Business Overview
Runwal Enterprises Limited is a Mumbai real estate developer. It builds residential projects across the affordable, mid-income and luxury segments, along with commercial space, retail malls and educational buildings. The company was incorporated on February 17, 2016 as Propel Developers Private Limited, was renamed Runwal Apartments Private Limited in January 2021 and Runwal Enterprises Private Limited in January 2024, and became a public company on October 4, 2024. Its promoter is Subodh Subhash Runwal. The wider Runwal group was founded by Subhash Runwal in 1978, and the present company emerged as a separate entity in 2016. Its registered office is at Sion, Mumbai.
Between January 2023 and March 2026 the company ranked third in Mumbai for both new launches and sales, with market shares of about 2.33% and 2.46%. In the eastern suburbs it ranked first in sales with about 7.88%, and in Kalyan-Dombivli it ranked first in launches with about 11.41% and second in sales with about 6.33%. It works through greenfield land purchases as well as joint development agreements: greenfield land is 94.56% of its developable area. Mumbai holds 66.65% of that area, across 78 of its 80 projects, with two upcoming projects near Alibaug.
As of March 31, 2026 the company had 19 completed, 28 ongoing and 33 upcoming projects, together 88.37 million square feet of developable area. Residential is 74.58 million square feet of that and non-residential 13.80 million square feet. Completed projects account for 12.09 million square feet, ongoing 19.88 million square feet and upcoming 56.41 million square feet. Revenue from operations was ₹ 1,798.95 Crore in the Financial Year 2026 and profit after tax was ₹ 185.76 Crore. Sales value for the year was ₹ 2,353.51 Crore on 2.07 million square feet and 2,182 units. The company and its subsidiaries had 1,181 permanent employees as of March 31, 2026.
IPO Details
| Particulars | Details |
|---|---|
| IPO Date | September 25, 2026 to September 29, 2026 (Anchor bidding: September 24, 2026) |
| Issue Type | Book Built Issue (Fresh Issue only; no Offer for Sale) |
| Tentative Listing Date | October 5, 2026 (BSE and NSE) |
| Face Value | ₹ 2 per Equity Share |
| Price Band | ₹ 290 to ₹ 305 per Equity Share |
| Lot Size | 49 Equity Shares |
| Minimum Retail Investment | ₹ 14,945 (1 lot at the Cap Price) |
| Issue Size | 1,63,93,442 Equity Shares aggregating up to ₹ 500.00 Crore (entirely a Fresh Issue) |
| Employee Reservation | Up to ₹ 3.50 Crore, with a discount to the Issue Price to be announced |
| Post-Issue Market Cap | ₹ 4,507.44 Crore (at the Cap Price) |
| Promoter & Promoter Group Holding (Pre-Issue) | 95.16% |
| Promoter & Promoter Group Holding (Post-Issue) | 84.61% |
| Reservation | QIB: not more than 50%; NII: not less than 15%; Retail: not less than 35% of the Net Issue |
Objects of the Offer
The company proposes to use the Net Proceeds of the Fresh Issue as follows:
| Issue Objects | Est. Amt (₹ Cr.) |
|---|---|
| Repayment or pre-payment, in full or in part, of certain outstanding borrowings availed by the Company | 100.00 |
| Investment in the wholly owned Material Subsidiaries, Runwal Residency Private Limited and Evie Real Estate Private Limited, for repayment or pre-payment of certain of their outstanding borrowings | 225.00 |
| Funding acquisitions of future real estate projects and general corporate purposes | Balance* |
| Net Proceeds (total of the above) | Not quantified* |
| Add: Issue related expenses | Not quantified* |
| Gross Proceeds of the Fresh Issue | 500.00 |
Key Strengths and Opportunities
1. Third-ranked residential developer in Mumbai
The company ranked third in Mumbai for both new launches and sales between January 2023 and March 31, 2026, with market shares of about 2.33% and 2.46%. It has completed 12 residential projects in Mumbai covering 11.55 million square feet of developable area, has 17 ongoing residential projects covering 18.11 million square feet, and 19 upcoming residential projects with an estimated 20.46 million square feet. In the eastern suburbs it launched about 831 units and sold about 2,200, ranking first in sales with about 7.88% and fourth in launches with about 2.89%. In Kalyan-Dombivli it launched about 4,034 units and sold about 3,857, ranking first in launches with about 11.41% and second in sales with about 6.33%.
2. A pipeline that gives visibility on future cash flows
As of March 31, 2026 the company was executing ongoing projects of 19.88 million square feet and held upcoming projects with an estimated 56.41 million square feet. These sit in the eastern, northern, western and central suburbs of Mumbai and near Alibaug. Its historical base was the affordable and mid-income segments, through Runwal Gardens in Dombivli and Runwal Greens in Mulund West, and it has since added luxury projects at 7 Mahalaxmi and Girgaum. Mumbai infrastructure now under way, including 14 high-capacity metro lines, the 29.8 kilometre Coastal Road from Kandivali to Nariman Point and the Navi Mumbai International Airport, is expected to improve access to its Dombivli and Kanjurmarg projects.
3. Units sell during construction and at a premium
Across seven projects larger than one million square feet launched in the Financial Years 2024 to 2026, the company sold 4.37 million of 10.84 million square feet within one year of launch, or 40.31%. Across projects that received occupancy certificates in those years, it had sold 4.37 million of 4.90 million square feet, or 89.37%, before the certificate was received. Realisations have risen in most ongoing projects: Runwal Forests Phase 2 reached ₹ 14,844 per square foot in the Financial Year 2026, up 7.14%, and Runwal Pinnacle ₹ 14,343 per square foot, up 4.64%. JLL states that the company’s standing lets it command premium pricing in micro-markets such as Kanjurmarg and Mulund.
4. Large integrated townships
Runwal Gardens and Runwal My City in Dombivli span 250 acres and are planned as an integrated township with over 100 residential towers, two schools, retail malls, shopping arcades and commercial offices, along with 36 gardens, a clubhouse and multi-level car parks. Runwal Bliss and Runwal Avenue sit together on a 36 acre parcel at Kanjurmarg East and combine high-rise homes, high street retail and offices on the same land. The company states it is developing integrated townships extending over 250 acres as of the date of the RHP. This campus format supports the demand for self-contained communities in metropolitan India.
Key Risks
1. Operating cash flow has been negative for three years
Net cash used in operating activities was ₹ 180.71 Crore, ₹ 198.14 Crore and ₹ 549.48 Crore in the Financial Years 2026, 2025 and 2024, mainly because of increases in inventories and other current assets and income tax paid. Cash and cash equivalents fell by ₹ 56.04 Crore in the Financial Year 2025. The company says such negative cash flows may continue and could affect its business and fund its growth plans.
2. Leverage is high and the business needs constant financing
Total financial indebtedness was ₹ 2,909.13 Crore as of March 31, 2026, of which 87.40% was secured. Total debt including interest payable was ₹ 2,979.37 Crore, against which the risk factor shows a debt to equity ratio of 3.29 times, after 4.64 times in 2025 and 3.62 times in 2024. Land acquisition and development will need further borrowing, which may not be available on favourable terms.
3. Contingent liabilities are 43 times annual profit
Contingent liabilities were ₹ 7,980.08 Crore as of March 31, 2026, which the company states is 42.96 times its restated net profit and 39.65 times its cash and cash equivalents. They comprise ₹ 5,490.00 Crore of personal guarantees received, ₹ 1,840.00 Crore of corporate guarantees, ₹ 629.28 Crore of disputed direct and indirect tax matters and smaller claims. If a significant portion crystallises it would hit the balance sheet directly.
4. Units remain unsold
The company had 7,072 unsold units covering 7.55 million square feet across completed and ongoing projects as of March 31, 2026, which was 22.83% of total units. Unsold units in completed projects had an average age of 2.06 years, against 1.11 years a year earlier. Holding unsold stock raises interest and maintenance costs, and clearing it may require marked-down prices that would compress margins.
Financial Snapshot
| Key Performance Indicator | Units | FY 2026 | FY 2025 | FY 2024 |
|---|---|---|---|---|
| Revenue from Operations | ₹ Cr. | 1,798.95 | 1,007.77 | 2,408.87 |
| Revenue Growth | % | 78.51 | (58.16) | NA |
| Other Income | ₹ Cr. | 51.84 | 42.95 | 27.81 |
| Total Revenue | ₹ Cr. | 1,850.79 | 1,050.71 | 2,436.68 |
| Gross Margin | ₹ Cr. | 602.29 | 361.77 | 474.20 |
| Gross Margin | % | 33.48 | 35.90 | 19.69 |
| EBITDA | ₹ Cr. | 349.81 | 180.11 | 201.73 |
| EBITDA Margin | % | 19.44 | 17.87 | 8.37 |
| Adjusted EBITDA | ₹ Cr. | 592.26 | 393.99 | 394.50 |
| Adjusted EBITDA Margin | % | 32.92 | 39.10 | 16.38 |
| Finance Costs (charged to Profit and Loss) | ₹ Cr. | 115.16 | 78.86 | 41.78 |
| Restated Profit Before Tax | ₹ Cr. | 223.92 | 97.56 | 156.77 |
| Restated Net Profit for the Year | ₹ Cr. | 185.76 | 55.65 | 93.70 |
| Profit Attributable to Owners of the Parent | ₹ Cr. | 209.29 | 78.39 | 75.49 |
| Profit / (Loss) Attributable to Non-Controlling Interest | ₹ Cr. | (23.52) | (22.74) | 18.21 |
| Basic and Diluted EPS | ₹ | 16.74 | 6.27 | 6.04 |
| Return on Net Worth | % | 27.24 | 17.20 | 20.26 |
| Net Asset Value per Equity Share | ₹ | 61.43 | 36.45 | 29.80 |
| Restated Net Worth | ₹ Cr. | 768.20 | 455.86 | 372.65 |
| Total Equity (including non-controlling interest) | ₹ Cr. | 844.82 | 485.08 | 451.08 |
| Total Borrowings (current + non-current) | ₹ Cr. | 2,909.13 | 2,312.58 | 1,783.65 |
| Net Debt | ₹ Cr. | 2,778.11 | 2,250.66 | 1,631.23 |
| Net Debt to Equity | (x) | 3.29 | 4.64 | 3.62 |
| Inventories | ₹ Cr. | 8,450.84 | 6,811.21 | 5,940.55 |
| Cash and Cash Equivalents | ₹ Cr. | 201.26 | 99.19 | 155.24 |
| Cash Flow from Operating Activities | ₹ Cr. | (180.71) | (198.14) | (549.48) |
| Cash Flow from Investing Activities | ₹ Cr. | (213.23) | (167.67) | 251.49 |
| Cash Flow from Financing Activities | ₹ Cr. | 496.01 | 309.76 | 351.81 |
| Purchase of Property, Plant and Equipment and Intangible Assets | ₹ Cr. | 231.62 | 75.11 | 128.33 |
| Sales Value (bookings) | ₹ Cr. | 2,353.51 | 1,899.05 | 1,527.64 |
| Sales Area | msf | 2.07 | 1.62 | 1.62 |
| Sales (number of units) | Nos. | 2,182 | 1,700 | 1,688 |
| Gross Collections | ₹ Cr. | 1,854.61 | 1,556.23 | 1,923.99 |
| Launches | msf | 2.06 | 1.10 | 1.89 |
| Deliveries | msf | 1.17 | 1.33 | 2.23 |
| Average Sale Price | ₹ / sq. ft. | 11,365.98 | 11,753.69 | 9,429.65 |
Peer Comparison
| Company | Revenue from Operations (₹ Cr.) |
P/E (x) | RoNW (%) | NAV (₹ per share) |
|---|---|---|---|---|
| Runwal Enterprises Limited | 1,798.95 | 21.54 | 27.24 | 61.43 |
| Oberoi Realty Limited | 6,009.06 | 25.88 | 13.99 | 492.89 |
| Lodha Developers Limited | 16,676.20 | 33.42 | 14.73 | 233.11 |
| Godrej Properties Limited | 5,131.43 | 27.53 | 9.61 | 635.96 |
| Sunteck Realty Limited | 1,123.94 | 21.09 | 5.60 | 245.92 |
| Keystone Realtors Limited | 2,634.50 | 56.96 | 3.32 | 226.82 |
| Prestige Estates Projects Limited | 12,685.40 | 51.70 | 8.02 | 377.80 |
| Kalpataru Limited | 3,435.62 | 57.66 | 1.94 | 199.91 |
Conclusion
Runwal Enterprises is a well-established Mumbai-focused real estate developer with a strong presence across residential, commercial and integrated township projects. The company has maintained a strong position in Mumbai, ranking third in both launches and sales during January 2023–March 2026. Its sizeable project pipeline of 56.41 mn sq. ft. of upcoming projects provides visibility for future growth. FY26 also saw a sharp improvement in financial performance, with revenue growing 78.5% YoY to Rs 1,798.95 Cr and net profit rising to Rs 185.76 Cr. RoNW improved to 27.24%, while bookings increased to Rs 2,353.51 Cr.
However, the company has some key concerns. Operating cash flow has remained negative for three consecutive years, while total borrowings stood at Rs 2,909.13 Cr and net debt-to-equity remained elevated at 3.29x in FY26. Further, contingent liabilities of Rs 7,980.08 Cr and significant unsold inventory add to the risk profile.
At the upper price band of Rs 305, the company is valued at around 21.5x FY26 earnings, which is below several listed peers in the note. Given its strong Mumbai presence, healthy project pipeline and improving earnings, the IPO could see investor interest. Considering the growth prospects and valuation, we recommend subscribing to the IPO for listing gains. However, investors with a long-term horizon should closely monitor cash flows, debt reduction, inventory liquidation and execution before taking a long-term investment call.
