RUSTOMJEE - Keystone Realtor

📊 NSE: RUSTOMJEE 🏢 Construction 📅 Last Updated: 12/14/2025 8:53

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations for H1 FY26 was INR 772.1 Cr, representing a 19.1% decrease compared to INR 955.2 Cr in H1 FY25. The revenue is primarily driven by residential and mixed-use real estate developments in the Mumbai Metropolitan Region (MMR).

Geographic Revenue Split

100% of revenue is generated from the Mumbai Metropolitan Region (MMR), where the company focuses its residential, township, and commercial developments.

Profitability Margins

PAT after share of profits for H1 FY26 was INR 26.2 Cr (3.2% margin), a significant decline from INR 91.2 Cr (9.2% margin) in H1 FY25. The PAT margin for Q2 FY26 stood at 1.9%.

EBITDA Margin

EBITDA margin for H1 FY26 was 8.2% (INR 66.4 Cr), down from 16.3% (INR 161.9 Cr) in H1 FY25. Adjusted EBITDA margin for Q2 FY26 was 16.4%, reflecting core operational profitability before finance costs included in cost of sales.

Capital Expenditure

Construction spend increased by 15% YoY to INR 452 Cr in H1 FY26, compared to INR 394 Cr in H1 FY25, to support the execution of 8.6 msf of ongoing projects.

Credit Rating & Borrowing

ICRA maintains a positive outlook with an upgrade based on improved pre-sales. The company raised INR 335 Cr through its first listed NCD at a competitive interest rate to fund growth. Gross debt stood at INR 588 Cr as of September 30, 2025.

⚙️ Operational Drivers

Raw Materials

Primary raw materials include steel, cement, and labor, which are the core components of the INR 452 Cr construction spend in H1 FY26.

Import Sources

Not disclosed in available documents; typically sourced locally within Maharashtra/India for MMR projects.

Capacity Expansion

Current execution includes 8.6 msf of under-construction area. The company has a forthcoming development pipeline of 23.8 msf as of June 2025, totaling a future saleable area of 32.4 msf.

Raw Material Costs

Construction costs rose 15% YoY to INR 452 Cr in H1 FY26. As a percentage of H1 FY26 revenue (INR 772.1 Cr), construction spend represents approximately 58.5%.

Manufacturing Efficiency

Execution efficiency is demonstrated by the completion of over 26 msf of saleable area to date. Pre-sales velocity reached INR 1,839 Cr in H1 FY26, achieving 46% of the annual target.

📈 Strategic Growth

Expected Growth Rate

33%

Growth Strategy

Growth is driven by a focus on the MMR redevelopment market using an asset-light model. The company surpassed its FY26 project addition guidance by adding INR 7,727 Cr in GDV YTD. It aims for INR 4,000 Cr in pre-sales for FY26, supported by a 23.8 msf launch pipeline.

Products & Services

Luxury residential apartments, affordable housing units, integrated townships, commercial office spaces, shopping malls, and schools.

Brand Portfolio

Rustomjee

New Products/Services

Launched one project in Q2 FY26 with an estimated GDV of INR 949 Cr; total YTD launches reached INR 4,916 Cr GDV (70% of FY26 guidance).

Market Expansion

Deepening presence in existing and new micromarkets within the Mumbai Metropolitan Region (MMR).

Strategic Alliances

Utilizes JVs and JDAs, such as the 51% JV entity for the Urbania project and the Rustomjee 180 Bayview DM project.

🌍 External Factors

Industry Trends

The MMR market is shifting toward branded developers with proven execution track records. Rustomjee is positioning itself to capture this by expanding its pipeline to 32.4 msf to meet the sharp rise in demand for quality developments.

Competitive Landscape

Competes with other branded and unorganized developers in the MMR residential and commercial segments.

Competitive Moat

The 'Rustomjee' brand equity and a 26 msf delivery track record provide a durable competitive advantage in the complex MMR redevelopment space, where trust and execution are high barriers to entry.

Macro Economic Sensitivity

Highly sensitive to interest rate cycles and GDP growth in India, which dictate home loan affordability and luxury real estate demand.

Consumer Behavior

Growing trust in branded developers and a preference for integrated townships and luxury amenities in the Mumbai market.

Geopolitical Risks

Minimal direct impact due to localized operations in MMR, though global economic shifts can affect FPI investment sentiment (FPIs hold 3.07%).

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by RERA (Real Estate Regulatory Authority) mandates, local municipal building codes in Mumbai, and environmental clearance norms for large-scale construction.

⚠️ Risk Analysis

Key Uncertainties

Execution and market risks associated with the large 23.8 msf forthcoming pipeline; potential for regulatory delays in redevelopment approvals could impact the 33% pre-sales growth target.