Raymond Group is looking to nearly double its topline from its soon-to-be-listed real estate company to Rs 4,000 crore over the next five years.
“We are looking at a topline growth of 15% and Ebitda (earnings before interest, taxes, depreciation and amortisation) growth of 25% every year,” chairman and managing director Gautam Singhania said in an interaction with FE.
Raymond has demerged its real estate business and is looking to list it next month. It has already demerged and listed its lifestyle business.
Raymond Realty posted a profit before tax (PBT) of Rs 370 crore on revenue of Rs 2,313 crore in FY25, while the topline grew by 45.2%.
Singhania declined to comment on valuations of the real estate company and said that it would be done through “market discovery”.
Currently, Macrotech (Lodha) is the biggest developer in Mumbai with pre-sales of Rs 14,000 crore for FY25, followed by Prestige Estates and Oberoi Realty, which had pre-sales of about Rs 5,000 crore, a Raymond Realty presentation to investors said.
Mumbai has a share of 28% in total residential sales of 700,000 units a year in the top 10 cities.
Currently, Raymond Realty is debt-free at the net level. However, Singhania said it would be difficult to predict if the company would remain debt-free in the coming years. “We want to be a strong company with good financial discipline,” he said.
Though rating firms have predicted a slower growth in residential sales due to price rise, Singhania said the sales are doing well. “We are bullish about sales,” he added.
On residential prices, the Raymond Group CMD said that the rates have grown around 7-8% and will see a similar growth this year.
Raymond has a development potential worth Rs 25,000 crore in its Thane land and Rs 14,000 crore in its joint development projects. The joint development projects are expected to be 50% of annual pre-sales within two years. The company plans to launch two new projects on its own land in Thane and four new joint development projects in Mumbai in FY26, according to a company presentation.
In the fourth quarter of FY25, the company signed two joint development agreements – one in Mahim and another in Wadala in Mumbai, aggregating to a gross development value of Rs 6,800 crore.