident occupancy, and key retail outlets turning operational, will lead to higher walk-ins and better conversion.
Speaker #3: With this, we anticipate H2 to be better than H1. At Kalpataru One in Worli, we continue to see very strong customer interest in the product.
Speaker #3: The demand is building up, and we have started seeing conversion improve during this festive season. This is a best-in-class product, and we remain confident in its long-term performance.
Speaker #3: Coming to new launches, we launched our premium project, Kalpataru Alara, in Babunagar, Goregaon West during the quarter, which received a very good response. The project features two-, three-, and four-bedroom residences, along with 25+ curated lifestyle amenities.
Speaker #3: This project was launched towards mid-September, and the response we have received has been encouraging, with 30% of the project sold. This is on the back of another strong launch that we did in Q1 for Kalpataru Viyan, Rishikesh Lokanwala, which continued its sales momentum in this quarter as well.
Speaker #3: We have a strong pipeline of launches for the remaining year, and we hope to carry this momentum into other project phases when we launch them.
Speaker #3: Turning to project completions, during the quarter we received occupation certificates for 1.58 million square feet across 1,500 units. For H1 FY27, we have delivered over 2,200 units, adding up to 2.37 million square feet.
Speaker #3: Continuing a strong track record of project execution and handovers, we are well on track to deliver our target of 5.5 million square feet of completions this year.
Speaker #3: With that, I would now like to hand over the call to Chandrasekhar Zoghekar for a detailed update on our financial performance. Over to you, Chandrasekhar.
Speaker #4: Thank you, Parag. Good morning, everyone, and welcome to our Q2 and H1 FY27 earnings call. Let me start with the financial update. During Q2, we reported revenue from operations of ₹437 crore.
Speaker #4: Our adjusted EBITDA during the quarter was ₹73 crore with margins of 16.6%. On the profitability front, we reported a loss of ₹71 crore for the quarter.
Speaker #4: During H1, on the other hand, our revenue came in at ₹909 crore. Our adjusted EBITDA was ₹167 crore with a margin of 18.4%. On profitability, we reported a loss of ₹100 crore.
Speaker #4: The company follows the project completion method, as has been said earlier, for its revenue recognition. For most of its projects, during H2 of FY27, we will be completing a few of our projects, which will lead to first-time revenue recognition of the corresponding revenue and profits.
Speaker #4: Turning to our balance sheet: as of 30th September 2026, our gross debt stood at ₹9,179 crore, while cash and cash equivalents were ₹856 crore, resulting in net debt of ₹8,323 crore.
Speaker #4: Consequently, our net debt-to-equity ratio stands at 2.1x. Our gross debt was flat quarter-over-quarter, while net debt went up slightly because of consumption of the working capital cash balances.
Speaker #4: H1 FY27 has been steady for us. For the remainder of the fiscal year FY27, our focus is clear: to accelerate on pre-sales. We have a good pipeline of new launches, as well as sustained sales from the existing portfolio.
Speaker #4: That should help us achieve our targets for the year. Our guidance for pre-sales for FY27 remains unchanged at ₹6,500 crore. Equal focus will also be on execution so that we are able to deliver all our projects as planned, augment our collections, and drive cash flows.
Speaker #4: In closing, I wish to state that the company would be completing around 14 million square feet of ongoing projects in FY27, FY28, and FY29 gradually.
Speaker #4: Out of that, around 5.5 million square feet will be completed in FY27 itself. Out of that 5.5 million square feet target for FY27 completion, 2.3 million square feet has already been completed in H1 of FY27.
Speaker #4: The remaining out of $14 million will be completed in FY28 and FY29 gradually. All these projects will recognize revenue and profits in their respective year of completion, because they follow the project completion method of revenue recognition.
Speaker #4: This will also strengthen our balance sheet and cash flow significantly, thereby leading to a reduction in the gross debt as well as net debt. With that, we would be happy to take your questions.
Speaker #1: Thank you very much. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question, please press *1 on your touch-tone phone.
Speaker #1: If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only handheld devices while asking a question.
Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Saurav Gilta from GM Financials.
Speaker #1: Please go ahead.
Speaker #4: Yeah, hi, good morning. Am I audible?
Speaker #1: Yes, sir, you are.
Speaker #4: Yes. Yeah, hi. So, my first question is on the guidance, with the pre-sales of close to ₹2,600 crore achieved in H1. Can you please share a broad-level bridge between the current pre-sales number and the guidance that we have provided for the year?
Speaker #4: So out of 6,500 crore, around 40% of the pre-sales has been already achieved in H1. And the remaining H2 period for FY27 will take will the pre-sales will be achieved out of the sustainance sales from all the ongoing projects, and a couple of launches which we'll be doing which are especially Suman Nagar at Chembur, Kalpataru Blossom at Pune, and Kalpataru Ardene at Nagpur.
Speaker #4: However, the weightage of the pre-sales for the remaining H1—I mean H2—of FY27 will be on the sustenance sale, and the whole first two periods starting from October till March will take care of it.
Speaker #4: And it has been a usual trend that and we are we have met that trend that 40% of the pre-sales guidance is generally met in the H1, and around 60% is met in H2.
Speaker #3: Sure, thanks. Thanks for the response, sir. And my last question is on the launch readiness. If you can highlight the current status of the three launches that you have highlighted in terms of approvals, where they are in terms of launch timelines.
Speaker #3: Will that be back-ended, or do you see those projects getting launched during the festive season?
Speaker #4: So the Suman Nagar project at Chembur, where we have IOD, has come. Vacation of the residents is happening, and we should get it. It will happen in the fourth quarter of this year.
Speaker #4: Regarding Nagpur, we have got the pre-approval. The final approval will come in a month and a half, and then we would get the Vera. It should also be launching in the fourth quarter.
Speaker #4: Blossoms at Pune, we have applied for Vera and we should be able to launch it before December.
Speaker #3: Okay, thank you so much, sir. Those are my questions. All the best.
Speaker #4: Thank you. Thank you.
Speaker #1: Thank you. Thank you, sir. A reminder to all the participants: you may please press star and one (*) to ask questions at this time.
Speaker #1: We'll take some more questions from Saurav Gilda from GM Financials. Please go ahead.
Speaker #4: Yep. Just a follow-up on the demand environment. Given that we have a portfolio which is across the spectrum right from, you know, two, three crore to upwards of, you know, the luxury projects in Worli.
Speaker #4: Any specific segment segment that you are seeing, you know, a demand slowdown or any any moderation in uptake that you want to highlight or, you know, everything is, you know, or, you know, the demand trend across spectrum remain healthy?
Speaker #4: Just wanted to understand the demand demand environment across the price spectrum. In the executive summary, yes, the demand seems healthy across everywhere and I'll break it down under the three crore bracket we are seeing good response may be in Thana may be in Mira Road may be in Pune may be in suburbs in the in the in the western that's one zone we are in in the plotting zone also we have got very good demand good sales are happening in that in the western Mumbai where we have projects where we have done two launches one was at Lokanwala and one at Bangu Nagar we saw very good response and our undergoing under construction projects which are also selling well these are all in the three to ten crore bracket in the in the luxury market that's in Sobo there is a good walk-in there is a good interest demand is there and conversions will happen in the next few few months so at this moment we are finding demand across everywhere.
Speaker #3: Sure. Nice to hear. Thank you.
Speaker #1: Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management of Kalpataru Limited for closing comments.
Speaker #1: Thank you, and over to you, sir. I'm sorry, sir, you're not audible.
Speaker #4: Just say one more. I—I understand there's one more question.
Speaker #1: Yes, sir. Can we take that question?
Speaker #4: Yes.
Speaker #1: Okay, sir. We'll take the next question from the line of Vishal Singh, an individual investor. Please go ahead.
Speaker #3: Yeah. Hi, sir. Good morning. So, sir, I have just three questions. One is regarding net debt level. So, sir, what is the year-end guidance for the net debt level?
Speaker #3: And my second question is on the RV. Are we on the verge of executing our year-end pre-sales guidance? And my third question is on the R. Also, some color on the floated development project, please.
Speaker #4: So, yeah, Vishal, our guidance for the net debt at year-end will remain flat, as we have said earlier in the guidance. Compared to FY26, the net debt for FY27 will be more or less the same.
Speaker #4: The focus will be on execution, as I said earlier, on the projects and we will be consuming our capital and funds and cash flow for the execution of the projects as well as some spend will be on the business development also for the growth.
Speaker #3: Okay, sir. Got it.
Speaker #4: I think the second question was regarding the plotted developments in Nagpur and in Karjar.
Speaker #3: Got it, sir. Got it. And, sir, what is your year-end pre-sales guidance?
Speaker #4: As I said earlier, it is Vishal. Around 6,500 crore net sales.
Speaker #3: Okay. And I also can you show put some the put some light on on on the cash flow part. How how is that pending out?
Speaker #4: The net operating cash flows and the gross cash flows will remain more or less the same as compared to FY26. FY27 also will be, because in FY26, we had a pre-sales of 5,200,280.
Speaker #4: In FY27, we'll be having around 6,500. Cash flows will be in proportion to that.
Speaker #3: Sure, sir. Thank you so much, sir.
Speaker #4: Thank you.
Speaker #1: Thank you. A reminder to all the participants: you may please press star and one to ask questions. The next question is from the line of Ashi from Myself Advisors.
Speaker #1: Please go ahead.
Speaker #5: Hi. Am I audible?
Speaker #1: Yes.
Speaker #5: Yeah. Hi, sir. Sir, I just wanted to ask a couple of questions. So, I wanted to know which other projects are yet awaiting approvals, and could this delay our launches?
Speaker #5: That's my first question.
Speaker #4: Hi, Ashi. We had answered this earlier. We have three projects to be launched: one in Chembur, one in Pune, and one in Nagpur (plotting).
Speaker #4: And all are on track. We'll be launched in Q3 and Q4.
Speaker #5: Okay, okay. And so, what is the amount of price hike that we have taken in the past few months to absorb this inflationary impact?
Speaker #5: And you know, how much headroom would be remaining for the price increases in the next phases?
Speaker #4: Yeah. The price rise has happened by three to five percent in the projects, and it's taken care of the increase in inflation and cost of product.
Speaker #4: Now, and what we anticipate in the future.
Speaker #5: Understood. Understood. Okay, sir, that's it from my side. If I have any more questions, I'll come back. Thank you.
Speaker #4: Thank you.
Speaker #1: Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to the management of Kalpataru Limited for closing comments.
Speaker #1: Over to you, sir.
Speaker #4: Thank you to all the participants for joining our results call. We look forward to regularly interacting with you. In case of any further questions, please feel free to reach out to our investor relations or the ENY team for clarification.
Speaker #4: Thank you.
Speaker #1: Thank you, members of the management. On behalf of Kalpataru Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines.
