Kalpataru posts Rs 49 crore loss in Q1 FY26 despite strong pre-sales

The realty firm saw an 83% rise in pre-sales and 101% surge in sale realisation, but revenue declined due to project completion-based accounting

Mumbai-based real estate developer Kalpataru reported a widening of losses to Rs 49.43 crore in the first quarter of FY26, compared with Rs 0.69 crore in Q1 FY25.

 

Revenue from operations stood at Rs 443.2 crore, down 16.45 per cent year-on-year (Y-o-Y), while total expenses fell 5.18 per cent Y-o-Y to Rs 512.23 crore.

 

The company follows the project completion method (PCM) for recognising revenue from projects launched after April 2022. Under this method, revenue is recorded only upon receipt of the occupation certificate (OC), whereas expenses such as marketing and corporate overheads are booked in the same quarter they are incurred.

 

As of Q1 FY26, the majority of recognised revenue came from projects under PCM. Of its 24 ongoing projects, Kalpataru applies PCM to 13; however, costs associated with these projects are fully charged to the profit and loss account during the reporting period.

 

Adjusted earnings before interest, tax, depreciation, and amortisation (Ebitda) for the quarter stood at Rs 104 crore, with an adjusted Ebitda margin of 23.4 per cent. 

 

Pre-sales and collections surge

 

Pre-sales rose 83 per cent Y-o-Y to Rs 1,249 crore, while collections increased 37 per cent YoY to Rs 1,147 crore. However, the area sold fell 9 per cent Y-o-Y to 0.56 million square feet.

 

Average sales realisation during the quarter surged 101 per cent Y-o-Y to Rs 22,476 per square foot.

 

The company has guided pre-sales of Rs 7,000 crore for FY26, up from Rs 4,531 crore in FY25. It is targeting collections of Rs 5,700 crore, compared with Rs 3,659 crore in the previous financial year.

 

Debt reduction focus

 

Net debt as of June 30, 2025, stood at Rs 7,939 crore. The net debt-to-equity ratio improved to 2.0x from 3.8x as of March 31, 2025. Kalpataru aims to reduce its debt to Rs 7,300 crore by the end of FY26.

 

“The company has utilised Rs 1,192.5 crore from IPO proceeds towards debt repayment, in line with the objects of the issue, and remains committed to further strengthening the balance sheet through continued debt reduction efforts,” said Parag Munot, Managing Director, Kalpataru.

 

Sequential performance declines

 

On a sequential basis, revenue declined 26 per cent. The company had posted a profit of Rs 14.05 crore in Q4 FY25, compared with a loss in the current quarter.

 

Kalpataru shares closed at Rs 406.30 on the BSE on Tuesday.