Earnings Call Transcript - XNSE:KALPATARU 2026-10-30

Operator

Ladies and gentlemen, good day and welcome to the Kalpatru Limited's Q2 and H1FI 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 touchtone phone. I now hand the conference over to Mr. Advaita Patarpod, Head Investor Relations at Kalpataru Limited. Thank you and over to you, sir.

Advaita Patarpod, Head of Investor Relations

Thank you, Michelle. Good morning, ladies and gentlemen. Welcome to Q2 and H1 FY27 results call of Kalpataru Limited. We have with us today the management of Kalpataru Limited, represented by Mr. Parag Manoth, Managing Director, Mr. Narendra Lodha, Executive Director, and Mr. Chandrasekhar Zogaykar, I would like to state that any forward-looking statements made during the discussion today are based on our comments and projections about future events, and are subject to risks and uncertainties beyond that. With that, I will now hand over the call to Mr. Munaut for the opening remarks, post which we shall open the floor for Q&A. Over to you, sir.

Parag Manoth, Other

Thank you, Adrit. Good morning, everyone. The macro environment continued to be challenging for second quarter in a row. Despite an external environment marked by volatile geopolitical developments and evolving interest rate trajectories, the Indian economy continues to demonstrate resilience underpined by strong domestic fundamentals. The Mumbai metropolitan region remains among 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, Kalpatru 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. Sales for Q2 FY27 was 1,258 crores, down 5% while it was 2,587 crores for H1 flat. Sales collection was flat 1,189 crores for Q2 while it was 2,554 crores, up 9% YY for H1. Sales momentum at Kalpatru Park City, Thane, has been very strong. We have recorded Rs. 420 crores of pre-sales during H1 so far, and walk-in interest remains high with healthy conversion. On a high basis, our walk-ins are up by 25%. Conversion rate has almost doubled, resulting into a pre-sales growth of 130% at Kalpatru Park City. H1 FY26 was $167 crore, and now our H1 FY27 was $420 crores. With more than 2,000 families already residing on site, we anticipate welcoming over 3,000 families by the end of next year. Increasing resident occupancy and key retail outlets, turning operational during higher walk-ins and better conversion. With this, we anticipate H2 to be better than H1. At Kalpatu 1 in Worley, we continue to see very strong customer interest in the product. The demand is building up, and we have started 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 Kalpatru Alara in Bakunagar, which received various... The projects featured two-, three-, and four-bedroom residences, along with 25-plus curated lifestyle amenities. The project was launched towards mid-September, and the response we have received has been encouraging, with 30% of the projects sold. This is on the back of another strong launch that we did in quarter one for Kalpatu Vyan, Rishikesh, Lokhanwala, which it 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. Coming to project completions, during the quarter, we received an occupation certificate for 1.58 million square feet across 1,500 units. H1 FY27, we have delivered over 2,200 units, adding up to 2.37 million square feet, continuing our strong track record of project execution and handovers. We are well on track to deliver on a target of 5.5 million square feet of completions this year. I would now like to hand over the call to Chandrasekhar Zoglekhar for a detailed update on our financial performance. Over to you, Chandrasekhar.

Chandrasekhar Zogaykar, CFO

Thank you, Parash. Good morning, everyone, and welcome to our Q2 and H1 FY27 earnings call. Let me start with the financial update. During Q2, we reported revenue from operations of Rs. 437 crores. Our adjusted EBITDA during the quarter was Rs. 73 crores with the margins of 16.6%. Profitability front, we reported a loss of Rs. 71 crores for the quarter. H1 adjusted EBITDA was 167 crore with margin of 18.4%. On the profitability, we reported the loss of Rs. 120. It follows project completion method as has been said earlier. Most of its projects, we will be completing few of our projects which will be corresponding revenue and profit. Turning to our balance sheet, as of 30th September 2026, cash and cash equivalents We're 856,000. Consequently, our net debt to equity ratio stands at 2.1x. Our gross debt was flat slightly because of consumption of the working capital. H1 FY27 steady for us. For reminder of the fiscal year FY27, our focus is clear. To accelerate it on the pre-sales, we do have a good pipeline of new launches as well as sustainable sales from the existing portfolio that should help us achieve our targets for the year. Our guidance for pre-sales for FY27 remains unchanged. Equal focus will be also on execution So that we are able to deliver all our projects, augment our collections. In closing, I wish to state that the company would be completing around 14 million square feet of ongoing projects in FY27, FY28, and FY29 gradually. Out of that, around 5.5 million square feet will be completed in FY20. And out of that 5.5 million square feet target for FY27 completion, 2.3 million square feet has already been completed in H1 of FY27. The remaining out of 14 million will be completed in FY28 and FY29 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 flow significantly. Finally, with that, we would be happy to take your question.

Operator

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 the touchtone phone. If you wish to withdraw yourself from the question queue, you may press star and two. Persons are requested to use only handsets while asking our question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Saurav Gilda from JM Financials. Please go ahead.

Saurav Gilda, Analyst — JM Financial

Yeah, hi. Good morning. Am I available?

Operator

Yes, sir, you are.

Saurav Gilda, Analyst — JM Financial

Yeah, hi. So my first question is on the guidance with pre-sales of close to 2,600 crore achieved in H1. Can you please share a broad level bridge between the current pre-sales number and the guidance that we have provided for the year?

Chandrasekhar Zogaykar, CFO

Out of 6,500 crore, around 40% of the pre-sales has been already achieved in H1. And the remaining H2 period for FY27, the pre-sales will be achieved out of the sustenance sales from all the ongoing projects and a couple of launches which we will be doing, which are to RD at Nagpur. However, the weightage of the pre-sales for the remaining H1, I mean H2 of FY27 will be on the sustenance sale, and the whole postive period starting from October till March will take care of it, and it has been a huge trend that guidance is generally met in the H1 and is met in H2.

Saurav Gilda, Analyst — JM Financial

My last question is on the launch readiness. If you can highlight the current status of the three launches that you have highlighted in terms of approvals, where they are in terms of, you know, launch timelines, will that be back-ended or do you see those projects getting launched during the festive season?

Parag Manoth, Other

The Sumanagar project at Chembur, where IOD has come, vacation of the residence is happening, and we should get it. It will happen in the fourth quarter of this year. Regarding the Nagpur, we have got the pre-approval. The final approval will come in a month and a half. We will get the RERA, and it should also be. We have applied for RERA, and we should be able to launch it.

Saurav Gilda, Analyst — JM Financial

You know, any specific segment that you are seeing, you know, demands slow down or any moderation in uptake that you want to highlight or, you know, everything is, you know, or, you know, the demand trend across spectrums remain healthy. Just wanted to understand the demand and environment across the price spectrum.

Parag Manoth, Other

In the executive summary, yes, the demand seems healthy across everywhere. And I'll break it down. Under the 3 crore bracket, we have seen good response. Maybe in Thana, in Western, that's one zone we are in. In the plotting zone, also we have got very good demand. Good sales are happening in that. Western Mumbai, Bukhanwala and one in Bangunagar, we saw a very good response and undergoing under-construction projects which are also selling well. These are all in the 3 to 10 crore bracket. In the luxury market, that demand...

Operator

Thank you. Ladies and gentlemen, that was the last question. I now hand the conference over to the management of Kalpatru Limited for closing comments. Thank you and over to you, sir. I'm sorry, sir, you're not audible.

Parag Manoth, Other

I understand there's one more question.

Operator

Yes, sir. Can we take that question? Okay, sir. We'll take the next question from the line of Vishal Singh, an individual investor. Please go ahead.

Vishal Singh, Analyst — Individual Investor

Yeah, hi, sir. Good morning. So, sir, I have just three questions. So, one is regarding net debt level. So, sir, what is the year and guidance for the net debt level? And my second question is on the, are we on the verge of executing our year and pre-sales guidance? And my third question is on the, are also some color on the plotted development project, please?

Chandrasekhar Zogaykar, CFO

Focus will be on execution, as I said earlier, on the projects, and we will be consuming our capital and funds and cash flow for execution of the projects, as well as some spend will be on the business development also. Then what regarding the plotted...

Parag Manoth, Other

All the developments are in Nagpur and in Karjat.

Vishal Singh, Analyst — Individual Investor

Got it. And sir, what is your year-end pieces guidance?

Chandrasekhar Zogaykar, CFO

As I said earlier, it is 6,500 around.

Vishal Singh, Analyst — Individual Investor

Put some light on the cash flow part. How is that panning out?

Chandrasekhar Zogaykar, CFO

The net operating cash flows and the gross cash flows will remain more or less same as compared to FY26. In FY26, we had a pre-sales of $5,280. In FY27, we will be having around $6,500. Cash flows will be...

Vishal Singh, Analyst — Individual Investor

Thank you so much, sir.

Operator

Thank you. A reminder to all the participants that you may please press star and want to ask questions. The next question is from the line of Aashi from MyCell Advisors. Please go ahead.

Aashi, Analyst — MyCell Advisors

Hi, am I audible?

Operator

Yes.

Aashi, Analyst — MyCell Advisors

Yeah. Hi, sir. Sir, I just wanted to ask a couple of questions. So, I wanted to know which other projects which are yet awaiting approvals and could these delay our launches? That's my first question.

Parag Manoth, Other

Hi, Ashi. We had answered this earlier. We have three projects to be launched and one in Nagpur project will be launched in quarter three.

Aashi, Analyst — MyCell Advisors

Okay, okay. And so what is the amount of price hike that we have taken in the past few months to absorb this inflationary impact? And, you know, how much headroom would be remaining for the price increases in the next phases?

Parag Manoth, Other

Yeah. The price rise has happened up to 3% to 5% in the projects, and it's taken care of the inflation and cost of product now and what we anticipate in the future.

Aashi, Analyst — MyCell Advisors

Understood. Understood. Okay, so that's it from my side. If I have any more questions, I'll come back. Thank you.

Operator

Thank you. Ladies and gentlemen, that was the last question. I would now like to hand the conference over to the management of Kalpitaru Limited for closing comments. Over to you, sir.

Parag Manoth, Other

Thank you all the participants for joining our results call. In case of any further questions, feel free to reach out to our investor relations or the E&Y team for clarification.

Operator

Thank you, members of the management. On behalf of Kalpitaru Limited, that concludes this conference. We thank you for joining us, and you may now disconnect your lines. Thank you.