Keystone Realtors (Rustomjee) Q1 FY27 Financial Results: Net Profit Surges Over Threefold to ₹53 Crore, Revenue Up 72% YoY
Keystone Realtors Reports Threefold Jump in Q1 FY27 Profit Amid Accounting Transition
Keystone Realtors reported a more than threefold year-on-year increase in its profit (attributable to owners of the parent) for the first quarter of FY27, which stood at ₹53.14 crore. The Mumbai-based developer's profit was driven by higher revenue and margins, with the board approving the unaudited results on August 4, 2026.
Revenue Growth Reflects Accounting Method Shift
The developer recorded a 72.19 per cent year-on-year jump in revenue from operations to ₹470.29 crore, mainly due to a change in its revenue recognition method. The company now recognises revenue under the percentage of completion method (POCM), replacing the project completion method.
This shift in accounting approach is significant for understanding the profit trajectory. In the prior-year quarter (Q1 FY26), the company reported net profit of ₹14.5 crore on revenue of ₹273.1 crore under the older accounting standard, which required revenue recognition only upon project completion.
Margin Expansion Driven by Project Mix
The company's EBITDA margin stood at 21.3 per cent in Q1 FY27, compared with 10.1 per cent in Q1 FY26, as the company's legacy projects with lower EBITDA margins have either ended or are nearing completion. This indicates that newer projects in the portfolio carry significantly higher profitability.
Cost Pressures and Execution Discipline
Boman Irani, chairperson and managing director of Keystone Realtors, told Business Standard that the West Asian geopolitical tensions increased the company's construction costs by around 19 per cent. Despite these pressures, the company has maintained execution discipline.
"Like everyone else, we've experienced the cost increase. We've accepted the cost increase, but we've ensured that none of our ongoing projects is delayed. Nothing is being passed on to customers who have already purchased apartments. We always honour the prices at which they booked," Irani said. The company typically sells around 30 per cent of inventory within the first six months of launch, another 35-40 per cent during the project's life, and the remaining 30 per cent towards completion, a phased sales strategy that helps manage inflation.
Q1 Pre-Sales Reflect Absence of New Launches
Rustomjee's pre-sales for Q1 FY27 declined 42.2 per cent year-on-year to ₹617 crore as the company did not launch any new projects during the quarter. The company said sales were supported by sustained demand for its ongoing projects and expects momentum to improve in the coming quarters amid easing geopolitical uncertainties.
Pipeline and FY27 Outlook
Rustomjee plans launches worth ₹8,000 crore in FY27. The company retained its ₹8,000-crore launch pipeline despite higher construction costs, signalling confidence in maintaining its development trajectory despite inflationary headwinds.
About Keystone Realtors
Keystone Realtors Limited operates under the brand Rustomjee and provides various residential buildings, premium gated estates, townships, corporate parks and various other real estate projects. The company is one of the leading real estate developers in the Mumbai Metropolitan Region (MMR) and focuses on residential townships, premium housing projects, redevelopment projects, and integrated real estate developments.