India’s residential real estate upcycle continued to strengthen in the December quarter as one of the country’s largest listed developers reported its strongest-ever third-quarter and nine-month performance, underlining sustained end-user demand and improving execution across major urban markets. The results highlight how scale, diversification, and capital discipline are becoming decisive advantages in a consolidating housing sector.
During the third quarter of FY26, the developer recorded booking values exceeding Rs 8,400 crore, representing a sharp year-on-year increase and marking its highest Q3 performance to date. Cumulative bookings for the first nine months crossed Rs 24,000 crore, placing the company well ahead of historical run rates and reinforcing confidence in meeting and potentially exceeding full-year guidance. The momentum was supported by healthy volumes as well as steady price realisation across geographies. Sales activity remained broad-based. Nearly 4,000 homes were sold during the quarter across more than six million sq ft, while nine-month sales crossed 12,700 homes. This consistency reflects a housing market increasingly driven by genuine end-user demand rather than speculative buying, particularly in well-connected urban locations with strong social infrastructure. The Mumbai Metropolitan Region emerged as the single-largest contributor to quarterly bookings, aided by a high-value launch in central Mumbai. However, analysts note that the performance was not overly concentrated, with multiple cities contributing meaningfully. Over the quarter, new projects and phases were launched across nine cities, indicating a deliberate strategy to balance premium urban infill developments with mid-income housing in growth corridors.
Financially, the quarter demonstrated improving cash efficiency. Collections rose sharply compared to the previous year, while operating cash flows grew faster than revenues, reflecting tighter control over construction schedules and receivables. At the same time, construction expenditure increased significantly over the nine-month period, signalling a focus on timely delivery an area of growing importance for both regulators and homebuyers. The developer also accelerated its land acquisition and partnership strategy. New projects added during the quarter and over the nine-month period expanded the future development pipeline beyond annual targets, strengthening medium-term visibility. Urban planners point out that such expansion, when aligned with transit access and density norms, can support more compact and resource-efficient city growth. Beyond numbers, sustainability and governance continued to play a role in shaping institutional perception. The company advanced its climate and supply-chain commitments, aligning long-term growth with lower carbon intensity and responsible sourcing an increasingly material factor for investors and city authorities alike. Profitability trends remained positive. Operating margins improved modestly, while net profit growth outpaced topline expansion, indicating operating leverage as scale increases. The balance sheet remains supported by internal accruals and earlier capital raising, providing flexibility to pursue growth without overextending leverage.
Looking ahead, the performance reflects broader shifts in India’s housing markets: consolidation around credible developers, preference for timely delivery, and demand concentrated in urban regions with employment depth. As infrastructure investments and climate-resilient planning reshape Indian cities, developers with execution capability and balance-sheet strength are likely to remain key beneficiaries of the next phase of residential growth.
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