Keystone Realtors Q2 FY26 Earnings Results: Net Profit Plunges 87% to ₹8.55 Crore on Accounting Shift

Keystone Realtors Ltd, the parent company of Rustomjee, reported a steep 87% YoY drop in net profit to ₹8.55 crore for Q2 FY26. The fall was mainly due to the adoption of the percentage completion accounting method, replacing the earlier project completion method.

Chairman and Managing Director Boman Irani explained that since no projects were completed during the quarter, the company could not report fresh profits under the new accounting standards.

Revenue and EBITDA Impacted

The company’s revenue slipped 6.33% YoY to ₹499.3 crore, while EBITDA fell 64% YoY to ₹37 crore, reflecting the accounting transition’s short-term impact.

Sales, Collections, and Launch Updates

Despite lower profit, pre-sales rose 9% YoY to ₹763 crore, and collections increased 9% YoY to ₹601 crore in Q2 FY26. In the first half (H1) of FY26, pre-sales reached ₹1,831 crore (up 40% YoY) and collections stood at ₹1,177 crore (up 13% YoY).

The company launched one project during Q2 FY26 with a gross development value (GDV) of ₹949 crore, bringing total launches in H1 FY26 to ₹4,916 crore, which is about 70% of its annual target.

New Projects and Redevelopment Focus

In H1 FY26, Keystone Realtors added 3 new redevelopment projects worth ₹7,727 crore GDV, exceeding its full-year business development guidance. The company said these projects support its goal to remain a leader in the redevelopment segment.

Financial Position and Market Activity

Keystone’s gross debt stood at ₹588.2 crore, but the company remains net debt-free. During Q2, it raised ₹335 crore via non-convertible debentures and its promoters sold 3.63% stake to comply with SEBI’s minimum public shareholding norms.

Sequentially, the company’s revenue rose 83%, while profit dropped 41%.

Keystone Realtors Share Price Movement

Keystone Realtors share price (NSE: RUSTOMJee) closed at ₹535.00, up 0.075% on November 12, 2025. During the trading session, the stock opened at ₹534.15, reached a high of ₹544.95, and touched a low of ₹510.00. The company’s market capitalisation stood at ₹6,750 crore, with a price-to-earnings (P/E) ratio of 42.05 and a dividend yield of 0.28%. Over the past year, Keystone Realtors’ shares have traded between a 52-week high of ₹747.00 and a 52-week low of ₹480.05.

Read More:IndiGo Share Price Gains 3% on Nov 6 as Operational Performance Remains Steady in Q2 FY26 Results!

Conclusion

While Keystone Realtors faced a temporary setback in profit due to accounting changes, its strong pre-sales growth, new project pipeline, and robust collection figures highlight solid underlying demand. The company remains optimistic about meeting its FY26 sales and launch targets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.