Kalpataru Ltd (KALPATARU) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to the Kalpataru Limited Q2 and H1 FY '27 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. I now hand the conference over to Mr. Advait Phatarphekar, Head, Investor Relations at Kalpataru Limited. Thank you and over to you, sir.
Advait Phatarphekar (Kalpataru Limited): Thank you, Michel. Good morning, ladies and gentlemen. Welcome to Q2 and H1 FY '27 results call of Kalpataru Limited. We have with us today, the management of Kalpataru Limited represented by Mr. Parag Munot, Managing Director; Mr. Narendra Lodha, Executive Director; and Mr. Chandrashekhar Joglekar, Director, 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.
Parag Munot (Kalpataru Limited): Thank you, Advait. Good morning, everyone, and a warm welcome to all of you. The macro environment continued to be challenging for a second quarter in a row. Despite an external environment marked by global economic uncertainties, volatile geopolitical developments, and evolving interest rate trajectories, the Indian economy continues to demonstrate resilience underpinned by strong domestic fundamentals. The Mumbai Metropolitan Region remains amongst the most compelling real estate markets in India, benefiting from sustained infrastructure investments, improving connectivity, urban regeneration initiatives, and increasing demand for high-quality residential developments. Consumer preferences continue to shift towards established and execution-focused developers, leading to consolidation within the sector. Supported by these favorable industry dynamics, Kalpataru continues to execute on its strategy of delivering premium developments in premium and prime locations while maintaining a disciplined approach towards growth and capital allocation. Now let me walk you through some of the key numbers for Q2 and H1. Pre-sales for Q2 FY '27 was 1,258 crores, down 5%, while it was 2,587 crore for H1, flat YoY. Sales collection was flat, 1,189 crore for Q2, while it was 2,554 crores, up 9% YoY for H1. Sales momentum at Kalpataru ParkCity, Thane has been very strong. We have recorded ₹420 crores of pre-sales during H1 so far, and walk-in interest remains high with healthy conversion. On a YoY basis, our walk-ins are up by 25%. Conversion rates almost has almost doubled, resulting into a pre-sales growth of 130% at Kalpataru ParkCity. H1 FY '26 was 167 crore and now, our H1 FY '27 was 420 crores. With more than 2,000 families already residing on site, we anticipate welcoming over 3,500 families by the end of next year. Increasing resident occupancy and key retail outlets turning operational are driving higher walk-ins and better conversions. With this, we anticipate H2 to be better than H1. At Kalpataru One in Worli, we continue to see very strong customer interest in the product. The demand is building up, and we are starting seeing conversion improve in this festive season. This is a best-in-class product, and we remain confident on its long-term performance. Coming to new launches, we launched our premium project Kalpataru Alara in Bangur Nagar, Goregaon West during the quarter, which received very good response. The projects feature 2, 3 and 4 bedroom residences along with 25 plus curated lifestyle amenities. This project was launched towards mid
Parag Munot (Kalpataru Limited): and the response we have received has been encouraging with 30% of the project sold. This is on the back of another strong launch that we did in quarter one for Kalpataru Vihan, Rishikesh, Lokhandwala which had continued its sales momentum in this quarter as well. We have a strong pipeline of launches for the remaining year and we hope to carry this momentum into other project phases when we launch them. Turning to project completions, during the quarter, we received occupation certificate for 1.58 million square feet across 1,500 units. For H1 FY '27, we have delivered over 2,200 units, adding up to 2.37 million square feet, continuing a strong track record of project execution and handovers. We are well on track to deliver our on our target of 5.5 million square feet of completions this year. With that, I would now like to hand over the call to Chandrashekhar Zoglekar for a detailed update on our financial performance. Over to you, Chandrashekhar.
Chandrashekhar Joglekar (Kalpataru Limited): Thank you, Parag. Good morning, everyone, and welcome to our Q2 and H1 FY '27 earnings call. Let me start with the financial update. During Q2, we reported revenue of from operations of INR437 crores. Our adjusted EBITDA during the quarter was INR73 crores with the margins of 16.6%. On the profitability front, we reported a loss of INR71 crores from the for the quarter. During H1, on the other hand, our revenue came came in at INR909 crores. Our adjusted EBITDA was INR167 crores with margin of 18.4%. On the profitability, we reported loss of INR100 crores. The company follows project completion method, as has been said earlier, for its revenue recognition for the most of its projects. During H2 of FY '27, we will be completing few of our projects which will lead to its first-time revenue recognition of the corresponding revenue and profits. Turning to our balance sheet, as of 30th September 2026, our gross debt stood at INR9,179 crores, while cash and cash equivalents were INR856 crores, resulting into a net debt of INR8,323 crores. Consequently, our net debt-to-equity ratio stands at 2.1x. Our gross debt was flat quarter-over-quarter, while net debt went up slightly because of consumption of the working capital cash balances. H1 FY '27 has been steady for us. For remainder of the fiscal year FY '27, our focus is clear, to accelerate on the presales. We do have a good pipeline of new launches as well as sustenance sale from the existing portfolio. That should help us achieve our targets for the year. Our guidance for presales for FY '27 remains unchanged at INR6,500 crores. Equal focus will be also on execution so that we are able to deliver all our projects as planned and augment our collections and drive cash flows. In closing, I wish to state that the company would be completing around 14 million square feet of ongoing projects in FY '27, FY '28 and FY '29 gradually. Out of that, around 5.5 million square feet will be completed in FY '27 itself. Out of that 5.5 million square feet target for FY '27 completion, 2.3 million square feet has already been completed in H1 of FY '27. The remaining out of 14 million will be completed in FY '28 and FY '29 gradually. All these projects will recognize revenue and profits in their respective year of completion because they follow project completion method of revenue recognition. This will also strengthen our balance sheet and cash flows significantly, thereby leading to reduction in the gross debt as well as net debt. With that, we would be happy to take your questions.
Moderator: Thank you very much, sir. Ladies and gentlemen, we will now begin with the question-and-answer session. Anyone who
Moderator: wish 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 handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
Moderator: The first question is from the line of Sourav Gilda from JM Financial. Please go ahead.
Sourav Gilda (JM Financial): Yeah. Hi. Good morning. Am I audible?
Moderator: Yes, sir. You are.
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