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    Shriram Properties Q1 FY27 earnings call

    SHRIRAMPPS
    Realty·13 Aug 2026
    Management Summary

    Shriram Properties reported a strong operational start to FY27 with record Q1 sales of INR484 crores and robust collections of INR365 crores, driven by successful new launches in Chennai and Kolkata. While Q1 financial performance was modest with INR271 crores revenue and INR11 crores PAT due to project completion timing and product mix, the company maintains a healthy balance sheet with low leverage. Management expressed confidence in achieving FY27 guidance, anticipating stronger revenue and earnings momentum in H2 with significant project handovers and a robust launch pipeline.

    Highlights

    5

    • Record Q1 sales of INR484 crores, marking a 10% YoY increase.

    • Collections grew by 8% YoY to INR365 crores.

    • Successful launch of new projects in Chennai and Kolkata, with Shriram Stellar (Chennai) selling 20% during launch weekend and Kolkata branded land selling 55% within 30 days.

    • Added 0.7 million square feet to the business development pipeline with an estimated GDV of INR650 crores.

    • Maintained a healthy balance sheet with net debt to equity at 0.29x and a closing cash balance of INR219 crores.

    Concerns

    3

    • Q1 financial performance was 'relatively steady' and 'modest from a revenue recognition perspective' due to timing of handovers and project completions.

    • Muted margins in Q1 (EBITDA INR42 crores, PAT INR11 crores) attributed to product mix, with ~40% from lower-margin legacy projects in Kolkata.

    • Disconnect between FY27 sales value growth target (40-50% to INR3,300-3,500 crores) and collection growth target (26-30% to INR2,100-2,200 crores) due to back-ended launches and project progress.

    Key financials

    Single quarter

    06 metrics
    1. 01Sales Value₹484 Cr+10%YoY
    2. 02Sales Volume0.85 Mn+4%YoY
    3. 03Collections₹365 Cr+8%YoY
    4. 04Revenue₹271 Cr+4%YoY
    5. 05EBITDA₹42 Cr

    Order Book

    high confidence

    Total Value

    ₹ 484 crores

    as of 2026-06-30

    quantified
    10.0% YoY

    Inflow this qtr

    ₹ 484 crores

    Composition

    Shriram Stellar (Chennai)(project)
    Branded Plotted Development (Kolkata)(project)

    Pipeline

    other

    Total current pipeline of 33.7 million square feet, with 17.7 million square feet in upcoming projects and 16 million square feet in ongoing projects. GDV potential of INR13,530 crores.

    "The company has a strong launch momentum and good visibility on sales, handovers, and revenues for the balance of the year, supported by a diversified portfolio and growing development pipeline."

    Source:
    Prepared remarks

    Capital allocation

    5
    high confidence
    CategoryHeadline
    Capex

    ₹88 crores

    Debt

    Gross ₹651 crores · Net ₹432 crores

    Cost 11.0%

    M&A

    Doddagubbi project (Bangalore)

    joint venture · signed · Consideration ₹NaN (undisclosed)

    M&A

    Manjari project (Pune)

    acquisition · pending regulatory · Consideration ₹NaN (undisclosed)

    Liquidity

    Cash ₹219 crores

    The company's equity stood at INR1,471 crores, supported by healthy liquidity and a CRISIL A- (positive) credit rating, providing ample funding capacity for future growth.

    Guidance & targets

    12
    CategoryTargetPriority
    Sales Value
    Annual Sales Value
    INR5,000 crores
    		High
    Sales Value
    Annual Sales Value Growth
    40-50% (INR3,300-3,500 crores)
    		Medium
    Revenue
    Annual Revenue
    INR2,500 crores
    		High
    Revenue
    Annual Revenue Growth
    at least 20%
    		Medium
    Profitability
    PBT
    INR250 crores
    		High
    Profitability
    PBT Margin
    10%
    		High
    Profitability
    EBITDA Margin
    22-24%
    		High
    Profitability
    PBT Margin
    8-9%
    		Medium
    Profitability
    PAT Growth
    20-25%
    		Medium
    Collections
    Annual Collections Growth
    26-30% (INR2,100-2,200 crores)
    		Medium
    Debt
    Net Gearing Level
    0.5 to 1
    		High
    Project Pipeline
    Upcoming Project Pipeline
    nearly doubling
    		High

    What to watch in Q2 FY27

    5

    H2 FY27 Revenue and Earnings Momentum

    H2 FY27
    CurrentQ1 FY27 revenue INR271 crores, PAT INR11 crores
    TargetStronger revenue and earnings momentum

    Why it matters

    Management has guided for significant improvement in financial performance in H2 FY27, making it crucial to track if this materializes.

    With a strong set of scheduled project completions and launches lined up for H2, we have good visibility on improving revenue and earnings momentum through the balance of FY27.

    Risks & concerns

    5
    RiskSeverity

    Muted margins due to product mix from legacy projects

    Q1 margins were muted due to ~40% contribution from relatively lower margin legacy projects from Kolkata, but expected to improve in H2 as higher-margin products complete. — Management acknowledged

    medium

    Volatility in PBT/EBITDA margins due to project mix and handover timing

    Margins can be volatile quarter-to-quarter depending on market, product segment, and handover timing, but overall annual margin profile is expected to improve in FY27 and stabilize in FY28. — Management acknowledged

    medium

    Temporary increase in gearing due to aggressive growth and project pipeline lock-in

    Gearing may rise temporarily in FY27 as the company pursues aggressive growth and locks in more project pipeline, but the long-term comfort zone for gearing is 0.5 to 1. — Management acknowledged

    low

    Market perception and trust in execution capabilities

    An analyst suggested the market does not fully credit the company's execution due to past volatility, which management acknowledged while defending their track record and committing to better communication. — Analyst acknowledged

    medium

    Potential slowdown in upper-end market due to investment demand volatility

    Management noted that the upper end of the market, which relies on investment demand, might see some slowdown due to stock market volatility, but the mid-market end-use segment remains strong. — Management acknowledged

    low

    Q&A highlights

    6

    “Yes, the numbers are right. And Kolkata land sale is not a significant part of it. we are developing Kolkata land from where we are today, which is about 110 acres for development beyond whatever approvals we have. Those will also be developed into a project or monetize in some way to a development through third parties. We are evolving the strategy there, because we got the approvals, we got the litigation out of our way only late last year. But this INR250 crores PBT or INR2,500 crores revenue is coming from ongoing projects that are to be completed. As you can see in slide 19, we have launched, sold and to be recognized of about 8.8 million square feet to be recognized over the next two years. That alone brings you to INR4,800 crores of revenue recognition potential between FY'27 and '28. Therefore, you know where the confidence of INR2,500 crores annual revenue coming in.”

    Analyst questioned the feasibility of achieving the ambitious FY28 PBT target of INR250 crores given historical PBT and EBITDA margins. Management clarified the PBT target is based on ongoing projects and new launches, and explained that 'other operating revenues' are integral to their business, which impacts how EBITDA is perceived externally.

    asked by Subrata Sarkar

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Operational Performance Highlights

    Shriram Properties commenced FY27 with a strong operational momentum, achieving record Q1 sales of INR484 crores, a 10% year-on-year increase. Sales volume reached 0.85 million square feet, up 4%. Collections also saw healthy growth, rising 8% to INR365 crores. The company successfully handed over 690 units during the quarter, contributing to execution momentum.

    02

    Strategic Initiatives and New Project Launches

    The quarter saw the launch of three projects, including Shriram Stellar in Chennai (premium residential segment) and Shriram Southbrook in Kolkata (branded plotted development), along with a new phase at Green Meadows in Chennai. Shriram Stellar saw 20% of its inventory sold during the launch weekend, while the Kolkata plotted development achieved 55% sales within 30 days. These launches align with the company's strategy of premiumization and product diversification across core markets.

    03

    Project Pipeline and Future Growth Visibility

    Shriram Properties boasts a robust project pipeline, with 16 million square feet in ongoing projects and 17.7 million square feet in upcoming projects, totaling 33.7 million square feet. The overall GDV potential of the current pipeline is approximately INR13,530 crores. The company also added 0.7 million square feet to its business development pipeline with an estimated GDV of INR650 crores, demonstrating confidence in nearly doubling its upcoming project pipeline over the next 18-24 months.

    04

    Financial Performance and Margin Outlook

    Q1 FY27 financial performance was modest, with revenue at INR271 crores (up 4% YoY), EBITDA at INR42 crores, and PAT at INR11 crores. Muted margins were attributed to the product mix, with about 40% of revenue coming from lower-margin legacy projects in Kolkata. However, management expects margins to improve in H2 FY27 as higher-margin products reach completion, targeting an 8-9% PBT margin for FY27 and stabilization around 10% by FY28, with EBITDA margins projected at 22-24% by FY28.

    05

    Balance Sheet Strength and Capital Allocation

    The company maintains a healthy balance sheet with gross external debt of INR651 crores and a net debt of INR432 crores, resulting in a low net debt to equity ratio of 0.29x. The cost of debt is approximately 11%. Shriram Properties generated INR135 crores in free cash flow before new project investments, investing INR88 crores in new projects. The closing cash balance stood at INR219 crores, providing ample liquidity and funding capacity for future growth.

    06

    FY27 and FY28 Guidance

    Management reiterated its FY27 guidance, anticipating 40-50% sales value growth (INR3,300-3,500 crores) and 26-30% collections growth (INR2,100-2,200 crores). For FY28, the company targets INR5,000 crores in sales value, INR2,500 crores in revenue, and INR250 crores in PBT. These targets are supported by a strong launch lineup and clear project completion visibility, with over 2,900 units (INR1,560 crores revenue potential) scheduled for handover in H2 FY27.

    This is an AI-generated summary of a publicly available earnings call transcript.