Thank you, Iqra. Good morning, ladies and gentlemen.

Welcome to the Q3 and 9M FY '26 results call of Kalpataru Limited. We have with us today the management of Kalpataru Limited represented by Mr.

Parag Munot, Managing Director, and Mr. Chandrashekhar Joglekar, Director Finance and CFO.

I would like to state that any forward-looking statements made during the discussion today are based on our current expectations, assumptions, and projections about future events and are subject to risks and uncertainties beyond our control. With that, I will now hand over the call to Mr.

Munot for the opening remarks, post which we shall open the floor for Q&A. Over to you, sir.

Thank you, Advait. Good morning, everyone, and a warm welcome to you all.

Reflecting on our performance for the quarter, in Q3 FY '26, we recorded presales of ₹870 crore, representing a 14% year-on-year decline. However, our collections remained robust at ₹1,100 crore, reflecting a healthy 17% growth over the same period last year.

For the first 9 months of FY '26, our presales reached ₹3,447 crore, a 23% increase, and collections stood at ₹3,409 crore, marking a 30% increase on year-on-year basis. The relatively subdued presales performance this quarter was primarily driven by delay in launch of a couple of projects as a result of delayed regulatory approvals.

Consequently, we anticipate ending this fiscal year approximately 20% to 22% below our initial presales guidance and roughly 10% below our collections target. Turning to our portfolio, our portfolio comprises 29 projects with a total saleable area of around 41 million square feet.

Of these, 20 are ongoing projects with a saleable area of approximately 23 million [point?] square feet, of which about 10.3 million square feet has already been sold.

These ongoing projects represent a gross development value of nearly ₹34,600 crore, translating into future inflows of approximately 26,800. This includes both balance collections from sold inventory as well as the expected value of unsold units.

The MMR region continues to be our largest contributor, with 15 projects accounting for more than ₹23,000 crore of the total expected inflows. Pune and other markets contribute together around ₹3,800 crore.

In addition, our completed projects and forthcoming launches together add approximately ₹25,000 crore, taking total future inflows across the portfolio to about ₹52,000 crore. The strong visibility provides us with a solid foundation for sustained growth, healthy cash flows, and further balance sheet strengthening going forward.

During quarter 3 FY '26, we launched two towers of our Thane project, Eternia, at Kalpataru ParkCity, with a total saleable area of approximately 0.48 million square feet. Kalpataru One Worli continues to demonstrate momentum.

While we have officially launched two towers, construction is proceeding at full scale across all three, ensuring timely delivery of this landmark development. As Worli solidifies its position as Mumbai's premier luxury real estate destination, Kalpataru One stands at its epicenter.

During 9 months FY '26, we have handed over 2,000 apartments to customers, demonstrating our strong execution delivery capabilities. We are now entering a major delivery cycle.

At the time of listing, we had approximately 24 million square feet ongoing projects. Out of this, we had planned to complete 10 million square feet in FY '26-'27.

Post listing, 3.52 million square feet is already completed by December 2025, which includes Kalpataru Magnus in Bandra, tower A and B at Srishti Nama in Mira Road, and the last two towers of Immensa at Kalpataru ParkCity, Thane. We will end FY '26 with completion of 4.25 million square feet.

Similarly, remaining approximately 6 million square feet will also be completed in FY '27. These are high-margin projects, and the revenue for these will be recognized in FY '26-'27.

This provides us clear visibility of operating cash flows resulting into debt reduction and at the same time profit recognition leading to considerable improvement in debt-equity ratio. Further, another 10 million square feet would be majorly completed by FY '28.

On the business development front, we remain focused on evaluating high-potential opportunities in redevelopment, JVs, JDs, and plotted development, primarily across the MMR and Pune markets. Our approach is highly disciplined as we selectively pursue projects that align strictly with our internal return thresholds.

In FY '27-'28 itself, we will be launching approximately 9 million square feet projects. These are projects which form part of our forthcoming portfolio as well as new projects in pipeline.

Almost all of these projects are in MMR and Pune. As we navigate our journey as a newly listed entity, we remain firmly anchored to the longstanding principles that define Kalpataru for decades: integrity, innovation, and a commitment to excellence.

These values are the bedrock of our operations and continue to guide how we create value for all our stakeholders. With that, I would like now to hand over the call to Mr.

Chandrashekhar Joglekar for a detailed update on our financial performance. Over to you, Joglekar.

Thank you, Parag. Good morning, everyone, and welcome to our Q3 FY '26 earnings call.

Let me start with the financial update for Q3 as well as 9 months of FY '26. We reported revenue from operations of ₹505 crore for Q3 FY '26 against ₹588 crore of the same quarter last year.

This number of 9 months FY '26 was ₹1,742 crore, a year-on-year increase of 7%. In Q3 FY '26, our adjusted EBITDA stood at ₹119 crore versus ₹205 crore in same quarter last year.

This converted to an adjusted EBITDA margin of 23.6%. On a 9-month basis, this figure stood at ₹413 crore versus INR 518 crore in the same period last year, translating to an adjusted EBITDA margin of 23.7%.

On the PAT front, in Q3 FY '26, we reported a loss of ₹67 crore, and this figure stood at a loss of ₹114 crore for the 9 months of FY '26. To reiterate what we had highlighted during our H1 FY '26 call, a majority of our revenue recognition for seven of our projects continue to be under the percentage completion method.

At the same time, for certain projects that commenced after April 22, April 2022, the company follows the project completion method of revenue recognition. As a result, revenue from 13 such projects will be recognized only upon receipt of the occupation certificate for these projects.

However, the associated costs, including marketing expenses, corporate overheads, and other administrative expenses continue to be expensed out in the respective period of having spent on a time cost basis. Q4 FY '26 is expected to record considerably higher revenue from operations and corresponding profitability as compared to the first three quarters of FY '26 due to expected completion of few of the projects following project completion method of revenue recognition.

Several of our key projects, including Kalpataru One at Worli, Kalpataru Amare at Juhu, Kalpataru Vivan at JVLR, Kalpataru Adwait at Borivali, Kalpataru Blossoms at Sinhagad Road, Pune, Kalpataru Prive and Azuro in South Mumbai, have witnessed healthy sales momentum. All these projects are following the project completion method and have different timelines for completion, and accordingly revenue from these developments will be recognized in the coming years in line with their completion timelines.

Turning to our balance sheet position, as of December 31st, 2025, our gross debt stood at ₹9,171 crore, while cash and cash equivalents were ₹901 crore, resulting in the net debt of ₹8,269 crore. Consequently, our net debt-to-equity ratio stands at 2.1x at December 2025.

We expect this metric to further improve in the periods ahead as several of our projects, as stated earlier, start receiving OC and their revenue getting recognized along with their profits. We are also actively evaluating refinancing opportunities to further optimize our cost of borrowing.

This is expected to enhance overall capital efficiency and support long-term profitability as we continue to scale our operations. Post IPO, we have refinanced or got the rate reduction for facilities of approximately ₹2,700 crore, achieving a delta of approximately 3.65% in the interest rates, translating into annualized saving of approximately ₹100 crore.

By end of FY '26, we expect to further add to this ₹2,000 crore of borrowings for the reduction of cost on the account of interest due to refinancing or rate reduction. As mentioned by Mr.

Parag, due to factors beyond our control, we were unable to launch certain projects as was envisaged in the beginning of the year. As a result of this, we are going to end the year with a presales and collection numbers lower than our initial estimate or the guidance.

Correspondingly, our net debt number for the year also may go up marginally compared to our initial guidance. In closing, while regulatory delays have impacted our launch timelines and led to a deviation from our initial presales and the net debt guidances, I want to assure all the stakeholders that our operational liquidity remains strong, all ongoing projects are financially closed, and the construction is proceeding at a full speed.

With that being said, we would like to open the floor for the question and answers.

Good morning, everyone. Thank you for the opportunity.

The first question, if you just walk through the cash flow for the 9 months. We have the collections number, but if you could share the construction spend, the approval BD spend, and the interest cost for the 9 months, that is the first question.

Yeah. Yes, Mr.

Adhidev. For the first 9 months—hello?

Hello, yeah. I can hear you.

Yeah.

Yeah.

For the first 9 months, the construction cost, as well as the other costs related to construction, etc., spent was ₹2,256 crore. The sales collections, the inflows were of ₹2,849 crore, including rentals and other income.

Okay.

Okay.

I think you were asking about the interest cost also?

Sir, interest cost and on BD spend also for any new projects you have added during the 9 months. Yeah.

Yes. Firstly, on the interest cost, we have had incurred an interest cost of ₹900 crore for the first 9 months.

On the BD spends, there hasn't much been spent on the business development. However, around ₹100 to ₹120 crore were spent on the BD, the new business development.

Sure. The second question is on your guidance for the debt number.

You mentioned on the sales and collection numbers, you have mentioned the reason why you have cut the guidance. Sir, now we are at ₹8,300 crore almost all of net debt, and we have a guidance of ₹7,300 crore, right, for March.

Could you help us walk through this ₹1,000 crore, how are we going to broadly make up for that in this fourth quarter? Or is the debt number a little different from the ₹7,300 crore you had initially guided for the closing debt for the year?

Adhidev, you are right. Initial guidance given at the beginning was higher number of sales revenue and therefore higher number of sales collection, which is lowered now.

Just now we have mentioned that, and therefore the corresponding impact on the debt will also come. The debt which was earlier mentioned, the net debt was around ₹7,300 crore we would be ending the year with FY '26.

It could be higher by around ₹6 to ₹700 crore. It could be around ₹8,000 crore, the net debt.

Okay. You're saying ₹8,300 would get to around ₹8,000 crore by the end of the

Yes.

Okay.

Yes. Remaining 3 months.

Correct. Yeah.

Sir, and my final question is on competitive intensity, right, both in Worli and Thane, right? Obviously, Thane we are aware a lot of other developers also there, but also in Worli, right, we have seen a lot of these luxury segment launches, right, also happening, right, by peers as well.

In the context of overall health of the market and overall sales velocity, footfalls, or conversions, right, could you give us an overall flavor of how the overall market trends are shaping up? On the demand side.

Sure, Adhidev. For both Thane and for Worli, we are witnessing a very strong footfall.

Thane remains a strong market even though there are a lot of launches happening, large-scale developments where townships and all see a strong footfall. In the last 3-4 months, we have seen the footfall only increasing, and sales velocity slowly, slowly ramping up for us.

We are completing many units out there. We've handed over more than 1,500 units in the last 6 months in Thane itself.

In Worli also, even though there are launches, Worli's has become a most premium location of SoBo, and there is a great footfall, and the construction is going well, and we are getting great momentum in Worli. We don't see any reduction in actually footfalls at any of our other sites also.

Okay. Fine, sir.

Sir, and just looking on the pricing front, right, what are the sort of like-for-like price increases you would have taken YTD in the 9 months across our projects? Or in terms of percentage, any number you would have handy?

About 7% to 10% increase we have done on average across our all the projects.

Okay, 7% to 10% is the number. Okay.

Fine, sir. That's it from my side.

I'll come back in the queue if I have more questions. All the best.

Thank you.

Thank you, Adhidev.

Hi, thank you for providing the opportunity. Sir, when I go through the presentation and when I see presales has gone 14% below, more than the area sold, it's more about the average realization, which has gone 13% down.

Is it because of the composition mix or is it because the demand has a bit softened, and so there's a bit of a price cut that we're offering? Just can you help me with that?

Yes, Bhavin. You rightly said this average realization depends on the composition mix of the projects.

The projects from the South Mumbai have a higher average realization as compared to the rest of the suburbs, etc. It depends from period to period.

The composition In

this quarter, the composition mix was such that it looks lower.

Yes.

Okay. Got it.

Second, sir, just wanted to understand, sir, I don't know, maybe I would have missed it, but just wanted to understand what is our strategy going forward with respect to the composition? How should we see whether there will be an increase in the JD, JDA, or redevelopment, or would it be still the going at the own land, composition will be more?

How we should see it in terms of going forward?

Hi. If you see our portfolio, a majority of portfolio is own land at present,

and

that's all really paid for. Now for the future pipeline what we're creating is we're mostly looking at JV, JD, and redevelopment.

As in Mumbai, the redevelopment phase is a strong phase going on, and this will last for the next 3-4 years where nice parcels you can get to do for redevelopment in multiple different types of cluster redevelopment or other types. It's the right time to look at JV, JD, redevelopment at this moment, while as we have a own portfolio already in our book.

Right. Sir, most of the developers have the similar strategy, increasing the share of JD, JDA.

Do you see the aggressive competitive intensity in the redevelopment or JD, JDA? How are you seeing are the return metrics going to get impacted?

How should we see it going forward?

Two things: we have our own internal return metrics for which we go for. Also, the portfolio what we take is we take usually larger redevelopment projects where competition is less.

Thirdly, having an experience of more than 15 to 18 years of redevelopment projects, we get a preferred choice by a lot of societies that they would prefer giving over the development to people who have been established and been there. We will only take projects if it hits our internal ratio.

Okay. Understood.

Sir, just last thing with respect to the composition of the sustenance sales and the new launches sales. Currently, we have inventory of around ₹5,000 crore, right?

Currently we have the of around ₹46,000 crores, something like that. Sir, how do we see going future, say, down the line 2 to 3 years, what are our expectations in terms of the composition, right, with respect to the sustenance sales and the new launches?

Because at times we have seen the inventories get consumed as soon as the launch is done, and then if there are no launches, then in the subsequent quarters, there are hardly any sales. Does the company have any strategy with respect to the composition of to maintain the sustenance sales as well as the new launches sales?

Thank you for the question. Yes, we have a strategy to have a right mix of launches and sustenance sales, and that's why we said in FY '27-'28, we will be launching approximately about 9 million square feet.

These are a mix of ongoing, forthcoming projects which we have in our book and the pipeline we'll create.

Okay. That is FY '27 and '28.

Right.

Any long-term plan to have a certain target mix?

Because we're in multiple geography, multiple suburbs of Mumbai and all, we get a right mix of sustenance and launches happening, depending on you're in a premium, aspirational, luxury. We map that out, and when we do our FY '27-'28 future planning, we take that into accordance.

Okay. Sir, last question from my side, I could have missed, but just wanted to what are the plans to ramp up our annuity business?

At this moment, we are not having a strong portfolio of annuity business to increase. We may be doing one project in Thane, which will increase the annuity.

Other than that, mostly we are doing residential developments because that's the demand.

Got it. Thank you for providing the opportunity.

Good morning to the team. I have two questions.

My first question to Mr. Parag is looking ahead, how do you see Kalpataru balancing between expanding project launches, ensuring timely execution, and protecting the profits as customer demand and competition evolves in the real estate?

What will guide your decisions on which of these areas should get the strongest focus in the coming quarters? That's my first question.

I'll ask my second question after this. Thank you.

Hi, good morning. Thank you for the question.

We definitely have to keep our operation and construction execution is key as we have a large portfolio which is ongoing at this moment and which we are going to be also launching. Operation has to increase, and as we had told that we have completed and handed over more than 2,000 apartments in the 9 months of FY '26, and we continue to increase that number over the next 2 years.

In addition to that, we will in all our projects have either phased launches happening or a few of the new redevelopment projects launches. Both will have its own focus in the FY '27 and '28.

Thank you. My second question to Mr.

Joglekar is as Kalpataru planned for the next few quarters or say for the next 2 years, what financial signals or metrics will be most important in guiding the decisions on cost control, cash flow management, and capital allocation for the new upcoming projects? How do you see these particular levers shaping the company's ability to protect the margins and deliver a sustainable value in the real estate business?

Thank you.

Thank you. Yes.

For going forward, as we have already said, our capital structure would be as light as possible because we have enough of portfolio as well as the pipeline on the basis of ongoing as well as forthcoming projects for which the lands are already being paid. Therefore, the debt represented in the balance sheet is basically the cost which is incurred on all these projects which are ongoing and forthcoming.

Therefore, there won't be anything required to be spent onto the acquisition or land of this pipeline projects. Point number one.

Therefore, the cash margins going forward out of the sales realization as well as the sold inventory is going to be higher. On the new business development, the strategy would continue to be, as mentioned earlier, in MMR as well as Pune and joint developments, joint ventures, redevelopment because they are capital-light models and high-margin models in the range of 25% of IRR-plus.

That will continue, and that will keep adding to our portfolio, which Mr. Parag mentioned in the earlier narrative that around 9 million square feet will be launched over FY '27 and FY '28, and most of them will be of the MMR region.

Yes, sir. Please go ahead.

I thought you are done. Hence, I said.

Please go ahead.

Far as the cost controls are concerned, as I said earlier that the land stands already paid. Only the execution, construction, and the approvals related cost and overheads will continue to happen, and that will go in the normal pace with normal escalation or the inflation.

Thank you, and best wishes.

Thank you.

Hi. Thank you, sir.

Thank you for the opportunity. Sir, two questions and one clarification.

Clarification is my first. You have said that the 7% to 10% price hike you have taken, but in how many months you have taken this across?

Hello?

Hi, Varun. They had asked in this FY '26 what is the price hike you have taken from the beginning, and that's what we answered, that average across projects is about 7% to 10% price rise.

In the 9 months you have taken, right, sir?

Huh? 9 months.

In the 9 months you have taken. Cool, sir.

Sir, secondly, now my two questions are like this. What's the inventory level have project-wise, if you can say?

The second question is this, that since you are saying that in the last 3 to 4 months, footfalls was very strong, what was the conversion rate if you can throw some light on the same, sir? That would be all.

Thanks, sir.

On the inventory numbers, project by project, maybe we will get back to you with the data because we have 30 projects ongoing. As far as what was the other question, see?

The conversion. The footfalls have been good, and our conversion rate ranges between 5% to 8% different projects, locations, and we have had a good conversion rate over the last few months also.

No, ma'am. Thank you so much.

Hi, sir. Good morning.

Thanks for the opportunity. My first question is on slide 18, you have mentioned the total future inflows are about ₹52,000 crores.

Could you help me with the OCF margin or the surplus that you are estimating out of this number? The second question is we have seen a subvention sort of a scheme being launched for Worli.

Will that affect your collection numbers going forward? Thanks.

Those are my two questions.

Hello? Your question is understood.

The first question is about the future inflows which you have mentioned and the margins on those future inflows. As we mentioned earlier, all of these future inflows, except only the new business development GDV which is part of this future inflows, except for that, which is quite minor, except for that, everything everywhere the land is paid.

Most of these projects are MMR projects, the average realization can be on the same lines of what we have today. The margins are going to be reasonably higher since it is going to be a cash margin, cash flow margin.

Far as the Worli-related question, Mr. Parag will take over.

Hi, Sumit. On the Worli-related, we have mapped the cash flow requirements and then taken this subvention scheme.

As the land price is fully paid, and it's the only construction and the premium payments, which with this subvention scheme will also do fine. It's for a limited number of inventory.

Okay. Any sort of target number you have for the subvention before you close it off, let's say 30%, 25% of the inventory, or you are yet to decide on that?

I think we're yet to decide. There's a good demand for that, we'll see.

Sir. That's all from my side.

Thank you, and all the best.

Thank you, sir.

Good morning. Am I audible?

Hi, I just wanted to check on the launches [unclear]

Okay. Is this better?

Yes, okay. I was just wanting to check on the launches, what kind of [unclear]

Okay. Am I audible?

Okay. I just wanted to check what kind of regulatory approvals led to the delay in launches in Q3 and where are we in those regulatory approvals right now?

Yes, Mr. Gupta.

We had the environment approval we need to take, which got delayed, but now it's in line, and in the next 2 months, we should get the approval that delayed our project at Lokhandwala, which we had anticipated about ₹700 crore sales in this year's guidance. That should get through now in the next 2 months, and in the first quarter of FY '27, we should be launching that.

Understood, sir. Sir, my second question is that in addition to the Lokhandwala launch, what are the big launches that we have stacked up in fourth quarter of FY '26 and in FY '27?

What are the big ones?

If you see our presentation on page number 19, we have given which are the launches for FY '26. Out of that, we have already launched Kalpataru Aria Residences, the Estella.

Only the other two towers of that has to be launched in quarter 4 or one of the two towers has to be launched in quarter 4 of FY '26. Srishti Nama we have launched.

Eternia we have launched. Other than that, we don't have any other launches in quarter 4 FY '26.

Understood, sir. Anything big in FY '27 that's coming?

Yes, in FY '27, we have few projects which we will give the details in the next call.

Understood, sir. Thank you so much.

Thank you to all the participants for joining our results call. We look forward to regularly interacting with you all.

In case of any further questions, please feel free to reach out to our investor relations or the EY team for clarifications. Thank you once again.