Kalpataru Limited (KALPATARU) Q2 25/26 earnings summary

Executive summary

• Pre-sales for Q2 FY26 rose 19% YoY to INR 1,329 crore, with H1 FY26 pre-sales up 43% YoY to INR 2,577 crore; collections increased 37% YoY in both Q2 (INR 1,162 crore) and H1 (INR 2,308 crore).

• Average sales realization increased 27% YoY in Q2 FY26 to INR 16,977/sq.ft. and 54% YoY in H1 FY26 to INR 19,260/sq.ft.

• Net debt reduced to INR 8,025 crore as of Sep 30, 2025, with net debt/equity ratio improving to 2.0x from 3.8x in March 2025.

• Strong project launches in Thane (Estella at Parkcity), Mira Road (Srishti Namaah), and Worli (Kalpataru One) contributed to robust sales momentum.

• Consolidated revenue from operations for Q2 FY26 was Rs. 79,377 lakhs, up from Rs. 50,626 lakhs in Q2 FY25; total income for H1 FY26 reached Rs. 1,27,244 lakhs.

Financial highlights

• Q2 FY26 revenue from operations: INR 794 crore (up 57% YoY); H1 FY26: INR 1,237 crore (up 19% YoY).

• Adjusted EBITDA for Q2 FY26 was INR 190 crore (up 9% YoY), margin at 23.9%; H1 FY26 adjusted EBITDA was INR 293 crore (down 6% YoY), margin at 23.7%.

• Q2 FY26 profit: INR 5 crore (vs. Q1 loss of INR 52 crore); H1 FY26 PAT was INR (47) crore.

• Gross debt as of Sep 30, 2025: INR 8,928 crore; net debt: INR 8,025 crore (improved from INR 9,310 crore at FY25 end).

• Interest cost for H1 FY26: INR 44 crore (P&L), INR 304 crore (COGS), total INR 348 crore; full-year estimate: INR 700-750 crore.

Outlook and guidance

• FY26 pre-sales guidance: INR 7,000 crore (55% YoY growth); collections: INR 5,700 crore (56% YoY growth); H1 FY26 achieved 37% and 40% of these targets, respectively.

• Net debt expected to reduce to INR 7,300 crore by FY26 year-end (22% reduction from FY25).

• FY27 growth momentum expected to continue, with ~20% growth anticipated.

• Net debt/equity targeted at 1.5x by FY27 and 1x by FY28.

• Operating cash flow for FY26 projected at INR 1,200-1,300 crore.