Raymond Group Targets Doubling Real Estate Revenue in 5 Years
Raymond Group, a leading conglomerate, aims to double the topline of its real estate business to Rs 4,000 crore over the next five years, driven by strategic demergers and new projects.
Raymond GroupReal EstateMumbaiTopline GrowthJoint DevelopmentReal Estate NewsJun 16, 2025
“We are looking at a topline growth of 15% and Ebitda (earnings before interest, taxes, depreciation and amortisation) growth of 25% every year,” said Gautam Singhania, chairman and managing director of Raymond Group, in an interaction with The Financial Express.
Raymond has already taken significant steps to achieve these goals. The company has demerged its real estate business and is planning to list it next month. This follows the successful demerger and listing of its lifestyle business. The real estate division, Raymond Realty, posted a profit before tax (PBT) of Rs 370 crore on revenue of Rs 2,313 crore in FY25, with a topline growth of 45.2%.
Singhania declined to comment on the valuations of the real estate company, stating that it would be determined through market discovery. However, he emphasized the company's commitment to strong financial discipline.
Currently, Macrotech (Lodha) is the biggest developer in Mumbai, with pre-sales of Rs 14,000 crore for FY25. Prestige Estates and Oberoi Realty follow with pre-sales of about Rs 5,000 crore each. Mumbai holds a significant 28% share in the total residential sales of 700,000 units a year in the top 10 cities, making it a crucial market for Raymond Realty.
Raymond Realty is currently debt-free at the net level, although Singhania acknowledged that it might be challenging to maintain this status in the coming years. “We want to be a strong company with good financial discipline,” he stated. Despite predictions of slower growth in residential sales due to price increases, Singhania remains bullish about the market. “Sales are doing well,” he added, noting that residential prices have grown by around 7-8% and are expected to see similar growth this year.
The company has a development potential worth Rs 25,000 crore in its Thane land and Rs 14,000 crore in joint development projects. These joint development projects are expected to account for 50% of annual pre-sales within two years. Raymond plans to launch two new projects on its own land in Thane and four new joint development projects in Mumbai in FY26.
In the fourth quarter of FY25, Raymond signed two joint development agreements in Mahim and Wadala in Mumbai, with a combined gross development value of Rs 6,800 crore. These strategic moves underscore the company's commitment to expanding its footprint in the real estate market and achieving its ambitious growth targets.
Frequently Asked Questions
What is Raymond Group's target for its real estate business?
Raymond Group aims to double the topline of its real estate business to Rs 4,000 crore over the next five years.
What is the current financial status of Raymond Realty?
Raymond Realty is currently debt-free at the net level, with a profit before tax (PBT) of Rs 370 crore on revenue of Rs 2,313 crore in FY25.
What is the expected growth rate for Ebitda in Raymond's real estate business?
The expected Ebitda growth rate for Raymond's real estate business is 25% every year.
What is Raymond's strategy for joint development projects?
Raymond plans to launch two new projects on its own land in Thane and four new joint development projects in Mumbai in FY26, with joint development projects expected to account for 50% of annual pre-sales within two years.
What is the share of Mumbai in the total residential sales of the top 10 cities?
Mumbai holds a 28% share in the total residential sales of 700,000 units a year in the top 10 cities.
Related News Articles
India's Rise to Realty Prominence: A Billion-Dollar Boom
India is accelerating to become the real estate capital of Asia, with a total valuation of Rs 14.2 trillion among the top 100 realty companies.
Maharashtra Cabinet Renames Pune Airport After Sant Tukaram Maharaj
The Maharashtra Cabinet has approved a proposal to rename Pune airport after the 17th-century Warkari saint and poet, Sant Tukaram Maharaj.
The Downfall of Real Estate Moguls: Alexander Brothers Arrested in Miami
In a shocking turn of events, the renowned real estate moguls, the Alexander Brothers, were recently arrested in Miami. This news has sent ripples through the business community, leaving many to wonder what led to their downfall.
Luxury Homes, Toxic Air: The Urban Pollution Paradox in India
Nithin Kamath, a prominent real estate analyst, highlights the growing concern of urban pollution in major Indian cities like Delhi, Mumbai, and Bengaluru. Despite seeing a surge in luxury real estate, these cities struggle with alarming levels of air pol
Tragic Incident: Two Workers Killed, One Injured as Slab Collapses in Chikhla Mines
A devastating slab collapse in the Chikhla mines of Manganese Ore (India) has resulted in the death of two workers and left one injured. The incident has raised serious concerns about safety protocols in the mining industry.
Women Home Buyers Witness 14% Surge in 2024: Report
A recent report by Square Yards, titled 'Key Holders of Change - Women Driving Real Estate Growth and Transformation,' reveals a significant 14% increase in women homebuyers in 2024.