Raymond Realty ‘cautious’ on South Mumbai real estate, to enter only if ‘returns make sense’: Harmohan Sahni, MD and CEO

Raymond Realty is taking a ‘cautious’ approach towards the South Mumbai real estate market and will enter the segment only if deal structures and expected returns meet its internal benchmarks, according to Harmohan Sahni, MD and CEO of the company.

Sahni said the company will continue to focus on Mumbai’s western and eastern suburbs, as well as the Bandra Kurla Complex (BKC), which it views as a strong employment hub with sustained housing demand across market cycles.

“South Bombay (Mumbai) we are very cautious because we have a certain view on this market and we will only be present in South Bombay market if it makes sense to us in terms of deal structure and the returns that we will get,” he said at a recently held investors’ call.

On the impact of the ongoing US-Iran war, Sahni said any rise in construction costs would likely play out over the longer term. Speaking during the company’s Q4FY26 earnings call on May 6, 2026, he said Raymond Realty expects construction costs to rise by around 3-4% if the conflict continues for an extended period.

According to Sahni, the company has carried out scenario planning and believes that if the situation eases over the next two to three months, it may not see any material impact on construction costs.

“The market has the absorption capacity for that construction cost increase, and we will pass it on. I do not foresee any impact on Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margins because of this,” Sahni said.

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“Other micro markets we are looking at is the western suburbs and the eastern suburbs primarily western suburbs is where we are focusing a lot. Currently we have got a lot of projects around BKC and that remains our focus area because that is a very strong employment hub part of the city and if we can give products which are affordable luxury, we believe that there will always be demand for that irrespective of the market cycle also,” Sahni said.

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In July 2025, Raymond Realty, the real estate arm of the Raymond Group, announced its debut on Indian stock exchanges on July 1 following its demerger from Raymond Limited.

During an earnings call, Sahni was asked about the top competitors in the Thane market. He said competition is not a major concern in Thane’s real estate segment, describing it as a deep and robust end-user-driven market with limited investor participation.

“Thane is one of the markets I operate in. Thane is now about 45% of the market that I operate in. 55% I operate in other markets, all the big players are in Thane. You can imagine any big name, all of them are there. Lodha is there, Adani is there, Oberoi is there, Kalpataru is there, Piramal is there, and some of the local players are also there,” Sahni said.

“The entire universe of it’s a very large market, very deep market, very robust market, largely investor is absent from this market, and it’s purely purely almost to the extent of 90%-95% actual user driven. A lot of people take loans almost 80%-85%. So, salaried people will be there, and all the local businessmen who really have factories in Bhiwandi and all, and Kalyan are also living in Thane because it offers that kind of a living experience. So, there is no issue of competition. There is enough and more competition in Thane,” Sahni said.

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For the full financial year 2025-26, the company’s pre-sales rose 31% to ₹3,023 crore from ₹2,314 crore a year earlier. Raymond Realty said it has a launch pipeline with a revenue potential of around ₹43,000 crore across MMR.