Hyderabad
Oct 29, 2025
ICRA report hints trouble for Rajapushpa - too much land, too little cash?:
Just went through the latest report of ICRA for Rajapushpa, dated Sep 2025. It looks like they are under some financial pressure these days.
The rating remains A- so not bad, but ICRA changed the outlook to negative from stable. Reason: their cash flows fell sharply in FY25 while debt jumped up by 42%. Apparently their sales and collections slowed down even as they continued to borrow to push construction and also buy land.
Projects like Casa Luxura, Aurelia, and Skyra are still in early stages-less than 20% cost spent-so they're depending a lot on future sales. ICRA said cash flow adequacy fell to 24% from 33%. Basically, they've spent a lot, but money coming in hasn't kept pace.
But they have about ₹425 crore in cash, two fully leased office projects giving ₹55 crore rent yearly, and a big land bank (~407 acres). Not a crisis, but surely a warning light.
The group is wholly focused on hyderabad which is risky if the city market cools again.
What do you guys think: temporary cash squeeze or a sign they're stretching too much?
the report looks a bit negative but they still have rental income from office projects. maybe short term issue only
ngl this worries me a bit. i booked in casa luxura last year, and the project’s still crawling. if collections are slow and debt is high, i hope they don’t delay construction.
It is important to note that ICRA simply downgraded the outlook, not the rating. This indicates that while the fundamentals are still sound, lenders are being cautious. The majority of mid-tier builders lack the cash and steady rental income that they do.
negative outlook isn’t the end of the world. a lot of developers saw similar pressure last year. but i agree, they should pause land buys and just finish what’s already on the plate. one more debt funded land deal and it could bite back.
if that’s true, i hope it doesn’t affect ongoing projects like skyra or aurelia. both are still early-stage.