Raymond Realty shares surged 7.59% to ₹679.95 on Friday, July 3, following the company's impressive Q1 FY27 operational performance. According to Business Standard, the real estate developer's stock rally was driven by exceptional pre-sales growth and improved financial metrics during the quarter.
The company's pre-sales performance was the standout feature of Q1 FY27, with sales surging 129% to ₹700 crore compared to the year-ago period. As reported by The Economic Times, sales bookings stood at ₹306 crore in the year-ago period, representing a more than two-fold increase. Collections also showed significant improvement, jumping 47% year-on-year to ₹550 crore in Q1 FY27. This strong performance was achieved despite the absence of any new residential project launches during the quarter, demonstrating robust underlying demand for the company's premium residential projects in the Mumbai Metropolitan Region. The company attributed the growth to sustained demand for premium residential projects, especially the Address by GS brand, which has improved price realisation in the MMR market. The sales momentum across the Mumbai Metropolitan Region reflects strong consumer confidence and the company's brand strength in the premium housing segment.
The company's consolidated net profit showed remarkable improvement, with the company maintaining its ₹161.12 crore net profit from Q4 FY26. According to Business Standard, revenue from operations surged 888.24% year-on-year to ₹1,156.74 crore in Q4 FY26. As of June 30, 2026, Raymond Realty's outstanding borrowings stood at ₹1,097 crore, up from ₹380 crore as of June 30, 2025. The company deployed ₹198 crore in borrowings during the quarter to fund construction and working capital requirements for projects launched in FY26. This investment is expected to unlock significant revenue in the coming 12 to 18 months, as the company strategically channels resources to bolster current project launches and ensure future revenue growth through a robust collection pipeline.
Looking ahead, Raymond Realty reiterated its confidence in meeting its EBITDA margin guidance of 17% - 19% for FY27. As reported by Business Standard, the company said it is on track to meet this margin guidance for the current fiscal year. The management stated that profitability is expected to improve with progress in project execution over the upcoming quarters. Management explained that margins typically fluctuate depending on the stage of projects, with launch-related marketing expenses and initial construction costs weighing on profitability in early phases, but are expected to normalise over coming quarters as projects cross revenue-recognition milestones.
The strong start to FY27 follows a milestone FY26, during which Raymond Realty launched seven projects, including four launches in the final quarter. According to CNBC TV18, the company expects to sustain year-on-year growth across key operating metrics. The company held liquidity of ₹270 crore as of June 30, 2026, resulting in a net debt position of ₹827 crore. The company's performance reflects consumer confidence in their existing and ongoing projects despite no new launches during the quarter, with the previous fiscal's strong project launches strengthening the sales pipeline and offering solid revenue visibility for the current fiscal. As reported by The Economic Times, these investments are heavily backed by the company's robust collection pipeline and are positioned to unlock significant revenue milestones over the next 12-18 months.
