Keystone Realtors gets 'IND A+/Positive' credit rating for bank loans

India Ratings and Research (Ind-Ra) has assigned an 'IND A+/Positive' rating to Keystone Realtors Limited's (KRL) bank loan facilities totaling INR3,000 million. This positive outlook reflects a substantial increase in KRL's operational scale and strong project launches in Q1FY26, with anticipated presales of INR35 billion to INR45 billion in FY26. The company’s consolidated credit profile has significantly improved, evidenced by a net cash position as of Q1FY26, and a reduction in its gross debt-to-operating cash flow ratio to 0.54x in FY25 from 1.19x in FY24.

KRL's presales increased by 34% year-over-year to INR30.3 billion in FY25, driven by higher sales volumes and price growth. Collections also saw improvement, reaching INR23.3 billion in FY25. The company's liquidity position is adequate, with INR8.1 billion in cash and cash equivalents and INR13.9 billion in unutilized limits as of March 31, 2025. Ind-Ra expects KRL to generate sufficient cumulative free cash flow of approximately INR16.6 billion over FY26-FY28, comfortably covering its debt servicing and capital expenditure requirements.

The rating acknowledges KRL's strong position in Mumbai's redevelopment market, its established brand (Rustomjee), and a robust project pipeline of 21.3 million square feet, ensuring visibility for the next three to four years. The company plans to cap its gross debt at around INR10.0 billion, maintaining a debt-to-equity ratio below 0.75x in the near term.