Kalpataru Ltd

Kalpataru Ltd — Trading Window closed from October 01, 2026 till completion of 48 hours after the declaration of the Unaudited Standalone and Consolidated Financial Results for the quarter and half year ending on September 30, 2026.

Key Update

• Ananta Landmarks Private Limited, Kalpataru's subsidiary, received a GST show-cause notice.
• Notice seeks Rs. 14,00,00,892 related to reverse charge and ITC disallowance for FY2022-23.
• ALPL contends the notice has no merits and will contest it.
• No material financial impact on Kalpataru's operations is observed.
• Notice dated September 24, 2026; information on Kalpataru's website.

Key Update

• Abacus Real Estate Private Limited, Kalpataru subsidiary, filed GST Appellate Tribunal appeal against the order.
• Tax demand of Rs.1,35,66,011 plus interest and penalty contested.
• Appellate filing does not have material financial impact on the company.

Rating action and rated instruments

• Rating action: long-term rating downgraded to BBB/Stable; Rs 383.36 crore facility withdrawn.
• Total bank facilities rated: Rs 1,362.94 crore (enhanced from Rs 1,126.3 crore; Rs 383.36 crore withdrawn).
• HDFC Bank facility (742.94 crore) rated BBB/Stable.
• Indian Bank facility (500 crore) rated BBB/Stable.
• PNB Housing Finance facility (120 crore) rated BBB/Stable.

Rationale and financial profile

• Downgrade driven by slower improvement in financial risk profile due to delayed collections and cash accrual.
• Debt-to-CFO expected above 3.5x through FY2028; deleveraging slower despite IPO proceeds and promoter infusion.
• FY2026 revenue Rs 3,436 crore; PAT Rs 80 crore; PAT margin 2.3%.
• Liquidity adequate with Rs 959 crore cash as of 30 June 2026; refinancing support.
• Strengths: established MMR market position; large project portfolio; improved saleability and collections.

Outlook and sensitivity

• Outlook: Stable.
• Upward factors: sustained sales/collections; debt-to-CFO under 3.25x on a sustained basis.
• Downward factors: debt-funded land acquisitions raising debt-to-CFO; weaker saleability or delays.
• Downgrade to BBB/Stable from BBB+/Stable; withdrawal of Rs 383.36 crore facility; total facilities Rs 1,362.94 crore.

Company and market context

• MMR-focused developer; concentration risk around 83% of 2026 collections.
• As of Jun 30, 2026: 85 projects; 24.5 msf completed; 23.6 msf under development.
• Saleable area launches 10-12 msf over 3 years; 2027-28 bookings Rs 6,000-7,500 crore.
• Liquidity Rs 959 crore cash; asset-light focus with redevelopment/JV strategy.

ESOP Allotment

• Sept 9, 2026: N&R Committee approved allotment of 4,825 ESOP shares.
• Paid-up capital rose to ₹2,05,92,69,180 from ₹2,05,92,20,930.
• Total equity shares now 20,59,26,918; new shares rank pari-passu.

Financial Performance

• Q1 FY27 revenue from operations: Rs 472 crores.
• Adjusted EBITDA Rs 95 crores; margin ~20%.
• Net loss for the quarter: Rs 29 crores.
• Gross debt Rs 9,189 crores; cash Rs 959 crores.
• Net debt Rs 8,229 crores; net debt/equity 2.0x.
• Debt refinanced this quarter: Rs 1,800 crores; annual savings Rs 55 crores.
• Weighted average cost of borrowing ~11% p.a.; down ~200 bps since listing.
• Total debt refinanced since IPO: ~Rs 5,300 crores.
• FY27 pre-sales target Rs 6,500 crores; ~23% growth over FY26.
• Net debt end-FY27 around FY26; debt/equity to improve on profits recognition.
• completion target: around 15 million sq ft of ongoing projects across FY27-FY29.
• FY27 completion target: 5.5 million sq ft.

Operating Update

• Pre-sales Q1 FY27: Rs 1,329 crores; up 6% YoY.
• Sales collections: Rs 1,365 crores; up 17% YoY.
• Park City Thane presales up ~350% YoY.
• On-site residents >2,000; target >3,000 by year-end next year.
• Two new launches totaling 1.25 million sq ft saleable area.
• Estella Tower C; Kalpataru Vian, Hrushikesh, Lokhandwala launched.
• Vian/Hrushikesh launched end of June 2026; response encouraging.
• OC received for Kalpataru Elitus Tower B and Kalpataru Summit Mulund.
• Redevelopment development agreement: Ashok Nagar, Kandivali; GDV Rs 1,250 crores.
• Monetized Kalpataru Infinia Pune for Rs 119 crores.
• Pipeline launches: ~5 million sq ft; ~Rs 7,800 crores this year.

Balance Sheet & Cash Flow

• June 30, 2026: gross debt Rs 9,189 crores; cash Rs 959 crores.
• Net debt Rs 8,229 crores; net debt/equity 2.0x.
• Debt refinanced this quarter: Rs 1,800 crores; annual savings Rs 55 crores.
• Weighted average cost of borrowing ~11% p.a.; down 200 bps since listing.
• Total debt refinanced since IPO: ~Rs 5,300 crores.
• FY27 end net debt around FY26; net debt/equity to improve on profits recognition.
• Target: complete around 15 million sq ft of ongoing projects in FY27-FY29.

Guidance & Outlook

• FY27 pre-sales target Rs 6,500 crores; ~23% growth over FY26.
• Net debt end-FY27 around FY26; debt/equity to improve on profits recognition.
• Completion of around 15 million sq ft across FY27-FY29; revenue/profits recognized over three years.
• FY27 completion target: 5.5 million sq ft.
• Pipeline launches ~5 million sq ft; Rs 7,800 crores this year.
• Finance-cost savings from refinancing: ~Rs 55 crores annually.
• Borrowing cost ~11% p.a.; further reductions contingent on refinancing moves.

Q&A Highlights

• Area sold up 48% in Q1; presales up 6% YoY due to project mix.
• Collections largely from older sold units; quarter-booking marginal.
• Debt trend expected to decline YoY; quarterly upticks possible due to capex.
• 35% of Q1 sales from new launches; full-year ~25% from new launches.
• Launches: Blossom next quarter; Estela 1 Tower and Hari Neketan this quarter; Ardene/Suman Nagar next quarter.
• Pricing trend: walk-ins and conversions positive; pricing stable and strong; magnitude known by Q2.

Appointment of Secretarial Auditors

• 38th AGM on August 3, 2026 approved five-year appointment of Rathi & Associates as Secretarial Auditors.
• Term from FY 2026-27 to FY 2030-31.
• Appointment fills casual vacancy in the Secretarial Auditor role.
• Annexure A provides the required details.
• Relationship between directors: Nil.

Meeting Details

• Date of call: August 04, 2026.
• Type & mode: group earnings conference call; audio recording.
• Purpose: discuss unaudited standalone and consolidated Q1 2026 results.
• Recording availability: on Kalpataru's Investor Corner website.

Meeting Details

• Date and time: August 04, 2026 at 10:20 IST.
• Event: Earnings Conference Call with Analysts and Investors (group).
• Mode: not specified.

Participants

• Key company participant: Company Secretary & Compliance Officer.

Purpose

• Discuss unaudited standalone and consolidated results for Q1 ended June 30, 2026.

Availability

• Investor Presentation and results were sent to exchanges on Aug 03, 2026 and uploaded on Kalpataru website.