Keystone Realtors (Rustomjee) FY26 Full-Year Financial Results: Revenue Up 31%, Pre-Sales Hit Record ₹4,022 Crore
FY26 Revenue and Pre-Sales Growth Outpace Profitability Decline
Rustomjee's revenue for FY26 increased 31.45 per cent YoY to Rs 2,634.54 crore, while its profit for the same period dipped 54.14 per cent to Rs 78.86 crore. The company achieved consolidated pre-sales of ₹4,022 Crores, a 33% increase year-over-year, surpassing its annual guidance of ₹4,000 crore and marking record sales bookings for the developer.
The Mumbai-based real estate firm's revenue from operations during the quarter jumped 172.88 per cent YoY to Rs 1,595.97 crore in Q4 FY26, driving strong year-end momentum. Collections rose 13% year-over-year to ₹2,622 Crores, reflecting steady cash conversion across the portfolio.
Legacy Projects Weighing on Bottom Line
The decline in full-year profit, despite robust top-line growth, stems from Rustomjee's accounting methodology and the completion of lower-margin legacy projects. The lower profit is primarily due to the accounting standard used by the company, where profits are recognised based on the project completion method and the legacy projects with a lower Ebitda margin that the company is completing, according to Boman Irani, chairperson and managing director of Keystone Realtors.
New projects will eventually contribute Ebitda margins of over 20-21 per cent, whereas legacy projects deliver Ebitda margins of only around 5 per cent. Going forward, with these legacy projects being behind us, we should be on a good wicket to declare higher profits. This structural transition suggests margin expansion potential as the company shifts to its newer, higher-yield projects in premium and redevelopment segments.
Strong Pipeline and Project Expansion
In Q4 FY26, Rustomjee launched two projects with an estimated gross development value (GDV) of Rs 3,978 crore, while in FY26, it launched seven projects with a GDV of Rs 9,813 crore. In terms of business development, the company added five projects in FY26 with an estimated GDV of Rs 10,420 crore, surpassing its annual guidance of Rs 6,000 crore for the same.
Notably, all additions this year were redevelopment projects, reinforcing Rustomjee's strategic emphasis on Mumbai's redevelopment market. DLF, Oberoi Realty, Keystone (Rustomjee), and Signature Global remained highly concentrated in their respective home markets, reflecting a more region-focused strategy compared to peers pursuing national-scale growth.
FY27 Guidance and Medium-Term Trajectory
For FY27, Rustomjee has guided its pre-sales to be around Rs 5,000 crore, and launches and project additions to be about Rs 8,000 crore each. Even if markets are not very conducive to stronger growth, we are confident that existing launches alone should help us comfortably cross the Rs 5,000-crore target.
The company aims to achieve annual sales of Rs 10,000 crore by FY30 through its three-pronged approach of velocity, scale, and stability, where the velocity will come from other areas of residential development, such as plotted developments and senior living, scale from expanding into other cities, and stability from commercial real estate. Rustomjee is targeting about Rs 100 crore in revenue generation from commercial real estate. Its strategy is to sell enough to recover costs while retaining the profit component as an owned asset.
Balance Sheet Strength
The company maintains a strong credit profile, evidenced by a Gross Debt to Equity ratio of 0.26:1 as of Q4 FY26 and a AA- rating from Crisil. This robust balance sheet provides capacity for project acquisitions and development investments supporting the ₹10,000 crore pre-sales ambition by FY30.