Sunteck Realty Limited — Q1 FY26 earnings call

Call held 18 Jul 2025

Management summary

Sunteck Realty reported a strong start to FY26 with record Q1 pre-sales and significant margin expansion, leading to robust EBITDA and net profit growth despite a decline in operating revenues. The company is aggressively expanding its GDV and launch pipeline, backed by a strong balance sheet and prudent cash flow management, focusing on uber luxury and premium luxury segments.

Highlights

  • Highest ever Q1 pre-sales bookings of ₹657 crores, a 31% YoY growth.

  • Collections for Q1 FY26 stood at ₹351 crores, up 2.6% YoY.

  • Operating revenues for Q1 FY26 were ₹188 crores, a decline from Q1 FY25's ₹310 crores (derived).

  • EBITDA grew 54.8% YoY to ₹48 crores, with EBITDA margins expanding to 25% (up 15 percentage points YoY).

  • Net profit increased 47% YoY to ₹33 crores, achieving an 18% net profit margin.

  • Net debt-to-equity remained low at 0.02x.

  • Target to launch new projects worth ₹110 billion GDV in the coming three quarters of FY26.

  • Current GDV is ₹400 billion, with a target to exceed ₹500 billion.

Key financials

  1. Pre-sales Bookings ₹657 Cr +30.9%YoY
  2. Collections ₹351 Cr +2.6%YoY
  3. Operating Revenues ₹188 Cr -39.4%YoY
  4. EBITDA ₹48 Cr +54.8%YoY
  5. EBITDA Margin 25%
  6. Net Profit ₹33 Cr +47%YoY
  7. Net Profit Margin 18%
  8. Net Debt-to-Equity 0.02×

What they filed

Q1 FY27: revenue up 2.1%, net profit up 27.3% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue169 162 206 188 252 +49%344 +112%339 +65%192 +2%
EBITDA37 48 69 48 78 +111%81 +69%97 +41%67 +40%
Net profit35 43 50 33 49 +40%57 +33%63 +26%42 +27%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Volume

  • Pre-sales / booking value growth Volume · FY26 · High confidence similar or better than 31%
    Building on our strong performance, we reaffirm our guidance of achieving similar or a better growth for the full year of FY '26.

    — Kamal Khetan, Chairman & Managing Director

  • Gross Development Value (GDV) Volume · FY26 · High confidence more than ₹500 billion

    From ₹400 billion today

    we are confident of taking our GDV to more than Rs. 500 billion from the current GDV of Rs. 400 billion.

    — Kamal Khetan, Chairman & Managing Director

  • New project launch GDV Volume · coming three quarters of FY26 · High confidence ₹110 billion
    And we have set a target to launch new projects worth Rs. 110 billion GDV in the coming three quarters of the financial year FY '26.

    — Kamal Khetan, Chairman & Managing Director

Collections

  • Collection growth Collections · FY26 · Medium confidence closer to 20% or around that area
    if our pre-sales grow by 30%-35%, we might not grow collection by 30%-35% but we can decently look at anything closer to 20% or around that area.

    — Kamal Khetan, Chairman & Managing Director

Project Launch

  • Dubai project launch Project Launch · Q4 FY26 or Q1 FY27 · Medium confidence Q4 FY26 or Q1 FY27
    Dubai launch will be, we are looking to be launching it closer to either Q4 of FY '26 or Q1 of FY '27.

    — Kamal Khetan, Chairman & Managing Director

  • Commercial launch (ODC 5th Avenue) Project Launch · near term · Medium confidence simultaneous with residential approval
    Once we get that approval for the resi, simultaneously we are expecting the approval for the commercial to also come.

    — Kamal Khetan, Chairman & Managing Director

Risks & concerns

  • Project approval delays

    medium

    Management noted that approvals are an 'uncertainty' and not always in the company's hands, impacting launch timelines.

    Management acknowledged

Q&A highlights

2 direct
Collections performance and outlook Direct
So, if you look at the collections, both on a Q-on-Q basis and on a year-on-year basis, our collections have gone up and in the coming quarters you will see these collections improving even further, as you are witnessing our pre-sales is coming from newly launched projects.

Addressed analyst concern about seemingly weaker collections, clarifying that collections are growing and expected to accelerate with construction progress on new launches.

Asked by Abhishek Lodhiya

Details of the ₹110 billion new launch pipeline Direct
Yes, Abhinav. So, this is the launches from ODC 5th Avenue, Sunteck City, which is close to more than Rs. 1,500 crores. And then Bandra Bandstand, which is more than Rs. 1,000 crores. Andheri, this Western Express Highway, which is the new acquisition, which is again Rs. 1,100 crores. Mira Road, we are looking to launch one more new tower, which is again Rs. 1,000 crores. Vasai, Sunteck Beach Residences, which is again two more new towers, because from the old inventories we are almost exhausting most of the inventories, so two more new towers there, close to Rs. 500 crores, Rs. 600 crores there. Naigaon, Sunteck World, the one more new phase, from there we are looking to again garner another Rs. 500 crores launch, a new launch of GDV value of Rs. 500 crores. So, total GDV value from this launch pipeline, including Nepean Sea Road should be close to Rs. 11,000 crores, what we look at these three quarters.

Provided granular detail on specific projects contributing to the significant new launch target, giving investors clear visibility into future revenue drivers.

Asked by Abhinav Sinha

Collection growth guidance for FY26 Partial
So, collection guidance, giving guidance of collection would be very hard, but we can say that we will be definitely doing much higher than what we have done collections last year. Because new sales which are happening is from the new launches. So, once the construction of these project starts, obviously the collections, you will see the exponential growth in the collections accordingly for sure. But it will be substantially more than what we have collected last year, I can say. So, we are talking about sales, pre-sales growth of more than 30%. Where we can say, here also there can be a similar or something, there will be a substantial growth I can say, some similar growth we can look at the collections also. ... we can decently look at anything closer to 20% or around that area.

While management stated it's hard to give precise guidance, they provided a directional range of 'closer to 20% or around that area', linking it to pre-sales growth and project construction progress.

Asked by Sourabh Gilda

2 min read 5 chapters

Detailed narrative

Strong Q1 FY26 Performance Driven by Pre-sales and Margin Expansion

Sunteck Realty achieved its highest ever Q1 pre-sales bookings of ₹657 crores in Q1 FY26, marking a 31% year-on-year growth. Despite a decline in operating revenues to ₹188 crores from a derived ₹310 crores in Q1 FY25, the company demonstrated significant operational efficiency. EBITDA surged by 54.8% YoY to ₹48 crores, with EBITDA margins expanding by 15 percentage points to 25%. This strong performance translated into a 47% YoY growth in net profit, reaching ₹33 crores, with net profit margins at 18%.

Aggressive GDV Expansion and Robust Launch Pipeline

The company is confident in increasing its Gross Development Value (GDV) to over ₹500 billion from the current ₹400 billion. A substantial launch pipeline of ₹110 billion GDV is targeted for the remaining three quarters of FY26. This includes major projects such as ODC 5th Avenue (₹1,500 crores), Bandra Bandstand (₹1,000 crores), the new Andheri acquisition (₹1,100 crores), and additional towers/phases in Mira Road, Vasai, and Naigaon, totaling approximately ₹11,000 crores.

Strategic Business Development and Financial Strength

Sunteck Realty has significantly accelerated its business development activities, investing ₹3 billion in the current quarter compared to ₹1.8 billion for the entire FY25. This aggressive investment strategy is aimed at driving future growth. The company maintains a strong financial position with a negligible net debt-to-equity ratio of 0.02x, which enables it to pursue strategic initiatives and remain agile in changing market conditions.

Collections and Future Outlook

Collections for Q1 FY26 stood at ₹351 crores, a modest 2.6% increase over Q1 FY25. Management expects collections to improve significantly in coming quarters as construction progresses on newly launched projects. While precise guidance is difficult, the company anticipates collection growth to be 'closer to 20% or around that area' for FY26, substantially higher than the previous year. The focus remains on the Uber Luxury and Premium Luxury segments for continued margin expansion.

Project Timelines and Approvals

The Dubai project launch is targeted for Q4 FY26 or Q1 FY27. For commercial launches, specifically ODC 5th Avenue, management expects approvals to come simultaneously with residential approvals, as both are linked to the same environmental clearance. Project approval delays were acknowledged as an inherent uncertainty in the real estate sector, which can impact launch timelines.

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