Keystone Realtors' Q1 profit jumps over threefold on higher revenue

The Mumbai-based developer's profit surged on higher revenue and margins, while it retained its ₹8,000-crore launch pipeline despite higher construction costs

Mumbai-based real estate developer Keystone Realtors reported a more than threefold year-on-year (YoY) increase in its profit (attributable to owners of the parent) for the first quarter of FY27, which stood at ₹53.14 crore, driven by higher revenue and margins.

 

The developer, which operates under the Rustomjee brand, recorded a 72.19 per cent YoY jump in revenue from operations to ₹470.29 crore, mainly due to a change in its revenue recognition method. The company now recognises revenue under the percentage of completion method (POCM), replacing the project completion method.

 

Rustomjee's earnings before interest, taxes, depreciation and amortisation (Ebitda) for the quarter under review also increased more than threefold YoY to ₹105 crore. Its Ebitda margin stood at 21.3 per cent in Q1 FY27, compared with 10.1 per cent in Q1 FY26, as the company’s legacy projects with lower Ebitda margins have either ended or are nearing completion.

 

 

Rustomjee's total expenses during the quarter stood at ₹424.02 crore, up 56.62 per cent YoY, mainly due to changes in inventories of completed saleable units, construction work-in-progress and stock-in-trade, and higher finance costs.

 

Boman Irani, chairperson and managing director of Keystone Realtors, told Business Standard that the West Asian geopolitical tensions increased the company's construction costs by around 19 per cent.

 

“Like everyone else, we've experienced the cost increase. When demand is strong, delays hurt more. We've accepted the cost increase, but we've ensured that none of our ongoing projects is delayed. Nothing is being passed on to customers who have already purchased apartments. We always honour the prices at which they booked,” Irani added.

 

Irani said the company revises prices for new bookings over time. Typically, it sells around 30 per cent of inventory within the first six months of launch, another 35-40 per cent during the project's life, and the remaining 30 per cent towards completion.

 

“This phased sales strategy helps us manage inflation because prices naturally increase as the project progresses. Cost inflation is an industry-wide phenomenon. Our focus has been on preventing project delays because delays would also increase our interest costs. We've ensured that our execution timeline hasn't slipped by even a day,” Irani added.

 

The executive believes that costs will moderate over time and that the Indian government is closely watching the situation. “If prices rise beyond acceptable levels, I believe it (the government) could introduce consumer incentives.”

 

Earlier, Rustomjee's pre-sales for Q1 FY27 declined 42.2 per cent YoY to ₹617 crore as the company did not launch any new projects during the quarter. The company said sales were supported by sustained demand for its ongoing projects and expects momentum to improve in the coming quarters amid easing geopolitical uncertainties.

 

Rustomjee plans launches worth ₹8,000 crore in FY27. Irani said the company has already launched inventory worth ₹2,000 crore in July.

 

Rustomjee's collections in Q1 FY27 rose to ₹599 crore from ₹575 crore a year earlier, aided by inflows from previously sold units and ongoing projects. During the quarter, the company added two projects with a combined estimated gross development value (GDV) of ₹547 crore to its portfolio.

 

Irani said the company has set business development guidance of ₹8,000 crore for FY27. His firm aims to become a ₹10,000-crore pre-sales company by FY30.

 

When asked about Rustomjee's fund-raising plans, Irani said, “We are definitely looking at adding one or two large projects this year. Real estate companies always need capital, but we haven't thought about equity dilution yet.”

 

As of June 2026, Rustomjee's gross debt stood at ₹876 crore and its gross debt-to-equity ratio was 0.30 times.

 

Quarter on quarter (QoQ), Rustomjee's revenue declined 70.53 per cent, while profit rose 1.37 per cent.