Kolte-Patil Developers Limited’s (KPDL) FY25 Annual Report reflects a year of steady operational resilience despite muted pre-sales. While regulatory delays pushed back planned launches, the company delivered record collections, strengthened its portfolio, and entered a landmark strategic partnership with Blackstone, according to Equirus Securities which has analysed the report.

Backed by a robust project pipeline and improved financial performance, KPDL appears well positioned to leverage growth opportunities and reinforce its leadership in India’s real estate sector.

In FY25, pre-sales were muted and stood at Rs 27.9bn in FY25 vs Rs 28.2bn in FY24, largely due to regulatory and procedural delays which deferred planned launches; while collection rose 18% yoy to Rs 24.3bn. KPDL entered a strategic partnership with Blackstone with the latter acquiring a 40% stake in the Company following the two-phase transaction and the third phase (open offer is on-going).

Blackstone’s strategic partnership with Kolte Patil will aid the company in harnessing Blackstone’s global expertise and financial resources to fast-track expansion, foster innovation, and strengthen its leadership in India’s evolving real estate market. KPDL has a healthy project portfolio of ~36.1msf/~Rs 288bn, comprising of which a significant portion of the portfolio is attributed to Pune’s Life Republic (LR) project where both realisations and sales velocity continue to trend upward.

Muted pre-sales due to delayed launches; Healthy Collections: Pre-sales stood at Rs 27.9bn in FY25 vs Rs 28.2bn in FY24, due to regulatory and procedural delays which deferred planned launches. In FY25, KPDL has launched projects with a GDV of ~Rs 40bn, which accounted for 42% of total pre-sales. The flagship Life Republic township remained a major growth driver, sold 1.9msf/ Rs 12.7bn in FY25. Collections rose to an all-time high of ~Rs 24.3bn, up 18% yoy. In FY25, KPDL has added a project in Wadgaon, Pune, with a potential development of ~5 msf/Rs40bn.

Strategic Partnership with Blackstone – an inflection point in the company’s growth journey: KPDL entered a strategic partnership with Blackstone with the latter acquiring a 40% stake in the Company following the two-phase transaction involving preferential allotment of equity shares and the secondary equity, share acquisition from existing promoters. Additionally, it has also made an open offer to further acquire equity shares of Kolte-Patil. This collaboration marks an inflection point in KPDL’s growth journey, empowering it to harness Blackstone’s global expertise and financial resources to fast-track expansion, foster innovation, and strengthen its leadership in India’s evolving real estate market. The transaction will also strengthen the company’s Board, with the appointment of Tuhin Parikh, Asheesh Mohta, and Mohit Arora as additional directors representing Blackstone.

Robust project portfolio; Improving financial performance: KPDL has a healthy project portfolio of ~36.1msf/~Rs 288bn, comprising ~4.0msf of ongoing unsold inventory, ~8.5msf under approval, and a land bank of ~23.6msf. A significant portion of the portfolio is attributed to Pune’s Life Republic (LR) project (~Rs 121bn), where both realisations and sales velocity continue to trend upward. Revenue increased by 25% yoy in FY25 to ~Rs17.2bn largely on account of higher deliveries while it reported a PAT of ~Rs1.1bn in FY25 as against a loss of ~Rs0.7bn in FY24. Cash Flow from operations stood at ~Rs2.8bn in FY25 vs (~Rs1.1bn) in FY24.