Raymond Realty: consol PAT down 12% YoY to ₹53 Cr as finance costs jump 70%

Raymond Realty's consolidated PAT for Q2 FY27 came in at ₹53.06 Cr, down 11.8% year-on-year from ₹60.18 Cr, even as consolidated total income grew 7.3% YoY to ₹757.49 Cr (revenue from operations ₹748.52 Cr, +7.5% YoY) and EBITDA rose 14% YoY to ₹115 Cr with margin expanding to 15% from 14%. The gap between a growing operating line and a shrinking bottom line sits almost entirely below EBITDA: consolidated finance costs jumped 70% YoY to ₹43.5 Cr (from ₹25.6 Cr), pulling PBT down to ₹66.3 Cr (-6% YoY) and PBT margin to 8.8% from 9.9%. There are no exceptional items in either period, so this is a clean decline, not a one-off distortion. QoQ the numbers look dramatic — PAT up 295% and revenue up 42% versus Q1 FY27's ₹13.43 Cr PAT and ₹526.67 Cr revenue — but that reflects real-estate revenue recognition tied to project completion/possession timing (Q2 saw the OC for Address by GS Season 1 Tower B, 270 units) rather than a step-change in run-rate, and should not be read as momentum. On a standalone basis the divergence from consolidated is wide enough to flag: standalone revenue from operations fell 28.6% YoY to ₹279.95 Cr and standalone PAT fell 28.9% YoY to ₹41.55 Cr (EPS ₹6.24 vs ₹8.77) — far sharper declines than the consolidated print. That's because a growing share of Group revenue now sits in subsidiary/JDA entities (the Ten X Realty companies, Rayzone Property Services) that consolidate into the group but don't flow through the parent's standalone books; readers comparing only the standalone number would see a materially weaker quarter than the consolidated figures show. Consolidated net profit margin compressed to 7.0% from 8.5% YoY (H1 NPM ~5.1%) even as EBITDA margin expanded — the squeeze is a financing-cost issue, not an operating-cost one, with debt servicing on construction and land-parcel borrowings currently outrunning EBITDA gains. Management's FY27 guidance, restated in today's press release, targets ~20% pre-sales growth, 17-19% EBITDA margin, 9-10% PAT margin and ~20% ROCE, with debt/equity under 1.0x. Against that: pre-sales (booking value) nearly doubled YoY to ₹902 Cr (+98%) with H1 at ₹1,602 Cr (+111% YoY) — comfortably ahead of the 20% target — and collections rose 67% YoY to ₹682 Cr, while net debt of ₹912 Cr keeps debt/equity at 0.8x, within the ceiling. Profitability is running behind, though: Q2 EBITDA margin of 15% and H1 PAT margin of ~5.1% both trail the guided bands, which management attributes to upfront marketing and construction setup costs on newer projects normalizing over the year. We found no published analyst consensus for this specific quarter's revenue or PAT, so vs-Street is unknown. The quarter also carried capital-structure moves tied to the growth plan: the board approved raising ₹210 Cr via preferential warrants to ICICI Prudential AMC (cleared by shareholders at the October 8 EGM), and a subsidiary separately received a ₹210 Cr investment. CEO Harmohan Sahni framed the quarter as validating execution — "nearly doubling quarterly pre-sales without new launches" and a "67% surge in collections" — while reiterating full-year guidance; the numbers support the sales/collections claim but show the margin side of that guidance is not yet being met. The next two quarters carry a planned MMR launch pipeline of ₹4,100 Cr GDV (Mahim 1 and Mahim 2 JDA projects), which management expects to lift scale and margins toward the guided range — whether that pipeline lands on time and FY27 EBITDA/PAT margins actually close the gap to 17-19%/9-10% in H2 are the markers to watch.