Raymond Realty Ltd

Ladies and gentlemen, good day and welcome to Raymond Realty Limited Q1 FY '26 Earnings Conference Call hosted by Systematix Group. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Chetan Mahadik from Systematix Group. Thank you and over to you, sir.

Thank you, Bhavya. On behalf of Systematix Group, I would like to welcome all the participants in the Q1 FY '26 Earnings Conference Call of Raymond Realty Limited. Today, we have with us from the senior management of the company, Mr. Amit Agarwal, Group CFO, Mr. Harmohan Sahni, MD and CEO, Mr. Ankur Jindal, CFO, Mr. Jatin Khanna, Head Corporate Development and Mr. Sunny Desa, Head Investor Relations.

Without taking further time, I would like to hand over the call to Mr. Harmohan. Over to you, sir.

Thank you. Good evening, everyone. Thank you for joining us on the call today. I presume that everyone's gone through the financial results and our investor presentation which has also been uploaded on stock exchanges, as well as our company website.

I'm also pleased to share with you that the listing of real estate business happened on 1st of July '25 post the demerger. The scheme became effective from 1st of May '25 and the record date was 14th of May 2025.

And for the purpose of determining the eligible shareholders of the demerged company, the equity shares in the resulting company would be allotted. The exchange ratio is 1:1 as you are all aware.

Coming to our quarterly performance, our results have been in line with our expectation. The previous year Q3 and Q4 which was FY '25 were really bumper years -- bumper quarters for us and we got more than expected sales in those two quarters.

So, when we started the year, we already had achieved about 45% growth in the last year while we had budgeted for only 20%, 25% growth. So as a result of that, when we started the current year, we had very low inventory levels and as you know, to reintroduce inventory, we have to get approvals and RERA registration done and that is the situation we were in.

In Thane, 91% of our inventory was sold out when we started the year. In Bandra, 50% of our inventory was sold out when we started the year. So as a result, Q1 numbers are what they are, and they are completely in line with our expectation and Q2 will also follow a similar trajectory as Q1 because most of our launches which are the new JDAs which we would be launching are all in Q3 and Q4 and I will share a little more of that in detail a little later.

In the current fiscal year, what we have planned for the second year is we will have at least 3, 4 launches which will be by March which will happen. Then 1, 2 more launches will be in Q1, Q2 of next year. So, there is a line-up of new launches and projects that we have got.

Even in Thane, we would be introducing more inventory. In fact, this week itself we are launching two more buildings. We have got the approvals as well as the RERA registration done.

So that's about INR1100 crores worth of inventory, about 318 units we will be introducing in the market.

So, we have a significant amount of pent-up demand where people are waiting, and we didn't have enough inventory as well as the choice of apartments to offer to customers. So, it's like quarter two while it will be in line with Q1, but it will have activity in terms of new inventory that we have got.

So, we are quite optimistic that in second half we will remain firmly on track to achieve all the guidance and the commitment that we have given to all of you for the full year. The markets remain strong for MMR and Thane both. They continue to be high growth corridors as well as our demand patterns have not changed from the last year, year and a half.

And they continue to be strong. The construction momentum across all our launch projects both in Thane and Bandra is progressing well. We are ahead of schedule in all our projects as has been our track record from the time we started this business. So, we will continue to underwrite timely delivery and adherence to high-quality standards.

So going forward we remain quite optimistic that this growth in the real estate market will continue and as a result we will be beneficiaries of this growth in the market as we have been.

And our track record will keep bringing us good results that we've been showing, and our project pipeline is quite strong.

Several developments are slated for Q3 and Q4 in the upcoming quarters and we will continue to follow our strategy of asset-light business model through the JDA rule, and we hope to deliver a 20% year-on-year growth for booking values and this is our minimum commitment, and we are on track to deliver that for the current year also.

With that I thank you for joining for the call and we will now open the line for questions. Thank you.

Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Naresh from Systematix Group.

I want to know clarification in the current result for full year FY25 we have mentioned INR565 crores revenue and if you see the last quarter March quarter result on page number 14 you have mentioned INR2,351 crores. So just want to know why there is so much difference.

Can you repeat the question? It was not very clear.

In the current result page number 8 you mentioned for full year FY25 revenue was INR565 crores and last quarter March 2025 you have mentioned on page number 14 the total revenue is INR2,351 crores. So want to understand why there is so much difference in that? Just give us a moment.

This difference is because you mentioned last year in Raymond Realty published results. We only have results of the subsidiary which is Ten X Realty because it was not a separately demerged entity. So, if you want to really see like-to-like results you have to refer the investor presentation that we have issued.

The statutory results do not have the real estate undertaking or the division which was part of Raymond Limited on a consolidated basis included. So therefore, your reference point is not correct.

Actually you know so yeah so you have to one second so that's why we have also published in our results -- no this is quarter only -- talking about the Pune number -- okay so we haven’t published in this but what you see in the investor presentation page number 22 is a like-to-like so that INR2,351 crores which you are referring to that on a quarterly basis is the Q1 FY25 on page number 22 of our investor release. Yeah, INR488 crores.

INR488 crores. That's a like to like number.

The next question is on the line of Dixit Doshi from Whitestone Financial Advisors Private Limited.

One question is regarding the future potential of the Thane land. So, there was a judgment for the approval process, EC approval yesterday from Supreme Court. So how does that you know impact or benefit us and whether the future EC will be now done through state government for our projects, or it will go to central government?

Yeah, so that judgment which came out yesterday is more clarificatory in nature. It does not bestow any additional benefit to anyone because there was an injunction earlier on any environment approval which you needed for certain projects and the confusion was whether you had to go to center or you had to go to state, and both were referring to each other. So that has been clarified because the injunction has been lifted now.

So, all the projects which have been pending approval will go to the state government and which has been the process right from the beginning. So essentially it restores status quo for all the projects in the state of Maharashtra and in MMR and for us there is no neither additional benefit nor there is any detriment. So, we remain in the same place.

Okay and just one clarification on this. So, some of the newspaper articles today mentioned that it goes to state government if the project falls between 20,000 square meter to 1,50,000 square meter. So, our land size is much larger.

Yeah, but all approvals will be from the state level itself. Only ones which go to center are which are within 5 kilometers of eco sensitive zones that falls in the purview of central government and none of our projects are like that.

The next question is on the line of Mr. Chetan Mahadik from Systematix Group.

My question is on a margin. Sorry about the margin dipped in Q1, say due to mature projects tapering out. Apart from this were there any cost overruns during the quarter? And as new projects scale up where do you see a steady state EBITDA margin stabilizing? And will it be around 20% or higher than that?

Definitely we are going to achieve the same because in the initial period the EBITDA margin are low but as the project is progressing the EBITDA margin is going up. So, we will make up.

So, the 20% margin what we have committed will align with that.

So, if you see the previous year also from Q1 to Q4 the trend if you see as the projects start to mature the pricing and percentage completion changes. And the benefit of all the launch expenses starts to accrue later because what happens is whenever we launch a project, so the margin goes down.

And then because in this quarter we had two towers of our Bandra project which were launched and the benefit of that will continue to accrue for rest of the year. So, 20% margin what we have achieved in the previous year you can expect a similar margin in this year also from us.

The next question is from the line of Pushpendra Chand, an Individual Investor.

So, the question is in couple of interviews what I heard from Mr. Singhania is that he was saying we are expecting to grow on a top line of 20% and around the same 20% plus in our margin also.

So that would be the annual growth projection what he was talking in some of the interviews.

So, after this tepid Q1 on an yearly basis are we still holding the same guidance for the complete year? That is the first question?

Yeah, absolutely we are completely holding like I mentioned in my opening remarks that this is the Q1 is as per our expectation and there is no surprise as far as we are concerned. Maybe markets are doing a comparison with the corresponding quarter and there is going to be a settling in period relating to that. But as far as we are concerned, we are completely on track of achieving 20% growth rate for the year.

See you have to see this in context of your performance because if you see in quarter one of last year, we were at about INR500 crores. This year we are at about INR400 crores revenue. So obviously that INR100 crores revenue which is dropped has resulted into your negative operating leverage.

But like Harmohan said that we have lot of launches coming in Q3 and Q4. So automatically the business momentum will pick up. We have more projects coming up in Thana also which we spoke about in the next week or so. So as the year progresses you will see margin coming back.

Yeah, I think that is much-much comforting for a shareholder because when we compare it, we see a lot of deep in this and then yeah. So, the second question is how do you see the JDA? Since now this is more like a transition year for us. We are moving from self-owned land to a more like a JDA model. So, the proportion of JDA will increase. So how do you see the blended margin moving forward? So, Thane plus JDA put in together?

Yeah, both the margins put together on a blended basis will be in the range of 20%. And that's how we have underwritten all the JDAs. And as of now with the market the way it is we will probably do slightly better than our underwriting. So, it will be around 20%.

And another thing when I was comparing with our peers like who are into the redevelopment project likes of say Arcade or probably, we have Sunteck Realty and all. I see their margins are it may vary but it's closer to 25 plus percentage. Are we doing something different that our margins are relatively lesser than our peers when we compare it with say Lodha or Arcade or some of our peers? Any thought on this Mr. Harmohan?

Yeah. So, for that I would request you to give us some time because we are also very young compared to the names that you took. They have been in the business 25-30 years. And we've been in the business 5-6 years. We have built our team. Our scale is still building up. And once we hit a scale which will be towards the end of this year from next year onward, we will start seeing improvement in that.

Right. And one comparative study when we are doing -- companies usually one of the parameters that has been used for evaluation is EBITDA which varies for most of the companies in the range of 6 to 20. When we check with Raymond Realty we are operating at or trading rather at maybe 8, 9 within that band.

So, a gross maybe 40%-50% discounting is what market is offering to Raymond Realty. I'm not sure what is the reason but is there any corporate governance related issue or anything like that?

I'm not sure what’s the reason for so much of a discounting that market is offering.

Whichever evaluation parameter we take, and we compare it with any other peers. So, any thought on this Mr. Harmohan?

So, see that's really a question for the market participants and not for me. But I will still attempt it. My hypothesis would be that it's a question of market waiting to see how our track record builds today.

I mean in the current year. Because what so far, we have shown our track record on our Thana land and one JDA project which is the Bandra one. And which has been pretty good even though I am saying it.

But when I talk to market participants, they tell me the same thing. And we have almost 5 other projects which are waiting to be launched. And out of that 3-4 will be launched this year.

So, my hypothesis is that market is waiting to see how we launch them. Whether we will be able to maintain the same track record which we have. And that could be a reason why they are looking at a discount just now.

Because they want us to prove ourselves and rightly so. I mean that's my two bits. But really this is a question market participants can answer better.

The next question is from the line of Udit Gajiwala from Yes Securities.

So, can you just elaborate in terms of pricing for the MMR market and what kind of escalation, or you may see some pause happening now for a couple of years since we have seen a decent uptake already which has happened. So just your view on the pricing for this market?

You know the markets that we are in currently and the ones we are tracking are of course the Thana market where we have our substantial land and the Bandra market. And now the new exposures that we have taken which is Wadala, Sion and Mahim around that area. So around BKC and Thana is where we are currently.

We've got our exposure and those are the markets we are actively tracking. And we have not seen any crazy price increases in the last year or so in all these markets. There have been price increases but there have been more in.

So, let's start with Thana. Thana in the last year we saw a price increase of about 6%-7%. In the current year also, we see about 6% to 7% price increase and nothing more than that. So, it's been pretty healthy.

And when I look at Bandra, Bandra also has given us a similar 6%-7% increase in the last year.

Current year we probably see a 5% increase in Bandra and not more than that. At least that will be our endeavor because we want markets to remain healthy and we are quite disciplined when it comes to pricing.

While we are opportunistic in taking exposure, but we want to make sure that wherever we have exposure we are there for the long term and don't go crazy on the pricing. And it takes just one or two players to be disciplined for the entire market to remain disciplined.

And the other markets where we are Sion as well as Wadala and all there also the pricing is quite stable. And we have seen similar kind of price increases not more than 5%-7%.

The next question is from the line of Shashi Ranjan from Anandan Capital.

The question I have is two in number. First one is, what is the current value of the land bank held under Raymond Reality and what is the percentage of this is under litigation if any?

Actually, the value of the land that we hold is going to be relevant only from the point of view of the Thana land that we have. Rest of our all our exposures are JDAs and there is no real value of land that we have over there because these are all performance contracts that we have. And none of the land that we hold has got any kind of litigation in Thana and even the JDAs where we have contracted there is no pending litigation which is there.

And the Thana land is the historical land. So, it virtually has very low value. It is not even worth mentioning on the balance sheet. I mean I am not talking about market rate. I am talking about book value.

So just a clarification on this that I assume that most of the business Raymond Reality will be getting into will be through JDA model?

That's right. In fact, that's our stated strategy that we want to remain asset-light going forward and all our exposures going forward will be under the JDA model.

The next question is from the line of Sucrit D. Patil from Eyesight Fintrade Pvt Ltd.

Good evening to the management. My question is a bit of a telescopic view. So, with INR40,000 crores in GDV and a strong pipeline of JDA, how is Raymond Reality planning to evolve its brand identity and customer experience over the next five years to seven years? And beyond scale, are there specific designs, sustainability or tech-led innovations that could position Raymond Reality as a differentiated player in the premium real estate space? Yes. That's it.

I am really glad that you asked that question because there is a lot of work, we are doing in all the areas that you mentioned. In fact, we are one of the few real estate companies who have a dedicated function to customer experience. And we have a Chief Customer Experience Officer who actually ties up all the various departments and makes sure that the customer experience is going to be stellar going forward and in the present.

So that's as far as customer experience is concerned. Use of technology also is one big focus area for us. Currently, if you see, we are using all the cutting-edge tools which are available including the use of AI for marketing and sales that we do. For customer, we use SFDC and for accounting and all the other we are currently using S/4HANA and we will be upgrading very soon on the SAP system. So, we will remain cutting edge as far as technology is concerned.

On the ESG front, in any case, being a listed entity, there is a lot of onus on us to meet all the ESG requirements. But beyond that also, within our operations, we have an ESG cell which really focuses a lot on environmental issues as to how to keep our products which are ecologically sensitive forward in the future, as well as all the current products, so that neutrality in terms of carbon footprint is as close to zero as possible.

The next question is from the line of Jagdish B, an individual investor.

Yes. Sir, since you mentioned about the market is well and good, and the bookings are also happening fine. And since RC is a very new company compared to our peers and we have a lot of land bank and GD value as well. So, I mean, launching the project delay, I mean, delays in the launching project, right? Would it really put us in backward compared to our competitors or -- yes, so, I mean, we are a new company, and we want to achieve more, right? So, we should be doing with the planning and launching the project in time, that would -- yes, so that, I mean, what is your intake on that? Like, should we -- how are we planning to have the launches of the projects in line without any delays compared to the market competitors?

Yes. That's a great question. In fact, that's one of the things that we set out to solve in the industry when we started this business. So, two, three things that we are trying to tackle. One is, of course, the quality product, which is there to improve the quality. Second is timely delivery to the customers. And the third is that we want to create a business which is high on IRRs and cash flows. And that would necessitate that the projects we take on, the time to market is the shortest possible.

And so far, we have achieved that in all the projects that we have taken on. And very happy to share that we have one of the shortest possible times to market for all the projects that we have signed. So, there is an acute focus on launching projects on time. And from signing of the new project to the launch, we don't go beyond 18 months to 24 months, which is the fastest in the industry than other players. And very few players are actually able to achieve that. A lot of players take three years to five years to launch a project from the time they sign. But, yes, we are one of the quickest in terms of launching the project. And your question is very astute and sharp question.

Yes. And should we expect, I mean, there won't be any delays in the H2, right? Like what we intend to launch, will it go as planned? Or is there any possibility that it will be pushing towards H1 of this year -- financial year, sir?

So, as of now, we are not anticipating any delays in launch of projects. So, everything is on track.

The next question is from the line of Siyaram, an individual investor.

Yes. Hello. My question is regarding to the JDA projects that has been given in the presentation about INR14,000 crores. My question is that how much is the Raymond Reality share in those? That is first one.

It's about INR11,500 crores approximately.

And by how much time do we expect to complete this project? Like in how much time in timeline?

Yes. All the projects cumulatively between five years and six years.

The next question is from the line of Pushpendra Chand, an individual investor.

Yes. Another question that I was asking is, Bandra 2 launch, are we expecting in H2 of this financial year? Any thought on this?

So, one Bandra is already in the market. The second Bandra, we are quite advanced in terms of approvals. So, it is completely on track for an H2 launch. In fact, it will be early H2 and not later H2.

And the Wadala 1 where the size of the opportunity is INR5,000 crores, also getting launched this year?

Yes. It is. In fact, there also we are very advanced in terms of approvals and planning and everything. Some of the significant approvals we already have in hand because it was already a late-stage project when we got into it. So, our time to market there would be quite early compared to some of the other projects because of the stage that we got involved into it. So, it is a definite yes for a launch in H2.

Okay. And in some of the interviews I had found you were saying that usually Q1 and Q2 is when there are no launches because being a lean period. So, henceforth, shall we expect that our Q1, Q2 would continue to be weaker, and it will more be heavy sided on H2? Will that be a trend, or will we achieve some kind of a linearity also going forward as we move on in more number of projects?

See, it will definitely improve from what it is today when we have more number of projects on the plate with us. But this seasonality in the business will remain and it is there with all the players if you see, because it involves auspicious days, it involves festive period. So, the first half essentially of the year, you have summer vacations, you have monsoon in Bombay.

So, all these factors play a role. So, the number of launches is also less, as well as people's propensity to buy is also very different, because of the factors that I mentioned, auspicious days, as well as the festive season. So, there will be some kind of a trend which will continue in terms of seasonality. But it will improve from what you see now because the number of projects will be more.

Okay. And very recently, two of your peers got listed like Kalpataru and Lotus, and their margin bankers are valuating them as I said last time also 16 to 20 within that band. Do we need to do something differently so that at least we get our fair valuation in the market? Your opinion on this?

Like I said, it's very difficult for me to opine on and this is really a question for the market participants. But we have to stick to our knitting really if we continue to show growth with healthy margins and our game is really a ROCE game and the IRR game. Today if you see, we have the highest ROCE of all the players put together. I mean so far cumulatively we have delivered 26% ROCE. Going forward also we will continue to deliver more than 20% ROCE.

Once the market sees this consistently over a one-year period about six quarters or so, automatically I think it will be difficult for the market to ignore us.

Also, with so many launches coming up in H2 and maybe one or two in H1, there is a very strong growth momentum which you will see in the business. So, obviously, one is the return ratio, other is the growth momentum. When both of that play out… Yes.

And as investors you start seeing it, automatically this undervaluation will disappear.

Yes. Because we have already seen the way the market has been responding and the way the company has been treated in the market research space. So that's where the worry is because it got listed at INR1050 and then continuously it is falling and now it is close to around almost

40% -- I think 40% value has already been gone away. While the valuations and everything is attractive, do we need to do something differently so that at least the kind of brand and name that we have, the market reckons about it. So that was the concern which I raised from a shareholder’s point of view. Do you have any suggestions? Honestly, I don't. Because… To be honest, as an organization, we can give you two things. Yes.

One is good growth, second is good return. Return ratios are unparalleled. I mean, our ROCE is highest in the entire real estate industry. At the same time, we are set for a very strong growth given that there are five projects being launched on top of, let’s say, I would say, three location -- I mean, broadly two locations. And there are five different locations being launched. So now, if business is set for strong growth, return ratios are strong, I mean, it's a matter of time that market sees through it, and therefore, starts -- gives you the right value.

I think market is just waiting to see how it plays out for the next one or two quarters.

Yes. Probably I think the margin volatility is also something which I think that can be also a reason. So, we'll wait for subsequent quarters where things will improve from here on. And best of luck to all of you.

The next question is on the line of Madhav from Emerge Capital.

Hi. Just a couple of things. First, do you see any issues with respect to the pending collection?

None whatsoever, because we barely have any outstanding amount, whatever is due gets collected. On an average, when we review it on a monthly basis, the collection ratios are almost 97%, 98%. So, there is no concern at all there.

Understood. Secondly, sir, to understand what kind of segment are we targeting? Is it like the mid-segment or premium segment or ultra-luxury segment that we are targeting?

Yes. So, our stated strategy has always been, and we've stuck to it. Mid to premium is the segment that we are targeting. And that is what we've been doing. We are not going for ultra- high value, and we are not going for affordable bottom of the pyramid as well.

And the last, in a long-term view, where geographically, where do we see us growing? Is it going to be in that Maharashtra region, or do we plan to expand elsewhere?

So, we are currently looking at MMR and Pune, and these are the only two markets we are limiting ourselves to.

The next question is from the line of Akshay from GM.

Hi, sir. So, my question is on your JDA projects and your guidance on the ROCE. Like currently we are doing a ROCE of 26% and you are guiding for a 20%. So just wanted to understand from the JDA projects, what ROCE are you expecting? And just wanted to understand, for this INR14,000 crores potential, how much will be our investment in working capital and how much net profit can we expect from these six existing projects? Yes.

See, our margin profile guidance that we have given is about 20% now and going forward also.

And you should look at it on an annual basis. And that's what we have delivered in the past and we'll continue to deliver that. So that should give you an idea on all the margins that we've got.

As far as the ROCE is concerned, we are saying that you can expect a minimum 20% ROCE from us. All the new projects that we have signed, the JDA projects are all in the range of 20% to 25% IRRs. So, the ROCEs will be in line with that. Is there anything I missed out or?

The next question is from the line of Ujwal Lal, an individual investor.

Hello. So, my first question is, how much incremental GDV are we targeting to sign annually through JDAs?

See, our annual targets are between INR6,000 crores to INR10,000 crores worth of projects we should be signing on an average each year and that should be enough for these markets. And there could be some bumper years also. But, yes, that's what we are targeting for.

Okay. And just another question on capital allocation. Like, do you think, given that we are generating significant cash from Thane projects and the valuations at which our stock is currently trading, it would be prudent to do a buyback as it would also signal confidence and aid shareholder returns? Any thoughts on this?

So, see, we are such a young organization. The business itself is five years old, and it got listed only a few months back. So, I don't think buyback is something we are considering. In any case, buyback is not tax efficient from the shareholder's point of view or the company's point of view in any case. So, you would see very few companies taking that route in anyhow.

But for us, it's really early days. We have to reinvest everything into the business and make the business grow. Because there is a huge opportunity for this business in our country. Currently, it's about 7% of India's GDP, this industry and it is slated to grow and double in the next 10 years to 12 years, because of the economy growing and the affluence growing and the rate of that. So, there is a huge opportunity that we have to tap into.

Also, if you see our capital -- from a capital allocation standpoint, we have five projects coming up in the next one year. So, our capital is better spent to actually launch those JDAs. Like Harmohan said that we could sign another INR6,000 crores to INR10,000 crores project every year. So, our capital is currently better spent there. So long as we are getting 20%, 25% IRR projects, we would rather allocate capital there than trying to sort of buyback or something like that to do a re-engineering of share price.

I think from a confidence standpoint to my mind, I mean, frankly, if you see most of the listing post-demerger, you see a drop initially and then you see an artistic growth in the share price. See

business is strong, return ratios are strong. So, I don't think so we should allocate our capital into financial engineering versus the business which can give us very good return.

The next question is from the line of Shashi Ranjan from Anandan Capital.

Any plan of Raymond Reality getting into maintenance business after the completion of the project?

Well, we already have an entity which looks after maintenance after the handover of the project, and it can continue to do so if society desires that. But for the first two years, in any case, we are doing it with that entity. So that's already in existence because that's part of our customer experience initiatives that we have taken on because post-delivery experience is the moment of truth. That's where the rubber hits the road. So, it's very critical for us and that's why we've got this entity. It's called Rayzone. It's 100% subsidiary of Raymond Reality.

Just a clarification and follow-up on this. I understand that Raymond Reality is just five years to six years old. So, this Rayzone that you mentioned, they are into this maintenance business from last -- what is the experience that this Rayzone holds when it comes to maintenance?

So, for the time being, it is only going to do the projects that we are handing over and we are not taking on other people's projects for the time being till we have a sizable portfolio which gets built in Rayzone. So, we've got five buildings which have been handed over in one of our projects, 10X Habitat. And this year, we've got another project which is getting handed over which will be managed by Rayzone.

When I try to understand the margin of Rayzone and Raymond Reality separation then which one has got the better one -- better margin? This is my last question.

Rayzone is a service provider. And in the first two years, three years, we'll be happy if it breaks even. And the margin, of course, it's not a loss-making entity. But it is currently breaking even with these few contracts that it has. And maybe for the next one year or two years, it will break even. And after that, it will have margin. But it's a service organization. The margins in this business are not more than 10%-11%.

The next question is from the line of Akshay Jawahar, an individual investor.

Hi. I just had one clarification that I wanted. The FY ‘25 revenue was about INR2,300 odd crores and are we expecting a 20% growth in that number, or have I got that wrong? No. That's correct.

And on a steady-state basis, the operating margins would be about 20%, of course, adjusting for any new project being launched, right? Right.

Okay. One last question. On the Q2 numbers that -- we're basically expecting it to be in line with Q1 ‘26. So, would that broadly be a ballpark number of INR400-odd crores, or would it be plus or minus 10%? How much?

See, that will be a forward-looking statement and we don't have a policy of commenting on that.

But, yes, I've already said enough on this.

Ladies and gentlemen, this was the last question. I now hand the conference over to Mr.

Harmohan Sahni for the closing comments. Thank you and over to you, sir.

Thank you so much for being on the call and going through the entire process and look forward to seeing you in the next quarter's call.

On behalf of Raymond Realty Limited, we conclude this conference. Thank you for joining us and you may now disconnect your lines.