Kalpataru's Q2 loss widens as revenue falls 45%; rating stays at Strong Sell

Kalpataru Ltd, the Mumbai-based developer listed on the NSE, reported a consolidated net loss of ₹70.67 crore for the quarter ended 30 September 2026, against a net profit of ₹4.96 crore a year earlier. Revenue from operations fell about 45% to ₹437.17 crore. The company approved its Q2 and half-year FY27 accounts and filed them with the exchange on 29 October 2026. On 9 November 2026, the analytics firm MarketsMojo kept the stock at Strong Sell.

The quarter in numbers

• Revenue from operations: ₹437.17 crore, down from ₹793.77 crore
• Total income: ₹479.37 crore, down from ₹815.66 crore
• Adjusted EBITDA: ₹73 crore, a margin of 16.6% against 23.9%
• Pre-sales: ₹1,258 crore, down 5% from ₹1,329 crore
• Collections: ₹1,189 crore, up from ₹1,182 crore

The company said the loss was mainly due to its project completion method, under which revenue and profit are recognised when projects are completed, so they arrive unevenly. A switch to a new concessional tax regime cost ₹10.48 crore in the quarter. Half-year revenue was ₹909 crore and the half-year loss was ₹100 crore. Half-year pre-sales were flat at ₹2,587 crore, while half-year collections rose 9% to ₹2,554 crore. Area sold in the quarter rose to 0.84 million sq ft from 0.78 million, at an average realisation of ₹15,046 per sq ft.

Why the rating stayed negative

MarketsMojo's grade is its own assessment. It is not a company announcement or a regulator's action. Its 9 November analysis cites below-average quality, operating losses, high leverage, a negative financial trend, mildly bearish technicals and a risky valuation. The firm had cut the rating from Sell to Strong Sell on 12 October 2026. It also said interest expense rose 27.84% over six months to ₹32.97 crore, and that operating profit did not cover interest, with coverage at -8.26 times.

On the balance sheet, net debt was ₹8,323 crore at 30 September 2026, and gross debt was ₹9,179 crore against cash of ₹856 crore. The company has said net debt is expected to stay flat by year-end, which limits how fast it can reduce borrowings.

The stock closed at ₹24,280 on 30 October 2026, down ₹140 on the day, after touching ₹23,790, its lowest level in the 52-week and all-time records. In the 9 November analysis, the one-year return was -32.66% and the year-to-date return was -25.77%.

What management said and what to watch

Managing director Parag Munot said the company delivered a resilient performance in the quarter and the half-year, and that about 40% of the ₹6,500 crore FY27 pre-sales guidance was achieved in H1. The guidance is unchanged against about ₹5,280 crore in FY26. Chief financial officer Chandrashekhar Joglekar said the company targets about 5.5 million sq ft of completions in FY27, with about 2.3 million sq ft done in H1, and will complete about 14 million sq ft of ongoing projects gradually over FY27 to FY29. Foreign institutional investors held 5.87% of the shares after reducing their holding in the recent quarter. Statutory auditors KKC & Associates LLP issued an unmodified conclusion on the results.

Investors will watch three things. The first is how many projects are completed in the second half, since that is when the company expects to book the revenue and profit tied to them. The second is whether second-half pre-sales rise on sustenance sales and new launches, including Kalpataru Elaara in Goregaon West, which launched in mid-September and had about 30% sold by the time of the call. The third is debt servicing. MarketsMojo says investors should monitor quarterly earnings, debt servicing capacity and sector developments.

Kalpataru Projects International, a separate listed group company, reported its own Q2 FY27 results. Those figures do not relate to Kalpataru Ltd.