Ladies and gentlemen, good day and welcome to the Kalpataru Ltd's Q4 FY 2026 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the management's opening remarks. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Mr. Advait Phatarfod, Head Investor Relations at Kalpataru Ltd. Thank you, and over to you, sir.
Thank you, Michelle. Good morning, ladies and gentlemen. Welcome to Q4 and FY 2026 results call of Kalpataru Ltd. We have with us today the management of Kalpataru Ltd, represented by Mr. Parag Munot, Managing Director, Mr. Narendra Lodha, Executive Director, and Mr. Chandrashekhar Joglekar, 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. With that, I will now hand over the call to Mr. Munot for the opening remarks, post which we shall open the floor for Q&A. Over to you, sir.
Thank you, Advait. Good morning, everyone, and a warm welcome to all of you. It's a privilege to report that fiscal year 2026 has been a landmark year for Kalpataru Ltd, representing the strongest operational performance in our company's history. Coincidentally, it is also the year in which we got listed. Our momentum peaked in the fourth quarter, where we achieved our highest ever quarterly pre-sales of INR 1,833 crore. While this reflects a steady 6% year-on-year increase, the standout highlight is our cash flow efficiency. Collections for quarter four reached a record INR 1,487 crore, a robust 41% growth that underscores our execution capabilities. Looking at the full- year, the numbers tell a story of consistent, high-quality scaling. FY 2026 pre-sale reached INR 5,280 crore, up 17%, while collections grew by 34% to INR 4,960 crore. The consistency of our performance is best reflected in our multi-year trends.
Our four-year pre-sales compounded annual growth rate stands at 26%, while our collections compounded annual growth rate of 33% continues to outpace sales growth, reflecting a deep commitment to delivery and operational excellence. Turning to our portfolio. Our portfolio comprises 31 projects with a total saleable area of 43 million square feet. Of these, 20 are ongoing projects with a saleable area of approximately 24 million square feet, of which about 11.4 million square feet has already been sold. These ongoing projects represent a gross development value of nearly INR 36,000 crore, translating into total future inflows of approximately INR 27,000 crore. This includes both balance collections from sold inventory, as well as the expected value of unsold units. The MMR region continues to be our largest contributor, with 15 projects accounting for INR 23,500 crore of total expected inflows. Pune and other markets together contribute around INR 3,500 crore.
In addition, our ready-to-move-in projects and forthcoming launches together add approximately INR 30,000 crore. Total future inflows across the portfolio is about INR 57,000 crore. This strong visibility provides us with a solid foundation for sustained growth, healthy cash flows, and future balance sheet strengthening going forward. I will talk about our new launches. During FY 2026, we launched four tower phases in three projects namely Eternia at Kalpataru Parkcity, Kalpataru Aria, and Srishti Namaah, and launched one new project, Estella at Kalpataru Parkcity, together totaling to 1.8 million square feet saleable area. A few projects which were earlier we started to be launched in FY 2026 have now spilled over to H1 FY 2027 and will be launched in due course, post receipt of regulatory approvals. For FY 2027, we have an exciting pipeline of new launches of 5 million square feet, amounting to a total GDV of INR 7,800 crore.
Turning to project completions. Quarter four was a period of intense delivery. We secured occupation certificates for approximately 1.37 million square feet, spanning six towers at Kalpataru Vivant, one tower at Kalpataru Elitus, and one phase at Kalpataru Aria. This capped off an extraordinary year for our execution team. In FY 2026, we completed 5.15 million square feet, nearly double of our delivery volume from the previous years. More importantly, we received occupation certificate for 3,000 units. A testament to our commitment to project timelines and customer delivery. Looking ahead, we intend to maintain this space. We have a target of delivering roughly 5.5 million square feet in FY 2027. This consistent delivery pipeline provides us with exceptional visibility into our operating cash flows and sets a clear path for profit recognition in the coming quarters.
On the business development front, I am pleased to share that we have secured a development agreement for the redevelopment of Shri Mahalakshmi Cooperative Housing Society. This project is situated on a prime 3-acre land parcel just off Veera Desai Road in Andheri West, one of Mumbai's most sought after residential and commercial hubs. With a potential carpet area of approximately 0.4 million square feet, we estimate the gross development value to be in the region of INR 1,400 crore. I want to emphasize that our approach to business development remains highly disciplined. We are not chasing volume for the sake of scale. Instead, we are selectively pursuing high potential projects like this one that align strictly with our internal return thresholds and brand positioning.
With that, I would now like to hand over the call to Chandrashekhar Joglekar, our CFO, for the detailed update on our financial performance. Over to you, CJ.
Thank you, Parag. Good morning, everyone, and welcome to our Q4 FY 2026 earnings call. Let me start with the financial update for Q4 and FY 2026 both. In the fourth quarter, we reported revenue from operations of INR 1,694 crore, a nearly threefold increase from the INR 601 crore reported in the same period last year. This propelled our full-year revenue to INR 3,436 crore, representing a 54% year-on-year growth. This surge in revenue flowed directly to our bottom- line also. Our adjusted EBITDA for Q4 reached INR 612 crore, with margin expanding to a very healthy 36% for the full- year. Adjusted EBITDA stood at INR 1,022 crore, reflecting a 30% margin.
On the PAT front, we recorded a profit of INR 194 crore for the quarter, bringing our full-year PAT to INR 80 crore. It is important to contextualize these results with our accounting system. We have shared previously, we are operating under a dual-track revenue recognition method. While seven of our ongoing projects continue under the percentage-of-completion method, which is POCM. However, 13 newer projects, especially commenced after April 2022, follow the project completion method. The robust Q4 performance is directly linked to these newer projects reaching the handover stage, and we expect this delivery-led revenue recognition to be a recurring phenomena in our financial narrative going forward. A significant driver of our Q4 financial performance was the successful execution of our delivery of milestones.
During the quarter, we received occupation certificates for six towers at Kalpataru Vivant at JVLR, one tower of Kalpataru Elitus, and a key phase of Kalpataru Aria, together totaling to 1.37 million square feet. In line with the guidance we provided last quarter, the full revenue and profitability for these specific developments have now been recognized in our profit and loss account in Q4. Looking ahead, we see similar momentum building across our premium portfolios. Projects such as Kalpataru One in Worli, Kalpataru Amare in Juhu, Kalpataru Advay in Borivali, and our South Mumbai landmarks, Kalpataru Privé and Kalpataru Azuro, continue to see healthy sales velocity. While these developments are also under the project completion method, the sustained sales demand today provides us with a high margin revenue backlog for the years to come. Turning to our balance sheet position.
As of March 31st, 2026, our gross debt stood at INR 9,168 crore, while cash and cash equivalents were INR 1,062 crore, resulting in a net debt of INR 8,106 crore. Consequently, our net debt-to-equity ratio stands as of March 2026 at 2 x. As several of our projects start getting OCs, occupation certificates, we expect a significant influx of cash and profit recognition. This will allow us to naturally and organically and systematically deleverage, improving our net debt-to-equity ratio as we transition from a high investment phase to a high realization phase. A key pillar of our financial strategy is continuous optimization of our borrowing costs. Since our listing, we have leveraged our strength and strengthened our market position to refinance approximately INR 3,500 crore of debt. These results are tangible.
We have achieved an interest rate delta of 3.5% of these facilities, leading to a 120 basis points drop in our overall blended cost of total debt. This optimization alone adds approximately around INR 125 crore to our annualized savings, providing a significant tailwind for our profitability. Looking ahead, we have an active pipeline for further optimization. We expect to refinance another around 1,300 crore in the coming quarter. For fiscal FY 2027, our focus is clear. To build upon the foundation we established this year, our pipeline for the new year is robust, supported by a strong slate of new launches designed to sustain our pre-sales trajectory. Furthermore, with approximately 5.5 million square feet lined up for completion, we have clear visibility into our cash flows for the next 12 months.
Considering the current global macroeconomic environment and global conditions, as well as our local conditions, we would come back with the formal guidance for FY 2027 at a subsequent date. In closing, I want to reiterate that Kalpataru's operational liquidity is strong. Our ongoing projects are fully financially closed and construction across all the sites, all the projects, is moving at a full speed. We are confident in our execution engine and our ability to deliver long-term value. With that, we would be happy to take questions.
Thank you very much, sir. Ladies and gentlemen, we will now begin with the question- and- answer session. Anyone who wishes to ask questions may please press star and one on their touch-tone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use only hands up while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue attends. You may please press star and one to ask questions. The first question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead.
Yeah. Good morning, everyone. Thank you for the opportunity. The first question is on our upcoming launches for this year, which you have given the presentation. So in terms of GDV, are we looking to launch this entire thing to bring it to the market or just specific phases out of this? If you could quantify that. If you would also help us understand how these launches will be phased through the year. Will it be back-ended in the second half, or it will be spread equally through the year? Out of this, whatever inventory you are bringing to market, any indicative amount or percentage we are looking to monetize or sell within this year? That is the first question.
Hello.
Yeah.
Good morning, Adhidev.
Yeah.
These launches are spread across the entire year. Well, in the first half also, we will be doing about three of the launches, and the balance will be approximately in the second half. Most of them are in Toto, other than Kalpataru Blossoms, which is in Pune, which may happen in two phases. Otherwise, all will be launched in one phase. We plan to achieve, as we do in all our launches, approximately 20%-25% in launch we sell, and that's the target we have for this year also.
Okay. So around INR 2,000 crore at least is what we expect from the launches, at least to contribute for this year, right? On the lower- end?
Yes.
Okay.
Yeah.
Yeah. And sir, if you could just share with us as of March 2026, what is the unsold inventory we have to sell across all our ongoing projects? Means whatever we have launched so far, the value. I know you have given in the presentation the overall value, but I'm just trying to get at what is the inventory we have to sell going into next year across all our projects.
The inventory of ongoing projects which we need to sell is out of the balanced value unsold inventory. Which is of-
INR 14,000 crore.
INR 14,000 crore. From that we will be selling from the ongoing projects.
Yeah. Okay. You will have INR 14,000 crore, which is the existing, plus you are bringing INR 8,000 crore of roughly inventory into the market in terms of new launches.
Going to next year.
The expected value of unsold inventory, sorry, expected value of unsold inventory, INR 22,000 crore. Sorry, I am wrong. Not INR 14,000 crore.
Okay.
From that we will be selling.
Okay, plus the INR 8,000 crore of launches, which you have intended to bring into the market.
Correct.
Okay. Fine. Sir, second question if you could, I know you said you will come back with guidance, but on the debt front, any absolute number or any ratio in terms of where we want to be 12 months down the line? Any indicative number you would like to share?
Can you repeat, please?
Something on the net debt levels, right?
Yes.
From the INR 8,100 crore. Is there any specific target or anything we are looking to achieve, either in net debt-to-equity ratio terms or in absolute terms or advanced on the line? Yeah.
For FY 2026?
Yeah.
For FY 2026, we are at 2x , and then the net debt is around INR 8,100 crore as we spoke. We are also looking forward for having some investment to be done in the new projects or new BD.
Okay.
We, therefore, will be actually having a strategy where we will be actually, we have some pipeline of new BD getting developed. Some amount will be invested over there. But at the same time, it will be ensured that the net debt level surely doesn't go beyond what it is today as of March 2026. For March 2027, it doesn't go up. However, we would attempt to reduce it marginally at the absolute level, but not substantially. Our debt-to-equity ratio for FY 2027, we will be, of course, issuing a proper guidance a little later, but it will be lower than 2x, for sure.
Okay, fine. Then just one final question, again, a bookkeeping question for FY 2026, right? We have the collections number. If you could just share for the overall year the construction spend approval cost and interest and tax outgo, which we have done for the full- year, if you could share that please.
The construction cost for the full- year
Yeah
for the entire collection was INR 1,916 crore. As against that—
Yes
our share, Kalpataru's share was INR 1,512 crore.
Construction cost
This is full- year you are saying? Or for the quarter?
of FY 2026.
Okay. So INR 1,900 crore is the outgo totally.
Outgo on the construction cost, that is at a full projects, all projects at 100% level.
Okay.
Our pro-rata share of Kalpataru was INR 1,512 crore out of [inaudible].
Okay. Sir, and other approval spends and other things. Sir, just trying to get at the OCF you have generated for this. That is mainly the intent of the question.
No, I can come straight to the OCF if you want.
Yeah.
The OCF generated for the full- year was INR 1,500 crore.
Okay.
at the 100% share level.
Okay.
As the Kalpataru proportionate, it was INR 1,000 crore, INR 1,002 crore precisely.
Okay, fine. Okay, sir. About that, I will come back in the queue with more questions if I have. Thank you and all the best.
Thank you.
Thank you.
Thank you. A reminder to all the participants that you may please press star and one to ask questions. The next question is from the line of Sumit Kumar from JM Financial. Please go ahead.
Hi, sir. Good morning, and thanks for the opportunity. My first question would be on the unsold inventory, under construction inventory of INR 22,000 crore. What would be the sort of internal target, as well as guidance as to in how many years we will be able to monetize that? Second, with the OCF of INR 1,000 crore, what was used in CapEx BD and how much was used to bring down debt? So those are my two questions.
Good morning, Sumit. Basically, out of the OCF, this OCF of INR 1,002 crore, which I mentioned, of the Kalpataru pro-rata share in the entire portfolio, includes around INR 280 crore, which was spent for the projects which were newly acquired as of April 25. Therefore, typically, without considering that INR 280 crore, the OCF stands increased to INR 1,282 crore. From that, we have paid INR 280 crore, as I said, for the business development of the already acquired projects during FY 2025/ 2026. From there, the interest payouts happened because this is OCF, and from there the tax payouts happened, and therefore the debt levels, which are currently at INR 8,100 crore, that is after the repayment of INR 1,200 crore of the debt, which was done over a period of last nine months.
Sure, sir. On the target to monetize the INR 20,000 crore inventory, what is the timeline that we should assume?
What will happen is that it's always an overlapping situation. This INR 22,000 crore inventory will get added, just we spoke a while ago, by around INR 7,000 crore-INR 8,000 crore during the year itself. That will take it to around INR 30,000 crore. This entire INR 30,000 crore will get liquidated, most part of it over a period of next four to five years. Something will remain for [inaudible] .
Focus. Just a follow-up, if I may, then any sort of guidance that you can give on the collection number for next year or basis this?
Sumit , as I said earlier, we will be coming with the guidance to the market. We'll have to little wait and watch the situations around and then we'll come back.
Okay.
But I can tell you one thing, that it will be a growth story only. The only fact is that we will have to wait and watch and then come back to the market for the guidance.
Okay, sir. Thank you, and all the best. Thank you.
Thank you. You may press star and one to ask questions. The next question is from the line of Bhavin Modi from Anand Rathi. Please go ahead. Mr. Modi, I have unmuted your line. Please proceed with the question.
Hi, am I audible?
Yes.
Yeah. My first question is with respect to the Middle East crisis. How do you see with respect to the footfall conversion? Second, with respect to the cost escalation and the supply chain issues. Can you just throw some light on that?
Yeah. Hi, good morning. On the construction side, I think our relationship with the vendors are strong and from long years. We have streamlined it. We had some issues in the tiles and pipes and all, but that's all got streamlined. The construction costs have increased, but it's 2%-4% of the construction cost, and it should not have an impact on us or looking at the total value of sales. The geopolitical crisis and the little Indian narrative also, we have to wait and watch how it is. Till now, our walk-ins has been robust in April also. As the life cycle our projects are, which are at the maturity and mid-level, we are seeing a good robust walk-ins yet, and conversion, we don't see an issue till now. We will wait and watch in the next few months how it goes.
Second, with respect to the call from the PM with respect to the suggestion for work- from- home. Do you see this as being a silver lining for us? Or do you see this more as a temporary phase, not having any major impact?
I think this should not have a major impact. Our locations of our projects are such in the MMR and all, that regardless of these matters, sales velocity for people, customers who want to grow and upgrade their apartments or a demand for a good premium project is there. It's continuous. This will not have impact. It can only help in the future if people want to have bigger homes or better homes.
Okay, got it. Sir, third is with respect to your future launches. I think it is around INR 8,000 crore. So sir, what will be our share of GDV?
Most of it is our share.
Our share other than—
Yeah, Kalpataru Blossoms.
Our share.
Yeah.
Can I get—
All the Kalpataru Aria project are our share.
Except Kalpataru Blossoms where we are a joint developer.
Except Kalpataru Blossoms, which is a joint development project.
Okay. Understood. Sir, just last thing, in your net debt position, you have given the cash. Just wanted to understand how much of the cash is still locked in the RERA account, which is not available to us right now. Do you have the figure handy?
Yeah. We will give you the details, but it is not substantial. Today, our cash balances as of March 2026 has been around INR 1,062 crore. Out of it, not more than 20% is locked into the RERA account. Rest of the cash is available for the projects freely.
Sir, can you just repeat the RERA number once again?
Out of INR 1,062 crore closing, I mean, cash balances at the end of the year, we have around not more than 20% into RERA accounts locked for the reason for the rules and regulations of RERA.
Understood. Got it, sir. That is it from my side.
Yeah.
Thank you. Anyone who wishes to ask questions may please press star and one now. The next question is from the line of Varun Julasaria from 360 ONE Capital. Please go ahead.
Hi, sir. Thank you for the opportunity. Sir, with respect to your ongoing project, you mentioned around INR 27,000 crore of future inflows. I just wanted to understand how much construction cost and FSI and other cost which is pending with respect to this ongoing project. Hello?
Varun, it will be a detailed working. I mean, it will be a little elaborate working, so we will provide you the data later.
Okay, sir. Sure. Thank you.
Thank you. A reminder to all the participants that you may please press star and one to ask questions. We will take the next question from the line of Varun Julasaria from 360 ONE Capital. Please go ahead.
Yeah. On the new launches, what is the margins that we are penciling in for these new launches and the forthcoming projects, like which you have mentioned for INR 28,000 crore. So what is the margins that we are looking at?
Generally, the margins are in the range of 20%-25%. However, that is at a revenue statement. As far as the cash flows are concerned, it will range around 25%-30%, because most of the payouts towards the acquisition of these projects has already happened.
For this forthcoming project, INR 28,000 crore, all the land payment and everything is done, right?
Yes, fully.
Nothing is to be done.
No, nothing.
How much was the CapEx for these [leasings which we have done of INR 28,000 crore?
We can provide you the data. You can connect with us later.
Sure.
Because, again, it is project by project, it is a different number.
Okay. And sir, apart from this forthcoming project, do we have any other land bank which is not factored in with this forthcoming project?
Yes, we have. Beyond this forthcoming project, we have certain land parcels which are not considered in this chart.
Okay. Sir, I will reach out to you offline for all that. Thank you.
Thank you.
Thank you. Participants who wish to ask questions may please press star and one now. The next question is from the line of Harsh Pathak from Motilal Oswal. Please go ahead.
Hello.
Yes.
Yes. Audible? Yeah. Hi, team. Good morning. My question is on the Worli project. How is the traction there? Have we seen any changes in footfalls with the situation that has evolved in the last two months, and how are the conversions happening there?
Yeah. Hi, thank you. Footfalls has been good. We have good sales in Kalpataru One Worli. I can just tell you in March itself, in the total company, we sold INR 1,000 crore, and Kalpataru One Worli played a good part of it, about INR 400 crore. In April also, we are looking at good footfalls. Construction is in full swing. All approvals are in place. We see we are on track of our guided sales targets, what we have kept for Kalpataru One over the next five years.
Sure. We have been offering some payment plans there, and I think some other players have also been offering the payment plan. Do you see this as a facilitating thing for the sales conversion, or it is an organic thing that we are seeing at the project?
You are right, it is an organic thing. It is more flexibility to the customer. He has multiple options to choose from. At different pricing structure, he can take what suits him.
Sir, as a general trend across our projects, considering the mid-premium, the luxury segment, how are the footfalls? Have we seen any change, and how is the conversion velocity that we are seeing? This payment plan option, is it something that we are also evaluating in the future launches in FY 2027?
Payment options we are not anticipating in the new launches, no. Usually, these payment launches happen generally when your life cycle of project has it goes over. So it is not usually done in the launches time. Secondly, footfalls at all our sites actually is good at this moment. We are seeing people coming forward, looking at the activities, at the construction. Barring the vacation of April and geopolitical little slowdown, we have not seen a drastic change in the footfalls.
Okay, sir. Understood. Thanks a lot for taking my questions.
Thank you. Please press star and one to ask questions. The next question is from the line of Anuj Kashyap from A3 Capital. Please go ahead.
Hello. Hi, good morning. Am I audible?
Yes, sir. [inaudible] .
Sir, I wanted to know your viewpoint on your diversification from the standpoint view of geography. What is your view on it? Geographically, we are heavily dependent upon the MMR region. So what is your take on geographical diversification?
Hi. Our focus has always been, as an organization, more on the western region, MMR and Pune, and which is among the top realty markets, and we will strongly be here, which is good. We have a project in Hyderabad, which has done well. Some of the markets we will evaluate opportunities in the future. But at this moment, we are more focused on these markets, which are robust.
And sir, yes, you are right on that. And sir, one more additional question to it, sir. Many realtors these days are focusing on senior living spaces. Those projects have got different skills or different things which are required in those sectors. As an organization, Kalpataru, are you considering to diversify into different senior living residence and all those stuff?
Yes, Anuj. We keep evaluating that, and we look at project level. Does that suit that project development or not? We keep evaluating that.
Okay, sure. Do you have that point of consideration while you are designing the project or you are implementing the project? Because, sir, high- net worth individuals are more accepted in the MMR regions, and the demographic is changing right now. That was the reason I was asking.
Frankly, how we work is, it may not be a focused senior living thing, but in our mixed-use development or our residential development also, we see to it that we have the right facilities for senior members who are staying there. But we have not much on the senior living at this moment in our projects.
Okay, sir. Thank you, sir. And best of luck for the future quarters.
Thank you.
Thank you. Ladies and gentlemen, as there are no further questions, I now hand the conference over to the management of Kalpataru Ltd for closing comments. Thank you and over to you.
Thank you to all the participants for joining our results call. We look forward regularly interacting with you. We are very confident to achieving our goals. In case of any other further questions, feel free to reach out to our Investor Relations or the E&Y team for clarifications. Thank you.
Thank you, members of the management. On behalf of Kalpataru Ltd, that concludes this conference. We thank you for joining us, and you may now disconnect your line. Thank you.