Keystone Realtors Ltd, the Mumbai-based real estate developer operating under the Rustomjee brand, reported its highest-ever quarterly presales in the first quarter of FY26 despite a sharp drop in net profit.
The company achieved presales of ₹1,068 crore in Q1FY26, marking a 75% year-on-year increase from the same period last year. This performance reflects a strong sales pipeline across the Mumbai Metropolitan Region (MMR), where Keystone remains active in both luxury and redevelopment projects. However, the higher sales did not translate into earnings growth, as the company’s consolidated net profit fell 44% to ₹14.51 crore from ₹25.82 crore in Q1FY25.
Total income for the quarter declined to ₹288.64 crore from ₹437.20 crore a year ago. According to Chairman and Managing Director Boman Irani, the decline in reported revenue and profit was largely due to the accounting method applied to ongoing projects. Keystone has been using the project completion method, which delays revenue recognition until project delivery. The company has begun shifting some new projects to the percentage of completion method, which will allow revenue to be booked progressively and is expected to present a more accurate view of financial performance.
Keystone’s debt position remains stable. The company reported zero net debt, with gross debt standing at over ₹300 crore. It also noted an improvement in credit ratings, moving from ‘A’ to ‘A+’. The quarter saw multiple large-scale project launches, further adding to its development pipeline.
As of June 30, 2025, Keystone Realtors has completed 37 projects, delivered over 26 million square feet of construction, and is currently building 18 projects. Its active pipeline includes more than 47 million square feet of upcoming development, primarily concentrated in the MMR market.
The company remains a prominent player in Mumbai’s redevelopment sector. Recently, it added three redevelopment projects worth ₹7,727 crore to its portfolio and announced plans to redevelop eight housing societies in Andheri West, targeting revenue of around ₹3,000 crore from those projects.
Management maintains a positive outlook for the MMR real estate market, pointing to continued demand in both the luxury and mid-income housing segments. Boman Irani emphasised the strategic benefits of Keystone’s asset-light business model, which focuses on partnerships and joint development agreements rather than land purchases. This approach, along with strong vendor relationships, a customer-centric delivery track record, and regional expertise, is expected to sustain growth momentum.
Keystone also plans to leverage technology to enhance project execution and sales efficiency, while expanding selectively beyond Mumbai. The company sees redevelopment as a key driver of future growth in the city for the next two decades, underpinned by the shortage of new land parcels and the aging housing stock in prime locations.
Despite the profit decline in Q1FY26, Keystone Realtors’ record presales signal robust market demand and the potential for revenue and earnings to recover as its ongoing and newly launched projects progress under the revised revenue recognition model.
