Keystone Realtor Q2 FY27 Results (NSE: RUSTOMJEE)
Signal: Revenue declined
The read
Q2FY27 marks a sharp margin inflection, with operating margin rising to 29.4% from 12.8% YoY after three quarters of margin contraction in the prior series, but the ₹10,075 lakh PAT is not yet purely operating-led because ₹7,324 lakh came from associates and joint ventures while revenue remained flat YoY at ₹49,669 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹496.69 Cr | -0.5% | +5.6% |
| Net profit | ₹100.75 Cr | +919.3% | |
| EPS | ₹7.92 | +1,064.7% | |
| EBIT margin | 29.4% |
P&L walk
Revenue was ₹49,669 lakh, -0.5% YoY and +5.6% QoQ; operating margin expanded to 29.4% from 12.8% as construction cost and inventory movements were favorable relative to revenue, but PAT growth was dominated by ₹7,324 lakh of associate profit.
Segments
The group reports a single real-estate segment; the key swing factor was associates and joint ventures, whose contribution moved from a ₹43 lakh loss to ₹7,324 lakh profit and lifted consolidated PAT far more than the ₹259 lakh YoY revenue decline.
Key positives
- Operating margin expanded to 29.4% from 12.8% YoY and 19.1% QoQ, the second consecutive quarter of sequential margin expansion.
- PAT increased to ₹10,075 lakh, +919.3% YoY, while basic EPS rose to ₹7.92 from ₹0.68.
- Interest coverage improved to 3.57x from 2.92x YoY and 2.42x QoQ, while debt-equity remained moderate at 0.51x.
Key concerns
- Revenue was ₹49,669 lakh, down 0.5% YoY, so the large earnings increase was not supported by top-line growth.
- Associate and joint-venture profit contributed ₹7,324 lakh versus a ₹43 lakh loss last year, making consolidated PAT materially dependent on non-operating investee earnings.
- Operating cash flow remained negative at ₹19,038 lakh outflow for H1FY27 despite ₹15,312 lakh of reported H1 PAT.
- Finance costs rose 102.4% YoY to ₹3,181 lakh, indicating continued funding-cost pressure.
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