Keystone Realtors profit plunges 87% in Q2 FY26 amid accounting shift

Keystone Realtors' Q2 profit fell sharply to Rs 8.55 crore as the developer adopted a new accounting standard while revenue and Ebitda declined even as pre-sales and project launches rose in H1 FY26

Keystone Realtors’ (Rustomjee’s) net profit for the second quarter of the financial year 2026 (Q2 FY26) declined by 87.1 per cent year-on-year (YoY) to Rs 8.55 crore.

 

Why did Keystone Realtors’ profit fall in Q2 FY26? 

Boman Irani, chairperson and managing director, Keystone Realtors, attributed the decline to the switch in accounting standards used by the company. “We have just moved to the percentage completion method this year, but before this, we had a project completion method. Because there are no projects completed, there are no fresh profits to report,” he added.

 

The company’s revenue also dipped by 6.33 per cent YoY to Rs 499.3 crore. The company’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) for the quarter stood at Rs 37 crore, down 64.22 per cent YoY.

 

How did the company perform in sales and collections? 

Earlier, the company reported pre-sales of Rs 763 crore, up 9 per cent YoY. Its collections for Q2 FY26 stood at Rs 601 crore, up 9 per cent YoY.

 

“We have achieved 46 per cent of our sales guidance of Rs 4,000 crore for FY26 so far. We were awaiting certain approvals, and one of our projects that we will launch in Q3 FY26 will more than help us cover the entire year's guidance. Whatever else we do in the fourth quarter will be an addition to that,” Irani added. 

 

What are Keystone Realtors’ new projects and launch targets? 

During Q2 FY26, the company launched one new project with an estimated gross development value (GDV) of Rs 949 crore. With this, the company launched four projects in the first half of FY26 with an estimated GDV of Rs 4,916 crore, achieving about 70 per cent of its full-year FY26 launch guidance.

 

In H1 FY26, the company added three new projects with an estimated GDV of Rs 7,727 crore to its portfolio, surpassing its full-year business development guidance. All three are redevelopment projects. “These strategic additions align with our goal to maintain and strengthen our leadership in the redevelopment space,” the company noted.

 

How did Rustomjee perform in H1 FY26? 

The company’s pre-sales in H1 FY26 stood at Rs 1,831 crore, up 40 per cent YoY. Meanwhile, its collections during the same period stood at Rs 1,177 crore, up 13 per cent YoY.

 

Rustomjee’s revenue in H1 FY26 stood at Rs 772.40 crore, down 19.1 per cent, while its profit during the same period stood at Rs 23.1 crore, down 74.6 per cent YoY.

 

What is Keystone Realtors’ debt position and market activity? 

The company’s gross debt stands at Rs 588.2 crore. Rustomjee is a net debt-free company.

 

In Q2 FY26, it raised Rs 335 crore by issuing non-convertible debentures. The promoters of the company also offloaded their 3.63 per cent stake in compliance with the minimum public shareholding (MPS) norms of the Securities and Exchange Board of India (Sebi).

 

Sequentially, the company’s revenue grew by 83 per cent, while profit declined by 41.1 per cent.