Latest news with #BadalYagnik
Time of India
10 hours ago
- Business
- Time of India
Real estate undergoes structural reset with financial discipline and equity-led growth
Property developers are sharpening their focus on deleveraging, creating healthy balance sheets, and increasingly opting for equity over high-cost debt. Last fiscal year, 62% of the top 50 listed developers reported debt-to-equity (D/E) ratios below 0.5 -- an improvement from 43% in FY21. Also, the share of firms with D/E ratios above 1.0 fell sharply to 17%, signalling a clear pivot towards financial conservatism, according to real estate services firm Colliers. Explore courses from Top Institutes in Please select course: Select a Course Category Management healthcare Leadership Data Science Others Operations Management Design Thinking Digital Marketing Artificial Intelligence Data Analytics MBA Product Management Public Policy CXO PGDM Finance Project Management Data Science MCA Healthcare Technology Cybersecurity Degree others Skills you'll gain: Duration: 11 Months IIM Kozhikode CERT-IIMK General Management Programme India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK GMPBE India Starts on undefined Get Details Skills you'll gain: Duration: 9 Months IIM Calcutta CERT-IIMC APSPM India Starts on undefined Get Details This recalibration has not only improved profitability -- 62% of these firms posted net profit margins exceeding 10% -- but also accelerated cash flows and operating discipline, thanks to a robust recovery in both residential and commercial segments, Colliers said. The improving financial health of developers has sparked renewed confidence among banks and equity investors. Since 2021, realty firms have raised nearly Rs 40,000 crore through IPOs, with Rs 7,630 crore raised via seven IPOs in the first half of 2025 alone. The momentum builds on a strong 2024, when nine IPOs garnered Rs 13,800 crore. Some of the large IPOs this year include Schloss Bangalore (Leela Hotels), Kalpataru , and Brigade Hotel Ventures . Others, like WeWork India, Bhive Workspaces, and Prestige Hospitality Ventures, are actively preparing for market entry. Knowledge Realty Trust, backed by Sattva Group and Blackstone, also secured Sebi approval for a Rs 4,800 crore REIT. The diverse range of listings underscores broadening investor appetite across asset classes, from residential and hospitality to co-working and alternative REIT platforms. 'India's real estate sector continues to show resilience and financial prudence despite global uncertainties. The rising number of credit rating upgrades in FY25 compared to other sectors is a testament to the sector's evolving strength,' said Badal Yagnik, CEO, Colliers India. According to Colliers, the realty sector's equity-led funding strategy is a deliberate pivot to reduce reliance on high-cost, short-tenure debt. 'This change is not accidental, it reflects conscious efforts by developers to strengthen governance, consolidate at the SPV level, and tap institutional capital for long-term growth,' said Shivam Agarwal, vice president, strategic growth, Sattva Group. The banking sector responded positively too. Gross bank credit to real estate nearly doubled to Rs 35.4 lakh crore in FY25 from Rs 17.8 lakh crore in FY21, raising the sector's share of overall bank credit to 19.4% from 16.3%. The gross non-performing asset (GNPA) ratio in construction plunged to 3.1% this March, from 23.5% in March 2021, underscoring improved asset quality and the viability of new projects. However, NBFC lending remains below pre-IL&FS levels. It is gradually recovering, rising to Rs 1.3 lakh crore as of September 2024 from Rs 1 lakh crore in FY21. The bulk of new funding is now coming from commercial banks, reflecting the sector's enhanced compliance and governance standards. The sector's improving creditworthiness has also drawn recognition from rating agencies. According to an internal analysis by a top credit rating firm, the upgrade-to-downgrade ratio for real estate issuers surged to 23:1 in H2 FY25, compared to just 2.3:1 for the broader economy. In FY25, 66% of the top listed real estate companies reported operating margins above 20%, up from 55% in FY21, while firms with net profit margins above 10% jumped to 62% from 23%. These gains have been powered by firm pricing, strong end-user demand, and cost control. 'The improving credit profile of the sector is underpinned by strong demand-supply dynamics across segments, residential, commercial, retail, hospitality, and industrial,' said Yagnik. 'The near-to-medium-term outlook remains robust, backed by both domestic and global investor interest.' Experts believe regulatory nod for small and medium REITs (SM-REITs) is expected to democratise retail participation in high-yielding real estate assets such as industrial parks, co-living spaces, and student housing. 'Indian real estate is no longer a cyclical bet -- it is being seen as a restructured, institution-friendly sector,' said Jasmeet Chhabra, partner and cofounder, JV Ventures. 'As the ecosystem deepens, we expect broader participation from institutional and retail investors alike.'
Time of India
21 hours ago
- Business
- Time of India
Indian real estate raises ₹400 billion via IPOs since 2021: Colliers
NEW DELHI: India's real estate sector has raised nearly ₹400 billion through IPOs since 2021, with ₹76 billion garnered across seven IPOs in 2025 alone, according to a report by Colliers India. At the same time, bank credit to the sector has more than doubled, increasing from ₹17.8 lakh crore in FY21 to ₹35.4 lakh crore in FY25, reflecting rising institutional confidence and improved financial health of developers. Gross bank credit in India grew from ₹109.5 lakh crore in FY21 to ₹182.4 lakh crore in FY25, with real estate now accounting for nearly 20% of total deployment. Importantly, asset quality in the sector improved, as the GNPA ratio for construction loans dropped from 23.5% to 3.1% over the same period. Improved profitability and lower leverage According to Colliers' assessment of the top 50 listed real estate companies, profitability metrics have seen a marked improvement. At the end of FY25, 62% of these firms reported higher net and operating margins, up from just 23% in FY21. The improvement is attributed to higher revenue realization, better operating efficiencies, and consistent demand. In terms of financial stability, the debt-to-equity ratio of top players has significantly declined. Over 60% of the companies now maintain a debt-equity ratio below 0.5, compared to 43% in FY21, indicating deliberate deleveraging efforts and capital discipline, even at the SPV level. 'The real estate sector has emerged as one of the most financially prudent segments of the economy, backed by consistent demand, profitability, and lower leverage,' said Badal Yagnik, CEO, Colliers India. Real estate sees more credit upgrades than other sectors Real estate has outperformed other sectors in credit quality, with 23% of the rated real estate portfolio receiving upgrades in H2 FY25, while downgrades stood at just 1%, according to a leading credit rating agency. By comparison, across all sectors, upgrades and downgrades stood at 14% and 6%, respectively, during the same period. While some moderation in upgrades is expected in future quarters, Colliers expects real estate to continue outpacing other industries on credit quality parameters, driven by revenue growth, margin improvements, and prudent leverage. Equity market access deepens with 30 IPOs since 2021 Indian real estate firms have increasingly tapped public markets to fund growth. The sector has witnessed 30 IPOs since 2021, raising a cumulative ₹400 billion, with nine IPOs in 2024 alone contributing ₹138 billion. The momentum has continued into 2025 with seven IPOs raising over ₹76 billion as of July. The listings are also expanding beyond traditional residential and commercial developers. Companies in flex spaces, hospitality, and SM-REITs are fast-tracking IPO plans, supported by strong investor interest and regulatory reforms. 'The momentum from 2024 has continued into 2025, with diverse real estate segments—flex spaces, hospitality, and residential—lining up for IPOs. This reflects deepening investor confidence in the sector's long-term fundamentals,' said Vimal Nadar, national director & head of research, Colliers India.
Mint
3 days ago
- Business
- Mint
Bank credit to realty sector nearly doubles in 4 yrs to ₹35.4 lakh cr at end of FY25: Colliers
New Delhi, Jul 29 (PTI) Bank credit to the Indian real estate sector stood at ₹ 35.4 lakh crore at the end of March 2025, nearly doubling in the last four years, according to Colliers. In a statement on Tuesday, real estate consultant Colliers India said it has assessed the aggregate financials of the top 50 listed real estate companies in India in terms of profitability, gearing and market performance. "India's real estate sector has continued to exhibit marked improvement in terms of financial health in the post-pandemic era, outperforming other major industries in the economy in terms of critical credit and financial metrics," the consultant said. Colliers India noted that the sector's access to credit has improved significantly in absolute terms. "Gross bank credit in India has grown significantly, from ₹ 109.5 lakh crore in FY21 to ₹ 182.4 lakh crore in FY25. Bank credit in the real estate sector has impressively doubled in the same period, from ₹ 17.8 lakh crore to ₹ 35.4 lakh crore," it said, citing RBI data. The consultant mentioned that the real estate sector now accounts for almost one-fifth of the bank credit deployment in the country, signalling growing lender confidence in the sector. "Indian real estate sector continues to demonstrate resilience and financial prudence even in the wake of external volatilities," Badal Yagnik, Chief Executive Officer of Colliers India, said. He said there has been a higher proportion of credit rating upgrades during the last fiscal in the real estate sector compared to upward revisions in other economic sectors. "The relatively higher credit quality of real estate loans is well supported by underlying strong demand-supply dynamics across multiple asset classes such as residential, commercial, industrial & warehousing, retail, hospitality etc," Yagnik said. The top 50 listed real estate companies have shown impressive improvements in terms of profitability, cash flow realisation, and balance sheet performance over the last five years.
Mint
3 days ago
- Business
- Mint
Bank credit to realty sector nearly doubles in 4 yrs to ₹35.4 lakh cr at end of FY25: Colliers
New Delhi, Jul 29 (PTI) Bank credit to the Indian real estate sector stood at ₹ 35.4 lakh crore at the end of March 2025, nearly doubling in the last four years, according to Colliers. In a statement on Tuesday, real estate consultant Colliers India said it has assessed the aggregate financials of the top 50 listed real estate companies in India in terms of profitability, gearing and market performance. "India's real estate sector has continued to exhibit marked improvement in terms of financial health in the post-pandemic era, outperforming other major industries in the economy in terms of critical credit and financial metrics," the consultant said. Colliers India noted that the sector's access to credit has improved significantly in absolute terms. "Gross bank credit in India has grown significantly, from ₹ 109.5 lakh crore in FY21 to ₹ 182.4 lakh crore in FY25. Bank credit in the real estate sector has impressively doubled in the same period, from ₹ 17.8 lakh crore to ₹ 35.4 lakh crore," it said, citing RBI data. The consultant mentioned that the real estate sector now accounts for almost one-fifth of the bank credit deployment in the country, signalling growing lender confidence in the sector. "Indian real estate sector continues to demonstrate resilience and financial prudence even in the wake of external volatilities," Badal Yagnik, Chief Executive Officer of Colliers India, said. He said there has been a higher proportion of credit rating upgrades during the last fiscal in the real estate sector compared to upward revisions in other economic sectors. "The relatively higher credit quality of real estate loans is well supported by underlying strong demand-supply dynamics across multiple asset classes such as residential, commercial, industrial & warehousing, retail, hospitality etc," Yagnik said. The top 50 listed real estate companies have shown impressive improvements in terms of profitability, cash flow realisation, and balance sheet performance over the last five years. Around 62 per cent of the top 50 listed real estate firms had higher profitability margins at the end of FY25 as compared to the 23 per cent share in FY21. More than 60 per cent of the leading real estate companies in India have comfortable debt levels, which is reflected in the debt-to-equity ratio of less than 0.5 in FY25.
Time of India
3 days ago
- Business
- Time of India
Bank credit to real estate sector nearly doubles to ₹35.4 lakh crore in 4 years: Colliers
Bank credit to the Indian real estate sector stood at Rs 35.4 lakh crore at the end of March 2025, nearly doubling in the last four years, according to Colliers. In a statement on Tuesday, real estate consultant Colliers India said it has assessed the aggregate financials of the top 50 listed real estate companies in India in terms of profitability, gearing and market performance. Explore courses from Top Institutes in Please select course: Select a Course Category "India's real estate sector has continued to exhibit marked improvement in terms of financial health in the post-pandemic era, outperforming other major industries in the economy in terms of critical credit and financial metrics," the consultant said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas Prices In Dubai Might Be More Affordable Than You Think Villas In Dubai | Search Ads Get Quote Undo Colliers India noted that the sector's access to credit has improved significantly in absolute terms. "Gross bank credit in India has grown significantly, from Rs 109.5 lakh crore in FY21 to Rs 182.4 lakh crore in FY25. Bank credit in the real estate sector has impressively doubled in the same period, from Rs 17.8 lakh crore to Rs 35.4 lakh crore," it said, citing RBI data. Live Events The consultant mentioned that the real estate sector now accounts for almost one-fifth of the bank credit deployment in the country, signalling growing lender confidence in the sector. "Indian real estate sector continues to demonstrate resilience and financial prudence even in the wake of external volatilities," Badal Yagnik, Chief Executive Officer of Colliers India, said. He said there has been a higher proportion of credit rating upgrades during the last fiscal in the real estate sector compared to upward revisions in other economic sectors. "The relatively higher credit quality of real estate loans is well supported by underlying strong demand-supply dynamics across multiple asset classes such as residential, commercial, industrial & warehousing, retail, hospitality etc," Yagnik said. The top 50 listed real estate companies have shown impressive improvements in terms of profitability, cash flow realisation, and balance sheet performance over the last five years. Around 62 per cent of the top 50 listed real estate firms had higher profitability margins at the end of FY25 as compared to the 23 per cent share in FY21. More than 60 per cent of the leading real estate companies in India have comfortable debt levels, which is reflected in the debt-to-equity ratio of less than 0.5 in FY25.
