Kolte-Patil Developers Ltd., a prominent real estate firm headquartered in Pune, with operations extending into Mumbai and Bengaluru, has reported a stellar second quarter for FY25. The company’s un-audited results for the half-year ended 30 September 2024 reveal a record-breaking performance in pre-sales and collections, marking a significant milestone in its growth trajectory despite some revenue challenges.

The company disclosed that its sales value for H1 FY25 soared to ₹1,481 crore, an impressive 11% increase year-over-year. Meanwhile, sales volume reached 1.99 million square feet, highlighting strong demand, particularly in the premium and mid-premium real estate segments. The real estate developer, which markets under the Kolte-Patil and 24K brands, noted that its H1 FY25 collections hit a record high of ₹1,162 crore, an 18% increase from the previous year, representing its highest-ever collections for a six-month period.

Unprecedented Quarterly and Half-Yearly Sales

Atul Bohra, Group CEO of Kolte-Patil Developers, attributed this record-breaking performance to the firm’s wide array of residential offerings that cater to diverse customer preferences. He pointed out that pre-sales in Q2 FY25 alone amounted to ₹770 crore, surpassing previous quarterly records. Bohra highlighted the significant role of the 24K luxury brand in achieving these figures, with premium properties contributing 30% of Q2’s pre-sales.

In his statement, Bohra emphasized the company’s leadership in the Pune market and reported that its flagship project, Life Republic township, continues to witness strong buyer interest. He also expressed optimism about the company’s future growth, given the launch pipeline planned for H2 FY25, which includes various projects across different micro-markets. “We are well-positioned to capitalize on sustained demand, especially as the anticipated interest rate softening could further boost buyer sentiment,” Bohra remarked.

Financial Performance Highlights: Mixed Results

However, Kolte-Patil’s Q2 FY25 results also indicate certain revenue pressures. Revenue from operations for H1 FY25 fell to ₹649 crore, down 15.6% from H1 FY24. Likewise, the company’s EBITDA dropped to ₹43.9 crore, marking a significant 53.6% decrease. Kolte-Patil reported a net profit of ₹16 crore for H1 FY25, down from ₹20.7 crore in H1 FY24. This drop in profitability has been primarily attributed to rising operational costs and competitive pricing dynamics in the market.

In Q2 FY25 specifically, Kolte-Patil’s revenue rose 55.6% year-over-year, reaching ₹308.3 crore, while EBITDA surged 364.7% to ₹16.2 crore. This quarterly boost reflects the company’s operational resilience and successful project completions in the face of industry challenges.

Market Positioning and Future Outlook

Founded in 1991, Kolte-Patil Developers has established a solid reputation for quality, transparency, and on-time project delivery, developing over 28 million square feet of residential, commercial, and IT spaces across India. With its roots in Pune, the company entered the Mumbai market in 2013, focusing on society redevelopment projects. Kolte-Patil has maintained a relatively low debt profile, with its long-term bank debt rated ‘AA-/Stable’ by CRISIL, reflecting its financial stability and prudent capital management.

The company’s growth is further bolstered by strategic partnerships with prominent financial institutions, including KKR, JP Morgan Asset Management, ASK Capital, among others. These alliances have supported Kolte-Patil in navigating economic shifts and expanding its presence in key markets. The Indian Green Building Council (IGBC) certification on multiple projects underscores Kolte-Patil’s commitment to sustainable development.

Expert Insights: Sectoral Tailwinds and Demand Surge

Industry experts suggest that Kolte-Patil’s record-breaking sales reflect a broader trend of heightened demand in the mid-premium and luxury real estate segments, particularly as urban buyers increasingly seek quality residences. Analysts believe that the anticipated softening of interest rates could further enhance demand for residential properties, especially in rapidly growing urban centres like Pune and Bengaluru.

With Kolte-Patil’s robust project pipeline and proven market adaptability, the firm is well-positioned to benefit from these tailwinds. The real estate sector as a whole is experiencing what many experts term a “demand renaissance,” bolstered by government support and increased investment interest.

As Kolte-Patil Developers looks toward the second half of FY25, Bohra and his team remain committed to maintaining their growth momentum. With a strong cash position, a diversified project portfolio, and a clear leadership stance in Pune’s competitive real estate market, Kolte-Patil is poised to close FY25 on a high note, delivering sustained value for its stakeholders.

  ASK Capital, Atul Bohra, Bengaluru, CRISIL, Indian Green Building Council, JP Morgan Asset Management, KKR, Kolte-Patil Developers, Life Republic, Mumbai, Pune