At a Glance
Kolte-Patil Developers just reported Q1 FY26 Sales of ₹51 Cr (down a harsh 21% YoY) and a Net Loss of ₹20.5 Cr. The stock tanked 5.5% to ₹420, a reflection of investors saying “Not again!”. The company raised ₹417 Cr via preferential equity and is issuing ₹250 Cr NCDs – the balance sheet is getting creative while sales stay moody.
Introduction
Once the darling of Pune real estate, Kolte-Patil is now stuck between luxury dreams and mid-income realities. The luxury 24K brand sparkles, but numbers don’t. Margins are tighter than Mumbai’s parking spaces, and debt is inching up. Still, promoters upped stake, showing they believe in their own story – or at least want you to.
Business Model (WTF Do They Even Do?)
- Segments: Residential (mid-income and premium), Commercial.
- Brands:
- Kolte-Patil: Mid-income projects.
- 24K: Luxury segment.
- Geography: Pune (stronghold), expanding in Mumbai & Bengaluru.
The business runs on project launches, pre-sales, and execution efficiency. Missing any one of these – and you’re in the red, as seen this quarter.
Financials Overview
Q1 FY26:
- Revenue: ₹51 Cr (-20.6% YoY)
- EBITDA: -₹19 Cr (OPM -38%)
- PAT: -₹20.5 Cr (Net loss widens)
- EPS: -₹2.31
FY25 Snapshot:
- Sales ₹1,089 Cr
- PAT ₹69 Cr
- ROE 8.8% – below sector biggies.
Valuation
- P/E: 42.4 (for a loss-making Q1, this screams “expensive”)
- P/B: 3.9
- Fair Value Range: ₹350 – ₹450 based on P/B and future cash flows.
What’s Cooking – News, Triggers, Drama
- Fundraising: ₹417 Cr via equity, ₹250 Cr NCDs approved.
- Project Pipeline: Aggressive launches planned in Pune, Mumbai.
- Macro Risks: Higher rates, slower housing demand could bite.
Balance Sheet
| Assets | ₹ Cr |
|---|---|
| Total Assets | 3,297 |
| Net Worth | 807 |
| Borrowings | 1,234 |
| Liabilities | 1,257 |
Auditor’s Punchline: Debt is climbing like Pune’s real estate prices, but without the returns.
Cash Flow – Sab Number Game Hai
| Year | Ops | Investing | Financing |
|---|---|---|---|
| FY23 | ₹157 Cr | -₹149 Cr | -₹28 Cr |
| FY24 | -₹308 Cr | -₹14 Cr | ₹416 Cr |
| FY25 | -₹46 Cr | -₹33 Cr | -₹47 Cr |
Remark: Operations bleeding, financing plugging holes – dangerous combo.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 8.8% |
| ROCE | 7.8% |
| D/E | 1.0 |
| OPM | 10% (TTM) |
| P/E | 42.4 |
Verdict: Stressy – no wonder the stock’s slipping.
P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹903 Cr | ₹70 Cr | ₹40 Cr |
| FY24 | ₹1,089 Cr | ₹105 Cr | ₹69 Cr |
| FY25 | ₹1,075 Cr | ₹112 Cr | ₹88 Cr |
Despite FY25 profits, Q1 FY26 is a nasty hiccup.
Peer Comparison
| Company | Revenue (₹Cr) | PAT (₹Cr) | P/E |
|---|---|---|---|
| DLF | 7,994 | 4,657 | 42.6 |
| Lodha | 14,425 | 2,964 | 41.9 |
| Godrej Prop. | 4,923 | 1,216 | 53.4 |
| Kolte-Patil | 1,075 | 88 | 42.4 |
Peers have scale. Kolte-Patil is still trying to punch above its weight.
Miscellaneous – Shareholding, Promoters
- Promoters: 69.45%
- FIIs: 8.12% (jumped, interestingly)
- DIIs: 4.5%
- Public: 17.9%
Promoters buying more – bullish? Or just PR?
EduInvesting Verdict™
Kolte-Patil is a mid-cap builder with luxury ambitions. Q1 FY26 loss shows execution risk. Debt-funded growth is risky, but pipeline and fundraising could drive a turnaround.
SWOT
- Strengths: Strong Pune presence, brand recall.
- Weakness: Low margins, debt, inconsistent earnings.
- Opportunities: Mumbai & Bengaluru expansion, housing demand revival.
- Threats: Interest rates, regulatory hurdles, project delays.
Final Word: The stock trades like a Bollywood drama – suspense, highs, and sudden crashes. Attractive for risk-takers, but cautious for long-term investors.
Written by EduInvesting Team | 29 July 2025SEO Tags: Kolte-Patil Developers, Q1 FY26 Results, Real Estate Stocks, Pune Builders
