Keystone sets INR 50bn FY27 pre-sales guidance after a 49% fall in area sold
Consolidated operating margin was 17.48%, above the 68-peer median, while Rs 24.05 cr of other income supported reported pre-tax profit.
Filed 04 Aug 2026, 12:44 IST · Keystone Realtors Ltd (RUSTOMJEE)
Key takeaways
- Management set FY27 pre-sales guidance at INR 50 billion while Q1FY27 area sold was 0.32 million square feet, down 49% year on year.
- Consolidated operating margin was 17.48%, 4.10 percentage points above the median for 68 reporting Consumer Discretionary peers.
- Other income of Rs 24.05 cr was a notable component of Rs 70.32 cr pre-tax profit, making earnings quality worth separating from operating performance.
Price around the results
Q1FY27 earnings included a sizeable non-operating contribution
Keystone reported consolidated operating profit of Rs 82.20 cr on revenue of Rs 470.29 cr. Interest expense was Rs 30.57 cr, while other income added Rs 24.05 cr; the latter was a notable component of Rs 70.32 cr pre-tax profit. Net profit after Rs 17.95 cr of tax was Rs 52.37 cr, with EPS at Rs 4.21.
Operating margin outperformed the reported peer median
The 17.48% operating margin was 4.10 percentage points above the median for 68 Consumer Discretionary peers that had reported the quarter. The result therefore compares favourably on operating profitability, although other income means reported profit should not be read as purely operating earnings.
Management pointed to a large FY27 development pipeline
Management said FY27 guidance includes INR 50 billion of pre-sales, INR 80 billion of launches measured by GDV and INR 80 billion of project additions measured by GDV. The company said it added five cluster redevelopment projects across Lokhandwala, GTB Nagar, Dindoshi, Malad West and Om Nagar. Management also said it is targeting a gross debt-to-equity ratio below 0.75:1 in FY27 and INR 10,000 crore of pre-sales by FY30.
Area sold was the clearest operating pressure point
The presentation reported Q1FY27 area sold at 0.32 million square feet, down 49% year on year. That decline sits against management's FY27 pre-sales guidance of INR 50 billion, making sales conversion and project additions key measures of execution.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹470 cr |
| Other income | ₹24 cr |
| Expenses | ₹388 cr |
| Operating profit | ₹82 cr |
| Operating margin (%) | 17.48% |
| Interest | ₹31 cr |
| Depreciation | ₹5 cr |
| Profit before tax | ₹70 cr |
| Tax | ₹18 cr |
| Net profit | ₹52 cr |
| EPS (₹) | ₹4.21 |
Operating margin of 17.48% compares with a Consumer Discretionary sector median of 13.38% across 68 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company has set FY27 pre-sales guidance of INR 50 billion.
- The company has set FY27 launch guidance of INR 80 billion in GDV.
- The company has set FY27 project-addition guidance of INR 80 billion in GDV.
- The company is targeting a gross debt-to-equity ratio below 0.75:1 in FY27.
- The company is targeting INR 10,000 crore of pre-sales by FY30.
Expansion
- The company added five cluster redevelopment projects across Lokhandwala, GTB Nagar, Dindoshi, Malad West and Om Nagar.
Problems & risks
- Area sold in Q1FY27 was 0.32 million square feet, down 49% year on year.
What to watch
- Progress against management's FY27 pre-sales guidance of INR 50 billion.
- Whether area sold recovers from 0.32 million square feet after the 49% year-on-year decline.
- Whether gross debt-to-equity remains below the FY27 target of 0.75:1.