1. At a Glance
Keystone Realtors Limited — better known to Mumbai homebuyers as Rustomjee — is currently trading at ₹463, nursing a ~19% one-year drawdown, while the market cap sits at ₹5,841 Cr. That’s not a typo. A Mumbai redevelopment heavyweight with a 43 million sq ft pipeline, ₹837 Cr Q3 FY26 pre-sales, and ₹2,676 Cr YTD bookings is being valued at 64× earnings, with ROE of 7.5% and ROCE of 9.3%.
Yes, welcome to Indian real estate equities — where land banks are massive, cash flows are seasonal, and valuation logic often takes a tea break.
Q3 FY26 numbers?
- Sales: ₹266 Cr (-43% QoQ)
- PAT: ₹5.1 Cr (-78% QoQ)
- EPS: ₹0.27
- Debt: ₹1,219 Cr (gross)
- Pre-sales: ₹837 Cr
This is not a collapse. This is timing, accounting, and the uniquely frustrating rhythm of redevelopment projects. But the stock doesn’t care about explanations — only optics. And right now, optics are… messy.
So, is this a misunderstood redevelopment machine or just an expensive builder with patience issues? Let’s open the site office and read the fine print.
2. Introduction
Keystone Realtors is not your typical land-hoarding real estate dinosaur. It doesn’t go around buying 200 acres on the outskirts of nowhere and praying for infra announcements. Its playground is Mumbai Metropolitan Region (MMR) — the world’s most stubborn real estate market where land doesn’t exist, permissions take years, and societies negotiate like seasoned diplomats.
Founded in 1995, Keystone has spent nearly three decades mastering one thing: redevelopment. Convincing old housing societies to trust you with their only asset, rehousing families without riots, extracting FSI benefits from regulators, and then selling premium apartments on top — that’s not real estate, that’s social engineering with cement.
But here’s the problem. The stock market loves smooth quarterly profits. Redevelopment businesses deliver lumpy recognition, volatile margins, and quarterly numbers that look like ECG charts.
In FY24, Keystone reported ₹2,222 Cr revenue and ₹111 Cr PAT. In FY25, revenue softened to ₹2,004 Cr,
while profits rose to ₹188 Cr thanks to project completions and other income. Then Q3 FY26 comes along and suddenly PAT is ₹5 Cr.
Cue panic.
But if you track pre-sales, GDV additions, debt trajectory, and execution pipeline, a very different story emerges. The question is not “why was Q3 weak?” — the question is whether this business deserves a premium multiple at all.
Let’s find out.
3. Business Model – WTF Do They Even Do?
Keystone Realtors operates a redevelopment-heavy, asset-light real estate model. Translation:
They don’t buy land upfront. They partner.
How it works (Mumbai edition):
- Identify an old housing society or cluster redevelopment opportunity
- Promise existing residents bigger homes (free of cost)
- Bear construction + rehab costs
- Monetize additional FSI by selling new apartments
- Pray approvals don’t get stuck for three monsoons
This model:
- Reduces upfront land acquisition cost
- Improves capital efficiency
- Increases execution complexity
As of Q1 FY25, Keystone has:
- 34 completed projects
- 25+ million sq ft delivered
- 43+ million sq ft pipeline
- 15 ongoing projects (4.97 mn sq ft)
- 27 upcoming projects (27.04 mn sq ft)
Segment mix of ongoing inventory:
- Mid/Mass: 61%
- Premium/Super-premium: ~19%
- Aspirational: 12%
- Affordable: 8%
About 55% of ongoing inventory is already sold, which is solid by redevelopment standards.
And yes, they recently entered plotted development — 88 acres in Kasara, ₹91 Cr
