Explained: Why Raymond Realty shares rallied up to 18% today

Shares of Raymond Realty Limited rallied nearly 18% on Wednesday after the company reported its March quarter earnings, with investors cheering the strong performance and dividend announcement. The real estate company, a major player in the Mumbai Metropolitan Region (MMR), has recommended a dividend of ₹2 per share (20%) for FY26, subject to shareholder approval at the upcoming annual general meeting (AGM).

Raymond Realty shares surged as much as 17.63% to ₹558.20 on the BSE, after opening 6.4% higher at ₹504.90 compared to the previous close of ₹474.50. At the time of reporting, it was trading 15.5% higher at ₹548.20, taking its market capitalisation to ₹3,655 crore.

The stock, which debuted on the BSE and NSE on July 1, 2025, had touched a high of ₹1,055.20 on listing, while it hit a low of ₹350 on March 16, 2026. The counter has gained around 5% so far in calendar year 2026 and added over 30% in the past one month.

Q4 profit jumps 44% to ₹161 crore

Raymond Realty reported a net profit of ₹161 crore for the fourth quarter ended March 31, 2026, up 44% from ₹112 crore in the year-ago period. In the Q3FY26, the company's net profit stood at ₹67 crore. Total income rose 53% year-on-year to ₹1,176 crore, compared with ₹771 crore in Q4 FY25, driven by robust demand and a healthy delivery pipeline across projects.

On the operating fornt, EBITDA increased 49% YoY to ₹253 crore from ₹170 crore, while margins remained stable at 21.5% versus 22.1% in the year-ago period. The company said its focus has transitioned from market entry to operational excellence, enabling it to harness economies of scale. With sales momentum continuing to build, it expects margins to trend upward on a year-on-year basis.

In line with its strategic roadmap, Raymond Realty highlighted the addition of a ₹3,000 crore joint development agreement (JDA) project in Kandivali, marking its shift towards an asset-light growth model. This approach is aimed at accelerating market penetration and portfolio expansion while maintaining financial discipline, the company said.

The company’s total portfolio now stands at approximately ₹42,000 crore in gross development value (GDV), reflecting a diversified and high-growth asset base across the Mumbai Metropolitan Region (MMR). Its 100-acre Thane land parcel remains a key growth driver, with an estimated revenue potential of ₹25,000 crore. Of this, around 60 acres are currently under development, translating into nearly 6.6 million sq. ft. of RERA carpet area and a revenue potential of ₹15,300 crore.

As per the release, sales performance remains robust, with ₹9,100 crore worth of inventory already sold and collections reaching ₹7,000 crore to date. During Q4, the company launched ‘Ten X – District 9’, a residential project focused on 2-BHK homes, and ‘Park Street’, a high-street retail development—both of which saw strong market reception.

Commenting on the performance, Managing Director and CEO Harmohan Sahni said FY26 marked a transition from planning to scaled execution, with ₹1,519 crore in pre-sales during the quarter reflecting strong demand and effective strategy execution across micro-markets. He added that the company remains focused on delivering sustainable growth and long-term value.

The board has recommended a dividend of 20% on equity share capital, amounting to ₹2 per share (face value ₹10) for the financial year ended March 31, 2026, subject to shareholder approval at the upcoming 7th Annual General Meeting. If approved, the dividend will be paid on or after July 14, 2026.

Separately, the board approved the incorporation of a wholly owned subsidiary, Ten X Realty South, with an authorised share capital of ₹1 lakh, to expand its real estate operations. The subsidiary will be fully owned through an initial investment in equity shares and is yet to commence business.

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