Credit Rating Withdrawal
Keystone Realtors Credit Rating Withdrawn by India Ratings After Lender NOC
NSE
RUSTOMJEE
BSE
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- Keystone Realtors Limited informed the stock exchanges that India Ratings and Research (Ind-Ra) has withdrawn its previously affirmed ‘IND A+/Positive’ long-term credit rating for the company’s ₹300 crore bank loan facilities.
- The withdrawal follows receipt of a no-objection certificate (NOC) from lenders and a formal request from the company, and does not reflect a deterioration in the company’s credit profile.
PRICE-SENSITIVE TRIGGER
Event: India Ratings and Research withdrew the long-term credit rating assigned to Keystone Realtors’ bank loan facilities.
Type: Credit Rating Withdrawal
Impact: Neutral
Immediate Effect:
- The ₹300 crore long-term bank loan rating has been withdrawn after lender approval and issuer request. The action is administrative in nature and does not indicate any adverse change in the company’s financial strength.
Metrics:
Key Financial Metrics:
- FY26 Presales: ₹4,022 crore (+33% YoY)
- FY26 Net Collections: ₹2,622 crore (+13% YoY)
- FY26 Revenue: ₹2,716.8 crore (vs ₹2,121.4 crore in FY25)
- Adjusted EBITDA: ₹174.3 crore (vs ₹306.7 crore in FY25)
- Adjusted EBITDA Margin:Â 6%Â (vs 14% in FY25)
Balance Sheet Highlights:
- Gross Debt: ₹754.9 crore
- Cash & Cash Equivalents: ₹818.3 crore
- Net Debt: Net cash position of approximately ₹63.4 crore
Rating Details:
- Instrument:Â Long-term Bank Loan Facilities
- Rated Amount: ₹300 crore
- Previous Rating:Â IND A+/Positive
- Current Status:Â Withdrawn (WD)
Highlight:
- India Ratings withdrew the rating after receiving lender no-objection certificates and the issuer’s withdrawal request, while maintaining that Keystone’s operational performance and liquidity remain robust.
What Happened ?
Keystone Realtors informed the stock exchanges that India Ratings and Research has withdrawn the long-term credit rating assigned to its ₹300 crore bank loan facilities.
Before withdrawal, the facilities carried an IND A+/Positive rating. According to India Ratings, the withdrawal is consistent with its rating withdrawal policy after receiving the necessary no-objection certificates from lenders and a formal withdrawal request from the company.
In its rationale, the agency continued to acknowledge Keystone Realtors’ healthy operating performance, strong sales momentum, adequate liquidity and established position in Mumbai’s redevelopment market.
key details
Rating Action:
- India Ratings withdrew the long-term rating on ₹300 crore bank loan facilities.
- The rating status has been revised to WD (Withdrawn).
- The previous rating was IND A+/Positive.
- The withdrawal follows lender consent and the issuer’s request.
Note:
- The withdrawal does not represent a downgrade or negative credit action.
Business Performance:
- FY26 presales increased 33% year-on-year to ₹4,022 crore.
- Revenue increased to ₹2,716.8 crore during FY26.
- Collections improved to ₹2,622 crore.
- The company maintained strong operating cash generation supported by healthy sales momentum.
Note:
- Operational execution and project launches continue to support business growth.
Liquidity Position:
- Cash and cash equivalents stood at ₹818.3 crore.
- Gross debt increased to ₹754.9 crore.
- The company remained in a net cash position.
- India Ratings expects operating cash flows to adequately support debt servicing over the medium term.
Note:
- Liquidity remains one of the company’s key credit strengths.
Key Credit Drivers:
- Strong redevelopment business model in the Mumbai Metropolitan Region (MMR).
- Healthy presales and collection growth.
- Large residential project pipeline providing multi-year revenue visibility.
- Established Rustomjee brand with strong execution capabilities.
- Management intends to maintain a conservative debt-to-equity profile.
Note:
- These strengths formed the basis of the previously affirmed positive outlook before withdrawal.
Risk Analysis
Summary:
- Although the rating has been withdrawn for administrative reasons, Keystone Realtors continues to operate in a sector exposed to execution, regulatory and project concentration risks.
Key Risks:
- High dependence on redevelopment projects within MMR.
- Project concentration could affect cash flow if launches are delayed.
- Real estate remains cyclical and subject to regulatory approvals.
- Delays in approvals or execution could impact collections and return ratios.
- EBITDA margin declined during FY26 despite higher revenue.
Worst Case:
- Delays in project launches, slower collections or prolonged regulatory approvals could pressure operating cash flows and reduce financial flexibility despite the company’s currently comfortable liquidity position.
Risk Level: Medium
Company Commentary
- India Ratings has withdrawn the earlier affirmed IND A+/Positive rating for the company’s bank loan facilities.
- The withdrawal follows receipt of lender no-objection certificates and the company’s request.
- The company continues to maintain a strong operating platform supported by redevelopment projects across Mumbai.
- Management expects continued business growth through upcoming project launches and disciplined capital management.
Official Exchange Filing: Keystone Realtors Limited
