Kolte-Patil Developers Limited has received a GST liability intimation of Rs 64.42 crore from the Office of the Assistant Commissioner of State Tax, Jurisdiction, Mumbai, Maharashtra. The demand, issued under Section 74/74A of the CGST/MGST Act, 2017, covers the financial years from 01-04-2020 to 31-03-2026 and includes interest and penalties. The company contends that the levy is erroneous and plans to pursue legal remedies to contest the demand.

The communication, received on 03 June 2026, pertains to the ascertainment of tax liability on specific activities. These include the purchase of Transferable Development Rights (TDR), construction services provided to society members under redevelopment projects, and development rights procured from society members in lieu of construction services. The authority has identified a penalty of Rs 6.95 crore within the total demand.

Financial Implications and Response

Based on its preliminary assessment, Kolte-Patil Developers believes the levy of GST, along with interest and penalty, is wholly erroneous and not sustainable in law. The company stated that the demand was raised without appreciating the facts of the case and is arbitrary and unjustified. Management has indicated that it will take appropriate legal action within the permissible timelines to defend its position.

The company does not envisage any relevant impact on its financials, operations, or other activities as a result of this communication. The disclosure was made to the exchanges pursuant to Regulation 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Breakdown of Demand

Kolte-Patil Developers Limited announced its audited financial results for the fourth quarter and full year ended 31 March 2026. The Pune-based real estate player reported a consolidated net loss of ₹380.8 crore for FY26, compared to a net profit of ₹1,093.3 crore in the previous year. Revenue from operations for the year stood at ₹734.96 crore, down from ₹1,717.38 crore in FY25. The company attributed the decline to the Percentage of Completion Method (CCM) based accounting and moderated revenue recognition.

Q4 Financial Performance

For the quarter ended March 31, 2026, the company reported a consolidated net loss of ₹142.9 crore, compared to a net profit of ₹662.9 crore in the same quarter last year. Revenue for Q4 FY26 was ₹248.61 crore, against ₹718.67 crore in the corresponding period of the previous year. On an EBITDA basis, Q4 FY26 recorded a loss of 60m Rupees, compared to a gain of 1.1b Rupees in the same quarter of the previous year. The board approved the results at its meeting held on May 22, 2026.

Operational and Collections Performance

Despite the muted profitability, the company achieved record annual collections of ₹2,689 crore in FY26, representing an 11% increase year-on-year. In Q4 alone, collections stood at ₹834 crore, up 18% compared to the same period last year. Sales value for FY26 reached ₹2,605 crore, while Q4 FY26 sales were recorded at ₹714 crore.

Price realization emerged as a key highlight, with the company achieving its highest historical realization of ₹9,601 per sq. ft. in Q4 FY26, a 21% year-on-year rise. For the full year, realization grew 7% to ₹8,314 per sq. ft.

Strategic Outlook and Updates

During the year, the company focused on capital deployment with discipline, acquiring projects with an aggregate Gross Development Value (GDV) of approximately ₹2,250 crore spanning 3 million sq. ft. The company noted that FY26 was a year of transition, marked by the onboarding of Blackstone as a 40% strategic partner. The board also approved a draft scheme of amalgamation for two wholly-owned subsidiaries, Kolte-Patil Lifespaces Private Limited and Kolte-Patil Smart Spaces Private Limited, subject to necessary approvals. Additionally, the board approved the re-appointment of Mr. Girish Vanvari as an Independent Director for a second term of five years from July 29, 2026, subject to shareholder approval.