01 — At a Glance
The Realty Developer That Makes “No Free Samples” Viable
- 52-Week High / Low₹1,055 / ₹349
- Q3 FY26 Sales Revenue₹758 Cr
- Q3 FY26 PAT₹66.8 Cr
- Q3 EPS₹10.03
- Annualised EPS (9M Avg × 4)₹28.73
- Book Value / Share₹202
- Price to Book2.07x
- Net Debt (Dec 2025)₹230 Cr
- Total Portfolio Potential₹40,000 Cr
- Land Bank Potential Revenue₹25,000 Cr (Thane)
Flash Summary: Raymond Realty just delivered Q3 FY26 PAT of ₹66.8 crore — up 2,119% YoY from a ₹3 crore quarter in Dec 2024. Yes, that baseline was tiny, but the fact that they’re now consistently profitable and booking projects at ₹743 crore in Q3 (up 47% YoY) suggests the demerger didn’t just separate them from Textiles Dad — it unlocked growth on steroids. At 19x P/E with 72% ROE and a ₹40,000 crore project pipeline waiting to be monetized, the market’s 10% three-month pullback looks like someone panic-sold at a wedding reception.
02 — Introduction
When Textiles Dad Says “Go Be Your Own Developer”
On May 14, 2025, Raymond Limited did something unusual in India’s corporate world: it demerged its real estate arm cleanly, gave it a crisp 1:1 ratio split, and said “beta, now you’re on your own.” On July 1, 2025, Raymond Realty Limited (RRL) got listed on BSE and NSE — a brand new PSU pretending to be a startup with ₹2,773 crore market cap and enough ambition to make a tiger jealous.
The timing was not accidental. Mumbai real estate was entering a blue-chip phase — premium residential projects selling faster than chai in Dombivli. The government was liberalizing slum rehabilitation policies. And suddenly, the Singhania family’s real estate division (which had been quietly executing projects since 2017) needed its own platform. So here we are: a brand new listing, zero dividend, all-in growth mode, and a management team that speaks in quarters like they’re running a startup, not a 175-year-old family conglomerate’s property side.
The Q3 FY26 story is delicious. While the TTM (Trailing Twelve Months) shows ₹1,945 crore in sales and ₹146 crore in PAT, the quarterly trajectory tells the real story: they’re accelerating. Q3 bookings crossed ₹743 crore (+47% YoY). Collections hit ₹1,210 crore in 9M. And management is guiding 20% pre-sales growth for FY26, which sounds conservative given they’re launching 4 new projects in Q4 alone. Welcome to the New Raymond Realty. Textiles? Never heard of her.
CARE Ratings Note (Jul 2025): CARE A+; Stable — this is what you assign to a debt-light, asset-rich, property developer with zero-debt history and a 60-acre land bank worth ₹25,000 crore in Thane. The rating also factors in “resourceful promoter group and experienced management profile” — which is code for “these people own Raymond Group, so financial flexibility is baked in.”
03 — Business Model: Building Boxes (And Charging A Lot For Them)
The Raymond Realty Formula: 60 Acres + JDAs + Mumbai = ?
Raymond Realty owns two primary assets: (a) a 60-acre land bank in Thane and Bandra, and (b) access to JDAs (Joint Development Agreements) across Mumbai. Translation: They either build their own projects or partner with landowners and take a development fee. The asset-light model is the real innovation here—very different from traditional developers who own land, burn cash, and wait for years.
The brand portfolio is crisp: Ten X (aspirational), The Address by GS (premium), and Invictus (ultra-luxury). Each targets a different buyer psyche. A young professional buys Ten X. A banker buys The Address. A business baron buys Invictus. By Q3 FY26, they had 7 ongoing projects (mostly in Thane, one in Bandra) with 45 lakh sq.ft. of saleable area approved by RERA. Of these, projects like Ten X Habitat (96% sold) and The Address by GS (97% sold) are approaching completion—which means collection velocity picks up and debt naturally deleverages.
The JDA strategy is where management gets visibly excited (listen to the concalls). Instead of buying 10 acres at ₹500 crore, they partner with landowners in Wadala, Mahim, Kandivali, Sion—emerging micro-markets—contribute development expertise, and take a development margin. Six JDAs are in the pipeline with ₹14,000 crore potential revenue. Two have already launched. Four more are coming. This is basically a franchise model for real estate.
Thane Portfolio60 acres₹25,000 Cr potential
JDA Portfolio6 JDAs₹14,000 Cr potential
Total Potential₹40,000 CrPortfolio GDV
Booking Value (Q3)₹743 Cr+47% YoY
Fun fact from the concall: Management revealed they’re “asset-light by design” and expect 50% of FY28 pre-sales to come from JDAs. This is not just talk—two JDAs have already been launched, with “overwhelming market reception” and ₹2,000 crore revenue potential each. The developer that doesn’t own land is the one growing fastest. Classic Mumbai disruption.
04 — Financials Overview: The Numbers Go Brrr (Literally Impossible YoY Comps)
Q3 FY26: When Last Year’s Baseline Was ₹3 Crore PAT
Result type: Quarterly Results | Q3 FY26 EPS: ₹10.03 | 9M Avg EPS: (₹2.48+₹9.04+₹10.03)/3 = ₹7.18 | Annualised EPS: ₹28.73
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Sales Revenue | 758 | 92 | 696 | +721% | +9.1% |
| Operating Profit | 91 | 14 | 91 | +551% | +0.0% |
| OPM % | 12% | 15% | 13% | -300 bps | -100 bps |
| PAT | 67 | 3 | 60 | +2,119% | +11.7% |
| EPS (₹) | 10.03 | 0.47 | 9.04 | +2,031% | +10.9% |
STOP. Let me explain why 2,119% growth is not as insane as it looks. Last year’s Q3 (Dec 2024) was the pre-demerger quarter when RRL was a “real estate division” of Raymond Ltd, losing money and getting allocated costs it didn’t directly incur. This year’s Q3 is post-demerger, with a clean P&L, all costs fully allocated, and meaningful revenue because (a) collections from sold units are flowing in, and (b) projects like Ten X Habitat are nearing completion and handover. The YoY math is wild, but the underlying business momentum is genuinely strong. A more honest comparison: Q3 FY26 (₹758 cr) vs Q2 FY26 (₹696 cr) is +9.1% QoQ—steady, not explosive, but solid.
💬 At what point does 2,119% growth stop being impressive and start being “that’s because last year’s baseline was microscopic”? Management would say “the demerger freed us.” Investors might say “show me a full year before I believe it.” Where do you land?
05 — Valuation Discussion: Fair Value Range
Is ₹416 Expensive or Actually Cheap for a ₹40,000 Crore Pipeline?
Method 1: P/E Based
Annualised EPS (9M avg) = ₹28.73. Realty sector median P/E = 25.3x. RRL trades at 19.0x. Discount justified by (a) new listing (low float), (b) execution risk on 4 Q4 launches, (c) JDA integration complexity. Fair P/E band for a growth-stage developer: 18x–24x.
→ 18x × ₹28.73 = ₹517 24x × ₹28.73 = ₹690
Range: ₹517 – ₹690
Method 2: Price to Book Value
Book Value per share = ₹202. Current P/BV = 2.07x. For a debt-light developer with 72% ROE and ₹40,000 crore portfolio potential, a P/BV of 2.0x–3.0x is reasonable—accounting for land upside and project appreciation. At the upper band: ₹202 × 3.0 = ₹606. At the lower: ₹202 × 2.0 = ₹404 (basically current price).
→ 2.0x × ₹202 = ₹404 3.0x × ₹202 = ₹606
Range: ₹404 – ₹606
Method 3: Revenue Multiple (TTM Basis)
TTM Revenue = ₹1,945 crore. Market Cap = ₹2,773 crore. Price-to-Sales = 1.43x. Realty median P/S is typically 1.8x–2.5x. At 1.5x–2.2x on TTM revenue, fair value implies: ₹1,945 × 1.5 = ₹2,918 crore MCap = ₹438/share; ₹1,945 × 2.2 = ₹4,279 crore MCap = ₹644/share.
Assuming dilution-adjusted equity value at range midpoints: ₹438–₹644.
Range: ₹438 – ₹644
Consolidated View: Across all three methods, fair value clusters around ₹450–₹650. The CMP of ₹416 sits near or slightly below the lower bounds — suggesting either (a) the market is still uncertain post-demerger, or (b) investors are pricing in risk from Q4 launches and JDA execution. The ₹2,000 crore potential from “Invictus by GS, BKC” (Bandra JDA) alone is 0.7% of market cap, and if that project delivers at expected margins, the narrative shifts materially.
⚠️ EduInvesting Fair Value Range: ₹450 – ₹650. This fair value range is for educational purposes only and is not investment advice. Please consult a SEBI-registered investment advisor before making any financial decision.
06 — What’s Cooking: News, Triggers & Drama
Q4 Launches, IT Notices, and Why Management Sounds So Confident
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