Raymond Realty set for stock market debut; targets 20% margins, Rs 40,000-crore in upcoming projects

Singhania said the realty arm is targeting a topline growth of 15%, and an operating profit margin of 20%. It closed FY25 with a topline of Rs 2,300 crore from which it had earned a pre-tax profit of Rs 370 crore, Sahni said, adding the company also had a Rs 2,300 crore booking income in the same year which will be realized later.

Typically, the company will launch projects where units will sell Rs 1-5 crore range, though it may sell some projects with higher ticket sizes.

Singhania said the company has embarked on a journey as a focused, pure-play branded real estate firm. “With a firm emphasis on professional management, robust corporate governance, shareholder interest and transparency, we are well-positioned to achieve our long-term aspirations,” he said.

Raymond Realty is targeting a 30% increase in its sales bookings this fiscal year to Rs 3,000 crore on a strong launch pipeline of residential projects and robust demand, Sahni said, adding it looks to launch six residential projects this fiscal in the Mumbai Metropolitan Region, with an estimated revenue potential of about Rs 14,000 crore. Its total sales potential over the next five to seven years is Rs 40,000 crore, he added.

The company’s business model is powered by its 100-acre land bank in Thane and a low asset intensity expansion approach via joint development agreements in Mumbai’s premium locations such as Bandra, Mahim, Sion, and Wadala.

The Thane land bank itself holds a revenue potential of around Rs 25,000 crore, with 40 acres presently under development, and Rs 9,000 crore revenue potential. The remaining 60 acres is slated for future development with Rs 16,000 crore revenue potential over the next seven years.

These six joint development authorities in Mumbai provide an added gross development value of around Rs 14,000 crore. This would ensure healthy profitability and cash flows without stressing the balance sheet, as the real estate firm is primarily responsible for construction.