Growth delivery stalled by war costs; pipeline remains solid

Delivered ₹58.3 Cr; YoY growth of 27.92% vs Q1 FY26 ₹45.54 Cr

Delivered ₹8.6 Cr; YoY of 25.81% vs Q1 FY26 ₹6.79 Cr

Delivered OPM 19.1%; claim of compression to 19.8% is accurate

EBITDA margin 11.65/58.26 = 19.98% ≈ 20%, aligns with delivered 19.1% OPM

Delivered QoQ revenue growth 13.1%

Delivered QoQ PAT growth 94.8%

War impact on procurement and logistics is factual; margin recovery dependent on normalization

Claim is forward-looking; no delivered data yet; contingent on conversion

Prior: 'return to previous margin levels' implied 22%+. Delivered: 19.1% OPM. War-driven but recovery timeline unclear.

Added Neel Kiran (Santacruz); pursuing 2–3 more in FY27 vs prior pipeline of ~5 upcoming. Faster clip.

Expanded from western zone (Kandivali, Borivali) to Santacruz, Khar, evaluating Parle & Ghatkopar (eastern suburbs).

In good position in 2–3 development stages (top 3 category). Can't guarantee exact count; tender process unpredictable.

Pricing stable, project-specific. No major volatility. Well-connected areas with good amenities maintain strong rates.

No issues. That has been long gone. No operational challenges across projects.

Demand still there. Bombay is financial capital; demand won't dry up. Supply increased due to govt clarity on MHADA/SRA lands.

Percentage completion method, Ind AS compliant.

Launching of new projects & completion of projects (Rashmi Celestia completed Q4; inventory ready to move in). Rashmi Signature & Square nearing completion stages (less project risk, higher sales).

Expanding into all sectors of Bombay. Expanded to Khar. Tender processes ongoing in Parle. Discussions for Ghatkopar. Nothing finalized yet; takes time.

Major focus is timely delivery. 200 families per project completion = 200 word-of-mouth ambassadors. Customer satisfaction is brand development for us.

No challenges currently. War subsided (was an issue in April-May, now over).

Major hit from war. Material costs, panic buying, labor shortages spiked. Has stabilized now. Expect this quarter to be on track with prior showing. First quarter took hits; no major differences ahead.

Every project has different feasibility. Various redevelopment schemes now exist. Healthy margins of 20–30% expected on every project.

Four projects' GDV nearly ₹800 Cr. Rashmi Paradise starting Q2, Rashmi Gold & Sheetal Q3, Khar Q4. Govind Dalvi on hold (govt stay, 500m section). Projects starting this year.

A little below. Both projects were at completion stage when war hit; had to procure during war. Margins will be a little hit, but nothing major. Over 2–2.5 year timeline, margins not majorly hit.

Haven't thought through yet. Every project has different economics. Can't plan everything beforehand. Management hasn't thought into this as of now.

GDV of upcoming projects ~₹800 Cr. If maintaining 19–20% margins as we do, profitability will be on those lines.

Every market different. Kandivali, Borivali have larger homes. Market responds to how you market. Demand exists for both luxury and economical segments.

Rashmi Square ~80% booked. Rashmi Signature 63–70% booked (stated as 65% also). Exact remaining details not on hand.

Rashmi Square 80% sold. Rashmi Signature 50%, Rashmi Delight 40%, Manorath 20–25%. Rashmi Avenue & Icon just started, no hardcore selling.

Good opportunities ongoing. Skeptical into projects. Probably taking 2–3 projects this year.

Do the basics right. Focus on project completion. Small, tight management; fast decision-making. Weekly site visits by management. No lapses or delays.

Spending on digital presence, brand positioning. New initiatives: investor meets, channel partner meets, broker meets, sales lounges. Brand now recognizable across sectors.

Dependent on tender process timelines & society approvals. Pipeline includes Rashmi Paradise (Q2), Gold/Sheetal (Q3), Khar (Q4), + 2–3 more.

Current 19.1% OPM reflects Q1 war-cost spike. Recovery expected as material costs & labor normalize. Prior guidance of ~22% margins implied recovery toward end-FY27.

Each project has different capex footprint. Asset-light model minimizes balance-sheet capex; majority funded from project cashflows.

War-driven spike in material costs (panic buying, labor shortages) hit Q1 OPM by ~300 bps. If geopolitical tension persists, margin recovery will delay.

2–3 new projects targeted for FY27, but tender process is unpredictable. No guarantee on number or timeline. ₹800 Cr GDV pipeline contingent on conversions.

Small, tight management team scaling to 25+ projects. Weekly site visits and fast decision-making are strengths, but scaling complexity risk remains.

Supply of new residential projects has increased (govt clarity on MHADA/SRA lands). If demand dries up or pricing power erodes, revenue growth could stall.

Prior guidance implied 22%+ margins; delivered OPM 19.1%. Management claims recovery 'this quarter', but if war costs persist or project mix deteriorates, margin miss could extend.