Keystone Realtors Ltd

Ladies and gentlemen, good day, and welcome to Keystone Realtors Limited Q3 FY '26 Earnings Conference Call, hosted by Axis Capital Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Pritesh Sheth from Axis Capital Limited. Thank you, and over to you, sir.

Thank you, Palak. Good evening, everyone, and welcome to the call. From the management of Keystone Realtors, we have with us Mr. Boman Irani, Chairman and Managing Director; Mr.

Chandresh Mehta, the Executive Director; Mr. Percy Chowdhry, Executive Director; and Mr. Sajal Gupta, the Group CFO.

I'll hand over the call now to the management for their initial comments, and then we can open the floor for question and answer. Over to you, Boman, sir.

Thank you. Good evening, everyone, and welcome to our Q3 FY '26 earnings conference call.

I'm Boman Irani, CMD, Keystone Realtors Limited. I extend my heartfelt gratitude to all of you for joining us today. I'm pleased to share our achievements of this third quarter of FY '26, which showcases our continuous growth.

For the Q3 FY '26, our presales performance has been encouraging, and we have achieved INR837 crores of presales taking the total of presales for the year-to-date FY '26 to INR 2,676 crores. That's INR 2,676 crores. That's a 23% year-on-year growth on a year-to-date basis. Our presales are tracking broadly in line with expectations, supporting visibility for the next phase of our revenue growth.

The demand trends we see reflect the strategic choices that we have made in BD and launches and the continued confidence customers place in our brand, Rustomjee, of course, keeping in mind the quality of our developments. As we move forward, our focus remains on delivering value to our customers, continue to strengthen our brand and execute our strategy with discipline and purpose.

On our project launches, we've launched one more project in the Q3 with an estimated GDV of INR 919 crores. This takes our total to 5 launches this year with a total GDV of INR 5,835 crores for year-to-date FY '26. With this, we've achieved 83% of our full year launch target. We also see a healthy pipeline of upcoming launches, which supports our continued momentum.

Further, we are improving continuously our go-to-market timelines. Once the development agreement is signed, a project typically moves to launch within almost 12 months. This year, we have launched multiple projects within these 12 months from the date of DA.

Just to quote a few, Rustomjee Stella took 8 months to go from DA to launch. Rustomjee Panorama took 11 months to go from DA to launch. Crescent took only 10 months and

Rustomjee Privé 12 months. This enables us to accelerate our launches and strengthen our ongoing project pipeline.

We've continued to build a strong momentum across our BD, business development initiatives.

In Q3 FY '26, we have added another project, which is part of our Lokhandwala Cluster. With this, the total estimated GDV of our Lokhandwala Cluster would be approximately INR 3,900 crores.

To summarize, we've added 4 projects totally in the 3 quarters of FY '26, having an estimated GDV of INR 8,650 crores. Notably, that's about 1.44x our annual guidance. We've already crossed our annual guidance by about 1.44x. This reflects the effectiveness of our asset-light capital-efficient model and our continuous focus on redevelopment within Mumbai MMR area.

Financially, we continue to maintain strict thresholds with upfront equity capital limited to 10% of total project GDV up to launch. And this allows us a margin expansion by underwriting projects with a gross margin of 35%, driven, of course, by the location and led by value transformation post development of these projects.

I would like to highlight our increasing focus on cluster redevelopment. Cluster redevelopment allows us to create gated communities. Gated communities are probably the most sought-after locations or housing for people to move into because they provide a whole host of advantages, including larger layouts, better communities, etcetera. This is a complex model, but it offers great meaningful long-term value. It allows us to drive efficiencies at scale and as mentioned earlier, enhances the livability for our home seekers or homebuyers therein.

We continue to build communities, and these communities are far larger seen in the gated communities, which come out of the cluster redevelopments. We made remarkable progress in this area, and we've added several large-scale cluster redevelopment projects including Lokhandwala, GTB Nagar, Dindoshi and Malad West.

These projects firmly position Rustomjee to lead the next wave of Mumbai's urban transformation built on trust, design excellence and upliftment of the communities. Rustomjee is a preferred partner and now not only with societies, but also with MHADA to carry out large cluster redevelopments. Our additions are fully aligned with our vision to consolidate our leadership in the redevelopment space across MMR, and they enhance our growth and visibility and strengthen our long-term position in these high potential micro markets.

We are steadily increasing our focus on commercial real estate segment as a natural extension of our development capabilities and balance sheet strength. The journey has commenced with the successful launch of 33fifteen at Bandra West. This is a marquee commercial project development with an estimated GDV of about INR 950 crores, of which 18% have already been sold off the launched inventory.

Building on the momentum, we are actively working towards another commercial launch in the first half of FY '27. This will be at Prabhadevi with an estimated GDV of about INR 1,150 crores.

Additionally, construction activity at our Thane commercial project is expected to commence

again in FY '27, alongside the several commercial acquisition opportunities that we are actively evaluating.

Thane, as we are all aware, is a large residential township. And in this project, we will be creating commercial development, thereby making the lives of our consumers much easier with a walk- to-work concept from office to home and the other way around.

Since FY '23, we've added about 26 projects with an estimated GDV of INR 26,400 crores. 22 of these are redevelopment projects. 21 of them are in the emerging premium and premium housing segments, which, as I mentioned earlier, are the largest segment to serve in the MMR region. This aligns with our strategic focus. This captures value through urban consolidation, and we maintain healthy volumes in high-demand mid-income categories.

These strategic additions underline our ongoing commitment towards our growth and leadership.

I remain confident in our ability to consistently take on and successfully deliver new projects with the same focus and discipline that define us. With our strong and diversified portfolio across all micro markets and price segments from mass market to luxury, our strategy ensures resilience and sustainable growth across market cycles.

Project additions and launches, presales and collections have allowed us to focus a lot on completions as well. I am pleased to announce that year-to-date FY '26, we have completed 3 projects covering approximately 1.98 million square feet. These include Rustomjee Belle Vue, which is a plotted development, Paramount F Wing, which is an SRA redevelopment and Rustomjee Crown, which is at Prabhadevi, where we've completed Tower C. And as we are aware, Tower A and B had been completed earlier last year. These completions also demonstrate our operational efficiency and dedication to delivering quality projects in time.

Our performance clearly highlights our strength, our product portfolio and the resilience of the overall strategy that we have undertaken. With a healthy balance sheet, strong capitalization, disciplined execution, we believe the company is well positioned to pursue emerging opportunities, and we will continue to create sustainable value for all you stakeholders. We remain focused on maintaining this operating momentum while driving consistent and profitable growth. You'll be happy to note that we have almost doubled our market share in this year.

YTD FY '26, our OCF stands at INR 229 crores. This again reflects our continued focus on disciplined execution and prudent cash management. Our construction spend has risen from INR 609 crores year-to-date FY '25 to INR 718 crores in the year-to-date FY '26, reflecting an 18% year-on-year growth so far.

Moving to our consolidated financial performance. We have reported revenue from operations of INR 266 crores for Q3 FY '26 and INR 1,039 crores for year-to-date FY '26. Our gross margin for year-to-date FY '26 is 35% vis-a-vis 32% for year-to-date FY '25.

On our liquidity front also, our position remains very strong. As of 31st December '25, our gross debt is at INR 625 crores, translating to a gross debt-to-equity ratio of 0.22:1. This is very well within our guidance range. We've ended the quarter with free cash of about INR 717 crores. This

again underscores our healthy liquidity position. We remain net cash positive status, and this reflects the strength and flexibility of our balance sheet.

As you are aware, in addition to ICRA's existing rate of A+ with a Stable Outlook, India Ratings has also assigned to us a credit rating of A+ with a Positive Outlook. Again, a strong endorsement of our robust financial profile, strong project pipeline and execution through a diligent and disciplined approach.

As we move through FY '26, I'm proud to share the meaningful progress we've made even in our ESG journey. We have initiated and completed the preassessment GRESB rating system with an external consultant. Our projects, Rustomjee Belle Vue located in Kasara have received the Net Zero Carbon Award in design for the Club House 1 and 2 and Allied Utilities from IGBC at the IGBC Congress held in Mumbai. The ESG audits were successfully conducted at our project sites in MMR and Thane. Our certifications for ISO 14001 and ISO 45001 are in progress.

It is heartening for me to highlight that we have received a Green Champion Award, developer leading in Green Homes Movement in India by IGBC Leadership Awards 2025. Our project Rustomjee Crown has received the Best Residential Project in Luxury segment in Tier 1 at the CREDAI Awards. Rustomjee Seasons has received the Best Gated Community Project in Residential by CREDAI and Bella, Rustomjee Bella has received the second best award for the Mix Development Project in Tier 1 again by CREDAI. That makes it 3 awards given by the CREDAI, which is the body for real estate developers across the country.

We remain fully committed to creating long-term value for you stakeholders while continuing to strengthen our position as a trusted and forward-looking developer. The market environment remains favorable. Our strategic clarity, execution strength and financial discipline makes us well prepared to capture the next wave of growth and expansion. At Rustomjee, we are not just building homes, but we are shaping thriving, sustainable and future-ready communities.

I once again thank you for your trust, support and continued partnership. Look forward to questions going forward now.

Thank you very much. We will now begin the question-and-answer session. The first question is from the line of Sumit Kumar from JM Financial Institutional Securities.

Congratulations on a good set of numbers. My first question is on the launch pipeline and the presales guidance going forward. So what is the launch pipeline for 4Q and where we are in terms of readiness of these launches? And what would be your guidance for the presales growth for FY '27 over FY '26, given that we have added quite a few high-value projects this year?

Sumit, thank you for that question. Look, we are very enthused by the kind of support we have received in all the launches so far. And Q4 is also going to see a launch of a project of ours where we received RERA clearances, etcetera. We're just in the process of getting the entire layout readied for the launch.

This is a project at Sewri that is being launched and Sewri is a very hot destination today, given the infrastructure growth in that area. While I don't want to give any guidance for FY '27, I can tell you our growth trajectory will continue. And we will see a 25%. And as usual, we will stay cautious in our forecast, but we'll project a 25% growth year-on-year going forward.

And on our FY '26, our presales guidance of INR4,000 crores is going to be very well achieved.

As I have mentioned, because of sales of one of our projects that we are taking up in this quarter, and you'll be very happy to hear our results in April.

Sure. That's helpful. My second question is, if you could give us some color on what is the difference between a normal society redevelopment under 33(7)(B) and what sets apart this sort of cluster redevelopment that happens under, I think, 33(9)? So what are the key benefits that are available apart from that it's a larger land plot and you can plan a bigger sort of gated community?

Sumit, Chandresh here. Just to briefly answer your question in terms of the difference between 33(7)(B) and cluster development, which is 33(9). So as you are aware, the larger the development, the government of Maharashtra has brought in Regulation 33(9) to ensure that there is an incentive both for the landowners or the societies and also the developer going for larger development.

This is in line with the growth impetus that the government of Maharashtra is giving to the city and the state. Larger the development gives an opportunity to give some area or some landmarks to the community in terms of development of amenities, social infrastructure. And that is why additional incentive is given to the developer and the housing societies.

What's in it for the housing societies? They are entitled to a larger area compared to 33(7)(B).

And what is in it for the developers? They are entitled to a higher incentive in terms of the free sale area that they get for undertaking larger developments. So it's a win-win. All 3 stakeholders, whether it is the government, it is the existing residents and the developer, all 3 gain out of this cluster development.

The next question is from the line of Krish from Anand Rathi.

Just if you could highlight on the demand environment and how are you seeing it right now?

And how do you feel about the demand environment right now?

Krish, the demand overall, according to us in the MMR region continues to exist. We did see a lot of news articles that said that there is a slowdown. Of course, the numbers do reflect a reduced sales in terms of volume. But the project that we have launched and we have chosen and where we are seeing traction taking place are the ones that we are taking up. Our strategy continues to be successful thus far.

And our product launches are seeing a great amount of interest amongst buyers. And you will see this continue even in our oncoming launch. As a matter, I'm happy to state that our

commercial did extremely well in Bandra. Our sales of residential 2 projects in Bandra are also seeing great traction. We are awaiting the launch of Sewri, which will see again a great amount of buyer interest or have seen a great amount of broker interest. And hopefully, we'll see a great amount of buyer interest as well.

So as mentioned in the past, it is very important to know where the projects are getting launched and what is the inherent demand in those places. And towards this, your company has been data- driven, and we've always been keeping a watchful eye on the happenings in the city and which way the city will expand and how the transportation will kind of assist in making that change.

So we only enter those locations where infrastructure or there's some other meaningful development taking place, and this has held us in good stead so far.

And also the Western suburbs continue to be strong. And if you've seen our BD, all the cluster developments that I have maintained, 3 of them are in the Western suburbs, where there's a great amount of demand that we see even today. And all the data, again, points towards a strong growing population in these areas. So we are fairly confident of our ongoing project as well as the future BD that we are doing.

That's helpful. And secondly, coming back to cluster development, can you broadly specify, like how much similar potential can we expect in the near-term? And what support are you getting from local authorities or the state government to, like, bank upon similar kind of opportunity so we can execute these projects in a sustainable manner?

So, Krish, there is no specific support that we receive from the government [inaudible 0:22:41].

I think someone is on the line. Can you all hear me? Yes, sir.

Okay. So it is just the government stated initiative to take up cluster development, so they don't have stand-alone buildings with not enough development facility around it. A cluster development gives you larger gardens, more infrastructure, better amenities versus 20,000 square meters vs a 2,000 square meter also gives the design flexibility available to a developer to be able to create better communities.

Towards that, the laws are pretty well set out. You go to a high-power committee with your entire presentation. Once they've cleared it, more or less, the entire process thereafter is almost set out. And you can just move a lot faster when you have a larger layout for development versus having a single building because as you understand, storage of material becomes better, your labor camps are more on ground.

People don't have to travel from far. So from all of these angles, a cluster development actually works out much, much better because it gives you a larger foot plate, floor plate and amenity plate for even the sales side of it. So great working conditions at the same point of time, great sales possibilities.

And you asked a question about the total GDV across these 4 clusters. We are looking at sorry, across 3 clusters, I have the number, but just give me a second. It's about INR 12,500 crores across all our 4 cluster developments.

The next question is from the line of Ritwik Sheth from One Up Financial Consultants.

Sir, a couple of questions from my end. Sir, in one of the slides, we have mentioned about finished inventory. What is the GDV of this finished inventory? GDV of finished inventory?

Give me a second for the data, please. You want to say the next question?

No, I'll tell you the total value of the finished inventory is about INR 220-odd crores.

Okay. Sir, my second question is related to the OCF. This quarter, we have seen a sharp reduction in OCF versus previous quarter's revenue of about, say, about INR 100 crores per quarter. This quarter is close to INR 2 crores, INR 3 crores. So what led to this? And what is the outlook for the, say, Q4 and FY '27 on the OCF, if you can just highlight on that?

So, Ritwik, you know that we have significantly upped our game in terms of the new launches.

This year, we have already launched 5 projects with the value of close to about INR 6,000-odd crores, INR 5,835 crores to be precise. Again, this quarter, we have a launch pipeline wherein we are talking one more project, as Boman has said that we are ready to go. So there is a significant amount of work which is going on in all the new projects.

You would appreciate that the year 1 of the new project, generally our own experience and our own business plans and our own -- what we have witnessed that the year 1 does not contribute much to the OCF and the subsequent year start contributing. So this year, on account of rightfully launching more projects of the higher value, thereby increasing our construction spend, increasing our other spend approvals, etcetera.

The OCF has been low for this quarter, particularly, but I expect it to go up, particularly from the second half of the next financial year. Not that it will be at that level, what has been in the quarter 3, but then there should be a significant upwards movement of the OCF in the second half of the next financial year.

Right. Yes. Sir, just a follow-up on this. Given that H1 also had -- H1 FY '26 also had new launches, our OCF was relatively stable. So was it that because of higher construction cost in the quarter incurred and other spends were higher on the launch projects? Was it because of that the OCF was low in this quarter?

Yes, absolutely. Absolutely rightly said. And also, the amount of launches have also gone up. If you look at the last year, the whole of a year, our total launch was about INR 5,000 crores. This year, in the 9 months, the launches has been INR 5,900 crores, means like the total number of launches and right at the start of the year, we have had the launches. There were about INR 4,000 crores worth of launches at the start of the quarter 1 only. So, obviously, in the year, we have

had basically put in a lot of investments, a lot of basically spend on the construction and the other allied expenses. And that's the reason that the OCF has been low, particularly for the 9 months as well as the 3 quarters.

So, let me just correct you. The costs have not gone up. It is the level of activity which has increased, and that has led to a lower OCF.

Right, right. The construction spends have gone up? Yes.

Right. And sir, just one final question about the Bandstand project. Any update or any movement on this?

Yes, I have -- that's what I was mentioning that you'll see a great uplift in the sales volume and value that takes place in the fourth quarter because we've launched the sales of that one.

Okay. Great. Okay. And sir, what is the launch inventory that we have done?

You mean what is the Bandstand area for launch? Yes.

Why don't we just wait for 1 quarter? Let me announce the results from that. So we will be launching in Q4?

Yes, yes. We've launched it for sale. Already 1 month has gone by. Yes. Thank you.

The next question is from the line of Abhir Pandit from Old Bridge Mutual Fund.

Sir, I just wanted to understand 3 questions. Sir, firstly, what would be the time period of the handover for the forthcoming projects on an average?

Sorry, you're talking about construction and then...

Yes, handover. Yes, complete handover of these projects?

Do you have any projects in mind you want to ask about because I'll tell you the...

No, across the -- normally, normally, I wanted to understand.

So, Abhir, as we told in our previous conference calls also that most of the projects in the pipeline, we would have launched over the next 3 years. 90% of projects, 80% we would have launched. I'm not saying the completion that we would have launched. And then you typically

depending on the complexity of the project, you consider size of the project, you consider about 3 to 5 years... 3 to 5 years. Okay. Okay. Perfect. Sir, my second question is related to the cluster redevelopment. I understand that the FSI is higher in that. So correspondingly, also, I would believe that the complexities and the size of the redevelopment must be higher. So I just wanted to understand your thought process on why are you looking at cluster redevelopment?

I mean, I believe you have answered a bit of it, but is it related to the fact that, I mean, normal redevelopment is facing a larger amount of competition, thus you want to go into a complex redevelopment area? What is the thought process here?

It's funny that you say that individual redevelopments are getting a lot more difficult. They aren't getting difficult. They're just getting a lot more complex because people are -- as things progress, I think someone wrote a nice article that people are treating the highest offer as the best offer and forgetting the basics. So we are waiting for some of that to come back to old world normalcy.

But cluster, actually, why does Rustomjee -- what is Rustomjee's design philosophy?

We've always been design-led as a company, right? And we've always believed in creating gated communities because gated communities allow for better, larger amenities, greater in terms of enrichment of lifestyle, you just have a lot more flexibility in the way the design comes across.

And that's what I was saying, imagine having a 20,000-meter 5-acre, 6-acre plot available for development versus having just 2,000 meters. So in 2,000 meters, all we can do is building and provide as many basements or podiums as car parking and then provide a strip of a garden and then provide some kind of terrace amenities.

Now take this to 20,000 square meters. In 20,000 square meters, you can provide larger gardens, you can provide play areas, you can provide for better car parking efficiencies. You can provide for all the amenities and more than you can provide in a single layout. And then you have the opportunity of doing this all in a way that will be looked up for the next 50 to 100 years, right?

And cluster is not possible by every other developer, right?

And if you look at Rustomjee, the way we've honed our skills in this field of redevelopment, we are the number 1 developer that -- the go-to developer that societies do consider. And when clusters start putting their faith in you, it just shows that these societies are mature, they're coming together and entrusting a developer to change their life and lifestyle for the future. I think it's a huge challenge. The complexity is there.

But this complexity, I know the government stated initiatives is for these larger developments for better lifestyle for the residents of Mumbai. And towards that, there'll be a lot of ongoing parlays with the government to make these more and more meaningful and better for the location as well as for the people living in it. And we've always been a first mover, and I think here we are, and we're going to be doing these 4 large cluster redevelopments in a way changing the landscape of the areas that we are working in.

Okay. Perfect. Perfect. Sir, just one final query related to the commercial. I believe now that you are also looking at commercial expansion. So just wanted to have your thought process on what

is the nature of the -- or the characteristics of the properties that you're looking at? What is the target area or let's say, what is the -- I mean, the revenue generation that you look at when selecting a property for the commercial area?

So right. Commercial is a natural extension of our abilities and capabilities and growing prowess that we have. And we've been extremely selective in what we do. So, the first commercial development, I mean -- and it's not like we've not done commercial in the past, we have, right?

We've done our own building Natraj in Andheri. We've done Aspiree in Sion. We've done Central Park again in Andheri. And then we've built at least about 14 social redevelopment projects that is schools, hospitals, temples, etcetera.

But now our foray into commercial is with the marquee developments. So we're doing 33Fifteen, which is situated in Bandra on 33rd and 15th Road just off Linking Road, which is a prime, I would say, A+ development that is taking place in that area, which will create a whole lot of infrastructure in terms of eateries, in terms of offices, in terms of social hangout areas in Bandra West. The second one that we are looking at is a 200,000 -- approximately 200,000 square feet development, which is in Prabhadevi.

Then we have Thane, where we have about 18 million square -- sorry, 1.8 million square feet of commercial development where we are looking at developing, enhancing the livability or the lovability of Urbania township by creating this commercial where the people can have the ability to walk to work and walk to great social hangout areas, including restaurants over there. So that is also in progress. And the idea that we want to approach this with is to create category A developments only in commercial. So we will not do -- we will try and avoid other locations.

And we look at INR 1,000-plus crores as the GDV as a starting point or just as a viewing for you.

The next question is from the line of Pritesh Sheth from Axis Capital Limited.

A few questions on the collection side, which has been weak in first 9 months. Y-o-Y, we have seen a drop. So just to be specific, I mean, in last 8 quarters, if I see, we have done a presales of average INR800 crores around. While our collections are yet to scale up to that extent, by what time you think that we can scale up to that presales number and get closer to INR700 crores, INR800 crores?

And just a follow-up on that. In last 3 quarters, I think our difference between gross collections and net collections have widened a bit. We were earlier at 75%, 80% kind of a ratio between net and gross. Now we are tracking at 65%. So what could be the reason?

Yes. So, Pritesh, the collections, we always say that as a growing company, about 75% to 80% of presales that what we should be looking at the collection efficiency, given the mix of the new project and the old projects. We have grown in collection by 12% the same time last year, we did INR 1,580 crores. And this year, we have done INR 1,770 crores in the 9 months.

Collection, as I said, since there are large amount of new projects, the construction pace is picking up. Collections are construction linked. We should be seeing this efficiency achieved definitely, for sure, in the next year. And even in the current year, very close to that. It's like

about 75% of the total presales is that what we are looking at as the collection efficiency, which means that about INR 2,250 crores -- sorry, about INR 2,800 crores, we are at INR 1,600 crores.

I think we should see a pickup in the quarter 4 and the steady basically 75% to 80% from the next year onwards.

And this question on just show that difference between gross.

Got it. And the difference on the net and gross collections?

So, in net collections is the same. Look, the net collection, I am assuming that you are looking at the OCF chart. And the gross collection, you're looking at our normal collection chart is what I'm assuming. In our case, the gross and net collections is the same. While when we say the net collections, some of the JV projects and some of the DM projects, while on the operating number, we report their collection. But in the OCF, we only report to the extent it is consolidated into our financials.

So fundamentally, there is no difference in the gross and net collections. It is just part of the collections in the OCF because those cash flows are not available to us directly. And only to the extent the cash flow comes to us is what we consolidate, if that collection is counted out of the gross collections. So that is the reason this number is different. But otherwise, for our purposes and for the reporting purposes, our gross collections, net collections are same. If I include those projects also here, then it will tie up to the gross collections.

Yes. Got it. So, for first 9 months, I think large part of our collection has come from JV and DM, a little higher proportion and hence, our gross and net on the 2 reporting numbers looks a bit lower, right?

Yes, you can say that or you can say that there is a larger proportion of the collections into the - - is due to basically this.

Due to basically -- sorry, I didn't get the last part.

The larger proportion of the collections is coming into our DM projects and in our JV projects because we are doing Urbania has launched another basically tower. Then we have basically 180 Bayview is doing very well. 33fifteen is another commercial project, which has been launched and there is a collection happening. So all those collections, we are not basically reporting here as a part of our net collections.

Got it. Yes. Got it. My second question on the contribution from new launches in first 9 months in our full 9 months sales. So how much have the new launches of whatever we have done in first 3 quarters, how much has that contributed to presales in 9 months?

So in 9 months, our 37% of the total sales have been contributed -- 32% for the 9 months and 37% in the quarter 3 is contributed by the new launches. 1/3 of the presales basically is contributed by the new launches.

Got it. And sir, just specifically on Balmoral, which we launched in Q1, I suppose it's a little bit slower amongst all the other projects that we have. And of that, I think we have started offering some deferred payment schemes as well. So what's the strategy there? How are you probably going to drive volumes there? So just if you can highlight on that point? Yes.

So we are a first mover in most things. We are the first ones to actually recognize the potential of that particular land and create what's going to be possibly one of the finest developments that Chembur will see with probably a 100-year view of an open, beautiful green space, which is price less according to us, along with it on a plot which is fairly large and allows us to create all kinds of amenities.

Of course, the price points that we have started out there are something that market is just not able to or has still not been able to digest. And what we've understood is that, we'll have to first bring it to some form of creation where people will be able to see what's really happening. And our sample home is about to get ready later this month.

And once that is done, we do believe there is a strong buy that will take place. Our walk-ins have been great. People have been looking at it. You can see from their eyes, they're almost there, but sometimes the blockage just happens that this location, this price does not seem right, whereas we want to change that paradigm.

And I'm fortunate that another premium developer has just or is announcing his project also with, let's say, similar views, etcetera. And he -- they and us have a similar track record in terms of creating fine developments or great developments. And we are watching the price points at which they will launch, but market intelligence tells us they're almost at the same price point.

This will make the larger consumer base a lot more comfortable in understanding the value of the creation, the locational advantages thereof and be a little more comfortable with making the buying decision. But even if they wouldn't -- I mean, I'm not trying to be over-cocky, but even if they hadn't launched, we are pretty confident that our -- once our amenities were visible, there'd be a lot more buying taking place. I mean we had expected this, and we had programmed for it, and our construction is in full swing. And I think with the show apartment done, we will see a lot more buying taking place.

Got it. And with the scheme that you offer, do you really see a change in conversion or this is just for bringing them at least at site and then people go with the normal construction linked plan. In general, just understanding what the perception is when we offer the scheme.

Yes and no both ways. One is definitely a price payment plan or a payment plan attracts people because then they look a little beyond just the price, right? And they look at the value a little more. And when you back end it, you're taking the risk off their back, so they are a lot more happier. So, of course, decision-making does get quicker and better with that.

But like I said, finally, we are banking on the product and the location of the product and the kind of lifestyle that we are creating for people, and that will be better seen by people once our show apartment is readied and we have a visual on what it is that is being created out there. That will allow people to kind of make the buying decision a lot easier.

Got it. And just one last on -- trying to get some sense on FY '27. I think if I look at our business development from listing till FY '25, just ending there, we have almost launched like INR 7,000 crores, INR 8,000 crores or a little more. I think we are still yet to launch around INR 10,000 crores worth of projects from what we have added before FY -- before we started FY '26. Safe to assume that all of those launches largely will come through in FY '27 or we might see some slipping to FY '28 as well?

So your question is pretty broad brush based, but let me try and answer it differently to you.

Normal turnaround time that we are quoting between a DA and launch is about 12 months' time.

So all these projects will get launched within the next 12 to 15 months. But they would get launched in phases. So just to give you an idea, when I launched Lokhandwala, I won't be launching INR 8,000 crores at one go.

I will be launching maybe 2 buildings, maybe about INR 2,000 crores and then 6 months later, launching the next 2 buildings and then 6 months later, launching the other 2 buildings. So we've got to kind of pace ourselves accordingly. It's like a marathon, right? This is not like a sprint that we are doing. And even this year, we've launched close to around INR 9,000 crores to INR 10,000 crores wait for this quarter, I mean, this will take it way past that also.

The next question is from the line of Ritwik Sheth from One Up Financial Consultants.

Sir, just one follow-up. What is the inventory at Crown as of December 2025? So inventory at Crown...

So inventory at Crown is in 2 buckets. One is we are all aware that our landowner also has his stock to sell. I don't have a ready answer for you as to his inventory. But our inventory is about INR 276 crores, not about pretty precisely about INR 276 crores. Okay. Got it. And that would...

We are largely sold, Ritwik, A and B Tower, we don't have any inventory. I think just 1 flat to sell. The C Tower, as you know, that we have already got the part OC. Part OC -- substantial OC. Part OC is not basically. Then there are also very insignificant inventory is there to sell. Right. Okay. And sir...

And partners inventory, though we do help in terms of selling, but then that does not get accounted for in our financials. That's the line of the inventory.

Right. And when do we expect the full OC to be received?

I mean the full OC is only a technicality with regards to certain compliances that should come through in this quarter itself.

Okay. Great. And sir, just one last question, if I can squeeze in, about the business development for FY '27, what kind of money we are looking -- amount we are looking to spend in FY '27?

And do we expect to do a similar kind what we did in FY '26?

So, this again depends largely on what kinds of developments come our way in '27. But this year, we've done about INR 650 crores in terms of BD deployments or whatever. So you can say that maybe a 25% growth thereof would be about INR 1,000 crores or something INR 850 crores to INR 1,000 crores, let's see.

And again, you should know that we really are very tight on our policy where we go in for redevelopments largely with the idea to kind of invest lesser and lesser in BD and have more and more a larger share of inventory for sale.

Right. Absolutely. And sir, what will be the sources of fund? Because as we see like the OCF is not getting generated because of new launches in FY '27. So what could be the sources? Because I believe we are almost exhausted all our cash by -- would have exhausted all our cash by March '26. So can you give a broad bucket, what would be the debt? What would be the internal accruals funding of this INR 850 crores, INR 900 crores?

So, Ritwik, as you know, we are at a very reasonable debt-equity ratio. So, we have a huge amount of headroom to go as far as debt is concerned. So yes, obviously, a part of the capital will come from debt. And also internal accruals, so -- going forward, our OCF will also support this kind of development activities that we need to undertake.

Okay. Okay, sure. So safe to say that 2/3 would be debt funded out of this INR 900 crores?

I would more like not 2/3, but maybe 40% would be debt.

Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to management for closing comments.

Once again, a very big thank you for joining us today. On behalf of Rustomjee management, we are very grateful to you for your continued interest in us. In case of any further queries, please feel free to reach out to us, and we'll be only too happy to take care of those. Thank you.

Thank you, sir. On behalf of Axis Capital Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines. Thank you. BIMAL KISHORE NANDA Digitally signed by BIMAL KISHORE NANDA