News: Raymond Realty Cautious on South Mumbai, Eyes BKC-26-05-2026

Raymond Realty will enter the South Mumbai market only if the deal structure and returns meet its internal benchmarks, MD and CEO Harmohan Sahni has said, describing the company’s stance as "very cautious".

Answering a question on redevelopment projects in South Mumbai at a recent investors’ call, Sahni said the company holds a certain view on that market. Its attention is on the western and eastern suburbs, mainly the western suburbs, and on the area around Bandra Kurla Complex (BKC), where it has several projects. He called BKC a very strong employment hub and said affordable luxury products there would find demand regardless of the market cycle.

On the US-Iran war, Sahni said during the Q4FY26 earnings call on May 6, 2026 that construction costs could rise by around 3-4% if the conflict drags on. The company has done scenario planning and sees no material impact if the situation eases in two to three months. He said the market can absorb such an increase, which the company would pass on, and he does not foresee any effect on EBITDA margins.

Raymond Limited entered real estate in 2019 with its legacy 100-acre land bank in Thane, where residential, retail and commercial developments are planned. Raymond Realty, the group’s real estate arm, debuted on Indian stock exchanges on July 1, 2025, after its demerger from Raymond Limited.

Asked about competitors in Thane, Sahni said competition is not a concern there. Thane now makes up about 45% of the markets he operates in, with 55% elsewhere. All the big names are present, he said, naming Lodha, Adani, Oberoi, Kalpataru and Piramal, along with some local players.

He described Thane as a very large, deep and robust market from which investors are largely absent, with 90%-95% of demand coming from actual users. Many buyers take loans of 80%-85%, he said. They include salaried people and local businessmen with factories in Bhiwandi and Kalyan who live in Thane for the living experience it offers.

Earlier this month, Raymond Realty reported that Q4 FY26 sales bookings more than doubled to Rs 1,519 crore from Rs 636 crore a year earlier, on strong demand for its residential projects in the Mumbai Metropolitan Region (MMR). For 2025-26, pre-sales rose 31% to Rs 3,023 crore from Rs 2,314 crore. The company said its launch pipeline across MMR has a revenue potential of around Rs 43,000 crore.