Raymond Realty Limited incorporated a wholly owned subsidiary, Ten X Mahalaxmi Limited, on August 12, 2026, to pursue real estate redevelopment projects. The move followed board approval on August 7, 2026, and aims to isolate project-specific risks associated with large-scale redevelopment by ring-fencing these activities within a separate legal entity. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The board meeting that approved the initiative commenced at 4:00 am and concluded at 5:30 pm. Directors authorised an initial subscription of ₹1,00,000 as the paid-up capital for the new entity, allowing Raymond Realty to maintain full control while limiting immediate capital exposure.

Subsidiary details

Ten X Mahalaxmi Limited is registered with the Registrar of Companies in Mumbai, Maharashtra, and operates exclusively within the real estate industry. Raymond Realty and its nominees have subscribed to all shares in cash upon incorporation, ensuring 100% ownership. The entity currently reports nil turnover and has not commenced business operations.

The transaction does not involve any related party interests, and no additional governmental or regulatory approvals are required beyond standard incorporation procedures.

Strategic rationale

The creation of a dedicated vehicle for redevelopment projects reflects a risk-managed growth approach for Raymond Realty. Redevelopment projects often face extended timelines due to regulatory clearances, tenant rehabilitation, and construction complexities. By segregating these assets into Ten X Mahalaxmi Limited, the parent company can manage cash flows and liabilities more effectively without impacting the financial stability of its other operations.

This approach aligns with industry practice where developers use special purpose vehicles (SPVs) for individual high-value projects to contain risk and attract specific financing. The initial modest capital outlay indicates that significant funding requirements will be addressed through subsequent capital calls or project-specific financing once development commences.

Raymond Realty reported a robust financial performance for the first quarter of FY27, with consolidated revenue from operations rising to 5.27B rupees from 3.7B rupees in the same quarter last year. EBITDA surged to 612M rupees from 236M rupees year-on-year, while EBITDA margin expanded to 11.61% from 6.33%. The Mumbai-based real estate developer attributed the growth to strong demand across its premium brands and a disciplined execution of its asset-light strategy. Consolidated net profit stood at 134M rupees for the period, compared to 165M rupees in the same quarter last year.

The Board of Directors, led by Managing Director Harmohan Sahni, approved the unaudited financial results on August 07, 2026. The results were reviewed by statutory auditors Walker Chandiok & Co LLP and Chaturvedi & Shah LLP pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company operates under a single business segment identified as 'Real Estate' per Ind AS 108.

Financial Performance

Consolidated revenue from operations reached 5.27B rupees in Q1FY27, up from 3.7B rupees in Q1FY26. Standalone revenue from operations was ₹2,398.9 million, compared to ₹3,130.6 million in the previous year's corresponding quarter. The divergence between standalone and consolidated figures highlights the significant contribution from subsidiaries included in the group accounts.

The following table summarises the key consolidated financial metrics for the quarter:

EBITDA margins improved to 11.61% from 6.33% in Q1FY26. Management noted that margins fluctuate based on project phases, with initial profitability impacted by marketing and construction setup costs. The company remains on track to meet its FY27 EBITDA margin guidance of 17%–19%.

Operational Highlights

Raymond Realty secured a booking value of ₹700 crore in Q1FY27, marking a 129% increase from ₹306 crore in Q1FY26. This growth was driven by strong sales across its Ten X, The Address by GS, and Invictus by GS brands. Customer collections rose 47% year-on-year to ₹550 crore.

The company's total portfolio Gross Development Value (GDV) now stands at approximately ₹52,000 crore. This includes a 100-acre land parcel in Thane with a revenue potential of ~₹25,000 crore, of which ~₹9,400 crore has already been sold. Additionally, the JDA portfolio comprises eight projects with a combined revenue potential of ~₹27,000 crore.

Strategic Portfolio & Liquidity

A key strategic shift involves the company's pivot to an asset-light model through Joint Development Agreements (JDAs). Recent signings include projects in Kandivali (₹3,000 crore) and Parel (₹8,500 crore). Four JDA projects have already been launched in Bandra, BKC, Wadala, and Sion, representing ~2.8 million sq. ft. of RERA carpet area.

Liquidity remains prudent, with a net debt of ₹824 crore and a debt-to-equity ratio of 0.7x, well below the company's ceiling of 1.0x. Raymond Realty maintains a liquidity buffer of ₹271 crore, sufficient to fund construction spends for the next year. The cost of debt remains stable at ~9.60%.

What the Numbers Show

The surge in EBITDA from 236M rupees to 612M rupees outpaced revenue growth, indicating operational leverage and an optimized product mix. However, consolidated net profit declined to 134M rupees from 165M rupees year-on-year, suggesting that non-operating expenses are currently offsetting some of the margin gains at the bottom line. The substantial booking value growth of 129% provides visibility for future revenue recognition, supporting the management's guidance for ~20% revenue growth in FY27.