Ladies and gentlemen, good day, and welcome to the Kalpataru Ltd's Q2 and H1 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 presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Advait Phatarfod, Head of Investor Relations at Kalpataru Ltd. Thank you, and over to you, sir.
Thank you, Swapnali. Good morning, ladies and gentlemen. Welcome to the Q2 and H1 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. We extend a very warm welcome to all of you joining Kalpataru Ltd's first earnings call to discuss our financial and operational performance for Q2 and H1 FY 2026. This marks a very special milestone for us, our first call as a listed company. I want to begin by thanking all our investors, stakeholders, and partners for the incredible trust and support you have shown in Kalpataru. Your confidence has enabled us to start this new chapter with a commitment toward growth and value creation. Let me begin with a brief overview of our company. Kalpataru Ltd is one of the leading India's real estate development company with a legacy of more than five decades in creating landmark residential and commercial spaces.
Headquartered in Mumbai, we are among the marquee developers in the Mumbai Metropolitan Region, India's largest and most premium real estate market, and Pune, which is amongst India's top-selling market. We are known for creating high quality, design-driven, and sustainable developments that cater to a wide range of customers. Our portfolio includes luxury and premium housing, aspirational housing, integrated townships, and select commercial and retail developments. As of September 30th, 2025, we have successfully completed 81 projects covering nearly 21 million square feet of developable area. We have a strong pipeline of 31 ongoing, forthcoming, and planned projects. The total potential development on our area of around 44 million square feet. I would like to highlight the fact that the land payments for these projects are already done, and the company only has to get requisite approvals to launch these projects.
This gives our organization a very unique advantage. Our focus on design excellence, customer centricity, and quality construction has helped us build a strong brand reputation and enduring trust among home buyers, investors, and partners alike. Overall, we see the real estate market continuing to be buoyant for us in the micro markets where we operate on back of sustained demand for premium lifestyle housing, along with stable interest rates, steady income growth, and continued performance for homeownership as a long-term asset class. Coming to our performance for this quarter and H1 FY 2026, we continued to see healthy traction across our projects in Q2. In Q2 FY 2026, we achieved pre-sales of INR 1,329 crore, representing a 19% growth year-on-year, and collections of INR 1,162 crore, marking a 37% increase over the same period last year.
For the first half of FY 2026, our pre-sales stood at INR 2,577 crore, up 43% year-on-year. While collections reached INR 2,308 crore, reflecting a 37% growth year-on-year. This consistent performance across both quarters reflects a combination of a strong market sentiment and underlying strength of our brand, the quality of our portfolio, and our execution focus. It also reinforces the continued confidence that customers have in Kalpataru's delivery capabilities and reliability in the market. With this performance in H1 FY 2026, we are confident of achieving our full- year guidance. Now let me share key project updates. During Q2 FY 2026, we launched our largest offering at Kalpataru Parkcity so far, namely Kalpataru Estella.
It is spread across 12 acres and comprises eight towers, featuring a six-acre podium with nearly 74% open space and a 76,000 sq ft clubhouse. We launched Towers A and B in July, comprising approximately 900,000 sq ft. Thane today stands as a major beneficiary of several transformative infrastructure projects, including Metro Lines 4 and 5, the Thane-Borivali twin tunnel, the Mumbai-Ahmedabad high-speed rail, water taxi services, and extensive highway upgrades. At the heart of this growth lies Kolshet, and with Kalpataru Parkcity at its crown jewel, the largest planned township in the area, we will surely gain from this. Designed with wide tree-lined avenues, vibrant high street retail, anchored by the iconic 25-acre NaMo Grand Central Park, it offers a unique urban experience. Every weekend, the park attracts 15,000- 20,000 visitors, giving them a firsthand glimpse of the lifestyle Kalpataru Parkcity embodies.
With its relative affordability compared to Mumbai and the steady progress of these infrastructure developments, both Thane and Kalpataru Parkcity are poised for remarkable growth in the years ahead. We also launched a new tower at our existing project, Srishti Namaah, in Mira Road. This project is a premium township spread over 9.36 acres, offering 2, 3, and 4 BHK residences with expansive open spaces, generous decks, and over 40 lifestyle amenities, including a large clubhouse, landscaped garden, high street retail, and wellness-oriented leisure zones. With excellent connectivity and a growing suburban ecosystem, Srishti Namaah combines lifestyle convenience and value for homebuyers in this high-potential micro market. Launch Code Kalpataru One at Worli, our flagship luxury project, has had a great response, and we have well surpassed our H1 sales target. Kalpataru One is a one-of-a-kind development spread over 5 acres of prime land in the heart of Worli.
We have planned this to be an exclusive low-density community of four-bedroom and five-bedroom developments, which will have only 248 units across three residential towers, with apartment sizes ranging from 3,500 sq ft - 4,800 sq ft. There are only two apartments per floor, offering the customer a great amount of flexibility. The project will have over 3 acres of green spaces spread across levels and five levels of best-in-class amenities. The encouraging customer demand and acceptance of this project strengthens our confidence in meeting our future presales projections. Looking ahead in FY 2026, we plan to bring to market our new project in Lokhandwala, Andheri. We will also be launching a few new tower phases in our existing projects like Eternia in Thane and Aria in Karjat.
With this, we will be launching approximately 3.2 million square feet of saleable area in this financial year, reinforcing our strong execution pipeline and our focus on maintaining a balanced mix of owned, JV, and redevelopment projects across strategically important locations. On the business development front, we continue to evaluate opportunities for redevelopment, JV, JD, plotted developments, mostly in MMR and Pune. Given our existing portfolio, which gives us good visibility for the coming years, we shall be selective in taking on new projects that will meet our expectations. As we begin our journey as a newly listed company, we remain anchored to the same principles that have defined Kalpataru for decades: integrity, innovation, and excellence. With a strong balance sheet post our IPO and a diversified portfolio, we are well-positioned to capitalize on sustained housing demand and the urban transformation underway across India.
With that, I would like to now hand over the call to Mr. Chandrashekhar Joglekar for a detailed update on our financial performance. Over to you, CJ.
Thank you, Parag. Good morning, everyone, and welcome to our first earnings call. Let me start with the financial update for Q2 and H1 FY 2026. We reported revenue from operations of INR 794 crore for Q2 FY 2026 and INR 1,237 crore in H1 FY 2026. Our adjusted EBITDA stood at INR 190 crore for Q2 and INR 293 crore for H1. On the profitability side, we reported a profit of INR 5 crore for Q2 versus a loss of INR 52 crore in Q1. Till H1 FY 2026, majority revenue recognition was done from our nine projects, which are at a percentage of completion method of revenue recognition. It is pertinent to note that here, the company follows project completion method for some of its projects, recognizing the revenue with the projects which have started from April 2022 onwards.
As a result of which, the revenue from 13 other projects will be recognized only upon obtaining the occupation certificate of those respective projects. Whereas expenses of such projects, mainly the marketing and the corporate overheads and also other administrative overheads, et cetera, are expensed out in a particular period on a time cost basis. Some of our key projects like Kalpataru One, Kalpataru Amare, Kalpataru One is at Worli, Kalpataru Amare at Juhu, Kalpataru Vivant at JVLR, Kalpataru Advay at Borivali, Kalpataru Blossoms at Pune, Sinhgad Road, have seen good sales momentum. All these projects are following a percentage of project completion method, and the revenue for these projects also will be getting recognized in the coming years on the basis of the project completion method. I would like to highlight here that our cash EBITDA margins will be in the range of 35% and upward going forward.
As already said, the land payments for all our properties, which are already with us under the ongoing projects as well as forthcoming projects, are paid for. As of 30th September 2025, our gross debt stood at INR 8,928 crore, while cash and cash equivalents were at INR 903 crore, resulting the net debt of INR 8,025 crore. This is a noticeable improvement from INR 9,310 crore of the debt at the year-end of FY 2025. This has helped us to show a sharp improvement in our net debt equity ratio, which now stands at around 2 x compared to 3.8 x as of March 2025. This consistent deleveraging trend underscores our strong cash generation, disciplined capital allocation, and continued focus on maintaining a healthy financial profile. We expect this metric to further improve in the times to come, mainly from the organically generated cash flows from the projects which are ongoing.
With a strong balance sheet and consistent cash flow generation, we are also actively evaluating refinancing options to further optimize on our finance cost. This initiative is aimed at improving our overall capital efficiency and supporting long-term profitability as we scale up our operations. For FY 2026, we are maintaining a strong growth outlook backed by healthy demand visibility and execution momentum. We have guided for pre-sales of around INR 7,000 crore, representing around 55% increase year-on-year as compared to FY 2025. Also we have guided for the collection of INR 5,700 crore, which would be around 56% year-on-year growth. At the same time, we remain focused on strengthening our balance sheet with net debt expected to reduce, which will be around INR 7,300 crore at the end of the year, this financial year, making a 22% reduction from FY 2025 levels.
This guidance highlights our confidence in sustaining robust operational performance while maintaining prudent financial discipline. With that being said, we would like to open the floor for question- and- answers.
Thank you very much. We will now begin the question- and- answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Akash Gupta from Nomura. Please go ahead.
Hi, sir. Am I audible?
Yes, Akash.
Hi, sir. Congrats on great performance. My first question is on your guidance. Right now in the first half, we have achieved 40% of the guidance. How confident are we that we will be able to achieve that? In FY 2027, what kind of growth expectations are we looking at? I understand we have a long area already under us. What kind of growth should we look at in FY 2027?
Okay. Akash, typically for a real estate sector, in the first half of the year, any financial year, the guidance for the whole year is achieved to the extent of around between 35%-40%, primarily due to the period of this April to September in which the festive seasons, et cetera, come in the second half of the year, actually. That is how. Number two, the launches which we have launched in the Q2, especially at the end of the Q2, they start taking off from the sales and the performance, I mean, the pre-sales point of view in the third quarter and fourth quarter. Number three, we have also one launch to come up, which is Kalpataru Hrushikesh. I mean, that is at Lokhandwala. All these things will total up to the achievement of the guidance which is given to the market.
Okay.
So far as FY 2027 is concerned,
Okay.
So far as FY 2027 growth momentum is concerned, it will continue on the same lines of FY 2026.
Okay. In FY 2027, should we expect a 20% kind of growth?
Not necessary, but it will be around that.
Okay, got it. My next question is on your net debt and net debt- to- equity. We are already at roughly 2 x. How should we think about net debt and net debt- to- equity over the next two years? Where should your net debt to equity land at?
Okay. Considering that the current equity, which the company has, doesn't change, subject to only the changes due to the profits getting added to it, no further capital raise. With that, the guidance which can be given to the market is that currently it is at 2 x. By FY 2027, it would be around 1.5 x, and by FY 2028 it would be around 1 x.
Okay. 1 x by FY 2028.
Yes. Or earlier.
Okay. My third and final question is on your footfalls, conversions, and competitive intensity in two of your projects. Number one is in Thane, and second one is in Worli. How are we thinking about these trends? There has been some noise on a slowdown in the residential market. How are you thinking about your premium segment in Thane and then your super luxury segment in Worli? What kind of trends are you thinking? Or what have you seen?
Yeah. Akash, at Worli, we are actually seeing a very good footfall. Because of, frankly, not too much supply as people foresee in Worli is not there of Grade A premium development. Ours being unique, being a 5-acre development with a very low density, we are seeing a very good footfall and good inquiry. Construction is going in full swing. We do not see any slowdown there. In Thane, as the project is a large project, and we are getting it gearing up to get all the construction complete. Imensa, which was the second phase in the project, nearing completion. We have handed over many homes there, and the whole livability is increasing in veracity.
We feel over the next six months to 12 months, the footfall will only continue to increase, because being in a very unique point of being affordable and location with a unique development of having all the facilities within. We see good footfall and conversion happening there also. We continue to launch new towers there, and our sales, I think, is slowly picking up in Thane, and it will take about six months to 12 months for it to really peak in.
Got it. And sir, I think you mentioned in the introduction that we saw very strong demand traction in Worli. How much have we launched in Worli and how much did we sell till now in the first half?
In the first half in Worli, we have sold INR 720 crore.
Okay.
If you add October also, we have sold INR 850 crore in Worli, much ahead of our targets.
How much have we launched?
We have launched
two towers,
two towers out of three towers.
Okay.
Not all the levels.
Understood. Got it, sir. Thank you so much for answering my questions.
Thank you, Akash.
The next question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead.
Yeah. Good morning, everyone. Thank you for the opportunity. So first question is on the cash flows for the first half. If you could just help us reconcile the movement in debt, ex the IPO proceeds. What has been our construction spend and BD spend? That is first question. And second question is, what is your outlook on the BD which we want to do now on an ongoing basis, whether it is society redevelopment, JDAs, outright, or what are the avenues we are looking at to expand our footprint beyond the existing micro markets where we are present in Mumbai or Pune? Yeah. Thank you.
Yeah. Hi. So, Adhidev. So on the construction spend, it is around INR 705 crore for the first half.
Okay.
Of course, this doesn't include municipal payments made for the FSI, et cetera, which will add to another INR 125 crore. TDR and all payments would be another INR 75 crore. So all together it will be INR 700 crore plus INR 200 crore, so INR 900 crore.
Okay.
On the project cost, typically.
Okay.
On the business development side, whether it is a redevelopment or a joint development or whatever, the spend has been around INR 75 crore -INR 80 crore.
Okay.
During the H1.
Okay. Sure. Sir, any guidance you would like to share broadly on construction spend and BD spend for the full- year, means for this year at least, whatever in the second half?
Yeah. So the first half was a little subdued due to monsoon, et cetera, on the construction side. Therefore, in the second half, it is going to be higher. It is going to be higher to the extent of maybe 1.2x to 1.3 x of the first half on the construction spend. On the BD side, again, there could be a spending of around INR 50 crore in the second half due to a couple of new BDs coming, which are in pipeline.
Okay. Yeah. Fine, sir. Sir, and just a thing on the overall our BD strategy now, thinking from more medium-term perspective, how are we looking in terms of GDV, any GDV additions which we want to do outside the existing projects which we have?
Yes. Good morning, Adhidev.
Yeah.
We are very strong in redevelopment. We have expertise of doing redevelopment for last 20 years.
Right.
We have completed many projects and which are ongoing also across Mumbai. We are looking at multiple redevelopment projects. We hopefully should, in the next six months, talk about two more projects, which we should be taking one in Andheri and one in Sandavali. We will discuss, and others are also under discussion. Once we get that done. Plus, our expertise in plotting, because our two plotting developments are going on. We know that, and plotting has done also well. We are looking at business development and redevelopment in the suburbs and city, plotting developments in MMR, projects in Pune. These are the focus areas, and we are getting good pipeline coming through that. We have one project in Hyderabad and one project in Noida which we completed.
Not now, but in the future, we will be definitely looking at those markets, and whenever we get a good opportunity, we will look at that.
Okay. Sure, sir. Yeah, that is very helpful. Thank you, and all the best.
Thank you.
Thank you. A reminder to all the participants, you may press star and one to ask a question. The next question is from the line of Sukrit D. Patel from Eyesight Fintrade Private Limited. Please go ahead.
Morning to the team. I have two questions. My first is, as more infra players scale up across T&D and B&F space, what is Kalpataru doing to build a strong edge, not just through order wins or execution speed, but something in a more extended way, like a way of working or thinking that grows over the time and makes it hard for your competitors to copy your model? I just want to understand a future outlook on this particular topic. Thank you.
Good morning, Sukrit. This is the investor call for Kalpataru Real Estate. Your questions are for transmission development and for building EPC business, which is the KPIL, Kalpataru Projects. That investor call has already been completed. I can give your details to my Investor Relationships of KPIL, and they will get in touch with you.
Okay, fine. Thank you. Thanks.
Thank you. The next question is from the line of [Bhavik] from TNPL. Please go ahead.
Hi. Good morning, everyone. My question is pertaining to your Borivali project. There are two questions. One, since we are following the percentage of completion method, when do you expect completion of that project, and how is the current sales trend going on? Thank you.
Hi, Bhavik. Borivali project is Kalpataru Advay. The OC for this project is expected in. The project is divided into multiple buildings.
Three towers.
Three towers. It will be from now, two years later and three years later.
FY 2028 and FY 2029.
Precisely.
FY 2028 and 2029. Three towers. So all of them would have a different OC timelines.
Yes.
I think the difference would be about six months only.
Six months gap.
They all have started.
We have sold more than 60%.
Of the launched ones.
Of the launched. 60%-65% of the launched.
There has been good traction.
Yeah. We are only on the seventh, eighth slab on there. We have got a good traction happening there.
I think the traction was very high when the project got launched. Are we seeing a slowdown in the sales there, or that is how you had estimated sales to ramp up?
Our sales actually are good now. The sustainable sale, what we had targeted, we have achieved that.
Okay. Just clarifying the OC parts of the outer one, timeline is FY 2029 which we are referring, right? For probably the largest tower, Tower B.
Yes, correct.
Okay. All right. Thank you so much.
Thank you. A reminder to all the participants, you may press star and one to ask a question. The next question is from the line of Sumit Kumar from JM Financial Institutional Securities. Please go ahead.
Hi. Good morning, and thanks for the opportunity. My first question is on the pre-sales performance. If you could give us what has been the contribution of the Thane project in pre-sales?
Hi, Sumit. The Thane project has been 20% of the pre-sales.
For 1H or 2Q, sir?
H1.
H1. On the launch pipeline and the ready inventory, I could see there is about INR 24,000 crore of forthcoming and planned. All of this has been launched or a part of it will be launched going ahead?
The INR 24,000 crore, which is forthcoming and planned, will be launched over a period of the next few years. Some of them will be launched in the next six months. Forthcoming comes the Andheri project, and two towers in Eternia, which we are going to launch in Thane, and the Aria project.
Okay. This is overall, basically, the launch pipeline that you have for the next two years.
Launch pipeline to the next three and a half years.
Okay. Sir, one last question. There has been a slight increase in debt sequentially. Any reason that you could point out?
A slight increase in the debt, you say?
Yes, sequentially, quarter-on-quarter from June to September.
Okay. So basically, the new projects are getting launched, and a lot of execution push has been there between quarter one and quarter two, actually. I mean, the construction finance has gone up. At the same time, there has been a repayment on the debt also. So whatever is the increase, it is quite marginal, frankly. However, yes, that is on account of the money spent on the execution and the projects.
Okay. How was sort of trended? IPO and anything.
Sorry, you are not audible, Sumit.
Any guidance on the cost of debt? How has that trended, IPO?
Guidance on the debt for the year-end, you say?
Cost of debt, interest cost of debt. The interest rate.
Okay, yeah. So in fact, good. What we have been doing is we have been actually trying to lower the cost on the debt by refinancing options, exploring the refinancing options. So for the year first half, we have already done the lowering of around INR 2,800 crore of debt has been shifted from the little higher cost to the lower cost, giving an interest arbitrage on an annual basis to the extent of at least INR 50 crore-INR 75 crore. There is going to be further such attempts going for the remaining H2 also, which will add to another INR 1,000 crore worth of debt going from the little high- cost to low- cost.
The average cost currently remains to be around 12% on the total gross debt book, which is expected to come down by this year-end by at least half a percentage minimum, because we have to average it out for the whole year, because what reduction happens is for the second half. Therefore, half a percent will come down.
Okay. Thank you. That is helpful. That is all from my side.
Thank you. The next question is from the line of Harsh Pathak from Emkay Global. Please go ahead.
Yeah. Hi, team. Good morning, and thanks for the opportunity. My first question is on the portfolio synopsis that you have given on slide 19, the forthcoming projects, I mean the total pipeline of INR 47,000 crore. Does this include your potential from the land reserves as well?
No. It doesn't.
Okay. What plans are we having on the land reserves? I am talking ex of the Surat land parcel. Are we thinking of some development, or we are planning to monetize that?
On the ex of Surat, the other land parcels, we are trying to develop them over a period of time, and also some parcels which are not in our non-core, we will monetize them.
Sure. What would the total land value be if I'm looking ex of Surat?
Do you mean to say the current market value?
Yes.
Around INR 1,000 crore.
Sure. Any ballpark figure on what kind of GDV potential this can offer?
Since the monetization could be beyond five years if it is to be developed and thereafter monetized, therefore, currently, we have not attached any GDV to that. But it would be substantial because all these land parcels are acquired quite long back.
Understood, sir. My next question is on the Andheri launch that we are planning in the second half. Where are we on the approval stage? I think we will have some BMC elections also coming up. How confident are we on launching and where are we on the approvals?
We have received the IOD for the project. We are getting one or two approvals and maybe in the next 45 days to 60 days, we should get all the approvals through. We do not foresee the BMC election to be an issue.
Okay. Sure, sir. That is it from my side. Thanks a lot for taking my questions.
Thank you.
Thank you. The next question is from the line of Nirav Vasa from GeeCee Holdings. Please go ahead.
Good morning, sir, and thank you very much for the opportunity. My question pertains to the actual interest cost, which has been debited in H1 FY 2026, and if you can help me with the number, that number for FY 2026 as a whole. That would be really helpful.
Nirav, the actual interest cost, which is debited to the profit and loss account of H1 FY 2026 is around INR 44 crore.
Sir, I would also like to. I am also asking the number which is also included in the material cost or the amount which is capitalized.
Okay. The amount which is part of the COGS is INR 304 crore for H1.
What-
INR 44 crore has got debited to the P&L.
Okay.
Both together, it is INR 348 crore.
What can this number be for the year as a whole based on your estimations?
Because in H2, a lot of revenue recognition from the projects which are getting completed on the Project Completion Method basis, the revenue will get recognized. This interest cost is going to be slightly higher, although those projects are on a lower debt trajectory, therefore it may not be substantially higher. At H1, the interest cost, sorry, the H2, the whole year, the interest cost which would be totaling, which is part of COGS, as well as which is the finance cost hitting to the P&L, would be in the range of INR 750 crore.
Thank you very much, sir.
Thank you. The next question is from the line of Akash Gupta from Nomura. Please go ahead. Mr. Akash, please proceed with your question.
Just
Hi, sir.
Akash, just a sec.
Yeah.
Just to clarify on the earlier question, what was meant was that INR 700 crore- INR 750 crore will be the total cost of interest into the COGS, plus cost of goods source, plus the interest hitting to P&L for the whole year. Just for the benefit of the earlier questioner.
Got it, sir.
Yeah, go ahead.
Thank you. Thank you for taking up my follow-up question. I just wanted to understand the status of deliveries for three projects, Kalpataru Magnus, Imensa and Parkcity and Kalpataru Radiance. Where are we on these three projects? Second is that I think we reported adjusted EBITDA margins are roughly 24%, and then we are expecting a lot of deliveries in FY 2026 and FY 2027. How should we think about the scale-up in the adjusted EBITDA margins going forward? Thank you.
Yeah. Akash, the adjusted EBITDA margins for the whole year can be considered safely in the range of 30%. That is point number one. Considering the projects which are going to get recognized for their revenue on the project completion basis. Typically, the project at JVLR, which is Kalpataru Vivant, where we are planning six towers to recognize the revenue in Q3 and Q4 altogether. Or H2, I mean. There are other projects also which will be having a very high EBITDA margins. Namely, Kalpataru Vivant is what just now I said. Vienta at Kandivali, Oceana at Prabhadevi. All these projects, the revenue of those will be hitting to the profit and loss account and the EBITDA both.
Okay.
Akash, on the question on Radiance is complete, and it is not part of the listed entity. Imensa, we have given possession to six of the eight towers, and two towers should get the possession and occupation completion by mid of January, February. Magnus also, we have given the occupation of two towers, and the third tower should happen by December, January.
Okay. Got it, sir. Thank you so much.
Thank you. The next question is from the line of Varun Julasaria from 360 ONE Capital. Please go ahead.
Yeah. Hi, thank you for the opportunity. Just wanted to check, what is the kind of free cash flow that we can expect for this year and next year? You mentioned about reducing the net debt- to- equity, but I just wanted to understand the plans for reducing the gross debt as well.
Yeah, Varun. The net cash flows which we typically talk for the real estate and OCF would be in the range of INR 1,200 crore-INR 1,300 crore for the whole year, FY 2026 minimum. This also, of course, depends on any augmentation in the sales execution and therefore the collection. It may go up. That is point number one. On point number two, the debt reduction, the guidance which is given to the market is the net debt of INR 7,300 crore. The gross debt would be around INR 800 crore higher than that, which is around INR 8,200 odd crores. That would be largely coming from the cash flows of the ongoing projects.
And the completed projects, which we will be completing in this year. It will be organically repaid. At the current levels, we are at INR 8,000 crore. Net debt is expected to go down to INR 7,300 crore or INR 7,400 crore level. Another INR 400 crore-INR 500 crore of reduction is coming organically from the cash flows.
This INR 1,300 crore you mentioned is excluding the interest payment as well?
Yes, for the second half.
This is for the full- year, right?
Sorry.
The full- year operating-
This full- year. Yes, this full- year.
And that excludes the interest payment as well, right? I mean, that's-
Actual cash outflow on the interest payment would be not corresponding to the 12% of the gross debt, because there is some part of the interest payment which gets accumulated with the capital of the loan, NCDs form, and therefore the interest payment would be paid out of this.
Okay. Next, sir, on the launches. Anything for this quarter that is in the pipeline?
This quarter, only maybe Aria will be this quarter. The next two next quarter will be the other Eternia and the other projects.
Lokhandwala.
Lokhandwala.
Okay. That is next quarter. Okay. In the current first half pre-sales, how much was it from the launches and how much was it from the sustenance?
Our 20 projects plus are going on. Most of the sales are from sustenance. Because Kalpataru One, which did, as I said, INR 1,000 crore-INR 2,800 crore, was launched in March last year. March 2025. It then typically goes into the sustenance model. In the first half, we had launched different towers as well as in the existing projects and also Kalpataru Estella, which is Kalpataru Parkcity. The total square footage and the total sales which is arrived from that, because this we have launched only in the second quarter, around INR 200 crores pre-sale value.
Okay. Rest from the sustenance. Okay.
Yes.
Yeah. Thank you. That's it from my side.
Thank you. The next question is from the line of Mihir Manek from Aditya Birla Capital. Please go ahead.
Good morning, and thanks for the opportunity. I have two questions. First question will be if you could throw some light on the competitive intensity over the Thane market. As you know, we have significant future development in that market and competition is also growing quietly on that market. Second question would be, if it's possible for you to share on slide 19, where you have mentioned the forthcoming and planned projects. If you could throw some light on how much could that be from our own land reserves? Post that, how much area of land we still have that we'll be able to monetize in the future? Please.
Yeah. Hi, Mihir. In Thane, competition is there, but the Thane market has grown a lot over the last few years. From INR 7,000 crore annual sales, it's grown to more than INR 22,000 crore annual sales in Thane market. Being in a very strong location in the center of Thane at Kolshet, which is a mid center from the beginning of Thane on the road, we are poised to get a good sales. Whenever the intensity of competition happens, the customers definitely also evaluate our project, and then only the premium projects scores over the other projects. So we feel very confident over the next few years of our velocity in Thane.
Sorry to interrupt. If you could just explain what would be our current market share in Thane market, if that's readily available.
Market share in Thane market would be about 5%, would be our market share.
Okay.
And this forthcoming planned projects, what you have said, it's 71% of it is owned, and 24% is JV/JD, and balance 5% is re-development.
Okay. And post that, what would be the area that we would still have as our land bank, which is still unutilized? If you could share that number also.
On the area, it will be quite sizable in acres. However, as on the earlier question we have answered that since that land parcels which I haven't taken as a part of this whole slide number 19, does not include that, because it is going to be developed beyond four to five years. So the value to it and the area is irrelevant for next three, four years.
Okay, got it. So at least for the next seven, eight years, we would be monetizing our own land only.
Yes.
We won't be having to go to asset light. Just wanted to understand that.
Yes. We will be having adequate pipeline of all the ongoing, forthcoming and planned projects for the next five to seven years.
Okay, got it. And mostly every land parcel will be in MMR, in and around the MMR market.
Yes.
Yeah, got it. Thank you so much.
Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to the management of Kalpataru Ltd for closing comments.
Thank you to all the participants for joining our results call. We look forward to regularly interacting with you. In case any further questions, feel free to reach out to our Investor Relations or the EY team for clarification. Thank you. Thank you, everyone.
On behalf of Kalpataru Ltd, that concludes this conference. Thank you for joining us today, and you may now disconnect your lines.